Xinjiang La Chapelle Fashion : UPDATE ANNOUNCEMENT IN RELATION TO ASSET FREEZES AND ACCUMULATED LITIGATION INVOLVING THE COMPANY AND ITS SUBSIDIARIES

April 29, 2021 at 07:38 am EDT

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

新疆拉夏貝爾服飾股份有限公司

Xinjiang La Chapelle Fashion Co., Ltd.

(formerly known as "Shanghai La Chapelle Fashion Co., Ltd. （上海拉夏貝爾服飾股份有限公司）")

(a joint stock company incorporated in the People's Republic of China with limited liability)

(Stock code: 06116)

UPDATE ANNOUNCEMENT IN RELATION TO

ASSET FREEZES AND ACCUMULATED LITIGATION INVOLVING

THE COMPANY AND ITS SUBSIDIARIES

This announcement is made by Xinjiang La Chapelle Fashion Co., Ltd. (the "Company", together with its subsidiaries, the "Group") pursuant to Rule 13.09(2) and Rule 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules") and the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

Reference is made to the announcements of the Company dated 9 December 2020, 25 January 2021 and 5 March 2021 in relation to asset freezes and accumulated litigation involving the Group (the "Announcements").

PROGRESS OF ACCUMULATED LITIGATION
As at 28 April 2021, 133 cases of the accumulated litigation cases disclosed in the Announcements have been adjudicated, settled, or withdrawn. There are still 46 litigation cases in total that have not been adjudicated or settled, involving an aggregate amount of approximately RMB710 million (including material litigation cases that have been disclosed). The progress of the accumulated litigation is illustrated as follows:

	Withdrawn	Adjudicated			Settled			Total
			Aggregate			Aggregate				Aggregate				Aggregate
	No. of	amount	No. of	amount	No. of		amount	No. of		amount
Subject of the case	cases	involved	cases	involved	cases		involved	cases		involved
			(RMB'0000)			(RMB'0000)				(RMB'0000)				(RMB'0000)
Dispute over contracting agreement	3		134	3		1,285		4		303		10		1,722
Dispute over designated processing
agreement									1		42		1		42
Dispute over rental agreement					4		795		2		155		6		950
Dispute over service agreement					1		9		1		45		2		54
Contractual dispute	1		45		8		3,318		13		2,068		22		5,431
Dispute over processing agreement	2		359		6		2,241		19		7,780		27		10,380
Dispute over construction agreement					2		130		3		991		5		1,121
Dispute over loan agreement									3		20,091		3		20,091
Dispute over joint venture agreement									1		40		1		40
Dispute over sale and purchase
agreement	3		1,590		6		10,004		27		4,529		36		16,123
Dispute over the right of recourse for
bills	6		345		7		116							13		461
Dispute over property management
agreement									1		34		1		34
Dispute over transportation
agreement					3		386							3		386
Dispute over intellectual property
rights and infringement									2		22		2		22
Dispute over renovation agreement					1		114							1		114

Total	15		2,473	41		18,398		77		36,100		133		56,971

For details, please refer to appendix 1 to the overseas regulatory announcement of the Company dated 28 April 2021.

FREEZING OF BANK ACCOUNTS
As a result of the Group's involvement in litigation and arbitration cases, some of the Group's bank accounts have been frozen. As at 28 April 2021, an aggregate of 106 bank accounts of the Group have been frozen, involving an aggregate frozen amount of approximately RMB166 million. The details are as follows:

	Number of
Type of account	frozen accounts		Frozen amount
			(RMB)
General account	93	142,545,674.16
Basic account (including those of the Company's subsidiaries)	10	23,813,905.58
Loan account	2	6,834.72
Fund-raising specialised account	1	2,400.91

Total	106	166,368,815.37

These bank accounts have been frozen as a result of steps taken by the plaintiffs to preserve assets for the purpose of enforcement, and there exists the possibility that compulsory transfer will be ordered by the relevant courts. The Company is proactively communicating with the relevant courts and plaintiffs so that the bank accounts can be unfrozen as soon as possible.

For details, please refer to appendix 2 to the overseas regulatory announcement of the Company dated 28 April 2021.

FREEZING OF THE COMPANY'S EQUITY INTEREST IN ITS SUBSIDIARIES
As at 28 April 2021, as a result of the Group's involvement in litigation cases, the Company's equity interest in 16 of its subsidiaries have been frozen, involving an aggregate frozen amount of approximately RMB536 million.
The freezing of the Company's equity interest mentioned above has not affected the normal operation and production of the Company and the relevant subsidiaries. However, there is a risk that the equity interest may be judicially disposed of. The Company will proactively communicate with the relevant courts and creditors in order to properly resolve the freezing of the equity interest and maintain the stability of the Company's business.
For details, please refer to appendix 3 to the overseas regulatory announcement of the Company dated 28 April 2021.

