Loss Of Shou Family From Busen Shares For Two Consecutive Years

Listing of Shou family in Zhuji, Zhejiang

After the big shareholder of Busen shares changed hands, the 3 Shou family members left the board of directors recently.

In November 18th, Busen shares announced that the 3 Shou family members, chairman Wang Jianjun, director Chen Nengen and Chen Zhijun, resigned from the company and will no longer hold any positions in the company.

In November 20th, Busen shares announced the largest shareholder Busen group to reduce to 10 million shares, after the reduction of the total share capital of 7.14%.

The reduction of large shareholders has to cause Lenovo. Is this related to the declining performance of Busen shares since its listing?

Since its listing in 2011, Busen's share has been showing negative growth, which has seen losses since last year. The net profit in the first three quarters of this year was -851.8 million yuan.

With the declining market environment, will the new major shareholder, Shanghai Ruiwei asset management company (hereinafter referred to as "Ruiyi asset") change its main business? Will there be more Shou family members in the future?

From November 30th to December 2nd, Shou Helei, Secretary of the board of directors of Busen shares, was called on many times by a person claiming to be a staff member of Busen's administrative department.

As early as November 30th, an interview outline was sent to Busen's public mailbox and the display was successful. Qian Mingjun, Busen's securities and exchange representative, said in December 2nd that he began to respond to related problems in the mail, but the reply would need to be confirmed by the director and the chairman.

As of this article, Busen shares have not yet received an interview reply.

Large shareholders easily change the original family members to leave office

The Busen group, the former largest shareholder of Busen stock, was established in 1985. The apparel industry was the leading industry in the early days. After that, the diversified development strategy was set up and involved in real estate, circulation trade, financial investment and other fields.

The existing staff of more than 3500 people, the total assets of nearly 2 billion yuan.

Busen shares is the only listed company controlled by Busen group, with the design and production of the brand men's clothing as its main business. It once signed the first Huang Xiaoming in the mainland as the spokesperson of the brand image.

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However, the group company with extensive influence in Zhuji, Zhejiang province is a family firm.

Founded in 80s of last century, Cai Feng started with 24 sewing machines in private houses.

In 2005, Chen Jianfei, the son of Shou Cai Feng, took over as the chairman and group steering director of Busen.

Busen's 2014 annual report shows that Shou family held 88.63% of Busen group, Busen group was the largest shareholder of Busen shares, holding 59.55% shares.

The 2014 annual report of Busen shares showed that 4 of the 7 directors were members of the Shou family, including the newly resigned chairman Wang Jianjun, director Chen Nengen and Chen Zhijun.

Among them, Wang Jianjun is the nephew of Shou Cai Feng, Chen Nengen is the brother of Shou Cai Feng, Chen Zhijun is the daughter of Chen en en, and the niece of Shou Cai Feng.

Even though he resigned as director, Wu Yongjie, who was still general manager, was also a member of the Shou family, who built Shou Caifeng's husband for the queen of nephew.

Many family members in the board of directors showed that Shou family had strong control over Busen shares.

But are the other family members as bright and talented as brother and sister of Shou Cai Feng? There were reports that Chen Jianfei, the son of Shou Cai Feng, had gambled away 150 million yuan.

Today, Busen group's share of Busen shares fell from 59.55% to 7.14%, Busen's shares were third in 2015.

China disclosed that its assets were 29.86% at that time, and Busen shares did not disclose the announcement in November 20th.

But judging from the change of executives, the strategic adjustment of Busen's shares has begun. However, the new chairman, Ma Liwei, is now 72 years old. Is this age enough to handle Busen shares?

A staff member who announced the contact information on the China product network asked her why he chose Ma Liwei as the new chairman and why he chose to join Busen shares. Will there be any changes in the future executives and main businesses of Busen? The other replied, "we have our own considerations in this regard. These questions are not very convenient to answer."

Then hang up the phone.

Performance continues to slide into hot potato

Major shareholders are changing hands. Behind the high level exchange is Busen shares' declining performance in recent years.

In the first three quarters of this year, Busen shares earned 297 million yuan, down 15.45% from the same period last year.

As early as the year of listing in 2011, its revenue reached 710 million yuan, and its revenue began to decline year after year.

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In 2014, Busen shares lost 100 million yuan.

Although profit has improved this year, it has not yet reversed the deficit situation, and the total losses in the first three quarters were 8 million 380 thousand yuan.

At the same time, the cash flow of Busen shares is not optimistic. Its net cash flow in the first three quarters of this year was -4959.8 million yuan.

Busen's "lack of money" situation is not only in this year, but in 2012 and 2013 its cash flow is negative.

High stock is also a problem that Busen can not ignore.

The third quarter report of Busen shares showed that the inventory in the first three quarters was as high as 240 million yuan, an increase of 218 million yuan compared with the half year report.

In the face of a loss, Busen shares this year suspected of layoffs or salary cuts.

In the third quarter of this year, the cash paid to workers and staff members was 77 million 530 thousand yuan, compared with 98 million 496 thousand yuan in the same period last year.

In addition, clothing sales were not smooth, dealers' business confidence was hit, and the investment enthusiasm of the clothing industry was sluggish. There was once a rumour that Busen shares closed hundreds of stores this year.

Asking whether the rumours of closing hundreds of stores in Busen's shares are true. Are there any pay cuts or layoffs this year?

Qian Mingjun replied with "unclear information and all announcements".

When he indicated that he could tell his cell phone number or mailbox to facilitate contact, he was refused.

Since the loss of Busen shares in 2014, there are signs that the Shou family is anxious to get rid of this hot potato.

As early as August 2014, Busen shares announced that it would reorganize Hong Wah's agriculture and sell it to Hong Wah for 4 billion 170 million.

After Hong Wah's agriculture involved in financial fraud, inflated revenues and profits, the restructuring plan finally declared bankruptcy.

It is rumoured that the Shou family is eager to get rid of Busen shares because of its huge cash gap.

However, despite the frequent decline in performance, Busen shares in recent years there is still a small increase.

Its share price was only 16.45 yuan in September 23rd, and its closing price was 30.49 yuan in December 3rd.

In just 3 months or so, it has nearly doubled.

Obviously, there are funds for speculation in restructuring expectations.