'When you started to pledge your equity, thought that one day you would pledge so much?' I asked Feng Xin.
'No.' Feng Xin candid.
He has pledged more than 90% of his equity. According to him, most of the equity pledges are used in business. As an entrepreneur who has achieved IPO and created a continuous daily limit in the stock market. Entrepreneur, Feng Xin seems to be not a good entrepreneurial role model. He has not contributed much to the family. He has not been on the rich list, but he has already put on debt.
According to the latest announcement of Storm Group, about 3.27 million shares held by Feng Xin were frozen by the Beijing Chaoyang District Court, and the freeze period was three years. The reason for the freeze was that in 2017, a shareholder of Stormwind, CITIC Capital, proposed to advance. Withdrawal of funds, involving an amount of 80 million yuan, Feng Xin worried about the negative impact on the storm, promised to repurchase this part of the shares, has now repaid 50 million yuan, calculated interest is still 40 million yuan.
'No wonder others, can only blame yourself.' Feng Xin self-review, from the storm did not go public to the listing, there are too many unsuitable, but also made a lot of mistakes, their own and the team on the financing and mergers and acquisitions issues 'zero experience', The company lost its advantage as a listed company. When the problem first appeared, it was very passive.
If you can take the initiative and dare to deal with the problem, some problems may be avoided. For example, CITIC Capital’s 80 million yuan, if it can withstand the volatility of the stock price, Feng Xin should not be his own. He originally wanted to avoid giving The storm caused a negative impact, but in the end, the negative effects were still unavoidable, and the debt was transferred to oneself.
Feng Xin is not a master of capital operation. After three years of listing, the storm is still the case.
I still remember that in 2015, I went to the Storm Group to interview. Various capital parties lined up to wait for the loan to give him money. Now, the same person is dialing, urging Feng Xin to pledge the equity to pay back the money. Those who argued during the continuous daily limit of the storm price The investors and friends who invited him to give a speech seem to have not expressed their willingness to borrow money to help him through the storm.
I think, if Feng Xin got any lesson, it is every financing, it needs to be rewarded.
From the skyrocketing to the falling stock price, Feng Xin has completely felt a capital cycle. The nature of the storm has not changed, but the capital market has been fluctuating. Looking back, the glory of the 'demon stocks' is not the glory of the storm itself. It is only a short-lived phenomenon and episode in the Chinese stock market. He said that it is really 'self-improvement and strong,' that even if no one helps you, it can maintain growth, and there is no room for discussion.
Feng Xin moved the office from 13th floor to 6th floor, the area is only a quarter of the original, and the desk is also half-small. Before the most common four-legged desk, he is discussing with the product manager of Xiaomotou. The problem, the three people are surrounded by almost the head and touching their head. This is the distance he wants now.
'Slightly regretted, from March and April of 2015 until the end of last year, there is no concentration to make products, this is definitely wrong.' Feng Xin told Business and Life, 'I will not Going out of the product again. Feng Xin said. His goal is that this year, Storm TV will sell 2 million units, and by 2019, it will be able to enter a state of large-scale profitability.
Good news at bad times
This is a bad time, there is not much good news. But on July 4, Feng Xin still brought a good news to the media. Or, the latest data gave Feng Xin confidence.
'The data that just happened in April, May, and June can reflect some good results.' Feng Xin said. One is the speed of growth. The data shows that the sales of storm TV in April and May increased compared with the same period of last year. Twice. The other is, the screen advertisement of Storm TV, which was signed 5.88 million yuan in May. In addition, according to the latest data released by the storm, TV sales in the second quarter increased by 130% compared with last year.
Feng Xin thinks that these two sets of data show that the storm wants to 'get the value of the Internet through intelligent hardware' is the logic of the line.
Not long ago, Xue Yunkui questioned the current mode of storm in "The Worries of Storm Group": Storm changed from Internet business model to traditional TV product business model, completely out of its main battlefield and core advantages, this change increased sales revenue But it will also lead to fierce homogenization competition with traditional TV manufacturers.
The so-called Internet model refers to the acquisition of users through free software (APP), and then exchanges advertising for income. The characteristic of this model is that when users reach a certain scale, they can generate large-scale revenue. The traditional TV set. The model of the manufacturer is based on hardware sales profit, is a one-time sale, so there is almost no possibility of growth in revenue growth.
Feng Xin saw this article and forwarded it to the small group of the storm's core management. He firmly believes that today's storm TV is still a good Internet model.
