华谊兄弟传媒股份有限公司（华谊兄弟） has been listed as a dishonest person subject to enforcement by the court for failing to fulfill effective legal documents, with the amount involved in this case being only 608,400 yuan (RMB). This news made headlines on May 21st.
On May 20th, Huayi Brothers issued a notice titled “Announcement on the Company Being Listed as Dishonest Person Subject to Enforcement.” The announcement stated: “The obligations determined by the effective legal document: should pay a temporary sum of 608,400 yuan; The performance of the enforced person: all obligations not fulfilled; Specific circumstances of the untrustworthy person’s behavior: having the ability to perform but refusing to fulfill the obligations determined by the effective legal document.”
According to the mainland’s Enterprise Check app on May 19th, besides the company, the legal representative of the company, Wang Zhongjun, was restricted from high consumption due to this case. The executing court is Beijing Chaoyang District Court.
On May 20th, Eastern Financial News reported that prior to this incident, both Huayi Brothers and Wang Zhongjun had been restricted from high consumption in connection with this case, and there were multiple instances of enforcement and restrictions under the company’s name.
Public information shows that Huayi Brothers Media Co., Ltd. was established in November 2004 by brothers Wang Zhongjun and Wang Zhonglei, known as the leading force in China’s film and entertainment industry. Despite the popularity of films such as “A or B,” the company has faced operational challenges in recent years.
According to the company’s “2026 first-quarter report,” “Operating income was 62,623,133.52 yuan, a 40.88% year-on-year decrease; Net profit attributable to shareholders of the listed company was a loss of 28,728,391.55 yuan, a 245.37% year-on-year decrease; Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was a loss of 20,282,197.02 yuan, a 26.36% year-on-year increase.”
The “2025 Annual Report” indicated: “The company achieved total operating income of 309.67 million yuan, a decrease of 33.43% compared to the same period of the previous year; Net profit attributable to shareholders of the listed company was -33.3754 million yuan, a decrease of 17.26% compared to the same period of the previous year; Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was -40.79737 million yuan, a decrease of 6.63% compared to the same period of the previous year.”
In explaining the losses, the announcement stated: “During the reporting period, the film and television industry remained in a stage of recovery under the adverse impact of the previous economic situation. Furthermore, fierce competition in the film and television industry during the reporting period led to intensified market share competition.”
Apart from continuous operational losses, Huayi Brothers also faces substantial debt. According to a report by “New Yellow River,” under the Jinan Daily Newspaper Group on May 20th, as of March 31, 2026, the company’s total debt amounted to approximately 2.12 billion yuan. By the end of 2025, its debt-to-asset ratio was 96.11%, which led to multiple lawsuits and arbitration cases due to debt defaults, resulting in several bank accounts being frozen and various assets being mortgaged.
In the “2025 Annual Report,” Huayi Brothers mentioned that the company may not be able to repay its debts in the normal course of business.
Furthermore, Huayi Brothers’ control rights over the company are also at risk due to the auction of its equity. According to Huayi Brothers’ announcement on May 20th titled “Progress Announcement on the Judicial Auction of Partial Company Shares Held by the Controlling Shareholders,” “The company’s controlling shareholder and actual controller, Mr. Wang Zhongjun, holds 40,000,000 shares that are planned to be judicially auctioned, accounting for 24.51% of his total shareholding in the company and 1.44% of the total share capital of the company.”
Since the beginning of this year, the shareholdings of the company’s controlling shareholders Wang Zhongjun and Wang Zhonglei have been continuously auctioned off. As of now, Wang Zhongjun has accumulated a total of 224 million shares auctioned by the judiciary, and Wang Zhonglei has accumulated 11.45 million shares auctioned by the judiciary.
However, the announcement stated: “If the above-mentioned shares held by the controlling shareholders and actual controllers Mr. Wang Zhongjun and Mr. Wang Zhonglei totaling 79.3 million shares are successfully auctioned and transferred, the total holding of shares by the actual controller and its acting parties will account for 5.41% of the total share capital of the company, making them still the largest shareholder of the company.”
Nevertheless, Huayi Brothers also acknowledged the risk of unstable control rights due to the low percentage of shares held by the company’s largest shareholder.
As of the closing of May 20th, ST Huayi reported a price of 1.90 yuan per share, a 2.56% decrease, with a total market value of around 5.272 billion yuan. The stock price has dropped by 12.44% since the beginning of this year, a 24.3% decrease over the past year, and a cumulative decrease of 47% over the past five years compared to the peak of over 32 yuan per share in 2015.
Huayi Brothers Media Co., Ltd. was established in November 2004 by brothers Wang Zhongjun and Wang Zhonglei and went public in October 2009 with Wang Zhongjun as the chairman and Wang Zhonglei as the general manager and vice chairman. Its business scope includes corporate image planning, film and television cultural information consulting services, and film and television project investment management.