HCMP000443 2015

HCMP 443/2015
IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION
COURT OF FIRST INSTANCE
MISCELLANEOUS PROCEEDINGS NO 443 OF 2015
____________
IN THE MATTER of Section 27 of
the High Court Ordinance (Cap 4),
Order 32A of the Rules of the High
Court (Cap 4A), and the inherent
jurisdiction of the Court
_____________
BETWEEN
SIBERIAN MINING GROUP COMPANY LIMITED
Plaintiff
and
ZHI, CHARLES (also known as CHI CHANG HYUN,
CHANG CHI HYUN, ZHI CHARLES,
CHARLES ZHI and CHARLES CHI)
Defendant
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Before: Hon G Lam J in Court
Date of Hearing: 30 September 2015 & 20 June 2016
Date of Reasons for Judgment: 29 June 2016
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R EAS O N S F O R J U D G M E N T
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1. The is an application by the plaintiff (SMG) by originating

summons for a number of orders pursuant to section 27 of the High Court
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Ordinance (Cap 4) and the inherent jurisdiction of the court to restrain the
defendant (Mr Zhi) from commencing, issuing or continuing certain
proceedings in the courts of Hong Kong. A consent summons dated
20 May 2016 and signed by the parties has been placed before me for
certain restraint orders to be made. Despite the parties consent, having
regard to the nature of the orders sought, I should not make them without
an examination of the underlying merits. At the end of the hearing,
having done so, I made an order, largely without contest, although there
were two specific matters which were argued as mentioned below.
Although it was a consent summons I stated that I would hand down brief
reasons for my order. These are my reasons.
2. SMG is a company incorporated in the Cayman Islands in 2002. Its
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shares have since November 2002 been listed on the main board of the
Stock Exchange of Hong Kong where they are traded (although there was
a suspension of trading from 22 April 2013 to 23 April 2015). The
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principal businesses of SMG including its subsidiaries are coal mining

and mineral resources and commodities trading.
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3. SMG had in October 2008 entered into an agreement to purchase a

mine in Russia called the Lapichevskaya Mine from a company called
Cordia Global Limited (Cordia). The consideration for the purchase
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was in the form of three tranches of convertible notes (CN) issued by

SMG to Cordia as follows:
(1)
First CN of US$253,000,000 issued on 25 May 2009;
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(2)
Second CN of US$32,000,000 issued in late 2010; and
(3)
Third CN of US$443,070,000 issued on 3 April 2013.
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4. Issuance of the Third CN was subjected to 2 conditions:

(1)
a mining licence for Lot 2 of the mine being obtained; and
(2)
a technical report issued by a technical expert acceptable to

the Purchaser and Vendor confirming the proofed and
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probably coal reserves of lot 2 of the Target Mine being not

less than 12,000,000 tons.
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5. From April 2013 onwards Mr Zhi and others have instituted a number
of legal actions in relation to SMG. Most of them involve other parties as
defendants in addition to SMG. It is the acquisition of the Lapichevskaya

Mine and the issuance of the CNs that form the basis of the bulk of the
relevant legal proceedings taken out by Mr Zhi. Among other things, it
has been alleged that the technical report produced by HASS Natural
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Resources Limited (HASS) and signed by one Herman Tso, which was
used to fulfil the second of the conditions for the Third CN, was false.
In order to commence or continue these proceedings, Mr Zhi had
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acquired 290,000 shares (about 0.06% of the issued capital) in SMG on

9 October 2014.
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6. Many of these actions overlap or are simply repetitive of and

needlessly duplicate one another. In the actions brought by Mr Zhi as
plaintiff he has acted as a litigant in person. In the actions in which Mr
Zhi was not the plaintiff himself, he played an active role and often
represented or purported to represent the plaintiff in court hearings.
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7. As at 30 September 2015, when the originating summons herein first

came before me, there were 15 actions relied upon by SMG none of
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which had succeeded and some of which had already been discontinued
by Mr Zhi or the relevant plaintiffs or struck out by the court.
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8. Between 30 September 2015 and 20 June 2016, Mr Zhi started 8

further actions involving SMG, none of which has so far succeeded.
During that period of time, however, he also discontinued a number of
both the old and the new actions.
9. The relevant actions may be listed as follows:
(1)
HCA 721/2013
(2)
HCA 206/2014
(3)
HCA 227/2014
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(4)
HCA 1151/2014
(5)
HCCW 282/2014
(6)
HCA 2247/2014
(7)
HCA 43/2015
(8)
HCA 160/2015
(9)
HCA 168/2015
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(10) HCA 284/2015

(11) HCA 347/2015
(12) HCCW 180/2015
(13) HCA 1754/2015
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(14) HCA 1821/2015
(15) HCA 1880/2015
(16) HCMP 2439/2015
(17) HCA 2494/2015
(18) HCA 2983/2015

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(19) HCCW 392/2015

(20) HCA 584/2016
(21) HCA 1160/2016
(22) HCA 1195/2016
(23) HCA 1618/2016
10.A number of interlocutory applications were also taken out by Mr Zhi

in some of these actions, including applications seeking injunctive relief
to prevent SMG from holding its annual general meeting, on the basis
that its audited financial statements were wrong. On 28 August 2015,
in a decision rejecting Mr Zhis third application for such injunction in
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HCA 1880/2015, Anthony Chan J said that [t]he amount of judicial

resources spent on Zhis actions is breathtaking and that the application
before him was blatantly an abuse of process of the court.
11.A table prepared by SMGs legal representatives setting out the details
of the above actions are appended, in an edited form, to this judgment.
The actions very broadly fall into the following categories (though this is
by no means a complete summary of the nature of the various actions and
claims):
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(1)
Actions seeking to undermine or rescind the CNs issued to

Cordia with respect to the acquisition of the Lapichevskaya
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Mine in 2008. These claims had been pursued in Cases 4, 6,

7, 8, 11, 12, 13, 14, 15, 16, 17, 18, 20 & 21 above.
(2)
Actions alleging that Mr Choi Sungmin (alleged to be

the
sole shareholder and director of Cordia) owes
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Mr Hyon Hi Hun (father-in-law of Mr Zhi) HK$5,600,000 in

unpaid loans, that Mr Choi had caused Cordia to assign or
pledge a promissory note no. 7 of US$2,000,000 issued by
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SMG to Cordia as collateral for that loan, and that SMG is

therefore liable to Mr Hyon under the promissory note for
US$2,000,000 or else for damages on the basis that the
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promissory note is a false instrument. These claims have

been brought in the name of Mr Hyon but prosecuted by
Mr Zhi (see Cases 5 & 9) or in the name of Mr Zhi himself
(see Cases 7, 8 & 10).

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(3)
Actions alleging that Cordia (or Mr Choi Sungmin) is liable

to Moon Kyung Hyun (believed to be Mr Zhis wife or
ex-wife) for breach of an agreement described as the Grant
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Letter (in which Cordia had allegedly agreed to grant

US$7,400,000 in CNs to Ms Moon) as well as a subsequent
Settlement Agreement between Cordia and Mr Zhi or
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Ms Moon to settle the alleged breach of the Grant Letter.

