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| Key Backers Withdraw as Zhao Lusi Dispute Sparks Shake-Up at Galaxy Cool Entertainment |
The storm surrounding actress Zhao Lusi’s ongoing contract conflict appears to be hitting Galaxy Cool Entertainment far harder than expected. Fresh corporate data released on 14 November through Tianyancha shows that several notable investment firms have quietly backed out of the company, triggering a reshuffle in its internal structure and raising new questions about its stability.
According to the filing, two of the company’s sizeable investors — Shanghai Yunfeng Xincheng Investment Centre (Limited Partnership) and Beijing Chuangshi Xinhe Technology Co., Ltd. — have formally withdrawn from the shareholder list. Both originally held 12.2727 per cent stakes, with committed contributions exceeding 4.61 million yuan per entity.
Three smaller investors from Gongqingcheng — Mingguan Yangliu, Mingguan Palm, and Mingguan Songbai — have also exited, each holding between 0.7 and 1.7 per cent.
While individually small, the collective withdrawal paints a consistent picture: investor confidence has clearly taken a hit.
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Founded in 2015, Galaxy Cool Entertainment is now left with just three shareholders, though their exact ownership proportions remain undisclosed.
The company continues to operate under the leadership of Wu Xiaozhen, who still serves as its legal representative.
One of the remaining shareholders, Beijing Dayu Happy Culture Media, is wholly owned by Orca Cultural Entertainment, previously tied to the wider Alibaba cultural ecosystem.
Notably, Yunfeng Fund — one of the departing investors — is also widely known for its close connections within Alibaba’s network, making its withdrawal particularly eye-catching.
Trigger Point: Zhao Lusi’s Public Statement
The corporate turbulence closely follows Zhao Lusi’s bold Weibo post on 2 August, where she publicly disclosed her lengthy contract dispute with Galaxy Cool Entertainment.
In her statement, Zhao Lusi revealed she had four years left on a renewed agreement signed two years prior.
She further explained that her decision to reduce her workload due to health reasons led to cancelled endorsements and drama commitments.
Although she said the agency had promised to absorb the financial fallout, she ultimately had to cover the compensation herself.
Zhao Lusi went on to claim that 2.05 million yuan was transferred out of her studio’s account without authorisation, alleging that her finance staff were pressured into signing revenue-related paperwork.
She also noted that the company refused to return operational control of her studio, a situation she said had caused significant staff departures and ongoing management issues.
The following day, Galaxy Cool Entertainment responded with a strongly worded statement, saying it was “shocked” by the accusations.
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The agency insisted it had fulfilled all contractual responsibilities, denied any improper conduct, and urged Zhao Lusi to avoid sharing material that might mislead the public.
Despite this, the dispute quickly escalated across social platforms, drawing intense scrutiny from fans, media analysts, and industry insiders.
The tension around the actor-agency relationship has yet to ease, and the new investor withdrawals have only added fuel to the ongoing speculation.
Background: A History of Ties with Alibaba and a Failed Acquisition Deal
Galaxy Cool Entertainment isn’t an unfamiliar name in the Chinese entertainment landscape.
It rose to mainstream attention thanks to the successful variety show Mars Intelligence Agency, fronted by Wang Han.
The programme’s early seasons amassed more than 900 million views, attracting investment support from Youku and other Alibaba-affiliated entities.
Back in 2020, long before the current conflict, Alibaba Pictures had planned a major acquisition — a 60 per cent stake in Galaxy Cool for 400 million yuan.
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The deal was expected to push Galaxy Cool into a new phase of growth, but the company ultimately opted to develop independently.
By October of that year, both sides terminated the acquisition agreement and all related documentation.
Fast forward to now, with multiple investors pulling out in the wake of Zhao Lusi’s contract dispute, the company’s once-ambitious development trajectory is once again under scrutiny.
Industry watchers are now keeping a close eye on how Galaxy Cool Entertainment intends to stabilise its operations, rebuild trust with the market, and navigate the fallout from one of the most talked-about agency disputes of the year.
Source: Weibo/Sohu