The storm recession (300431) opened today and fell to a standstill. The decline reached 20% to 1.18 yuan, making it the first delisted stock in A-share history to drop 20%. As of press release, the stock had traded more than 1.3 billion yuan and sealed orders for about 780,000 lots.
Starting September 21, Storm Group's stock trading officially entered the delisting period. The company's shares will be delisted 30 days after the delisting period.
According to the announcement, during the delisting period, the price rise and fall rate of the company's stock is limited to 20%. The company will not plan or carry out major asset restructuring matters. Furthermore, according to exchange regulations, the Shenzhen Stock Exchange Venture Market will not accept applications for the re-listing of the company's shares, so after the company's shares are delisted, it will not be possible to re-list the company's shares on the GEM market.
According to reports, Storm Technology is the predecessor of Storm Group. Its most famous product is the Storm Video Player. This player was once popular, and the total number of users reached 280 million. The company went public on March 24, 2015, and gained 37 gains and stops in just 40 trading days, breaking the A-share fluctuation record. At one point, the company's market value exceeded 40 billion yuan.
After the company went public, the company began extensive expansion, laying out various fields such as VR, film, television, and games, which were at the forefront at the time. It now seems that the year of listing became a peak moment in the company's history, and the company's performance declined the following year. In 2018, the company lost 1.09 billion yuan in net profit. In July 2019, Storm Group announced that Feng Xin, the actual controller of the company, was subject to coercive measures by the public security authorities on suspicion of a crime. In September 2019, Feng Xin was arrested with approval from the Shanghai Jing'an District Procuratorate on suspicion of bribing non-state workers and embezzlement of duties.
Since the company has not yet hired a chief financial officer and auditing agency, it is unable to disclose the 2019 annual report before June 30, 2020. It has already touched on the relevant regulations of the Shenzhen Stock Exchange and may be suspended. Storm Group has suspended trading since July 1 this year. On August 28 of this year, the Shenzhen Stock Exchange announced that Storm Group failed to disclose its 2019 annual report within one month after the stock listing was suspended. In violation of the relevant regulations of the firm, the exchange decided to terminate the listing of Storm Group's shares.
Up to now, the total market value of the company is 389 million yuan, and the stock price is 1.18 yuan, down 99.05% from the highest price in history.