These claims have been made in Cases 7, 8, 10, 13 & 15. In
Case 15, Mr Zhis son (Chi Dong Eun) is co-plaintiff with
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Mr Zhi.
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(4)
Actions
alleging
breach
of
an
oral
agreement
between Mr Kim Young Jun with Mr Zhi whereby
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Mr Kim Young Jun would: (1) guarantee that Mr Zhi receive

the funds owed by Mr Choi Sungmin and/or Cordia;
(2) allocate 20% of his profits to Mr Zhi; (3) cancel the
Third CN. These claims have been pursued in Cases 10, 13
& 15.
(5)
Actions concerning a loan of US$7.55 million from Pioneer

Centre Limited to SMG. See Cases 17 & 18.
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12.I am satisfied, as Mr Zhi himself accepted, that to bring such

numerous repetitive actions and applications against SMG, among others,
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is vexatious.
13.Of these actions, as I understand the position, as at 20 June 2016, all
had been discontinued, struck out or stayed (at any rate as against
defendants
who
had
been
served),
with
the
exception
of
HCCW 392/2015, HCA 584/2016, HCA 1195/2016 and HCA 1618/2016.
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On 20 June 2016, I made an order by consent that all further proceedings

in HCA 584/2016 and HCA 1195/2016 be stayed as against SMG. That
leaves extant HCCW 392/2015 and HCA 1618/2016.
14.The writ in HCA 1618/2016 was issued as recently as on 18 June 2016
(Saturday) against 16 defendants with SMG as the 2 nd defendant, and had
not been served on any of them as at 20 June 2016 when I heard the
present application. Neither I nor Mr Kwok had even had an opportunity
of reading it and therefore the order made did not provide for it to be
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stayed as against SMG.
It has since come to my attention that
immediately after the hearing on 20 June 2016, Mr Zhi took out a
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summons in that action for interlocutory injunctions against various

parties including the 2nd defendant to restrain them from using any reports
or opinions prepared by Herman Tso.
15.The fact that many actions have since been discontinued does not
render Mr Zhi immune from an order of the kind sought by SMG.
Indeed, as submitted by counsel on behalf of SMG, instituting actions and
then discontinuing them, only to issue new actions in their place, is in
itself a form of vexatiousness.
16.I have noticed from the papers that by a letter dated 1 April 2016,
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Herman Tso the person who signed the report on behalf of HASS has
apparently sought to withdraw the report. On 18 April 2016, SMG began
an action in HCA 1016/2016 against HASS and Herman Tso for various
reliefs including a declaration that they were not entitled to withdraw the
report. An application by SMG for interlocutory injunction was disposed
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of on the basis of certain interim undertakings given by Herman Tso. On

10 May 2016, a third party notice was issued by the defendants in that
action against Mr Zhi, who on the same date issued a fourth party notice
against 8 parties.
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Meanwhile Herman Tso has also apparently been
expelled from the register of members of the Australian Institute of

Mining and Metallurgy which declared that he had never properly been
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admitted as a member. Mr Zhi submitted that his position has been

vindicated but, in my view, even if, and to the extent that, these
developments support Mr Zhis previous allegations against the HASS
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report, they do not negative the vexatious nature of the numerous actions
brought by Mr Zhi. Assuming Mr Zhi has a valid point against the HASS
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report, that does not justify the institution of multifarious actions and
applications that are repetitive, contain various claims groundless in law
and are therefore vexatious.
17.I have therefore, by consent, made an order against Mr Zhi pursuant to

s 27 of the High Court Ordinance (Cap 4) as follows:
the Honourable Mr Justice G Lam; or
(2)
the Honourable Mr Justice Anthony Chan; or
(3)
the Honourable Madam Justice Au-Yeung; or
(4)
the Honourable Mr Justice L Chan;
(5)
in the event of their unavailability, such other

Judge or Judges of the Court of First Instance as
the Chief Judge of the High Court may
designate,
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The Defendant be restrained or otherwise be prohibited from

commencing or issuing any fresh claims or proceedings in any
court in Hong Kong against the Plaintiff by whatever
originating process without the leave of one of the following
Judges being first obtained, namely:
(1)
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(Designated Judge).
18.As Lam J (as he then was) pointed out in Secretary for Justice v Ma
Kwai Chun [2006] 1 HKLRD 539 at 35, commencing or issuing fresh
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claims or proceedings is generally understood to include making a

counterclaim, which is for many purposes considered in substance an
independent action: Hong Kong Civil Procedure 2016, 15/2/4.
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accordance with general principles, the concept should be understood as

also including the institution of third party proceedings, fourth party
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proceedings and the like, which are begun when the relevant notice is
sealed by the court and issued out of the Registry: Parshad v Chit Hing
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Construction Engineering [2011] 1 HKLRD 217 at 93 & 103. I do not

think these steps should be excepted from the scope of the restriction
ordered. The restriction, however, by consent, applies only to claims or
proceedings against SMG.
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19.Mr Zhi submitted that the restriction on him on commencing

proceedings against SMG should not apply if he is represented by legal
practitioners in Hong Kong. On behalf of SMG Mr Kwok resisted this
qualification of the order on the ground that there would still be a risk
Mr Zhi could engage successive firms of lawyers in order to harass SMG.
I am reluctant to think that legal practitioners in Hong Kong would lend
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themselves to abusive conduct of the kind feared by SMG once they are
apprised of the relevant background. It seems to me the risk of prejudice
to SMG can be minimized by ensuring that any such legal practitioner

will have been made aware of the order I made and the reasons for it.
Accordingly, I added a proviso to the above restriction as follows:
Provided that this restriction does not apply where the
originating process has been signed by counsel or solicitors
practising in Hong Kong who has or have read this Order and
the reasons therefor and certified the same in writing.
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(Godfrey Lam)
Judge of the Court of First Instance
High Court
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Mr Eugene Kwok, instructed by Baker & McKenzie, for the plaintiff
The defendant appeared in person

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Appendix
HCMP 443/2015
List of Actions and Summaries prepared by Plaintiff
Item
Action no.
Case 1
HCA 721/2014 (by Mr Park and Skyline).
Case 2
HCA 206/2014 (by Mr Park).
Case 3
HCA 227/2014 (by Mr Jeong).
Case 4
HCA 1151/2014.
Case 5
HCCW 282/2014 (by Mr Hyon).
Case 6
HCA 2247/2014.
Case 7
HCA 43/2015.
Case 8
HCA 160/2015.
Case 9
HCA 168/2015 (by Mr Hyon).
Case 10
HCA 284/2015.
Case 11
HCA 347/2015.
Case 12
HCCW 180/2015.
Case 13
HCA 1754/2015.
Case 14
HCA 1821/2015.
Case 15
HCA 1880/2015 (by Mr Chi Dong Eun and Mr Zhi).
Case 16
HCMP 2439/2015.
Case 17
HCA 2494/2015.
Case 18
HCA 2983/2015.
Case 19
HCCW 392/2015 (by Mr Zhi as the 3rd Petitioner, together with

a Mr Tam Wing Yuen and a Ms Chow Doi Yik Caniel as the
1st and 2nd Petitioners).
Case 20
HCA 584/2016.
Case 21
HCA 1160/2016.
Case 22
HCA 1195/2016.
Case 23
HCA 1618/2016.
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Case
No.
1.
Action no.
(Issue Date)
HCA 721/2013
(30 April 2013)
Nature of action
Mr Zhis involvement
Derivative action by Mr Park and Skyline against:
Mr Lim (D1) and various other former directors of the

Company (D2-7).
Cordia (D8).
The Company (D9).
Status
Mr Park and Skyline were two

of the unrepresented defendants
in HCA 672/2013 brought by
Cordia whom Mr Zhi sought to
represent.
Discontinued on 31 May
2013 (ie 1 month after the
writ was issued).
Mr Zhi sought to represent Mr

Park in his (unsuccessful)
application for default judgment
against all of the defendants:
see summons 1. Mr Park was
absent at the hearing of his own
application (with Mr Zhi
attending in his place): see
order.
Discontinued on 18 June
2014.
Alleged that the 3rd CN Conditions were not fulfilled on time,

and hence the Company was not obliged to issue the 3rd CN to
Cordia.
Sought orders, inter alia, that Cordia return the 3rd CN, and
damages against the former directors for breach of duties.
2.
HCA 206/2014
(30 January 2014)
Derivative action by Mr Park (acting in person) against:

