Where on earth has our money gone? This is the biggest puzzle for investors in Storm Finance in recent years.
Since the Storm Group announced on July 28 that Feng Xin, the actual controller, had been detained, its storm finance has been hit harder than the reaction of Storm Group A share price. On the day of the announcement, the official platform of Storm Finance immediately announced that it would stop the new tender, and some products were delayed payment, but also could not be withdrawn.
Twenty-seven days have passed since the outbreak of the incident (24 August). In the past 27 days, Shi Huayu, CEO of Storm Finance, held two talks with some representatives of investors, but none of the appeals put forward by the representatives of investors are believed to have been resolved. Up to now, the two versions of payment schemes given by Storm Finance have been unacceptable to investors who have made random contacts in the era of Finance and economics. Our balance on the platform account is our legitimate private property, and they are not authorized to invest. This balance should be paid to us immediately. There are also investors who worry that the duration is too long to guarantee that the storm finance will continue to pay.
In addition, representatives of investors who had participated in the talks before believed that Storm Finance was a company owned by Storm Group. Many investors were also users of Storm Video and Storm TV because they believed that Storm Finance was the platform chosen by Storm Finance. Now that Storm Finance is in trouble, Storm Group should come forward to solve this problem and endorse the next payment.
However, Storm Groups actual accusers are now in custody and entangled in litigation. In the first half of this year alone, they were listed as executed by the court 53 times. Moreover, the performance forecast issued by Storm Group shows that the net profit attributable to shareholders of Listed Companies in the first half of this year is expected to lose 230 million to 235 million yuan.
It took a week before and after the era of Finance and economics to communicate with nearly 20 investors, confirm and verify the relevant information, and gradually restore the 27 days that the storm finance and investors experienced after Feng Xins arrest. Meanwhile, since August 16, Times Finance has been trying to contact Storm Finance or Storm Group. According to Tian Eye Check, both companies have the same phone number, but many calls to the phone are unanswered.
On July 28, Storm Group announced that Fengxin, the accuser, was detained by the public security organs. According to the announcement of the Storm Groups reply to the letter of concern of Shenzhen Stock Exchange, Feng Xin was detained on suspicion of bribery to non-state functionaries. His assistant received a notice from the public security organs on 23 July and a Detention Notice on 25 July.
A stone stirs up a thousand waves.
It is not the share price of Storm Group but its Internet financial platform, Storm Finance, that bears the brunt of the shocks. On July 28, after the announcement of Storm Group, Storm Finance announced on its official platform that it would stop issuing new tenders. Meanwhile, due to the news, some products will be delayed payment. Moreover, on that day, investors found that the balance in the storm financial account could not be withdrawn. The so-called partial products will be delayed payment, in fact, all products except the enjoyable series of P2P products can not be cashed.
Some investors told TIME Finance and Economics that they were still hopeful about the platform of storm finance in the first two days. According to a voice recording provided by an investor, he called Storm Finance Customer Service on July 30, saying that there is a delay in cash withdrawal at present, and a solution will be given in two weeks. Customer service also allows investors not to worry, Cash will pay with interest and principal at that time. In the official VIP group of storm finance, customer service is the same.
In addition, according to some investorsstatements on Times Finance and Economics, on July 30, several investors found the First Enjoyment Science and Technology Building on College Road, Haidian District, Beijing, where Storm Finance is located. A customer service representative surnamed Liu of Storm Finance received them on the 13th floor of the First Enjoyment Science and Technology Building. According to the recordings provided by investors to Times Finance and Economics, the customer service representative claims to be the current person in charge of this matter, reporting directly to CEO Shi Huayu every two hours. But what the customer service representative said to investors on the same day was constantly smacked face.
For the reasons for the platforms problems, the customer service representative said it was related to Feng Xins detention. Its explanation to investors is that Feng Xin is the actual controller of storm finance, and many things of platform operation need Fengs authorization. Customer service representatives stressed that we did not have a lack of money, not a problem of funds.
On that day, some investors expressed their concern, Are the people in Storm Finance still working? Will there be no one left tomorrow?
The customer service representative laughed and said, How is it possible? We are listed companies.
On July 31, Storm Finance announced that it would resume withdrawal, but with restrictions, the withdrawal channel would be opened only on the 1st, 11th and 21st of each month, and only 1% of the balance of the account could be withdrawn at a time. Many investors said that the withdrawal scheme was unacceptable. According to this withdrawal scheme, the balance of each withdrawal is 1%, which will never be returned.
