Busen's Controlling Shareholders Illegally Occupy 2 Million 900 Thousand Regulatory Letters, Which Have Evaporated For 7 Billion Years.

In July 11th, the Shenzhen Stock Exchange issued a letter of supervision to the Busen clothing Limited by Share Ltd of Zhejiang (hereinafter referred to as "*ST Busen"), which violated the relevant provisions of the Shenzhen stock exchange because of controlling shareholders and other related parties occupying funds. The letter of supervision requires the company to pay full attention to the above problems, draw lessons from it, put forward rectification measures in a timely manner and disclose them externally, so as to eliminate the recurrence of these problems.

In April 29, 2019 and June 17th, *ST Busen disclosed the "special audit instructions on controlling shareholders' and other related party's occupying funds", "notice on the annual inquiry letter" and other announcements. Between June 2018 and July, *ST Busen's controlling shareholder saw that the amount of non operating capital occupied by technology was 2 million 900 thousand yuan.

The Shenzhen Stock Exchange reminded *ST Busen and an Technology: the shareholders and actual controllers of listed companies and listed companies should abide by the laws and regulations, the rules of stock listing of Shenzhen Stock Exchange, and the guidelines for the standardized operation of listed companies of small and medium-sized enterprises, so as to be honest, trustworthy and standardized, and fulfill the obligation of information disclosure in a serious and timely manner.

Earlier, ST Busen issued a notice in late June, calling the 5 shareholders jointly sent a letter about the request for a temporary shareholders' meeting. The shareholders together hold 14.70% of the shares of the listed company, demanding the recall of the actual controller Zhao Chunxia.

According to the announcement, the 5 shareholders are shareholders of the listed company Busen group (shareholding 2.66%), shareholders of listed companies Meng Xianglong (shareholding 4.31%), Zhang Xu (holding 3.29%), listed company shareholder Chongqing Xin Sanwei Investment Consulting Center (limited partnership) - Changsheng eleven Private Equity Fund (holding 2.92%) (referred to as "Chongqing Sanwei"), Zhang Xingliang (shareholding 1.52%).

The 5 shareholders drew away from Zhao Chunxia, Feng Xue, Bai Liang, Su Hong, Li Xin and Meng Fanqi as independent directors and removed Pan Yi and Han Jia supervisor positions.

Busen shares had said that Zhao Chunxia, chairman of the company, was being treated overseas because of his health and was unable to participate in the talks in person himself. At the same time, Busen shares said that Zhao Chunxia has always insisted on participating in the company's operations, and the overall deployment work is not unsuitable for continuing to be chairman of the board.

However, taking stock of all previous announcements of Busen shares, Zhao Chunxia has suffered from "embarrassment" since he took over Busen shares from 1 billion, and Zhao Chunxia's P2P platform still overruns her love investment. Data from his official website show that as of June 2nd, the balance of platform lending was 12 billion 952 million yuan, and the overdue amount was 9 billion 760 million yuan, of which 5 billion 624 million yuan overdue 90 days or more.

Busen stock announcement also mentioned that since July 2018, borrowers have experienced a large number of overdue repayment. The platform has tried to resolve risks by increasing collection efforts, litigation, debt to equity swap, creditor's rights barter, and setting up SPV. As of June 17, 2019, the platform accumulated 157 enterprises to prosecute borrowers, involving more than 4 billion 600 million yuan.

The reporter learned that in 2011, after *ST Busen landed at the Shenzhen Stock Exchange, its operating income dropped from 715 million yuan in the year of listing to 452 million yuan in 2014, and net profit fell from 53 million yuan to -1.03 billion yuan in the same period.

The Shou Caifeng family originally held 59.55% of the company's shares and reduced it from 2014 to the end of the first quarter of 2019, with only 2.82% remaining shares.

In 2015, Busen group, the original controlling shareholder of the company, opened its way.

In March of that year, Busen group also signed a share transfer agreement with Shanghai Rui Fei assets and investment fund. The 41 million 800 thousand assets owned by Busen group were awarded by Shanghai Rui Wei assets. The natural person Qiu Li agreement agreed to share the 14 million shares of the investment company and Busen group.

