Former Chinese Film Giant Huayi Brothers Faces Bankruptcy Restructuring After Massive Losses

Huayi Brothers, once known as the 'No. 1 Film Stock in China,' has officially entered bankruptcy restructuring after a court accepted an application from a creditor. The company, which founded its business in 2004 and went public in 2009, once boasted stars like Li Bingbing and a market cap near 90 billion RMB. However, continuous losses, tax scandals, and the departure of key talent have left it with accumulated losses of 8.1 billion RMB and a net asset value of only 263 million RMB. The Jinhua Intermediate People's Court has initiated a 'pre-restructuring' program. While its recent drama 'Zhu Yu' has been an international success, media outlets say the revenue is insufficient to cover its massive debts. If the restructuring fails, the company will face permanent liquidation and delisting.