Company (D2-7).
Mr Choi (D8).
Cordia (D9).
The Company (D10).
Alleged, inter alia, that:
3rd CN Conditions not fulfilled on time (SoC 23, 27

& 28(a)).
3rd CN Conditions not fulfilled at all as: (1) mining
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Mr Zhi also made an

affirmation in support of the
above application for default
judgment.
Costs assessed at
HK$50,000 against
Mr Park for his
unsuccessful application
for default judgment
remains unpaid.
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Case
No.
Action no.
(Issue Date)
Nature of action
Mr Zhis involvement
Status
licence for Lot 2 of the Mine not obtained (SoC 24

& 27); (2) technical report by Dr Herman Tso was a
fabricated, plagiarized, inconsistent and false
document (SoC 25, 27 & 29-33).
Sought orders, inter alia, that Cordia return the 3rd CN and be
restrained from assigning the 3rd CN (or any promissory notes,
shares and debts of the Company), and damages against the
former directors for breach of duties.
(There are also three miscellaneous allegations: (1) that bore
holes drilled on the Mine were counterfeit and false
(SoC 34-40); (2) that Cordia/Mr Choi and Mr Lim offered to
sell the management of [P] to Christopher Chung and Kim
Min Kyu to induce funding (SoC 42-45); and (3)
fraud/perverting the course of justice by two former directors
(Mr Lim and Mr Choi Jun Ho), Cordia and Mr Choi with Kim
Min Kyu and Master Impact (or its owner, Mr Kim Young
Jun) to sustain the validity of the 3rd CN and HAAS Technical
Report (SoC 51). No relief with respect to these
miscellaneous allegations are, however, sought.
3.
HCA 227/2014
(7 February 2014)
Derivative action by Mr Jeong (acting in person) against:

Company (D2-5).
Mr Choi (D6).
Dr Herman Tso (D7).
Cordia (D8).
The Company (D9).
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Mr Jeong is a director and sole

beneficial owner of Skyline
(see SoC 1(a)), and Skyline is
one of the unrepresented
defendants in HCA 672/2013
whom Mr Zhi sought to
represent.
Mr Zhi sought to represent
Discontinued on 18 June
2014.
Costs (yet to be taxed)
against Mr Jeong for his
unsuccessful application
for default judgment
remain outstanding.
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Case
No.
Action no.
(Issue Date)
Nature of action
Mr Zhis involvement
Essentially the same allegations are made, and the same relief
sought, as in Case 2, save that Dr Herman Tso was added as a
defendant (and an order that he withdraw his technical report
was sought).
Status
Mr Jeong in his (unsuccessful)

application for default judgment
against all defendants.
Mr Zhi made two affirmations
for the above application for
default judgment.
At the hearing, it was alleged
that B&M were acting under a
conflict of interest by acting for
the Company and its directors,
and should therefore cease to
act. This was rejected by
DHCJ Burrell.
4.
HCA 1151/2014
(23 June 2014)
Derivative action by Mr Zhi against:
The current directors (D1-6).

Mr Lim (D7).
Mr Choi (D8).
Mr Kim Young Jun (D9), along with his wife (D15)
and son (D16).
Kim Min Kyu (D10)
Dr Herman Tso (D11).
Cordia (D12).
JH CPA (D13).
The Company (D14).
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Mr Zhi was the plaintiff (acting

in person).
Mr Zhi applied for an
interlocutory injunction to
restrain B&M from
representing the Company and
Mr Lim on the basis of a
conflict of interest, and to
restrain the Company from
making any payments or
incurring any additional debt.
The 1st summons was
withdrawn and the 2nd summons
On 21 January 2015,
Mr Zhi discontinued his
action against Kim Min
Kyu and Mr Kim Young
Jun and his wife and son
(ie D9, D10, D15 & D16).
Mr Zhis action against the
current directors (D1-6),
Mr Lim (D7), and JH CPA
(D13) was struck out and
dismissed on 26 August
2015 by Order of
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Case
No.
Action no.
(Issue Date)
Nature of action
Essentially makes the same allegations as in Cases 2 & 3, ie
3rd CN Conditions not fulfilled on time (SoC 27).
3rd CN Conditions not fulfilled at all: (1) mining

licence for Lot 2 of the Mine not obtained (SoC 28);
(2) technical report by Dr Herman Tso was
fabricated, plagiarized, inconsistent and false (SoC
30 & 36-40).
In addition, allegations are also made against other professional

third parties whom the Company had engaged to assist on the
Mine acquisition, namely SRK Consulting Limited (SRK did
not conduct any fieldwork of even examined the original
borehole data: SoC 18) and Vigers Valuation and Consulting
Ltd (grossly inflated the production schedule of Lap Mine:
SoC 19). Neither SRK Consulting Limited nor Vigers
Valuation and Consulting Ltd are, however, named as
defendants in this action (SRK Consulting Limited is a
defendant in Case 6, and SRK Consulting (Russia) Limited is a
defendant in Case 8).
Similar miscellaneous allegations as in Case 2 are also made,
namely that: (1) bore holes drilled on the Mine were
counterfeit and false (SoC 41-48); (2) Cordia/Mr Choi and
Mr Lim offered to sell the management control of [P] to
Kim Min Kyu to induce funding (SoC 51-54).
In addition, it is alleged that Mr Choi agreed to sell control of
the Company and US$300,000,000 of the 3rd CN to Mr Kim
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Mr Zhis involvement
Status
dismissed, both with costs

totalling HK$20,000 payable to
the current directors, Mr Lim
and the Company.
Anthony Chan J with costs.

Mr Zhis action against all
remaining defendants was
also stayed pending leave
from the Cayman Islands
Grand Court on 26 August
2015 by Order of
Anthony Chan J with costs.
On 14 November 2015,
Mr Zhi discontinued
proceedings against D14,
ie the Company.
On 30 March 2016, Mr Zhi
discontinued proceedings
against D11.
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Case
No.
Action no.
(Issue Date)
Nature of action
Mr Zhis involvement
Status
Young Jun (SoC 57).

Sought orders, inter alia, that:
5.
HCCW 282/2014
(10 October
2014)
The current directors rescind the 1st, 2nd and 3rd CNs,
and pay restitution damages.
Mr Lim, Mr Choi and Cordia return the 3rd CN,

promissory notes and debts, and pay restitution
damages of no less than US$280,000,000.
An injunction restraining Cordia from assigning the

3rd CN, promissory notes, shares or debts.
Dr Tso withdraw his reports.
JH CPA not rely on any of Dr Tsos reports for its

audit.
Creditors winding up petition by Mr Hyon against the

Company.
Alleged that the Company was indebted to Mr Hyon for
US$2,000,000 under PN 7.
Mr Zhi appeared as a
contributory in support of the
petition.
Mr Zhi unsuccessfully applied
to be joined as co-petitioner,
and was ordered to pay the
Companys costs assessed at
HK$16,000 by Harris J on
23 February 2015.
All affirmations (including the
verifying affirmation) were
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Mr Hyons petition was

struck out and dismissed
by G Lam J on 13 March
2015, with costs against
both Mr Hyon and Mr Zhi.
Those costs were taxed at
HK$506,585.37.
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Case
No.
Action no.
(Issue Date)
Nature of action
Mr Zhis involvement
Status
made by Mr Zhi (and not

Mr Hyon). Mr Hyon filed no
evidence whatsoever. Nor did
Mr Hyon attend any of the
hearings, including the hearing
into his own petition.
6.
HCA 2247/2014
(5 November
2014)
SRK Consulting Ltd (D1).

