Busen Shares Never Fail Alone, Sinking 236 Million Loan Disputes Annual Report Loss Of Nearly 200 Million

Six months ago, Busen shares were dragged down by loan disputes.

On the evening of January 25th, the announcement of Busen (SZ.002569) returned a letter of concern from the Shenzhen Stock Exchange to the company's loan disputes.

According to the announcement, there are three loan disputes involving Busen shares. There are 137 million 500 thousand yuan, 49 million 660 thousand yuan and 48 million 740 thousand yuan loan disputes with the borrowers of the Deqing County SME financial services center limited, Zhu Dandan and Shenzhen Xin Rong financial Cci Capital Ltd (the "letter and fortune" platform), together with a total amount of about 236 million yuan.

Busen shares said it was once again self checking that there was no loan relationship or guarantee relationship between the company and the litigants. The company did not receive any loan funds from Deqing small and medium enterprises, Zhu Dandan and Xin Rong wealth.

The above external guarantee has not fulfilled the deliberation procedure of the external guaranty of the listed company (i.e., it has not been examined by the board of directors and shareholders' meeting of the listed company), nor has the internal seal seal process been used. The main management of the company is not aware of the existence of this external guarantee. The Busen company is unable to determine whether the company seal is the company's legal seal, and it does not exclude the fact that someone has forged the official seal or the company's name. The listed company has reported to the Zhuji Police Station Maple Bridge police station.

Although Busen shares said that the above arbitration case is in the investigation stage and has not yet been tried, whether the company has external guarantee or whether it has to bear the liability for security remains to be decided by the court of arbitration. However, in the Busen performance amendment announcement January 14th, the corresponding liabilities for the above proceedings have been calculated. This is also one of the reasons leading Busen to slash its performance in 2018.

Announcements show that Busen shares 2018 performance is expected to decline 447%-486% over the same period, the loss range from 185 million yuan to 198 million yuan. Prior to the three quarterly report, the company expects 2018 net profit growth of 94.08% to 114.79% over the same period, and the net profit change range is -200 yuan to 5 million yuan.

While the company is bogged down in huge loan quagmire, Busen shares may face second changes in real terms in two years.

In October 19, 2017, Rui's assets and Zhao Chunxia's controlled technology signed an equity spanfer agreement: Rui Fei spanferred the 22 million 400 thousand shares of Busen shares (16% of the total share capital of the listed company) to Andy technology. The price of the shares of the technology spanferee was 47.60 yuan, and the spanfer price of the shares was as high as RMB 1 billion 60 million yuan. At the same time, the voting rights of the 19 million 400 thousand shares of Busen shares (13.86% of the total share capital of the listed company) will be entrusted to the security technology. In this way, technology has become the largest shareholder of listed companies, and Zhao Chunxia has become the actual controller of the company.

However, due to the failure to resolve the 250 million debt dispute with Warburg trust, all Busen shares held by Busen will be forced to be publicly auctioned in mid February, and the relevant shares will account for 16% of the total share capital.

In addition, all 19 million 400 thousand shares of the second largest shareholder of Busen shares have been frozen by the Zhejiang Provincial Higher People's court, and frozen shares account for 13.86% of the total share capital of the company. The company announcement shows that the frozen shares are at risk of being auctioned and sold by law.

For the real controller Zhao Chunxia, who holds 29.86% stake in Busen shares, if the auction is completed, it will probably mean that the actual control rights of the Busen shares that had been purchased for 1 billion would be handed over to others. Author: Li Lanqing