Welcome to the wechat subscription number of chuangshiji
Look for storm in market and reality.
By Li Xiaolei
Source / Tech planet (ID: tech618)
The storm group gradually disappeared.
The first to disappear is the company valuation reflected in the capital market. At the peak, the market value reached 40 billion yuan. Today, the market value is only 488 million yuan, a decrease of 98.8%. The net assets have already been negative and are facing the fate of delisting.
From July 7 to now, after storm was suspended trading, the stock price stagnated at 1.48 yuan. Soon, September 21, the storm group will delist from a shares, into the delisting consolidation period. This may be the end of the storm that Founder Feng Xin did not expect.
But it’s an outcome that won’t surprise too many people.
The company, once known as “demon stock”, recently disclosed that the total number of employees was 10, and there was still a situation of arrears of employees’ wages; due to the company’s delay in recruiting CFO (chief financial officer) and audit institutions, and even unable to disclose the financial information in the first half of 2020; all the company’s executives, except founder Feng Xin, have left.
With the official arrest of Feng Xin, the main business stopped, the whereabouts of Fengfeng Group headquarters is also a mystery.
Recently, tech planet has visited many offices where the storm once stayed. The locations are more and more remote, and the quality, price and size of rental buildings are gradually decreasing.
On September 14, tech planet arrived at Room 806, 5 / F, Dimon building, the latest office of windstorm group, and no trace of the staff of windstorm company was found.
A Dimon building insider pointed out to tech planet that the room at the elevator entrance was the storm’s office. But the door of the company is closed and there is no one in the room. Looking through the transparent glass, you can only see a computer, a file storage box and three pots of green potted plants. Fengfeng didn’t even change its logo. At the door of the office, there was still the logo of a company named “Tianshi technology” (part of its equity was transferred by storm agreement), and the word “stone” in the logo had already fallen.
On September 14, storm group’s latest office in Dimon building. Photo / Tech planet
The former address of Fengfeng Group headquarters is the first science and technology building. Photo / Tech planet
During this period, tech planet also called storm group many times to get more information about the company, but no one answered the deadline. If it wasn’t for the news of the termination of listing, in addition to issuing risk warnings about the possible delisting of stocks every few days, storm, together with its products, was in a corner forgotten by the outside world.
Since the end of 2019, when storm moved away from Shouxiang technology building, which witnessed their brilliant moment and went public, the destination of its office has been covered with mystery. With the storm in the stock market, Internet companies out of the center, and gradually decline, storm employees completed the migration again and again, the team number is also less and less.
The lost headquarters
The management staff and security personnel of Shouxing science and technology building remember the storm.
“The storm’s gone. It’s been moving for more than a year,” the building’s security guard recalled to tech planet. It can be regarded as one of the landmarks of Zhongguancun business district, and Shouxiang science and technology building has witnessed the prosperity and decline of the storm.
In the most severe stage of the storm expansion, he rented the whole floor of the 6th floor, the 11th floor and part of the 10th floor. A former Stormwind employee told tech planet that until September 2019, the company was still working in the first tech building, but only “dozens of people” were left.
Information map of the original first share technology building, taken on April 3, 2018
Recently, when tech visited Shouxiang science and technology building, the former headquarters of the storm, no trace of the existence of the storm was found. On the floor guide, the name of the new company is covered in the location before the storm. The sign with the name of windstorm company in the elevator has been removed. Although the new company has moved in for some time, the new company name has not been marked on the signs at the elevator entrance.
First enjoy the science and technology building, the former headquarters office of Fengfeng Group. Photo / Tech planet
Office space has always been one of the factors to confirm the rise and fall of enterprises. With the development momentum of the company and the expansion of personnel, it is natural to need a larger or more decent office. Many enterprises from the earliest residential buildings, campuses, small office buildings, moved into landmark commercial office buildings, and even bought their own real estate, park.
On the other hand, with the decline of business, cutting back on office expenses is also a common solution – move to places with cheaper rents and more remote locations.
In the second half of 2019, when moving from Shouxiang technology building, the number of storm personnel has been reduced from 1345 at its peak in 2016 to less than 100. According to the announcement issued by Fengfeng Group at that time, Fengfeng moved its office to 5 / F, building 21, No. 2, North Taipingzhuang Road, 4 km away.
But tech planet search found that multiple mapping software could not specifically display the address. If you follow the map of No. 21, you will enter the building.
The security guard told tech planet that “the 5th floor of building 21, No. 2, North Taipingzhuang road” actually refers to the Deheng business guild hall on the right side of the community. However, the 5th floor is being renovated and no enterprise has settled in.
The top floor of Deheng business hall was the office of Fengfeng Group. Planet / Tech
Deheng business hall has five floors, and most of the companies settled in are small and micro enterprises. Compared with the first enjoyment of science and technology building, Beijing University of Aeronautics and Astronautics is to the north of the first science and technology building. Across the river from the Yuandu Ruins Park, it is surrounded by commercial office buildings, and the new office buildings in the storm are surrounded by civil housing and residential areas.
