*ST Middle Velvet (000982): Major Litigation Progress

Stock Code: 000982 securities short: *ST velvet notice number: 2019-62

Ningxia BOC cashmere Limited by Share Ltd

Proclamation of progress in major proceedings

1. Agricultural Bank of China, Limited by Share Ltd, Lingwu sub branch, V. company and Ningxia guarantee Group Co., Ltd.

(1) the basic situation of litigation cases

In April 24, 2018, the Limited by Share Ltd of Ningxia BOC cashmere industry (hereinafter referred to as "the company") disclosed the plaintiff of the Agricultural Bank of China, Limited by Share Ltd Lingwu sub branch, to the Yinchuan intermediate people's Court (hereinafter referred to as the "Yinchuan intermediate people's court") and complained to the company and Ningxia guarantee Group Co., Ltd., requesting the Yinchuan intermediate people's court to order the company to repay the loan 90 million yuan, interest 391 thousand and 500 yuan, and bear the litigation costs and other expenses; and ordered Ningxia guaranty group limited to undertake joint guarantee responsibility for the loan principal and interest.

Refer to the "major litigation notice of Ningxia cashmere industry Limited by Share Ltd" published by the company on April 24, 2018 in the designated information disclosure media (Bulletin number: 2018-37).

In September 11, 2018 and December 19, 2018, the company separately disclosed the first instance and the two instance judgment of the above litigation in the designated information disclosure media. The details are listed in the 2018-96 major announcement of the Limited by Share Ltd's major litigation progress in Ningxia's cashmere industry Limited by Share Ltd and the 2018-119 major announcement of the Limited by Share Ltd's major litigation progress.

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

The company received the ruling of the Yinchuan intermediate people's Court on June 11, 2019 (2019).

Ning 01 Zhi 105], the contents are as follows:

The case of dispute over the financial loan contract of Ningxia guarantee Group Co., Ltd. was put into execution in February 11, 2019. According to the civil judgment issued by the intermediate people's Court of the Ningxia Hui Autonomous Region, Yinchuan (2018) ning 01 early Republic of China (No. 282), the law enforcement force has issued the enforcement notice, and ordered the executor to fulfil the obligations determined by the effective legal document. The bank's owner, Ningxia's Bank of China (cashmere), Limited by Share Ltd paid the principal 84998223.49 yuan, the interest 2117231.6 yuan, and the interest from May 21, 2018 to October 2, 2018 (including compound interest and penalty interest) (according to the standard stipulated in the contract for the loan of the Liquidity Fund) to the application executor, the Agricultural Bank of China, the Lingwu branch of the Agricultural Bank of China. "Application executor", Agricultural Bank of China, Limited by Share Ltd, Lingwu City sub branch and the executor, Ningxia cashmere industry Limited by Share Ltd

A total of 87740224.09 yuan and interest (not yet calculated).

The Ningxia guarantee Group Co., Ltd. is jointly and severally liable for the above debts.

However, the executor has not yet fulfilled his obligations under the effective legal instruments.

In accordance with the provisions of the 242nd, 243rd and 244th articles of the Civil Procedure Law of the people's Republic of China, the ruling is as follows:

1, freezing and delimit the 87740224.09 yuan and interest of the executed Bank of Ningxia Bank of China Limited by Share Ltd and Ningxia guarantee Group Co. Ltd.

2, if the executor fails to pay the bank's deposit, the less part will be seized and detained in accordance with the law.

This ruling shall have legal effect once it is served. "

Two, the case of the State Development Bank v. the company, Ningxia Bank of China International Group Co., Ltd., Ma Shengguo and Zhang Yongchun.

(1) the basic situation of litigation cases

In June 30, 2018, the company disclosed the dispute between the plaintiff, the State Development Bank, the defendant company, the Ningxia Bank of China International Group Limited, Ma Shengguo and Zhang Yongchun, and the plaintiff's request for the defendant to repay the plaintiff's principal amount of 13 million 900 thousand euros and the corresponding interest, penalty interest, compound interest, etc., according to the law, and ordered the defendant, Ningxia Bank of China International Group Co., Ltd., Ma Sheng Guo, and Zhang Yongchun to bear joint liability for the above debts, and the plaintiff to pay the lawyer's fees, litigation costs and preservation fees to pay the above claims. The details of the "major litigation notice of the 2018-77 Ningxia cashmere cashmere Limited by Share Ltd" published by the company in the specified information disclosure media are detailed.

In January 4, 2019, the company disclosed the judgment results of the above litigation in the designated information disclosure media. See the "2019-03 Ningxia cashmere industry Limited by Share Ltd important litigation progress notice".

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

In June 11, 2019, the company received the notice of execution of the fourth intermediate people's Court of Beijing ([2019] Beijing 04 bearing No. 84], which reads as follows:

"Zhang Yongchun, Ma Shengguo, Ningxia cashmere industry Limited by Share Ltd, Ningxia Bank of China International Group Co., Ltd.:

You (unit) and the State Development Bank case, Beijing fourth intermediate people's court in December 24, 2018 (2018) Beijing 04 early Republic of China 272 instruments have been legally effective.

The State Development Bank applied to the court for compulsory execution. Our hospital was placed on file in accordance with the law on 06 2019, 03.

In accordance with the 240th provision of the Civil Procedure Law of the people's Republic of China, you shall be ordered to perform the obligations specified in the legal documents and the obligations prescribed by law immediately.

Three. Other litigation and arbitration matters

As of the date of announcement, the company and its controlling shareholder shall not disclose any information disclosed.

His major litigation and arbitration matters.

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 relevant litigation into liabilities and financial expenses, and the fees for accepting cases and compound interest and penalty will affect the performance of the company after the execution of the case.

We invite investors to pay attention to investment risk.

Five. Reference documents

1, Yinchuan intermediate people's court execution ruling [[2019] Ning 01 Zhi 105];

2, Beijing fourth intermediate people's court execution notice [(2019) Jing 04 Zhi 84].

Notice hereby.

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

Two June 13th 19