Stepping on the tuyere, but not being recognized by the market, this is really a tragedy for a technology company.
I once thought that the metaverse would be another outlet, however, since Facebook changed its name to Meta and went all out to sprint to the metaverse, the situation has changed. Many companies have been influenced by Meta and have begun to transform into the metaverse field, investing a lot of resources and energy.
However, due to technical limitations and insufficient hardware maturity, Meta's attempt in the metaverse ultimately failed. Zuckerberg had to refocus major resources on artificial intelligence. Fortunately, due to the timely stop loss, Meta's stock price began to recover, and it came out of a wave of doubling**.
As the world's largest metaverse company, Meta's transformation has brought a lot of trouble to thousands of "followers", and Feitian Cloud is one of them. In October 2022, Feitian Yundong was listed on the Hong Kong Stock Exchange under the name of "the first share of the metaverse", and it was surprising that "metaverse" was mentioned 321 times in its prospectus.
However, despite enjoying the title of "the first share of the metaverse", the "meta" of Feitian Yundong is not so real, and the Economic Observer has disclosed that Feitian Yundong is actually an AR VR marketing service company, whose main business is advertising services, and does not have too many core technologies.
After Feitian Yundong was listed, it was not recognized by the market, and the stock price broke on the first day of listing. Fortunately, the popularity of the concept of the metaverse has made artificial intelligence quickly become a hot topic in the world, and Feitian Cloud has also gained a wave**.
Disappointingly, however, this boom did not last long, with the share price starting a miserable ** after a brief peaking period. According to statistics, the stock price ranges from a maximum of 5HK$21 shares have fallen by more than 90%, and the market value has evaporated by more than HK$8.4 billion, leaving less than HK$1 billion.
What's even more remarkable is that Feitian Yundong has been removed from the constituent stocks of the Hang Seng Composite Index, and has also been removed from the list of Hong Kong Stock Connect by the Shenzhen Stock Exchange and the Shanghai Stock Exchange. Affected by this, on March 4, its stock price once exceeded 30%.
With the change of the global outlet, it is also a big change in five years and a small change in three years. Whenever a new hot concept emerges, there are always some listed companies that try to take advantage of the limelight and push up the stock price by hyping the concept in an attempt to make a profit. After the concept of the metaverse became popular, not only first-tier Internet companies, but even companies such as Zhongqingbao and Tianxiaxiu have launched metaverse businesses, and even consumer companies such as Nai Xue's tea and Mixue Bingcheng have also joined the ranks of the metaverse.
At that time, Feitian Yundong hit the IPO with the label of "metaverse concept", and the capital market gave a good valuation to it. According to the data, Feitian Yundong, formerly known as Beijing Zhangzhong Feitian Technology Co., Ltd., was jointly funded by Yang Xuekai, Guo Xiaofeng, and Song Pengpeng.
It was originally a game publishing platform. In 2009, Wang Lei served as the general manager of Flying in the Palm of his hand, and led the creation of a number of stand-alone games, including "God of Drag Racing", "Alice in Wonderland", "Interstellar Armament" and so on. Until 2017, as mobile games became the mainstream of the market and the rise of VR, Wang Lei advocated the transformation to AR VR services. At the same time, the company is also listed on the list.
Two years later, Feitian Cloud announced the completion of the transformation to the AR VR content and service business, quickly delisted from the company, and carried out 5 rounds of financing. In 2021, the popularity of the concept of the metaverse made the company see the "opportunity", and once again transformed and officially laid out the metaverse field, and the company's name was changed from Feitian in the palm of your hand to Feitian Yundong. For the behavior of chasing the wind, Wang Lei summed it up in four words: follow the trend.
Only a month after the strategic transformation, Feitian Cloud began to sprint to Hong Kong stocks. According to the content of its prospectus, from 2019 to 2021, the revenue of Feitian Yundong AR VR marketing services was 13.7 billion yuan, 14.2 billion yuan, 36.7 billion yuan, accounting for respectively. 2%。That is to say, in essence, Feitian Cloud is still an AR VR marketing service company. To sum up the flying clouds in one sentence, that is, "always chasing the wind".
However, as the market matures, so does the cost of chasing the wind, until it may be eliminated from the market. After Feitian Yundong was successfully listed on the Hong Kong stock market, the stock price began a long road after a short period of time. It is clear that the market is gradually becoming immune to "concept stocks".
It is worth noting that the node of "cliff-like"** in Feitian Cloud is in the window period when the 2022 annual report is announced. According to its 2022 financial report, the annual operating income was 106.6 billion yuan, a year-on-year increase of 7910%；Net profit attributable to the parent company was 23.7 billion yuan, a year-on-year increase of 23724%。
Not only that, the company's 2023 interim results still continued to grow, with revenue reaching 59.9 billion yuan, and the net profit also reached 11.6 billion yuan. However, even with such excellent performance, it failed to win the recognition of the market.
Some brokerages have also been unlucky. Just after they released their financial reports, Everbright ** said that although it had released good news about the progress of AIGC and emphasized the potential reliability risks for entertainment game content, the market has given high recognition to the creativity and interactivity of AIGC, and it is expected that the promotion of AIGC may exceed expectations, so the valuation of the game sector is expected to increase. Everbright** even recommends paying attention to the movements of the flying clouds.
In addition to Everbright**, Chen Li, manager of Guolian**, also included Feitian Yundong in the seventh largest heavy stock of Guolian Shanghai-Hong Kong-Shenzhen Consumption in the fourth quarter of last year. At that time, the market value of Feitian Cloud was less than HK$3 billion, and the valuation was only 8 times.
Although a well-known brokerage firm in Shanghai has a positive view on the long-term development of the Hong Kong-listed company Feitian Yundong in an in-depth research report, emphasizing that its management has taken the initiative to promise not to take shares, this move demonstrates their firm confidence in the company's future. Referring to the valuation benchmark of the A-share listed company Fengyuzhu, the report**Feitian Yundong will have about 32% upside potential from September 2023.
However, this optimism** did not translate into a strong return on investment. In the face of the ensuing stock price decline, the management team of Feitian Cloud was under tremendous pressure. Specifically, in August 2023, the controlling shareholder further made a commitment not to hold any shares in the next six months, and the company launched a buyback plan of up to HK$70 million in an attempt to stabilize market confidence.
However, even the release of these positive news has not been able to effectively stop the momentum of the stock price decline. After entering 2024, the company's stock price is off a cliff**, with an annual decline of more than 71%.
In response to the sharp fluctuations in the stock price, Feitian Yundong issued an official statement, saying that after a rigorous investigation, it is not yet possible to determine the specific cause of the stock price. At the same time, the company made it clear that its day-to-day operations are normal and there has been no material change in its financial position. In addition, the controlling shareholder, members of the board of directors and senior management have not implemented the act of shares**, and there are no ** plans on the agenda in the near future.
Some senior financial observers have pointed out that the current capital market has entered a critical stage where the value of the real economy is becoming more and more prominent. In this context, only by rapidly improving the growth momentum of the main business and verifying its own strength with real performance can enterprises regain the trust and support of the market.