Legal litigation information from Tianyancha reveals that Huayi Brothers Media Corporation (300027.SZ) and its legal representative Wang Zhongjun have recently been issued a consumption restriction order related to an advertising contract dispute. The applicant is Beijing Tairuifeike Technology Co., Ltd., and the enforcement court is the Beijing Chaoyang District People's Court. Case records indicate that the company had previously been ordered to pay over 11.4 million yuan in enforcement.
Huayi Brothers Media Corporation was established in November 2004 with a registered capital of approximately 2.77 billion yuan. Its business scope includes corporate image planning, film and television cultural consulting services, and investment management in film and television projects. The company is jointly held by Wang Zhongjun, Hangzhou Ali Venture Capital Co., Ltd., Jack Ma, and others.
On the evening of December 10, Huayi Brothers (300027.SZ) announced that due to economic conditions and delayed repayment funds, the company is experiencing temporary liquidity shortages, leading to some debts not being repaid on schedule. As of December 10, 2025, the company's overdue debts to banks and financial institutions totaled 52.5 million yuan, exceeding 10% of its audited net assets in 2024. Additionally, some of Huayi Brothers' bank accounts have been frozen.
The company stated it is actively negotiating with courts and involved parties to reach settlements. It is also working with financial institutions to extend loans while optimizing resource allocation and asset structures. Funds from asset disposals will be used to support core business development.
Meanwhile, the company continues to reduce existing interest-bearing liabilities while maintaining cooperative relationships with financial institutions. Its film and television projects remain in normal progress.
The same day, the company disclosed progress on a judicial auction of controlling shareholder shares. Wang Zhongjun’s 154 million shares (48.54% of his holdings, 5.55% of total shares) will undergo a second auction after the first attempt on December 8–9 failed. The second auction is scheduled for December 29–30.
Notably, Huayi Brothers revealed that its second-largest shareholder, Hangzhou Ali Venture Capital Co., Ltd., and third-largest shareholder Jack Ma are acting in concert, collectively holding 6.07% of shares, which may pose risks to control stability.
As of now, 100% of the shares held by Wang Zhongjun and Wang Zhonglei have been frozen, accounting for 13.81% of the company’s total shares.
The latest Q3 financial report shows Huayi Brothers’ revenue at 62.6 million yuan, down 31.61% year-on-year, with a net loss of 39.46 million yuan attributable to shareholders. Basic earnings per share stood at -0.01 yuan. For the first three quarters, revenue was 215 million yuan, down 46.08% year-on-year, with a net loss of 114 million yuan and basic EPS of -0.04 yuan.
From 2018 to 2024, Huayi Brothers accumulated losses exceeding 8.2 billion yuan over seven years.
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