*ST Kerry (002072): Supplementary Announcement On Subsidiary Related Transaction Matters (Two) Progress

Kerid Cmi Holdings Ltd supplementary announcement on subsidiary related transaction matters (two) progress

All members of the company and the board of directors guarantee that the contents of the information disclosure are true, accurate and complete, without false records, misleading statements or major omissions.

Overview of related party transactions

In December 19, 2019, Kai Reed Cmi Holdings Ltd (hereinafter referred to as "company" or "Kai Reed"), the company's wholly owned subsidiary, Dezhou Jinmian Textile Co., Ltd. signed a contract with Mr. Zhang Peifeng, a shareholder of the company. The contract was held at the eighteenth meeting of the seventh board of directors of the company in December 19, 2019, and the company 2019 December 31, 2019. The third provisional shareholders' meeting has already entered into force after deliberation and approval. According to the contract, Mr. Zhang Peifeng, the shareholder of the company, should pay 249508699 yuan to the company. The company has recently received 25 million yuan from the first phase of the payment of Baocheng Dingsheng International Trading (Beijing) Co., Ltd., Mr. Wang Jian, Mr. Wang, and the 3% share held by the company, which is paid by Mr. Zhang Peifeng. The content is detailed in the company's announcement of the progress announcement on the subsidiary related transactions (two) in March 26, 2020. No.: 2020-L016).

Two, transaction progress

In March 26, 2020, the company received the remaining 2 million 720 thousand yuan in the first installment paid by Mr. Bao Sheng Dingsheng international trade (Beijing) Co., Ltd. (Mr. Wang Jian, director of the Department of the company, Mr. Wang Xuanzhe's actual control, holding 3% of the company) on behalf of Mr. Zhang Peifeng, that is, Zhang Peifeng has paid the first installment of RMB 27 million 720 thousand yuan in accordance with the contents stipulated in the contract.

Three, risk warning

According to the above contract, Mr. Zhang Peifeng, shareholder, should pay 249508699 yuan to the company. Up to now, the company has received the first installment of 27 million 720 thousand yuan. Mr. Zhang Peifeng should pay the remaining amount of 221788699 yuan to the company in 9 phases before March 15, 2022. The company will actively urge Mr. Zhang Peifeng to fulfill his subsequent repayment obligations under the agreement. Mr. Zhang Peifeng, a trader of related transactions, is currently detained in the detention center of Jinhua, Zhejiang Province, and has been listed as a restricted high consumer because of 21 cases involving company litigation. Since 2 of the cases involved are involved in the execution of the case, the case is being executed, and whether there will be any subsequent repayment according to the contract and whether it has the ability to perform is still uncertain. Investors should pay attention to investment risk.

Four. Reference documents

1. Relevant documents required by the Shenzhen Stock Exchange

Notice hereby

Kerid Cmi Holdings Ltd board of directors

March 26, 2020