Huayi Brothers Media Co., Ltd. (Huayi Brothers) reported a significant decline in its financial performance in the first half of 2026. The company’s revenue was only 85.45 million yuan in the first six months of the year, a 44% drop compared to the same period last year. Additionally, both net profit and net profit after deducting non-recurring items were in negative territory, and the net cash flow from operating activities was also negative during this period.
Moreover, major shareholders of Huayi Brothers, including Jack Ma and Alibaba, reduced their holdings in the company, while Tencent completely divested its stake in Huayi Brothers.
Huayi Brothers recently released its “2026 Semi-Annual Report.” According to the announcement, the company’s revenue for the first half of 2026 was 85.45 million yuan, down 44% from 153 million yuan in the same period last year. The company incurred a net loss of 36.39 million yuan and a net loss after deducting non-recurring items of 40.23 million yuan. Furthermore, the net cash flow generated from operating activities in the first half of the year was a negative 18.69 million yuan.
On September 5, a report by Beijing Hongshang Investment Consultants Co., Ltd. revealed that in the past six months, Jack Ma’s stake in Huayi Brothers decreased by 1 percentage point, Alibaba’s investment arm saw a decrease of 0.81 percentage points, and Tencent is no longer among the top ten shareholders. Mainstream funds have been distancing themselves from Huayi Brothers.
Simultaneously, the holdings of the founders of Huayi Brothers, Wang Zhongjun and Wang Zhonglei, have also declined. Wang Zhongjun’s stake decreased by 5.88 percentage points, and Wang Zhonglei’s stake dropped by 0.4 percentage points.
The report explained that the core reason for the decrease in Wang Zhongjun’s ownership percentage is the company’s prolonged financial difficulties and debt burdens, leading to continuous auctions of Wang Zhongjun’s equity.
Huayi Brothers Media Co., Ltd. was founded on November 19, 2004, with headquarters in Beijing’s Chaoyang District. The company, established by brothers Wang Zhongjun and Wang Zhonglei, primarily engages in the production, distribution, and derivative businesses of films and TV dramas. In 2009, the company went public on the Shenzhen Stock Exchange.
Public records show that on April 23, 2026, Huayi Brothers faced compulsory liquidation due to debt disputes, and in May, the company was listed as a defaulter for a 600,000 yuan case.
As of the market close on September 4, Huayi Brothers’ stock price was 1.8 yuan per share, with a market value of 4.99 billion yuan.