Recently, Chinese actress Zhao Lusi announced the establishment of a new studio and signed with a new company, indicating her successful departure from her former company, Tianjin Galaxy Cool Entertainment Media Co., Ltd. Latest information reveals that the majority of shareholders have exited “Galaxy Cool Entertainment,” reducing the number of shareholders from 8 to 3.
According to business registration information on a corporate database, on November 14, several enterprises and private equity funds have withdrawn from the shareholder list of “Galaxy Cool Entertainment,” and several directors have stepped down.
Among them, Shanghai Yunfeng Xincheng Investment Center (Limited Partnership) and Beijing Chuangshi Xinhe Technology Co., Ltd. exited with a 12.2727% shareholding each; Qingcheng Mingguan Yangliu Equity Investment Partnership Enterprise (Limited Partnership) exited with a 1.7402% shareholding; Qingcheng Mingguan Zonglu Equity Investment Partnership Enterprise (Limited Partnership) exited with a 0.7605% shareholding; Qingcheng Mingguan Songbai Equity Investment Partnership Enterprise (Limited Partnership) exited with a 1.772% shareholding.
After these 5 companies withdrew as shareholders, Beijing Dayu Happy Culture Media Co., Ltd. became the controlling shareholder of “Galaxy Cool Entertainment,” with its shareholding increasing from 20% to around 48.82%, and the other two shareholders are Tianjin Lihe Culture Communication Partnership Enterprise (Limited Partnership) and Beijing Bofang Rongzhi Investment Co., Ltd.
According to financial news site Jiemian, “Dayu Happy” is 100% owned by Huwhale Culture Entertainment (Beijing) Co., Ltd., a subsidiary of Alibaba. Following this withdrawal, “Galaxy Cool Entertainment” has separated from direct control under Alibaba’s capital influence (Youku exited in 2023), but Alibaba retains an indirect connection through “Dayu Happy.”
The topic labeled “Galaxy Cool Entertainment Collapse” trended on Weibo on the same day.
On the evening of November 14th, “Galaxy Cool Entertainment” issued a statement asserting that all business operations are currently running normally and emphasized that recent shareholder restructuring is a routine commercial activity. The company stated its intent to pursue legal action against those spreading rumors and misinformation.
In August this year, Zhao Lusi exposed the conflicts with her former management agency, Galaxy Cool Entertainment, accusing the company of long-term lack of communication and even disbanding her personal team, treating her as a money-making tool while refusing to provide basic professional security. She revealed astonishing contract details, including a binding contract for 15 years, a high commission rate of 70%, a sky-high penalty of 400 million yuan for breach, and even a deduction of 2.05 million yuan for being ill and unable to work.
In a series of reports by mainland media, tensions between Zhao Lusi and Galaxy Cool Entertainment escalated during the promotional period of the drama “Let Me Shine.” On September 26, the drama unexpectedly aired and achieved remarkable viewership without prior promotion, ranking first on the hot search list, with the public praising Zhao Lusi for a successful comeback.
On November 8, Zhao Lusi’s studio released a lengthy statement on their official Weibo account, announcing her official comeback and the start of a new chapter. It is worth noting that the studio’s account bio no longer bears the former management company, Galaxy Cool Entertainment’s logo.
On that evening, during her “Nostalgic Like Noodles” birthday concert in Chengdu, Zhao Lusi tearfully announced the establishment of her new studio and joining a new company, expressing on stage that two months ago, she thought she would never be able to act again, describing it as “too difficult, too difficult.” She especially thanked Li Wei (Daoge), the founder and former boss of Galaxy Cool Entertainment.
Li Wei signed Zhao Lusi eight years ago and in 2023, allegedly, was ousted by shareholders from Galaxy Cool Entertainment. Recently, Li Wei established Beijing Yier San Si Cultural Technology Co., Ltd. “Yier San Si” was one of the joint organizers of Zhao Lusi’s concert.
Public records show that “Yier San Si” was established on October 14 this year. The company is 51% owned by Shenzhen Huawen Siju Cultural Media Co., Ltd., and its wholly-owned parent company is Huwhale Culture; the other shareholder is Hunan Sweet Dream Cultural Media with a 49% stake.
An article from mainland self-media “One Pot of Feelings,” last month revealed that due to Alibaba’s divestment from Galaxy Cool Entertainment, the company faced operational difficulties, ultimately being acquired by “Huwhale Entertainment,” a new investment entity formed by Alibaba, and successfully signing Zhao Lusi. Reportedly, the contract is for five years, with Zhao Lusi not required to pay a penalty for breach but instead needing to mentor new talents for 2 years during filming.