BUSINESS

Huayi Brothers Enters Pre-Reorganization as Debt Crisis Deepens

Published: Apr. 24, 2026 11:55 p.m. GMT+8

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Huayi Brothers headquarters building in Beijing. Photo: IC

A Chinese court has launched a pre-reorganization process for Huayi Brothers Media Corp., pushing the once-dominant film studio to the brink of bankruptcy after it missed a debt payment.

The Zhejiang Jinhua Intermediate People’s Court accepted a restructuring application filed by creditor Beijing Tairuifeike Technology Co. Ltd. The creditor initiated the process after the studio failed to repay a principal debt of 11.4 million yuan ($1.7 million).

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Chinese court initiates pre-reorganization for Huayi Brothers after 11.4 million yuan ($1.7M) debt default.
Q1-Q3 2025: 110M yuan net loss (up 168%), revenue down 46% to 215M yuan; cash 53.5M vs 1.7B liabilities.
Founded 1994, peaked 80B yuan value 2015; now <5B after 7 loss years, asset divestitures.

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Who’s Who

Huayi Brothers Media Corp.: Huayi Brothers Media Corp. faces bankruptcy after defaulting on 11.4M yuan ($1.7M) debt, triggering court pre-reorganization. Q1-Q3 2025: 110M yuan net loss (up 168%), revenue down 46% to 215M yuan. Cash at 53.5M vs. 1.7B liabilities; accounts frozen. From 2015 peak of 80B yuan market cap to <5B amid regulations, pandemic. Divesting assets like Feng Xiaogang stake to Alibaba.

Beijing Tairuifeike Technology Co. Ltd.: Beijing Tairuifeike Technology Co. Ltd. is a creditor that filed a restructuring application with the Zhejiang Jinhua Intermediate People’s Court against Huayi Brothers Media Corp. after the studio failed to repay a principal debt of 11.4 million yuan ($1.7 million).

Alibaba Pictures: In mid-2024, Huayi Brothers transferred its 70% stake in Feng Xiaogang’s production company to Alibaba Pictures to offset a loan, severing ties with the director. Alibaba Ventures remains a top shareholder of Huayi Brothers.

Alibaba Group: Alibaba Pictures (Alibaba Group subsidiary) acquired Huayi Brothers' 70% stake in Feng Xiaogang’s production company in mid-2024 to offset a loan. Alibaba Group founder Jack Ma and Alibaba Ventures remain top shareholders of Huayi Brothers.

Alibaba Ventures: Alibaba Ventures remains one of Huayi Brothers Media Corp.'s top shareholders, alongside Jack Ma and Tencent Holdings, despite the studio's financial struggles and asset sales.