As a result, since August 1, investors have been rushing to Beijings first science and technology building from all over the country. However, the storm financiers have disappeared. Investor representatives told TIME Finance and Economics that after the incident, some investors rushed to the scene on August 2 and found that the 10-storey office space of the First Enjoyment Science and Technology Building announced by Storm Group had been empty. Previously, the 13-storey building where the Storm Finance Customer Service Representative receives investors has been unable to find the image of the Storm Finance staff. On the thirteenth floor, a notice was posted saying Storm Finance does not work here. After that, even the staff of Storm Group disappeared from the First Enjoyment Science and Technology Building. However, according to the announcement of Storm Group, a shareholdersmeeting without shareholders was held on the 13th floor of Storm Group on August 15.
As for the registration address of Storm Finance in No. 30 Shixing Street, Shijingshan District, some investors think it is only a virtual address, because after their visit, they found that the address did not have actual office space.
When Times Finance called Storm Finance Customer Service on Aug. 19, the other party said that the current customer service is working from home. Work at home is to ensure the normal order of the office. At present, we are also looking for a new office address.
On August 4, a week after the incident, Storm Finance admitted that its assets were overdue on its Storm Finance Subscription Number. The dynamic news shows that this week continue to sort out assets, actively communicate with financiers, and urge to solve the problem of overdue assets.
Two Tripartite Talks
According to the representatives of investors, in order to find the relevant personnel of storm finance, they ran around in many ways, and finally, under the coordination of Beijing Shijingshan Financial Services Office (hereinafter referred to as Shijingshan Financial Office), they met Shi Huayu, CEO of storm finance, on August 7. Shijingshan Finance Office arranged tripartite talks between some representatives of investors and Shi Huayu. Investor representatives expressed their desire to meet Storm Financial shareholders and publish Storm Financial Data and assets.
However, at the second tripartite meeting held on 14 August, shareholders were still absent, and representatives of investors did not see financial data and asset lists. Shi Huayu disclosed only about the information of investors and the classification of assets. He said the detailed data would be handed over to Shijingshan Finance Office, but could not be disclosed to investors. The reason why it cant be disclosed is that some borrowers still have repayment ability. If it is disclosed, investors will come to their doors, which will affect the operation of these companies, and eventually may lead to the failure to receive repayments.
According to the data published by Shi Huayu to the representatives of investors at that time, there were 4889 investors who invested more than 1000 yuan (RMB, the same below), involving about 500 million yuan in principal and 590 million yuan in interest. The classification of assets is: supply chain assets 430 million yuan, housing mortgage assets 130 million yuan, loans of other listed companies are 54 million yuan, a total of 620 million yuan.
Shi Huayu also announced the preliminary framework of the payment plan in the second meeting, which indicated that regardless of the regular current period, the principal should be paid at a certain proportion of the original principal in each quarter, and then the interest should be paid after the principal has been paid. The original principal refers to the cumulative amount of investment minus the cumulative cash withdrawal.
Investor representatives expressed inappropriate explanations of the original principal on the spot. Because many investors are investing repeatedly, and the profits generated in the process are extracted, there is not much possibility that they can actually pay according to this plan. In addition, investor representatives have always emphasized the issue of balance. The balance should not be confused with those regular and current products in the payment plan. The balance is our legitimate private property and can not be occupied by the platform. We require that the balance be paid by August 31. For the fixed-term products that are not due, the investor representative also said, Because the balance is occupied, investors have lost trust in the platform, so we require payment in advance, three months to complete the payment.
During the days talks, the historic parity of the questions and demands raised by the representatives of investors will be recorded. But for the requirement that the balance be paid before August 31, Shi Huayu said on the spot that it was unrealistic.
Shi Hua-yu said, If the company has enough cash, it will have cashed directly long ago, so there is no need to limit the withdrawal amount. But now the company has only tens of millions of dollars in cash to pay.
In addition, according to investors present on the same day, Shi Huayu expressed anxiety and excitement on many occasions during the talks, questioned the word we used by the investor representative loudly, and asked the investor representative who spoke, Can you represent all lenders? Even, investors mentioned that occupying the balance has been suspected of violating the law and is the current Happy Treasury product compliant? When waiting for questions, Shi Hua-yu said, No matter whether the product is compliant or not, no matter what, who do you like to look for? If you think its illegal, its OK to report it.
