Huayi Brothers Media Corporation and Founder Wang Zhongjun Face High-Consumption Restrictions Over Legal Disputes Exceeding 100 Million Yuan

On December 12, corporate data platform Qichacha revealed that Huayi Brothers Media Corporation (300027.SZ) and its legal representative Wang Zhongjun have been subjected to high-consumption restrictions due to an advertising contract dispute. The applicant in the case is Beijing Tairuifeike Technology Co., Ltd. Previously, the company had already been ordered to pay over 11.4 million yuan in connection with this case.

Huayi Brothers has been involved in multiple lawsuits and arbitrations, with total claims exceeding 100 million yuan. According to a disclosure on October 31, the company reported that its recent cumulative litigation and arbitration cases amounted to approximately 111 million yuan, accounting for 30.71% of its latest audited net asset value. Of this amount, 91.81 million yuan (82.70%) stemmed from cases where Huayi Brothers or its subsidiaries were plaintiffs, while 19.20 million yuan (17.30%) involved cases where they were defendants.

Financial performance has also been under pressure. In the first three quarters of 2025, the company reported total operating revenue of 215 million yuan, a 46% year-on-year decline, and a net loss attributable to shareholders of 114 million yuan, widening by 168% compared to the same period last year. From 2018 to 2024, Huayi Brothers recorded consecutive annual net losses totaling over 8.2 billion yuan.

Founded in November 2004 by brothers Wang Zhongjun and Wang Zhonglei, Huayi Brothers went public in October 2009 and was once hailed as "China's leading entertainment stock." The company has long collaborated with director Feng Xiaogang, producing blockbuster films such as "The Dream Factory," "Be There or Be Square," "Big Shot's Funeral," "A World Without Thieves," "Aftershock," "Assembly," "The Forbidden Kingdom," "If You Are the One," the "Detective Dee" series, the "Ex-Files" series, "Journey to the West: Conquering the Demons," and "Mr. Six." At its peak, its market capitalization exceeded 90 billion yuan.

As of 10:04 AM, Huayi Brothers' A-share stock price stood at 2.29 yuan per share, up 0.44%, with a total market capitalization of 6.4 billion yuan. Year-to-date, the stock has declined by more than 12%.

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