Boss Storm Player was arrested and the executives were all gone

Storm Group, a listed company that used to rely on Storm Player video players all over the country, is now falling apart and the bad news is coming one by one. Storm Group, which once had a market capitalization of more than 40 billion yuan, is now only 1.2 billion yuan in market value. With the exception of Feng Xin, founder and CEO, all executives have resigned and left. Shenzhen Stock Exchange and Beijing Securities Regulatory Bureau urged the company to appoint relevant senior managers as soon as possible.

Boss Storm Player was arrested and the executives were all gone
Boss Storm Player was arrested and the executives were all gone

The storm group said the company had the risk of negative net assets at the end of 2019 after the audit. In accordance with the relevant regulations, if the net assets of the Company at the end of 2019 are negative, the listing may be suspended. On 21 November, the storm group issued a public announcement, and the company was unable to disclose the risk of the annual report of 2019 due to the resignation of the cooperative audit institution. The annual report of the company’s financial position may not be audited. The storm group’s 21-day public announcement, recently received a “letter of advice from a special general partnership”, said that it will be the accountant of the annual report of 2019.

Storm Group said that due to the further expansion of the business, the audit business of 2019 was heavy and could no longer fully meet the needs of the company in terms of time and staffing, and informed us to resign as an audit accountant for the 2019 annual report, Dahua Accounting firm said in its “letter of notification”. The company will hire new audit institutions as soon as possible in accordance with the relevant provisions. Due to the serious loss of personnel and the lack of cooperation, the company is at risk that it will not be able to disclose its 2019 annual report within the statutory time limit.

On the same day, Storm Group also issued a notice saying that it had received a letter of concern from the Beijing Securities Regulatory Bureau. It is mentioned that after Feng Xin, the actual controller and general manager of the company, was detained, all the executives of the company have resigned in the near future, which has had a serious adverse impact on the normal operation of the company. The Beijing Securities Regulatory Bureau requires the board of directors, board of supervisors and on-the-job personnel to stick to their posts, perform their duties with due diligence, and do their best to maintain the stability of the company’s operations. Those who fail to perform their duties will be held accountable. The Beijing Securities Regulatory Bureau also mentioned that the board of directors of Storm Group should actively communicate with Feng Xin, explicitly require it to take effective responsibility, identify suitable candidates for full authorization as soon as possible, designate a special person to keep the official seal license, and properly keep the official seal license. Business information, financial information, maintain the basic operation of the enterprise.

Boss Storm Player was arrested and the executives were all gone
Boss Storm Player was arrested and the executives were all gone

On March 24, 2015, Storm Group landed on the gem and pulled out 36 trading boards in 40 days to become the “stock king” of the gem. At its peak, the stock price reached 327yuan, with a market capitalization of more than 40.8 billion yuan. However, the scenery did not last long. On July 28 this year, the Storm Group announced that Feng Xin, the actual controller of the group, had been taken compulsory measures by the public security organs on suspicion of committing a crime. In early September, the Shanghai Jing’an District Procuratorate approved the arrest of Feng Xin on suspicion of bribing non-state functionaries and embezzlement.Earlier, at the end of October, the Shenzhen Stock Exchange gem Management Department sent a letter of concern to the Storm Group. “our department is concerned that, with the exception of Feng Xin, the general manager who has been approved for arrest, all the senior managers of your company have resigned, and the securities representatives who assist in information disclosure have also resigned.” Shenzhen Stock Exchange also urged Storm Group to appoint relevant senior managers as soon as possible to ensure that the company operates stably and is able to fulfill its information disclosure obligations in a timely manner.

In addition to the arrest of the founder and the departure of senior executives, Storm Group’s business has not improved. On October 30, Storm Group disclosed three-quarter reports that the company reported revenue of 93.6 million yuan in the first three quarters, down 0995 percent from a year earlier, and a net profit loss of 650 million yuan, compared with a loss of 228 million yuan a year earlier, down 184.50 percent from a year earlier. The decline in operating income was mainly due to the loss of intelligent control of the storm and the decline in corporate advertising revenue. Storm intelligence, Storm Internet Television (Storm TV), was once the core business of Storm Group. On July 28, Feng Xin, the actual controller of Storm Group, was adopted by the public security organs. On the day of the coercive measures, Storm Group issued an indicative announcement that the scope of the company’s merger report would change, announcing that the company’s control subsidiary storm intelligence would no longer be included in the company’s merger report.

Storm Group also issued a statement saying that the net assets of the company’s consolidated financial statements attributable to the owners of the parent company were negative 633 million yuan on September 30, 2019, and there was a risk that the net assets of the shareholders of the listed companies at the end of 2019 would be negative. According to the relevant rules, if the company’s audited 2019 financial and accounting report shows negative net assets at the end of 2019, Shenjiao may suspend the listing of the company’s shares. Now open the official website of Storm Group, the page display is already chaotic, the video program on the page can not be played, Storm Player download page can no longer open.

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