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STATEMENT OF FACTS

SUMMARY TIMELINE & BACKGROUND
By Toby Simkin

Established on April 1, 2015, 圣频伽文化发展有限公司 (in pinyin: ShengPinJia Culture Development Co., Ltd.) doing business as Kalavinka Cultural Assets Co., Ltd, and known simply as Kalavinka) was created. Its main businesses include: Entertainment Productions, Public Relations, Performing Arts Management, and Entertainment Consulting Services. Kalavinka was given a registration number of 110101018873708, along with a taxpayer ID of 91110101335535402E and organization code of 33553540. Kalavinka declared 2 shareholders, Zhang Yuan 张源 as Manager & Executive Director with RMB 1 million investment, and Wu Ping 吴萍 as Supervisor with RMB 4 million investment (Wu Ping 吴萍 is also a shareholder of 4 other companies). Kalavinka declared a registered address at 北京市东城区藏经馆胡同11号D2031房间.

On May 19, 2015, a 21-page detailed contract for the development of first-class entertainment was executed between Kalavinka and my company. It was signed by Zhang Yuan 张源, and chopped with the corporate seal of Kalavinka.

After only 3 months of payments, the required scheduled series of monthly payments were never were paid, despite work continuing until September 29, 2016 when Zhang Yuan 张源 advised my contract termination via a text message. RMB 2,212,198 remains outstanding.

On May 19, 2015, myself, Zhang Yuan 张源 and Kalavinka’s Director of Programming, GeFang Yang 杨戈芳 (Frank) arrived in New York for me to do a series of high-level introductions and exploratory business meetings with an additional goal of securing letters of intent with major Broadway producers and theatre owners. I negotiated and coordinated Zhang Yuan 张源 signing 4 letters of intent in New York. These letters of intent were subsequently ignored by Zhang Yuan 张源 so nothing became of the intended relationships.

On May 24, 2015, myself, Zhang Yuan 张源 and GeFang Yang 杨戈芳 (Frank) flew onward to London to do the same with major West End theatre owners, producers and marketing companies. I negotiated and coordinated Zhang Yuan 张源 signing 4 letters of intent in London. These letters of intent were subsequently ignored by Zhang Yuan 张源 so nothing became of the intended relationships. Further, Zhang Yuan 张源 on behalf of Kalavinka, subsequently entered a marketing contract, against my advice, with the largest West End marketing company a few weeks later. I had suggested that Kalavinka would be better served using a local Chinese marketing company due to massive market and language differences. This marketing contract defaulted and also went into breach of contract.

In July 2015, Zhang Yuan 张源 confirmed that Liu Shiyu 刘士余, the 2nd largest investor of Kalavinka, was on Kalavinka’s Board of Directors, chaired by Zhu Qiang 朱强. Liu Shiyu 刘士余 was Chairman of the Agricultural Bank of China and considered high level in the Chinese Communist Party.

On August 10, 2015, a 24-page detailed contract was executed with Zhang Yuan 张源’s signature and chopped by the corporate seal of Kalavinka with Terrence McNally; John Kander & Fred Ebb Music Company LLC; and Diogenes Veriag AG as duly authorized agent for the literary works of Friedrich Durrenmatt and the Estate of Maurice Valency; along with ICM Partners jointly with William Morris Endeavor Entertainment, LLC, collectively, to acquire the exclusive license rights to the musical The Visit in the territorial regions of mainland China, Hong Kong, Macau, South Korea, Japan, Singapore, Taiwan, Philippines, Thailand, Vietnam and Indonesia.

This license agreement was negotiated by myself in favor of Kalavinka, against existing and more lucrative offers from both South Korea and Japan, based on my relationships and belief at the time that Kalavinka would be better for all parties in the longer term. The license rights contract payment of RMB 5,180,925 remains outstanding and remains subject to international litigation including additional losses incurred by the authors and their agents.

