It Is Impossible To Verify That The Authorized Busen Shares Will Not Be Held Temporarily.

In July 2nd, *ST Busen (002569.SZ) issued a notice on the shareholders' proposal to convene the first provisional shareholders' meeting in 2019. The announcement made a reply to the letter on request for temporary shareholders' meeting issued by Wang Chunjiang, Li Ming and others in June 21st (hereinafter referred to as the "proposal letter").

According to the letter of recommendation, Busen Group Limited (holding 2.66%) and Wang Chunjiang were entrusted by the shareholders of the listed company, Meng Xiang Long (shareholding 4.31%) and Zhang Xu (shareholding 3.29%), and Li Ming was entrusted by 5 shareholders of Chongqing Sanxin (holding 2.92%) and Zhang Xingliang (shareholding 1.52%) with a total shareholding of 14.7% of the listed company shareholders. The letter was sent to the board of directors of the company to convene the first provisional shareholders' meeting in 2019, calling for the removal of the chairman Zhao Chunxia, the general manager, the chief financial officer, and the non independent director, Bo Liang, Su Hong, Su Hong, supervisor, and supervisor.

In May of this year, Beijing Dongfang Heng Zheng technology and Trade Co., Ltd. (hereinafter referred to as "Dongfang Heng Zheng") took 22 million 400 thousand shares of listed companies held by the technology through auction and became the largest shareholder of *ST Busen.

The current board of directors of Busen shares pointed out in its reply that the company was unable to verify whether Li Ming and Wang Chunjiang had obtained all the authorization of the relevant shareholders to entrust their proposal to convene the provisional shareholders' meeting. According to the articles of association, the proposal letter should be accompanied by a proposal letter from the relevant shareholders entrusted by Li Ming and Wang Chunjiang to exercise the proposal to convene the provisional shareholders' meeting, but the proposer has not yet provided all the documents to the company.

In addition, the incumbent board said that the incumbent directors and supervisors of Busen shares are diligent and conscientious in performing their duties and do not appear to be unsuitable for directors and supervisors in accordance with the laws and regulations.

The board also mentioned in particular that the Fifth Board of directors and board of supervisors of the company are taking measures in the aspects of business and strategic development, risk prevention and control, and settlement, so as to make profits in 2019 and eliminate the risk of delisting as soon as possible so as to protect the legitimate rights and interests of all shareholders, especially small and medium-sized shareholders.

Based on the above, the incumbent board asks the proposer to re-examine and comprehensively assess the serious adverse consequences which may result from other shareholders and listed companies. It is considered that there are no conditions for holding the company's provisional shareholders' meeting and deliberating relevant proposals.

According to previous *ST Busen reply to the Shenzhen Stock Exchange announcement, *ST Busen real controller Zhao Chunxia deep in the P2P platform love investment overdue crisis, has not appeared for nearly a year.