ELong Says Beijing Court Rules In Its Favour In Dispute With Qunar - Quick Facts

(RTTNews) - eLong Inc. (LONG), a Chinese mobile and online travel service provider, said that the Beijing First Intermediate Court issued a written judgment in the contract dispute between eLong subsidiary, eLongNet Information Technology (Beijing) Co., Ltd. and an affiliate of Qunar, Beijing Quna Software Technology Co. Ltd.

eLong Information had filed the case in 2013 after Beijing Qunar improperly terminated a three-year hotel inventory redistribution agreement entered into by eLong Information and Beijing Qunar.

In the judgment, the court held Beijing Qunar in breach of contract for early termination of the agreement.

The court ordered Beijing Qunar and eLong Information to resume PRC domestic agency hotel inventory cooperation under the terms of the affiliation agreement. Further, the court ordered Beijing Qunar to compensate eLong Information RMB 52.34 million or $8.5 million for the period from September 6, 2013 through September 30, 2014.

Beijing Qunar was also ordered to pay eLong Information an advertising credit of RMB 27 per room night, if Beijing Qunar fails to meet the room night target of 450,000 PRC domestic hotel room nights per quarter under the affiliation agreement for any quarterly periods from October 1, 2014 through June 30, 2016.

In addition, the court ordered Beijing Qunar to pay eLong Information RMB227,599 or $37,000 in legal fees, and apportioned court fees between the parties.

Meanwhile, eLong Information was ordered by the court to pay RMB8.13 million, or about $1.3 million in commissions to Beijing Qunar for room nights sold under the affiliation agreement during the period from July 1, 2013 through September 5, 2013, prior to Beijing Qunar's breach of contract.