In early trading, Storm Group's stock price was quickly sealed off after a short financial game. Tens of millions of dollars were blocked to grab funds, and achieved 5 consecutive shares amid a wave of controversy. In just over a week, Storm Group's stock price has increased 76% from its all-time low last week, and has returned to the 60-day EMA.
Storm Group says it can't find a CFO and auditor
Storm Group has yet to disclose its 2019 annual report. Yesterday, the company received a letter of concern from the Shenzhen Stock Exchange requesting clarification on whether the company is hiring a financial director and an auditor for the 2019 annual report and related progress.
Storm Group responded to the exchange's letter of concern this morning, saying that since the resignation of the then chief financial officer in October 2019, the company has been searching for a candidate for the chief financial officer, but due to poor business conditions, salary arrears, and too much negative news, there have been no results. Meanwhile, in November 2019, the auditing agency resigned as the audit accountant for the company's 2019 annual report. Since then, the company has sought cooperation intentions from other agencies through various channels and contacted more than 10 auditors, but in the end, there were no results due to various reasons. The company currently has no cooperative annual report auditing agency.
Prior to today, the company had disclosed the risk of being suspended from listing several times, mainly the following two points.
According to relevant regulations, if a listed company has not disclosed its annual report within two months from the date the statutory disclosure period expires, the Shenzhen Stock Exchange may decide to suspend the company's stock listing. The annual report was not disclosed within a month after the listing was suspended, and Shenzhen Stock Exchange Ownership decided to terminate the company's stock listing transaction.
At the same time, the company's net assets attributable to owners of the parent company in the 2019 three-quarter report were -633 million yuan (unaudited), and there is a risk that net assets attributable to shareholders of listed companies at the end of 2019 after the audit will be negative. According to relevant regulations, if the company's audited 2019 financial and accounting report shows that the net assets at the end of 2019 were negative, the Shenzhen Stock Exchange may also decide to suspend the company's stock listing.
There were only 10 people left in the former star company
In 2015, Storm Group made a high-profile entry on the GEM with a star attitude. After listing, it gained 29 consecutive gains and losses to create history, with a peak market value of over 40 billion yuan. Beginning in April 2016, the company's stock price began a long path of decline. Today, the company's market capitalization is only 770 million yuan, which can be described as a flash of smoke.
In 2018, Storm Group lost more than 1 billion yuan, of which asset impairment losses reached 768 million yuan, and the financial report was subject to reservations. Since then, Storm Group has continued to “thunder.” In July of last year, the company announced that Feng Xin, the actual controller, had been taken coercive measures by the public security authorities. In December, the company announced that the company had only 10 employees left, and that all executives had left their jobs. Since then, the company's stock price has plummeted.
Recently, the company announcement once again mentioned the risk of difficulties in continuing operations. The announcement stated that the company's capital is tight, making it difficult to maintain the normal operation of the company, the main business revenue has declined sharply, accounts receivable are difficult to collect, and cash inflows are already difficult to support daily operations. The company is burdened with debt and is facing a situation where it is impossible to pay its debts in a timely manner; the company continues to lose a large number of employees. Except for Feng Xin, all of its executives have resigned, and the securities affairs representative who assisted in information disclosure matters has also resigned; the company currently has only 10 people left, and there is also a situation where some employees' wages are in arrears.
There are 5 ups and downs, and the turnover rate is close to 90%. Who is having fun?
On the one hand, negative news continues, and the company is on the verge of delisting, but on the other hand, they are taking advantage of capital flames and having a group carnival. As of yesterday, Storm Group has been on the Dragon Tiger List for three consecutive days. Among them, it is not difficult to see frequent short-term trading of funds.
The Guiyang Fushui North Road Sales Department of Haitong Securities has been on the company's Dragon Tiger list in the past three trading days, respectively. Counting the May 21 deal, the sales department has taken action against Storm Group four times in a row recently.
In addition, CaiTong Securities Wenling Zhonghua Road Sales Department, Zhejiang Securities Xiamen Wenkang Road Sales Department, and Guosheng Securities's Nanchang Financial Street Sales Department have all been on the Dragon Tiger List several times in the past three days. Including today's early trading, the storm's cumulative turnover rate in the past five trading days has reached 87.14%.