In addition, the Shenzhen Stock Exchange solemnly reminded all directors, supervisors and senior managers of the Storm Group to strictly abide by the laws, administrative regulations, departmental regulations, normative documents, the rules on the listing of stocks on the gem of the Shenzhen Stock Exchange and other relevant provisions of the Shenzhen Stock Exchange, exercise due diligence, perform faithful and diligent tasks, safeguard the interests of the company and all shareholders, and ensure the truth of the information disclosed, Accurate, complete, there are no false records, misleading statements or major omissions.
After Feng Xin was taken compulsory measures by public security organs in late July, on September 2, the Storm Group issued a notice saying that Feng Xin, the legal representative, confirmed the arrest, and the Shanghai Jing'an District Procuratorate approved the arrest of Feng Xin, the legal representative of the company on suspicion of bribing non-state functionaries and embezzlement. The media have previously elaborated on the arrest of Feng Xin and the involvement of the Storm Group in the whirlpool.
If the current situation cannot be improved by the storm group, the net assets at the end of 2019 are negative, and the company's shares have the risk of being suspended. According to the relevant regulations, if the Company's audited financial and accounting report for 2019 shows that the net assets at the end of 2019 are negative, the Shenzhen Stock Exchange may suspend the listing of the Company's shares.
On October 15, 2019, Storm Group disclosed its forecast for the first three quarters of 2019, with a loss of 151 million to 156 million yuan in the first three quarters, narrowing 32 percent from a year earlier to 34 percent, compared with a loss of 228 million yuan a year earlier.
There have long been media reports that Feng Xin was arrested or linked to the 2016 storm group's MPS acquisition in partnership with Everbright Capital. Prior to this, in order to buy MP&Silva Holdings S.A to make up for the copyright in the sports business sector, Storm Investment and Everbright Capital signed a cooperation framework agreement with Everbright Capital and its related parties to set up an industrial merger and acquisition fund with Everbright Capital and its related parties to invest 4.7 billion yuan to buy 65 per cent of MP&Silva Holdings S.A shareholders. After that, Everbright Capital, Storm Group signed relevant agreements with the partners to set up the Jiexin Fund. In 2005, Everbright Capital subsidiary Everbright Huihui, Storm Investment, Shanghai Qunchang Financial Services Co., Ltd. as GP, Everbright Huihui as executive partner. Under the original agreement, Storm Group and Feng Xin went to the bottom of Everbright's investment, promising to inject MPS into listed companies after the acquisition, and Everbright Capital was the priority partner, but less than three years after the acquisition, MPS was liquidated and the Storm Group was unable to deliver on its promise. Everbright Securities also released a report on impairment of assets when it reported results: due to the MPS incident, the company added nearly 300 million yuan in expected liabilities in the first half of 2019.
On the evening of September 3, the legal representative of the storm, Shi Huayu, issued an open letter, which said that it was affected by Feng Xin's incident, and the storm finance also faced unprecedented difficulties and challenges. The storm group also has the risk of the stock being suspended. The Shenzhen Stock Exchange has issued a "A suggestive announcement of the stock's risk of being suspended from the market" for storm release on August 30, September 5, and September 11, respectively. In the latest announcement, the net assets attributable to the company's owners in the consolidated financial statements of the storm group on June 30,2019 are-23, 939.82 million yuan, and the company is present After the audit, the net assets attributable to the shareholders of the listed company at the end of 2019 are negative risk. According to the relevant regulations, if the company's audited financial and accounting report for 2019 shows negative net assets at the end of 2019, the Shenzhen Stock Exchange may suspend the listing of the company's shares. On October 31, Storm Group continued to open a word limit, reported 4.67 yuan / share, market value 1.539 billion yuan, market value distance of more than 40 billion yuan from the highest point has shrunk more than 95%.
Today, the Shenzhen Stock Exchange said in a letter of concern to Storm Group Co., Ltd., that in addition to Feng Xin, the general manager who has been approved for arrest, all the senior managers of the company have resigned, and the securities representatives who assist in information disclosure have also resigned, demanding that the company appoint relevant senior managers as soon as possible to ensure business stability.
Mr. Feng Xin, the legal representative of the criminal suspect Storm Group Co., Ltd., has been arrested by the Public Prosecutor's Office of the District of the AnDistrict in connection with the crime of bribery of non-State staff and the crime of duty-based embezzlement. The listed company's storm group issued a notice that the actual controller of the storm group, Feng Xin, has been taken by the public security organ for the suspected crime, and the related matters have yet to be further investigated by the public security organ.
(picture source:搜狗图片)
On October 30, 2019, Storm Group disclosed that Zhang Pengyu, deputy general manager, Zhang Lina, chief financial officer, and Yu Zhaohui, securities representative, had resigned. With the exception of Feng Xin, the general manager who has been approved for arrest, all the senior managers of Storm Group have resigned, and the securities representatives who assisted in the disclosure of information have also resigned.
