*ST Middle Velvet (000982): Major Litigation Progress

Announcement of major litigation progress of Ningxia silver cashmere Limited by Share Ltd

In January 8, 2019, it disclosed the case of the plaintiff, the Bank of China, the Limited by Share Ltd, the Ningxia Hui Autonomous Region, the defendant, the Bank of Ningxia, the Bank of China, the Bank of Ningxia, the Ningxia International Bank Group Limited, and the contract dispute between Ma Shengguo and Zhang Yongchun. The plaintiff requested that the defendant, Ningxia's Bank of China, pay the plaintiff's principal sum of 26 million yuan and the corresponding interest, penalty interest and compound interest according to the law, and ordered the defendant Ningxia Bank of China International Group Limited, Ma Shengguo and Zhang Yongchun to assume joint liabilities for the above debts, and the plaintiff to pay the lawyer's fees, litigation costs and preservation fees for the realization of the above claims. The details are in the company's "2019-04 Ningxia central silver pile industry major litigation notice" published in the specified information disclosure media. I. The basic situation of litigation, Limited by Share Ltd of Ningxia BOC cashmere industry (hereinafter referred to as "company")

Two. The latest progress of the above litigation cases.

In February 21, 2019, the company received the civil judgment of the intermediate people's Court of Yinchuan, the Ningxia Hui Autonomous Region [(2018) ning 01, early Republic of China No. 1302].

1. The defendant, the Limited by Share Ltd of Ningxia cashmere industry, paid the interest of 26 million yuan, interest 968346.47 yuan (interest calculated to October 18, 2018) of the plaintiff's Bank of China and Limited by Share Ltd the Ningxia Hui Autonomous Region branch within ten days after the entry into force of this judgment, and the interest from October 19, 2018 to the date of determining the payment.

The contract stipulate execution.

2, if the defendant Ningxia cashmere cashmere Limited by Share Ltd fails to fulfill the obligation of repayment according to the above first item, the plaintiff Bank of China, Limited by Share Ltd the Ningxia Hui Autonomous Region branch shall have the right to discount or take the 5464 machines and equipment of the Bank of the Ningxia cashmere industry of the defendant.

The sale and sale price is paid first.

3, if the defendant Ningxia cashmere cashmere Limited by Share Ltd fails to fulfill the obligation of repayment according to the above mentioned first item, the plaintiff Bank of China, Limited by Share Ltd the Ningxia Hui Autonomous Region branch shall have the right to share 20 million shares of all the Ningxia Bank of China Duncan Garments Co., Ltd., the 20 million stake of Ningxia BOC import and Export Co., Ltd., the 18 million 750 thousand stake of Beijing Zhuwen Fashion Textile Co., Ltd., and 50 million yuan equity of Jiangyin Zhong Rong Textile Co., Ltd., in the case of the Bank of Ningxia, the Bank of China, which is under the Limited by Share Ltd name of Limited by Share Ltd.

4, the defendant, Ningxia BOC cashmere International Group Co., Ltd., Ma Shengguo and Zhang Yongchun, undertake the guarantee responsibility for the first identified debt in the maximum amount of 1336000000 yuan; the guarantor has the right to recover the debt from the debtor after he assumes the guarantee responsibility.

If the obligation of paying money is not fulfilled according to the period specified in this judgment, the debt interest of the period of delay in performance shall be doubled according to the 253rd provision of the Civil Procedure Law of the people's Republic of China.

The acceptance fee of this case is 176642 yuan, which is borne by the defendant, Ningxia BOC cashmere Limited by Share Ltd, Ningxia Bank of China International Group Co., Ltd., Ma Shengguo and Zhang Yongchun.

If he is not satisfied with this judgment, he may submit his petition to the court within fifteen days from the date of the service of the judgment and submit a copy according to the number of the other party or the number of the agent, and appeal to the higher people's Court of the Ningxia Hui Autonomous Region.

Three. Other litigation and arbitration matters

As of the date of this announcement, no major litigation or arbitration matters should be disclosed and not disclosed by the company and the controlling shareholder.

Four. The possible impact of this announcement on the company's current profits or future profits.

The company will, in accordance with the accounting standards for enterprises and other provisions, sum up the principal and interest involved in the related litigation into liabilities and financial expenses, and the fees for accepting cases, compound interest and penalty interest will affect the performance of the company after the execution of the case.

We invite investors to pay attention to investment risk.

Five. Reference documents

1, the Ningxia Hui Autonomous Region Yinchuan intermediate people's court civil judgment [[2018] Ning 01 early Republic of China No. 1302].

Notice hereby.

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

Two February 22nd 19