*ST Middle Velvet (000982): Major Litigation

Securities code: 000982 securities short: *ST velvet notice number: 2019-09

Ningxia BOC cashmere Limited by Share Ltd

Major litigation notice

1. The basic situation of the acceptance of this litigation matter.

The Limited by Share Ltd of Ningxia cashmere industry (hereinafter referred to as "the company") received the summons, the notice of proof, the notice of action and the petition of the people's Court of the Yinchuan intermediate people's Court of the Ningxia Hui Autonomous Region (hereinafter referred to as the "Yinchuan intermediate court") in January 18, 2019. It received two submissions from the people's Court of Lingwu City, including the subpoena, the notice of proof, the notice of action and the civil complaint.

Two. The basic situation of litigation matters.

(1) litigation

The lawsuit is as follows

1. Litigants

Plaintiff: Yinchuan silver trust asset management Co., Ltd., residence: Ningxia, Yinchuan, Jin Feng District, 239 West Shanghai Road, 18 building, 18, legal representative: Ma Yingjun

Defendant 1: Ningxia Bank of China cashmere industry raw materials Co., Ltd., place of residence: Lingwu City cashmere Industrial Park, central bank Avenue, legal representative: Li Lin

Defendant 2: Ningxia cashmere cashmere Limited by Share Ltd, residence: Lingwu ecological textile park (north side of south 2nd Ring Road, Lingwu City, east of two road), legal representative: battle hero

Defendant 3: Ningxia cashmere industry International Group Co., Ltd., residence: Lingwu ecological textile park (north side of south 2nd Ring Road, Lingwu City, east of two road), legal representative: Ma Shengming

Defendant 4: Ma Shengguo

2. Facts and reasons stated in the original statement of the case.

The defendant, Ningxia BOC cashmere Materials Co., Ltd. and Shanghai Yinchuan Development Bank Limited by Share Ltd Yinchuan branch (hereinafter referred to as "Pudong Development Bank Yinchuan branch") signed the "capital loan contract" (numbering 33032016280013) in September 9, 2016. The loan amount is RMB 25 million yuan, and the term is 1 years, from September 9, 2016 to September 8, 2017.

The western (Yinchuan) Company limited by guarantee (hereinafter referred to as the "Western guarantee") has signed a guarantee contract with the Yinchuan branch of Pudong Development Bank (No. YB3303201628001301) and issued a letter of guarantee ([2016]85) to provide joint and several liability guarantee.

At the same time, the Western guarantee and the defendant signed a "contract of entrustment guarantee" (serial number:

XBDB-ZYYL-1609001) to provide joint and several liability guarantee for this loan.

In order to guarantee the legitimate rights and interests of the Western guarantee, the defendant two Ningxia cashmere cashmere Limited by Share Ltd, the defendant three Ningxia Bank of China International Group Co., Ltd. and the defendant four Ma Sheng state respectively signed the "anti surety guarantee contract" with the Western guarantee respectively, providing joint and several liability to guarantee the counter guarantee for the Western guarantee.

After the maturity of the loan, due to the shortage of funds, the defendant can not repay the loan and apply for a renewal period of 1 years. From September 9, 2017 to September 8, 2018, the Yinchuan branch of Pudong Development Bank agreed to renew the contract and sign the loan extension agreement (number: 33032016280013). The Western guarantee also agreed to its application for extension, and signed a renewal agreement with it.

According to the loan extension agreement, the loan will expire on September 5, 2018.

The time limit for the extension of the loan contract has expired, and the defendants in the western region have not guaranteed the repayment obligation to the western part.

As of September 17, 2018, the Yinchuan branch of Pudong Development Bank sent a "Notice of overdue loans (interest charges) collection" to the Western guarantee (the 01 time of 2018, No. 2018091701).

In September 27, 2018, the Western guarantee, Pudong Development Bank Yinchuan branch and the plaintiff jointly signed the "committee".

The agreement of payment for payment has agreed that the plaintiff will repay the principal and interest and penalty interest of the Yinchuan branch of the Shanghai Pudong Development Bank for a total of 25448648.89 yuan, and obtain the right to recourse against the corresponding counter guarantor and counter guaranty.

On that day, the compensatory money has been entered into the repayment account of Shanghai Pudong Development Bank.

The Western guarantee and the plaintiff at the same time signed the "debt pfer agreement", which stipulated that all the claims were pferred to the plaintiff. The Western guarantee also issued a notice of assignment of the creditor's rights to the four defendants to inform the pfer of the creditor's rights.

3. Litigation request

(1) the plaintiff is required to order the defendant to repay the principal and interest of the plaintiff for a total of RMB.

25448648.89 yuan (including 25000000 yuan in principal, interest and 448648.89 yuan in penalty).

(2) the plaintiff is required to order the defendant to pay the interest of RMB 183336.31 yuan (including RMB 25448648.89 yuan as the base, 6.65% at the annual interest rate, from September 28, 2018 to November 6, 2018) and impose a penalty of RMB 496248.7 yuan (of which:

On the basis of RMB 25448648.89 yuan, it will be calculated on a daily basis of 0.5 per thousand, from September 28, 2018 to November 6, 2018.

(3) to request the defendant to always pay the interest from the date of prosecution until the day when the debt is fully fulfilled.

(4) to request the defendant to make joint and several liability for the above debts in accordance with the law; two or three. Four.

(5) a request to order the costs of litigation, preservation and other expenses for the realization of claims shall be borne by the defendant.

(two) litigation two

The litigation is as follows:

1. Litigants

Plaintiff: Yinchuan Hengtong Rolling Bearing Co., Ltd.: place of residence: Room 302, unit 3, building 17, Yinchuan sugar factory, Jinfeng District, Yinchuan. The legal representative is Cui Qian.

Defendant: Ningxia cashmere cashmere Limited by Share Ltd, residence: Ningxia Lingwu ecological textile park (north side of south 2nd Ring Road, Lingwu City, east of two road), legal representative: Battle Yingjie

2. Facts and reasons stated in the original statement of the case.

From October 2015 to January 23, 2017, Ningxia De Yuan Industrial Development Co., Ltd. purchased machinery parts for the defendant at the plaintiff's office, and owed 132316 yuan to the plaintiff.

In September 19, 2017, the original defendant and Ningxia De Yuan Industrial Development Co., Ltd. jointly signed the "debt pfer agreement", and the three party agreed that the defendant directly undertake 132316 yuan for the payment of the payment for the plaintiff by the Ningxia De Yuan Industrial Development Co.

After the agreement was signed, the plaintiff repeatedly urged the defendant to pay the arrears, and the defendant had not paid it.

3. Litigation request

It is requested that the defendant pay the plaintiff 132316 yuan in accordance with the law, and the interest on the overdue payment is 12255.7 yuan (temporarily until December 2018, 31), and the interest paid on the basis of the 50% interest rate calculated by the Bank of China for 4.75% of the floating interest rate is 50%.

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 indictment", "summons" (2018) ning 01, early 1340 of the people's Republic of China; 2, "civil indictment", "summons" (2019) ning 0181 and 414 of the early Republic of China.

Notice hereby.

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

Two January 22nd 19