Since then, the company's real controller has changed for the first time. The controlling shareholder has changed from Busen group to Shanghai Rui Fei assets, and the actual controller has changed to Yang Chen, Tian Yu, Mao Guiliang and Liu Jing. The proportion of assets held by the company is 29.86%.

After leaving the Shou family, Busen's stock performance almost stagnated, but this "shell resources" made the capital crazy chase.

In August 2016, Xu Maodong controlled the Xinghe win and Lhasa Xingxing at a price of 1 billion 12 million yuan, which allowed the controlling shareholder of the company, Shanghai Rui Wei, to have a 95.02% stake in the assets. Xu replaced Yang Chen and others as the new real controller.

The third change was in October 2017. Shanghai Rui's assets signed a transfer agreement with the security technology company, which transferred the 16% stake of Busen shares to 1 billion 66 million yuan and entrusted the voting rights of the 19 million 400 thousand shares to the latter. The company also controls 29.86% of the voting rights of the company.

The controlling shareholder of the company has changed from Shanghai Rui Fei assets to security technology, and the real controller of the company has been changed from Xu Maodong to Zhao Chunxia.

At present, being asked to replace the P2P and the overdue crisis, Busen shares and real controller Zhao Chunxia are in great difficulties. According to the results, in 2017 and 2018, Busen shares realized 244 million yuan and 320 million yuan respectively in operating income, respectively, and realized net profit of -3380.7 million yuan and -19282.22 million respectively for shareholders belonging to listed companies. The net cash flow generated by business activities was respectively -996.92 million yuan and -4745.05 million yuan, and the main business performance deteriorated. As a result of two consecutive years of loss in 2017 and 2018, the company was warned of the risk of delisting.

The reporter learned from the earnings report that in 2018, 422 stores in Busen stock were classified according to the type of stores, including 81 total outlets and 341 joint stores. In 2018, the business revenue of the company's direct store was 60 million 432 thousand and 900 yuan, and the sales revenue of the franchise store was 149 million yuan. Meanwhile, during the reporting period, according to the operation and sales of the stores, Busen shares closed the stores with poor sales, and the total number of stores closed in 2018 was 14. Busen's marketing team is also looking for suitable locations nationwide to actively open new stores, and the number of new stores in 2018 is 21.

In 2018, Busen realized 319 million yuan in operating income, a 6.99% decrease compared with the same period last year, and a net loss of 192 million yuan attributable to shareholders of listed companies, a decrease of 470.36% compared with the same period last year. For the decline in performance, Busen shares explained that in 2018, the company's clothing business was affected by the weakening of the overall market situation, the reduction of customer orders and the decline in revenue. In addition, as the company added three cases in 2018, the total amount of litigation claims amounted to about 236 million 900 thousand yuan, including Zhu Dandan litigation and Xin Rong wealth cases. If the company loses the lawsuit, the company will face a larger amount of compensation, which will adversely affect the company's cash flow and production and operation.

It is understood that *ST Busen shareholders Busen group limited in July 5th on the Shenzhen stock exchange through the centralized bidding method to reduce 1 million 275 thousand and 200 shares, the shares reduced by 0.91%, after the change of equity, the shareholding ratio is 2.66%.

As of July 5th, shareholders Busen group completed the 1 million 275 thousand and 200 share reduction through centralized bidding in the Shenzhen stock exchange. Before the change of interest, Busen group held 3.57%, and the shareholding ratio was 2.66% after changes in equity.

The announcement shows that the price reduction interval is 9.404-14.037 yuan / share, and the reduction is about 17 million 900 thousand yuan.

The company's annual report 2018 shows that in 2018, the net profit attributable to shareholders of listed companies was -1.93 billion yuan, an increase from the same period last year.

By the end of yesterday's press release at 10:53 yesterday, the performance of *st Busen two class market was still not so ideal. Its stock price was 58.55 yuan from April 2017 to 9.41 yuan in June 24, 2019, and its share price had dropped 80%, and its market value evaporated at least 7 billion.