Zhejiang Busen Garments Co Ltd

ST Busen released its 2026 interim report, with net profit attributable to the parent company showing a loss of 13.32 million yuan, an increase in loss of 2.86 million yuan compared with the same period last year. The company's total operating revenue was 80.85 million yuan, up 55.62 percent year on year. Net cash outflow from operating activities was 2.36 million yuan, the asset-liability ratio was 81.25 percent, gross margin was 19.56 percent, return on equity was negative 43.56 percent, and diluted earnings per share was negative 0.09 yuan.

ST Busen announced that it has received a civil complaint from the Zhuji City People's Court, in which natural person Zuo Aihua has filed a lawsuit over a private lending dispute involving an amount of 32.97 million yuan, with a principal of 21.25 million yuan. The plaintiff claims that the two parties signed a Loan Agreement on September 30, 2022, with a principal of 21.25 million yuan and a term ending March 20, 2023, and that the company failed to repay the principal and interest as agreed, hence the lawsuit. The company stated that the case has not yet been heard, and the outcome of the litigation may affect its application for the removal of the delisting risk warning and other risk warnings. The company had previously submitted a removal application to the Shenzhen Stock Exchange, which is currently in the review and supplementary materials stage. Just two days before the litigation announcement, seven directors of the company resigned collectively, and director candidates nominated by the new controlling shareholder, Guangzhou Yanfeng Digital Technology Co., Ltd., will take over, with the actual controller changing to Wang Bo.

ST Busen announced that Chairman and General Manager Sun Xiaoming and six other directors have resigned en masse, and the board plans to reduce its size from nine to seven members. Sun Xiaoming resigned from all positions, including chairman and general manager, for personal reasons. Liu Feng, Li Hong, and Yang Zhi stepped down as non-independent directors under arrangements by the controlling shareholder. Mu Yang, Chen Zengshe, and Wang Xinli resigned as independent directors for personal reasons. After their resignations, none of the seven will hold any position in the company or its subsidiaries. The controlling shareholder, Guangzhou Yanfeng Digital Technology, nominated Wang Bo and Zhang Min as non-independent director candidates, and Yuan Zhaoyun, Wei Wenli, and Lin Shanlang as independent director candidates. The relevant proposals were approved at the 13th meeting of the seventh board of directors and will be submitted to an extraordinary general meeting for election by cumulative voting. They will form the new board together with the remaining non-independent directors Huang Ping and Deng Yun. This senior management shake-up follows a recent change in control. Fangwei Tongchuang has completed the transfer of 21.3338 million shares to Yanfeng Digital, making Yanfeng Digital the new controlling shareholder and Wang Bo the new actual controller. ST Busen turned a profit in 2025, achieving a net profit attributable to the parent company of 8.6727 million yuan, but it expects a net loss attributable to the parent company of 12.5 million to 17 million yuan in the first half of 2026, with the loss widening year-on-year.