Stock Code: 000982 securities short: *ST velvet notice number: 2019-81

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

I. The basic situation of litigation

　　寧夏中銀絨業(yè)股份有限公司(以下簡稱“公司”)于2018年11月13日披露了原告中國銀行股份有限公司寧夏回族自治區(qū)分行訴被告寧夏中銀絨業(yè)股份有限公司、寧夏中銀鄧肯服飾有限公司、寧夏中銀絨業(yè)原料有限公司、寧夏中銀絨業(yè)國際集團(tuán)有限公司、馬生國、張永春借款合同糾紛一案，原告請(qǐng)求依法判令被告寧夏中銀絨業(yè)股份有限公司償還原告借款本金517,765,859.56元，利息、罰息共計(jì)26,282,964.56元(利息、罰息暫計(jì)算至2018年10月18日)，以上合計(jì)544,048,824.12元，依法判令原告對(duì)被告寧夏中銀絨業(yè)股份有限公司、寧夏中銀鄧肯服飾有限公司、寧夏中銀絨業(yè)原料有限公司名下所有的資產(chǎn)、股權(quán)折價(jià)、變賣、拍賣價(jià)款享有優(yōu)先受償權(quán)，依法判令被告寧夏中銀絨業(yè)國際集團(tuán)有限公司、馬生國對(duì)上述債務(wù)承擔(dān)連帶清償責(zé)任，并由被告承擔(dān)訴訟費(fèi)、公告費(fèi)、保全費(fèi)等原告為實(shí)現(xiàn)上述 The cost of the creditor's rights is detailed in the lawsuit two of the 2018-109 major litigation notice of the Ningxia Limited by Share Ltd in the designated information disclosure media.

The Bank of China Limited by Share Ltd the Ningxia Hui Autonomous Region branch has applied for property preservation to the the Ningxia Hui Autonomous Region Higher People's court for the above disputes. The higher people's Court of the Ningxia Hui Autonomous Region has sealed up or frozen according to the application and (113) civil order No. 113 of ningmin county.

The applicants were Ningxia's silver cashmere industry Limited by Share Ltd, Ningxia Zhong Yin cashmere industry raw materials Co., Ltd., Ningxia BOC Duncan Garments Co., Ltd., Ningxia Zhong Yin cashmere International Group Co., Ltd., Ma Shengguo and Zhang Yongchun. Details of the proceedings of the 2019-19 Limited by Share Ltd Ningxia cashmere Limited by Share Ltd proceeding published in the information disclosure media in March 21, 2019.

Two. The latest progress of the above litigation cases.

The company administrator received the civil judgment issued by the the Ningxia Hui Autonomous Region Higher People's Court on August 19, 2019 ([2018] Ning min Chu 113]. The sentence reads as follows:

1, the defendant, the Limited by Share Ltd of the Ningxia Bank of China, paid the principal amount of 517765859.56 yuan to the plaintiff Bank of China, Limited by Share Ltd and the Ningxia Hui Autonomous Region branch within ten days after the entry into force of this decision, and the interest rate was 26282964.56 yuan (calculated to October 18, 2018). The total amount was 517765859.56 yuan, and the interest paid on the date from October 19, 2018 to the actual payment date (interest paid on the basis of the actual principal in arrears was calculated according to the interest rate stipulated in the contract).

2, if the defendant Limited by Share Ltd Ningxia cashmere industry Limited by Share Ltd can not repay the loan principal and interest of the Bank of China, Limited by Share Ltd, the Ningxia Hui Autonomous Region branch, the plaintiff Bank of China, Limited by Share Ltd Bank of China, has the right to discount the price of 131600 kilograms of plush, 355900 kilograms of Australian wool top, 1010340 kilograms of water fleece, 135800 kilograms of velvet, 29700 kilograms of wool, 127160 kilograms of wool, 108000 kilograms of cashmere fabrics, or the auctions and sale of the property within the scope of guarantee.

3, if the defendant Ningxia cashmere cashmere Limited by Share Ltd can not repay the above principal and interest of the plaintiff, Bank of China, Limited by Share Ltd the Ningxia Hui Autonomous Region branch, the plaintiff Bank of China, Limited by Share Ltd the Ningxia Hui Autonomous Region branch, has the right to share with the defendant, Ningxia silver, cashmere industry shares.

The 50000 kilograms of plush, 80000 kilos of cashmere, 47400 kilograms of cashmere yarn, 28900 kilograms of cashmere gauze, 290068 kilos of cashmere fabrics, or the price of auctioning and selling the property are priority in the guarantee area.

4, if the defendant Limited by Share Ltd Ningxia cashmere industry Limited by Share Ltd can not repay the loan principal and interest of the Bank of China, Limited by Share Ltd, the Ningxia Hui Autonomous Region branch, the plaintiff Bank of China, Limited by Share Ltd the Ningxia Hui Autonomous Region branch has the right to discount the 21405 cashmere sweaters, 739 cashmere coats and 929 cashmere accessories, which are pledged by the Ningxia Bank of China Ltd.

5, if the defendant Limited by Share Ltd Ningxia cashmere industry Limited by Share Ltd can not repay the above loan principal and interest of the Bank of China, Limited by Share Ltd, the Ningxia Hui Autonomous Region branch of the Bank of China, the Bank of China, Limited by Share Ltd, the Bank of China has the right to share 20 million shares of Ningxia BOC Duncan Garments Co., Ltd., the 20 million stake of Ningxia silver import and Export Co., Ltd., the 18 million 750 thousand shares of Beijing zhuovin fashion textile import and export company, the 50 million yuan equity discount of Jiangyin Zhong Rong Textile Co., Ltd., or the price of auctioning and selling the shares in the guarantee scope.

6, the defendant, Ningxia BOC cashmere industry International Group Co., Ltd., Ma Shengguo and Zhang Yongchun, are jointly and severally liable for the above loan principal and interest.

7, the defendant, Ningxia silver cashmere Materials Co., Ltd. and Ningxia Bank of China Duncan Garments Co., Ltd. have the right to claim compensation from the Limited by Share Ltd of Ningxia Bank of China after the implementation of the pledge of the Bank of China Limited by Share Ltd branch of the plaintiff.

8, the defendant, Ningxia BOC cashmere industry International Group Co., Ltd., Ma Shengguo and Zhang Yongchun, after assuming the guarantee responsibility, have the right to claim compensation from the defendant, Limited by Share Ltd of the Bank of China (cashmere) industry in Ningxia.

If the obligation of paying money is not fulfilled according to the period specified in this judgment, it shall be doubled to pay for delay in accordance with the provisions of the 253rd article of the Civil Procedure Law of the people's Republic of China.

Interest on debt during the period.

The cost of case acceptance is 2762044 yuan, and the cost of preservation is 5000 yuan, which is borne by the defendant, Ningxia BOC cashmere Limited by Share Ltd, Ningxia Bank of China International Group Co., Ltd., Ma Shengguo and Zhang Yongchun.

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 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 entered the bankruptcy reorganization process in July 9, 2019. The plaintiff of the case, the Bank of China Limited by Share Ltd the Ningxia Hui Autonomous Region branch, 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 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

Civil judgment of the the Ningxia Hui Autonomous Region Higher People's Court [(2018) ning min Chu No. 113].

Notice hereby.

Ningxia silver cashmere Limited by Share Ltd Manager

Two August 20th 19