 |
| Galaxy Cool Entertainment Faces Scrutiny Amid Contract Row and Shareholder Exits |
Rumours of Galaxy Cool Entertainment collapsing under financial strain had industry watchers in a frenzy on 14 November, with social media convinced the agency was moments from shutting its doors. By the afternoon, the company had already stepped in with an official statement insisting everything remains stable, business is running normally, and the recent shareholder reshuffle is nothing more than routine corporate housekeeping.
It also warned that anyone circulating false claims would be hearing from its legal team. But public interest quickly shifted to Tianyancha records showing several major investors pulling out. Two of the biggest, Shanghai Yunfeng Xincheng Investment Centre (Limited Partnership) and Beijing Chuangshi Xinhe Technology Co., Ltd.—both previously holding over twelve per cent—were among the first to withdraw.
Three smaller Gongqingcheng-based investors, Mingguan Yangliu, Mingguan Palm and Mingguan Songbai, also exited despite their minor stakes of under two per cent.
With that, Galaxy Cool Entertainment is down to three remaining shareholders.
Wu Xiaozhen is still serving as the company’s legal representative, while one of the last shareholders—Beijing Dayu Happy Culture Media Co., Ltd.—is fully owned by Orca Cultural Entertainment, an entity once operating under the Alibaba Cultural Entertainment umbrella.
Several of the departing investors were also known to have ties with Alibaba-related investment networks, adding fuel to the ongoing speculation.
All this comes as the public remains glued to the ongoing conflict between Zhao Lusi and Galaxy Cool Entertainment, which first erupted in August.
In her personal statement on Weibo, Zhao Lusi revealed that her contract extension still had four years left.
She said she had cancelled work and endorsements for health reasons, yet ended up paying penalties from her own pocket, including a 2.05-million-yuan deduction from her studio’s account without consent.
According to her, financial staff from her studio were pressured into signing revenue documents, and she feared she would be held accountable for even more compensation.
She also claimed the company refused to return operational control of her studio, prompting many staff to resign.
 |
Galaxy Cool Entertainment fired back on 3 August, saying it was “shocked” by Zhao Lusi’s claims.
It stressed that it had always fulfilled its legal duties, kept communication open, and worked to minimise any negative impact.
The agency also urged the actress not to release statements that could lead to public misunderstanding.
That controversy snowballed as whispers of financial trouble and shareholder exits began circulating at the same time.
The overlap placed Galaxy Cool under intense scrutiny, leaving the industry wondering what direction the company will take next.
On 8 November, the situation shifted again.
Zhao Lusi Studio shared a lengthy message on Weibo, calling it a “new beginning”.
Not long after, netizens noticed that the label “Galaxy Cool Entertainment (银河酷娱)” had been removed from the studio’s profile.
Since Weibo labels show MCN affiliation, the removal indicated that Zhao Lusi was no longer under Galaxy Cool’s management.
The studio hasn’t confirmed whether she has joined a new agency, though countless rumours suggest she is already in talks with several big players.
After announcing that her studio is fully back in action, Zhao Lusi’s former agency found itself weathering a fresh wave of speculation.
Several outlets reported that five previously listed shareholders had recently withdrawn and that some board members were no longer present.
Galaxy Cool responded with yet another urgent statement denying all claims of internal collapse, stressing once again that its operations remain normal and that equity changes are standard procedure.
Meanwhile, Zhao Lusi seems to have moved firmly onto her next chapter.
Reports suggest her new agency is Hujing Digital Media and Entertainment Group, a subsidiary of Alibaba.
The move reunites her with Li Wei, the former CEO of Galaxy Cool and the figure widely credited with discovering her early in her career.
Li Wei left Galaxy Cool in 2023 and is now working with Zhao Lusi once more.
He even oversaw her recent birthday event, during which the actress thanked him emotionally for supporting her as she rebuilt her footing in the industry.
With shareholder exits, legal threats, and one of China’s most popular actresses entering a new era, Galaxy Cool Entertainment is facing one of its most turbulent moments yet—while the wider industry watches closely to see what will come next.
Source: Sohu/Weibo