On August 17, 2015, a 37-page detailed contract was executed with Zhang Yuan 张源’s signature and chopped by the corporate seal of Kalavinka with Tom Kirdahy International Productions Inc. collectively with The Visit Musical LLC for the presentation of the full Broadway production of The Visit musical, including all Broadway cast, in China.

This presentation agreement was accepted by the New York parties in favor of a competing plan for a London West End run, based on my pedigree and intention by Kalavinka to present the full Broadway company within Asia on a longer-term plan, than was at the time anticipated in London. Other than the small initial payment on signing, it required a scheduled series of payments which never were paid. The presentation contract payment of RMB 3,353,785 remains outstanding and is currently subject to international litigation including additional losses incurred by the producers, investors, creative team and performers, some of whom are considered “A-list” superstars in live entertainment.

In August 2015, touring cities had been selected, theatres had been booked, ticketing systems setup, media planning completed, and draft press announcements ready for The Visit, while holding for confirmation of receipt by New York partners of the contractual money transfers.

On September 18, 2015, an exclusive license and production agreement between Kalavinka and Kenneth Clarke; Richard Daniels; Captive Theatre and Music Limited and Toby Simkin was agreed for the British/Chinese musical Sacrifice, with instructions by Zhang Yuan 张源 for me to go to London, get it signed, and return it for it to be chopped accordingly. During the same trip to London, I was instructed by Zhang Yuan 张源 to meet with theatre owners to identify a possible West End Theatre for Kalavinka to purchase, “irrespective of cost”, advising me that certain members of the board wanted a strong real estate position in London. I met with theatre owners and advised Zhang Yuan 张源 accordingly of potential and varying purchase plans.

Around September 20, 2015, without approval or authorization, Zhang Yuan 张源 ignored contractual obligations as defined in the license rights and presentation contracts for The Visit and issued an incorrect press announcement along with sending preliminary, unapproved artwork, announcing that Kalavinka was bringing The Visit to China, and Kalavinka had acquired the “copyright license” for Asia, neither of which was true at that stage, since payments had not been made, and even the Chinese government Piwen (license to perform a show within mainland China) had not yet been granted.

In early October 2015, Zhang Yuan 张源 advised me that the license rights payment for The Visit had been processed, the money had left Kalavinka’s bank accounts and was now awaiting clearance from the Chinese Ministry of Taxation and the State Administration of Foreign Exchange, advising me that since it was a large sum, being sent overseas, they needed time to process it to ensure that it was not money laundering, or tied to any corruption.

On October 13, 2015, a single performance was held at the National Arts Centre in Beijing of a Tibetan inspired song and dance show “Dreams” produced, in part, by Kalavinka.

On October 16, 2015, an expense report along with the supporting invoices in the amount of RMB 94,222.72 was submitted for legitimate business expenses incurred personally by me and that Zhang Yuan 张源 had pre-approved for business meetings in Beijing, London and New York. I had been asked by Zhang Yuan 张源 to also use my personal credit card for Zhang Yuan 张源 assistant’s hotel, travel and other expenses in New York. None of these pre-approved expenses have ever been reimbursed.

Later in October 2015, Zhang Yuan 张源 advised me that the presentation contract payment for The Visit was on hold until the clearance of the license rights contract payment had been released by the State Administration of Foreign Exchange and the New York agents of the authors for The Visit confirm receipt.

In November 2015, Zhang Yuan 张源 confirmed that all Kalavinka staff payroll issues would be resolved in full by March 2016 as a priority.

In December 2015, Zhang Yuan 张源 further confirmed that all accounts payable with all suppliers would be resolved in full by June 2016.

On January 8, 2016, Zhang Yuan 张源 signed, and Kalavinka chopped a “Statement of Wage Deferral” to most of its Chinese employees committing that their salaries would be postponed but would be paid by Kalavinka. To the best of my knowledge, none were actually paid.

