Huayi Brothers Media Corporation(300027) (300027. SZ) announced on February 22 that Wang Zhongjun, one of the actual controllers of the company, plans to reduce the company’s shares by means of centralized bidding transaction by no more than 55.4901 million shares, that is, no more than 2% of the company’s total share capital.
The main business of Huayi Brothers Media Corporation(300027) is engaged in film production, distribution and derivative business; Production, distribution and derivative business of TV dramas; Artist brokerage services and related services.
According to the announcement, Wang Zhongjun is the actual controller and one of the controlling shareholders of the company, and is currently the chairman of the company. Wang Zhongjun plans to reduce his holdings of no more than 55.4901 million shares through centralized bidding transactions, that is, no more than 2% of the total share capital of the company. The reason why Wang Zhongjun intends to reduce his shares is the demand for personal funds. The funds obtained from the reduction are mainly used to repay the stock pledge financing, reduce the pledge risk and better ensure the stability of control. The source of this reduction is the shares of the company held before the initial public offering. The proposed reduction period is within six months after 15 trading days from the date of this announcement.
As of February 22, Wang Zhongjun and Wang Zhonglei jointly held 618 million shares of the company, accounting for 22.27% of the total share capital of the company. They are the actual controllers of the company. Wang Zhongjun and Wang Zhonglei are persons acting in concert. The total number of shares they reduce through centralized bidding in any continuous 90 natural days shall not exceed 1% of the total share capital of the company.
According to the announcement disclosed by Huayi Brothers Media Corporation(300027) on October 12, 2021, Wang Zhonglei, another actual controller of the company, plans to reduce the company’s shares by means of centralized bidding transaction to no more than 55585100 shares. Up to now, Wang Zhonglei’s above-mentioned share reduction plan is still in progress.
If the share reduction plan is implemented to the maximum extent, the total shareholding ratio of Wang Zhongjun and Wang Zhonglei will be reduced to 20.27%, and they will still be the actual controllers of the company, which will not change the control right of the company and affect the sustainable operation of the company.
On February 22, Huayi Brothers Media Corporation(300027) closed at 3.42 yuan / share, down 3.93%.
