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　　Introduction:After the total market value shrank by over 90%, Storm Group, a giant that had previously set 55 consecutive limit up boards, has once again reached a turning point in its development.

The comprehensive bet on Internet TV did not make Storm Group obtain the industry dividend predicted by Feng Xin, its chairman, but the hole of continuous loss was getting bigger and bigger.



On October 15th, Storm Group announced that it expects a loss of 218 million to 223 million yuan in the first three quarters of 2018, and a profit of 2024.22 million yuan in the same period last year. Among them, Storm Group expects a loss of 112 million to 117 million yuan in the third quarter.

This undoubtedly caused the Storm Group, which was already in a development dilemma, to experience continuous rain at night. What exactly pushed Storm Group into such a predicament? Behind the continuous reduction and sale of holdings by multiple shareholders, Storm Group seems to have once again reached a critical moment of development.

　　Sudden increase in losses

After the total market value shrank by over 90%, Storm Group, a giant that had previously set 55 consecutive limit up boards, has once again reached a turning point in its development.

On October 15th, Storm Group released its performance forecast for the third quarter of 2018. During the reporting period, the net profit attributable to shareholders of the listed company was a loss of 218 million to 223 million yuan, compared to a profit of 2024.22 million yuan in the same period last year. Among them, the net profit attributable to shareholders of the listed company in the third quarter was a loss of 112 million to 117 million yuan.

The reporter found that the expected third quarter loss of Storm Group this year exceeds the total loss of the first half of the year, while in the third quarter of last year, Storm Group still had a net profit of 4.5173 million yuan recorded.

As for the reason for such losses, Storm Group explained that because of the increasingly fierce competition in the Internet video industry, the company's advertising revenue declined year on year, affecting the company's overall profit level. At the same time, Storm Group also announced that the Internet TV business is in a rapid expansion period. In order to accumulate users, further seize the market share of Internet TV, ensure that Storm TV can successfully complete its business objectives, increase marketing efforts, and increase costs.

In fact, in the first half of the year, Storm Group was already at a critical juncture of crisis. In early July this year, Storm Group announced that 4.65% of the shares held by its controlling shareholder Feng Xin had been frozen by the judiciary, accounting for 0.99% of the company's total share capital. The announcement shows that Feng Xin's shares in Storm Group have been frozen by the judiciary, which is a dispute over the equity transfer contract between CITIC Capital and Feng Xin.

This move undoubtedly puts the struggling Storm Group back into a development crisis, and for the current Storm Group, it has really reached a point of<><>Icmarkets Chinese customer serviceRong>icmarkets account opening strategy ng>The life and death moment of icmarkets' overnight interest development.Icmarkets transaction scale”Industry insiders told reporters that Feng Xin's insistence on continuing to bet on the television business is undoubtedly a wrong move in the post storm era.

Data shows that at the beginning of this year, Feng Xin, Chairman of Storm Group, proposed the group strategy of "All for TV" in 2018 and proposed a plan to inject the entire TV business into the listed company in 2019.

Although during this period, Storm TV officially signed investment agreements with Dongshan Precision and Rudong Xinhao, successfully obtaining a strategic investment of 800 million yuan, and Storm Magic Mirror also reached a 300 million yuan strategic cooperation and investment intention agreement with Gui'an New Area. But it seems that this has not fundamentally solved the development difficulties of Storm Group, and it has also encountered multiple inquiries from the China Securities Regulatory Commission during this period, "the above-mentioned person analyzed to reporters.

However, on July 4th of this year, Feng Xin admitted to achieving profitability. At that time, Feng Xin told the media that the new product of Storm TV had achieved positive gross profit and was expected to enter a profitable period in 2019; And it emphasizes that Storm TV "should have an expected profit of at least one to two billion in 2020 and 2021, and will maintain a high growth rate

In fact, the TV business of Storm Group is currently in an awkward state of "selling one at a loss, and selling more thanks to more".

Due to the lack of specific data disclosed in the third quarter report, based solely on the 2018 interim report data, the gross profit margin of Storm Group's sales of goods in the first half of the year was -15.25%, a year-on-year decrease of 7.70%. The decline in advertising revenue was even more severe, with advertising revenue of 860.7808 million yuan in the first half of the year, a year-on-year decrease of 56.85%.

　　Investors take drastic measures

Against the backdrop of gradually rising debt ratios, even the earliest shareholders have started to retreat.

According to the latest data from Storm Group, its market value is only 2.9 billion yuan, and its net assets are only 874 million yuan, with a P/E ratio of only 2.91 times and a net profit margin of -37.23%.

In fact, in the first quarter report of 2018, the current liabilities of Storm Group reached 1.975 billion yuan, while the current total current assets of Storm Group are only 1.829 billion yuan, which cannot cover the current liabilities.

Perhaps it was precisely because the performance and growth potential of Storm Group were questioned that its investors and cornerstone investors voted with their feet and quickly sold off.

Prior to the third quarter performance forecast, Storm Group announced on October 8th the implementation results of the plan for some initial shareholders to reduce their holdings in the company. The announcement stated that as of the announcement date,IcmarkIcmarkets Chinese customer serviceetIcmarkets transaction scaleOvernight interestICMarkets Account Opening GuideThe reduction plan previously disclosed by the company's shareholder Zhongxiang Hongtai has been implemented. On September 26, 2018, Zhongxiang Hongtai reduced its holdings of 226661 unrestricted shares in the company through a bidding transaction, accounting for 0.07% of the company's total share capital.

On August 4th, Storm Group announced that due to its own funding needs, its three initial shareholders, Ruifeng Liyong, Ronghui Sijin, and Zhongxiang Hongtai, plan to reduce their holdings of no more than 0.78% of the company's total share capital through centralized bidding, totaling no more than 2.5864 million shares.

According to Tianyancha information, these three companies are all enterprises held by executives of Storm Group, and are concerted action persons. Feng Xin serves as the sole executive partner of the three companies, holding 6.64%, 10.66%, and 8.27% of the shares respectively.

The most interesting thing is that its senior management seems unable to maintain their presence and evacuate quickly without hesitation.

According to the announcement by Storm Group on August 4th, Director Cui Tianlong, Assistant President Li Yuanping, and Deputy General Manager Zhang Pengyu plan to reduce their holdings by a total of no more than 285100 shares, accounting for 0.09% of the company's total share capital, within 4 months after 15 trading days from the date of the announcement.

The reporter learned that before the reduction, Cui Tianlong, Li Yuanping, and Zhang Pengyu respectively held 0.62%, 0.14%, and 0.08% of the equity of Storm Group. The stocks they reduced were all restricted stocks granted to them by Storm Group's equity incentive before, and the purpose of the reduction was disclosed as paying personal income tax for the equity incentive plan.

As a result, the stock price of Storm Group also began to drop sharply again. On October 18th, the stock price of Storm Group continued to decline, opening 9.15 yuan/share lower and falling to 8.80 yuan/share, a decrease of 4.66%, with a market value of only 2.1 billion yuan remaining.

This move undoubtedly puts the struggling Storm Group in a desperate situation once again. The fate of Feng Xin at this critical moment undoubtedly tests the development ability of Storm Group, "another analyst told reporters.

Can the Storm Group, which is struggling both internally and externally, rise against the tide again this time? This is truly a moment of life and death for Storm Group.

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