Later in January 2016, Zhang Yuan 张源 updated me regarding license rights contract payment for The Visit was still on hold by the Chinese State Administration of Foreign Exchange, and was now looking like it would be subject to unusually large withholding fee by the Chinese Ministry of Taxation, and that influential members of Kalavinka’s board of directors, led by the Chairman of the Agricultural Bank of China, Liu Shiyu 刘士余, were “using their influence” working with the government and the banks to resolve the issue regarding China’s new regulations concerning outbound direct investment by limited partnerships.

In February 2016, Zhang Yuan 张源 advised me that Kalavinka board member and its 2nd largest investor Liu Shiyu 刘士余 was promoted from Chairman of the Agricultural Bank of China to serve as Chairman of the China Securities Regulatory Commission and Secretary of the Party Committee. Zhang Yuan 张源 expressed his confidence in a faster resolution to payments due to this.

Later in February 2016, Zhang Yuan 张源 advised me that Kalavinka had applied for Government and other investor funding in the amount of RMB 100 million that the Board of Directors had agreed, with a March 27, 2016 deadline. At the time, I was advised by Zhang Yuan 张源 that the outstanding payments for both the Asian license and presentation contracts for the Broadway production of The Visit , along with the amounts outstanding to me would be paid in full.

In April 2016, Zhang Yuan 张源 advised me that Kalavinka was told that an additional license was required in order to unfreeze the license rights payment for The Visit held at the Chinese State Administration of Foreign Exchange, and that it was forthcoming.

On May 18, 2016, Zhang Yuan 张源 advised me that 北京圣频伽文化有限责任公司 (in pinyin now: Beijing ShengPinJia Culture Development Co., Ltd., but still known as Kalavinka in English) was formally approved as a Limited Liability Company by the Beijing Municipal Administration for Industry and Commerce, Dongcheng Branch to operate in the culture industry. The business license was issued accordingly with a new organization code of 29807440. Zhang Yuan 张源 explained that this new license would now allow for the “bad things” to get “corrected” quickly. Zhang Yuan 张源 sent me a copy of what he called the new business license, which after translation, I learnt was actually a business license of an unrelated equity investment fund management company registered in ChongQing.

On June 6, 2016 the Beijing Municipal Bureau of Culture granted Kalavinka a Beijing City Performance License #2334, and on August 4th, 2015 this license was upgraded to include Performance Brokerage.

In June 2016, Zhang Yuan 张源 directed me to focus all efforts on the British/Chinese musical Sacrifice, while Kalavinka is awaiting forthcoming resolution with the Chinese State Administration of Foreign Exchange on release of payments to New York for The Visit .

In its annual report for 2016, Kalavinka declared 7 employees for whom it was paying basic pension, medical and unemployment insurance, and amended its address to 西城区广成街4号院1楼201室. Kalavinka’s offices had a spot check done at this address by the Beijing Municipal Administration for Industry and Commerce on June 8th, 2016 and was deemed normal.

On June 29, 2016, Kalavinka staged a national tour press conference at the China Railway Museum, to which I was not invited, to announce that its Tibetan song and dance show, now called “Dream of Dreams” will have a national tour, commencing on August 3, 2016 at the Beijing Century Theatre, then would go to Shanghai, Nanjing, Wuhan, Zhengzhou, Taiyuan, Chongqing, Qingdao, Dongguan, Hefei, Ningbo, Huizhou, Shenzhen , Wuxi, Yantai, Wenzhou and other cities. The tour never happened.

In July 2016, Zhang Yuan 张源 reported to me that the Beijing City Arts Commission had reviewed materials for the British/Chinese musical Sacrifice, “loved it, and wanted to push fast for it to happen”. I then prepared significant materials to support this accordingly.

Between and August 2015 and September 2016, over 800 individual documents regarding Kalavinka business, largely for The Visit, Sacrifice, Dreams, Wolf Totem, Educational School, Musical Theatre Concert and other Kalavinka projects including budgets, marketing plans, business plans, research, production schedules and artwork continued to be produced by me at Zhang Yuan 张源’s instruction, in good faith, and on the continuing basis that “all money owed is guaranteed to be paid”.

