*ST Kerry (002072): Progress In Affiliate Transactions (Two)

Kerid Cmi Holdings Ltd's progress announcement on subsidiary related transaction matters (two)

All members of the company and the board of directors guarantee that the contents of the information disclosure are true, accurate and complete, without false records, misleading statements or major omissions.

Overview of related party transactions

In December 19, 2019, Kai Reed Cmi Holdings Ltd (hereinafter referred to as "company" or "Kai Reed"), the company's wholly owned subsidiary, Dezhou Jinmian Textile Co., Ltd. signed a contract with Mr. Zhang Peifeng, a shareholder of the company. The contract was held at the eighteenth meeting of the seventh board of directors of the company in December 19, 2019, and the company 2019 December 31, 2019. The third provisional shareholders' meeting has already entered into force after deliberation and approval. According to the contract, Mr. Zhang Peifeng, the shareholder of the company, should pay 249508699 yuan to the company. The company has announced the relevant information on the related transactions. The contents are detailed in the company's announcement on the related transactions of subsidiaries (two) in December 25, 2019 (Bulletin number: 2019-L126).

Two, transaction progress

Recently, the company received Baocheng Dingsheng international trade (Beijing) Co., Ltd. (director of the Department of Commerce, Mr. Wang Jian, Mr. Wang Xuanzhe's actual control, holding 3% of the company) to pay the first payment for Mr. Zhang Peifeng 25 million yuan, Zhang Peifeng this payment and the contract book agreed 2 million 720 thousand yuan, the difference will be paid as soon as possible.

Three, risk warning

According to the above contract, Mr. Zhang Peifeng, shareholder, should pay 249508699 yuan to the company. Up to now, the company has received $25 million in the first installment, which is 2 million 720 thousand yuan against the actual receivables. Mr. Zhang Peifeng should pay the remaining amount of 221788699 yuan to the company in 9 installments before March 15, 2022. The company will actively urge Mr. Zhang Peifeng to make up the difference between the first phase and 2 million 720 thousand yuan and fulfill the subsequent repayment obligation according to the agreement. Mr. Zhang Peifeng, a trader of related transactions, is currently detained in the detention center of Jinhua, Zhejiang Province, and has been listed as a restricted high consumer because of 21 cases involving company litigation. Since 2 of the cases involved are involved in the execution of the case, the case is being executed, and whether there will be any subsequent repayment according to the contract and whether it has the ability to perform is still uncertain. Investors should pay attention to investment risk.

Four. Reference documents

1. Relevant documents required by the Shenzhen Stock Exchange

Notice hereby

Kerid Cmi Holdings Ltd board of directors

March 26, 2020