Huayi Brothers defaulted on more than 56 million yuan in debt, and 34 bank accounts have been frozen.

(Source: V View Financial Reports)

Huayi Brothers announced after market close on April 1st that the company’s overdue debts with banks and other financial institutions totaled 56.4M yuan, and more than 30 bank accounts have been frozen.

The announcement stated that, affected by the economic situation, due to some receivables not being received as scheduled, there is a temporary shortage of liquidity, leading to the company being unable to repay certain debts on time.

Specifically, according to the company’s relevant departments’ statistics and verification, as of April 1, 2026, the company’s overdue debts with banks and other financial institutions totaled 56.4M yuan, exceeding 10% of the company’s audited net assets in 2024. 34 of the company’s bank accounts have been frozen.

Announcement screenshot

Huayi Brothers stated that the freezing of some of the company’s bank account funds will not have a significant impact on the company’s daily operations. The freezing of bank accounts does not involve the circumstances described in Article 9.4, Item 2 of the “Shenzhen Stock Exchange Growth Enterprise Market Stock Listing Rules,” which states “Main bank accounts of the company are frozen.”

The announcement revealed that, based on respecting and fully considering the interests of all parties, including the company’s legal interests, the company is actively negotiating with the above financial institutions for renewal of credit. Going forward, the company will continue to optimize existing resource allocation and asset structure, gradually exit and dispose of assets with low integration with the main business and weak synergy with the company’s industrial chain, improve asset allocation efficiency, and use the proceeds from transfers to better promote the development of the company’s main business. Additionally, the company maintains friendly cooperative relationships with banks and other financial institutions, continuing to orderly reduce existing interest-bearing liabilities while also undertaking relevant financing measures and renewal of credit. The company’s film and television project investments and productions are also progressing normally.

At the same time, Huayi Brothers stated that due to overdue debts, the company may face costs such as related breach penalties, and overdue debts may also lead to risks of litigation and arbitration. The company will actively promote relevant legal procedures to seek the earliest possible解除账户冻结, and legally safeguard the legitimate rights and interests of the company and shareholders.

It is worth noting that Huayi Brothers’ performance has been under continuous pressure, with the company experiencing net losses since 2018.

iFinD screenshot from Tonghuashun

According to the 2025 annual performance forecast, the company expects a net loss attributable to shareholders of listed companies between 289 million yuan and 407 million yuan in 2025, compared to a loss of 285 million yuan in 2024.

Meanwhile, the company estimates that the net assets at the end of 2025 will be between -94 million yuan and +63 million yuan (unaudited). If the audited net assets at the end of 2025 are negative, according to Article 10.3.1 of the “Shenzhen Stock Exchange Growth Enterprise Market Stock Listing Rules,” the company’s stock will be subject to delisting risk warning.

In the secondary market, Huayi Brothers closed at 1.62 yuan on April 1st, up 0.62%, with a current total market value of 4.5B yuan.

The viewpoints in the text are for reference only and do not constitute investment advice. Investment involves risks; please proceed with caution.

Cover and lead-in image source: AI-generated graphics