*ST Middle Velvet (000982): Litigation Progress

Ningxia Bank of China Limited by Share Ltd managers' progress notice on company litigation

I. The basic situation of litigation

　　寧夏中銀絨業股份有限公司(以下簡稱“公司”或“中銀絨業”)管理人于2019年9月7日披露了原告寧夏擔保集團有限公司訴被告寧夏中銀絨業股份有限公司、寧夏中銀鄧肯服飾有限公司、寧夏中銀絨業國際集團有限公司、馬生國、馬生明、李衛東《委托擔保合同糾紛》一案，原告請求判令被告中銀絨業償還原告為其代償的債務金額6,500,000元及自2018年10月11日至實際清償債務之日的逾期付款利息；判令被告中銀絨業向原告承擔違約金650,000元；判令被告中銀絨業向原告支付擔保費325,360元及逾期支付擔保費產生的違約金26,733.75元，并承擔自2019年6月12日至實際付清擔保費之日的違約金；判令被告寧夏中銀鄧肯服飾有限公司、寧夏中銀絨業國際集團有限公司、馬生明、馬生國、李衛東對上述第一項、二項、三項訴訟請求中涉及的全部債務向原告承擔連帶清償責任；判令原 In respect of the above claims, the above first, two and three claims are entitled to priority in the 21 million 280 thousand shares of the Bank of Ningxia, Ningxia, which are pledged by the defendant, the Bank of China International Group Co., Ltd., and the litigation costs, preservation fees and reasonable expenses of the case are ordered by the above-mentioned 21 million 280 thousand cases.

Six defendants.

The above litigation matters are detailed in the notice of the 2019-93 Limited by Share Ltd of Ningxia cashmere industry Limited by Share Ltd on the company litigation published by the company manager in the specified information disclosure media in September 7, 2019.

Two. The latest progress of the above litigation cases.

The company administrator received the civil ruling of the people's Court of Jinfeng District, Yinchuan, the Ningxia Hui Autonomous Region on October 8, 2019. [(2019) ning 0106, early Republic of China No. 8194], the ruling was as follows:

According to the examination of the court, according to the twenty-first provision of the Supreme People's Court on the application of certain provisions of the People's Republic of China Enterprise Bankruptcy Law (two), before the bankruptcy application is accepted, the creditor will bring the following proceedings to the debtor's property. If the case is not yet concluded when the bankruptcy application is accepted, the people's court shall suspend the trial: (four) other individual liquidation proceedings against the debtor's property. In this case, the defendant, Limited by Share Ltd of Ningxia cashmere industry, was applied by Shanghai Yongrun Cci Capital Ltd. In July 9, 2019, the Yinchuan intermediate people's court made (2018) ningmin 01 Shen Shen 29 civil ruling, and adjudication accepted Shanghai Yong run Cci Capital Ltd's application for restructuring Ningxia's cashmere industry. The plaintiff lodge a lawsuit against the court on 11 June 2019, asking the defendant, Ningxia Bank of China, Limited by Share Ltd to pay compensation, guarantee fees, liquidated damages and so on. It belongs to the individual liquidation proceedings initiated before the bankruptcy application is accepted on the debtor's property. The case has not yet been concluded, so the hearing should be suspended. In accordance with the provisions of the Supreme People's Court on certain issues concerning the application of the bankruptcy law of the People's Republic of China (two), the provisions of the 154th Article 1 (six) of the twenty-first national procedure law of the people's Republic of China are as follows:

The case is suspended.

Three. Other litigation and arbitration matters

As of the date of this announcement, no major litigation or arbitration matters 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 entered the bankruptcy reorganization process in July 9, 2019. The plaintiff of the plaintiff Ningxia guaranty Group Limited has declared the claim to the manager according to law. The manager is currently examining the plaintiff's declaration of creditor's rights. 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. The fees for accepting cases, compound interest, penalty interest, penalty and guarantee fee will affect the performance of the company after the execution of the case. We invite investors to pay attention to investment risk.

Five. Reference documents

1. Civil ruling of people's Court of Jinfeng District, Yinchuan, the Ningxia Hui Autonomous Region [(2019) ning 0106, early Republic of China No. 8194].

Notice hereby.

Ningxia silver cashmere Limited by Share Ltd Manager

Two October 10th 19