The Shenzhen Stock Exchange issued a supervision letter to Storm Group.

On the evening of April 16, the Shenzhen Stock Exchange GEM Company Management Department issued a supervision letter to Storm Group Co., Ltd. (Storm Group, 300431), saying that in October 2019 On the 15th, Storm Group disclosed the “Preliminary Results for the First Three Quarters of 2019”. It is expected that the net profit attributable to shareholders of listed companies (hereinafter referred to as “net profit”) for the first three quarters of 2019 will be a loss of RMB 151 million to RMB 156 million. On October 31, 2019, Storm Group disclosed the “Report for the Third Quarter of 2019”, with a net profit of 642,827,600 yuan. The forecasted net profit disclosed in the storm performance report is quite different from the net profit disclosed in the third quarter report and has not been revised in time.

Shenzhen Stock Exchange stated that the above-mentioned actions of Storm Group violated Article 1.4 and Article 2.1 of the Shenzhen Stock Exchange ’s GEM Stock Listing Rules (Revised November 2018). The provisions of Article 11.3.4. The company’s board of directors is required to pay full attention to the above problems, learn lessons, and make timely corrections to prevent the recurrence of the above problems.


Checking the Shenzhen Stock Exchange’s official website shows that Storm Group has received three Shenzhen Stock Exchange supervision letters in the past two years. The reasons for the previous two were “the failure to convene the board of directors to review related transactions in a timely manner, nor to fulfill the obligation of information disclosure in a timely manner” and “the company and the chairman Feng Xin released the company’s operating performance forecast information through WeChat articles” .

On April 13th, the Shenzhen Stock Exchange issued an announcement saying that it was planning to criticize Feng Xin for being suspected of being the chairman, general manager and acting secretary of the board of directors of Storm Group. Violation of the provisions of Article 1.4, Article 2.2, Article 3.1.5 and Article 3.2.2 of the GEM Stock Listing Rules (Revised November 2018).

On the evening of March 30, Storm Group announced that as of now, the company ’s existing employees cannot undertake the preparation of the 2019 performance forecast and performance bulletin, and the company cannot press The relevant rules require the disclosure of the 2019 performance forecast and performance bulletin.

In addition, Storm Group has difficulty paying employees ’salaries, and the company ’s staff continues to lose a lot. Except for Feng Xin, the company ’s senior management has resigned and assisted in information disclosure. Of securities affairs representatives have also resigned. At present, the company has only more than 10 people left, and there are situations in which some employees are in arrears.

On July 28, 2019, Storm Group issued an announcement that the actual controller of the group, Feng Xin, was forced to take coercive measures by the public security organs for suspected crimes; The crime of bribery of the staff and the crime of occupation of occupation approved the arrest of Feng Xin, the legal representative of the criminal suspect Storm Group Co., Ltd.

The third quarter 2019 report of Storm Group shows As of September 30, 2019, the company’s consolidated financial statements have total assets of 360 million yuan and total liabilities of 1.017 billion yuan. The company has the risk of negative net assets attributable to shareholders of listed companies at the end of 2019 after audit.
< div class = "contheight"> As of the close of April 16, Storm Group ’s stock price fell 0.40% to $ 2.50.