*ST Busen Exposure After 85 Beauty Chairman Ran, The Stock Price Unexpectedly High Limit.

As the deadline for delisting is approaching, there is not much time left for *ST Busen. *ST Busen shareholders' internal struggle has not only eased but upgraded again.

In August 20th, *ST Busen released a reply notice on the letter from the Shenzhen Stock Exchange. In the announcement, the company shareholders Busen group bluntly stated that "the board of directors led by Zhao Chunxia is unable to reverse the deterioration of the operation of the listed companies, and Zhao Chunxia himself runs away."

However, it is unexpected that the announcement of the announcement made the company's stock price strong. As of yesterday's close, the stock reported 8.40 yuan.

　　 The six major shareholders unanimously demanded the recall.

On the evening of August 14th, the announcement of *ST Busen announced that it had received the letter submitted by the first largest shareholder, Dong Heng Zheng, to the board of supervisors on the proposal submitted to the provisional shareholders' meeting in recent days. Dongzheng Heng invited 6 people such as Wang Chunjiang and Du Xin to be elected non independent directors of the company, and elected Deng Deng Feng and Gao Peng as supervisors of the company's non staff representatives. He also proposed that the proposal be submitted to the company's first provisional shareholders' meeting in 2019.

*ST Busen board of supervisors responded in the announcement that the two motions concerning nominating the fifth independent directors of the board of directors and nominating the non staff representative supervisors of the board of supervisors were "in fact difficult to operate" and other reasons. They did not agree to submit this provisional proposal to the provisional shareholders' meeting for consideration.

Subsequently, the Ministry of management of the SME Board of the Shenzhen Stock Exchange issued a letter of concern to Busen, requiring detailed explanations on the motion of the shareholders' meeting to consider the removal of all directors and supervisors and not for the simultaneous election of new directors and supervisors. At the same time, we request Dongfang Heng Zheng and other shareholders who proposed to recall and elect directors and supervisors to explain whether there is an agreement between the shareholders concerned about whether the number of *ST Busen voting rights can be expanded or whether the above shareholders are the same parties and their reasons.

Enquiries revealed that at present, Dongheng is holding 16% of Busen shares, while Busen group, Chongqing Xin Sanwei, Zhang Xingliang, Meng Xianglong and Zhang Xu share 2.82%, 3.13%, 1.57%, 4.31% and 3% respectively. Among them, Zhang Xingliang and Zhang Xu were the new shareholders in the 2019 quarterly report, and the eastern Heng Zheng took 16% shares of Busen shares by auction in May.

In the related notes of the reply, the 5 shareholders will be invited to convene the provisional shareholders' meeting and submit the directors and supervisors such as Zhao Chunxia to be removed. The reason why Zhao Chunxia's board of directors is unable to reverse the deterioration of the operation of the listed companies will be attributed to Zhao Chunxia.

In the announcement of Dongfang's constant announcement, it is said that since the judicial auction became the largest shareholder of the listed company, the minority shareholders are very worried about the current situation of the listed companies, and are seriously dissatisfied with the current board of directors, the board of supervisors and management. They strongly hope to start management replacement as soon as possible, and improve the operation of listed companies as soon as possible, and strive to maximize losses and win the battle.

It is reported that Zhao Chunxia has not been to the Zhejiang Securities Regulatory Commission's interview since August 15, 2018. In June of this year, *ST Busen also said that after asking Zhao Chunxia, he was being treated overseas because of his health reasons. He failed to participate in the talks in person, but maintained regular and timely communication with the regulatory staff of the Securities Regulatory Commission.

　　 *ST Busen fighting those things

*ST Busen announced in the evening of June 24th that the company received a letter from the 5 shareholders of Busen group, Meng Xianglong and other 5 shareholders jointly asked to hold a provisional shareholders meeting on June 21st, requesting the recall of 6 non independent directors and 2 incumbent supervisors, including Chairman Zhao Chunxia, general manager, and so on.

At the same time, *ST, Busen's largest shareholder, Dong Heng Zheng, also sent a letter to the listed company to submit a proposal to the provisional shareholders' meeting. Nominated Wang Chunjiang, Du Xin and other 6 people as non independent directors of *ST Busen, nominated Deng Deng Feng and other 2 people as non staff representative supervisors.

The letter from Dong Heng Zheng said that the election of new independent directors and supervisors of Busen *ST was based on the premise that the existing independent directors and supervisors of the listed companies were removed according to law or there were vacancies in their seats.

In the face of major shareholders' "abdication", the current board of directors began to fight back. *ST Busen has said that Zhao Chunxia, chairman of the board of directors, performed the duties of directors in accordance with the provisions of laws, administrative regulations and articles of association. He made great efforts to optimize the company's structure and expand the new retail business, and actively deal with the problems left over by the company, so as to avoid having a significant adverse impact on the production and operation of listed companies.

For the current counter attack of the board of directors, the "big shareholder camp" soon launched the "second round offensive". In the evening of August 19th, when *ST Busen replied to the notice of concern Letter No. 313rd of the Shenzhen Stock Exchange, Busen group, Chongqing Xin Sanwei Investment Consulting Center (limited partnership) - Changsheng eleven private equity fund, Zhang Xingliang, Meng Xianglong and Zhang Xu 5 shareholders clearly stated that "Zhao Chunxia led the board of directors will not be able to reverse the deterioration of the operation of the listed companies, Zhao Chunxia himself is on the road."

　　 P2P platform exploding, *ST Busen being affected

Zhao Chunxia's being forced to go to court is not related to the overdue investment in his love investment. It is understood that Zhao Chunxia began venture capital in 2010, and founded P2P platform in 2013 to invest in love.

In October 2017, *ST Busen announced that it would transfer the 22 million 400 thousand shares of *ST Busen to Zhao Chunxia's security technology, priced at 47.6 yuan per share, with a total transaction price of RMB 1 billion 60 million yuan. At the same time, Rui assets transferred the remaining 19 million 400 thousand shares of voting rights to the security technology. The technology became the largest shareholder of *ST Busen, and Zhao Chunxia became the actual controller of the company.

It is worth mentioning that since the actual control of *ST Busen in 2017, the performance of the company has not been satisfactory. According to the publicly disclosed financial data, in 2017 and 2018, *ST Busen realized operating income of 244 million yuan and 320 million yuan respectively, and the net profit attributable to shareholders of listed companies was -3380.7 million yuan and -19282.22 million yuan, down 612.26% and 470.36% respectively from the same period last year.

Last July, Zhao Chunxia's core asset was invested in exploding thunder. In the June 18th announcement, *ST Busen shares 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. At present, under the guidance of national thick assets, accounting firms and law firms are conducting special audits of the platform over the years and checking the capital flow of related products. At the same time, the overall disposal and recovery plan is being worked out.

At present, the data disclosed by love investment official website show that as of August 1, 2019, the number of loaned loans currently was 95 thousand and 800, the loan balance was 12 billion 909 million yuan, the overdue amount was 11 billion 110 million yuan, and the total amount of compensation was 5 billion 484 million yuan.