On April 23, China’s “number one in film and television” company, Huayi Brothers Media Co., Ltd. (referred to as “Huayi Brothers”), was unable to repay a debt of 114.05 million yuan and as a result, a bankruptcy application was accepted by the court. It is reported that from 2018 to 2024, Huayi Brothers accumulated losses exceeding 8.2 billion yuan.
This development signifies that Huayi Brothers is now officially in the bankruptcy review process.
According to a legal database, Huayi Brothers Media Co., Ltd. has a newly added bankruptcy case with the type of case being compulsory liquidation, the applicant being Beijing Tairui Feike Technology Co., Ltd., and the court handling it is the Intermediate People’s Court of Jinhua, Zhejiang Province, with the public date of the case being April 23, 2026.
On April 15, Huayi Brothers announced that they received a “Notice” from the creditor Beijing Tairui Feike Technology Co., Ltd., stating that due to the company’s inability to repay the due debt and a lack of clear repayment capacity, the creditor applied to the Intermediate People’s Court of Jinhua, Zhejiang Province, for a ruling to reorganize the company and applied for pre-reorganization.
The announcement revealed that as of the date of the notice, Huayi Brothers owed the creditor a principal debt of 114.5155 million yuan, which remains unpaid.
Huayi Brothers expressed uncertainty regarding whether the pre-reorganization application would be accepted by the court and acknowledged the significant uncertainty surrounding the company’s future participation in pre-reorganization or reorganization proceedings.
Reports from mainland media have consistently highlighted Huayi Brothers’ continuous financial losses in recent years, with cumulative losses exceeding 8.2 billion yuan from 2018 to 2024.
In a previous forecast for the 2025 performance, Huayi Brothers estimated a net loss attributable to shareholders of 289 million to 407 million yuan, compared to a loss of 285 million yuan in the same period last year. The forecasted adjusted net profit loss was between 314 million and 417 million yuan. This would bring the total loss over the past eight years to nearly 8.5 billion yuan. Huayi Brothers’ 2025 annual report is expected to be disclosed on April 29.
Furthermore, Huayi Brothers’ controlling shareholder and actual controller, Wang Zhonglei, has stocks that are undergoing judicial auction.
On April 3, Huayi Brothers announced that Wang Zhonglei’s 11.3 million shares in the company were set to be auctioned, accounting for 17.10% of his total shareholding and 0.41% of the company’s total equity. If these shares are successfully auctioned, Wang Zhonglei, along with his concerted actors, would hold shares totaling 7.86% of the company’s total equity, maintaining their position as the largest shareholder. As of the announcement date, more than 80% of the shares held by the actual controller have been frozen.
Huayi Brothers’ stock price has been consistently declining this year. Compared to its historical peak of 32.13 yuan in 2015, Huayi Brothers’ stock price has plummeted by over 90%. As of the closing on April 23, the stock price of Huayi Brothers was 1.97 yuan per share with a market capitalization of 5.47 billion yuan.
Public records reveal that Huayi Brothers Media Co., Ltd. was established in November 2004 with a registered capital of around 2.77 billion yuan, jointly held by Wang Zhongjun, Wang Zhonglei, and others. The company’s risk information indicates that Huayi Brothers has been listed as an execution subject and faces restrictions on high consumption.
On the evening of April 23, the topic “Huayi Brothers bankruptcy reorganization application” briefly became a trending topic on Weibo.
Netizens expressed their surprise, stating, “It’s a relatively large company, yet it still went bankrupt.” “It used to be the top entertainment stock in the industry.” “It was once a giant in the film and television sector.” “It was the leader in the GEM board. The film industry is truly tough.” “Fundamentally, it probably stemmed from dabbling in real estate and developing entertainment properties, otherwise, they wouldn’t have accrued such significant losses.”
A commentator, Deng Haichun, a columnist for the Chinese National Geographic, historical information blogger, and prominent Weibo user, analyzed the situation by saying, “The fact that Huayi Brothers has reached the point of bankruptcy reorganization is not about ‘being crushed by 11.4 million’, but after years of bleeding, any debt becomes the final straw.”
He continued, “Once thriving from star IPs and capital operations, but now suffering from cash flow issues, content interruptions, and strategic misjudgments, this is essentially the aftermath of ‘turning a film company into a capital game.’ Expansion into tourism, high-priced acquisitions, over-reliance on individual directors—these were considered strategies during the good times, but have turned burdensome during the adversity.
“More realistically, the entertainment industry has evolved its game plan: audience tastes have changed, distribution channels have shifted, and content production rhythms have also transformed, but Huayi Brothers’ transition seemed to lag behind.
“The stark reality here is that the market won’t remember your past glory; it will only assess if you are currently capable of creating value. This serves as a reminder to the whole industry—blockbusters can elevate you, but only stable content and healthy cash flow can save you.”