Allen Ren bids farewell to his former employer, Huanrui Century faces a new round of crisis
With Allen Ren's departure, the battle for the top male artist at Huace Film & TV has finally come to an end.
On June 23, Allen Ren announced via Weibo that he was leaving his agency Huace Film & TV as their contract expired. His former agency sent their blessings, making his exit much more amicable compared to the messy contract disputes with Ju Jingyi.
As one of Huace's flagship artists, Allen Ren was long considered the company's top male star. However, in recent years, Cheng Yi's standout performances in several hit dramas sparked debates about who truly held the "Huace's top male artist" title.
With Allen's departure, Cheng Yi now solidifies his position as Huace's top male artist. While Huace isn't left without talent, losing a core artist is undoubtedly a significant blow—especially for a company where talent management is a key revenue stream, potentially heralding a new crisis.
Allen Ren's Exit: What's Next for Huace's Talent Management Business?
Objectively speaking, in terms of achievements and influence, Allen Ren was Huace's undisputed top male artist.
His partnership with Huace began with the 2016 drama "Noble Aspirations," and their collaboration proved highly synergistic. Huace specializes in period dramas, and Allen, dubbed the "go-to actor for historical roles," rose to fame through their joint projects.
Huace's 2017 production "The Glory of Tang Dynasty" catapulted the then-unknown Allen to stardom. Despite subsequent controversies—public relationships, marriage, and parenthood—he rebounded with hits like "Under the Power" and "One and Only," cementing his status as a top-tier period drama actor.
Huace's financial reports reveal Allen's impact: in 2018, three of the top five revenue-generating dramas featured Allen. As core artists like Li Yifeng, Yang Zi, and Qin Junjie left, and the roster shrank from nearly 50 to under 20, Allen became a pillar of Huace.
Huace's talent management strategy began in 2013 with the "Big Producer Plan," partnering with stars like Yang Mi, Liu Kaiwei, and Tiffany Tang to develop projects, adopting a "star-driven, producer-centric" model.
Collaborations with A-list stars boosted Huace's influence. After Li Yifeyn's breakout in "Swords of Legends," Yang Yang and Yang Zi joined, making talent management a core business.
This focus on star power shaped Huace's productions: by dominating period and fantasy dramas, they achieved "using shows to elevate artists." Allen, Yuan Bingyan, and Yang Zi all rose through Huace's in-house productions.
Once established, these artists sought external projects—Allen with "One and Only" (Huace), Yang Zi with "Ashes of Love" (Perfect World), Cheng Yi with "The 底线" (Hunan TV)—creating a feedback loop for Huace's talent business.
In 2020, talent management revenue surpassed film/TV for the first time (52.57% of total income). But post-2020, star departures—especially core artists—severely impacted this segment.
After Allen's exit, Cheng Yi remains Huace's only A-lister. The loss of star power signals a crisis for its talent business.
The Crisis Beneath Core Business Synergy
A glaring issue: talent-dependent studios like Huace, Jaywalk, and Yuehua inherently lack risk resilience.
Huace's Q1 2024 revenue grew 32.41% YoY to ¥71.85M without new releases, driven by talent income and IP sales.
After Allen's announcement, Huace's stock fell 4.74% on June 24 to ¥2.41/share. The market reaction reflects not just talent losses but also projected declines in film/TV revenue.
Compared to peers, Huace's "star reliance" is milder—its shows and artists mutually thrive.
An early adopter of IP adaptation, Huace rode the streaming wave to success. In 2014, it acquired "The Lost Tomb" rights for ¥5M, casting Yang Yang and Li Yifeng—blending IP and stars to pioneer paid streaming. Later hits like "The Glory of Tang Dynasty," "Under the Power," and "Love and Redemption" followed this formula.
Huace became a period-drama hitmaker by leveraging its star power to meet young audiences' demand for IP adaptations, synergizing talent and production.
But synergy cuts both ways: one segment's decline drags the other down. As stars leave, Huace's dimming talent business hurts its film/TV output—and vice versa.
With Yang Zi gone, Huace lacks a top female artist (Yuan Bingyan derailed by scandals; Zhang Yuxi lacks hits). Meanwhile, its production edge wanes as period/fantasy dramas face saturation and rising viewer standards. Recent successes like "Mysterious Lotus Casebook" and "Immortal Samsara" pale next to early hits like "Swords of Legends."
Now, neither "star-driven shows" nor "show-driven stars" work as before. Huace's 2023 revenue plunged 43.57% to ¥335.8M, with a ¥397M net loss. Q1 2024's growth was overshadowed by Allen's exit—the crisis deepens.
Huace's Path to Self-Rescue
With talent losses inevitable, Huace's recovery hinges on diversifying revenue.
1. Doubling down on IP: Amid industry IP wars, Huace launched a "Master IP Co-Creation Plan" in 2023, signing 20+ authors (e.g., "Naked Wedding" writer Tang Xintian) to control IP sourcing and lifecycle management.
2. Reducing star reliance: Shifting from signing stars to building a talent pipeline ("select-train-retain") to professionalize artist development.
Huace now promotes newcomers like Liu Mengrui, cast alongside Cheng Yi in Tencent/iQiyi's "Journey to the Mountains and Seas."
3. Exploring new formats: Per 2023 reports, Huace formed teams for short-form and interactive dramas (e.g., investing in "Love Is All Around 2") and AIGC initiatives.
However, these efforts haven't yet yielded breakthroughs.
Newcomers lack visibility—Huace can't replicate Allen's overnight success, requiring gradual buildup. Meanwhile, short-form drama competition intensifies amid stricter regulation, with Huace yet to produce a hit.
Thus, Huace still relies on film/TV and talent management. With both segments struggling, its shelved projects—Cheng Yi's 2019 spy drama "Deep Dive," Zhang Yuxi's 2021 "Eternal Glory," and this April's "The Legend of Fragrance"—signal further trouble ahead.
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