Huayi Brothers Media says share-pledging not a sell-off

2018-06-12 08:37:33 GMT2018-06-12 16:37:33(Beijing Time) Sina English

(ECNS) - Huayi Brothers Media Corporation, an integrated entertainment company in China, said it may bring lawsuits against “malicious rumormongers” over the company’s recent pledging of shares.

The company, founded by brothers Wang Zhongjun and Wang Zhonglei in Beijing in 1994, has been criticized online after the brothers pledged almost all their shares as financing collateral.

According to an announcement by the company, Wang Zhongjun holds 612,229,855 company shares or about 22 percent of the total, and had cumulatively pledged 55,089,999 shares or about 20 percent as of March 31.

Wang Zhonglei holds a total of 171,681,986 shares or about six percent of the company, and had pledged a total of 142,799,999 shares or about five percent as of March 31.

In response to the online criticism, the company said the share pledging was not a sell-off, and it did not indicate that the founders were pessimistic about the future of Huayi, nor would it affect the company's normal operations.

The share pledging was to "meet personal financing needs, mainly for use in other projects and equity investment, and inject new vitality to lead industry growth,” the statement said.

It also said "the two brothers have always paid attention to the innovation and development of various industries, and hope that these areas can be better linked with the listed company and promote its overall development.”

Huayi Brothers is principally engaged in the production, release and derivative businesses of movies and television dramas. The company operates its business in domestic and overseas markets.

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