Due to the similarity of business, the storm was once affixed by the outside world 'smaller version of music as' label. Today, Levision is due to the capital crisis is 'today's yellow flower', LeTV also has a huge loss, facing the risk of delisting. But, embarrassingly, Even if it is no longer brilliant, as of May 25, LeTV's total market value is still 16.1 billion yuan, while the Storm Group's market value is not even half as LeTV, only 7.075 billion yuan.
The capital market did not look at the storm because of LeTV's 'collapse'. In the product market, Storm TV also planned not to erode the market left by LeTV after its exit.
In April of this year, the Stormwind Group's 2017 financial report disclosed that last year, smart TV sales were only 840,000 units, which was lower than the previous sales target of 2 million units for storm executives, and only slightly increased by 40,000 units compared to 2016 sales.
In mid-2017, when the storm released new smart TV products, the storm had announced that the smart TV sales in 2017 would exceed 2 million units, exceed 4 million units in 2018, and achieve a balance of revenue by the end of 2018.
In the planning of Fengfeng Group’s founder and chairman Feng Xin, cumulative sales of storm TVs have reached 5 million units, which can basically cover costs, and the remaining sales growth will turn into profits.
On May 23rd, Feng Xin was transformed into a 'professional' product manager and released a new endorsement for the storm. Before that, Feng Xin also attended the storm TV product launch conference several times, serving as its product platform.
'I want to make a product for myself and endorse it. 'Feng Xin said in the release of the new smart projector 'Little Magic', which starts at $1,499. 'As a product manager, I believe that after serving myself, I believe The user will like it. If the user really doesn't like it, I don't care.”
In the media interview after the press conference, Feng Xin bluntly stated that doing 'little magic investment' is the road to happiness, not the road to success. 'For other product lines of the group, such as magic mirrors and TVs, we still have to follow the commercialization. The judging criteria.
However, Feng Xin is unwilling to talk about group planning, strategy and overall performance. It simply means that whether the television business is successful depends on whether it wins the competition in the market; this victory can be quantitative, or it can be 'commercial competition logic'. .
"I'm not a person who works." When answering a question about whether or not to evaluate the success of Storm TV, Feng Xin said, 'But I'm staring at the big node.'
Product manager sitting in the dark
The storm's new press conference lasted for about an hour and a half.
At 2 pm on May 23rd, Lu Shengbo, co-founder and vice president of Storm Group, went to the stage and introduced the storm laser TV under the bright follow-up light.
But this laser TV is not the focus of today. At 2:30 pm, Feng Xin, chairman of Storm Group, took office.
I have done a lot of products since graduation. Today I want to make a product for myself and speak for it. ' Feng Xin said to the audience.
Afterwards, Feng Xin sat down on a humble wooden sofa on the left side of the venue and told the organizers to reduce the brightness of the stage and the venue. Only a few lights hit the sofa. Feng Xin’s face was hidden in the darkness. You can hear the sound coming out. The screen becomes the brightest light in the venue. The audience feels like being in a movie theater.
The conference site was Feng Xin in the lower left corner
Feng Xin’s “Endorsement” is a hardware product launched by Storm that devotes itself to film. This is a UFO-shaped projector equipped with a triangle bracket. Through the mobile phone APP to select, play, etc., the screen can be projected. Blank wall, or ceiling.
Feng Xin believes that this product serves a group of people whose movie playback quality is 'not going to be.' The self-illuminated screen does not have a sense of cinema. You watch movies with projections, and you can't go back after a few games (self-illuminated screens). ' Feng Xin said.
Feng Xin likes this product very much. 'Good-looking', 'beautiful' 'definitely good-looking' descriptions like that, appearing in his speech many times.
'I work as a product manager, an employee of a small magic investment, a storm user, I think we are users, that is, believe that the user will like it after serving him well. If the user really does not like me, I don't care.' Feng Xin said, ' It is better to serve the people than to serve oneself. I suddenly relax and no longer own the product. The user forms a multi-point relationship, but I am the user of my product.
However, Feng Xin also admitted that the development of 'little magic cast' is a road to happiness, not a road to success.
'I never thought (expanded this culture to the entire storm) because it was so special, ' Feng Xin said in an interview, 'There are many successful examples of business, such as Lei has always been touched by people's hearts. The price of products, kindness is also very successful, and the price/performance ratio is also very high. I also have this demand and it is all right. There are many ways to success. We can't demand that all successes go this way. This road is the road to happiness. Not a success. '
Small magic investment itself must also face the test of commercialization.
