Wen | A Wave of Sayings
On July 28, Storm Group issued a performance forecast that losses will continue to expand. It is estimated that the net loss attributable to listed companies in the first half of the year will be between 230 million and 235 million yuan, compared with 106 million yuan in the same period last year. On the same day, the Storm Group also issued a notice saying that Feng Xin, the company’s actual controller, was taken compulsory measures by the public security organs for suspected crimes, and related matters need further investigation by the public security organs.
Storm Group was once an eye-catching star in the A-share market. It has created 39 A-share myths with a market value of more than 40 billion yuan. Since last year, the Storm Group has suffered a lot from Waterloo, and bad news has come one after another. Because of its similarities and differences with pleasure, people can not help asking: Will Feng Xin, the founder of Storm Group, be the next Jia Yuetang?
Everbright has been involved in the acquisition of 5.2 billion yuan, with a loss of more than 200 million yuan in the first half of the year.
On the evening of July 28, the Storm Group listed on the GEM issued two announcements in succession: one was that Feng Xin, the actual controller of the company, was taken compulsory measures by the public security organs for suspected crimes, and related matters still need further investigation by the public security organs.
Another is that companies fear losing control of storm TV.
Storm Group, the main business for the Internet video business and subsidiary “Storm Intelligence” Internet TV business. On the evening of the 28th, the company announced that the net loss attributable to listed companies in the first half of the year was estimated to be between 23 million and 235 million yuan, while the company lost 106 million yuan in the same period in the first half of 2018. The announcement also said that one of the main reasons for the year-on-year increase in losses was the provision for asset impairment of about 163 million yuan.
In addition, the announcement also said that storm TV will no longer be merged. Storm TV, the Internet TV business of Storm Intelligence, will not be included in the company’s consolidated statements as Storm Intelligence Group has abandoned its priority subscription rights to its subsidiary company Storm Intelligence (Shenzhen Storm Intelligence Technology Co., Ltd.). The “Storm Intelligence” of the loss will not be reflected in the earnings report of Storm Group in the future. The announcement said that this would help to improve its sustainability and profitability, but there is still a risk that the net assets of listed companies will be negative in 2019 after auditing.
According to the Shenzhen Stock Exchange rules, GEM companies will face the risk of suspension of listing if the net assets audited in the annual report are negative. The China Times reports that the actual situation of Storm Group may be worse. Beijing Haidian Court brought Storm Group into the list of discredited Executees and punished them for their credit. In addition, in addition to Storm Group’s three discredited Executives’information in China’s Open Executive Information Network, “Storm Sports” also has three discredited Executives’ information. Its major shareholder is “Tianjin Fenghui”, and Feng Xin holds 98% of the shares.
On July 19 this year, Storm Group signed an agreement with Storm Holdings to cancel the agreement to take concerted action in Storm Intelligence. As a result of losing the leading role in the relevant business activities of storm intelligence, the actual control of storm intelligence will be lost. Therefore, storm TV will no longer be merged.
Why was Feng Xin, founder, chairman and CEO of Storm Group arrested?
From the company announcement, the police did not disclose what kind of crime Feng Xin was suspected of and took coercive measures. The magazine speculated that “from multiple sources, Feng Xin should be suspected of economic criminal offences, and the most likely coercive measures to be taken are related to the bankruptcy of the MPS project under the Guangda banner of his investment cooperation.” However, the media also reported that Everbright officials said that they were actively engaged in the risk management of MPS projects, but said that “we did not report the case”.
The incident of MPS stepping on thunder has something to do with Feng Xin’s bold investment in 2016. At that time, the GEM storm, once a hot star stock, attracted many enterprises seeking investment cooperation, such as Everbright. On May 23, 2016, Storm Group cooperated with Guangda in the hope of completing the 65% equity acquisition of MPS, an international sports copyright agent giant, with a leverage of 5.2 billion yuan. Storm Group, Feng Xin and Kwangta Chuihui also signed an intentional agreement on the repurchase of MP&Silva Holding S.A. equity, in which Feng Xin undertook the investment of Kwangta Capital and promised to inject MPS into listed companies after the acquisition.
After the acquisition, MPS turned downward. Less than two and a half years later, in October 2018, after FFT application, the British High Court ordered MPS to be liquidated in bankruptcy. At the same time, the storm of sharp decline in market value, “mud Bodhisattva crossing the river, self-care too much”, which heart will put MPS into listed companies?
