*ST Kerry (002072): To Transfer 40% Stake In Xinjiang De Cotton And 50% Stake In Bo Yuan Fund.

*ST 002072.SZ announced that in order to streamline the company structure and save management costs, the company will hold the 40% stake of Xinjiang de cotton Mining Co., Ltd. (Xinjiang de cotton) and the 50% stake of Shenzhen de Mibo yuan fund management Co., Ltd. (Bo Yuan fund), and transfer it to Beijing Qian Yuanhong Sheng Consulting Co., Ltd. (the two companies are to be transferred), the share transfer price is 1 yuan. After the signing of the equity transfer agreement, the company will no longer hold the shares or any shareholder's rights of the transferred company.

The company holds 40% stake in Xinjiang de cotton, and the company has no effect on Xinjiang de cotton. As of December 31, 2017, a total loss of 26 million 758 thousand and 600 yuan has been accumulated. The company has a 40% stake, corresponding to a loss of 10 million 703 thousand and 400 yuan. According to the company's accounting transfer of long-term equity investment equity method, the company has invested 8 million yuan in all its losses. The company's current net assets of its long-term equity investment are 0, and 2 million 703 thousand and 400 yuan loss has not yet been confirmed. Through the open website search, Xinjiang de cotton currently involves about 8 cases, involving a total of about 75 million 879 thousand yuan.

The company has a 50% stake in the Bo Yuan fund, but in 2019, the company had no effect on it. As of December 31, 2018, the yuan yuan fund accumulated a total loss of 10 million 257 thousand and 800 yuan, and the company held a 50% stake corresponding to a loss of 5 million 128 thousand and 900 yuan. In accordance with the accounting transfer of the company's long-term equity investment equity method, the company's investment of 5 million yuan has been completely lost. The company's current long-term equity investment book assets are 0, and a 128 thousand and 900 yuan loss has not yet been confirmed.

Through this equity transfer, it helps to improve the efficiency of internal management, optimize asset allocation, focus on the core business development of the company, reduce the negative factors of the company, and better achieve the company's strategic layout. In view of the company's current investment in the transfer company has been reduced to zero, the Ministry of Finance estimates that the sale of assets will not affect the company's profits and losses, specifically based on the annual audit data of the company. There is no risk of equity withdrawal in stock transfer.