*ST Middle Velvet (000982): Annual Report On Postponed Reply And Letter Of Inquiry

Ningxia cashmere industry Limited by Share Ltd announcements on postponed reply to the Shenzhen Stock Exchange's annual report inquiry letter and Risk Reminder

Special risk warning:

1, the company's 2018 audited net assets at the end of the year were negative, and the company's stock continued to be a warning of delisting risks by the Shenzhen stock exchange.

If the company continues to be subject to the delisting risk warning, the company's 2019 audited net assets of the end of the year will continue to be negative. The Shenzhen stock exchange may suspend the listing of the company's shares. If the company is listed on the Shenzhen Stock Exchange Listing Rules 14.4.1, if the company is suspended, the Shenzhen stock exchange has the right to terminate the listing of the company's shares.

We invite investors to pay attention to risks.

2, the company disclosed in November 16, 2018 that the creditors of the company applied for bankruptcy reorganization of the Yinchuan intermediate people's Court on the grounds that the company could not repay the debts due and obviously lacked the solvency.

Whether the application can be accepted by the people's court and whether the company has entered the reorganization process is still uncertain.

3, Heng Tian Jiye (Shenzhen) Investment Center (limited partnership) and harvest Capital Management Co., Ltd. applied for the realization of pledge security interests of the company's stock of a total of 81 million 496 thousand shares, accounting for Ningxia Bank of China International Group Limited (referred to as "Zhong Rong Group") holding 481496444 of the company's number of 16.93%, accounting for 4.51% of the company's total share capital.

In view of the uncertainty of the auction or sale of the above-mentioned shares, if the security interests or litigation procedures are realized, the Cashmere Group may lose part of the equity interest, resulting in a further reduction in the shareholding ratio of the company and the further weakening of its control capability, which may lose the position of the largest shareholder of the company.

In May 16, 2019, the Limited by Share Ltd of Ningxia Bank of China (hereinafter referred to as "the company") received the annual report on the annual report of Ningxia's cashmere industry, which was issued by the Shenzhen securities and Exchange Company management department [the annual report of the company's annual inquiry letter [2019] sixtieth].

Companies and audit institutions are required to make written reply to the annual inquiry letter before May 23, 2019.

After receiving the inquiry letter, the company has joined the audit institutions to step up the reply to the contents of the annual inquiry letter. However, due to the content of the inquiry, the company can not complete the relevant work within the prescribed time limit according to the current progress.

After the company applies to the Shenzhen stock exchange, the company will postpone its reply to the annual inquiry letter and strive to reply to the annual inquiry letter as soon as possible.

The company information is based on the announcement in the securities information times, the China Securities Daily, the Securities Daily, the Shanghai Securities Daily and the www.cninfo.com.cn.

We invite investors to pay attention to investment risk.

Notice hereby.

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

Two May 24th 19