*ST Busen Former Director Zhao Chunxia And Other Love Investment Executives Collective Resignation

*ST Busen (002569, the Busen clothing Limited by Share Ltd of Zhejiang) issued a notice on September 16th evening, saying that former chairman Zhao Chunxia resigned to the listed company. Her other identity is Beijing P2P net loan platform, love investment real controller and legal representative. In addition, according to the *ST Busen bulletin, 5 non independent directors, such as snow cover, and 2 non staff representatives, Han Jia and others, submitted a written resignation report to the company for personal reasons, and no longer held any post of the company after their resignation. The reporter noted that 5 of the 7 resignation executives were in love investment.

According to the announcement, Zhao Chunxia, for verification, has resigned from his *ST Busen Fifth Board Chairman, chairman of the board of directors, chairman of the board of directors, members of the board of auditors, members of the nomination committee, and members of the remuneration and assessment committee. His resignation is consistent with the actual situation. At the same time, Zhao Chunxia resigned from the company's duties, no longer hold other duties of the company.

*ST Busen believes that Zhao Chunxia's resignation will not affect the normal production, operation and management of the company, and will not cause any significant adverse impact on the development of the company.

According to *ST Busen annual report 2018, apart from Bai Liang and Pan Yi, 5 people, including Feng Xue, Su Hong, Li Xin, Meng Fanqi and Han Jia, have served in the Beijing Financial Information Service Co., Ltd. Among them, the longest serving person is Han Jia. Since May 2014, she has been the financial manager of the AI investment platform.

In the first three days of the annual report, that is, in April 26th, Busen shares were officially "hats". On the same day, Busen shares issued a notice on the implementation of the delisting risk warning and suspension of the company's stock trading. The announcement indicates that since April 30th, the company's stock will be dealt with "delisting risk warning" specially, and the stock will be changed from "Busen shares" to "*ST Busen" for short.

In fact, 5 days before the announcement of "collective resignation" released on the evening of September 16th, the most important news of *ST Busen was a takeover announcement. According to the announcement, based on the long-term development plan of the company, in order to speed up the layout of the company in the field of financial science and technology and expand the source of business income, the company intends to acquire the 60.4% equity interest of Guangdong letter Agel Ecommerce Ltd (hereinafter referred to as "Beijing letter exchange"), which is held by Yi Hui Hua (Guangdong) Technology Co., Ltd. (hereinafter referred to as "Yi Lian Hui Hua"), with a transaction consideration of RMB 138 million 316 thousand yuan.

According to the announcement, Guangdong letter and exchange is a payment company holding the bank card receipts payment business license issued by the people's Bank of China. *ST Busen hopes to get the business license of the bank card acquiring business through the acquisition, and then cut into the third party payment business.

It is unclear whether *ST Busen can buy and restart its business. Prior to that, *ST Busen was more aware of the fact that whether the net loan platform involving nearly 100 thousand lenders had been registered on the scale of nearly 13 billion yuan. To this end, Zhejiang Securities Regulatory Commission, Shenzhen Stock Exchange and other regulators continue to pay attention to the letter.

Official website information disclosure, love investment on the line in March 31, 2013, affiliated with an investment and Finance (Beijing) Network Technology Co., Ltd., listed companies and venture capital shareholders background, B round of financing 250 million yuan. As of September 1st, the scale of love investment and lending was 12 billion 857 million yuan, the current number of loans was 96 thousand and 800, and the overdue amount was 11 billion 433 million yuan, of which the overdue 90 days (excluding) amounted to 8 billion 736 million yuan.

In June 14th, the Beijing News reporter had telephoned Beijing police station, Haidian branch of the Public Security Bureau of Haidian, where AI was invested in business registration. Police officers told reporters at the time that the police had accepted a report on suspected illegal investment in public deposits. At that time, the police did not mention the formal filing of love investment to reporters.

4 days later, in the evening of June 18th, *ST Busen replied to the Zhejiang securities regulatory bureau's inquiry that it was verified that as of the date of the announcement, AI investment platform had not been investigated by public security organs. Zhao Chunxia was being treated overseas without fixed residence.

2 months later, the Shenzhen Stock Exchange once again issued a letter of concern to Zhao Chunxia, chairman of the *ST Busen, on the performance of his duties as well as his P2P lending platform.

On the evening of August 30th, *ST Busen replied, "after verification, as of the date of this announcement, AI investment platform has not received written notification from the public security organs for investigation. Regarding the online case of "love investment being investigated", the company called the relevant departments, unable to verify the relevant information. At the same time, "Zhao Chunxia is being treated because of poor health, so far he still insists on attending meetings of the board of directors and company management by telephone conference and personally approving matters requiring director approval in the course of production and operation". *ST Busen believes that the company operates independently of its investment platform without any business transactions or financial dealings. Therefore, there is no significant impact on the day-to-day operation of the company.