Core Viewpoint - The article discusses the recent judicial auction of shares held by the controlling shareholder of Huayi Brothers, Wang Zhongjun, and its implications for the company's ownership structure and operations [4][6][7]. Summary by Sections Judicial Auction Details - On December 31, 2025, Huayi Brothers announced the completion of a judicial auction of 154 million shares held by Wang Zhongjun, representing 5.55% of the total share capital [4][6]. - The auction was conducted by the Beijing Third Intermediate People's Court from December 29 to December 30, 2025, on the JD Network Judicial Auction platform [6]. - The shares were sold at an average price between 1.90 and 1.91 yuan per share, with the highest bidder, Sun Kai, acquiring 84 million shares at 1.90 yuan, totaling approximately 159.6 million yuan [6]. Shareholding Changes - Following the auction, Wang Zhongjun and his co-acting party, Wang Zhonglei, hold a combined total of 383 million shares, accounting for 13.81% of the company [7]. - The auctioned shares represent 48.54% of Wang Zhongjun's holdings and 5.55% of Huayi Brothers' total shares [6][7]. - The company stated that the auction would not change the actual control or the largest shareholder status, and business operations would continue normally [7]. Risks and Governance - The company acknowledged a potential risk of unstable control due to the reduced shareholding of the largest shareholder, but emphasized that the second-largest shareholder does not hold a board position, minimizing impact on decision-making [7]. - As of the announcement date, there were no instances of non-operational fund occupation or illegal guarantees by the controlling shareholders that would harm the company's interests [8]. Management Changes - The article also mentions the resignation of key technical personnel, Zhou Zijian, from Huayi Brothers' subsidiary, New Shengtang Film Co., Ltd., due to personal reasons, but assures that this will not affect operations [8]. - New Shengtang plans to sign a new cooperation agreement with Zhou, granting them first-look rights on film projects he controls [8][9].