In the past few days, Stormwind Group Co., Ltd. (300431.SZ, hereinafter referred to as 'Storm Group'), which has attracted much attention from the capital market, finally officially handed over the transcripts for the first half of the year in the storm of public opinion. According to its release on August 30th. In the semi-annual report, the company's net profit loss was 106 million yuan, a year-on-year decrease of 775.22%.
The decline in profits was mainly due to the decline in advertising business revenue and the poor profitability of TV hardware. However, as an Internet company, Storm Group has more than one clear that TV is the future of the group, and the strategy of 'All For TV' will continue to expand.
In response to the specific follow-up development actions of Storm Group, the reporter of China Business News contacted its relevant person in charge. The other party said that the company is currently in the process of financing, and some information is inconvenient to announce, but the TV business is the core business of the group. Will release new products.
After deducting non-net profit, the company’s net profit dropped by 6016.64%.
Storm Group's semi-annual report for 2018 showed that the company achieved operating income of 792 million yuan in the first half of the year, down 4.21% year-on-year; net loss was 106 million yuan, compared with 15.72 million yuan in the same period of last year, down 775.22% year-on-year; net profit loss after deducting 112 million yuan Yuan, a year-on-year drop of 6016.64%
Stormwind Group's operating income mainly comes from advertising business, storm TV hardware revenue, and online payment service. The reason for the loss, Storm Group said that it is mainly due to the rapid expansion of Internet TV business, in order to accumulate users, further preemption Internet TV market share, to ensure that Storm TV can successfully complete business objectives, increase marketing efforts, cost increases. At the same time, video advertising business fell 56.85% in the first half of the year, thus affecting the company's overall profit level.
In fact, Storm Group has been criticized for relying on the profitability of advertising business. Storm Group's annual financial report shows that in the first half of 2015, the advertising revenue contributed nearly 90% to 193 million yuan; Among the income, advertising accounted for 70.9%, which was 462 million yuan; in 2016, the proportion decreased to 35.14%, to 579 million yuan; until 2017, the advertising business revenue ratio finally fell to 22.33%, to 86 million yuan. .
But the real reason for the loss, in the home appliance industry analyst Liu Buchen, is still hardware sales. 'In the first half of the year, the main reason for the storm TV sales is the price war, quickly exchange for sales and market with low prices, so the hardware sales The more you increase, the more your profits are lost.'
The semi-annual report of Storm Group showed that during the reporting period, the company's hardware revenue was 642 million yuan, a year-on-year increase of 20.08%. Among them, Stormwind TV's carrying entity Shenzhen Storm Wind Commander Technology Co., Ltd. (hereinafter referred to as 'Storm Commander') had an operating income of 662 million yuan, net Profit loss of 247 million yuan.
For the loss of hardware, Feng Xin, chairman and general manager of Storm Group, admitted: 'Everyone often compares us with LeTV. LeTV is giving the listed company the benefits, but we are not at all. We TV The content is in cooperation with Aiqiyi. The listed company can't get a penny. It is actually taking the loss of TV. The biggest contribution of Storm TV to listed companies is actually the increase of sales, but in In the current market environment, sales growth but no profit is not a positive information at all. Some experts even pointed out that Stormwind Group has transformed into a TV manufacturer and lost its Internet property.
Three years ago, the Storm Group was also the existence of the monsters. On March 24, 2015, the Storm Group went public, with an issue price of 7.14 yuan, up 43.98% on the day, and then pulled out 28 daily limit boards. After 41 trading days, the stock price reached its peak. 327.01 yuan, the market value is close to 40 billion yuan. As of September 6, 2018, Stormwind Group's closing price of 13.55 yuan, the market value of 4.465 billion yuan, compared with the peak period of nearly 90%.
The lowering of the capital market attracted the company's first shareholder, executives to reduce their holdings. On August 4, Stormwind Group announced that the company's initial shareholder Ruifeng Liyong, Ronghui seems to be brocade, Zhongxiang Hongtai reduced the total amount does not exceed the company 0.78% of the total share capital; some directors of the company, senior management personnel Cui Tianlong, Li Yuanping, Zhang Pengyu total reduction of no more than 0.09% of the company's total share capital.
Is TV the real future of Storm Group?
Although the profitability of TV hardware is still not as expected, Storm Group still regards it as its core business. In early 2018, the company proposed the group strategy of 'All For TV', focusing on Internet TV business and focusing on home Internet.
Prior to this, the Storm Group practiced the so-called 'global dt big entertainment strategy', taking the 'platform + content + data' route, the layout involved in the mirror, TV, sports several new business sectors.
In this regard, Feng Xin blamed it on his own expansionary 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. Xin said frankly, the task after the listing of the storm is to find a new Internet platform. If you and the company are focused enough to do only this, then you will only do TV and mirrors.
In the report period, TV sales reached 460,000 units, an increase of 29.7%. In April 2018, Storm TV sales entered the national TV market TOP10, and achieved the second place in the Internet brand TV nationwide. According to AVC Consulting's AVC report, Storm TV sales increased significantly beyond the industry average. At the same time, Storm TV won the 2018 China Venture Capital Golden Eagle Award, becoming the only award-winning Internet TV brand this year.
TV is the real future of the storm. Feng Xin pointed out that the pressure of TV today is the pressure of growth and the pressure to continue to expand. Admission began in December 2015, but it has not yet reached three years. Sales are from single digits. To 1 billion yuan, and then to this year may be 2 billion yuan. 'If our funds are abundant, Storm TV will expand faster, otherwise it will slow down, it is the pressure of speed and slowness.'
Feng Xin said that there is a very serious measure for the business scale and profitability of Storm TV. He believes that Storm TV can enter the profit period in 2019, and should have at least one billion yuan of profit expectations in 2020 and 2021. Will maintain a high growth rate.
However, due to the above words, Feng Xin and Storm Group have fallen into another paradox. On August 29, on the eve of the semi-annual report, Storm Group said it received a letter of supervision from the Shenzhen Stock Exchange, due to the release of the company WeChat public account. In the Fengxin dialogue recorded in the WeChat article, mentioning the sales information of 'Storm TV' in 2018 and the profit forecast data from 2019 to 2021, caused great concern in the market.
However, in response to plans to expand the TV business as a core business, Liu Buchen said that there may be more worrying risks. 'At present, in the home appliance industry, TV has the worst profitability compared to other home appliances. It’s not wise for the group to put all the eggs in one basket. '
In fact, more than the loss, the receipt of the supervision letter makes Feng Xin worry, how to improve the financing ability of the company. Feng Xin said: 'Storm Group as a listed company, listed for three years, because of my team and zero experience in this area , the ability is also very poor, so did not complete any financing and mergers and acquisitions. '
Interestingly, 10 days after Feng Xin Weixin published the article, Storm Group announced that it will introduce strategic investors to the storm commander responsible for the TV business. The investors intend to increase the capital of the storm commander by cash of 500 million yuan.
In response to the latest developments of the current Storm Group, the relevant person in charge told this reporter that now the company is in the process of financing, some information may have to be clear and the communication plan is clearer. But the TV business is indeed the core of the group. The business, the second half of the storm TV will release new products, through AI to create a differentiated experience, expand the leading edge in AI, strengthen channels, supply chain construction, focus on the flagship model of the core price segment to increase sales.