HBMC(SZ:300027) Sou Hu Cai Jing·2025-12-18 12:57Core Viewpoint - Huayi Brothers Media Co., Ltd. announced that its shareholder, Alibaba Investment, and Jack Ma will reduce their stake below 5%, which is part of a strategic plan to stabilize the company's shareholding structure and will not adversely affect its operations [1][2]. Shareholder Changes - Alibaba Investment's shareholding will decrease from 3.467799% to 2.403580%, while the combined stake of Alibaba Investment and Jack Ma will drop from 6.064215% to 4.999996% [1][2]. - The reduction will occur through a block trade on December 17, 2025, at an average price of 2.11 yuan per share, involving the sale of 29,526,820 shares [2]. Company Background - Huayi Brothers, founded in 1994, is a prominent entertainment group in mainland China and was the first to list on the Growth Enterprise Market in 2009 [3]. - As of the end of Q3 2025, the top five shareholders are Wang Zhongjun (11.51%), Alibaba Investment (3.47%), Jack Ma (2.60%), Wang Zhonglei (2.39%), and Tencent (1.01%) [3]. Financial Performance - The company has reported continuous losses since 2018, with total losses exceeding 8 billion yuan over seven years [4]. - For the first three quarters of 2025, Huayi Brothers achieved revenue of 215 million yuan, a decline of 46.08% year-on-year, and a net loss attributable to shareholders of 114 million yuan, an increase of 168.15% year-on-year [4][5]. - The decline in revenue is primarily attributed to reduced income from the film and entertainment business [4]. Debt and Financial Issues - As of December 10, 2025, the company has overdue debts totaling 52.5 million yuan, which exceeds 10% of its audited net assets for 2024 [6]. - The company is facing temporary liquidity issues due to delayed receivables, leading to some debts not being repaid on time [6]. - Additionally, the controlling shareholder Wang Zhongjun's 153.92 million shares are subject to a second judicial auction, representing 48.54% of his holdings and 5.55% of the total shares [6].