Mr Choi (D2).
Various directors (D3-9), including Mr Lim (D4).
The Company (D10).
As noted above, in Case 4, Mr Zhi alleged that SRK Consulting

Limited did not conduct any fieldwork of even examined the
original borehole data.
SRK Consulting Limited was made D1 in this action.
Mr Zhi alleged that SRK Consulting Limited was engaged to
conduct a due diligence over the Mines coal reserves, but had
prepared a faulty and deficient report, resulting in the
Company deciding to acquire the Mine from Cordia who was,
as a result, unjustly enriched: see SoC 7-18.
Sought orders, inter alia, that:
SRK Consulting Limited withdraw its reports.
Mr Choi be restrained from transferring any CNs,
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Mr Zhi was the plaintiff (acting

in person).
Shortly before the call over
hearing into two strike out
summonses issued SRK
Consulting Limited (D1) and
Mr Lim (D4), Mr Zhi applied
for legal aid (which was later
rejected) which resulted in the
call over hearing being
adjourned for 7 weeks.
Mr Zhis action against

SRK Consulting Ltd (D1)
was dismissed on 4 March
2015 because Mr Zhi had
sued the wrong SRK entity
the actual SRK entity
that conducted the due
diligence into the Mine
was SRK Consulting
(Russia) Ltd. Rather than
amending his writ, Mr Zhi
commenced separate
proceedings (Case 8)
against SRK Consulting
(Russia) Ltd (and others).
Mr Zhis action against
Mr Lim (D4) was struck
out and dismissed on
25 August 2015 by Order
of DHCJ Le Pichon with
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Case
No.
Action no.
(Issue Date)
Nature of action
Mr Zhis involvement
promissory notes or shares of the Company.
The Company rescind all CNs, promissory notes and

debts issued to Cordia.
Restitution and compensation be paid by all

defendants (except the Company).
Status
costs.
On 9 October 2015,
Mr Zhi discontinued this
action as against D2, D3,
D5-D9.
action as against D10 (ie
the Company).
This action has therefore
ended.
7.
HCA 43/2015
(7 January 2015)
Mixed personal and derivative claim by Mr Zhi against:
Mr Lim (D1).
Mr Choi (D2).
Mr Hong (D3).
The Company (D4).
Alleges that:
SRK (who is not a party to this action) had

doctored its report (SoC 7).
The HASS Technical Report (by Dr Herman Tso) is
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Mr Zhi is the plaintiff (acting in

person).
Not progressed beyond

pleadings.
(It is understood that on
29 May 2015, Mr Hong
and the Company issued a
strike out summons against
Mr Zhi. On 19 June 2015,
it was ordered that the
strike out summons be
adjourned to a date to be
- 21 -
Case
No.
Action no.
(Issue Date)
Nature of action
Mr Zhis involvement
simply false (SoC 23).
Status
fixed.
Cordia breached the Grant Letter entered into with

Ms Moon whereby Cordia agreed to grant
US$7,400,000 of CNs to Ms Moon, and breached a
subsequent Settlement Agreement of that dispute
(entered into by Mr Zhi with Mr Choi or Cordia)
(SoC 10 & 14).
Mr Lim is liable for theft of the said US$7,400,000

not granted by Cordia to Ms Moon (SoC 14).
Mr Choi is indebted to Mr Hyon for an unpaid loan of

HK$5,600,000; Mr Choi had caused Cordia to pledge
PN 7 to Mr Hyon as collateral for this unpaid loan; the
PN7 pledged to Mr Hyon is a false instrument
(SoC 15-21).
The personal component seeks orders that:
Mr Lim and Mr Choi pay Mr Zhi US$7,400,000 (or

HK$57,500,000).
Mr Choi to pay to Mr Hyon HK$5,600,000; (2) cause

Cordia to request the Company to assign a
US$2,000,000 promissory note to Mr Hyon.
The Company assign a US$2,000,000 promissory note

to Mr Hyon.
The derivative component seeks orders that:
- 21 -
action as against D1, D3
and D4 (ie the Company).
- 22 -
Case
No.
8.
Action no.
(Issue Date)
HCA 160/2015
(19 January 2015)
Nature of action
Mr Zhis involvement
Mr Choi cause Cordia to return all outstanding CNs

and debts issued by the Company.
Mr Choi be restrained from assigning any CNs,

promissory notes or shares of Company.
Mixed derivative and personal action by Mr Zhi against:
Mr Lim (D1).
Mr Choi (D2).
Cordia (D3).
SRK Consulting (Russia) Ltd (D4).
Dr Herman Tso (D5).
The Company (D6).
Alleges:
The same claims already made in Case 4, ie that the

3rd CN Conditions were not fulfilled on time or at all
(SoC 27-30).
The same claims against Dr Herman Tso as already

made in Cases 2 & 4 as to his technical report
(SoC 33-36 & 79-80).
The same claims against SRK as already made in

Case 6 (though against what appears to be the correct
SRK entity (SoC 8-20 & 76-78).
The same claim against Cordia/Mr Choi with respect

the Grant Letter with Ms Moon and subsequent
- 22 -

person).
On 19 March 2015, G Lam J
dismissed an application by
Mr Zhi for an interlocutory
injunction to restrain the
Company from: (1) renewing
its mining licence for the Mine;
(2) engaging in any activity
with respect to Dr Tsos work;
(3) amending the terms of any
promissory notes due on
25 May 2015. Mr Zhi did not
attend the hearing of his own
summons.
Costs of this application
payable by Mr Zhi to the
Company was assessed at
HK$68,274.
Status

pleadings.
action as against D5.
On 4 December 2015,
action as against D1 and
D6 (ie the Company).
- 23 -
Case
No.
Action no.
(Issue Date)
Nature of action
Mr Zhis involvement
Settlement Agreement, as made in Case 7

(SoC 68-73).
The same allegation of theft against Mr Lim as made

in Case 7 (SoC 72).
The same claims with respect to Mr Chois alleged

unpaid loan and PN7 pledged to Mr Hyon, as made in
Case 7 (SoC 53-66).
Save as marked in underline below, the same orders as sought

in Case 7 are sought with respect to the personal component:
Mr Lim, Mr Choi and Cordia pay Mr Zhi

US$7,400,000 (HK$57,500,000).
Mr Choi, Mr Lim and Cordia pay Mr Zhi (on behalf of

Mr Hyun) HK$5,600,000
SRK pay damages to Mr Zhi.
Dr Tso pay damages to Mr Hyon and Mr Zhi.
The derivative component seeks a mix of orders, many of

which were already sought in Cases 4, 6 & 7, namely that:
Cordia return all CNs, promissory notes and other

debts issued by the Company.
Cordia, Mr Choi and Mr Lim be restrained from

transferring or exercising any rights with respect to the
CNs, promissory notes or shares of the Company.
SRK withdraw its technical report.
- 23 -
Status
- 24 -
Case
No.
Action no.
(Issue Date)
Nature of action
9.
HCA 168/2015
(20 January 2015)
Mr Zhis involvement
Dr Tso withdraw the HASS Technical Report and

supplementary report.
Personal action by Mr Hyon against:
Status
Mr Lim (D1).
Mr Choi (D2).
Cordia (D3).
The Company (D4).
Mr Hyon (who resides in Seoul,

Korea) has listed one of
Mr Zhis addresses (an office
address in Singha Commercial
Centre) in his writ.

pleadings.

person).

pleadings.
Mr Hyon discontinued this

action as against all of the
defendants on
1 February 2016.
Mr Hyon alleges that: (1) Mr Choi is indebted to Mr Hyon for

an unpaid loan of HK$5,600,000; (2) Mr Choi had caused
Cordia to pledge PN 7 to Mr Hyon as collateral for this unpaid
loan; (3) the PN7 pledged to Mr Hyon is a false instrument
(SoC 3-18).
Mr Hyon seeks HK$15,500,000 in damages against all of the
defendants.
10.
HCA 284/2015
(5 February 2015)
Personal action by Mr Zhi against:
Mr Kim Young Jun (D1).

