*ST Velvet ((000982): Changes In The Scope Of Consolidated Statements

Stock Code: 000982 securities short: *ST velvet notice number: 2019-139

Announcement of the change of scope of consolidated statements by Limited by Share Ltd of Ningxia BOC 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.

Since December 31, 2019, the Limited by Share Ltd of Ningxia cashmere industry (hereinafter referred to as "cashmere industry" or "company") has no longer incorporated the original subsidiary companies into the consolidated financial statements of the company.

1. This is no longer included in the list of consolidated financial statements.

Two. Summary of changes in the scope of consolidation of the financial statements

In July 9, 2019, the Yinchuan intermediate people's court made (2018) ningmin 01 Shen Shen 29, "civil ruling", and ordered the creditors Shanghai Yongrun Cci Capital Ltd to apply for the reorganization of the Bank of China. In August 23, 2019, the property management and price adjustment plan was approved by the creditors' meeting. The property disposal scope stipulated in the property management and price change plan includes all the assets except the money fund, the receivable export tax refund, the 100% stake in Jiangyin cashmere import and Export Co., and the 100% stake in the eastern cashmere Co., and other property that is entitled to ownership under the relevant laws and regulations, including the newly discovered property belonging to the silver cashmere industry, the property acquired by the silver cashmere industry and the property that may be acquired during the reorganization period.

In November 13, 2019, the company held second creditors' meeting and investor group meeting. The meeting deliberated and passed the "reorganization plan (Draft)" and "the adjustment plan of investor interest of Limited by Share Ltd in Ningxia cashmere industry Limited by Share Ltd reorganization". The Yinchuan intermediate people's court made (01) Ning 01 break 6-2 "civil ruling" on the same day, approved the Limited by Share Ltd reorganization plan of the Bank of China cashmere industry, and terminated the procedure of Limited by Share Ltd reorganization of Ningxia's cashmere industry.

In December 25, 2019, the company submitted to the manager a report on the implementation of the Limited by Share Ltd reorganization plan of the Bank of Ningxia (cashmere) industry. On the same day, the manager submitted to the Yinchuan intermediate people's court the supervision report on the implementation of the Limited by Share Ltd reorganization plan of the Bank of China (cashmere) industry, and reported the relevant situation of the manager's supervision of the company's implementation of the reorganization plan, and confirmed that the reorganization plan had been implemented. "The report of the Limited by Share Ltd has been carried out.

In December 26, 2019, the Yinchuan intermediate people's court ruled that the cashmere industry restructuring plan was completed.

In December 27, 2019, the company received the civil ruling issued by the Yinchuan intermediate people's court that the implementation of the reorganization plan was completed. The main contents of the civil ruling are as follows:

"According to the fourth and ninety-first articles of the People's Republic of China Enterprise Bankruptcy Law"

Paragraph ninety-fourth and article eleventh of the 154th paragraph, paragraph 1, of the Civil Procedure Law of the people's Republic of China, are as follows:

It is confirmed that the Limited by Share Ltd reorganization plan of Ningxia silver cashmere industry has been completed. As of December 30, 2019, the registration of industrial and commercial registration of these companies is under way.

Three. The impact of the change of the consolidated statements on the company.

According to the relevant provisions of the accounting standards for enterprises, the above-mentioned companies will no longer be incorporated into the consolidated statements of companies since December 31, 2019, no longer included in the list of consolidated financial statements. Since this is no longer included in the consolidated financial statements, the impact of the company on the company as a whole is extensive. The specific amount of impact is based on the audited 2019 annual report officially disclosed by the company.

Four, risk warning

1, the risk that a company's stock may be suspended from listing.

The company's stock trading is currently implemented by delisting risk warning (*ST), and the company's 2018 audited net assets at the end of the year are negative. If the company's audited net assets in the end of 2019 are still negative, according to the provisions of article 14.1.1 of the Shenzhen Stock Exchange Listing Rules (revised November 2018) (hereinafter referred to as the "Listing Rules"), the company's stock will face the risk of suspension of listing.

2, the risk that the company's stock may be terminated.

If the company's shares are suspended from listing, the first year of the year (2020) report shows that the company's net profit or net profit after deducting non recurring gains and losses is negative, net assets at the end of the year are negative, business income is less than ten million yuan, or the company's financial accounting report is issued with reservations, unable to express opinions or negative opinions, or fails to disclose the 2020 annual report within the statutory time limit. According to the provisions of article 14.4.1 (1) to (five) of the listing rules, the company's stock will face the risk of being terminated.

The company will strictly carry out the obligation of information disclosure in strict accordance with relevant laws and regulations, pay close attention to and disclose the progress of related matters in a timely manner. The information released by the company shall be based on the notice published in the securities information times, China Securities Daily, Securities Daily, Shanghai securities Journal and www.cninfo.com.cn. At the same time, it also reminds the majority of investors to make prudent decisions and pay attention to investment risks.

Notice hereby.

Board of Limited by Share Ltd of Ningxia BOC cashmere industry two, 19 December 31st