(Yicai Global) May 27 -- Trading in Zhejiang Talent Television & Film’s shares has been suspended before control is handed to a unit of state-owned Zhejiang Radio & Television Group in a last ditch effort to revive the ailing production company’s fortunes and prevent a possible delisting.

Founder Wu Hongliang has transferred 5 percent of equity and 23.55 percent of voting rights to Zhejiang Yitong Digital Television Investment, a subsidiary of Zhejiang Radio and Television Group, Zhejiang Talent said yesterday.

Zhejiang Talent was once a successful costume drama producer closely tied to Chinese movie star Fan Bingbing. But when she became embroiled in a tax scandal in July 2018, the Zhejiang Talent-financed TV series she was in also stalled.

The firm had a loss of CNY26.93 million (USD3.8 million) in the first quarter, CNY127 million last year and CNY952 million in 2018. If it cannot turn a profit this year, Zhejiang Talent faces the risk of being delisted.

The company’s stock price [SHE:300426] jumped by as much as the daily exchange-imposed limit of 10 percent yesterday before closing 8.2 percent higher at CNY5.03 (USD0.70).

Wu has also transferred an additional 4.08 percent of equity to the State-owned Assets Supervision and Administration Department of Dongyang city, where the company is registered, leaving him with a 27.23 percent stake, the firm said. This follows an announcement earlier this month of the deal struck with the local state assets administrator.

Editor: Kim Taylor