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

Ningxia silver cashmere Limited by Share Ltd Manager

Announcement on progress in restructuring

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 Limited by Share Ltd of Ningxia Bank of China on the court's decision to accept the warning of the company's reorganization and stock being continued to withdraw from the market) issued by the cashmere industry in July 11, 2019. The announcement number is 2019-69. After the company entered the 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 August 6, 2019, a total of 57 creditors had declared 58 claims to managers, with a sum of 1448437864.36 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 by delisting risk warning (*ST), and the company 2018.

The audited net assets at the end of the year are negative. If the company's audited net assets in the end of 2019 are still negative, according to the provisions of article 14.1.1 of the Shenzhen Stock Exchange Listing Rules (revised 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.

Managers will conscientiously carry out 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 based on the notice published in the securities information times, China Securities Daily, Securities Daily, Shanghai Securities Journal and www.cninfo.com.cn. It also reminds

Large investors prudently make decisions and pay attention to investment risks. Notice hereby.

Ningxia silver cashmere Limited by Share Ltd Manager

August 8, 2019