On September 30, 2016, in a 1 hour and 11 minute recorded conference call between Zhang Yuan 张源 and myself (with Kalavinka’s Director of Programming, GeFang Yang 杨戈芳 ”Frank” translating) regarding Kalavinka’s inability to fulfill its contracts regarding The Visit, Sacrifice and my own contract, Zhang Yuan 张源 confirmed everything is stopping, but are planning, with the Board of Directors, a ’new round of financing that should come shortly’.

Every month between October 2015 and May 2019, I sought an update from Zhang Yuan 张源 on the status of the governments supposed release of The Visit license rights contract payment, The Visit presentation agreement payments, Sacrifice rights and production payments, my contractual payments and expense reimbursement. These updated were typically requested in the “Kalavinka Executives” WeChat group, and were typically requested in text format, and replied to in audio format by Zhang Yuan 张源 mostly in English. Sometimes the audio responses from Zhang Yuan 张源 were in Chinese language, and then translated to me by GeFang Yang 杨戈芳 ”Frank” who was also in the group. I received various excuses and delaying tactics from personal sickness, family deaths, no updates yet, to completely ignoring.

As of December 27, 2017, according to official documentation provided online, Kalavinka went into hiding from the Beijing Municipal Administration for Industry and Commerce, who announced they were unable to contact Zhang Yuan 张源 or other legal representatives through registered residences or business premises. As a result, Kalavinka was deemed in abnormal operation and placed on the Governments business exception list. This key fact was hidden from me by Zhang Yuan 张源.

In the period of January 2018 to August 2018, months would pass where Zhang Yuan 张源 would not respond to requests for update requests be me, and in the few instances where he did respond, it was always a positive, we are getting closer to fixing, be patient short responses.

On August 21, 2018, Zhang Yuan 张源 advised me that one of the board members of Kalavinka “has taken control of the company” and is now trying to have the holds on the bank and tax accounts removed in order to be able to pay what is owing to staff and vendors in fees, salaries and expenses.

On October 20, 2018, Zhang Yuan 张源 advised me that Chairman of the Kalavinka Board of Directors, Zhu Qiang 朱强, said it’s possible new investment will arrive in November.

In December 2018, Zhang Yuan 张源 advised me that Kalavinka would restart operations in March 2019 and asked that I provide a discount to Kalavinka on the outstanding monies owed to me.

In March 2019, Zhang Yuan 张源 advised me that Kalavinka was working with Zhu Qiang 朱强 and a “Mr. Wang” (Zhang Yuan 张源 claimed Mr. Wang was the “important person about this restart”), as they’re planning “to get investment from a new energy project”, and that project “will start soon”.

On May 19, 2019, it was widely reported in the Chinese press that Liu Shiyu 刘士余 , the 2nd largest investor and Kalavinka Board of Directors member, was suspected of violating and breaking the law, resigned from the China Securities Regulatory Commission and surrendered. This fact was hidden from me by Zhang Yuan 张源.

After more than 4 years of patience and attempts to be civil, on May 30, 2019, Zhang Yuan 张源 advised me in voice message on WeChat that they are “still trying but not any update so far”

HIGHLIGHTS OF SOME OTHER LAWSUITS AGAINST KALAVINKA / ZHANG YUAN 张源:

