Securities Code: 300027
Securities Abbreviation: ST Huayi
Announcement No.: 2026-049
Huayi Brothers Media Corporation Limited
Announcement Regarding Notice of Application for Restructuring and Pre-Restructuring of Wholly-Owned Subsidiary by Creditor
The Company and the Board of Directors guarantee that the information disclosed is true, accurate, and complete, and that there are no false records, misleading statements, or material omissions.
Special Notes:
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On August 7, 2026, Huayi Brothers Media Corporation Limited (hereinafter referred to as the "Company") received a "Notice of Intent" from its wholly-owned subsidiary, Huayi Brothers Film Co., Ltd. (hereinafter referred to as "Huayi Film"). The applicant, based on Huayi Film's inability to repay due debts and insufficient assets to cover all debts, but possessing restructuring value, has applied to the Jinhua Intermediate People's Court (hereinafter referred to as "Jinhua Court" or "Court") for pre-restructuring and restructuring proceedings for Huayi Film, and has applied for joint hearing of the pre-restructuring and restructuring cases with the Company.
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The restructuring procedure differs from bankruptcy liquidation. The purpose of restructuring is to rescue the company undergoing restructuring, preserve its legal person status, and restore its sustained profitability. This is achieved by readjusting its assets and liabilities, reorganizing its operations, and other measures to help the company overcome its financial and operational difficulties.
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As of the date of this announcement, Huayi Film has not yet received any documents from the Jinhua Court accepting the pre-restructuring application. There is significant uncertainty as to whether the applicant's pre-restructuring application will be accepted by the court, and whether Huayi Film will subsequently enter pre-restructuring or restructuring proceedings. Regardless of whether Huayi Film enters pre-restructuring or restructuring proceedings, the Company will continue to urge Huayi Film to manage its daily production and operations effectively. If Huayi Film subsequently receives documents from the Jinhua Court accepting the pre-restructuring or restructuring application, the Company will promptly fulfill its information disclosure obligations.
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The Company is currently in the pre-restructuring phase, and there is significant uncertainty as to whether it will enter restructuring proceedings. If the court rules to accept the Company's restructuring application, the Company will cooperate with the court and the administrator to carry out relevant restructuring work and fulfill its legal obligations as a debtor. According to the "Shenzhen Stock Exchange ChiNext Stock Listing Rules," if the court rules to accept the Company's restructuring application, the Shenzhen Stock Exchange will implement a delisting risk warning on the Company's stock. If the Company subsequently enters restructuring proceedings and the restructuring is successfully completed, it will help improve the Company's operating and financial condition, enhance its operating capacity, and optimize its asset-liability structure. If the restructuring fails, the Company will face the risk of being declared bankrupt. If the Company is declared bankrupt, according to the "Shenzhen Stock Exchange ChiNext Stock Listing Rules," the Company's stock will face the risk of being delisted. Investors are advised to pay attention to investment risks.
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Regardless of whether the Company and its wholly-owned subsidiary enter restructuring proceedings, the Company will actively manage its daily production and operations on the existing basis. If it subsequently receives documents from the court accepting the restructuring application, the Company will promptly fulfill its information disclosure obligations.
I. Overview of Wholly-Owned Subsidiary Applying for Pre-Restructuring by Creditor