“The storm spent more time saying what we did in the end rather than where it was going. It was also a storm that came to this day and dared to tell everyone that the storm was still healthy.†said Feng Xin, founder and CEO of Storm Group. On September 1, during the week when the financial report of the first half of the storm was announced, Feng Xin interpreted the financial report with the CEO of the Group CFO, Storm TV Business and VR Business. In the past one or two months, the storm has encountered a lot of questions about the business model, about business development, and about the future. Feng Xin tried to clarify to the outside world that the business of the storm is stable rather than radical, and stormy. The business is consistent and not rocking. According to the financial report for the first half of the storm in the first half of 2017, the Storm Group’s operating income was 826 million yuan, a year-on-year rise of 66.89%; the net profit attributable to shareholders of listed companies was 15.72 million yuan, a year-on-year decrease of 16.64%; and the second quarter revenue was 370 million yuan, a year-on-year increase of 23.9%; The net profit attributable to shareholders of listed companies was 32.2 million, an increase of 108% year-on-year. Second quarter TV business losses have narrowed The decrease in net profit in the first half of the year was mainly due to the loss of TV business. According to financial reports, the operating cost for the first half of the year was RMB 660 million, an increase of 134.43% year-on-year, mainly due to the increase in terminal costs. In addition, the storm leader (its main product is Storm TV) in the first half of 2017 operating income of 561 million yuan, a net loss of 129 million yuan. Stormwind Group CFO Jiang Hao explained that due to the panel price increase and cost increase in the second half of last year, the TV business's profitability was put under considerable pressure and continued until early this year. However, since the second quarter, the gross profit margin of the TV business has been considerably improved. Liu Yaoping, CEO of Storm TV, told Sina Technology that “supply chain cost fluctuations were the largest in history last year. The entire industry was undersupply, but this year and next year will be put into mass production, supply will slightly exceed demand, and cost stability and decline. It should be continuous, and the cost impact on brand owners will become more reasonable and there will be no more substantial increase." In addition, according to the financial report, the current average passenger cost of the Storm TV business segment has already declined. In 2016, it was RMB 400, which is currently RMB 320. According to the storm, the reason for the decrease in passenger cost was mainly due to the laying of offline channels. The financial report pointed out that during the reporting period, there were more than 6,000 storm retail stores, covering nearly 2,000 counties/districts and above, and in addition, the new retail model “Wind Fans 2.0†was upgraded from April. Liu Yaoping stated that the channel sales under the storm TV line accounted for about 70% of the total. The original sales channel was mainly online. Now the storm and online cooperation of third-party e-commerce platforms have maintained relatively good cooperation; in the past, the most difficult The reason for this is how to make offline stores. At present, it is a relatively large-scale investment phase. The efficiency will be further optimized in the second half of the year, and the customer cost will be further reduced. “The storm has already entered the track period.†Feng Xin said that it is embodied in three aspects: the scale of the first user is accelerating; secondly, the cost of obtaining passengers is decreasing; and thirdly, the ARPU of individual users is rising. trend. The "Three Don't Do" Principle of Storm In the previous month, the storm had always been questioned. One of the big questions was that the development of the storm was not robust enough. "But if we don't do TV or VR after we go public, we honestly run a storm with 30% annual profit growth. Will you be interested in the storm today?" Feng Xin said, regardless of the environment. As long as development is an adventure, as an entrepreneur, there is an obligation and right to develop at any time. Another big reason is that LeTV, which is similar to the storm business, is facing a crisis. Similar to Jia Yueting, Feng Xin had previously pledged a number of shares. Since the beginning of this year, Feng Xin’s personal equity pledge has reached 12 times, including an average of one pledge per week in April. As of August 5, Feng Xin pledged 49.213.37 million shares, which accounted for 69.98% of its shares held by the company, accounting for 14.82% of the total share capital. In response, Feng Xin responded that the development of the storm requires basic financial support for the listing and development of the storm. However, according to the platform rules, the storm basically uses his personal pledge as a blood transfusion for strategic layout. "But with this pledge, we still have the bottom line. We have pledged less than 70% of the time. We still have a safety point. I don't think it should go to the risk of 0 and 1." However, unlike LeTV, the explosion of the music crisis, cell phones and cars, and storms are just not involved. “Some people asked me if this is accidental or inevitable? I really think it is inevitable. We know that this matter cannot be done.†Feng Xin. Feng Xin said that there are three principles for not doing storm expansion. First, there is not enough synergy with core business. Second, there is no unique competitive Red Sea market. Third, the return time is longer than 5 years. In many cases, Feng Xin has shown this soberness, such as in the recent blazing artificial intelligence speakers. "Our team, at least two or three people are very excited, but I spent a lot of money to communicate with the team and said, this is a simple judgment." Feng Xin analysis that in the speaker market, want to enter the top three to sell at least 1000 Million units, each losing 50-100 blocks is very normal, one hundred dollars is a hundred million, three years is 3 billion. “We cannot make ends meet. We are rejected in the Red Sea market that we do not grasp. We will not choose to be mobile phones or smart speakers.†Regarding the third “do not do†principle, Feng Xin said that he never bought any stock, but recently bought a Tesla and later it rose very well, because the car is in a closed environment. You have nowhere to escape. "This direction is very good, but we can't do it." Feng Xin believes that the real harvest of the auto market is completely invisible by 2025. It is a market for more than 10 years. "We are not qualified to plan for 15 years. My strategic plan is 3 to 5 years. The number of companies in the Internet industry that are truly qualified to consider for more than 10 years may not exceed five companies." Feng Xin said that the core business of the storm is to provide entertainment, can use the eyes to see the entertainment, the final pace of the screen is the direction of the storm as the overall direction of the target.