'The storm is making a transformation. We want to get the value of the Internet by using smart hardware instead of free software or website.' Feng Xin said. In January 2018, at the annual strategic seminar, Feng Xin made it clear that To 'All For TV'.
In Feng Xin's view, the strategic transformation of the storm is like the relationship between Jinshan and Xiaomi. Jinshan used software to do the Internet in the early days, but since the advent of Xiaomi mobile phone, it is using hardware.
'Xiami actually created this way, and intelligent hardware can also do the business model of the Internet.' Feng Xin said. The value of the Internet is actually two values, one is user value and the other is business value.
Before the hardware, Feng Xin is most envious of QQ, WeChat users. A common tool software, the general life cycle is half a year, users will not download again after changing machines or reinstalling the system. But QQ, WeChat or Weibo, Because social relationships will exist in the user's terminal for a long time, and are used by high frequency.
After doing the AI TV, Feng Xin was surprised to find that the storm user used it for about 7 hours, more than an hour longer than other smart TV users. Feng Xin believes that this is due to the storm Innovations such as voice technology.
'Other manufacturers have not made far-reaching voice and killing the remote control as a strategy. We started to be a strategy last year, and we are leading this matter. ' Feng Xin said.
Feng Xin calculated that the annual income of 100 million users of Storm Video is probably more than 5 billion yuan. The average contribution income of a user year (UP value) is 5 yuan. But TV users are much higher, according to May. One million users have an advertising sign of 5.88 million, and a user's monthly contribution income has 5 blocks of 8, which can bring at least 70 dollars of UP value in one year.
Around 2012, Feng Xin and Lei Jun discussed the difference between the Internet and hardware models. At the time, they all believed that the efficiency of acquiring users by hardware was too low. A phenomenon-level software, the peak installation amount may be one day. It can reach hundreds of thousands or even millions of units, but it is good to sell a few thousand units of hardware a day. However, the facts behind it show that once the mobile phone actually acquires the user, it affects the user more than any APP. It must be deep. Feng Xin thinks that Internet TV must also have this value.
'The storm must get the Internet user from smart hardware. This is definitely right.' Feng Xin said. Even though today's voice can't be trusted by the whole society or business or public opinion environment, he believes that it will surely change over time. Believed because it is a fact.
Can 'ALL For TV' not burn money?
Before the listing, Lei Jun had a great influence on Feng Xin, let him know that he could not only work hard, but also looked up at the sky. To do things by the way, to do things through the general trend.
Therefore, before and after the storm went on, Feng Xin successively made Storm VR, Storm TV, Storm Sports, Storm Finance.
Feng Xin can still fully recite the complicated strategy envisaged after the listing: N421. 4 is four screens, one computer, one mobile phone, one VR, one living room. N is a variety of liquidation methods, such as e-commerce, finance , Advertising. The core is to use data to do the algorithm, the main content of two, one is CCTV content, one is sports content.
'Looking back now, there was still an inflated mentality at the time. For example, if there is 100 yuan for 50 yuan, it is a state. 100 yuan for 200 yuan is another state. Or think there are five things. All right, but in terms of your ability and the team's ability, you can only do one or two things. The challenge is whether you can control yourself, whether you are willing.
In essence, there is no right or wrong strategy. The key is whether there is enough money and time to support it. For example, VR is still considered to be an inevitable trend in the future. But the problem is that it requires enough investment and has to wait. Content, hardware, user habits and other conditions are mature.
If BAT is a cash-rich giant to lay out VR, it may be considered a far-sighted strategy. But the storm is not a rich company.
The timing of the storm entering the VR industry is still too early, and the industry has not yet reached the stage of the outbreak. But Internet TV is different, it is becoming more and more mature, and the efficiency is getting higher and higher.
'You have to find a screen to make the user bigger, and the quality of the user is good, the value can be made. Then we can find today, can grow sharply, on the TV screen and projection screen. 'Feng Xin re Examining the trends of the Internet and technology, I believe that before 2025, the true core value of China's Internet is moving toward the screen with two scenes: one is the living room Internet, and the other is the car Internet. In these two scenarios, people may release Your hands and eyes will then accept the screen and information. This is also a factor in the storm turning the strategy to TV.
Lei Jun once said that Feng Xin chose the wrong battlefield.
The battlefield that Lei Jun said refers to the video where the storm video is located. The video is a recognized field of burning money. Zhang Chaoyang once felt that every year he thought it would end in two or three years, and in the end ten years, the video field burned money war. I still can't forget the head. And Feng Xin, is not a person who is good at capital operation.
