*ST Velvet ((000982): Progress Of Shareholder'S Litigation Matters

Announcement of progress made by Limited by Share Ltd of Ningxia Bank of China on shareholder matters related to litigation

All members of the company and the board of directors guarantee the authenticity, accuracy and completeness of the information disclosure. There is no false record, misleading statement or major omission.

I. The basic situation of the cases concerned

In December 17, 2019, Ningxia Ningxia silver cashmere industry Limited by Share Ltd (hereinafter referred to as "company" or "cashmere industry") disclosed the Ningxia Heng Tian Silk Road Industrial Investment Fund partnership (limited partnership) (hereinafter referred to as "Heng Tian Silk Road Fund") to apply for the realization of hypothecation security interest in Futian District people's Court (hereinafter referred to as the "court"), asking for auction or sale of Ningxia silver cashmere industry. International Group Limited (hereinafter referred to as "Zhong Rong Group") holds 400 million shares of the Bank of China's cashmere industry, and the proceeds are paid first.

For details of the case, please refer to the announcement of the Ningxia Bank of China (Limited by Share Ltd) on the litigation of controlling shareholders of the company (Announcement No. 2019-130), which was disclosed by our company on December 17, 2019.

Two. The latest developments in the relevant cases.

In March 13, 2020, the Heng Tian silk road fund received the civil summons of the people's Court of Futian District, Shenzhen (No. 2019) Guangdong Province 0304 people special 3984 on the above matters; the case is: application for the realization of security interests; the opening time is: 10:30 March 27, 2020.

Three. Other related information.

The final outcome of the litigation is uncertain, and the Heng Tian Silk Road Fund is actively handling the lawsuit in accordance with the law. The company will pay close attention to the progress of the above litigation and fulfill the obligation of information disclosure in time according to the information disclosure requirements.

In addition, in January 7, 2020, the company disclosed the announcement on the progress of the litigation of matters concerning the controlling shareholder of the Limited by Share Ltd of Ningxia Bank of China (Announcement No.: 2020-02), Heng Tian Jiye (Shenzhen) Investment Center (limited partnership) (for example, "Heng Tian Ka Ye"), and harvest Capital Management Co., Ltd.

"Harvest capital" has applied to the court for the implementation of the Cashmere Group's holdings of a total of 81 million 496 thousand shares, accounting for 481496 of the Cashmere Group owned by the Cashmere Group. 16.93% of the 444 shares account for 1.9122% of the total share capital of the company. Based on the uncertainty of the auction or sale of the shares mentioned above, the Cashmere Group will lose some of the shares, resulting in a further reduction in the shareholding ratio of the Bank of China. The company will pay close attention to the progress of the above litigation and fulfill the obligation of information disclosure in time according to the information disclosure requirements.

As a result of the implementation of the reorganization plan, the company's total share capital has increased to 4261877053 shares, and the Heng Tian Jin Shi Cci Capital Ltd (hereinafter referred to as "Heng Tian Jinshi") has directly held and shares the shares held by the listed companies of the Heng Tian Poly letter (Shenzhen) Investment Center (limited partnership) and Heng Tian Jia Ye (565438). 176 shares, accounting for 13.2674% of the total share capital of listed companies, are the controlling shareholders of the company. As of the announcement date, the Cashmere Group holds 481496444 shares of the company, accounting for 11.2978% of the total share capital of the company, and is the second largest shareholder of the company. The total amount of shares held by the Cashmere Group is 481496000 shares, accounting for 11.2977% of the total share capital of the company, accounting for 99.9999% of the shares held by the Cashmere Group, and 481496444 shares of the Cashmere Group Company are all frozen by the judiciary, and their shares have been frozen for 11 times.

The company solemnly reminding investors: the giant wave information network www.cninfo.com.cn and China Securities Daily, Shanghai Securities Daily, securities times, and Securities Daily are the information disclosure media selected by the company. All information of the company is based on the information published in the above designated media. Investors are invited to invest rationally and pay attention to risks.

Four. Reference documents

Shenzhen Futian District people's court summons [2019) Guangdong 0304 min 3984].

Notice hereby.

The board of Limited by Share Ltd of Ningxia BOC cashmere industry

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