*ST Velvet ((000982): 369 Million Yuan To Spanfer The Shares Of The Subsidiary.

*ST Zhong Rong announced in the evening of June 24th that it intends to spanfer its 50% stake in Beijing Zhuo Wen fashion textile Limited by Share Ltd to Lhasa and run Consulting Service Co. Ltd. and spanfer its 25% stake in Zhuo Wen fashion to wholly owned subsidiary Oriental cashmere Co., Ltd. to Kaixin (Hongkong) Co., Ltd.

According to the announcement, the company directly owns 75% of Zhuo Wen's fashion before the spanaction, and has a 25% stake in Zhuo Wen, a wholly owned subsidiary of Oriental cashmere. After the completion of the spanaction, the company only owns 25% of Zhuo Wen's fashion, and the Oriental cashmere will no longer hold a fashionable interest in Zhuo Wen. Zhuo Wen fashion will no longer be incorporated into the company's merger.

The company suffered a huge loss of 2 billion 930 million yuan in 2018, and is facing multiple debt default lawsuits.

According to the trade arbitration award received by the company in June 12th, the company has already been unable to pay the share spanfer and overdue interest, lawyer fees and arbitration fees owed to Lhasa and run and Hongkong Kaixin, combined with its current situation. In this spanaction, Zhuowen fashion's 75% stake is priced at 369 million yuan, which is mainly used to compensate the company and the eastern cashmere owning 318 million yuan in Lhasa and run and Hongkong Kaixin. After the equity reaches the top, the share value exceeds the creditor's right part is 51 million 692 thousand and 200 yuan, and is paid by the Lhasa and run to the company or its designated account.

In 2014, the eastern cashmere of the company and its wholly-owned subsidiary acquired 100% stake in Zhuwen fashion in Lhasa and run and Hongkong Kaixin at a price of 550 million yuan, and Zhuo Wen fashion became a subsidiary company since then. The announcement shows that the main business of the company is clothing and knitwear manufacturing and sales. In 2018, the company realized a profit of 30 million 338 thousand and 700 yuan and a loss of 15 million 308 thousand and 200 yuan in the first quarter of 2019.