(Yicai Global) June 8 -- The chairman of Huayi Brothers Media has sold his HKD220 million (USD28.4 million) Hong Kong house to stay buoyant after the struggling entertainment company rejected an investor that was willing to put down a nearly similar sum.

Founder Wang Zhongjun has found a buyer for his 348-square meter residential property in the special administrate region, pocketing about a 66 percent return on his investment made in 2010, local newspaper Wen Wei Po reported on June 5.

Wang didn't disclose the exact reason for the sale but he said earlier that he would sell everything to save the Beijing-based company that he established with his brother.

Huayi Brothers lost CNY143 million (USD20.2 million) in the first quarter, according to its earnings report published on April 28. If this year turns out unprofitable, the company risks a delisting from the Shenzhen Stock Exchange. Its loss almost quadrupled to CNY4 billion (USD564.8 million) last year.

On April 28, Huayi Brothers said that it will raise nearly CNY2.3 billion in a private placement of new shares with investors such as Alibaba Pictures Group and Tencent Computer System.

But not everyone could join. On May 12, the firm's stockholder meeting rejected one of the investors, Sunshine Life Insurance, because the pair had not agreed on the specific content of their cooperation. The insurer would have bought less than 2.5 percent of the entertainment company's equity. Those who voted 'no' included Wang Zhongjun's brother Wang Zhonglei who is also vice chairman.

Huayi Brothers's stock price [SHE: 300027] slid by 1.14 percent to CNY4.32 (US 61 cents) in the afternoon.

Editor: Emmi Laine