*ST Middle Velvet (000982): Litigation Progress

Ningxia Bank of China Limited by Share Ltd managers' progress notice on company litigation

I. The basic situation of litigation

　　宁夏中银绒业股份有限公司(以下简称“公司”或“中银绒业”)管理人于2019年9月7日披露了原告宁夏担保集团有限公司诉被告宁夏中银绒业股份有限公司、宁夏中银邓肯服饰有限公司、宁夏中银绒业国际集团有限公司、马生国、马生明、李卫东《委托担保合同纠纷》一案，原告请求判令被告中银绒业偿还原告为其代偿的债务金额6,500,000元及自2018年10月11日至实际清偿债务之日的逾期付款利息；判令被告中银绒业向原告承担违约金650,000元；判令被告中银绒业向原告支付担保费325,360元及逾期支付担保费产生的违约金26,733.75元，并承担自2019年6月12日至实际付清担保费之日的违约金；判令被告宁夏中银邓肯服饰有限公司、宁夏中银绒业国际集团有限公司、马生明、马生国、李卫东对上述第一项、二项、三项诉讼请求中涉及的全部债务向原告承担连带清偿责任；判令原 In respect of the above claims, the above first, two and three claims are entitled to priority in the 21 million 280 thousand shares of the Bank of Ningxia, Ningxia, which are pledged by the defendant, the Bank of China International Group Co., Ltd., and the litigation costs, preservation fees and reasonable expenses of the case are ordered by the above-mentioned 21 million 280 thousand cases.

Six defendants.

The above litigation matters are detailed in the notice of the 2019-93 Limited by Share Ltd of Ningxia cashmere industry Limited by Share Ltd on the company litigation published by the company manager in the specified information disclosure media in September 7, 2019.

Two. The latest progress of the above litigation cases.

The company administrator received the civil ruling of the people's Court of Jinfeng District, Yinchuan, the Ningxia Hui Autonomous Region on October 8, 2019. [(2019) ning 0106, early Republic of China No. 8194], the ruling was as follows:

According to the examination of the court, according to the twenty-first provision of the Supreme People's Court on the application of certain provisions of the People's Republic of China Enterprise Bankruptcy Law (two), before the bankruptcy application is accepted, the creditor will bring the following proceedings to the debtor's property. If the case is not yet concluded when the bankruptcy application is accepted, the people's court shall suspend the trial: (four) other individual liquidation proceedings against the debtor's property. In this case, the defendant, Limited by Share Ltd of Ningxia cashmere industry, was applied by Shanghai Yongrun Cci Capital Ltd. In July 9, 2019, the Yinchuan intermediate people's court made (2018) ningmin 01 Shen Shen 29 civil ruling, and adjudication accepted Shanghai Yong run Cci Capital Ltd's application for restructuring Ningxia's cashmere industry. The plaintiff lodge a lawsuit against the court on 11 June 2019, asking the defendant, Ningxia Bank of China, Limited by Share Ltd to pay compensation, guarantee fees, liquidated damages and so on. It belongs to the individual liquidation proceedings initiated before the bankruptcy application is accepted on the debtor's property. The case has not yet been concluded, so the hearing should be suspended. In accordance with the provisions of the Supreme People's Court on certain issues concerning the application of the bankruptcy law of the People's Republic of China (two), the provisions of the 154th Article 1 (six) of the twenty-first national procedure law of the people's Republic of China are as follows:

The case is suspended.

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 entered the bankruptcy reorganization process in July 9, 2019. The plaintiff of the plaintiff Ningxia guaranty Group Limited has declared the claim to the manager according to law. The manager is currently examining the plaintiff's declaration of creditor's rights. The company will, in accordance with the "accounting standards for enterprises" and other provisions, sum up the principal and interest involved in the relevant litigation into liabilities and financial expenses. The fees for accepting cases, compound interest, penalty interest, penalty and guarantee fee 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 ruling of people's Court of Jinfeng District, Yinchuan, the Ningxia Hui Autonomous Region [(2019) ning 0106, early Republic of China No. 8194].

Notice hereby.

Ningxia silver cashmere Limited by Share Ltd Manager

Two October 10th 19