Huayi Brothers' Wang Zhongjun and Wang Zhonglei Subject to Consumption Restrictions

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According to Tianyancha APP, recently, Huayi Brothers Film Co., Ltd., Huayi Brothers Media Corporation (300027.SZ) and their legal representatives Wang Zhonglei and Wang Zhongjun have been placed under consumption restrictions, in connection with an enforcement case involving 74.73 million yuan, heard by the Beijing Chaoyang District People's Court. The China Execution Information Disclosure Network simultaneously shows that the two companies have newly added a person subject to enforcement record, with the execution target also exceeding 74.73 million yuan. Public data further reveals that over the past twelve months, the total amount involved in Huayi Brothers' accumulated litigation and arbitration cases has reached approximately 111 million yuan, accounting for 30.71% of the absolute value of the company's latest audited net assets.

Notably, Wang Zhongjun had already been subject to consumption restrictions prior to this. On December 10, 2025, Beijing Tairuifeike Technology Co., Ltd. applied for consumption restrictions against him due to an advertising contract dispute.

In addition, Tianyancha App shows that Huayi Brothers Media Corporation was established in November 2004, with Wang Zhongjun as its legal representative and a registered capital of approximately 2.77 billion yuan. Its business scope includes the production, reproduction, and distribution of special topics, columns, variety shows, animations, radio dramas, and TV dramas, as well as the distribution of domestic films and film production. Shareholder information indicates that the company is co-owned by Wang Zhongjun, Wang Zhonglei, Hangzhou Ali Venture Capital Co., Ltd., Jack Ma, and others.

On December 17, Huayi Brothers announced that it had received the "Simplified Equity Change Report of Huayi Brothers Media Corporation" and "Notice" issued by shareholders Hangzhou Ali Venture Capital Co., Ltd. and Jack Ma. It was learned that Ali Venture Capital formulated this share reduction plan based on its own business arrangements and reduced its holdings of the company's shares through block trading on December 17. This resulted in the equity change of Ali Venture Capital and its concerted actor Jack Ma reaching integer multiples of 1% and 5%. The shareholding ratio of Ali Venture Capital decreased from 3.467799% to 2.403580%, while the combined shareholding ratio of Ali Venture Capital and its concerted actor Jack Ma dropped from 6.064215% to 4.999996%.

On December 10, Huayi Brothers issued a公告 stating that affected by the economic situation, some of the company's回款 funds failed to arrive as scheduled, causing temporary liquidity strain and leading to the company's periodic failure to repay individual debts on time. According to statistics and verification by the company's relevant departments, as of December 10, 2025, the company's overdue debts in banks and other financial institutions totaled 52.5 million yuan, exceeding 10% of the company's audited net assets in 2024.

On the same day, Huayi Brothers also released an announcement disclosing that 153.92 million unrestricted tradable shares of the company held by the controlling shareholder and actual controller Wang Zhongjun are planned to be judicially auctioned for the second time, accounting for 48.54% of the total shares he holds in the company and 5.55% of the company's total share capital.

The aforementioned announcement also showed that 2,259,362 shares of the company held by the controlling shareholder and actual controller Wang Zhongjun, and 156,962 shares held by Wang Zhonglei, were publicly auctioned by the Suzhou Intermediate People's Court of Jiangsu Province on the JD.com online judicial auction platform in October. The equity transfer for the above-mentioned share auction has been completed.

Huayi Brothers has been trapped in continuous losses since 2018. From 2018 to the third quarter of 2025, the company's cumulative losses exceeded 8.2 billion yuan. In the first three quarters of 2025, the company's operating income was only 215 million yuan, a year-on-year decrease of 46%, and the net loss attributable to shareholders was 114 million yuan, a year-on-year expansion of 168%.

As of the close on December 29, Huayi Brothers closed at 2.14 yuan per share, with the stock price falling 1.38%. The current total market value is 5.937 billion yuan, a significant shrinkage from nearly 90 billion yuan at its peak in 2015.