Uncompleted Appointment Of Audit Institutions Busen Shares Received The Shenzhen Stock Exchange Letter Of Concern

In February 18th, the Busen clothing Limited by Share Ltd of Zhejiang (hereinafter referred to as "Busen shares") announced that it received the letter of concern from the Shenzhen Stock Exchange. It requested that the reason why Busen shares were not held at the shareholders' meeting to consider the reasons for the appointment of audit institutions, whether there was any change in the appointment plan, and the arrangements for follow-up consideration procedures.

According to the announcement, in January 2nd, Busen issued a notice that it was proposed to appoint Dahua accounting firm (special general partnership) (hereinafter referred to as "Dahua Institute") as its 2019 annual audit institution, and the relevant appointment procedures still need to be submitted to the shareholders' meeting for consideration. Up to now, Busen shares have not yet issued a notice to convene shareholders' meeting to deliberate on related matters, and the procedures for engaging in audit institutions have not yet been completed. The Shenzhen Stock Exchange asked Busen shares to explain whether it had a preliminary communication with the Dahua office on the basis of assets size, business composition, key audit items and losses in 2018, and whether Dahua had enough time to complete its 2019 annual audit.

In addition, according to the 2019 annual performance notice, Busen shares are expected to net profits of shareholders of Listed Companies in 2019 to 27 million -4000 yuan, mainly due to the anticipated liabilities in the early stage. The Shenzhen Stock Exchange asked Busen to explain the specific details and basis of its estimated liabilities in 2019, as well as the specific contents, amounts and confirmation basis of other non recurring items.

It is reported that Busen shares are mainly engaged in the design, production and sales of men's brand clothing, with Busen men's clothing as the main brand.