'Since I'm not so obvious about its business purpose, I'm definitely not allowed to burn money. At least I have to make it live. I have to maintain profitability.' In the group visit after the conference, Feng Xin made it clear that he would not burn money. It is the big principle of 'small magic cast'.
'We can make profits and maintain profit margins.' Feng Xin said.
TV sales are far lower than expected
In Feng Xin's self-report, Little Magic's products are more based on the inspirations of their personal user experience. However, for Stormwind, Xiaomo Investment still requires market inspection.
But at the moment, Feng Xin is also facing a thorny issue. As the TV business of the Group’s 70% revenue source, sales are far less than expected, and they have not yet been able to achieve their own 'hematopoietic' capabilities.
In April of this year, Stormwind Group released its 2017 financial report. Last year, storm TV sales reached 840,000 units, an increase of 4.16% year-on-year; hardware revenue was 1.283 billion yuan, an increase of 39.93%; hardware costs were 1.375 billion yuan, and sales of commodity gross margins were - 7.15%.
Storm TV production and sales in the past 3 years
This figure is far lower than the expectations of storm TV executives at the beginning of 2017. At the beginning of 2017, Liu Yaoping, vice president of television business, said at a press conference that the target sales of Storm TV in 2017 will be 2 million units. In 2018, The sales volume is 4 million units.
Feng Xin is also optimistic about the sales and earnings prospects of Storm TV. He once planned that with cumulative sales of storm TVs reaching 5 million units, it would basically cover the cost, and the remaining sales growth would turn into profits.
'The Storm Group's strategy for 2018 will be further focused. Various businesses and departments have formulated plans to fully implement All for TV'. On February 1 this year, Feng Xin told the media at the performance announcement conference.
However, for TV sales, Feng Xin evades light. After the May 23rd press conference, in response to the question of measuring the success of TV business, Feng Xin stated that it still depends on 'whether it wins the competition' and the winning index, sometimes It is quantitative, sometimes it is the logic of commercial competition.
'Not just quantity, for example SWOT's analysis is just a few core pillars that you cultivate today. It will be very important for the next two or three years. It's all very important.' said Feng Xin.
However, the financial report of the storm shows that although its hardware sales revenue has become the pillar of revenue, it has not yet contributed positive profits. In 2017, Stormwind Group realized operating income of 1.915 billion yuan, of which revenue from sales of goods was 1.283 billion yuan, accounting for the proportion of revenue. 67%.
Smart TV is a real commodity that StormStory currently sells. When it received sales revenue of 1.283 billion yuan, the storm also paid 1.375 billion yuan in operating costs, and the overall operating loss was about 90 million yuan.
From the perspective of the chief storm operator’s performance of the television business, the storm TV business suffered a greater loss. In 2017, the storm’s commander’s revenue was 1.348 billion yuan, and the net profit loss was 320 million yuan. In 2016, the storm’s commander’s revenue was 929 million yuan. The profit loss is 358 million yuan.
Currently, after the introduction of new investors, the Stormwind Group’s equity holdings of Stormwind Commander is diluted to 24.12%. Due to minority shareholders' rights, after the consolidated statements, the loss of Stormwind Commander is only about RMB 77 million reflected in Stormwind Financials. .
Feng Xin, who was interviewed by the media
Regarding how to evaluate the success of Storm TV, in the media group visit on May 23, Feng Xin said, 'I'm not a working person, but the big node I see is tight.'
In April of this year, Feng Xin also told the media that TV's loss in 2018, profitability in 2019, profitability in 2020, once profits are made, profits will come, and it will become hotter. 'Because I (Hardstorm TV) Yeah, millet Yeah, we plan to at least double every year. '
Hardware is not profitable and the capital chain is under pressure
At the storm semi-annual report performance briefing in September last year, Feng Xin once stated that the storm has no resources to continuously transfuse blood to TV and VR business. It can only deliver the first stick and is now completed. The next two businesses can only produce blood on their own.
At the end of 2017, Feng Xin introduced the 800 million yuan investment of Suzhou Dongshan Precision Manufacturing Co., Ltd., Rudong Xinsheng Industrial Investment Fund Management Center (Limited Partnership).
