*ST Middle Velvet ((000982): Heng Tian Jinshi Will Become The Controlling Shareholder Of The Company.

*ST 000982.SZ announced that in December 24, 2019, the company has completed the registration of shares in the reorganization plan at Shenzhen branch of China Securities Depository and Clearing Co., Ltd.

Before the change of interest, Heng Tian Jinshi indirectly held 394 million 444 thousand shares of the company through its control of Heng Tian Jia Ye and Heng Tian Ju Xin, accounting for 21.85% of the total shares of the company, and the second largest shareholder of the listed company. After the implementation of the reorganization plan, the total share capital of the company increased to about 4 billion 261 million 880 thousand shares. After the change of interest, Heng Tian Jinshi will directly hold 170994176 shares of the listed company, plus shares held indirectly by Heng Tian Ju Xin and Heng Tian Jia Ye, and Heng Tian Jinshi holds 565438176 shares of the listed company, accounting for 13.27%, and become the controlling shareholder of the listed company. According to the shareholding structure disclosed by Heng Tian Jinshi, there are no actual controllers in the company.

Before the change of interest, the Cashmere Group held 481496444 of the company's stock, accounting for 26.68% of the total shares of the listed company. It was the controlling shareholder of the listed company and the actual controller was Mr. Ma Sheng Guo. After the completion of the equity changes, the Cashmere Group still owns 481496444 of the company's stock. However, due to the increase in the total share capital of the listed company, the proportion of the stake in the Cashmere Group has been diluted to 11.30%, which is currently the second largest shareholder of the company. However, the Ningxia Heng Tian Silk Road Industrial Investment Fund partnership (limited partnership) has applied to the court for auction and sale of the 400 million stake in the company. If it is finally permitted by the court, and the 81 million 496 thousand shares of the company have been applied for the realization of the pledge right, the 481496000 shares of the 481496444 shares of the company will be auctioned and sold. Based on the uncertainty of the auction or sale of the shares mentioned above, the Cashmere Group will still lose part of the equity interest, resulting in a further reduction in the shareholding ratio of its stake in the Bank of China. Please pay attention to the majority of investors.

Before the change of interest, the Shaanxi branch of the Export Import Bank of China did not hold shares in the company. After the change of interest, the Shaanxi branch of the Export Import Bank of China will transfer 255474983 of its shares to the debt of the Shaanxi branch of the export and Import Bank of China, and the stock price will be calculated at 5.87 yuan / share. After the completion of the equity changes, the number of shares of the Shaanxi branch of the Export Import Bank of China increased from 0 to 255474983 shares, and the shareholding ratio increased from 0% to 5.99%.

Due to the implementation of the reorganization plan, after the change of interest, the number of shares registered in the special account of bankrupt enterprise property disposal of Limited by Share Ltd of Ningxia cashmere industry Limited by Share Ltd was 693409979 shares, accounting for 16.27% of the total shares of the company. The special account for the disposal of the property of the bankrupt enterprise opened by the manager is only a temporary account used to assist in the implementation of the reorganization plan, and it will be automatically cancelled after the completion of the reorganization plan. During the period of holding shares, the rights of the shareholders of the company corresponding to the underlying shares shall not be made (including but not limited to voting rights, claim for distribution of interests, etc.).