*ST Middle Velvet ((000982): What Is The Progress Of Major Litigation?

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

In the case of the Sino bank cashmere International Group Co., Ltd., Ma Shengguo, Li Weidong and the dispute over the loan contract, the plaintiff requested the defendant to pay the plaintiff in Ningxia, the Bank of China, the plaintiff, and to repay the principal of the plaintiff, the loan principal, the restructured grace compensation, the fine, and the total amount of breach of contract. The total amount was 212516759.6 yuan; the defendant, the Ningxia Zhong Yin cashmere industry raw material Co., Ltd., the Ningxia Bank of China International Group Co., Ltd., Li Weidong and Ma Sheng Guo, were jointly and severally liable for the above debts according to the law. 1. The basic situation of litigation. The Limited by Share Ltd of Ningxia cashmere industry (hereinafter referred to as the "company") disclosed in December 27, 2018 the plaintiff, Huarong Asset Management Limited by Share Ltd, Gansu branch, the defendant, Ningxia Bank of China, Limited by Share Ltd, Ningxia bank of China Co., Ltd.

See in detail the "2019-121 Ningxia cashmere cashmere Limited by Share Ltd major litigation notice" published in the designated information disclosure media.

Two. The latest progress of the above litigation cases.

In December 18, 2018, the company received the civil ruling issued by the higher people's Court of Gansu province [(2018) No. 272], and has already disclosed the above ruling in December 20, 2018. For details, see 2018-119 Ningxia Bank of China Co., Ltd.

Announcement of major litigation progress.

In April 30, 2019, the company received the civil judgment of the higher people's Court of Gansu province [(2018) No. 272].

1. The defendant, the Limited by Share Ltd of the Ningxia Bank of China (cashmere), repaid the principal amount of 180 million yuan from the plaintiff, Huarong Asset Management Limited by Share Ltd branch of Gansu Province, within ten days from the date of entry into force of this judgment. The restructuring grace allowance, fines and liquidated damages totaled 30500796.12 yuan (provisional until October 31, 2018), and the interest after the loan was based on the 180 million yuan loan principal, which was calculated according to the annual interest rate 24% to the day when the loan was actually repaid.

Two, if the defendant Limited by Share Ltd of Ningxia cashmere industry fails to fulfill the obligations specified in the first judgment of the judgment, the plaintiff, China Huarong Asset Management Limited by Share Ltd Gansu branch, has the right to have the priority of compensation for the discount, auction or sale of the property listed in the list of mortgages provided by the Bank of Ningxia cashmere industry Limited by Share Ltd.

Three, the defendant Ningxia cashmere cashmere raw materials Co., Ltd., Ningxia Bank of China International Group Co., Ltd., Ma Sheng Guo and Li Weidong are jointly and severally liable for the debts specified in the first judgment of the judgment. After assuming the responsibility of guarantee, they have the right to claim compensation from the defendant, Ningxia silver Limited by Share Ltd.

Four, dismissed the plaintiff, China Huarong Asset Management Limited by Share Ltd Gansu branch's other litigant claims.

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 PRC.

The case acceptance fee is 1104384 yuan, and the preservation fee is 5000 yuan, which is made by the defendant, Ningxia silver cashmere.

Industry Limited by Share Ltd, Ningxia Zhong Yin cashmere industry raw materials Co., Ltd., Ningxia Bank of China International Group Co., Ltd., Ma Sheng Guo and Li Weidong bear 1000000 yuan, which is 109384 yuan from the plaintiff, Huarong Asset Management Limited by Share Ltd Gansu branch of China.

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 representative, and appeal to the Supreme People's Court of People's Republic of China.

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. Civil judgment of the higher people's Court of Gansu province [(2018) No. 272 of Gan min Chu].

This is hereby announced.

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

Two May 6th 19