In 2017, when Letv was plagued by funding problems,
At the end of 2017, the storm wind group under the banner of TV business operation main company commander, won a 800 million yuan of financing. This helps the storm group get out of the plight.
Recently, Feng Xin, chairman and CEO of storm group (300431), talked with the surging journalists. He elaborated on the difficulties encountered in the past year's financing process and how to get out of the influence of the music watching crisis. After the haze, Feng Xin believes that in 2018, the storm TV and millet TV will inevitably face the front.
The 2018 comprehensive focus on TV business days before the storm, and seek the TV business into the listed company overall storm. The strategy put forward that the core market and user group of the storm group will focus on the family Internet market, and the home Internet will become the main battlefield of the storm.
How to find an apple for Industry and commerce investment?
In December 7, 2017, the storm group gained the largest financing since its listing. The company's main operator of the TV business has got a 800 million yuan financing.
The investors involved in this financing are not ordinary financial investors, but two companies upstream of the industrial chain, namely Suzhou Dongshan Precision Manufacturing Co., Ltd.
Dongshan precision is apple and Tesla supplier, is China's largest PCB (printed circuit board) and FPC (flexible circuit board) manufacturers, investment industry chain downstream company is the first time.
Feng Xin recalled to reporters that after the Spring Festival on 2017, the two businesses, Storm TV and Storm Mirror, started raising funds. In May or June, they found two FAs, respectively. But surprisingly, Feedback from two FA
At that time, the intermediary of the financing advisers went back and asked for the bond financing, but the storm never tried and gave up.
The industry level, Xin Feng first thought is that the upstream industry chain of risk consciousness is too strong, the upstream are small business, profit rate of less than 5%, while the industry as a whole when a poor sense of trust, if the storm once a loan late, I'm afraid before all the cooperation on the basis of waste.
So Feng Xin's idea was to find the downstream of the industrial chain, to find retail partners from all over the country, and to let everyone do it in a manner similar to that of crowdfunding.
The plan ended up being abandoned because of insufficient funding and too many shareholder inconveniences.
Finally, it was forced to go to the upstream of the industrial chain to find the investment side.
Dongshan precision, one of the finalized investors, is one of the suppliers of storm TV.
Feng Xin revealed that Liu Yaoping was a veteran of the television industry and had been cooperating with Dongshan for ten years in SKYWORTH. Liu Xiaoping, a colleague of Liu Xiaoping's colleague Huang Ligui, later worked as the vice president of the factory in Dongshan. At the end of the storm, Huang Ligui also joined the storm TV.
In the LED screen order of Dongshan precision production, apple is a large proportion. The data show that in 2016, Dongshan precision bought an American NASDAQ listed companies Multi-Fineline Electronix for about 4 billion yuan. The main customers of the latter are apple and millet.
Supplier investment in downstream companies is rare, generally they know the actual sales of downstream companies.
Yuan Yonggang, chairman of Dongshan precision, said that Dongshan precision has maintained close cooperation from the founding of storm TV. In the future, Dongshan precision will provide manufacturing, supply chain, key modules and device capabilities to storm TV.
In fact, supply chain management is a very important test of team ability. In 2017, Wu Mingjin, director of Xiaomi TV's supply chain, was informed by the company that he, together with his subordinates and other 6 people, had deceived and formed an interest group and used his position to facilitate the solicitation of supplier property. After being suspected of having committed an offence
After the smooth completion of the financing, the business of the storm has gradually returned to the right track, and the faded out of the music seems to give a new chance to the storm.
Feng Xin said, some of the original and LETV cooperation agents, has now turned and the cooperation, including LETV once the largest agents hisap.
It is not only the channel merchants, but also the upstream supply chain, the smart family around the industrial chain, even the decoration company to find the storm to negotiate.
In fact, among Internet TV manufacturers outside Letv, offline agents currently have only two options: storm or Xiaomi. Xiaomi is now expanding vigorously
On January 31st, Feng said that the company's 2018 strategy would be further focused, with various businesses and departments working out plans to fully implement All for.
But when reporters asked whether there would be any investment in air outlets such as artificial intelligence, new retailing and smart speakers, Feng Xin said the storm would be cautious.
On the new retail side, Feng Xin thinks it's more expensive to open a store under a line. In artificial intelligence, there is no large-scale investment storm self basic research team, but take a strategic partnership with iFLYTEK, both sides hope to add millions of artificial intelligence assistant TV products and services, through the ability of TV products built-in iFLYTEK, to provide users with voice recognition and semantic recognition. And the competition of the intelligent sound box has now entered the Red Sea, and Ali and other tycoons give up subsidies, Feng Xin said that it will not enter the field for the time being.
The repositioning war with millet
Another investor storm of this round of financing, such as the East ho is a high-tech industry by the government of Rudong County of Jiangsu Province, Nantong City, led the establishment of the guiding fund. Zhai Jianhua, Secretary of the Party Development Committee of Rudong development area, said that after the strategic investment, we will take the storm TV as the leader and build the AI TV industrial base in Rudong to drive the development of the AI TV industry chain upstream and downstream.
The landing is fast. In February 3rd, the Jiangsu TV Intelligent Industrial Park Foundation, a total investment of 1 billion yuan, covers an area of 200 acres, the project put into operation, artificial intelligence TV production capacity will reach 3 million units within three years.
In Feng Xin's idea, the intelligent family is the third stage of Internet TV competition.
China's television market is not actually a new market, in the past decade or so, the basic is based on the annual volume of about 50 million units
Feng Xin believes that in the second stage , it is the Internet product service , and no longer just the richness of the content .
The third stage is the intelligent family. For example, opening the curtains and turning on the air conditioning can be accomplished through the interaction center and the computing center of the intelligent family. Feng Xin believes that. Television or speakers will be the center of the smart family. He estimates that at least 20% families will have it in 2020
The 2017 performance forecast issued by the storm group in January 31st showed that the sales revenue was expected to reach 1 billion 812 million 80 thousand -23.0629 billion yuan, an increase of 10%-40% over the same period. The company said the growth was mainly due to the sharp increase in revenue from the windstorm commanders of the Internet television business, up 40% from the same period last year.
From the first industry wide voice AI TV to the first AI no screen TV, the sales growth curve of storm TV has appeared in the first three quarters of 2017, and the sales volume of TV in the first three quarters was 550 thousand, an increase of 29% over the same period last year.
Feng Xin thinks the competition with Xiaomi TV in 2018 is bound to intensify.
According to the plan, the storm TV will realize the profit and loss balance of single user in 2018 and enter the overall profit period in 2019.