HBMC(SZ:300027) Jing Ji Guan Cha Wang·2026-02-12 04:38Core Viewpoint - Huayi Brothers' stock price continues to decline due to deteriorating fundamentals, increasing debt risks, and insufficient market confidence [1] Financial Performance - Huayi Brothers has reported losses for seven consecutive years since 2018, with a cumulative net loss exceeding 8.2 billion yuan [2] - Revenue for the first three quarters of 2025 was only 215 million yuan, a year-on-year decrease of 46%, with a net loss of 114 million yuan [2] - The core business of film and entertainment saw revenue drop to 443 million yuan in 2024, only 13% of the peak value of 3.374 billion yuan in 2017 [2] - In the first half of 2025, film and entertainment revenue fell by 50.37%, and the gross margin turned negative at -30.54% [2] Financial Condition - As of December 10, 2025, overdue debts reached 52.5 million yuan, exceeding 10% of the net assets for 2024 [3] - Some bank accounts have been frozen, with only 645,000 yuan available for daily operations, severely threatening operational viability [3] - The debt-to-asset ratio has been rising, reaching 87.69% by the end of the third quarter of 2025, with cash reserves around 50 million yuan and short-term loans nearing 200 million yuan, indicating significant repayment pressure [3] Executive Shareholding - The shares held by controlling shareholders Wang Zhongjun and Wang Zhonglei are all pledged or frozen, accounting for 13.81% of the total share capital [4] - In December 2025, Wang Zhongjun's 154 million shares (5.55% of total shares) were subject to judicial auction [4] - The second-largest shareholder, Alibaba Investment, reduced its stake by 1.06% in December 2025, bringing its holding below 5%, further undermining market confidence [4] Project Development - Assets acquired at high premiums in earlier years, such as real-life entertainment (e.g., Suzhou Movie World) and gaming (e.g., Hero Mutual Entertainment), have been continuously losing money and are now being sold at low prices [5] - In 2024, the company recognized asset impairment losses of 155 million yuan, which accounted for 33.2% of its revenue [5] - Revenue from diversified businesses (brand licensing, internet entertainment) is less than 1%, with negative gross margins, failing to provide effective support [5] Industry and Risk Analysis - The film industry saw a 28% year-on-year decline in box office revenue in 2024, but Huayi Brothers' decline was significantly steeper than the industry average [6] - The company's major films in 2025, such as "Towards the Sun" and "Lychee of Chang'an," performed poorly, shrinking its market share to less than 1% [6] - The company is overly reliant on traditional cinema models and has not adapted to new trends like streaming and short dramas, despite recent efforts to enter these areas [6] Recent Stock Performance - As of February 12, 2026, Huayi Brothers' stock price was 2.00 yuan, down 5.21% on that day, with a total market value of 5.549 billion yuan, having shrunk by over 90% since its peak in 2015 [7] - If the net assets for 2025 are negative, the company may face delisting risk warnings [7]