*ST Busen Tens Of Thousands Of Shareholders Frequent Thunder, The Original Real Controller Xu Maodong Violation Guarantee Hundreds Of Millions Of Funds Were Condemned.

Zhejiang Busen dress Limited by Share Ltd (hereinafter referred to as "*ST Busen") is in an awkward position again. On the afternoon of July 15th, the Shenzhen Stock Exchange (hereinafter referred to as the Shenzhen Stock Exchange) issued a notice on the public condemnation of the original controller of the Busen dress of Zhejiang Busen, Xu Maodong.


After investigation, *ST Busen "actual controller and current director Xu Maodong had the following irregularities: according to the announcement of *ST Busen in January 26, 2019, February 13th and June 28th, during August 2017 to October 2017, *ST Busen's original actual controller and current director Xu Maodong suspected that by forging or embezzling the official seal and secretly making the guarantee documents, in the absence of *ST Busen's meeting of the board of directors and the general meeting of shareholders to consider the procedure, *ST secured the violation of the loan of the company controlled by Xu Maodong under the name of *ST Busen, involving a total of 185 million yuan, accounting for 37.65% of the audited net assets at the end of 2017, among which the Zhejiang Provincial Higher People's court had made a final judgment on the 100 million yuan principal violation guarantee.


It is decided that *ST Busen should bear joint and several liability for breach of the 100 million yuan principal guarantee.


*ST Xu Maodong, Busen's original controller and current director, failed to fulfill his duties and fulfill his duty of integrity and diligence. He was responsible for the above violations of *ST Busen.


The decision of the Shenzhen Stock Exchange: to punish Xu Maodong, the original controller of Zhejiang Busen apparel and the then director of the Limited by Share Ltd, and to punish the Zhejiang Busen dress Limited by Share Ltd and the relevant parties for the above violations and the sanction given by the company.


The first textile network has reported that the Shenzhen Stock Exchange issued a regulatory letter to *ST Busen on 11 July, 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.


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.


Public information shows that the main business of Busen shares is the design, production and sales of men's brand clothing, with Busen's men's clothing as the main brand. 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 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 *ST Busen real controller has changed for the first time. The controlling shareholder has changed from Busen group to Shanghai Rui Fei assets, and the real 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 Busen shares changed from Shanghai Rui Fei assets to security technology, and the real controller of the company was changed from Xu Maodong to Zhao Chun Xia.


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.


In 2018, there were 422 stores in Busen stock, which were classified according to the types of stores. The total number of direct shops was 81, and the total number of joint shops was 341. 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.


By the end of the press release, *ST Busen reported 9 yuan / share, or 1.24%, and its market value was 1 billion 258 million yuan. As of the end of the first quarter of 2019, the number of shareholders of *ST Busen reached 11 thousand and 100, representing a decrease of 849 households compared with the previous period, with an average holding of 12 thousand and 500 shares per household.