Among them, China Merchants Bank, which invested nearly 3.5 billion yuan, suffered heavy losses. In a fit of anger, it sued Everbright Securities and asked Everbright Capital to fulfill the obligation of replenishing the relevant balance. The lawsuit amount was about 3.489 billion yuan. And can the days of Storm Group and Feng Xin, who have not fulfilled the repurchase agreement, be better?
On July 18, the event of “Collective Reception Day for Investors of Shenzhen Listed Companies in Beijing” was held. Faced with doubts about the withdrawal of Storm Group from the market, Feng Xin once said, “At present, the company actively carries out production and operation activities and insists on dealing with the difficulties it faces. No delisting conditions have been touched at present. Less than 10 days later, Feng Xin has been taken compulsory measures by the public security organs to imprison the actual accusers. Where will the storm group go when it loses its helm?
Will Feng Xin be the next Jia Yueting Pavilion?
Compared with “Storm Video”, Feng Xin’s name is not very loud.
Two years ago, when asked about Tencent Technologies, when the outside world liked to compare storms with pleasure, Feng Xin categorically denied that it was “extremely bullshit”. Tencent Technologies questioned in the interview at that time: “But you should have mentioned Jia Yuetang several times in the impression for some time, and this person is still respected to a certain extent.”
Feng Xin answered, “I’m sure I didn’t say that. I remember someone once asked me, what do you think is worth learning? I really mean, I’ve been learning Ali. But if you refer to Le TV, it will be Le TV. I will refer to many people. If others succeed, they must go to see it. But if we really talk about strategic thinking, we are trying to learn Ali’s way of thinking as much as possible.
As time went by, Feng Xin and Storm, who had been lost in the storm, still had to be compared with Jia Yuetang. Feng Xin once said, “Like a headless fly, I don’t particularly want to know what the future is like, just want to die on the road one day.”
In the past, when Lexin Jia Yueting shouted “counter-revolutionary”, he had been on fire for a while, turning the Internet, mobile phones, large-screen players, sports, automobiles and finance into his ecosystem one after another. Feng Xin, an old fellow of Jia Yueting, although he was not as big as Jia Yueting, he quietly built the four ecologies of TV, VR, video and sports for Storm Group, so he said “Xiaole TV”.
After its listing in 2015, Storm Group has created a 40-day A-share myth that has won 36 trading boards. At its peak, its personal wealth reached 5.8 billion yuan. The draught pigs of the tuyere fall to the ground and are covered with bruises. Now the risks and pressures faced by Feng Xin and the storm are getting closer and closer to the next Jia Yue ting. Jia Yueting, who has been enjoying the wind for a while, is in the wind of foreign countries. Feng Xin has also fallen off the altar.
Feng Xin, born in 1972 in Yangquan City, Shanxi Province, is about 300 kilometers away from Jia Yueting’s hometown, Linfen.
Yangquan is the gateway of the three Jin Dynasties, Jin and Hebei provinces to Heng, has a “coal and iron town” reputation. Although Yangquan people regarded Feng Xin and Baidu founder Robin Li as the pride of Yangquan people, he said, “I do not have the sense of recognition of Yangquan people”. Feng Xin once said that he grew up in Liaohe Oilfield, which spans Liaoning Province and Inner Mongolia Autonomous Region. He spent only four years in Shanxi during the middle school period. Every time he returned to Shanxi to take a taxi, he was regarded as a foreigner.
In March 2011, Feng Xin was invited to return to Hefei Polytechnic University, his alma mater, to give a keynote report on “Doing and Starting a Business” for MBA MPA students. At that time, Feng Xin wore sportswear and jeans, and said in his opening remark, “I’m not smart, but I’m honest with myself.” He said, “It’s not really me that can do it, but the other side’s embroidered legs that make him successful. My success is due to facing the reality.”
Feng Xin frankly described his college life as a “bastard”: “I didn’t have any classes, so that I was almost persuaded to quit when I was a sophomore. I admit that I wasted my youth, but I don’t regret it. I think youth is wasted and I am addicted to it! In my sophomore year, when the dean of the Department called me and another classmate who often did not attend class to the office, he told me that I would never come again. I felt hopeless and the sun was shining on me. I still felt cold all over.
In 1993, Feng Xin graduated reluctantly, but did not get his degree certificate. Of course, he could not be assigned a job. Fortunately, he said, “I was thrown into the Shanxi Yangquan Mining Bureau by the Shanxi Electrical and Mechanical Department.”
For entrepreneurship, Feng Xin’s understanding is that everything depends on himself, and the more worrying things are, the more likely they are to happen. Everything can be understood, but only the only positive solution is to do what you can and like, not to start a business for making money.
