Clarification Statement

In the unfair competition dispute between Shanghai Veritas Culture Development Co., Ltd. (hereinafter referred to as “Veritas”) and Shanghai Minhang District Private Living Word Bilingual School and Shanghai Minhang District Living Word Education & Training School (hereinafter collectively referred to as “our school”), the Shanghai Intellectual Property Court has issued Civil Judgment (2024) Hu 73 Min Zhong No. 213. Regarding the relevant circumstances, our school hereby issues the following clarification statement:

Our school cooperated with the Real Madrid Foundation (hereinafter referred to as the “Foundation”) on the “Real Madrid Foundation Youth Football Experience Camp” project starting in 2014, and the last contract between the two parties expired on September 30, 2020. Thereafter, our school failed to learn in a timely manner that the Foundation had signed an exclusive licensing agreement with Veritas on December 4, 2020, designating the company as the exclusive partner for the Foundation's football training camp programs within the People's Republic of China (excluding the Hong Kong region). Because our school did not promptly remove promotional materials indicating an ongoing partnership with the Foundation, did not promptly remove fences, display boards, flags, and plaques bearing the “Real Madrid” name and logo from campus displays, and did not promptly remove the “Real Madrid” wording from our official website and the WeChat public account “Real Madrid Youth Football Summer Camp” (now renamed “2015-2020 Real Madrid Football Summer Camp”) or the Real Madrid logo in the account avatar, the court, upon trial, determined that the above actions of our school during the validity period of the agreement between the Foundation and Veritas constituted unfair competition against Veritas.

Our school recognizes that the above actions were inappropriate and has removed and replaced the relevant promotional materials at the earliest opportunity. This clarification statement is hereby issued to eliminate the adverse impact of our school's above actions on Veritas.