*ST Velvet ((000982): Manager's Announcement On Progress In Restructuring

Ningxia silver cashmere Limited by Share Ltd Manager

Announcement on progress in restructuring

The manager of the company guarantees the authenticity, accuracy and completeness of the information disclosure, without false record, misleading statement or major omission.

First, restructuring progress

In July 9, 2019, the intermediate people's Court of Yinchuan, the Ningxia Hui Autonomous Region (hereinafter referred to as "Yinchuan intermediate people's court") made (2018) ning 01 Shen Shen 29 "civil ruling" and (2019) ning 01 break 6-1 "decision", and decided to accept the application of Shanghai's Yong run Cci Capital Ltd to Ningxia's cashmere industry Limited by Share Ltd (hereinafter referred to as "cashmere industry" or "company"). (see the announcement of the Ningxia Bank of China's Limited by Share Ltd on the court's decision to accept the company's reorganization and the risk of stock being continued to be delisted on July 11, 2019 issued by the cashmere industry.

2019-69).

After the company entered the bankruptcy reorganization process, according to the relevant provisions of the People's Republic of China enterprise bankruptcy law, the manager has fully initiated the declaration, registration and examination of claims. The deadline for declaration is August 17, 2019. As of 5 p.m. on July 30, 2019, a total of 42 creditors had declared 42 claims to managers, with a sum of 1378424054.87 yuan.

Two, risk warning

1, the risk that a company's stock may be suspended from listing.

The company's stock trading is currently implemented with a delisting risk warning (*ST), and the net assets at the end of 2018 audited are negative. If the net assets of the company audited in 2019 are still negative, then according to the provisions of article 14.1.1 of the Shenzhen Stock Exchange Listing Rules (revised in November 2018) (hereinafter referred to as the "Listing Rules"), the company's stock will face the risk of suspension of listing.

2, the risk that the company's stock may be terminated.

(1) if the company's shares are suspended from listing, the first year (2020) report shows that the company's net profit or net profit after deducting the non recurring gains and losses is negative, the net assets at the end of the year are negative, the operating income is less than ten million yuan, or the audit report of the company's financial accounting report is issued with reservations, unable to express opinions or negative opinions, or fails to disclose the 2020 annual report within the statutory time limit. According to the provisions of article 14.4.1 (1) to (five) of the listing rules, the company's stock will face the risk of being terminated.

(2) the court has ruled that the company enters the reorganization process. According to the relevant provisions of the People's Republic of China enterprise bankruptcy law, if the reorganization fails, the company will be declared bankrupt and liquidated by the court. If the company is declared bankrupt and liquidated by the court, according to clause 14.4.1 (twenty-three) of the listing rules, the company's stock will face the risk of being terminated.

(3) if the company implements the reorganization and completes the reorganization plan, it will help improve the company's assets and liabilities structure and avoid continuous losses, but the company's stock transaction still needs to meet the relevant regulatory requirements, otherwise it will still face the risk of suspending the listing or terminating the listing.

The managers will conscientiously fulfill the obligation of information disclosure in strict accordance with relevant laws and regulations, pay close attention to and disclose the progress of related matters in a timely manner. The information released by the company shall be disclosed in the specified information disclosure media, such as the securities times, China Securities Daily, Securities Daily, and Shanghai Securities Daily.

And the bulletin issued by www.cninfo.com.cn is accurate. At the same time, it also reminds the majority of investors to make prudent decisions and pay attention to investment risks.

Notice hereby.

Ningxia silver cashmere Limited by Share Ltd Manager

August 1, 2019