Mr Lim (D2).
Mr Choi (D3).
Various persons (D4-D18) who are alleged to be
either nominees or agents of D1, D2 or D3,
including Mr Jang and Mr Hong (current directors,
D6-7) and Cordia (D18) (SoC 1).
- 24 -
D7 and D19 (ie the
Company).
- 25 -
Case
No.
Action no.
(Issue Date)
Nature of action
Mr Zhis involvement
The Company (D19).
Alleges that:
Mr Kim Young Jun orally agreed that Mr Zhi would

get back the money owed by the 3rd Defendant
[Mr Choi] to myself or to my relatives and that
Mr Kim would give Mr Zhi 20% of the profit he
earns from any of the deals that I would be involved
in, but that Mr Kim breached this oral agreement
(SoC 9-20).
The same claims with respect to the Grant Letter and

Settlement Agreement with Ms Moon, and theft of
CNs not granted to Ms Moon, as made in Case 7.

Settlement Agreement, as made in Case 7
(SoC 21-25).
The same claims with respect to Mr Chois alleged

unpaid loan and PN7 pledged to Mr Hyon, as made in
Cases 7, 8 & 9 (SoC 26-42).
Seeks orders that:
Mr Kim Young Jun (D1) pay compensation to Mr Zhi

of HK$60,000,000.
Mr Lim (D2) and Mr Choi (D3) pay compensation to

Mr Zhi of HK$73,000,000 [it is not clear what the basis
- 25 -
Status
- 26 -
Case
No.
Action no.
(Issue Date)
Nature of action
Mr Zhis involvement
Status
for this order is or how this sum was arrived at].
11.
HCA 347/2015
(14 February
2015)
D4-5 & D8-16 (alleged nominees/agents of Mr Kim,

Mr Lim and Mr Choi (D1, D2 and D3) be restrained
from transferring any assets related to the Company.
That Mr Jang (D6) and Mr Hong (D7) resign as

executive directors of the Company.

person).
B&M (D1).
Mr Lim (D2).
Mr Jang and Mr Hong (D3-4).
The Company (D5).

pleadings.
On 29 May 2015, B&M
issued a strike out
summons against Mr Zhi.
Alleges that B&M is: (1) acting in conflict of interest by

representing both Mr Lim and the Company (SoC 16-18); (2)
rendered negligent advice resulting in the Company issuing the
3rd CN (SoC 19-22; (3) grossly overcharging its fees
(SoC G).
Seeks orders that:
B&M make restitution and compensation to the

Company for the entire amount of billing since its
engagement in early 2013.
B&M, Mr Lim, Mr Jang and Mr Hong make restitution

and compensation to the Company for the wrongful
issuance of the 3rd CN.
- 26 -
On 22 June 2015, Mr Lim,

Mr Jang and Mr Hong
issued a strike out
summons against Mr Zhi.
The hearing of both strike
out summons is scheduled
to be heard together before
G Lam J on 13 October
2015.
action as against D1 on
- 27 -
Case
No.
Action no.
(Issue Date)
Nature of action
Mr Zhis involvement
Status
29 September 2015.
action against D2-D4 on
5 October 2015.
On 9 October 2015, the
Company issued a
summons for an order that
the action be dismissed.
At the hearing on 13
October 2015, G Lam J
dismissed the remainder of
the action as against D5 (ie
the Company), with the
Companys costs to be
taxed on a party and party
basis. G Lam J also
ordered Mr Zhi to pay
D2-D4s costs, to be taxed
on a common fund basis.
This action is therefore at
an end.
12.
HCCW 180/2015
(2 June 2015)
Contributorys winding up petition by Mr Zhi against the

Company, alleging that:
- 27 -
Mr Zhi is the petitioner (acting

in person).
The Company filed

evidence in opposition to
the petition, indicating that
- 28 -
Case
No.
Action no.
(Issue Date)
Nature of action
Mr Zhis involvement
Over the years, your petitioner has made numerous

complaints to the Company, the Hong Kong Stock
Exchange and the Securities and Futures Commission
to rectify the gross mismanagement and misconducts
which were unfairly prejudicial to the interest of the
members, but no avail (petition 6).
The Companys resumption of trading announcement

on 23 April 2015 was grossly misleading and
fraudulent (petition 7).
Status
it would seek a dismissal
of the petition at the first
call over hearing on the
basis, inter alia, that no
proper grounds for a
winding up had been
articulated in the petition.
However, less than one day
before the first call over
hearing into the petition,
Mr Zhi applied for legal
aid. As a result, the first
call over hearing has been
adjourned to 28 October
2015.
Legal aid was refused on
16 October 2015.
However, as Mr Zhi had
not obtained a Registrars
Certificate, the Petition
was further adjourned on
28 October 2015.
Mr Zhi applied for leave to
withdraw the Petition.
This was granted by
- 28 -
- 29 -
Case
No.
Action no.
(Issue Date)
Nature of action
Mr Zhis involvement
Status
Harris J on 4 January 2016,
with Mr Zhi to pay the
Companys costs, to be
taxed if not agreed.
13.
HCA 1754/2015
(4 August 2015)

Mr Choi (D2).
Mr Lim (D3).
Mr Jang and Mr Hong (D4-5).
Various persons/companies alleged to constructive
trustees for Mr Choi (D6-13).
Various companies alleged to be constructive trustees
to Mr Kim Young Jun (D14-17).
The Company (D18).
Alleges, inter alia:

Settlement Agreement, as alleged in Cases 7, 8 & 10,
save that the Settlement Agreement is now alleged to
have been entered into by Ms Moon (not Mr Zhi) with
Cordia (SoC 3(1)-3(6)).
The same alleged oral agreement with Mr Kim Young

Jun as alleged in Case 10, save that it is also alleged
that Mr Kim Young Jun orally agreed with Mr Zhi to
cancel the 3rd CN (SoC 4(1)-4(3)).
- 29 -

person).
On 7 August 2015, L Chan J
dismissed an application by
Mr Zhi seeking an interlocutory
injunction against various
defendants to restrain them
from voting at the Companys
AGM.
Pleadings stage.
D5 and D18 (ie the
Company).
- 30 -
Case
No.
Action no.
(Issue Date)
Nature of action
Mr Zhis involvement
That Mr Choi and Mr Kim Young Jun (or their

constructive trustees) had entered into undisclosed
connected transactions (SoC 6-9).
That the 3rd CN was not properly issued, hence: (1) the
Companys audited accounts were wrong; (2) the
Company should not have resumed trading of its shares
on the Stock Exchange (SoC 20-34 & 38-43).
Acts of Dissipation and Unfairly Prejudicial Acts by

Mr Kim Young Jun in selling his shares in the
Company, and Cordia partially converting the 3rd CN
into shares in the Company and selling the rest of the
3rd CN to Daily Loyal Ltd (D13) (allegedly a
constructive trustee to Mr Choi) (SoC 35-37).
Seeks:
Declarations that Mr Kim Young Jun owns 43% of Ps

shares, holds US$300,000,000 of the 3rd CN, and
controls the Companys management.
Injunctions against Mr Kim Young Jun from dealing

with his shares in the Company for failure to make
proper disclosure.
Declarations that Mr Choi holds US$112,000,000 of

the 3rd CN, and injunctions to restrain him from dealing
with his shares in the Company.
Declarations that Mr Jang is a figurehead for Mr Kim

Young Jun and that he does not speak or understand
- 30 -
Status
- 31 -
Case
No.
Action no.
(Issue Date)
Nature of action
Mr Zhis involvement
Status
much English or Chinese, and his loan to the

Company is bogus.
14.
HCA 1821/2015
(11 August 2015)
Declaration that Mr Hong gave false information for

the Companys resumption announcement, and
accordingly an order for restitution and compensation
to the Company for seriously jeopardizing the
credibility of the Company.
Various declarations that Mr Lim and D6-D18 hold

assets related to the Company on trust for (presumably)
Mr Choi or Mr Kim Young Jun, and accordingly
injunctions against them from dealing with those
assets.
Orders for the Company to disclose: (1) the Grant

