Securities code: Zhejiang Busen Garments Co.Ltd(002569) securities abbreviation: St BUSEN Announcement No.: 2022022 Zhejiang Busen Garments Co.Ltd(002569)
Announcement on the company’s outstanding losses reaching one third of the total paid in share capital
The company and all members of the board of directors guarantee that the information disclosed is true, accurate and complete without false records, misleading statements or major omissions.
1、 Overview of the situation
Zhejiang Busen Garments Co.Ltd(002569) (hereinafter referred to as “the company”) held the 18th meeting of the 6th board of directors and the 9th meeting of the 6th board of supervisors on April 27, 2022, and deliberated and adopted the proposal on the company’s outstanding losses reaching one third of the total paid in share capital. According to the annual report of the company in 2021 and the yakuaishan Zi (2022) No. 01110728 Zhejiang Busen Garments Co.Ltd(002569) audit report issued by Asia Pacific (Group) Certified Public Accountants (special general partnership), as of December 31, 2021, the undistributed profit in the consolidated balance sheet of the company was -27014450845 yuan, the amount of the company’s outstanding loss was -27014450845 yuan, and the paid in share capital of the company was 144010000 yuan, The amount of the company’s outstanding losses exceeds one third of the total paid in share capital. According to the relevant provisions of the company law of the people’s Republic of China and the articles of association, this matter needs to be submitted to the general meeting of shareholders for deliberation.
2、 Main reasons for losses
1. Accumulated loss of main business.
2. During the period when the former actual controller Xu Maodong controlled the company, he provided guarantee in the name of the company without the deliberation of the board of directors and the general meeting of shareholders, which led to several major litigation disputes and paid huge litigation costs and costs.
3、 Countermeasures
1. In terms of operation, the company further optimizes the sales mode of franchise and direct sales. On the one hand, it strengthens the expansion of direct sales mode, realizes vertical management and fine marketing, and improves the market popularity of BUSEN men’s wear brand; On the other hand, take various measures to encourage and support franchisees with good performance to realize the survival of the fittest; At the same time, actively expand new retail business and strive to improve the company’s sales performance;
2. In terms of management, the company will strengthen the control of various internal expenses and production costs and reduce the expenses of inefficient operating costs;
3. The company and the lawyer team will actively respond to the lawsuit, safeguard the legitimate rights and interests of the listed company as much as possible and reduce the possible losses of the company.
Zhejiang Busen Garments Co.Ltd(002569) board of directors April 28, 2022