IV. SEIZURE OF REAL ESTATE

As at 28 April 2021, as a result of the Company's involvement in a total of 21 litigation cases arising from such disputes as disputes over loan agreements and construction agreements, 4 real properties of the Company (with an aggregate book value of approximately RMB1.74 billion as at

31 March 2021) have been seized. The details are as follows:

			Execution/
			preservation		Seized real		Book value as at
		Reason for	amount	Restriction	estate title	Location of	31 March 2021
No.	Relevant case no.	restrictions	(RMB0'000)	method	certificate no.	the real estate	(RMB0'000)	Party of restriction

	(2020) Hu 01 Min Cu	Dispute over						Shanghai No.1
						Intermediate People's
1	No.175* ((2020)滬01	construction	17,395	Seizure
			Court* (上海市第一
	民初175號)	agreement
						中級人民法院)


	(2020) Hu 01 Min Chu	Dispute over						Shanghai No.1
	approximately	Alternate				Intermediate People's
2	No. 251* ((2020)滬01	guarantee
EUR41 million	seizure				Court* (上海市第一
	民初251號)	agreement
						中級人民法院)


	(2020) Hu 0104 Min	Dispute over						People's Court of
	Chu No. 30478*		Alternate				Xuhui District,
3	financial	4,049
((2020)滬0104民初	seizure				Shanghai* (上海市徐
	30478號)	borrowing						匯區人民法院)


	(2020) Hu 74 Min Chu	Dispute over		Alternate				Shanghai Financial
4	No. 3705* ((2020)滬	financial	7,107				Court* (上海金融法
	74民初3705號)	borrowing		seizure	Hu (2020) Min			院)

	(2020) Hu 74 Min Chu	Dispute over			Real Estate			Shanghai Financial
	financial		Alternate	Right No.
5	No. 3706* ((2020)滬	borrowing	8,935	seizure	023353* (滬	No. 58,	96,868	Court* (上海金融法
	74民初3706號)	agreement			(2020)閔字不動	Tanzhu Road		院)
					產權第023353
	(2020) Hu 0115	Dispute over					People's Court of
	Min Chu No. 9884*		Alternate	號)			Pudong New District,
6	borrowing	2,312
((2020)滬0115民初	seizure				Shanghai* (上海市浦
	9884號)	agreement						東新區人民法院)


	(2021) Hu 0115	Dispute over						People's Court of
	Min Chu No. 9889*		Alternate				Pudong New District,
7	borrowing	2,864
((2021)滬0115民初	seizure				Shanghai* (上海市浦
	9889號)	agreement						東新區人民法院)


	(2021) Hu 0115	Dispute over						People's Court of
	Min Chu No. 9890*		Alternate				Pudong New District,
8	borrowing	3,566
((2021)滬0115民初	seizure				Shanghai* (上海市浦
	9890號)	agreement						東新區人民法院)


	(2020) Hu 0104 Zhi	Dispute over						People's Court of
	sales and		Alternate				Xuhui District,
9	No. 4404* ((2020)滬	58
purchase	seizure				Shanghai* (上海市徐
	0104執4404號)	agreement						匯區人民法院)

			Execution/
			preservation		Seized real		Book value as at
		Reason for	amount	Restriction	estate title	Location of	31 March 2021
No.	Relevant case no.	restrictions	(RMB0'000)	method	certificate no.	the real estate	(RMB0'000)	Party of restriction

	(2020) Su 0585	Dispute over						People's Court of
	Min Chu No. 6346*		Alternate
10	construction	115				Taicang City* (太倉
	((2020)蘇0585民初	agreement		seizure				市人民法院)
	6346號)
	(2020) Su 0585	Dispute over						People's Court of
	Min Chu No. 6347*		Alternate
11	construction	27				Taicang City* (太倉
	((2020)蘇0585民初	agreement		seizure				市人民法院)
	6347號)
	(2020) Xiang 0104							People's Court of
12	Cai Bao No.635*	re-litigation	140	Alternate				Yuelu District, Chang
((2020)湘0104財保	preservation	seizure				Sha* (長沙市岳麓區
	635號)				Su (2018)			人民法院)
	(2020) Xin 01 Zhi Bao	Pre-litigation		Alternate	Taicang City			Urumqi Intermediate
13	No.167* ((2020)新01	58,653	Real Estates			People's Court* (烏魯
	執保167號)	preservation		seizure	Right No.			木齊市中級人民法院)

