Xu Maodong, Busen's Original Controller, Was Condemned By The Shenzhen Stock Exchange.

Xu Maodong, the original controller of Busen clothing Limited by Share Ltd of Zhejiang, violating the guarantee of 185 million yuan loan of Xu Maodong controlled company, was publicly condemned by the Shenzhen Stock Exchange.

The Shenzhen Stock Exchange pointed out that the following illegal practices were found in the actual controller and then director Xu Maodong of Zhejiang Busen apparel Limited by Share Ltd (*ST Busen):

Announcements, between August 2017 and October 2017, Xu Maodong, Busen's original actual controller and current director, suspected of forging or embezzling the official seal and secretly making the guarantee documents, was illegally guaranteed by *ST Busen in the name of *ST Busen under the name of *ST Busen. The total sum involved the total amount of 185 million yuan, accounting for 37.65% of the audited net assets at the end of 2017. The Zhejiang Provincial Higher People's court has made a final judgment on the violation of 100 million yuan principal guarantee (see 2019 (2019) Zhejiang civil No. 298 "civil judgment"), and *ST Busen has to bear joint liability for the violation of the 100 million yuan principal. According to *ST Busen's disclosure in January 26, 2019, February 13th and June 28th

*ST Busen's original controller and current director Xu Maodong failed to fulfill their duties and fulfill their obligations of good faith and diligence. It violated articles 1.4, 2.1, 2.2, 2.3, 3.1.5 and 3.1.6 of the Shenzhen Stock Exchange's Listing Rules (2014 Revision), and the guidelines for the standardized operation of the listed companies in the small and medium enterprises board (revised 2015), the provisions of article 1.3, 3.1.1, 3.1.2, 3.1.4, 3.1.9, 4.1.1, 4.2.1, 4.2.2, section x, Article X and Article 2.1 of the Shenzhen Stock Exchange.

In view of the above violation facts and circumstances, the Shenzhen Stock Exchange has decided to give public condemnation to the original controller of the Zhejiang Busen apparel Limited by Share Ltd and the then director, Xu Maodong, on the basis of relevant regulations.

The Shenzhen Stock Exchange said that the Zhejiang Busen apparel Limited by Share Ltd and the relevant parties involved in the above violations and the sanction given by the Institute will be credited to the public company's integrity files and made public to the public.

Public information shows that Zhejiang Busen apparel Limited by Share Ltd is a subsidiary of Busen group. According to the data of the sky eye, the Zhejiang Busen apparel Limited by Share Ltd was founded in 1985. The main business of the company is the design, development, production and sale of men's shirts, Western-style clothes, trousers and jackets, T-shirts and professional wear. At present, the company's real controller is Wang Chunjiang, holding a 14.11% stake in Zhejiang Busen apparel Limited by Share Ltd.