Huayi Brothers Media Co., Ltd. (Huayi Brothers) announced on April 15 that due to debt issues, creditors have applied to the court for the company to undergo restructuring and pre-restructuring. Some analysts believe that Huayi Brothers is now standing on the edge of delisting and bankruptcy.
In a notice titled “Notice Regarding the Application for Restructuring and Pre-Restructuring by Creditors” released on April 15, Huayi Brothers stated that they received a “Notice” from creditor Beijing Tairui Feike Technology Co., Ltd. (hereinafter referred to as the “Applicant”), citing the company’s inability to repay the due debt and lacking clear solvency as reasons to initiate restructuring proceedings with the Intermediate People’s Court of Jinhua, Zhejiang Province (referred to as “Jinhua Intermediate Court” or “Court”) and apply for pre-restructuring.
The notice explained that the reason for the creditor’s application for restructuring was that the company failed to pay back the principal debt of 114.05155 million yuan to the Applicant.
According to a report by “Jiemian News” on April 15, the debt arises from a dispute over an advertising contract between the two parties. In September 2025, the Beijing Chaoyang District Court ruled in favor of the Applicant, ordering Huayi Brothers to pay the outstanding amount. However, the company failed to comply with the judgment. In December 2025, due to the overdue debt, the court issued a consumption restriction order against Huayi Brothers and the controlling shareholder Wang Zhongjun. After four months of unsuccessful debt recovery attempts, the creditor officially initiated the judicial restructuring process.
The “Notice Regarding the Application for Restructuring and Pre-Restructuring by Creditors” stated, “As of the disclosure date of this notice, the company has not received any documents from Jinhua Intermediate Court regarding the acceptance of the pre-restructuring application.”
The notice also warned investors: “If the restructuring fails, the company will face the risk of being declared bankrupt. In the event of bankruptcy, based on the relevant rules of the Shenzhen Stock Exchange GEM Listing Rules, the company’s stock may face the risk of being delisted.”
In response, “Jiemian News” indicated that if the court accepts the restructuring application, the company’s stock will be subject to delisting risk warnings by the Shenzhen Stock Exchange (*ST), indicating that Huayi Brothers is now teetering on the edge of delisting and bankruptcy.
According to information from Tianyancha on April 14, a subsidiary fully owned by Huayi Brothers Film Co., Ltd.—Huayi Brothers Film (Haikou) Co., Ltd., had its 100 million yuan equity frozen by the Dongyang City Court in Zhejiang Province, with the freeze period extended until April 2029.
“Jiemian News” believes that the recent application for restructuring by creditors, coupled with the frozen equity, is not a sudden occurrence but a result of the long-standing financial deterioration issue within the company. Data disclosed in “Huayi Brothers Media Co., Ltd.’s 2025 Performance Forecast” shows that the net profit attributable to shareholders of the listed company is expected to incur a loss ranging from 289-407 million yuan, with a net profit loss (excluding non-recurring gains and losses) of 314-417 million yuan, both indicating an increase in losses compared to the same period in 2024.
Founded in 1994 by brothers Wang Zhongjun and Wang Zhonglei, Huayi Brothers Media Co., Ltd. is a comprehensive entertainment group headquartered in Beijing. The company went public on the GEM in 2009, becoming known as the “No. 1 Chinese Film and Television Stock,” with its primary operations covering film and television entertainment, brand licensing, experiential entertainment, and internet entertainment, reaching a market value close to 90 billion yuan at its peak.
The main reasons for Huayi Brothers’ financial troubles were attributed to a downturn in the film box office market and the company’s aggressive expansion into non-core businesses such as cultural tourism and gaming in its early years, leading to resource dispersion and high debt levels.
To repay the debts, the company’s controlling shareholders, Wang Zhongjun and Wang Zhonglei, have had their shares in the listed company frozen and have been subjected to multiple judicial auctions, while their personal consumption has also been restricted several times.
As of the closing date on April 15, Huayi Brothers’ stock price was 1.74 yuan per share, a decrease of 0.57%, with a market value of 4.8 billion yuan, representing a more than 90% decline from its peak period.