However, Storm video has laid the foundation for Storm TV. According to the data provided by Feng Xin, there are 100 million users of Storm Video, so Storm TV has almost no money for early promotion. Now millions of users, mostly from This 100 million users.
'If you let me let go of the money, the growth in April and May must not be twice, maybe three or five times the growth rate. ' Feng Xin said that now the most need for funds is Storm TV, but Storm TV is a business Logic. If there is better financial support, Storm TV may run faster. He has calculated the account. If the sales amount reaches 10 billion a year, the fund turnover is five times, in fact, only 2 billion yuan is needed. .
The problem with the storm is that there is not much money. In the traditional impression of people, smart hardware is just an industry that burns money. Therefore, people can't help but wonder: Can a storm be made into a TV?
'The current storm has not burned money.' Feng Xin said that the most expensive one in the past two years was TV, because TV was negatively gross in sales.
Internet TV used to be a highly competitive entrance. From LeTV, Lenovo, Skyworth to Wei Whale, they all tried to cut a piece of cake in this field. For this reason, they did not hesitate to sell gross profit. But the result turned out to be counterproductive, and the contestants successively died down. It is a traditional TV manufacturer like Sharp that has regained its vitality. The data of 618 shows that there are few Internet brands left. In the top 10 sales, only Xiaomi TV and Storm TV are left. 'But I think the future is Internet brand TV. More vital, more existential value. ' Feng Xin said.
Since last year, the storm has concentrated on TV, and the cost of burning each item has improved. In the past four months to four months, the storm sold 180,000 TVs, and the new products accounted for 60%. 'Today, new products All of them are 3% - 15% positive gross profit. This is to say goodbye to the stage of burning money to get users. Moreover, the cash flow is also doubled, and the cycle from product delivery to checkout is also shortening. From the previous 120 days, it has become a month or so.
'Do you think this time, is your battlefield right?' I am to him.
'Affirmative'. Feng Xin answered.
Big screen advertising sold 5.88 million, Feng Xin felt that this is a good start. He also admitted that he did not know that Storm TV will be the first in the smart TV industry. After all, Xiaomi TV has no obvious Bug. But the storm TV also has its own advantages, that is, offline channels. It is reported that there are currently more than 7,000 stores in the country that can experience Storm TV products.
It feels good to return to the product
On May 4th, Feng Xin gave a speech at Beijing University of Technology. He mentioned that he was very confused. Why did Ji Qi be able to make the hotel business with very low thresholds so competitive? Ji Qi A: You know There are ten ways for hotel passengers to call early service?
Feng Xin's office, once in a 13-story large room. Standing in the office, looking out, the entire Zhongguancun has a panoramic view, including the place where the previous Jinshan software stayed. However, sitting on the 13th floor, can not see the 6th floor The state. Feng Xin gradually moved the office to the 6th floor, next to the conference room of Storm TV products.
'When you don't make a product, you can't think of it. I can only see one or two points. For example, information flow is a big trend, and others can't see it. ' Feng Xin said. If you don't go deep into the line, you don't know every version. What changes have been made.
Feng Xin had always been responsible for the products. But after the listing for more than two years, because of strategic layout, many actions of capital, Feng Xin did not concentrate on the work of the product. Xiaomoo was also listed, Feng Xin first time Go all out to make a product.
'This feeling is very good.' Feng Xin said that once he starts to ponder the little magic throw, he will throw away everything else. At least three days to four days a week, from 7:00 pm to 2 am It, in-depth discussion of it, the time of fragmentation is not counted. Even when playing with the children, I am thinking about it.
Two weeks after the release of the small magic app, the product department organized a 'red and blue meeting', Feng Xin and the user, product and operation representatives sat together to discuss the first phase of product improvement. Red is praise, blue is Tucao. Come out, I hope the little magic can increase the built-in power supply, optimize USB management and other needs.
Originally, USB files will show all the files when they are played, but some users mentioned that this will expose privacy. 'This is a very small thing, but we didn't think of it before.' Feng Xin said, user mentions After it came out, it was modified. According to the plan, the product of the magic investment will be repeated once every two weeks.
'All our past experience is to do traditional Internet products, respect users, find a balance between respecting users and making money. ' Feng Xin said.
Storm Magic has stipulated that all employees must pay for the products of the magic investment themselves, and they must first become the users of the magic investment. This also caused some employees' dissatisfaction. But Feng Xin believes that this is a worthy attempt, 'if the user Knowing that our employees are spending the same money to buy this product, they will not trust us the same.
Next, the storm may do the same in the TV department, let the employees become users of their own products.