Discussions on Payment Schemes Questioned
Late in the night of the third day (August 16) after the second meeting, Storm Finance released a discussion draft of the payment plan to investors, indicating that it would seek their views. The discussion draft of payment plan is similar to the preliminary scheme framework given by Shi Huayu in the previous two daystalks. The original principal of less than 5,000 yuan will be cleared within 60 days; the original principal of more than 5,000 yuan and less than 50,000 yuan will be redeemed within 2.5 years, and then the partial payment of income will be completed within half a year; and the payment cycle of more than 50,000 yuan will be completed. Its 3 years + 0.5 years. In addition, the plan said that the introduction of third-party asset management companies to purchase from investors, will also introduce and implement physical, real estate, creditors rights, equity and other means of compensation, to meet the needs of some investors in advance liquidation.
This plan is far from the appeals of the representatives of investors at the second meeting, such as the balance should be paid before August 31 and the regular products that are not due should be paid within three months.
When an investor who did not participate in the talks saw the plan, he angrily said to TIME Finance and Economics, The longest tender for it (Storm Finance) is only one year. Now it takes three years to cash. How can we guarantee continuous payment?
Storm Financial Customer Service told TIME Finance and Economics on August 19 that the plan will be revised in the future, and investors can send their comments to the published mailbox.
Several investors told TIME Finance and Economics that they had feedback their disagreement with this plan to the e-mail of the Storm Financial announcement.
Starting on August 20, Storm Financial Subscription Number will issue a daily statement on the Cash Scheme Discussion Draft and declare that the scheme will be implemented after multiple rounds of demonstration and announce the information of one property each day on 21 and 22.
But investors are beginning to worry that the final storm will be enforced. There were outrages in Weixin Group and QQ Group.
At the same time, on the third withdrawal date of August 21, investors told TIME Finance and Economics that the fixed-term products purchased had expired, but no repayment was made to the balance account. Investors issued chat records with customer service show that after the investor consulted customer service about the situation, customer service said that temporarily no account, no fixed current period, according to the overall plan to pay.
Some investors said that if the expired products were not repaid to the balance, they would not be able to withdraw at 1%. But the customer service said, before disagreeing with the new plan, it should be implemented at 1%, the plan passed and the new plan implemented.
According to the investor, this is a disguised attempt to force the investor to agree to the new plan.
Is the product of Storm Finance left-handed to right-handed?
In addition to the payment plan, investors are most concerned about where is the money going?
In the second meeting, Shi explained why the money in the investors balance account could not be withdrawn. The reason is very simple. There is really not so much cash to support your withdrawal. Shi Huayu disclosed that in fact, there was a situation that borrowers were overdue before, that is, the company and its shareholders took out money to advance the repayment of investors. On the cushion, cash flow and assets do not match, overdue assets can not be repaid, and companies and shareholders can not pay the money now.
Shi Huayu also said that if there are borrowers who still do not cooperate in the later period, the detailed information of borrowers will be released to investors at that time.
The products in question include the periodic standard of Anxin Series and the current products of Happy Treasure and Every Day Up.
According to the product factor instructions obtained by Times Finance and Economics, the issuer, that is, the borrower, is mainly four companies, including Bujialong (Tianjin) Network Technology Co., Ltd. (hereinafter referred to as Bujialong) and Shenglian Finance Leasing Co., Ltd. (hereinafter referred to as Bujialong).u201c Shenglian Financing, Wuzhou Qingyang (Beijing) Investment Management Co., Ltd. (hereinafter referred to as Wuzhou Qingyang) and Shenzhen Rongcheng Commercial Factoring Co., Ltd. (hereinafter referred to as Shenzhen Rongcheng). The product listing institution is shown as Yinchuan Property Rights Trading Center (Limited) (hereinafter referred to as Yinchuan Property Rights Trading Center). In addition, the guarantors of some products are Huaxin Chuanglian (Beijing) Investment Management Co., Ltd. (hereinafter referred to as Huaxin Chuanglian) and Beijing Yintai Jinhong Technology Co., Ltd. (hereinafter referred to as Yintai Jinhong).
After the thunderstorm financial platform exploded, some investors called Shenzhen Rongcheng Industrial and Commercial Registration Information. The other side said it had paid the money in advance for fear of being implicated in the matter. Their company (Storm Finance) is supposed to have money on its books now, because we just paid it back. Its not a small amount of money. But when the phone is dialed after the time of Finance and economics, the other party will hang up directly after hearing the intention.