At that time, in Yangquan Mining Bureau, Feng Xin stayed for several months, but he could not stay any longer. He always felt that this was not the day he wanted to live. Very soon, Feng Xin went to Taiyuan to sell Ooh Jiajia’s milk candy branch in Shanghai. On the other hand, he registered with several classmates everywhere. Feng Xin later said that they had done BP machine maintenance, coal transportation and food trade. At that time, in their circle, there were a large group of Ooh Jiajia, Master Kang and Wangwang people. They had a lot of goods and they sold them well.
In 1996, when Feng Xin was 24 years old, he was in hospital for more than half a year because of fighting. At that time, he thought it was the lowest point in his life. Another downturn, he said, was when he was a sophomore, he was almost persuaded to quit, feeling that the sky had collapsed and that he deserved to have nightmares two years after graduation. Feng Xin, a 24-year-old, lost his job, money and classmates. He had to go home frustrated.
Feng Xin’s mother was also anxious for her son. After some work, she got a job teaching history for her son in No. 1 Middle School of Yangquan Mining Bureau.
Yangquan Mining Bureau No. 1 Middle School was renamed “No. 1 Middle School of Yangquan Coal Group” and “No. 11 Middle School of Yangquan Coal Group” after the restructuring of enterprises in the 1990s. Not long after he became a history teacher, Feng Xinyou felt that this job was not suitable for him. He once said, “I prepared a day’s lesson. The first lecture was about Chen Sheng and Wu Guang. Speaking for a day, I felt inappropriate and uncomfortable.”
Feng Xin wanted to find another job. He remembered Pei Xiping, who had influenced him for a lifetime. He was the vice president of Yangquan Mining Bureau Multiply General Company. At the beginning, Feng Xin’s registered company lacked 500,000 registered funds, so he sent the money without saying a word. But after Feng Xin went to Pei Xiping again, it wasn’t long before Feng Xin went to work in the Department of the next branch of his head office. There are not many departments. Five or six people. Feng Xin does one thing a week. He reads securities newspapers and writes reports. Then he reports to Pei’s office for one hour every 5 pm to talk about his views on the stock market.
Six months later, there was an international food trade meeting in Wuhan. Pei Xiping asked Feng Xin if he could travel on business. Feng Xin didn’t like to see people because of his injured eyes, but he went anyway. In the Entrepreneur Magazine of 2011, there was an article written by Lei Xiaoyu, Feng Xin: I was kidnapped by the storm. It said that when they came back from Wuhan on this trip in 1996, Feng Xin really started food and opened a steamed bread factory in Dahongmen, Beijing, called Fuxile Staple Food Kitchen. Feng Xin said, “I got more than 2.4 million by entering equipment and renting factories. Two or three months later, a big factory director was sent to work as a Deputy Marketing director.
In the winter of 1997, Feng Xin rolled up the bedding, hit a car and left. It is said that he was at odds with the big factory director. “He is from Shanxi Textile Mill, with a broken secretary and a bag, just like that.” “He asked me to get up at 5:30 a.m. every day, erect a flagpole in the factory, and run with the staff every day. I can’t stand it. I just don’t want to spend the night. I’m so depressed.
After that, Feng Xin called Pei Xiping and Pei told him, “You’re fooling around. You can’t come back to me anymore. Let’s do something else together.” Since then, Feng Xin, who has been floating in Beijing, has not worked for more than half a year.
After graduating from Wuhan University, Xiaomi’s founder Lei Jun went north to Beijing, was hired to join Jinshan Software in Zhongguancun, and later became the manager of development department. In the domestic Internet industry, Lei Jun’s “generation” is relatively high, but when he was the general manager of Jinshan Software in 1998, Zhou Hongzhen, 360 boss, just entered the industry; in November of this year, Ma Huateng and five other founding talents started Tencent, while another Internet giant, that is, Feng Xin’s Yangquan hometown. Baidu Robin Li also works for others in Silicon Valley Infoseek.
Alibaba was founded in 1999, and at the end of 1998, Ma Yun, who had broken his dream of starting a second business, and his team were crying loudly in a small pub in Beijing. They climbed the Great Wall during the day and sang “true heroes” at night.
Of course, 1998 is also a key year in Lei Jun’s life. In this year, a major shareholder, Lenovo, came to Jinshan to restructure the company. Two years later, Lei Jun became president of Jinshan Software.
This year, Feng Xin wanted to go to Jinshan, where Lenovo invested. He wrote a letter of application and did not reply. Then he took his resume to the talent market of the exhibition. He was hired by Wenqu Star. He was mistakenly accepted by Wenqu Star. Later, the person who recruited him into Wenqu Star introduced him to Jinshan. In March 1999, Feng Xin formally entered Jinshan and engaged in sales business.
