Storm Group released the 2018 annual semi-annual report on the evening of August 29. The report shows that Stormwind Group achieved operating income of 792 million yuan in the first half of the year, down 4.21% year-on-year; net profit attributable to shareholders of listed companies was -106 million yuan, compared with the same period last year. The 15.72 million yuan fell by 775.22%.
Among them, hardware revenue was 642 million yuan, up 20.08% year-on-year. The operating income of listed companies mainly comes from PC and mobile Internet video (storm video) and Internet TV (storm TV), with advertising, value-added services, The diversified income structure of the storm TV business has gradually stabilized. PC-end and mobile-end storm video is the original business module before the company's listing. This business module is mainly realized through advertising and value-added services; in order to build differentiated competition for Internet video services. Barriers, after the company's listing, the software and hardware integration layout was opened, and the Internet TV business, Storm TV, was launched. This business is mainly realized through hardware revenue, advertising business, and online payment service.
The storm said that in the first half of 2018, the company focused on the home Internet business opportunities, focusing on the Internet TV business, the storm TV product explosion strategy has achieved initial success, and the brand awareness has been continuously improved. On the basis of technological precipitation in the artificial intelligence field, the company further improved the people. The ability of machine interaction technology and machine deep learning, the competitiveness of Storm TV products is becoming more and more mature, and the Internet TV business is developing rapidly.
The report also showed that during the reporting period, Storm TV achieved sales of approximately 460,000 units, a year-on-year increase of 29.7%. In terms of channels, Storm TV continued to strengthen the advantages of offline channels, deepen the construction of new retail channels, and continued stable development of channels and customers. Up to now, Storm TV has achieved more than 7,000 offline retail stores, and the number of stores has increased by 15%, covering 2,581 counties and districts across the country, effectively expanding the number of channels in the third and fourth-tier markets. At the same time, Storm TV has continued to increase one or two. The sales and conversion channels of the retail market in the retail market, as of July 18, the coverage of home appliance chain cooperation in the offline region has reached nearly 40% of the national total.
On the other hand, by strengthening the offline channel to deepen the awareness of AI TV positioning, enhance the user scene experience, traffic growth and customer conversion effect is significant, under the three profit models of hardware benefits, content bonus, category expansion, with the help of 'BOSS platform and handheld boss' tools enhance connection with channels, greatly improve connection and operational efficiency. In terms of new retail channels, Storm TV has 'Jingdong Unbounded Retail', 'Suning Smart Retail', 'Tmall New Retail' The new retail platform of the business layout is a cooperative position, based on efficiency and scenario innovation, upgrading supply chain protection, enriching channel access, innovating the product customization chain, leveraging the platform to empower, and actively exploring new retail models. Nearly 10,000 stores in the retail platform, the sales channels have been further broadened and deepened.
According to financial report data, net profit has shrunk by 775% year-on-year. As far as market value is concerned, as of today, the market value of Stormwind Group is about 3.773 billion yuan, which is more than 90% compared with the company's peak of 40 billion yuan. The main reason for the decline in operating income of the company was that the storm was mainly explained by the year-on-year decline in revenue of the company's Internet video advertising business, which affected the company's overall operating income.