Letter; (2) the oral agreement between Mr Zhi and
Mr Kim Young Jun; (3) the undisclosed connected
transactions of Mr Choi and Mr Kim Young Jun (or
entities in their camp); (4) reports concerning the Mine
acquisition and the 3rd CN.
Orders for the Company to withdraw its resumption

announcement, withdraw approval of the audit reports
for 2013, 2014 and 2015, refrain from converting any
CNs, and to cancel the 3rd CN.
The current directors (D2-7).

person).
On 17 August 2015,
- 31 -
Pleadings stage.
On 8 September 2015,
Mr Zhi amended his
- 32 -
Case
No.
Action no.
(Issue Date)
Nature of action
JH CPA (D8).
The Company (D9).
Alleges:
Almost identical allegations to those in Case 13, save

that: (1) the Grant Letter/Settlement Agreement claim
against Cordia/Mr Choi; and (2) the oral agreement
claim against Mr Kim Young Jun, are not included
here.
Seeks:
Almost identical relief, as sought in Case 13, is sought

against Mr Kim Young Jun, Mr Jang, Mr Hong, and the
Company.
The removal of all the current directors and the

appointment of a receiver to examine the validity of the
3rd CN.
An order that the current directors and JH CPA pay

restitution and compensation to the Company for
seriously jeopardizing the credibility of the Company.
- 32 -
Mr Zhis involvement
Status
Au-Yeung J refused an
application by Mr Zhi for an
holding its AGM, with costs
assessed at HK$70,000 payable
to the Company (which remains
unpaid).
statement of claim to:

(1) discontinue his claim
against JH CPA (D8);
allege a breach of duties by
the current directors with
respect to the Companys
resumption of trading and
audited accounts on the
basis that they improperly
included the 3rd CN (see
ASoC 41-46).
(It is understood that on

21 August 2015, Mr Zhi
applied for summary judgment
against the Company (D9) to
withdraw the Resumption
Announcement made on
22 April 2015 as to its
resumption of trading of its
shares. This was subsequently
withdrawn by consent on
8 September 2015. On the
same day, Mr Zhi issued a fresh
summons for summary
judgment against the Company
for the withdrawal of the
Resumption Announcement
made on 22 April 2015 and
withdrawal of its approval on
the Audit Reports for 2013,
2014 and 2015. The summons
Mr Zhi took out an

application for summary
judgment against D9 (ie
the Company) which was
heard by B Chu J on
7 April 2016. However,
Mr Zhi discontinued the
action against D9 on
6 April 2016 (ie a day
before the hearing). At that
hearing, Mr Zhi applied to
withdraw his application,
which was granted.
Mr Zhi was also ordered to
pay the Companys costs,
summarily assessed at
- 33 -
Case
No.
Action no.
(Issue Date)
Nature of action
Mr Zhis involvement
has been fixed before Chow J
on 8 October 2015).
Status
$411,380.
On 16 and 18 November
2015, Mr Zhi discontinued
proceedings against
D2-D7.
On 6 April 2016, Mr Zhi
against D9.
15.
HCA 1880/2015
(18 August 2015)
Personal action by Mr Chi Dong Eun and Mr Zhi against the

same defendants as in HCA 1754/2015 (above), save that:
Mr Park is included as a defendant (D16) and is alleged

to be a constructive trustee for Mr Kim Young Jun.
Mr Pang Kwang Ting (D6 in Case 13) and allegedly a

constructive trustee for Mr Choi) is not a defendant in
this action.
Although SoC 3 alleges that the plaintiffs are suing on

behalf and for the benefit of the Company, no claim in favour
of the Company is actually sought and no part of this action is
therefore a true derivative claim.
Alleges:
- 33 -
Mr Zhi is the 2nd plaintiff.
Pleadings stage.
The 1st plaintiff, Mr Chi Dong

Eun, is Mr Zhi and Ms Moons
son (SoC 5(1)).
On 16 November 2015, P2
(ie Mr Zhi) discontinued
this action as against D3,
D4, D5 and D18 (ie the
Company).
Both plaintiffs are acting in

person.
On 28 August 2015,
Anthony Chan J refused an
application by both plaintiffs
for an interlocutory injunction
to restrain the Company from
holding its AGM, with costs.
This was a repeat of the
On 23 November 2015, P1
(ie Mr Chi dong Eun)
discontinued this action as
against D3, D4, D5 and
D18 (ie the Company).
- 34 -
Case
No.
Action no.
(Issue Date)
Nature of action
Mr Zhis involvement
Identical claims as already made in Case 13.
Also alleges that:

o
Mr Chi Dong Eun (P1) is the beneficiary of: (1) the

Grant Letter between Cordia and Ms Moon; (2) the
oral agreement between Mr Kim Young Jun and
Mr Zhi (SoC 1).
The Stock Exchange, SFC and the Financial

Reporting Council are not empowered to halt the
Annual General Meeting of the Company (SoC
51-53).
Relief sought:
Declarations that Mr Kim Young Jun:

o
entered into the oral agreement with Mr Zhi;
entered into an agreement with Mr Choi to obtain

management control over the Company; as a result,
appointed new directors over the Company and was
assigned US$300,000,000 of the 3rd CN and other
debts of the Company;
is acting in concert with Mr Choi, Cordia and other

defendants to have 51% voting power in the
Company;
arranged a loan to the Company;
instructed Mr Jang and Mr Hong to obtain false

opinions from Roma to satisfy the resumption
- 34 -
application made before

Au-Yeung J in Case 14 on
17 August 2015 and also before
L Chan J in Case 13 on
7 August 2015.
Status
- 35 -
Case
No.
Action no.
(Issue Date)
Nature of action
Mr Zhis involvement
conditions and to approve the irregular audit

reports, and to hold an EGM to reset the conversion
price of the 3rd CN.
Orders that Mr Kim Young Jun transfer 20% of his

shares, the 3rd CN, and debts in the Company to Mr Chi
Dong Eun (P1), and an injunction against Mr Kim
Young Jun from dealing with his shares in the
Company.
Declarations that Mr Choi:

o
is the sole shareholder and director of Cordia and

beneficial owner of D7;
entered into various agreements with other

defendants (as undisclosed connected transactions);
owns 2,000,000 shares in the Company.
Injunctions against Mr Choi from disposing of or

dealing with his shares or converting any CNs into
shares.
Declarations that Mr Lim is the sole shareholder and

director of D7, a lender to the Company, and a trustee
for Mr Choi.
Injunctions against Mr Lim from disposing of or

dealing with his shares or converting any CNs into
shares.
Identical relief as sought in Case 13 is sought against
- 35 -
Status
- 36 -
Case
No.
Action no.
(Issue Date)
Nature of action
Mr Zhis involvement
Mr Jang.
Similar relief as sought in Case 16 is sought against

Mr Hong. Also seeks:
o
declarations that Mr Hong aided and abetted in

theft by having the board cancel the original note
certificates of the 3rd CN as these had been pledged
to third parties including Mr Zhi through the Grant
Letter.
Orders that Mr Hong cause the board to withdraw the

resumption announcement, audit reports and annual
reports, cancel the 3rd CN and recall the converted
shares, and rescind the transfer of the 3rd CN from
Cordia to D12.
Declarations that Cordia had breached the Grant Letter

by not assigning US$7,4000,000 of the 3rd CN to
(presumably) Mr Zhi.
Declarations that Cordia had breached the Settlement

Agreement and certain oral agreements to provide
cash of US$1,100,000 and US$4,000,000 of new CNs
or shares in the Company to Mr Zhi.
Orders for restitution and compensation of

