*ST Middle Velvet (000982): Litigation Progress

Stock Code: 000982 securities short: *ST velvet notice number: 2019-18

Announcement of proceedings of Limited by Share Ltd in Ningxia cashmere industry

1. Yinchuan Hengtong Rolling Bearing Co., Ltd. v. Ningxia Limited by Share Ltd

Dispute over debt pfer agreement (hereinafter referred to as "company")

(1) the basic situation of litigation. In January 22, 2019, the company disclosed the dispute between the plaintiff Yinchuan Hengtong Rolling Bearing Co., Ltd. and the defendant Limited by Share Ltd Ningxia silver cashmere industry Limited by Share Ltd "debt pfer agreement". The plaintiff asked the defendant to pay the plaintiff 132316 yuan of the plaintiff's money in the Bank of Ningxia, and the interest on the overdue payment was 12255.7 yuan (31 to December 2018), and the interest paid on the basis of the 50% interest rate calculated by the PBOC at 4.75% of the loan interest rate was 50% until the actual settlement date. The total amount was 144571.7 yuan.

(two) the latest progress of the above litigation cases.

In March 15, 2019, the company received the civil judgment of the people's Court of Lingwu City, the Ningxia Hui Autonomous Region (2019) ning 0181 and the early 414 of the people's Republic of China.

1, the defendant, Ningxia cashmere industry Limited by Share Ltd, paid 132316 yuan to the plaintiff Yinchuan Hengtong Rolling Bearing Co., Ltd. within three days after the decision came into effect, and paid interest in the period from January 11, 2019 to the date of the judgment determined in accordance with the 4.35% annual interest rate of the same type of loans in the same period of the people's Bank of China.

2, dismissed the plaintiff Yinchuan Hengtong Rolling Bearing Co., Ltd.'s other litigant claims.

If the obligation of paying money is not fulfilled according to the period specified in this judgment, the debt interest of the period of delay in performance shall be doubled according to the 253rd provision of the Civil Procedure Law of the people's Republic of China.

The case acceptance fee is 3191 yuan, which is borne by the plaintiff Yinchuan Hengtong Rolling Bearing Company Limited for 271 yuan, and the defendant Limited by Share Ltd Ningxia silver cashmere industry Limited by Share Ltd shoulder 2920 yuan.

If he is not satisfied with this judgment, he may submit his petition to the court within fifteen days from the date of the service of the judgment, and submit a copy of the number of the other party or representative to appeal to the intermediate people's Court of Yinchuan, the Ningxia Hui Autonomous Region.

Two, Ningxia Guo Yun Joint Power Co., Ltd. v. the company's "power online monitoring system construction" contract disputes.

(1) the basic situation of litigation

In November 13, 2018, the company disclosed the major litigation notice of the 2018-109 Limited by Share Ltd of Ningxia in the information disclosure media. The plaintiff, Ningxia Guo Yun Joint Power Co., Ltd. complained to the Lingwu court for disputes over the contract with the company's "online monitoring system for power generation", and requested that the company pay the balance of the plaintiff's construction costs by 624300 yuan, and decide to pay 224860 yuan for breach of contract and to bear the cost of litigation.

In December 11, 2018, the company disclosed the results of the first instance trial of the above cases. The civil judgment of the people's Court of Lingwu City, the Ningxia Hui Autonomous Region, was sentenced to five days after the judgment came into effect. The company paid 624300 yuan for the construction cost of the plaintiff, Ningxia state cloud Joint Power Co., Ltd., paid 187290 yuan of liquidated damages, totaling 811590 yuan, and dismissed other litigation claims of the plaintiff of Ningxia Guo Yun Joint Power Co., Ltd.; if it failed to fulfill the obligation to pay money during the period specified by the judgment, it should pay double interest on the debt interest during the delay in performance according to the 253rd provision of the Civil Procedure Law of the people's Republic of China, and the case acceptance fee was 12292 yuan.

A half charge of 6146 yuan will be borne by the defendant company.

For details, we will refer to the lawsuit two of the 2019-116 announcement of the major litigation progress of Limited by Share Ltd of Ningxia cashmere industry published in the information disclosure media.

(two) the latest progress of the above litigation cases.

The company appealed against the above decision and appealed to the intermediate people's Court of Yinchuan, the Ningxia Hui Autonomous Region.

On March 2019, 15, the Japanese company received the civil judgment of the intermediate people's Court of Yinchuan, the Ningxia Hui Autonomous Region [[2019] Ning 01 No. 496].

Dismissed the appeal and upheld the original judgment.

The case acceptance fee of the second instance is 4046 yuan, which is borne by the appellant Ningxia Limited by Share Ltd.

This judgment is final.

Three. Other litigation and arbitration matters

As of the date of this announcement, no major litigation or arbitration matters should be disclosed and not disclosed by the company and the controlling shareholder.

Four. The possible impact of this announcement on the company's current profits or future profits.

The company will, in accordance with the accounting standards for enterprises and other provisions, sum up the principal and interest involved in the related litigation into liabilities and financial expenses, and the amount of case acceptance fees and compound interest and penalty will be small, and will not have a significant impact on the company's performance.

We invite investors to pay attention to investment risk.

Five. Reference documents

1. Civil judgment of the people's Court of Lingwu City, the Ningxia Hui Autonomous Region [(2019) ning 0181, early Republic of China No. 414];

2, the Ningxia Hui Autonomous Region Yinchuan intermediate people's court civil judgment [[2019] ningmin 01 No. 496].

This is hereby announced.

The board of Limited by Share Ltd of Ningxia BOC cashmere industry

Two March 16th 19