*ST Middle Velvet ((000982): After The Capital Reserve Is Converted Into Capital Stock, The Stock Price Will Not Be Implemented.

*ST 000982.SZ announces that the capital reserve fund's conversion to equity capital is different from the simple issuance of shares in the general sense in order to share dividends. The capital reserve fund is converted into capital stock and is executed after the court has approved the decision. All of these are used to liquidate creditors or introduce reformed investors. The original shareholders of the company have not actually received any additional shares. On the whole, before and after this increase, the company has paid off and offset the company's debt and increased the owner's equity while expanding its capital stock. There is a difference between the adjustment of the equity and the owner's equity before and after the general increase.

According to the "reorganization plan", the 2456833774 capital stock converted to the capital reserve totaled 8 billion 664 million yuan of debt and raised 1 billion 50 million yuan of cash for the company, which was equivalent to 3.95 yuan per share. Therefore, there is no increase in the owner's equity in the CB industry, which is significantly lower than the increase in equity and net asset per share.

To sum up, the financial consultant believes that there is no increase in capital stock and no change in owner's equity or the increase of company owner's equity is obviously lower than the increase of capital stock.

Therefore, the financial advisers believe that the restructuring of the Bank of China's cashmere industry will increase the capital reserve and the stock price can not be adjusted.