A bankruptcy announcement has once again brought the former "Sichuan's ex-richest person" into the spotlight.

Recently, the once A-share entertainment giant—Yinji Entertainment and Media Co., Ltd. (referred to as "Yinji Media") officially declared bankruptcy. It is worth mentioning that at its peak, Yinji Media's total market value once reached 49 billion yuan, and its actual controller Xiao Wenge's net worth once exceeded 20 billion yuan, making him "Sichuan's ex-richest person."

Yinji Media was once a well-known enterprise in China's film and television industry, having invested in and produced a series of popular films and TV works such as "Iron Man 3," "The Founding of a Republic," and "The Longest Day in Chang'an." It also established strategic partnerships with famous Hollywood film production companies.

Now, having fallen into bankruptcy, the capital games behind it have been exposed, attracting public attention and heated discussion.

Declaration of Bankruptcy

Recently, the once A-share entertainment giant—Yinji Entertainment and Media Co., Ltd. (referred to as "Yinji Media") officially declared bankruptcy.

On April 3, 2024, the Beijing First Intermediate People's Court issued Announcement No. (2022) Jing 01 Po 25 on the National Enterprise Bankruptcy Reorganization Case Information Network, ruling on April 3 to declare Yinji Media bankrupt.

Looking back, as early as January 2022, the Beijing First Intermediate People's Court had accepted the application for bankruptcy liquidation of Yinji Media by Hubei United Investment Capital Investment Development Co., Ltd. and appointed Haiwen Law Firm as the administrator of Yinji Media.

After creditor claims, in September 2022, the Beijing First Intermediate People's Court recognized that 16 creditors, including Industrial Bank Co., Ltd. Chengdu Branch, held ordinary claims of 1.767 billion yuan against Yinji Media.

The administrator submitted a report to the court stating that, after investigation, Yinji Media's bank account balance was only 371.07 yuan, and the disposal of its registered trademarks and long-term equity investments was difficult with low actual realization value. The debtor could not repay its due debts, and its assets were insufficient to repay all debts, with no possibility of reorganization or settlement. Therefore, the administrator applied to the court to declare Yinji Media bankrupt.

Currently, Yinji Media still has two defaulted bonds, "17 Yinji Entertainment CP001" and "17 Yinji Entertainment MTN001," with a total amount of 874 million yuan yet to be repaid.

In March of this year, the lead underwriter disclosed the latest default progress, stating that it would supervise the issuer and its administrator to regularly disclose subsequent default disposal work progress, actively participate in the issuer's bankruptcy liquidation, cooperate with the bankruptcy administrator in holding creditor meetings and subsequent bankruptcy work, and ensure the disclosure of bankruptcy progress.

Public information shows that Yinji Media went public through a backdoor listing in early 2015, becoming an international entertainment media group integrating brand communication and film and television entertainment. At its peak, Yinji Media's total market value once reached 49 billion yuan.

The actual controller of Yinji Media is Xiao Wenge, whose holdings in Yinji Media once exceeded 20 billion yuan, surpassing Liu Yonghao, chairman of New Hope Group, to become "Sichuan's A-share richest person." In 2016, Xiao Wenge ranked 103rd on the Hurun China Rich List with a fortune of 21.5 billion yuan.

The Former A-Share Film and Television Giant

Yinji Media was once a well-known enterprise in China's film and television industry, having invested in and produced a series of popular films and TV works such as "Iron Man 3," "The Founding of a Republic," and "The Longest Day in Chang'an." It also established strategic partnerships with famous Hollywood film production companies.

However, now having fallen into bankruptcy, the capital games behind it have been exposed, attracting public attention and heated discussion.

According to information, Yinji Media's predecessor was DMG Media, founded by Wu Bing and Dan Mintz in 1993, with main businesses including advertising production and brand marketing. In 1997, Xiao Wenge joined DMG Media and renamed it Yinji Media, beginning to venture into the film and television field.

Xiao Wenge had deep connections in the film and television circle. As early as 1993, he met Han Sanping, known as "Third Master" and "the godfather of Chinese entertainment." Leveraging Han Sanping's connections in the film industry, Xiao Wenge gradually befriended movie stars such as Ge You and Feng Xiaogang, laying the foundation for his future entry into the film and television industry.

However, the ambitious Xiao Wenge seemed unsatisfied with just the film and television circle. In 2014, through a series of capital operations, Yinji Media successfully went public through a backdoor listing.

With the power of capital, Yinji Media's scale grew larger and larger, once becoming a film and television empire that rivaled established giants like Huayi Brothers and Enlight Media.

During its glory days, Yinji Media collaborated with Hollywood studios to produce two Sino-US co-productions, "Looper" and "Iron Man 3," both of which were hugely successful. "Iron Man 3" in particular grossed 754 million yuan at the domestic box office, ranking second in that year's domestic box office chart.

In addition, Yinji Media also invested in and produced a series of popular films and TV dramas such as "The Founding of a Republic," "Go Lala Go!," "All Quiet in Peking," and "The Advisors Alliance." Yinji Media was also among the investors of the 2019 summer hit drama "The Longest Day in Chang'an."

At its peak, Yinji Media's annual revenue reached 2.506 billion yuan, with a net profit of 731 million yuan.

Sudden Collapse

One moment, the building rises; the next, it collapses.

Since 2018, Yinji Media suddenly "bombed," with its performance suffering a Waterloo.

In 2018, the listed company recorded only 362 million yuan in revenue, a year-on-year plunge of 83.44%; its net profit attributable to the parent company even suffered a huge loss of 1.786 billion yuan.

The sudden "bomb" also raised doubts about the authenticity of Yinji Media's financial data. Zhongxi Certified Public Accountants issued an audit report with a disclaimer of opinion on the 2018 financial statements.

This directly led to Yinji Media being placed under delisting risk warning, with its stock abbreviation changed to *ST Yinji.

After that, Yinji Media plummeted, facing a series of difficulties such as debt crisis, frozen equity, executive departures, and huge losses.

Shockingly, just before Yinji Media's collapse, Xiao Wenge accurately made large-scale reductions and cash-outs.

In January 2018, Xiao Wenge transferred 107 million shares of Yinji Media to Anxin Trust at a transfer price of 12.75 yuan per share, cashing out 1.36 billion yuan;

In May of that year, Xiao Wenge transferred 81.42 million shares and Yinji Huacheng transferred 7.08 million shares at an average price of 11.8 yuan per share, cashing out another 1.044 billion yuan;

In addition, Xiao Wenge also obtained 2.046 billion yuan in financing through equity pledges.

According to incomplete statistics, Xiao Wenge cashed out a total of 4.45 billion yuan from the listed company.

In November 2019, Yinji Media's stock was delisted because its closing price was below the face value of 1 yuan for 20 consecutive trading days.

Currently, Xiao Wenge's whereabouts are unknown, but rumors about him continue. Some say he lost billions of dollars in gambling; others say he did not gamble but has fled abroad.

As of now, this once super-rich person with a net worth of over 20 billion yuan has been listed as a dishonest 被执行人 due to multiple unpaid debts, commonly known as a "deadbeat."