*ST Kerry (002072): Implementation Of Major Asset Sales

Kerid Cmi Holdings Ltd major asset sale implementation progress announcement

All members of the company and the board of directors guarantee that the contents of the information disclosure are true, accurate and complete, without false records, misleading statements or major omissions.

In August 11, 2015, the shareholders' meeting of Kerid Cmi Holdings Ltd (hereinafter referred to as "company") adopted the relevant motion on the report on the sale of major assets of the company (Draft) and its summary motion. Since October 10, 2015, the company has issued monthly announcement on the implementation of major asset sales according to the relevant regulations, and the details are published in the China Securities Daily, the Shanghai Securities Journal, the securities times and the related announcements on the Internet of giant tide information.

In view of the fact that the sale of major assets has not yet been fully implemented, according to the relevant provisions of the management measures for major asset reorganization of listed companies, the progress made in the implementation of this major asset sale is described as follows:

As of this announcement, the company received a total of 538 million 520 thousand yuan for the sale of major textile assets, with a balance of 277 million 228 thousand and 700 yuan (hereinafter referred to as "arrears").

In April 28, 2019, the fifth largest industrial company of Zhejiang, the largest shareholder of the company, signed the contract with the company and its subsidiary Dezhou Jinmian Textile Co., Ltd., which voluntarily undertook the obligation to pay for the remaining arrears. The fifth quarter of Zhejiang's debts would be beneficial for the company to recover the maximum amount of arrears. The transaction constitutes a related transaction and is required to be submitted to the shareholders' general meeting for deliberation before it becomes effective. But the deal was not voted on at the 2018 annual general meeting held in June 14, 2019.

The board of directors and management of the company are checking the actual performance payment ability of the relevant parties of the arrears, and strive to urge relevant parties to implement repayment measures to maximize the interests of the company and shareholders. The company reminds investors to pay attention to investment risk.

The company will timely disclose the progress of subsequent implementation of the transaction in accordance with relevant regulations.

Notice hereby.

Kerid Cmi Holdings Ltd board of directors

August 29, 2019