Feng Xin later recalled that when he was in school, he had a mentality that he was smart and had a sense of intellectual superiority. If he gave me a question, I would solve it better than others. In Jinshan, Feng Xin is indeed more advanced than others. When he manages the business of Jinshan West China, his achievements exceed those of East and South China. In May 2004, Feng Xin left Jinshan and was dismissed. What exactly was the reason? Feng Xin did not make it clear later.
Less than two months after leaving office, Zhou Hongzhen, who was in Yahoo China at that time, pulled Feng Xin to the past and was in charge of the Personal Software Department. A year later, Zhou Hongyi left Yahoo and Feng Xin left. It is said that Feng Xin once approached Lei Jun to discuss whether the anti-virus software he had done before could let him do it. He was rejected by Lei Jun.
Feng Xin started his own business in 2005, when he took some investment and bought a video player called “Storm Video and Audio”. This software was developed by Zhou Xuejun, a Harbin engineer with tens of millions of turns, but Zhou Xuejun was reluctant to sell it to him.
This year, Feng Xin started two companies, one is hot audio and video player, the other is plug-in. According to him, he made one million dollars in two or three months and made money quickly. As a result, Cai Wensheng came and invested 3 million yuan, followed by IDG, which invested 3 million dollars. In July 2006, Feng Xin went to Harbin to find Zhou Xuejun and bought the storm video, which cost 12 million yuan. Of course, Feng Xin has a dream to go to the United States to ring the bell when he gets his first round of investment in IDG.
Among the Internet geeks he met, Feng Xin always thought Cai Wensheng had the highest EQ. He said Cai Wensheng was able to get many people to work out, “I can’t learn it.” I don’t understand why so many people listen to him? Feng Xin once said that Cai Wensheng once sent him a sentence: “Everything you worry about will happen.” Feng Xin said this helped him a lot. “Later, I tried, damn it, it’s so smart!”
“Although Feng Xin has taken a detour today, he is sure that he will come back!” At 2 a.m. on July 29th, Cai Wensheng, chairman of Meitou and investor of Storm Video, wrote in his circle of friends, “It’s very sad to see Feng Xin’s accident. Storm Video and Audio has served countless users free of charge, Feng Xin has also achieved many people, so that many institutions and shareholders have made money. In fact, a company can be listed, the hardest must be the founder, looks beautiful, but bear the most challenges and hardships, investors can cash in first, the founder must stick to the end, and the results are not necessarily good.
Cai Wensheng also exhorted: “So entrepreneurs must bear in mind a discipline: at any time do not sign’personal joint and several unlimited liability’.”
Feng Xin, 47, does not know if he still recalls what Cai Wensheng said to him? “Everything you worry about will happen.”
Even though Feng Xin said that Cai Wensheng was “grassroots” when he invested in him, there is no doubt that Cai Wensheng had “tuned” Feng Xin before he started, and knew Feng Xin well. In fact, Cai Wensheng’s more than 100 words are meaningful and interesting.
On March 24, 2015, the storm was listed on the GEM. Two months later, the market value had surged to more than 30 billion yuan, which was Feng Xin’s best time in his life. Today, the storm has suffered losses for three years, with a market value of just over 2 billion yuan. It also encounters a lot of worries, such as employee rights protection, institutional claims, and even the risk of delisting.
For a long time, the storm was labeled “Xiaole TV”. Although Feng Xin was unwilling, many people compared it with Jia Yuetang, a native of Shanxi Province, because Feng Xin’s ecological strategy had many similarities with Jia Yuetang’s former prosperous ecology.
It is not that no one doubts that when the 2017 press conference was released, Feng Xin, who was so cool, said on the stage: “at the beginning of the painting, everyone wanted you to paint, and then one day, the bubble was gone, and who would paint the cake again?”
Years destroy people, even if Feng Xin does not sacrifice ecological strategy, only the storm, has long been behind the times, the best survival is just to maintain. Of course, Feng Xin said that his storm was not a pleasure, his strategic thinking was to learn from Ma Yun’s Ali, but he forgot that many things in Ali he could not learn, such as financing ability.
After the storm went public, a series of large-scale capital operations of Feng Xin were unsuccessful, which also paid a heavy price. Several business explorations were misplaced. In a sense, Feng Xin’s situation is too similar to Jia Yueting’s, even worse than Jia Yueting’s. Jia Yueting is still building cars, and Feng Xin really has no money!