HONG KONG — A high-profile legal dispute involving actress Cecilia Cheung and her former manager, Yu Yuk Hing, commenced in the Hong Kong High Court yesterday, December 3. The 2020 lawsuit, filed by Yu Yuk Hing and his company, Asia Entertainment Group (AEG) Limited, seeks approximately HK$12.76 million (S$2.2 million) in damages, alleging that Cheung accepted advance payments for four films but failed to fulfill her contractual obligations.
The complex case centers on a management agreement and film commitments dating back to 2011. According to court filings, Cheung received HK$41.76 million (S$6.94 million) upfront to feature in four designated motion pictures. The plaintiffs contend that the star subsequently breached both the film contracts and her exclusive management agreement, resulting in significant financial losses for the talent agency.
Manager Recounts Rationale for Partnership
On the first day of the proceedings, Yu Yuk Hing took the stand, offering a detailed account of the events preceding the disputed contracts. He testified that Cheung approached him in 2011 seeking career advice following a tumultuous period that included her public divorce from Nicholas Tse and the fallout from the 2008 Edison Chen photo scandal.
Yu stated that he advised Cheung to strategically reshape her public image, focusing on rebranding herself as a “strong woman” and a dedicated mother to her then-young sons. He also suggested establishing her own independent studio. Yu claimed that Cheung agreed to this strategy and, in July 2011, formally requested that he become her manager.
The HK$40 Million Question: Management Versus Financing
A key point of contention emerged regarding a substantial financial transaction. Yu testified that around the time of the management agreement, Cheung sought HK$40 million (S$6.65 million) to fund a property purchase. As his personal funds were temporarily inaccessible, Yu solicited the help of Bona Film Group chairman Yu Dong. The business executive reportedly agreed to release the necessary funds on the condition that Cheung first sign agreements committing her to star in two films as a form of guarantee.
During the session, the presiding judge questioned whether Cheung’s decision to sign the exclusive management contract was implicitly linked to securing the HK$40 million loan. Yu Yuk Hing firmly maintained that the two agreements were entirely separate. He asserted that Cheung had already made the decision to appoint him as her manager prior to any financial discussions concerning the property acquisition. Yu further testified that he informed Cheung that the HK$40 million transfer was uncertain, yet she still assured him she would sign the management contract.
Allegations of Unfulfilled Obligations
According to the lawsuit, the parties formalized an eight-year global exclusive management contract in July 2011. Following this, Yu advanced Cheung HK$40 million as film fees, requiring her to participate in four films between 2011 and 2019. In May 2012, an additional agreement was signed, requiring her to film two more projects, for which AEG provided a further advance of HK$2.76 million (S$460,000).
However, AEG and Yu Yuk Hing allege that Cheung never completed these required film projects, constituting a core breach of the management contract and subsequent financial agreements. The plaintiffs are now seeking compensation for lost revenue and damages amounting to at least HK$12.76 million.
To fully assess their losses, the plaintiffs have also requested the court compel Cheung to disclose her full income records spanning from May 2015 to July 2019. The highly publicized hearing is slated to continue.