US$7,400,000 against Cordia to Mr Zhi, and
injunctions against it dealing with its shares or the
3rd CN.
Various declarations that D7-17 hold assets related to
- 36 -
Status
- 37 -
Case
No.
Action no.
(Issue Date)
Nature of action
Mr Zhis involvement
Status

person).
the proceedings against D2
and D3 respectively.
the Company on trust for Mr Choi/Cordia or Mr Kim

Young Jun, and accordingly injunctions against them
from dealing with those assets.
16.
HCMP 2439/2015
30 September
2015
Personal action brought by Mr Zhi against:
Dr Herman Tso (D1)

Jang Sam Ki (D2)
Hong Sang Jun (D3)
Kelvin Kee Yan Luk (D4)
Roma Group Limited (D5)
Siberian Mining Group Company Limited (D6)
Seeks orders that:
Dr Herman Tso produce working papers, including

feasibility study and environmental impact assessment
prior to 27 March 2013, with regard to his estimate of
the coal reserves on Lot 2 of the Mine (this estimate
being a condition to the issuance of the 3rd CN).
Dr Herman Tso produce evidence of his qualifications
as a mining expert.
The Company to rescind the 3rd CN if Dr Herman Tsos
working papers or qualifications are found to be
insufficient.
The Company to investigate if there is any wrongdoing
on the part of D3 and D4 in making public, without
consent, the internal document of an [unidentified]
- 37 -
On 13 January 2016,
Mr Zhi issued a Notice of
Appointment to hear the
originating summons.
On 11 February 2016, D1
took out an application to
strike out this action. D4
and D5 took out a similar
application on 5 February
2016. Directions were
made by Anthony Chan J
on 18 February 2016 to
adjourn D1, D4 and D5s
Summonses for substantive
argument with 1 day
reserved.
D6 (the Company) has
filed its affirmation in
opposition to Mr Zhis
- 38 -
Case
No.
Action no.
(Issue Date)
Nature of action
Mr Zhis involvement
third party.
Order for D5 to withdraw its views and opinions on the
Mine as given to the Company.
An order for the Company to disclose the financial
capabilities of D2. In the event D2 lacks means to give
a loan to the Company, for the Company to make
necessary further complaints against D2.
Status
originating summons in
this action on 25 February
2016.
against D1.
against D6 (ie the
Company).
17.
HCA 2494/2015
(27 October
2015)
Personal action by Mr Zhi against:

person).
Kim Young Jun (D1)

Jang Sam Ki (D2)
Hong Sang Jun (D3)
Pioneer Centre Limited (D4)
Daily Loyal Limited (D5)
Seeks orders that:1. Declaration against D1:-
- 38 -
On 27 October 2015, Mr Zhi

took out a summons for an
interlocutory injunction against
the Company from (a) using or
relying on the Loan Facility
Agreement extended by D2 to
the Company for the purpose of
resolving the going concern
issue in the Audit Reports;
(2) discussing or pursuing the
Whitewash Waiver for
this action as against D2
and D3 respectively.
On 14 January 2016,
action as against the
Company.
- 39 -
Case
No.
Action no.
(Issue Date)
Nature of action
2.
3.
4.
5.
6.
7.
8.
Mr Zhis involvement
he controls over 51% voting rights of the Company;

he has been acting in concert with connected or related
party.
he replaced D2 as the Chairman of the Company; and
cause D2 to withdraw the loan facility made to the
Company.
Declaration against D2:he is a figurehead for D1;
HKD400,000,000 loan facility provided by him to the
Company was made without his knowledge and
consent.
Order that D2 to resign as director of the Company.
Declaration against D3:that he was responsible for aiding and abetting D1 and
for tampering with evidence by pursuing a whitewash
waiver and replacement of convertible note in order to
assist D1's defence against criminal probes in Korea.
Order for D3 to resign from directorship from the
Company.
Declaration against D4 that D4 is a related company to
D1 and that USD7,550,000 in loans it made to the
Company are a misappropriation of corporate funds
and money laundering in favour of the Company.
Mandatory injunction against D4 not to dispose of or
deal with USD7,550,000 in loans it made to the
Company.
Declaration against D5:D5 is a related company, influenced by Pang
- 39 -
recapitalisation of the
Company's debts and the
replacement of the 3rd CN.
The said summons was
dismissed by the Chung J on
30 October 2015 with costs
HKD65,283 to be paid by
Mr Zhi to the Company.
On 23 November 2015, Mr Zhi
took out a summons for an
holding its scheduled board
meeting on 27 November 2015
for the approval of its interim
results of 30 September 2015.
The said application was
dismissed by
Recorder S Wong SC on
27 November 2015 with costs
HKD60,000 to be paid by
Mr Zhi to the Company.
Status
- 40 -
Case
No.
Action no.
(Issue Date)
Nature of action
Mr Zhis involvement
Status

person)
Mr Zhi applied for

summary judgment against
the Company by summons
dated 14 March 2016.
Kwong Ting, who had trust and co-operation

arrangements with D1;
D5 is holding the 3rd CN in trust for D1 and Choi
Sung Min.
9. Mandatory injunction against D5 from disposing of or
in any way dealing with the 3rd CN until further notice.
10. Declaration against D6 (ie the Company):
D1 and a number of named persons are connected
parties to the Company.
The loan facility agreement by D2 to the Company is
ultra vires;
The USD7,550,000 in loans from D4 to D6 are ultra
vires;
Accordingly that the Company restate its audited
accounts.
11. The Company remove all current directors and its
Chief Financial Officer, and seek damages for unfair
prejudicial acts against it.
18.
HCA 2983/2015
(16 December
2015)
Kim Young Jun (D1);

Pioneer Centre Limited (D2);
Han-A-Steel Co, Limited (D3);
Etron Co, Limited (D4);
Eid Co, Limited (D5);
Ehaw Technologies & Information Co Limited (D6);
Siberian Mining Group Company Limited (D7);
- 40 -

applied for an interlocutory
injunction against D2
restraining it from taking any
steps to sell or alter the form of
its "Pioneer loans".
Mr Zhi discontinued the

proceedings against D7
(ie the Company) on
6 April 2016.
- 41 -
Case
No.
Action no.
(Issue Date)
Nature of action
Mr Zhis involvement
Rossana Ching Man Chu (D8) (a partner of Troutman

Sanders who are solicitors acting for the Company in
corporate matters).
Alleges that there was a scheme elicited by D1 to channel funds

wrongfully obtained by D1 to the Company. In particular, it is
alleged that D3, through D4, D5 and D6 which are listed
companies in Korea, lent money to D3, a Korean company said
to be a 51% owned by D4. D3 then injected money into its
wholly owned subsidiary, D2, who in turn lent money to the
Company. Mr Zhi alleges that the defendants are all engaged in
a money laundering exercise.
Seeks orders that:1. Declaration against D1: he holds over 43% of the outstanding shares of the
Company;
he holds (through its associates and trustees)
USD300,000,000 of the 3rd CN and the debts of
the Company beneficially held by others;
he has been acting in concert with a number of
parties named.
2. Mandatory injunction against D1 not to dispose of or
deal with, including applying for conversion into
shares, any debts he holds beneficially in the Company.
3. D1 to pay equitable compensation to the Company.
4. An order to for D2 to forfeit the loans it made to the
Company.
- 41 -
The said application was

dismissed by G Lam J on
18 March 2016 with costs to
D2.
Status
discontinued the
proceedings against D2.
- 42 -
Case
No.
Action no.
(Issue Date)
Nature of action
Mr Zhis involvement
Status
Mr Zhi is one of the petitioners.

