*ST Busen Replied: "The Chairman Recuperate From Abroad, And The Resignation Of The General Manager Is Different.

On the evening of June 18th, *ST Busen (002569, SZ) issued a series of announcements for the day ahead. Shenzhen Stock Exchange And the Zhejiang Securities Regulatory Commission replied to the company's letter of concern, including the whereabouts of chairman Zhao Chunxia, and the real situation and progress of "suspected investment in the investigation".

Reporters noted that on the recall of general manager Chen Jianfei, the company replied and Chen Jianfei's statement appeared obvious inconsistency.

The chairman left the border.

Zhao Chunxia, chairman of the company, has not been interviewed by the Zhejiang Securities Regulatory Commission since August 15, 2018. *ST Busen 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 supervisory staff of the Securities Regulatory Commission.

In reply to the Zhejiang provincial Securities Regulatory Commission's announcement, the company said that Zhao Chunxia is currently receiving treatment outside the country and has no fixed residence. He will return as soon as possible after the end of the treatment. In addition, the announcement also explained Zhao Chunxia's performance in the past year, saying that although she was in poor health, she insisted on attending meetings of the board of directors through telephone conferences, giving comments on the matters under consideration, without any absence, and participating in the coordination of the company's production and operation.

However, the related announcement also confirmed that the P2P net loan platform controlled by Zhao Chunxia has had a large number of overdue repayment since July 2018. In this regard, at present, the investment platform of love mainly adopts measures such as increasing collection efforts, litigation, debt to equity swap, creditor's rights barter, and setting up SPV to resolve risks. As of June 17, 2019, the platform accumulatively charged 157 enterprises, involving more than 4 billion 600 million yuan.

In reply to the notice issued by the Shenzhen Stock Exchange, *ST Busen said that it was verified that as of the date of the announcement, AI investment platform had not received notice from the public security organs for investigation. The company operates independently of the investment platform, without any business or capital spanactions.

General manager resigned suspicions

On the other hand, as for the removal of general manager Chen Jianfei by the board of directors of the company, *ST Busen said that as early as mid January 2019, when general manager Chen Jianfei reported to the chairman Zhao Chunxia on the company's work situation for 2018, he resigned from the general manager's position and signed the written resignation without writing the date on the spot, and requested the chairman to arrange the right time to deal with it. Therefore, resignation is Mr. Chen Jianfei's real intention. In May 24, 2019, the chairman submitted Chen Jianfei's resignation to the board of directors to make an announcement.

But then Chen Jianfei suddenly refused to resign, for lack of specific reasons. In June 12, 2019, the board of directors of the company passed the motion on the removal of the chairman of the board of directors, which removed Mr. Chen Jianfei's general manager's post.

However, Chen Jianfei's reply is obviously not consistent with the company's statement. Chen Jianfei said: "I have not resigned from the board of directors to the board of directors." the statement on the general manager's change and appointment to the chief financial officer "is inconsistent with the fact that Mr. Chen Jianfei's resignation from the general manager to the board of directors for personal reasons in May 24, 2019 was inconsistent with the facts.

In addition, in the description of job performance, *ST Busen pointed out that during the tenure of Chen Jianfei, the company's main business performance deteriorated, and internal control was also seriously absent, leading to the company's huge litigation. In addition, *ST Busen said that changing the general manager would not have a significant impact on the company's normal business activities.