A security guard in Deheng business hall recalled that Fengfeng had worked here for less than a year, and the exact time of moving in was not clear. However, the epidemic situation eased. After he returned to Beijing from his hometown, Fengfeng had already moved out of here. “At the beginning, there were many people, including No. 7 and No. 80, and in the end, there were only a few people in the office, about 5 or 6.” as for where he had gone after moving away, he did not know.
According to the announcement issued by the storm on December 2, 2019, at that time, a large number of storm personnel had been lost, “except for Mr. Feng Xin, all the senior managers of the company have resigned… At present, there are only 10 people left in the company. Due to the shortage of funds, the company still has the situation of defaulting on the wages of some employees. ”
The latest news for tech is that around February this year, the storm moved again. Like Deheng business hall, the new office is located near the Mudanyuan station of line 10. The new office name is Dimon building, and the subway exit is changed from entrance / exit C to entrance / exit a.
On September 14, after a field visit to tech planet, it was found that Fengfeng rented a 180 square meter office on the 8th floor of Dimon building. However, there were no signs and normal office marks related to the storm group. The door number was not marked on the door, and the name brand of a rental company was hung on the left side of the door. Internal staff confirmed that this is the latest office of Fengfeng Group.
Although the storm has moved to the new office for half a year, “but they haven’t come to work,” Dimon building staff told tech planet, “the rent is paid directly from the Internet. Since renting an office during the epidemic in February, no one has come to work in a day.”
In other words, according to the daily price of Dimon building of 6.5 yuan per day, the storm paid an average of 35000 yuan for office rent per month. But here, the company’s announcement of the “remaining 10 people” is hard to find.
Suspended storm audio and video
It’s not just the disappearance of physical space. In fact, with the decline of the company, Fengfeng’s products gradually disintegrated.
Everything started to get out of control on July 28, 2019.
It was a normal Sunday, but the storm was plunged into a real dark moment. On the same day, Fengfeng Group announced that Feng Xin, the actual controller of the company, had been taken compulsory measures by the public security organs for suspected crimes.
Feng Xin, CEO of Fengfeng Group
In the storm, the bad news came one after another: the staff of storm TV blocked at the gate of the first science and technology building where Fengfeng used to work. Zhang Lina, CFO of Fengfeng Group, Zhang Pengyu, deputy general manager and other senior executives all resigned. Even Yu Zhaohui, the representative of securities affairs of the company, also submitted a resignation report. Feng Xin is the only executive left, but Feng Xin is in prison.
At the most difficult time, Fengfeng Group’s main business “windstorm video” once defaulted on the hosting fees of the partner’s computer room server, which led to the client and the company’s web pages showing “504” error code, that is, “gateway timeout”, in short, it is “offline”.
The “suspension” of the main business of Fengfeng audio and video has accelerated the complete paralysis of Fengfeng Group’s business.
A former employee who has worked in Fengfeng for more than seven years laments to Tech: “it’s not easy to stay here.” she witnessed the whole process of the storm’s transformation from the “king of shares” to its decline. Like most of her colleagues, Feng Xin submitted her resignation report shortly after her arrest.
“At the end of the day, all spending was suspended.” without the management of Feng Xin and senior management, the storm went from bad to worse. From then on, almost every few days, Fengfeng Group issued “the indicative report on the risk of suspension of listing of stocks”.
Storm audio and video business pause, making the storm face no source of income “food shortage” situation. You should know that at that time, the rent of Fengfeng office space was only paid to the end of February this year. In the announcement, Fengfeng admitted: “if the business is not restored, Fengfeng Group will not be able to afford the rent, or even may not have office space.”
Fengfeng audio and video is the key product for Feng Xin to break into a world in the Internet territory. In the era when the storm dominated the video player market, it was the “installation necessary” software second only to Tencent QQ and Xunlei. Feng Xin once said with pride: “our products are updated 100 times a year on average, while our competitors update them once or twice a year.”
Of course, the frequency of such updates has long since disappeared. The rise of iqiyi, Youku and Tencent videos, and the awareness of copyright protection in the video and audio industry have rapidly made the aggregated video products lose market volume.
The last major update of storm audio was in June 2019, when it released “storm 16”, implying that storm audio is a video player that has been doing for 16 years. At that time, Feng Xin described the new version as “a new seed planted today”. But Feng Xin did not wait for the seed to germinate.
Storm video “storm 16” version and “storm 5” version comparison. Source / Feng Xin Weibo
Tech planet has noticed that the current storm AV client has resumed operation, and the video resources are all from popular video. Meanwhile, storm audio still has video payment members, and the minimum price is only 1 yuan per month, which is the lowest price among all video websites.
