On April 3, Huayi Brothers Media Corporation (300027) announced that 11.3 million shares held by controlling shareholder and actual controller Wang Zhonglei are set for judicial auction, representing 17.10% of his total holdings and 0.41% of the company’s total shares. The announcement noted that if the auction proceeds successfully, the combined stake of the company’s actual controllers and their parties acting in concert would account for 7.86% of total shares, maintaining their position as the largest shareholder. However, due to the relatively low shareholding percentage of the largest shareholder, there is a risk of instability in control. Since the second-largest shareholder does not hold a directorship, the auction outcome is not expected to significantly impact board decisions or actual operations. Wang Zhongjun and Wang Zhonglei are parties acting in concert and serve as the controlling shareholders and actual controllers of the company. As of the announcement date, a cumulative 229 million shares held by Wang Zhongjun and Wang Zhonglei have been frozen, accounting for 100% of their holdings and 8.26% of the company’s total shares. In the first three quarters of 2025, Huayi Brothers reported revenue of 215 million yuan and a net loss attributable to shareholders of 114 million yuan.
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