	(2021) Hu 0115 Min	Dispute over			0029259* (蘇			People's Court of
		Alternate	(2018)太倉市不			Pudong New District,
14	Chu No.9884* ((2021)	borrowing	2,312
seizure	動產權第029259	No. 116,		Shanghai* (上海市浦
	滬0115民初9884號)	agreement			號)	Guangzhou		東新區人民法院)
					36,715
	(2021) Hu 0115 Min	Dispute over				East Road,	People's Court of

		Alternate		Taicang City		Pudong New District,
15	Chu No.9889* ((2021)	borrowing	2,864
seizure				Shanghai* (上海市浦
	滬0115民初9889號)	agreement						東新區人民法院)


	(2021) Hu 0115 Min	Dispute over						People's Court of
		Alternate				Pudong New District,
16	Chu No.9890* ((2021)	borrowing	3,566
seizure				Shanghai* (上海市浦
	滬0115民初9890號)	agreement						東新區人民法院)


	(2021) Su 0585 Min	Dispute over		Alternate				People's Court of
17	Chu No.659* ((2021)	construction	75				Taicang City* (太倉
	蘇0585民初659號)	agreement		seizure				市人民法院)


					Su (2019)
					Taicang City
	(2020) Xin 01 Zhi Bao				Real Estates			Urumqi Intermediate
	Pre-litigation		Alternate	Right No.
18	No.167* ((2020)新01	preservation	58,653	seizure	006322* (蘇			People's Court* (烏魯
	執保167號)				2019)太倉市不			木齊市中級人民法院)

					動產權第006322
					號)

			Execution/
			preservation		Seized real		Book value as at
		Reason for	amount	Restriction	estate title	Location of	31 March 2021
No.	Relevant case no.	restrictions	(RMB0'000)	method	certificate no.	the real estate	(RMB0'000)	Party of restriction

	(2020) Chuan 0115							People's Court of
19	Zhi Bao No.313*	Pre-litigation	312	Seizure				Wenjiang District,
((2020)川0115執保	preservation				Chengdu* (成都溫江

	313號)							區人民法院)

	(2020) Chuan 0115							People's Court of
20	Zhi Bao No.314*	Pre-litigation	544	Seizure				Wenjiang District,
((2020)川0115執保	preservation				Chengdu* (成都溫江

	314號)							區人民法院)

	(2020) Hu 74 Min Chu	Pre-litigation				Chengdu,		Shanghai Financial
21	No.3705* (2020)滬74	Same as no.4#	Seizure		Sichuan		Court* (上海金融法
	民初3705號	preservation				Province		院)
				Wen Guo
	(2020) Hu 74 Min Chu				Groups 2		Shanghai Financial
	Pre-litigation			Yong (2015) Zi
22	No.3706* ((2020)滬74	Same as no.5#	Seizure	and 3 of		Court* (上海金融法
	民初3706號)	preservation			No.68859* (溫	Guangming	11,370	院)
					國用(2015)字第	Community,
						People's Court of
	(2021) Hu 0115 Min				66859號)
	Pre-litigation			Jinma Town,		Pudong New District,
23	Chu No.9884* ((2021)	Same as no.6#	Seizure
	Wenjiang
	滬0115民初9884號)	preservation					Shanghai* (上海市浦
				District
							東新區人民法院)
	(2021) Hu 0115 Min							People's Court of
	Pre-litigation						Pudong New District,
24	Chu No.9889* (2021)	Same as no.7#	Seizure
	滬0115民初9889號	preservation						Shanghai* (上海市浦
								東新區人民法院)
	(2021) Hu 0115 Min							People's Court of
	Pre-litigation						Pudong New District,
25	Chu No.9890* ((2021)	Same as no.8#	Seizure
	滬0115民初9890號)	preservation						Shanghai* (上海市浦
								東新區人民法院)

			Execution/
			preservation		Seized real		Book value as at
		Reason for	amount	Restriction	estate title	Location of	31 March 2021
No.	Relevant case no.	restrictions	(RMB0'000)	method	certificate no.	the real estate	(RMB0'000)	Party of restriction

	(2020) Hu 0104							People's Court of
26	Min Chu No.30478*	Pre-litigation	4,049	Seizure				Xuhui District,
((2020)滬0104民初	preservation				Shanghai* (上海市徐

