*ST Middle Velvet (000982): Major Litigation Progress

Stock Code: 000982 securities short: *ST velvet notice number: 2019-111

Ningxia silver cashmere Limited by Share Ltd Manager

Announcement on major proceedings of the company

I. The basic situation of litigation cases

In the case of the defendant company, the Bank of China Duncan Clothing Co., Ltd., the Ningxia Bank of China International Group Co., Ltd., Ma Shengguo and Zhang Yongchun, a dispute over the loan contract, the plaintiff asked the defendant to repay the plaintiff's principal amount of 88000000 yuan, and the interest and penalty interest amount to 4271253.09 yuan (interest and penal interest until October 18, 2018), and the total amount was 92271253.09 yuan. The total amount of the corresponding assets discounted by the defendant to the plaintiff was sold to the plaintiff, and the sale price and the auction price had the priority of compensation. According to the law, the defendant, Ningxia Bank International Group Co., Ltd., Ma Shengguo and Zhang Yongchun were jointly liable for the above debts, and the plaintiff was paid by the plaintiff for the above claims, including attorney fees, litigation fees and preservation fees. The Bank of China Ningxia Limited by Share Ltd (hereinafter referred to as the "company") disclosed the plaintiff's Bank of China, Limited by Share Ltd and Ningxia Hui Autonomous Region in January 3, 2019. See in January 3, 2019, the company announced the major litigation notice of 2019-01 Ningxia cashmere industry Limited by Share Ltd in the information disclosure media.

Two. The latest progress of the above litigation cases.

In October 28, 2019, the company manager received the civil judgment of the intermediate people's Court of Yinchuan, the Ningxia Hui Autonomous Region (2018) ning 1300, the 1300 of the early Republic of China.

1. Confirm that the plaintiff, the Bank of China Limited by Share Ltd the Ningxia Hui Autonomous Region branch, is the defendant.

The Limited by Share Ltd of the Ningxia cashmere industry Limited by Share Ltd has the following claims: the principal amount of the loan is 88 million yuan, interest and penalties 4271253.09 yuan (provisional until October 18, 2018) and interest and penal interest from October 19, 2018 to July 9, 2019.

2. Confirm that the plaintiff's Bank of China, Limited by Share Ltd, the Ningxia Hui Autonomous Region branch, has provided the collateral for the defendant, Duncan, Ningxia Bank of China Clothing Co., Ltd. in the name of 2-01, the 2 floor of Building 1, North Road 13, worker stadium, Chaoyang District, Beijing. The title of the property auction is the property auction, the sale or discount of the price of the property, and the price of the proceeds from the sale. The defendant, Ningxia Bank of China Duncan Clothing Co., Ltd., after assuming the guarantee responsibility, has the right to recover the Limited by Share Ltd from the defendant,, cashmere industry;

They are: No. 131033011st, 131033012, 131033013, 131033014, 131033015, 131033016, 131033017, 131033017, and no. of the right to use the state-owned land in the Kunming Housing Authority, and the land certificate number of the land used by the Zong Zong corresponding to the above mentioned property is: Kunqu, with the (Kun), the (Hao), the (Hao), the (Hao), the Hao, the (), the (), the (), the ()), the auction, sale or discount, the price of the proceeds has the priority of compensation, but it is suspended during the bankruptcy reorganization of the Bank of China (cashmere) industry in Ningxia. 3. Confirm that the plaintiff's Bank of China Limited by Share Ltd the Ningxia Hui Autonomous Region branch has secured the nine property of the 3 building of lane 231, Lane 231, Lane Huaqiao Town, Huaqiao Town, the defendant of the Bank of China (Limited by Share Ltd).

4. Confirm that the plaintiff Bank of China Limited by Share Ltd the Ningxia Hui Autonomous Region branch has 204 million 420 thousand and 900 stake in Ningxia Bank of China Duncan Garments Co., Ltd., 20 million stake in Ningxia Bank of China Import and Export Co., Ltd., and Beijing Zhuo Co., Ltd., which is held by Limited by Share Ltd in Ningxia, the Bank of China.

Wen fashion textile 18 million 750 thousand shares of Limited by Share Ltd and Jiangyin Zhong Rong Textile Co., Ltd. 50 million yuan equity auction, sale or discount of the proceeds only within the maximum amount of 390 million yuan has the priority of compensation rights, but in Ningxia Bank of China industry Limited by Share Ltd during the bankruptcy reorganization period suspended.

5, the defendant, Ningxia BOC cashmere industry International Group Co., Ltd. has jointly and severally liable for the above-mentioned debts of the Limited by Share Ltd of the Limited by Share Ltd, which are only 1 billion 336 million yuan. The defendant, Ma Shengguo and Zhang Yongchun, have been jointly liable for the debts mentioned above by the defendant in Ningxia's cashmere industry Limited by Share Ltd, which is only 1 billion 336 million yuan. The defendant, Ningxia Bank of China International Group Co., Ltd., Ma Shengguo and Zhang Yongchun assume the guarantee responsibility, and have the right to recover from the defendant Ningxia's Bank of China wool industry Limited by Share Ltd. The case acceptance fee is 503156 yuan, and the preservation fee is 5000 yuan, which is 508156 yuan. It is borne by the defendant, Ningxia BOC cashmere Limited by Share Ltd, Ningxia Bank of China Duncan Garments Co., Ltd., Ningxia Bank of China International Group Co., Ltd., Ma Shengguo and Zhang Yongchun. If he is not satisfied with this judgment, he may submit his petition to the court within fifteen days from the date of the service of the judgment and submit a copy of the number of the other party to appeal to the higher people's Court of the Ningxia Hui Autonomous Region.

Three. Other litigation and arbitration matters

As of the date of announcement, the company and the controlling shareholder shall not have other major litigation or arbitration matters that should be disclosed and not disclosed.

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 creditor bank of China Limited by Share Ltd the Ningxia Hui Autonomous Region branch has declared the creditor's rights to the manager according to law, and the manager is currently reviewing the declared creditor's rights. The company will, in accordance with the provisions of the accounting standards for enterprises, sum up the principal and interest involved in the relevant litigation into liabilities and financial expenses, and the fees for accepting cases.

And compound interest and penalty interest will affect the company's performance after the execution of the case. We invite investors to pay attention to investment risk.

Five. Reference documents

1, the Ningxia Hui Autonomous Region Yinchuan intermediate people's court civil judgment (2018) ning 01, early 1300.

It is hereby announced.

Ningxia silver cashmere Limited by Share Ltd Manager

Two October 30th 19