Recently, Huayi Brothers Media Group Limited and its legal representative, Wang Zhongjun, were once again included in the list of restricted high consumption by the Beijing Chaoyang District Court due to a dispute over an advertising contract. The shares held by the actual controller of the company have also been frozen.
According to reports from “Sina Finance,” on December 10th, the advertising contract dispute between Huayi Brothers and Beijing Tairui Feike Technology Co., Ltd. entered the execution phase. After failing to fulfill the relevant payments as required, the company and Wang Zhongjun were subject to consumption restriction measures by the court. According to the restriction order, Wang Zhongjun is not allowed to take flights, sit in first-class seats on high-speed trains or engage in high consumption behaviors in places like star-rated hotels during the execution period.
On the same evening, Huayi Brothers issued a statement stating that due to economic conditions, some receivables were not received as scheduled, resulting in temporary tightness in liquidity, leading to situations where certain debts could not be paid on time.
As of December 10, 2025, Huayi Brothers’ overdue debts in banks and other financial institutions totaled 52.5 million yuan, exceeding 10% of the company’s net assets audited in 2024.
Additionally, some of Huayi Brothers’ bank accounts have also been frozen. The shares held by the actual controllers, brothers Wang Zhongjun and Wang Zhonglei, are in a frozen state, accounting for 13.81% of the company’s total share capital.
Huayi Brothers has been involved in numerous legal disputes in recent years with accumulated amounts exceeding billions. According to the announcement disclosed by the company on October 31, as of the fiscal year 2024, Huayi Brothers and its holding subsidiaries have accumulated a total of approximately 111 million yuan in new lawsuits and arbitration awards over twelve consecutive months.
Financial data shows that in the first three quarters of 2025, the company achieved operating income of 215 million yuan, with a net loss attributable to the parent company of 114 million yuan. From 2018 to 2024, Huayi Brothers accumulated a net loss of over 8.2 billion yuan over seven years.
Public records indicate that Huayi Brothers was founded in November 2004 by Wang Zhongjun and Wang Zhonglei. It went public on the GEM board in 2009, becoming the first domestic Chinese film and television entertainment company to be listed. It once led the Chinese New Year box office trend with several works directed by Feng Xiaogang, including films like “The First Guard,” “If You Are the One,” “A World Without Thieves,” “Assembly,” “Aftershock,” and “Mr. Six,” all achieving remarkable success in the market and in reputation. At its peak, the company’s market value exceeded 90 billion yuan.
However, with the decline in the market economy, impacts from celebrity incidents, loss of key partners, and intensifying industry competition, the company’s operational status has continued to deteriorate.
In the capital market, Huayi Brothers’ stock price has been weakening in recent years, closing at 2.23 yuan on the 12th, with a total market value of only 6.187 billion yuan, which is less than a tenth of its peak period.