*ST Velvet ((000982): Progress In Reforming

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 Ningxia Bank of China (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, issued in July 11, 2019 by the cashmere industry.

2019-69).

According to the relevant provisions of the People's Republic of China enterprise bankruptcy law, the administrator is accepting creditors' supplementary declaration claims in accordance with the law. As of 5 p.m. on October 8, 2019, a total of 161 creditors had declared 169 claims to managers, with a total value of 10883145103.65 yuan. At present, managers are examining the declared claims according to law.

According to the Bank of China's property management and price change plan adopted by the first time creditors meeting of the cashmere industry, the manager commissioned the Jingdong online judicial auction platform.

Sifa.jd.com/) the first, second and the first part of the property of the silver cashmere industry.

The three and fourth public auctions were sold in September 11, 2019, September 18th, September 26th and October 4th respectively.

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's 2018 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 to improve the company's assets and liabilities structure and avoid continuous losses, but the company's stock transactions still need to meet the following related supervisors.

Otherwise, the risk of suspension or listing will be suspended. 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. 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

Two October 10th 19