*St Zhongrong ((000982): Passive Reduction Of Some Shares Held By Shareholders Holding More Than 5% Shares And Progress Of Judicial Auction

Ningxia Zhongyin Cashmere Industry Co., Ltd. passively reduced part of the shares held by more than 5% shareholders of the company

Announcement on the progress of judicial auction

The company and all members of the board of directors guarantee that the information disclosure content is true, accurate and complete, and there are no false records, misleading statements or major omissions.

Ningxia Zhongyin Cashmere Industry Co., Ltd. (hereinafter referred to as "the company" or "BOC cashmere industry") disclosed on October 21, 2020 the indicative announcement of Ningxia Zhongyin Cashmere Industry Co., Ltd. on the progress of litigation matters involving shareholders of the company and the compulsory enforcement of some shares held by shareholders of the company (Announcement No. 2020-76), and "Ningxia Zhongyin cashmere Co., Ltd. about 5% shareholding of the company" The pre disclosure announcement that part of the shares of the above shareholders will be auctioned and passively reduced (announcement 2020-77). Shenzhen Futian District People's Court (hereinafter referred to as "Futian court") publicly auctioned the Bank of China cashmere (Securities abbreviation) held by Ningxia Zhongyin cashmere International Group Co., Ltd. (hereinafter referred to as "Zhongrong group") on Taobao judicial auction network platform (ALI auction platform) of Shenzhen Futian District People's court from 10:00 on November 26, 2020 to 10:00 on November 27, 2020 (except for delay) : * ST Zhongrong, securities code: 000982, nature of shares: non tradable shares) 40 million shares.

According to the confirmation of successful online bidding published on taobao.com judicial auction network platform, Shanghai Jingxian Investment Co., Ltd. launched the "Ningxia Zhongyin cashmere Co., Ltd. (stock abbreviation: * ST Zhongrong, securities code: 000982) 40000, which was launched by Shanghai Jingxian Investment Co., Ltd. on November 27, 2020 in the Ali auction platform of Futian District People's Court of Shenzhen, In the public bidding of "000 shares", the highest bidding price was won. The online auction price of the target is? 45718000 (RMB 45718000). For details, please refer to the announcement of Ningxia Zhongyin Cashmere Industry Co., Ltd. on the passive reduction of some shares held by shareholders holding more than 5% of the company's shares and the progress of judicial auction (Announcement No. 2020-86) disclosed by the company on December 1, 2020.

I. the latest progress of this judicial auction

The company learned through the lawyer of Jiashi Capital Management Co., Ltd. that the bidder, Shanghai Jingxian Investment Co., Ltd., had paid the balance of the auction of the subject matter in full on December 11, according to the requirements of the bidding instructions and bidding announcement.

2、 Other instructions

(1) before the auction, Zhongrong group held 481496444 shares of the company, accounting for 11.2978% of the total share capital of the company. After the auction shares are finally transferred, the number of shares held by Zhongrong group will be reduced to 441496444 shares, accounting for 10.3592% of the total share capital of the company, all of which are under judicial freeze.

(2) the follow-up of the auction will involve the execution of legal procedures by the court, equity change and transfer, etc. the company will continue to pay attention to the follow-up progress of the auction in accordance with the relevant provisions of the Listing Rules of Shenzhen Stock Exchange and other relevant provisions, and timely perform the obligation of information disclosure according to the progress.

(3) the information disclosure media designated by the company are securities times, China Securities Journal, Shanghai Securities News, securities daily and www.cninfo.com.cn. The information of the company shall be subject to the contents disclosed by the above media. Please pay attention to the company's announcement and pay attention to the investment risk.

It is hereby announced.

Board of directors of Ningxia Zhongyin cashmere Co., Ltd

December 17, 2002