*ST Velvet ((000982): Progress Of Controlling Shareholder'S Litigation Matters

Stock Code: 000982 securities short: *ST velvet notice number: 2019-49

Bulletin of Limited by Share Ltd of Ningxia Bank of China on the progress of litigation concerning controlling shareholders of the company

All members of the company and the board of directors guarantee the authenticity, accuracy and completeness of the information disclosure. There is no false record, misleading statement or major omission.

Special risk hints:

1, Heng Tian Jiye and Castrol capital applied to realize the total amount of 81 million 496 thousand shares of the Bank of China's cashmere industry, which accounted for 16.93% of the 481496444 stake in the cashmere industry and 4.51% of the total share capital of the Bank of China.

On the basis of the uncertainty of the auction or sale of the above-mentioned shares, the Cashmere Group may lose part of the equity interest, resulting in a further reduction in the shareholding ratio of the Bank of China's cashmere industry and a weakening of its ability to control the cashmere industry, which may lose the position of the largest shareholder in the cashmere industry.

2, the company's 2018 audited net assets at the end of the year were negative, and the company's stock continued to be a warning of delisting risks by the Shenzhen stock exchange.

If the company continues to be subject to the delisting risk warning, the company's 2019 audited net assets of the end of the year will continue to be negative. The Shenzhen stock exchange may suspend the listing of the company's shares. If the company is listed on the Shenzhen Stock Exchange Listing Rules 14.4.1, if the company is suspended, the Shenzhen stock exchange has the right to terminate the listing of the company's shares.

We invite investors to pay attention to risks.

3, the company disclosed in November 16, 2018 that the company's creditors, Shanghai Yong run Cci Capital Ltd, applied to the Yinchuan intermediate people's court to apply for bankruptcy reorganization on the ground that the company could not repay its due debts and had a clear lack of solvency.

Whether the application can be accepted by the people's court and whether the company has entered the reorganization process is still uncertain.

I. The basic situation of the cases concerned

Ningxia cashmere cashmere Limited by Share Ltd (hereinafter referred to as "our company" and "cashmere industry")

(limited partnership) (hereinafter referred to as "Heng Tian Jiye") applied to the Shenzhen people's Court of Futian District Municipality (hereinafter referred to as the "court") to apply for the realization of the security interest, apply for a court decision to auction or sell the 41496000 shares of the company's shares, which is held by Ningxia Zhong Yin Rong Ye International Group Co., Ltd. (hereinafter referred to as "Zhong Rong Group"), and the proceeds of the auction or sale will be paid priority in the scope of the secured principal creditor's rights; the harvest Capital Management Co., Ltd. (hereinafter referred to as "harvest capital") applied to the court to implement the security interest, apply for the realization of the pledge security interest, request the auction or sale of the 40 million stake in the cashmere industry of the Zhong Rong Group, and pay priority to the proceeds. The two largest shareholder is Heng Tian Ju Xin (Shenzhen) Investment Center (limited partnership), which is the consistent action of the "Heng Tian Poly letter" and the investment center of Heng Tian Jia Ye (Shenzhen).

The above is 81 million 496 thousand shares of the Bank of China cashmere industry, which is applied to realize the pledge security interests of the company, accounting for 16.93% of the 481496444 stake in the cashmere industry, and 4.51% of the total stake in the Bank of China.

Based on the uncertainty of the auction or sale of the shares mentioned above, the Cashmere Group may lose part of the equity interest, resulting in a further reduction in the shareholding ratio of the Bank of China's cashmere industry, and a further weakening of its ability to control the cashmere industry, which may lose the position of the largest shareholder in the cashmere industry.

For details of the case, please refer to the announcement of the 2018-25 Ningxia Bank of China (cashmere) Limited by Share Ltd on the litigation of controlling shareholders of the company in February 6, 2018.

In mid 5 2018, the Zhong Rong group received a civil ruling No. 2017 (0304), No. 0304, No. 720 and No. 721 of Guangdong No. 0304.

The people's Court of Futian District of Shenzhen ruled that the application fee was rejected by the applicant.

The applicant may bring a suit in the people's court.

Heng Tian Jia Ye submitted to the Futian District people's Court of Shenzhen on May 2018 9.

Argumentative writing.

Heng Tian Jia ye believed that the facts were wrong in the ruling, improper in application of the law, and the ruling was wrong, and objection to the court of first instance was filed.

In addition, Heng Tian Jia Ye will decide whether to prosecute the Cashmere Group in order to safeguard the legitimate rights and interests according to the progress of the special procedures for the realization of the security interest.

The above contents are detailed in the announcement of the 2018-62 Ningxia Bank of China (Limited by Share Ltd) on May 22, 2018 about the progress of the controlling shareholder's litigation matters.

Two. The latest developments in the relevant cases.

In May 8, 2019, Heng Tian Jia Ye received the civil ruling of the people's Court of Futian District, Shenzhen [[2018] Guangdong 0304 min te 840], ruling as follows:

1, revocation of our court (2017) 0304 civil code 720 civil ruling; 2, the Ningxia Bank of China International Group Co., Ltd. held by the applicant, the Ningxia Bank of China (Limited by Share Ltd) 000982 shares of 41 million 496 thousand shares of circulation shares were auctioned and sold in accordance with the law, the proceeds from the claimant Heng Tian Jia Ye (Shenzhen) Investment Center (limited partnership) within the main contract creditor's rights guaranteed by the Ningxia Bank of China International Group Co., Ltd., the principal creditor's rights include priority: 462 million 224 thousand yuan and interest (interest is calculated according to the entrustment loan contract and the entrusted loan loan contract), until the applicant actually receives the loan returned.

This ruling shall become effective immediately after service.

The application fee of this case is 1460843.66 yuan (the applicant has already paid in advance), and is borne by the respondent Ningxia Bank of China International Group Co., Ltd.

Three. Other related situations

As of the announcement date, the controlling shareholder of the Cashmere Group owns 481496444 shares of the company, accounting for 26.6751% of the total share capital of the company, and the company shares held by the Cashmere Group.

481496000 shares, accounting for 26.675% of the total share capital of the company, account for 99.9999% of the shares held by the Cashmere Group, and 481496444 shares of the Cashmere Group are all frozen by the judiciary and their shares have been frozen for 9 times.

The company solemnly reminding investors: the giant wave information network www.cninfo.com.cn and China Securities Daily, Shanghai Securities Daily, securities times, and Securities Daily are the information disclosure media selected by the company. All information of the company is based on the information published in the above designated media. Investors are invited to invest rationally and pay attention to risks.

Notice hereby.

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

Two May 10th 19