A bitter tear in the storm
After the storm acquired MPS, it has been a long way to go.
On October 21, the board of directors of Stormwind Group announced that the company’s operating conditions have undergone major adverse changes in recent years, and the funds are tight, making it difficult to maintain the normal operation of the company.
The announcement shows that the income of the main business of Storm Group has fallen sharply, the collection of accounts receivable is difficult, and the business development is seriously constrained; the cash flow is tight, it is difficult to support daily operations; the debt burden is heavy, and the company faces a shortage of liquidity. The situation of debt service. In addition, there is still a risk that the net assets attributable to shareholders of listed companies will be negative after the audit at the end of 2019, and the Shenzhen Stock Exchange may suspend the listing of the company’s shares.
This is not the first time a storm group has issued a risk announcement. In the case of Feng Yi, the actual controller of the storm, suspected of bribery and job embezzlement against non-state workers, after being arrested by the public security organs in September, the company was in trouble. On the one hand, it faced huge amounts of arrears, and on the other hand, it was managers and technicians. Continued loss, stocks have repeatedly fallen, since August 30, the Shenzhen Stock Exchange has asked for six consecutive suspension risk reminders.
The storm broke, starting with the huge MPS acquisition. Storm and Everbright Securities established the Dip Xin Fund, and after the acquisition of MP&Silva (MPS), which owns sports copyrights such as Premier League and Serie A, MPS announced bankruptcy liquidation in the UK in just two years. As a priority creditor, the Dip Xin Fund faces an unlimited joint liability of 3.5 billion yuan. Subsequently, the company of Everbright sued the storm and demanded that the storm compensated the principal and interest by more than 750 million yuan. At that time, the market value of the storm fell 90%, leaving only 3.5 billion yuan.
The storm started from the network long video platform, its audio and video player storm video has claimed to have 200 million users, two months after the listing, the market value of the storm skyrocketed ten times, in consecutive daily limit After the market value reached 37 billion yuan, investors have high hopes for the storm.
However, the storm missed the development of mobile video, and has no chance to enter the first echelon of the video industry. Later, in order to expand the industrial chain, like LeTV, the storm also announced that it would build a complete Internet ecosystem, and involved in television, games, music and many industries, all ended in failure. According to the 2018 performance report issued by Storm Group, the company’s annual revenue was 1.123 billion yuan, down 41.34% year-on-year, and the net loss for the year was 1.09 billion yuan.
The hardware storm TV that was given high hope by the storm also made the company worse because of the high losses. Storm TV 2018 lost about 1.19 billion yuan, making it difficult for the storm group after the investment to explode. In mid-June, nine employees of Storm TV came to the Beijing headquarters and asked the chairman Feng Xin and the group to claim that the storm had defaulted on the half-year salary of more than 400 employees. At the same timeSalary employees also said that Storm TV violated the three-package regulations, implemented in-guaranteed payment and after-sales, involving thousands of dealers. Then there was news that the Storm TV team had already been forced to disband, but the Storm Group denied it, claiming that Storm TV did not disband.
After Feng Xin was arrested, the storm fell into a suspension vortex. The “demonstration” company, which once had a market value of more than 30 billion, has now shrunk to 1.5 billion.