Plaintiff	Case	Amount	Court Notes
Sinotrans Modern Logistics Co., Ltd.	Breach of storage Contract	RMB302,360	Shunyi People’s Court won by Plaintiff. Zhang Yuan 张源 did not show up to court
Beijing Footprint Aviation Service Co., Ltd. (travelmark)	Breach of travel Contract		Chaoyang People’s Court closed by mediation
Beijing Xinyi Culture Media Co., Ltd.	Breach of Contract	RMB177,500	Haidian People’s Court won by Plaintiff & Kalavinka required to pay RMB 355,000 plus interest
Beijing Heyu Yingyang Art Troupe	Breach of Contract	RMB952,542	Dongcheng People’s Court
Beijing Shuimu Qingyi Digital Technology Co., Ltd.	Breach of Contract	RMB264,957	Dongcheng People’s Court won by Plaintiff & Kalavinka required to pay RMB 264,957 plus interest

The above legal cases against Kalavinka and Zhang Yuan 张源 were all hidden from me by Zhang Yuan 张源.

As detailed in this statement of facts, Zhang Yuan 张源 and Kalavinka have repeatedly breached legal contracts, broken Chinese and international law, and have evaded the truth by a systematic series of stalling tactics, deceit and outright lies resulting in significant global issues with multiple major live entertainment companies and individuals.

Collectively, myself and my associated foreign parties (future plaintiffs) are owned in excess of RMB 10,841,130 (USD $1,568,949), plus additional losses incurred by The Visit and Sacrifice authors, agents, producers, investors, creative team and performers, including legal and travel costs associated with its recovery.

My credibility and long-term, 30-year honorable standing within my beloved Broadway and West End communities has been devastated by Zhang Yuan 张源 and Kalavinka. Business partners and friends that agreed to participate with Kalavinka, based entirely on my belief in Zhang Yuan 张源 and Kalavinka, and shared by dream to showcase a positive China to the world, now either ignore me or are suing me. Two of the largest theatrical agencies in the world, ICM and William Morris, plus other Tony Award winning A-list producers such as Tom Kirdahy now consider China a fake nightmare to avoid.

Zhang Yuan 张源 and Kalavinka have done significant, if not irrevocable, damage to my beloved China brand, and have effectively ended my past 17 years’ work in China of wanting to showcase Chinese first-class talents to the world by equalizing China with other major theatre centres’ including England, the United States, Canada, Australia, Japan, Germany and South Korea. In my professional opinion, Zhang Yuan 张源 and Kalavinka’s damage within the global arts community has destroyed China’s chances of being an effective global theatrical powerhouse.

Given that Zhang Yuan 张源 likely has little assets of cash value remaining, legal counsel recommends in Shanghai, Beijing, New York and Hong Kong simultaneously seeking legal retribution with full force and effect against Zhang Yuan 张源 and Kalavinka’s Board of Directors plus its shareholders, past and present, through international legal tribunal with the People’s Republic of China Government, while at the same time ensuring the Kalavinka company and its leadership are placed on permanent blacklists and listed on public documents, including official websites of major international music, theatre, dance, ballet and recording industry companies, performing arts agencies and live entertainment unions to best ensure that no other international entertainment company or individual can be harmed in future by their willful, corrupt or contractual neglect.

By publicly listing the individuals involved on multiple entertainment industry websites globally, it will have the added benefit of these individuals losing “face” globally through the embarrassment of their actions and inactions brought to media and public attention.

This will further effectively end any possible participation by Kalavinka or its leadership, in any form, of live or recorded entertainment outside of the mainland of China (and if Chinese judicial systems and/or the Ministry of Culture of the People’s Republic of China concur, within the mainland of China) for the lifetimes of the respective Kalavinka leadership.

copied to Party Secretary and Minister of Culture and Tourism of China
Ministry of Culture and Tourism, P.R.C. 中华人民共和国文化和旅游部
10 Chaoyangmen North St., Dongcheng, Beijing, 100020 北京市东城区朝阳门北大街10号

and Ministry of Commerce, P.R.C. 中华人民共和国商务部
and Ministry of Foreign Affairs, P.R.C. 中华人民共和国外交部
and State Administration of Foreign Experts Affairs, P.R.C. 国家外国专家局
and State Administration for Industry & Commerce, P.R.C. 国家工商行政管理总局