*ST Velvet ((000982): Abnormal Fluctuations In Stock Trading

Ningxia cashmere industry Limited by Share Ltd announcement on abnormal fluctuations in stock trading

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 warning:

1, Heng Tian Jia Ye (Shenzhen) Investment Center (limited partnership) (hereinafter referred to as "Heng Tian Jiye") and harvest Capital Management Co., Ltd. (hereinafter referred to as "harvest capital") applied for the realization of pledge security interests of the company's stock of a total of 81 million 496 thousand shares, accounting for 16.93% of the 481496444 shares of Ningxia Bank of China International Group Co., Ltd. (referred to as "Zhong Rong Group"), accounting for 4.51% of the total share capital of the company.

In view of the uncertainty of the auction or sale of the above-mentioned shares, if the security interests or litigation procedures are realized, the Cashmere Group may lose part of the equity interest, resulting in a further reduction in the shareholding ratio of the company and the further weakening of its control capability, which may lose the position of the largest shareholder of the company.

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.

1. Abnormal fluctuations in stock pactions

Ningxia Bank of China Limited by Share Ltd (hereinafter referred to as "company" or "our company").

*ST middle velvet, stock code: 000982) stock in May 10, 2019, May 13th, May 14th, 3 consecutive trading days, the cumulative deviation value reached 12.86%, according to the relevant provisions of the Shenzhen stock exchange, the company's stock trading

It belongs to abnormal fluctuations in pactions.

Two, the company pays attention to and verifying the situation.

In view of abnormal fluctuations in stock trading, the company has verified the relevant matters.

1, there is no need to correct and supplement the information disclosed by the company in the early stage.

2, the controlling shareholder and the actual controller and shareholders holding more than 5% of the company do not have any major issues that should be disclosed but not disclosed by the company.

3, no public information has been reported in recent public media on possible or already significant impact on the stock trading price of the company. 4, the controlling shareholder, the actual controller and the shareholder holding more than 5% have not traded the company's stock during the abnormal fluctuation of the stock paction.

5, there is no violation of fair information disclosure regulations.

Three, there should be no disclosure and no disclosure of information.

The board of directors confirms that, in addition to the above, there are no matters to be disclosed and not disclosed in accordance with the relevant provisions of the Shenzhen Stock Exchange listing rules or related matters such as planning, negotiation, intention, agreement, etc. the board of directors has not received the information that the company has disclosed in accordance with the relevant provisions of the Shenzhen Stock Exchange Listing Rules and has not been disclosed, which has a greater impact on the trading price of the company's stock and its derivatives.

Four, the necessary risk warning

1, there is no violation of information fair disclosure after the company's self-examination.

2, Heng Tian Jiye and Castrol capital apply for the realization of pledge security interests of the company's stock of a total of 81 million 496 thousand shares, accounting for 16.93% of the company's 481496444 stake in the company, accounting for 4.51% of the company's total share capital.

In view of the uncertainty of the auction or sale of the above-mentioned shares, if the security interests or litigation procedures are realized, the Cashmere Group may lose part of the equity interest, resulting in a further reduction in the shareholding ratio of the company and the further weakening of its control capability, which may lose the position of the largest shareholder of the company.

3, 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 will continue to be negative. The Shenzhen stock exchange may suspend the listing of the company's shares. If the company is suspended, the company will have the Listing Rules of the Shenzhen stock exchange 14.4.1.

Under the circumstances, the Shenzhen stock exchange has the right to terminate the listing of the company's shares.

We invite investors to pay attention to risks.

4, because the company has been filed by creditors for bankruptcy reorganization proceedings (see November 16, 2018 announcement in the designated media, bulletin number 2018-111), it is still uncertain whether the lawsuit can be accepted by the people's court and whether the company enters the reorganization process.

Investors are advised to pay attention to investment risk.

5, as of the date of this announcement, the company has been lawfully charged with financial institutions and other creditors for unliquidated maturity debts of 2 billion 535 million 799 thousand and 100 yuan, US $27 million 368 thousand and 100 and euro 14 million 400 thousand and 900 yuan.

6, as of the date of this announcement, the controlling shareholder of the Cashmere Group holds 481496444 shares of the company's shares, accounting for 26.6751% of the total share capital of the company, and 481496000 shares of the company's total Pledged Shares, accounting for 26.675% of the total share capital of the company, accounting for 99.9999% of the shares held by the Cashmere Group, and 481496444 shares of the company's shares held by the central government are all frozen by the judiciary and their shares have been frozen for 9 times.

The situation that the shares held by the Cashmere Group are frozen by law and waiting for a freeze have not seriously affected the daily production and operation of the company.

The shares of the cashmere group can not be sold directly or be liquidated in the two tier market before the thaw.

However, if the Cashmere Group is subject to judicial disposal after being frozen by justice and waiting for a freeze, it may lead to a change in the actual control of the company.

7, the company will strictly carry out the information disclosure work in strict accordance with the requirements and requirements of laws and regulations, and remind investors: the information disclosure media designated by the www.cninfo.com.cn, the China Securities Journal, the Shanghai Securities Journal, the securities times, and the Securities Daily are all designated by the company. All the information of the company is based on the information contained in the above designated media, and investors should pay attention to the risks.

Notice hereby.

Ningxia BOC cashmere Limited by Share Ltd May 15th two 19