From the perspective of the financial capability of Storm Group, Feng Xin could not provide more financial support. In terms of debt, Stormwind’s total liabilities increased from 1.733 billion yuan at the end of 2016 to 1.915 billion yuan at the end of last year, in the first quarter of this year. At the end, it increased to 2.007 billion yuan.
The storm financing can use a single financing method. In August 2016, the storm announced that it plans to apply for RMB 2 billion to increase the fundraising project. However, at the beginning of this month, the storm announced that due to the refinancing policies and regulations, the capital market environment and Changes in the company's development strategy, the company intends to withdraw the application documents, choose to re-apply.
On May 7 of this year, Feng Xin pledged 7.7023 million shares to China Merchants Wealth Management Co., Ltd., accumulatively pledged shares reached 67.05 million shares, accounting for 95.35% of the 70.32 million shares held by him.
The announcement disclosed that the purpose of Feng Xin's pledge was 'guarantee'. Since the Storm was listed in 2015, Feng Xin has frequently pledged the shares of the listed company he holds. According to the 'Company Deep Reading' incomplete statistics, in 2017, Feng Xin It has pledged more than 12 times of listed company shares.
Feng Xin recently pledged shares
In a media interview in September 2017, Feng Xin once stated that his equity pledge was to provide basic financial support for the development of the storm and 'transmit his strategic layout with his own personal pledge'.
The storm commander who failed to obtain more financial support from the storm is also trying to raise funds through various borrowing methods.
The Stormwind Group's 2017 annual report shows that the Storm Commander raised funds in the past year by registering loans with the Yinchuan Equity Center, bill financing, and commodity pledge loans.
For example, in 2017, the storm commander registered a total of 291 million yuan in borrowings at the Yinchuan Property Rights Trading Center (Limited). As of December 31, 2017, the balance of short-term loans was 191 million yuan. Of these, in September 2017, the storm was commanding for two days. Within the Yinchuan Property Rights Exchange Center, a total of 191 million yuan was borrowed. The annual interest rate for borrowings was 12.5% and 14.333% respectively. The borrowing interest rate was much higher than the bank loan.
In the first quarter of this year, the Storm Commander also borrowed 104 million yuan through the Yinchuan Property Rights Trading Center, and the loan period was 270 days. The Storm Group disclosed that the loan with the Yinchuan Property Rights Center was a connected transaction, and the center’s largest shareholder was controlled by Feng Xin. Stormwind Holdings.
In addition, in 2017, the storm commander also obtained a credit line of RMB 200 million from China Merchants Bank in the form of bills pledged. By the end of 2017, the storm commander had used 88.818 million yuan in receivables for pledges, and had received a short-term loan balance of 87 million yuan.
The Storm Commander also obtained a pledge loan quota of 80 million yuan from Ali, a subsidiary of Ali, in the form of a commercial quality pledge. As of the end of 2017, the storm commander had 41.527 million yuan in stock for pledges and 30 million yuan in short-term borrowings.
The capital raised by the storm led the parties and still could not meet their capital requirements. The storm commander did not disclose its operating costs. In 2017, although the storm’s commander’s revenue reached 1.348 billion yuan, the cash flow from operating activities was a net outflow of 634 million yuan. Yuan, net profit loss of 320 million yuan.
At the Storm Group’s parent company storm group level, financial pressure is not small. Financial data show that the final cost of Stormwind Group was 1.375 billion yuan last year, an increase of 30.05% from the same period last year. The cost mainly comes from the TV business. As such, if Stormwind Group The terminal cost will maintain an increase of around 30%, and the cost will rise to around 1.78 billion yuan.
In addition, Storm Group also needs to pay about Rmb170 million in research and development expenses. In the past three years, its R&D costs were 137 million yuan, 197 million yuan, and 174 million yuan, respectively, and averaged 169 million yuan each year.
In the first quarter of this year, the storm absorbed RMB 120 million in cash received from investment, and obtained loans received RMB 104 million in cash, an increase of nearly 80% compared with the same period of last year. At the same time, it paid RMB 130 million to repay debts, which was an increase over the same period of last year. More than 200%.
With one increase and one decrease, as of the end of the first quarter of this year, the Storm Group’s cash and its equivalents were 118 million yuan, which was more than half of the 260 million yuan in the same period of last year.