*ST Middle Velvet (000982): Litigation Progress

Stock Code: 000982 securities short: *ST velvet notice number: 2020-25

Announcement of proceedings of Limited by Share Ltd in Ningxia cashmere industry

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 litigation

The Limited by Share Ltd of Ningxia cashmere industry (hereinafter referred to as "the company") disclosed in June 5, 2019 the plaintiff's open development fund Co., Ltd. v. the defendant's company and Ningxia guarantee Group Limited company's equity financing contract dispute case, and the plaintiff requested that the company repurchase the Bank of China's Ningxia Clothing Co., Ltd. ("Bank of China Duncan"), which was held by the development development fund in accordance with the law, 19.92% of the company's purchase of the dispute. The plaintiff requested the company to repurchase the stock financing contract of the company in Ningxia. Shares, and the plaintiff's equity repurchase payment, payment of liquidated damages, and litigation costs. See in detail the "2019-61 Ningxia cashmere cashmere Limited by Share Ltd major litigation notice" published in the designated information disclosure media.

As an applicant, the national open development fund Co., Ltd. applied for the preservation of property before the Xicheng District people's Court of Beijing, requesting the seizure, seizure or freezing of the property valued at 43337638.67 yuan under the name of the Ningxia cashmere industry Limited by Share Ltd and Ningxia guarantee Group Co., Ltd., and deposits 43337 of its account in the Central Bank of China Development Bank's direct business center. 638.67 yuan as a guarantee.

The people's Court of Xicheng District, Beijing, after examining and verdict, sealed up, seized or frozen the property of the applicant, Ningxia's cashmere industry Limited by Share Ltd and Ningxia guarantee Group Co., Ltd. under the name of 43337638.67 yuan. The application fee of the case is 5000 yuan, which is borne by the applicant country. Details of the proceedings of the 2019-68 Limited by Share Ltd Ningxia cashmere Limited by Share Ltd proceeding published in the information disclosure media in July 5, 2019.

Two. The latest progress of the above litigation cases.

In April 3, 2020, the company received the civil judgment of the people's Court of Xicheng District, Beijing (2019) Beijing and 0102 early Republic of China 19864.

1, confirm that the 19.92% stake of Ningxia Bank of China Duncan Clothing Co., Ltd. held by the developer development fund Co., Ltd. is owned by the defendant, Ningxia Bank of China (cashmere), Limited by Share Ltd. Meanwhile, it is confirmed that the plaintiff Development Development Fund Limited has a claim of 40 million 670 thousand yuan for the defendant, Ningxia's cashmere industry Limited by Share Ltd.

2, confirm that the plaintiff's development and Development Fund Limited has the right to claim liquidated damages for the Limited by Share Ltd of the Ningxia cashmere industry Limited by Share Ltd, which is calculated on the basis of 53 million 670 thousand yuan, from September 1, 2018 to September 29, 2018; based on 47 million 170 thousand yuan, from September 30, 2018 to October 9, 2018; and 40 million 670 thousand yuan as the base. From October 10, 2018 to July 9, 2019, the above amount should be deducted from 167001.33 yuan.

3. The defendant Ningxia guaranty Group Co., Ltd., within ten days from the date of its entry into force, has opened the scope of the first part and second claims of the Limited by Share Ltd in the bankruptcy proceedings of the plaintiff to the plaintiff's development fund Co., Ltd. in Ningxia, in the bankruptcy proceedings of the plaintiff's development fund Co., Ltd. in the defendant's Bank of China (CFA) Limited by Share Ltd in Ningxia. Undertake joint and several liability for liquidation;

4, dismiss other litigation claims of the plaintiff's Development Fund Limited.

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 case acceptance fee is 18790 yuan, which is borne by the defendant, Ningxia BOC cashmere Limited by Share Ltd and defendant Ningxia guaranty Group Co., Ltd. (within seven days after the decision comes into force).

If he is not satisfied with this judgment, he may submit his petition to the court within fifteen days from the date of the judgment, and submit a copy according to the number of the other party. At the same time, he will pay the appeal fee and appeal to the second middle level people's Court of Beijing according to the amount of appeal appeal. If the appeal fee is not paid within seven days after the expiration of the appeal, the appeal shall be automatically withdrawn.

Three. Other litigation and arbitration matters

As of the date of this announcement, there are no other major litigation or arbitration matters that 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.

As for the claims involved in the above litigation, the company manager has been treated as a suspension of the confirmation of creditor's rights in the process of reorganization and implementation. After the decision of this case comes into effect, it will be resolved according to the debt repayment plan stipulated in the reorganization plan, which will not have a significant impact on the company's 2020 business results. We invite investors to pay attention to investment risk.

Five. Reference documents

1, Beijing Xicheng District people's court civil judgment [(2019) Beijing 0102 early Republic 19864].

Notice hereby.

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

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