A popular online developer confirmed to tech planet that the storm video app, PC terminal and advertising system are all operated by the popular online agent. As a matter of fact, since February 7, Fengfeng has signed a cooperation agreement with Fengxing. Fengfeng audio and video will be operated by Fengxing for 15 months. During this period, in addition to the cost, the profit obtained by the popular online will be divided into three parts: the proportion of storm and storm, accounting for 30%.
According to the agreement, vogue online will pay a one-time agent authorization fee of 1 million yuan, and promise to give windstorm audio and video no less than 200000 yuan of revenue per month. This has become a small but stable source of income for storm group.
However, such benefits are not enough to improve the current situation of the storm.
Fall from the eye of storm to the edge of cliff
Boots fell to the ground.
Creditors Sue. The court ordered Fengfeng Group to pay transfer price and liquidated damages to Shanghai Gefei Asset Management Co., Ltd., totaling 470 million yuan. For storm group, this is a debt that has become insolvent. Storm stated in the announcement that the company has the legal risk of being unable to pay the above fees.
Storm’s latest financial report is the third quarter of 2019. The financial report shows that the net assets of Fengfeng Group at that time was – 633 million yuan, and there was delisting risk.
On August 28, the official website of the Shenzhen Stock Exchange disclosed that due to the failure to disclose the annual report of 2019 within one month after the suspension of listing of Fengfeng Group, according to item (9) of article 13.4.1 of the Listing Rules for GEM stocks (revised in November 2018), Shenzhen Stock Exchange decided to suspend the listing of Fengfeng Group and enter the delisting consolidation period on September 21.
From the brilliant listing in 2015 to the delisting now, the story of the crazy capital of the storm has come to an end.
The stock market trend chart, which has been suspended since July 7, has reached 327.01 yuan at the highest time, and is now suspended at 1.48 yuan
Obviously, the storm group in the announcement of only 10 people have been unable to save the company. However, after consulting the recruitment website of Tech planet, it was found that just a month ago, storm technology also sent out recruitment, including front-end development engineer of small program, PC client Windows development engineer, financial accounting, advertising operation, etc.
In the current situation, I am afraid it is difficult to have fresh blood willing to join the storm center.
Storm’s recruitment information. (source: liepin.com)
Some of the staff who left the storm at the last minute felt sorry and missed Feng Xin. “The old boss is still very good,” a middle-level employee who worked in Fengfeng for more than three years introduced to tech planet. She was responsible for the realization business of storm video, storm TV and so on. “I love storm. How can boss Feng come out and continue to follow him? There is nothing else I want to say.”
“Boss Feng is very good to his employees. He is not a picky boss. I remember that when the company went public, the company made money. At the annual meeting, each person issued an iPhone 6S, which was the latest model at that time. “Another employee recalled to tech planet that after leaving the storm, he almost no longer paid attention to the news of the storm.” it’s all bad, too bad hearted. “.
The storm was once called “little LETV”, which is not a good prediction. Today, Jia Yueting evades debts in the United States, and Feng Xin is also in prison.
An investor concluded that the reason why the storm has such a situation is that in the transformation of the main business, no new and innovative profit model can be found. Instead, everything is being imitated and even embarked on the old road of LETV. From VR and AR to AI, the hot concepts in the Internet industry are all laid out by Fengfeng Group.
“This model is like learning from Jia Yueting’s LETV new ecology, similar Internet thinking, similar expansion means, and similar stock price trend chart.” The investors said.
When the storm came into the market, it was labeled as “demon stock”. “After listing, there were 29 consecutive limit boards. After opening the trading limit boards on the 30th trading day, there were 5 consecutive limit boards; after falling for 2 days, there were 3 consecutive limit boards.” Such a rare event has been written into a large number of books about how to play with funds and how to invest and manage money.
Storm group has long been cast out of the first camp of the Internet, and most of the time, it appears as a negative teaching material. To some extent, the decline of the storm means that the myth that “everyone is the God of stocks” has long been shattered, and the most typical storm group has gradually disappeared from the public view. In terms of physical space, stock market and market influence, it is almost a complete collapse.
Feng Xin said in an interview in 2018, “I’ve played the same all the way. I’ve never had the desire to succeed until now.” In his opinion, doing business is a tool and props to place one’s life meaning, but in this process, what needs to be overcome is his own animality, greed and fear.
This year, Feng Xin had a two-hour dialogue with Richard, who was in charge of the storm market department at that time, in his residence in Beijing. He asked why he was in the storm three years after the resumption of the storm. After the listing, Fengfeng has multi-directional layout, including storm mirror, storm TV, storm sports and other business modules. Although the initial momentum is very strong, it does not have a big look, and even caused a series of financial difficulties.
Feng Xin summed up three reasons at that time, which may also explain what happened to Fengfeng Group today: listed companies did not complete any financing and M & A; they didn’t understand the different properties of money; they didn’t have a correct understanding of debt financing and equity financing; they also had greed in business layout.
“The third thing is that you can’t blame others, you can only blame yourself,” Feng said.
(statement: This article only represents the author’s point of view, not Sina’s position.)