*ST Middle Velvet (000982): Litigation Progress

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

First, the basic situation of litigation. The Limited by Share Ltd of Ningxia cashmere industry (hereinafter referred to as the "company") disclosed the dispute over the equity financing contract of the plaintiff's open development fund Co., Ltd. to the defendant company and Ningxia guarantee group limited in June 5, 2019. The plaintiff requested the company to repurchase the 19.92% stake of Ningxia Bank of China Ningxia Garments Co., Ltd. ("Bank of China Duncan"), which was held by the plaintiff's open development fund in accordance with the law, and paid the plaintiff's equity repurchase funds, payment of liquidated damages, and litigation costs. See in detail the "2019-61 Ningxia cashmere cashmere Limited by Share Ltd major litigation notice" published in the designated information disclosure media.

Two. The latest progress of the above litigation cases.

In July 4, 2019, the company received the civil ruling of the people's Court of Xicheng District, Beijing ([2019] one of the 0102 financial guarantees of Beijing, 190).

"The applicant development development fund Co., Ltd. applies to the court for preservation of property before the request. It requests to be sealed up, seized or frozen for the property valued at 43337638.67 yuan under the name of the Bank of China Ningxia Limited by Share Ltd and the Ningxia guaranty Group Co., Ltd., and it deposits 43337638.67 yuan as guarantee for its account in the National Development Bank's direct business center.

After examination, the court held that the applicant had filed an application for property preservation before the defendant and had already provided the guarantee. His application was in accordance with the law, and the court should grant it. In accordance with the provisions of the 101st, 102nd and 103rd Article 1 of the Civil Procedure Law of the people's Republic of China, the following is decided:

The property of the applicant, Ningxia Limited by Share Ltd and the Ningxia guarantee Group Co., Ltd., which is worth 43337638.67 yuan, is sealed, seized or frozen.

The application fee of the case is 5000 yuan, which is borne by the applicant country.

This ruling shall begin immediately.

If he does not accept this ruling, he may apply to the court for reconsideration within five days from the date of receiving the ruling. The execution of a ruling shall not be suspended during the reconsideration.

If the applicant does not initiate lawsuits or apply for arbitration within thirty days after the people's court takes the measures of preservation, the court will remove them in accordance with the law. "

Three. Other litigation and arbitration matters

As of the date of this announcement, there are no other major litigation or arbitration matters that 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 relevant litigation into liabilities and financial expenses, and the fees for accepting cases, compound interest and penalties will have a certain impact on the company's performance. We invite investors to pay attention to investment risk.

Five. Reference documents

1, Beijing Xicheng District people's court civil ruling [(2019) one of Beijing 0102 financial security 190].

Notice hereby.

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

Two July 5th 19