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Huayi Brothers was founded in 1994 by brothers Wang Zhongjun (王中軍), 66, and Wang Zhonglei (王中磊), 56, and at one time was a dominant force in Greater China’s entertainment industry. Beijing sources familiar with the sector told reporters on April 26 that Huayi and Huace Media once battled for market leadership. The company began as a talent agency and, riding China’s economic boom, expanded into an integrated media firm producing films, television dramas and variety shows.
Fan Bingbing was with the company until 2007, a sign of how influential Huayi once was. In 2009 the company reached a milestone as one of the first media firms to list publicly in China, and at its height its market capitalization approached 100 billion yuan (about 21.7 trillion KRW).
Yin Jingmei (尹敬美), who runs a small talent agency in Beijing, said, “Huayi Brothers aimed to be China’s Warner Bros. At one point they represented more than 100 artists. But they couldn’t clear the critical hurdles, and now they face bankruptcy.”
After acquiring Sim Entertainment in 2016, Huayi rebranded the unit as Huayi Brothers Korea and made an ambitious push into the South Korean market. The venture failed to produce significant profits, and Huayi sold the business in 2020 and withdrew from Korea. The sold company later renamed itself Studio Santa Claus Entertainment.
Now, after 32 years in business, Huayi’s downfall can be traced largely to mounting debt. Over the past seven years the company posted operating losses totaling 8.2 billion yuan. Recent reports say it even failed to resolve a relatively small debt of 10 million yuan. The firm’s market value has shrunk to roughly one-twentieth of its peak, and analysts warn its shares could soon be worthless.
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