Huayi Brothers controlling shareholder's shares face judicial auction

Huayi Brothers Media Corporation announced that its controlling shareholder and de facto controller, Wang Zhongjun, is facing a judicial auction of 153,920,000 shares, representing 48.19% of his total holdings and 5.55% of the company's total share capital. The auction is scheduled for December 8-9, 2025. This follows a previous auction of 2,259,362 shares held by Wang Zhongjun and 156,962 shares held by Wang Zhonglei, which concluded with sales totaling 5,038,000 yuan and 367,350 yuan, respectively.

As of the announcement date, the controlling shareholders' combined stake, if all currently planned auctions are successful, would be 8.26%, making them the largest shareholder. However, the company also highlights a potential control instability risk due to Alibaba Pictures and Jack Ma's combined 6.07% stake. The company's controlling shareholders currently have 100% of their shares frozen, totaling 385,636,324 shares or 13.90% of the company's total share capital.

The company states that the current judicial auction is in the public notice phase, and the outcome remains uncertain, with potential for suspension, withdrawal, or other procedural delays. Despite the ongoing auctions, Huayi Brothers asserts that its business operations remain normal and the events will not significantly impact its production, operations, or corporate governance.