The Storm Group, which once dominated the A-share market on its own, is now in its twilight years. I think back then, when it was listed, it achieved 37 daily limit prices in just 40 trading days, breaking the A-share daily limit record. At that time, the stock price was as high as 327 yuan. But now, the company is so miserable that it has been delisted and sadly delisted. Why doesn't it have a place now? What did it do to achieve this result?

1. If you fall behind, you will be beaten

For those born in the 7080s and even the 90s, Baofeng Video is the player that has grown up with them the longest. Before iQiyi and Tencent, Baofeng Video Audio and video can be described as conscientious software, and you can enjoy it without paying membership fees. However, since Tudou and Youku teamed up to launch new products, and iQiyi and Tencent later pursued them, Baofeng Video’s revenue has been decreasing day by day. If it does not change its business model, it will eventually be completely marginalized.

2. Overseas mergers and acquisitions

The market still believes that the dismal delisting of such a large company as Storm Group is closely related to that merger and acquisition. You must know that for a company, acquisitions and mergers are no small matter. In 2016, in order to enter the hot sports industry, it targeted MPS. In February 2016, Baofeng and Everbright invested RMB 200 million and RMB 60 million respectively to establish Jinxin Fund, which attracted RMB 5 billion and used the money to acquire 65% of MPS shares. MPS exploded shortly after being acquired and experienced a business crisis. It went into bankruptcy liquidation in October 2018. The bankruptcy and liquidation of MPS prevented Jinxin Fund from exiting as originally planned when the investment period expired. Subsequently, it encountered a series of lawsuits from financial institutions.

3. Feng Xin Bribery Case

In this merger and acquisition incident, many financial institutions were implicated, and the bribery incident of Feng Xin, the founder of Baofeng, was involved. How easy is it to leverage 5 billion yuan? This huge gamble caused the Storm Group to sink collectively.

Innovation can win hearts. On this long road to success, no one can win all the time. Seize the opportunity to survive!