Feng Xin frankly, he was not a typical user of Storm TV. He rarely watched TV at home. But after the appearance of the Little Devil, he was happy to take a small magical shot in his backpack every time he went on a business trip.
I recently went to Shenzhen for a business trip. He used the little magic to watch the World Cup in the hotel. He thinks the screen looks very cool. On July 1st, Brazil and Uruguay, he made a dynamic: Little Magic, World Cup. .
Feng Xin likes football. In the summer of 2002, Feng Xin and Lei Jun said that they would like to take a month off to see the World Cup. 'There is to watch the World Cup, and resign without giving a fake.' The result is that Lei Jun will let Feng Xin go to the World Cup.
Now, Feng Xin's dynamic display shows that he has watched four movies with Xiaomo. 'I hope that one day, the Magic Project users can use it to watch 50 movies a year, and our employees can see 100.' Feng Xin said that a colleague is very exaggerated. He likes to put the little devil on the deck of the car, cast it on the roof of the car, and watch it on the car.
Feng Xin is not perfect
I asked Feng Xin, did you see a post on the Internet? The content of the article is: Storm is the earliest video company in China, and is currently trying to move up the hardware, but it is hard to get support from the capital. If Feng Xin bursts It’s not a bad thing to have a new big gold come in.
Feng Xin listened, and he laughed, and he was about to laugh.
He paused a little and replied: 'It is said that Feng Xin may be a defective person. This is definitely there.' Feng Xin is honest, he is definitely not a master in capital and management, and many ordinary people can do things themselves. He is not doing well. His way of thinking is a bit like academic people. Father once said that he: This child should engage in scientific research. 'In fact, he may be right, but I came across this era.'
After being born, entering the WTO, being born, and entering the WTO, Feng Xin kept fighting with himself, but it seems that he has not really integrated into it. He even said to the staff at the annual meeting: You don't need to thank me, I don't thank you either.
But he is very confident in his own products and understanding users. 'A company, which is essentially human service, the most core of which is always a product.' Feng Xin said, if the product is not doing well, even if the capital and management are done well. What is the use? Even if the short-term recognition of capital can be obtained, it cannot last.
'I am returning to the fields and abilities that I am good at. It is definitely right for this company. It is definitely correct in general. I can't do everything. It's a master. Feng Xin sees himself. , Still not strong enough to that extent, so someone outside is optimistic about themselves, some people are not optimistic about themselves.
'We are working hard. In principle, everyone should still try to play the long board. It is good to see the short board. You have to make up the short board. Maybe even if you spend a lot of skill, you can't make it up.'
He hopes that Storm TV can make a hard product and redefine some software and products. In the 40-inch category, Storm TV has achieved the first in the industry. Feng Xin plans that this year, the storm can put one or two more The category is the first in the industry, 'try to define two more products. If there are two or three categories that can get the first, we will have great competitiveness.'
'The iteration of the product is higher than others. I think this company must take this as its core competitiveness. It is impossible to win with other core competitiveness. 'Being sought after by capital, I also tasted the closed door of capital, Feng Xin can see things open. Today is the day, next year, the next year, I don’t know what will happen? Today is a difficult life, next year, the next year may be the same as a brilliant moment.
Like Lei Jun, who used to think about Feng Xin in his mind, the sound of 'millet is not good' before 2015. But today, he has a successful IPO with Xiaomi in Hong Kong.
'Is it iron, can you hit a few nails? Don't believe that there will be many people who will help you to hit a lot of nails. This is impossible.' Feng Xin said, when looking up at the sky, you should also bury your head. Every week Every month, we will work hard on iterations. Even if no one helps you, we must ensure growth. This is not to be discussed.
On July 18, 2018, Stormwind Group issued two announcements, announcing that the subsidiary 'Storm Commander' is planning to increase capital and expand shares, and plans to introduce strategic investors. At the same time, Mr. Feng Xin is the chief product officer of Storm Commander, adding value in products. Business income and system construction further helped Storm TV team to support the rapid development of Storm TV.
Feng Xin knows that Storm Commander is still in the market expansion period, and further development requires a lot of financial support. He said that he does not think that the key to the problem is whether to replace Feng Xin. As of today, he is still trying his best to focus on the business itself. I am also willing to do all the debts to the debtors, the storm investors, and put them into the final responsibility for every penny of the storm.
'If you can, always work hard. In this case, the credibility of the storm will not be lost. At most, everyone can laugh at Feng Xin, this buddy doesn't understand, he will only do that, and he can't do something.'