In the second meeting, Shi admitted that due to the companys cash flow problems, he had withdrawn money from Shenzhen in advance. People (Shenzhen Rongcheng) did not expire, we went to find many times, said a lot of words, people agreed to pay in advance.
As for the other issuers and intermediaries, Times Finance and Economics dialed the telephone numbers of companies that were inquired from Tian Eye and found that besides Shenglian Finance, which was registered in Shanghai Free Trade Pilot Area, the remaining two issuers, Bujialong and Wuzhou Qingyang, as well as the business registration data of Huaxin Chuanglian, the guarantee agency, had a common feature. The telephone number used. There are four telephone numbers displayed by Qingyang Wuzhou in Tianyan. The number at the beginning of 173 is Bujialongs, and the number at the beginning of 152 is duplicated with one of Huaxin Chuanglians numbers.
Times financial discovery, these issuers and intermediaries, there is a complex and hidden relationship.
The relationship between storm finance and its related parties. Cartography: Wang Weiwei of Time Finance and Economics
Bujalons shareholder change took place not long ago, and the shareholder named Li Liang, who is also the legal representative, withdrew in June this year.
Shenglian Guorong wholly holds a company named Huafeng United Information Consulting (Beijing) Co., Ltd (hereinafter referred to as Huafeng United). The former legal representative, executive director and manager of the company is Li Liang (former shareholder of Bujialong and present shareholder of Yintai Jinhong). In May this year, Li Liang withdrew from Huafeng Union shortly before he withdrew from Bujialong.
Huafeng United also has a wholly-owned holding subsidiary, Shenglian Weiye (Beijing) Enterprise Management Co., Ltd. (hereinafter referred to as Shenglian Weiye), whose legal representative, executive director and manager are Zhang Jinyu, the supervisor of Huaxin Chuanglian and the shareholder of Shenglian Guorong mentioned above.
Shenglian Weiye shares in Inner Mongolia Tianchen Network Information Service Co., Ltd. (hereinafter referred to as Tianchen Network). Tianchen Network is the operator of Enjoyment Series products of Storm Financial Platform, and Enjoyment Series is the only product that has not yet appeared problems. In the previous explanation of Storm Financial customer service to investors, Enjoyment is a P2P product, operated by Tianchen Zhituo (Tianchen Network), and storm finance is only the platform guide. In Anxin series products, the role of storm finance is intermediary information service provider.
In addition to Shenglian Weiye, the shareholders of Tianchen Network also have Inner Mongolia Tianchen Wisdom Technology Co., Ltd. (hereinafter referred to as Tianchen Wisdom). Likewise, in June this year, the information of Tianchens shareholders, directors and executives changed. Liu Donghui, the former shareholder, legal representative, executive director and manager, withdrew. Liu Donghui also resigned from the positions of Tianchen Network Leader and Chief Representative. Previously, in 2017 and 2018, Liu Donghui attended public events as co-founder and COO of Storm Finance for many times, and interviewed the media.
In addition, some investors told TIME Finance and Economics that they visited Bucharon, Qingyang of Wuzhou and Chuanglian of Huaxin on the spot, and did not find these companies in the registration address of the business information.
Many people in our group suspect that these companies are shell companies. These products are the self-financing pool of Storm Finance and even Storm Group. Investors who visited Bujalon on the spot said so about Time Finance and Economics.
When the representatives of investors questioned the direction of the funds in the tripartite talks, Shi Huayu answered, It must have been given to borrowers. There is no platform to take the money away.
However, from the above complicated related information, it can be found that some investors have received the reassurance series of product elements instructions, issuers (borrowers), intermediaries, operators, etc., are related enterprises of storm finance, and shareholders or executives frequently occurred in May and June of this year before Feng Xins accident. Information change.
The issuer does not know whether it is true or not, and the mortgage assets also make investors deeply suspicious. A property certificate of mortgaged real estate is attached to a product factor instruction provided by investors to the times finance and economics. But Times Finance and Economics scanned the two-dimensional code on the real estate certificate, and the page actually jumped to the micro-blog of a real estate sales office in Shanghai.
In response, Times Finance and Economics consulted real estate intermediaries, who said that the two-dimensional code on the real estate certificate should be scanned out of the relevant registration information of the house, different places are different. In some places, in order to protect privacy, the scanned data will be a series of numbers, which can be easily inquired by the Housing Authority. Ive never seen a microblog scanned before. Its strange.
