Home Hollywood News Wang Zhongjun Steps Down as Chairman of Huayi Tencent Entertainment

Wang Zhongjun Steps Down as Chairman of Huayi Tencent Entertainment

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Wang Zhongjun Steps Down as Chairman of Huayi Tencent Entertainment
--FILE--Wang Zhongjun, Chairman and CEO of Huayi Brothers Media Corp., delivers a speech at a lecture in Chengdu city, southwest China's Sichuan province, 20 March 2014. A major Chinese film studio that has been in the spotlight following recent allegations of questionable contracts in the industry is under further scrutiny with revelations that the two co-founders have pledged most of the shares they own as financing collateral. Shenzhen-listed Huayi Brothers Media Corp. said in an exchange filing last week that its founders, Chairman Wang Zhongjun and his brother, President Wang Zhonglei, have pledged a total 694 million shares, or about 25% of the company's total. The Wang brothers held a combined 28.2% stake in the company as of March 31. (Imaginechina via AP Images)
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The Hong-Kong-based holding company has been used by Huayi Brothers, Tencent, and other investors to make offshore investments in international films, such as Russo Brothers ‘Cherry’ and Roland Emerich’s upcoming ‘Moonfall.’ Chinese film Mogul Wang Zhongjun, the co-founder of Huayi Brothers Media, has stepped down as chairman of the holding company Huayi Tencent Entertainment.

Founded in 2016, the company, which is listed on the Hong Kong Stock Exchange, has been used as a vehicle by Huayi Brothers, Tencent, and its other investors to co-finance international films and listed companies outside of China. Buy bets. The joint venture was established when its backers took over a Hong Kong-listed shell company formerly a retirement home developer in Hong Kong.

Huayi Tencent’s recent investments include the South Korean sci-fi film Space Sweeper, the Russo brothers’ crime dram a Cherry, and Roland Emerich’s upcoming sci-fi action film Moonfall. The firm also owns a 31 percent stake in South Korean TV drama producer HB Entertainment. Huayi Tencent said in a statement on Friday that Wang was resigning “because he needed to devote more time to his other business functions,” and that his exit would take effect on March 30.

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Huayi Brothers Media, which Wang founded with his younger brother Wang Zhonglei in the 1990s, was previously the largest stakeholder in Huayi Tencent, but the Beijing-based parent company held 13.17 percent of its shares last November only to sell its stock Dropped to 5 percent.

 

The sale was part of the brothers’ longtime return to the entertainment empire, which was battered by bad press in 2018 following a tax evasion scandal that plagued the sugar industry. The company received a $ 100 million lifeline in 2019 from Jack Ma’s Alibaba and began to see its fortunes last year with the $ 460 million success of its WWII tampole The Eight Hundred.

Wang’s exit from the Hong Kong-listed holding firm comes at a time of radically decreasing investment by China’s major entertainment companies. After the gold boom five years ago, when Chinese companies moved from Hollywood slates to the new U.S.

Production entities (Huayi co-financed an entire slate at STX Entertainment and bought a sizable stake in Rosso’s production venture Agbo), investment by Chinese regulators to halt in 2017 amid official discouragement of such a bargain Between the plain, and its decline, there was further decline. Diplomatic relations between Washington and Beijing.

Yuen Hoi Po, the current CEO of Huayi Tencent, will assume Wang’s day-to-day management responsibilities. “A new chairman will be elected as soon as possible,” a firm said in a statement. UN is currently the largest shareholder of Huayi Tencent with a 17.8 percent stake.

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