China Media Capital to invest $836M, take control of struggling ST Huayi Brothers
On September 16, ST Huayi (formerly Huayi Brothers) confirmed China Media Capital (CMC) as its industrial investor in a pre-restructuring deal. CMC will invest approximately RMB 836 million to acquire about 896.2 million new shares at RMB 0.93 per share, taking a 17% stake and becoming the controlling shareholder. The restructuring plan, targeting completion by December 31, 2026, requires court approval. Huayi Brothers, once valued at over RMB 80 billion, now has a market cap of RMB 5.52 billion after years of losses.
Editorial responsibility
- No named human review is recorded for this page.
- Reports are grouped by semantic similarity and deterministic rules. Language models may assist titles, summaries, translation and cross-source analysis; the page reads the event directly, while its address stays stable when the title changes.
- Summary covers the current reports
Cross-source coverage
Reporting timeline
Li Ruigang's CMC Plans $117M Investment to Take Control of Huayi Brothers
Huayi Brothers, once known as 'China's first film and entertainment stock,' faces a potential change of control as it enters pre-restructuring. On September 16, ST Huayi announced that CMC (China Media Capital), led by media mogul Li Ruigang, has been selected as the restructuring industry investor. CMC plans to invest approximately 836 million yuan ($117 million) to acquire about 17% of the restructured shares, becoming the controlling shareholder. Current controlling shareholders Wang Zhongjun and Wang Zhonglei, who together hold 5.41% of shares after recent judicial auctions, would see their stakes diluted. Huayi Brothers has struggled with years of losses and debt, selling assets including the Dongyang Meila studio acquired from director Feng Xiaogang. CMC's portfolio includes Daylight Entertainment, CMC Pictures, UME Cinemas, and Oriental DreamWorks. Analyst Xiang Kai noted the brand value and audience recognition of Huayi Brothers could benefit CMC, but warned that revitalizing the company requires substantial strategic changes and continued investment. The restructuring plan aims for completion by December 31, 2026, pending court approval.
Read sourceFormer Shanghai TV President Li Ruigang to Acquire 17% of Huayi Brothers for 836 Million Yuan
Huayi Brothers (ST Huayi, 300027.SZ), once China's leading film and television stock, has selected China Media Capital (CMC), founded by former Shanghai Television Station president Li Ruigang, as its industrial investor in a pre-restructuring process. Under the agreement signed on September 16, Huayi Brothers will convert capital reserves into shares at a ratio of 9 new shares for every 10 existing shares. CMC will acquire approximately 896.2 million converted shares at RMB 0.9333 per share, investing about RMB 836 million for roughly 17% of the post-restructuring total share capital, making CMC the controlling shareholder. Supporting financial investors will receive about 1.128 billion converted shares, with the remainder used for debt settlement. The deal faces a procedural hurdle: Huayi Brothers is still in pre-restructuring and has not yet received a court ruling accepting the case. All parties aim to complete the restructuring plan by December 31, 2026. Huayi Brothers has faced mounting financial pressure from cross-sector investments and industry cyclical fluctuations, leading to overdue debts, lawsuits, and account freezes. In April 2025, a creditor applied for pre-restructuring, and the company's stock was designated ST. The company reported a net loss of RMB 334 million in 2025 and continued losses in the first half of 2026.
Read sourceCMC Live to Invest 836 Million Yuan, Become Controlling Shareholder of ST Huayi
ST Huayi (300027.SZ), formerly known as Huayi Brothers, has reached a key milestone in its pre-restructuring process. On September 16, the company announced it had confirmed China Media Capital (CMC) as the industrial investor. CMC will acquire 896.2 million converted shares at RMB 0.93 per share, investing approximately RMB 836 million, becoming the controlling shareholder with about 17% of post-restructuring share capital. The restructuring plan aims for completion by December 31, 2026. CMC, founded by Li Ruigang, is a major media and entertainment group including TVB Hong Kong, Shaw Brothers Pictures, and Oriental DreamWorks. Huayi Brothers, once known as the 'first film and television stock' in A-shares, has recorded losses for eight consecutive years and faces debt crisis. The company's semi-annual report for 2026 showed total operating revenue of RMB 85.4477 million, down 44.10% year-on-year, with net profit negative RMB 36.3851 million. Controlling shareholders Wang Zhongjun and Wang Zhonglei have seen their shares auctioned off, with their combined equity stake now at 7.86%.
Read sourceShow 2 older updatesHide older updates
CMC to Become ST Huayi's Controlling Shareholder After Restructuring Deal
On September 16, ST Huayi (SZ300027) announced significant progress in its restructuring, confirming China Media Capital (CMC) as the industrial investor. A formal Restructuring Investment Agreement has been signed. If fully implemented, CMC will become the controlling shareholder and new actual controller. CMC will receive 896 million shares at RMB 0.9333 per share, representing about 17% of post-restructuring share capital, with a 36-month lock-up. Financial investors will receive 1.128 billion shares (21.4%). The restructuring is still in pre-restructuring stage; court acceptance, creditor approval, and court ruling are required. CMC's revenue has declined over three years to RMB 3.178 billion in 2025, with net profit of RMB 297 million. The announcement did not disclose specific business integration plans. Risks include potential agreement rescission, restructuring failure, bankruptcy, and delisting.
Read sourceChina Media Capital to Invest $836M, Take Control of ST Huayi Brothers
ST Huayi (formerly Huayi Brothers) announced on September 16 that it has confirmed China Media Capital (CMC) as the industrial investor for its pre-restructuring case and signed a restructuring investment agreement. CMC will acquire approximately 896.2 million newly issued shares at about RMB 0.93 per share, investing roughly RMB 836 million to take a 17% stake and gain control of the company. The restructuring plan involves issuing 2.497 billion new shares, with CMC's shares locked for 36 months. CMC will nominate 4 of 6 non-independent directors and all 3 independent directors. ST Huayi's registered address will remain in Hengdian. Industry insider Zhu Yuqing called the deal a 'multi-win' for the two companies and the film industry, noting CMC's international perspective benefits ST Huayi's future. CMC, which owns assets including TVB and Shaw Brothers, will leverage its resources to improve ST Huayi's profitability and may inject synergistic assets. Huayi Brothers, once valued at over RMB 80 billion, now has a market cap of RMB 5.52 billion after reporting a net loss of RMB 330 million in 2025.