	30478號)							匯區人民法院)

	(2020) Hu 74 Min Chu	Pre-litigation		Alternate				Shanghai Financial
27	No.3705* ((2020)滬74	Same as no.17#				Court* (上海金融法
	民初3705號)	preservation		seizure				院)


	(2020) Hu 74 Min Chu	Pre-litigation		Alternate	Jin (2018)	No. 24,		Shanghai Financial
28	No.3706* ((2020)滬74	Same as no.5#	Xiqing District		Court* (上海金融法
	民初3706號)	preservation		seizure	Real Estates	Xinghua		院)
				West Branch
					Right No.		People's Court of
	(2021) Hu 0115Min				Road, Dasi	29,153
	Pre-litigation		Alternate	1016982* (津	Pudong New District,
29	Chu No.9884* ((2021)	preservation	Same as no.6#	seizure	(2018)西青區	Town, Xiqing		Shanghai* (上海市浦
	滬0115民初9884號)				不動產權第	District,		東新區人民法院)
					Tianjin
					1016982號)
	(2021) Hu 0115 Min					People's Court of

	Pre-litigation		Alternate				Pudong New District,
30	Chu No.9889* ((2021)	Same as no.7#
	滬0115民初9889號)	preservation		seizure				Shanghai* (上海市浦
								東新區人民法院)
	(2021) Hu 0115 Min							People's Court of
	Pre-litigation		Alternate				Pudong New District,
31	Chu No.9890* ((2021)	Same as no.8#
	滬0115民初9890號)	preservation		seizure				Shanghai* (上海市浦
								東新區人民法院)
Total book value (RMB0'000)						174,106

The above seizures entail rights restrictions, and there is a risk that they may be judicially auctioned to repay debts. The Company will proactively coordinate with the relevant parties, properly handle the seizures, and actively negotiate with the applicants for such seizures so that the rights restrictions can be lifted and the real properties involved can return to normal conditions as soon as possible.

RELEVANT RISK WARNINGS
1. The accumulated litigation and asset freezes will affect the cash flow and the business operation of the Company. Before the accumulated litigation and the asset freezes are resolved, it cannot be guaranteed that subsequent or other asset freezes of the Company may not occur. The high cumulative amounts claimed in litigations involving the Company may result in a decrease in the Company's ability to raise capital and may exacerbate the Company's financial strain. In addition, the Company and its subsidiaries may be required to pay penalties, as well as litigation expenses, which could result in an increase in the financial and administrative expenses of the Company. The final affected amounts will be subject to the respective judgments of the courts as well as the annual audited financial results of the Company.

2. The Company will continue to proactively communicate with the relevant courts, creditors and banks, and strive to reach an agreement on litigation matters and debt settlement as soon as possible, including but not limited to the consideration of mechanisms such as debt restructuring, extension of repayment, and settlement. At the same time, the Company will continue to promote the disposal of assets and seek external financing to service debts and to enhance the Company's operating abilities. The Company will also pay close attention to the progress of the accumulated litigation, proactively take legal measures to safeguard the legitimate interests of the Company and its shareholders, and promptly perform its information disclosure obligations in accordance with the relevant laws and regulations.

Shareholders and potential investors of the Company should exercise caution when dealing in the securities of the Company.

By Order of the Board

Xinjiang La Chapelle Fashion Co., Ltd.

Mr. Wu Jinying

Chairman

Shanghai, the People's Republic of China

29 April 2021

As of the date of this announcement, the executive directors of the Company are Mr. Wu Jinying, Ms. Zhang Ying and Ms. Zhang Danling; the non-executive director of the Company is Mr. Yin Xinzai; the independent non-executive directors of the Company are Mr. Xing Jiangze, Ms. Wong Sze Wing and Mr. Zhu Xiaozhe.

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Shanghai La Chapelle Fashion Co. Ltd. published this content on 29 April 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 April 2021 11:37:05 UTC.

Market Closed - Hong Kong S.E. Other stock markets 03:08:14 2023-02-06 am EST			5-day change	1st Jan Change
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Apr. 09	Xinjiang La Chapelle Fashion Begins Bankruptcy Reorganization Procedure	MT
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Xinjiang La Chapelle Fashion Begins Bankruptcy Reorganization Procedure	Apr. 09	MT
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La Chapelle Fashion Settles One of 13 Lawsuits	Jan. 03	MT
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Shanghai Bourse to Delist La Chapelle Fashion May 17	22-05-10	MT
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Xinjiang La Chapelle Fashion Co., Ltd.

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