All of the petitioners are legally
represented by the same firm of
solicitors and counsel.
The call over hearing is

30 March 2016. The
Petition was adjourned
before Companies Master
on 4 May 2016 as the
Petitioners failed to obtain
the Registrar Certificate.
5. Mandatory injunction against D3 to D6 restraining

them from disposing of or dealing with, including
applying for conversion of the loans to shares, of the
loans made by D2 to the Company.
6. Declaration from the Company that the loans from D2
are the product of money laundering.
7. The Company to cancel the loans from D2.
8. Various declarations against D8, including she is not
the Companys General Counsel.
19.
HCCW392/2015
(17 December
2015)
Mr Zhi, together with a Mr Tam Wing Yuen, and a Ms Chow

Doi Yik Caniel, applied to wind up the Company on just and
equitable grounds.
The Company has issued a

summons to strike out the
winding up petition. This
was adjourned (with
directions on the filing of
evidence) to 15 July 2016
before Harris J for a case
management hearing.
20.
HCA 584/2016
(8 March 2016)
Mixed personal and derivative action by Mr Zhi against:-

person)
Pleadings stage.
- 42 -
- 43 -
Case
No.
Action no.
(Issue Date)
Nature of action
Mr Zhis involvement
Roma Group Limited (D1)

Roma Oil Appraisal Limited (D2)
Roma Oil and Mining Associates Limited (D3)
Herman Tso (D4)
Kelvin Kee Yan Luk (D5)
Yue, Kwai Wa Ken (D6)
Chan Ka Kit (D7)
Ko Wai Lun Warren (D8)
Lou Ming (D9)
Wong Tat Keung (D10)
Lim Hosok (D11)
Choi Sung Min (D12)
Hong Sang Joon (D13)
Kaneko Hiroshi (D14)
Forebase International Holdings Limited (D16)
The Stock Exchange of Hong Kong Limited (D17)
Financial Reporting Council (D18)
In this action, Mr Zhi alleges that reports and opinions provided

Roma (D1-D3, their directors being D5-D10) are ultra vires
and illegal and hence ab initio void. These reports and
opinions were provided to listed companies, namely the
Company (D15) and Forebase (D16). (Roma reviewed the
reports prepared by HASS/Dr Tso on the instructions of the
Companys auditors).
- 43 -
Status
discontinued this action as
against D1, D2, D3, D5,
D6, D7, D8, D9 and D10.
issued a summons for an
restrain the Stock
Exchange from allowing
the Companys shares to be
traded. That has been
adjourned for substantive
argument on 13 September
2016 before DHCJ Wilson
Chan.
On 14 April 2016, the
Stock Exchange issued a
summons to strike out this
action. The first hearing
into this summons will be
on 27 April 2016.
issued a summons seeking
a declaration that
section 22 of the Securities
and Futures Ordinance
(concerning the Stock
- 44 -
Case
No.
Action no.
(Issue Date)
Nature of action
Mr Zhis involvement
Mr Zhi also alleges that Dr Tsos report did not fulfil the
conditions for issuance of the 3rd CN.
Exchanges immunity) is
unconstitutional. This will
be heard at the aforesaid
hearing on 13 September
2016.
As for the Stock Exchange (D17) and the Financial Reporting

Council (D18), Mr Zhi alleges that the former is doing a lousy
job and totally incompetent, and the latter has ignored
Mr Zhis complaint letters. Seeks order that they review the
valuation and technical reports made by Roma. Also seeks an
order to repeal Chapter 18 of the Listing Rules.
21.
HCA 1160/2016
(4 May 2016)
Generally indorsed writ against the Company (D1), Mr Lim

(D2), Mr Hong (current director, D3), Mr Wong Wing Cheong
(the Company's company secretary, D4), the Company's auditor
(JH CPA, D5) and Access Partners an consultancy & Appraisals
Limited (a technical expert engaged by the Company, D6).
Status

person).
Seek declarations that D1-D6 "have engaged in the collusion

and conspiracy of account fraud", order that JH CPA withdraw
its audit reports for 2013, 2014, and 2015, and Access Partners
withdraw all valuation reports done for D1-D5.
22.
HCA 1195/2016
(6 May 2016)
Action by Mr Zhi against:

Lim Hosok (D1)
Choi Sung Min (D2)
Siberian Mining Group Co Ltd (D3)
SRK Consulting Russia Ltd (D4)
Hong Sang Joon (D5)
Wong Wing Cheong (D6)
Discontinued.
- 44 -
- 45 -
Case
No.
23.
Action no.
(Issue Date)
Nature of action
Mr Zhis involvement
HCA 1618/2016
(18 June 2016)
- 45 -
Status

HCMP000443 2015

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HCMP000443 2015

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HCMP 443/2015

IN THE HIGH COURT OF THE

1. The is an application by the plaintiff (SMG) by originating

principal businesses of SMG including its subsidiaries are coal mining

3. SMG had in October 2008 entered into an agreement to purchase a

was in the form of three tranches of convertible notes (CN) issued by

First CN of US$253,000,000 issued on 25 May 2009;

Second CN of US$32,000,000 issued in late 2010; and

Third CN of US$443,070,000 issued on 3 April 2013.

4. Issuance of the Third CN was subjected to 2 conditions:

a mining licence for Lot 2 of the mine being obtained; and

a technical report issued by a technical expert acceptable to

probably coal reserves of lot 2 of the Target Mine being not

defendants in addition to SMG. It is the acquisition of the Lapichevskaya

acquired 290,000 shares (about 0.06% of the issued capital) in SMG on

6. Many of these actions overlap or are simply repetitive of and

7. As at 30 September 2015, when the originating summons herein first

8. Between 30 September 2015 and 20 June 2016, Mr Zhi started 8

(10) HCA 284/2015

(12) HCCW 180/2015

(13) HCA 1754/2015

(14) HCA 1821/2015

(15) HCA 1880/2015

(16) HCMP 2439/2015

(17) HCA 2494/2015

(18) HCA 2983/2015

(19) HCCW 392/2015

(21) HCA 1160/2016

(22) HCA 1195/2016

(23) HCA 1618/2016

10.A number of interlocutory applications were also taken out by Mr Zhi

HCA 1880/2015, Anthony Chan J said that [t]he amount of judicial

Actions seeking to undermine or rescind the CNs issued to

Mine in 2008. These claims had been pursued in Cases 4, 6,

Actions alleging that Mr Choi Sungmin (alleged to be

sole shareholder and director of Cordia) owes

Mr Hyon Hi Hun (father-in-law of Mr Zhi) HK$5,600,000 in

SMG to Cordia as collateral for that loan, and that SMG is

promissory note is a false instrument. These claims have

(see Cases 7, 8 & 10).

Actions alleging that Cordia (or Mr Choi Sungmin) is liable

Letter (in which Cordia had allegedly agreed to grant

Ms Moon to settle the alleged breach of the Grant Letter.

between Mr Kim Young Jun with Mr Zhi whereby

Mr Kim Young Jun would: (1) guarantee that Mr Zhi receive

Actions concerning a loan of US$7.55 million from Pioneer

12.I am satisfied, as Mr Zhi himself accepted, that to bring such

HCCW 392/2015, HCA 584/2016, HCA 1195/2016 and HCA 1618/2016.

On 20 June 2016, I made an order by consent that all further proceedings

stayed as against SMG.

It has since come to my attention that

immediately after the hearing on 20 June 2016, Mr Zhi took out a

summons in that action for interlocutory injunctions against various

of on the basis of certain interim undertakings given by Herman Tso. On

Meanwhile Herman Tso has also apparently been

expelled from the register of members of the Australian Institute of

admitted as a member. Mr Zhi submitted that his position has been

17.I have therefore, by consent, made an order against Mr Zhi pursuant to

the Honourable Mr Justice G Lam; or

the Honourable Mr Justice Anthony Chan; or

the Honourable Madam Justice Au-Yeung; or

the Honourable Mr Justice L Chan;