The flow of funds has become a mystery
Regular bidding is not the biggest problem, I think the biggest problem is Happy Treasure. An investor representative who participated in the talks told TIME Finance and Economics.
The representative of the investor explained that the previously reassuring regular bid repayment was not to the bank account, nor to the investors balance account, but to return to Happy Treasury. All the repayments of the expired reassurance series periodic products are in Happy Treasure, plus Happy Treasures own funds, this part of the funds is the largest. Happy Treasury is a current product, unlike an issuer in a regular bid, Happy Treasury has no idea where its funds are going.
The statement of Ping An Bank Regulation has been bluffed. An investor called Peichen Branch of Ping An Bank in Tianjin and said, I dont know why they (Storm Finance) said that. We had no cooperation about three years ago. Times Finance and Economics also confirmed to Beichen Branch, the other side said, There has been cooperation before, but many years ago did not cooperate.
Yinchuan Financial Asset Trading Center changed its name to Yinchuan Property Rights Trading Center in 2017, which is the listing institution of Anxin series products. According to Tian Eye Check, the property rights trading center in Yinchuan is 77.6% owned by Storm Holdings, and the legal representative is Shi Huayu.
And Ningxia Baoxin is 100% controlled by Beijing Storm Chengxin Technology Co., Ltd. (hereinafter referred to as Storm Chengxin), and Storm Financial Platform is operated by Storm Chengxin.
According to public data, Storm Chengxin was formally established in October 2016 as a shareholding subsidiary of Storm Group.
Can Storm Group be held accountable?
According to the industry and commerce registration information of Storm Credit, Storm Group only holds 16.01% of the shares indirectly. The ultimate beneficiaries are Wei Zhenyu and Shi Huayu. Wei Zhenyu, a former manager of Storm Sports, withdrew from Storm Sports on December 25, 2018, but he still owns shares in several Storm Companies.
Whether it is customer service or Shihua Yu, it has always been emphasized that the actual controller of storm finance is Feng Xin. Storm Finance has shown itself to be a company of Storm Group in any previous publicity materials.
It is also because of Storm Group and Feng Xin endorsement, many users of Storm Video and Storm TV have become users of Storm Financial Platform. When Times Finance and Economics asked the investors why they chose the Storm Financial platform, the respondents said they were related to the storm group. Because I believe in storms, I believe in Feng Xin. When I know the platform of storms finance, I cast it without doubt. One investor said.
Because of this, coupled with the rapid repayment of financial products before the storm, many investors have repeatedly invested in the Storm Financial platform, and even pulled in family and friends.
I had already retired, but on July 25, the platform released a new product calledreassurance group earnings, so I came in again. One investor said.
Within the rights group, several investors are questioning the reassurance group products launched on July 25. Feng Xin was detained on the 23rd and released a new product on the 25th, which is fraud. The investors were very angry.
Until July 28, when Feng Xin was detained and Storm Finance announced a delay in payment, some investors felt that Storm Finance was in trouble.
When we found Shijingshan Financial Office, the people of the Financial Office said that they also knew about the products of the storm after the accident on July 28. Previously, they only knew that there were P2P products in Storm Finance (Enjoyment), and other products were not filed in Finance. An investor who found Shijingshan Finance Office a few days after the accident told TIME Finance and Economics.
Times Financial Call Shijingshan Finance Office, the staff who answered the phone refused to accept interviews, saying that the telephone hotline should be left to investors. As for the views on the discussion draft of the payment plan given by Storm Finance, the staff member said that only with the consent of investors can the financial records be filed.
In the previous second tripartite talks, when representatives of investors raised the question of how to ensure that the platform can continue to pay, Shi Huayu said that both the company and shareholders were raising funds everywhere.
In the previous financial storm, investors were also given a personal letter from Feng Xin, in which Feng Xin said, Even if you sell a listed company, you have to ensure the interests of investors.
However, in Feng Xins present situation, Im afraid there is nothing we can do about the whole storm.
Although Shi Huayu said at the beginning of the second tripartite talks that shareholders are also trying to raise funds. But finally, facing repeated inquiries from representatives of investors, Shi admitted that shareholders do not care about me. After the last conversation (the first meeting), I contacted shareholders, including the supervisor of Storm Group, Gao Dong. I found a circle and nobody wanted to come out.
In addition, although Feng Xin wrote a letter to investors, Shi Huayu did not receive Feng Xins authorization until the second tripartite talks on August 14.
The storm seems far from over.
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Source: Times Financial Responsibility Editor: Zhong Qiming_NF5619