On August 29, Storm Group released a semi-annual report for 2018, which realized operating income of 790 million yuan, down 4.21% year-on-year; net loss of 106 million yuan, and profit of 15.72 million yuan in the same period of the previous year. On the same day, Storm Group and its chairman Feng Xin Due to the violation of the company's operating performance forecast information published in the "Three-year Grand Test, Storm in the Storm" published on July 8, the Shenzhen Stock Exchange issued a supervision letter.
The main reason for the publication of the article "Three-year big test, storm in the storm" is that the Storm Group announced on July 7 that the 3.27 million shares held by Feng Xin were frozen by the judiciary. The content of the article is an internal conversation of Feng Xin. It mainly talks about Feng Xin's personal equity, debt problems and the future development of Storm TV. It seems to take this opportunity to stabilize investor confidence.
In fact, the text does not clearly give the solution of Feng Xin's equity and Storm Group's capital crisis, but is simply drawing a pie, obviously some self-defeating. It involves the performance forecast of Storm Group, which makes the public suspicious: Why not Follow the relevant regulations to publicly release information on the designated platform, but to choose public media? Storm Group's misconduct in information disclosure directly led to the release of the article on the second day, that is, the storm on the 9th of July, the rapid decline in the early morning. Investors use actions to express The distrust of the storm and Feng Xin.
'DT big entertainment' dreams
'小乐视' name plus
Recalling 2015, Feng Xin proposed the 'DT Great Entertainment' strategy, which said that it will link stormy services through big data, including video, music, games, etc. After the strategy was proposed, its stock price experienced more than 30 daily limit boards, the highest Up to 278 yuan, becoming a 'divine stock' of the year. At first glance, the storm group can be expected in the future, but why does Feng Xin play such a good hand so badly?
In fact, taking off the glare of the marketing cloak, you will find that the storm is on the verge of danger from beginning to end. Since 2013, the Storm Group has been in constant condition, either the net profit has declined, or the growth rate has slowed down, and the storm has changed. Mirror is the main cause of the huge losses of the Storm Group. According to the 2018 semi-annual report, the storm accounts for the Storm Mirror in the first half of 2018, the amount of accounts receivable was 57.83 million yuan, which was the same as the end of 2017, and the bad debt provision was 8.86 million. Yuan, more than 3 million yuan more than the end of 2017. At the same time, Storm Group purchased 150,000 from Storm Mirror, which is far from the planned purchase of 2 million. So it seems that the Storm Mirror is indeed in the market, The loss of TV hardware and the lack of liquidity, the Storm Group was even dubbed by investors as 'Little Music'.
Indeed, the temptation of Storm Mirror has caused investors to suffer. CITIC Capital first stood up and demanded early withdrawal. As for the issue of judicial freezing of its shares, according to Feng Xin, he was in the case of most of the shares of individual companies being pledged. Trying to use personal assets to buy back the magic mirror shares in CITIC’s hands, that is to say, this means that Feng Xin really has no money?
In the first quarter of 2018, Feng Xin held a total of 70.32 million shares, of which the number of pledged shares was 59.34 million, and the pledge ratio was 84.38%. On May 3, Feng Xin would hold 7.7 million shares to China Merchants Fortune. Asset management limited management company, the use of guarantees, the proportion of pledge stocks rose to 95.35%. On May 31, Storm Group received a letter from the controlling shareholder Feng Xin, and was informed that Feng Xin had to extend the semi-annual redemption for 3,744,500 shares and 3,745,200 shares respectively. Back, the pledgee is Huachuang Securities.
The two shares accounted for 10.65% of Fengxin's shares, which were used for financing. Now, with the shares frozen by the judicial, Feng Xin has no shares to be pledged.
Why does Feng Xin have to find another way?
The financial holes seem to be one after another. Feng Xin began to succumb, but had to reluctantly cut the meat, split the storm VR and storm sports out of financing development, disguised to sell. At the same time Feng Xin is also taking a different approach, focusing on smart TV At the beginning of this year, the group strategy of 2018 was 'All for TV'. The momentum was no less than that of the storm mirror of the year. It also launched a new business sector storm and cloud, and tried to block the blockchain.
Despite the income structure of Storm Group in 2017, Storm TV has replaced advertising as the main source of income for the storm, but since the listing of Storm TV, in order to compete with Internet TV such as Xiaomi and LeTV, a low-price strategy has been adopted, which makes the storm TV losses are getting bigger and bigger. According to the 2018 mid-year report, Stormwind’s company, Stormwind, achieved operating income of 660 million yuan and net profit loss of 247 million yuan. According to the shipments of 460,000 units in the first half of this year, the average loss per unit. It is about 537 yuan. Compared with 365 yuan in the same period of last year, this loss figure is even worse. Feng Xin also said that the sales volume of Storm TV is high, but he took the finger and calculated the profit. Original shape.
Cash flow is stretched
Once the profit of Stormwind Group could not keep up, its cash flow will begin to be stretched. On June 5 this year, Stormwind Group issued a fixed plan, and the company plans to raise funds by no more than 50 million yuan. This side confirms the storm. The Group urgently needs to pass through the small-scale fast-melting channel. From 2016 to 2017, the book cash of the Storm Group was 277 million yuan and 173 million yuan respectively, and the cash flow from operating activities continued to flow out. As of mid-2018, the book cash was only 71.37 million. Yuan, the second half of the year is difficult to sustain.
Feng Xin kept looking for new life-saving straws. They only lack stable cash cow products because of the storm. From the perspective of the product layout of the storm, the Internet, such as sports, live broadcast, etc., the market tends to be saturated, and it is impossible to burn only by simple money. Stand out from the crowd. After the storm mirror received more than 200 million yuan of financing, it will be overwhelmingly put on the advertisement, the products that can come out did not meet the expected standards, and the top bidding products are the millet VR; in order to seize the market gap left by LeTV TV, Storm TV Can not wait to finance the burning of money, sales, but not even the official after-sales, can only be handed over to Haier repair, affecting the trust of consumers. Marketing is greater than content, quick success, is the consistent business style of the storm in recent years.
From the perspective of market competition, in terms of VR, the domestic VR industry is in the period of industry reshuffle. Since the VR content producer Mido Entertainment was exposed to the salary of employees in 2015, many domestic VR companies have closed down, transformed, laid off, and storm mirrors. Among them, 50% of the layoffs were announced, and it was called VR winter. In terms of smart TV, the sales growth of smart TVs has slowed down in recent years. In 2017, the sales volume was about 48 million units, a year-on-year growth rate of 17%. The year with the lowest sales growth rate. Among them, Skyworth, Xiaomi and Hisense have a 60% share, and other brands have narrowed their living space. Whether Storm TV can meet difficulties is still unknown.
Feng Xin seems to have embarked on the old road of Le Shi Jia Yueting, relying on equity pledge to maintain capital investment and company operation, people have to sigh, the nickname of 'Xiao Le Shi' is really a word.