*ST Middle Velvet (000982): Litigation Progress

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

First, the basic situation of litigation. In January 22, 2019, the company disclosed the plaintiff Yinchuan silver letter Asset Management Co., Ltd., the defendant's subsidiary company, Ningxia Bank of China cashmere industry raw materials Co., Ltd., the company and its shareholders, Ningxia BOC cashmere industry International Group Co., Ltd., and the real controller of the company, Ma Sheng state loan guarantee dispute case. Details of the lawsuit in the company's "2019-09 Ningxia cashmere cashmere Limited by Share Ltd major litigation notice" published in the information disclosure media.

(two) the latest progress of the above litigation cases.

In April 12, 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. 1340].

1. The defendant, Ningxia Bank of China Co., Ltd., within ten days after the conclusion of this decision, paid back 25448648.89 yuan to the plaintiff, Yinchuan silver trust asset management Co., Ltd., and paid 25448648.89 yuan as the base, according to the daily interest rate 5, to the plaintiff Yinchuan silver trust asset management Co., Ltd. to pay the penalty from September 28, 2018 to the date of the judgment.

2, the defendant Ningxia cashmere cashmere Limited by Share Ltd, Ningxia BOC Cashmere Industry Group Co., Ltd. and Ma Sheng Guo are jointly and severally liable for the above debts. After the guarantor assumes the guarantee responsibility, he has the right to recourse to the debtor, Bank of Ningxia cashmere industry raw materials Co., Ltd.

3, dismissed the plaintiff Yinchuan Bank Credit Asset Management Co., Ltd. other litigation claims.

If the obligation of paying money is not fulfilled according to the period specified in this judgment, it shall be in accordance with the Chinese people.

In accordance with the 253rd provision of the Civil Procedure Law of the people's Republic of China, the interest on debts during the period of delay in performance shall be doubled.

The case acceptance fee is 166960 yuan, which is borne by the plaintiff Yinchuan silver trust asset management company limited for 1670 yuan. The defendant is 165 yuan and 165 yuan, the defendant is Ningxia silver cashmere industry raw material Co., Ltd., Ningxia Ningxia silver duty industry Limited by Share Ltd, Ningxia silver Bank International Group Co., Ltd. and Ma Sheng Guo.

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 of the number of the other party or representative to appeal to the higher people's Court of the Ningxia Hui Autonomous Region.

Three. Other litigation and arbitration matters

The company recently received the "Notice of respondent" No. 2223 from the people's Court of the Ningxia Hui Autonomous Region Lingwu City (2019) ning 0181 and the beginning of the Republic of China. The plaintiff, Yinchuan Lanai Material Co., Ltd. filed a lawsuit against the company, requesting the defendant to pay the plaintiff's belt money 35491.95 yuan and the interest paid for the overdue payment until the date of payment. The interest has been calculated from September 28, 2017 to 5% on the basis of the 5% annual interest rate stipulated by the people's Bank of China at the date of payment, and the interest loss from March 26, 2019 to March 26, 2019 is 2681 yuan, totaling 38172.95 yuan. The case acceptance fee is borne by the defendant.

As of the date of this announcement, except for the above litigation cases, the company and the controlling shareholder shall not have other major litigation or arbitration matters that should be disclosed and not disclosed.

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 amount of case acceptance fees and compound interest and penalty will be small, and will not have a significant impact on the company's performance.

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 No. 1340 in early Republic of China];

2, the Ningxia Hui Autonomous Region Lingwu City People's court action notice [(2019) ning 0181 early Republic of China No. 2223].

Notice hereby.

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

Two April 16th 19