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新疆拉夏貝爾服飾股份有限公司 Xinjiang La Chapelle Fashion Co., Ltd

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新疆拉夏貝爾服飾股份有限公司 Xinjiang La Chapelle Fashion Co., Ltd 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 DISPUTES ON PROPERTY LEASE AGREEMENT INVOLVING THE COMPANY’S SUBSIDIARIES This announcement is made by Xinjiang La Chapelle Fashion Co., Ltd. (the “Company”) 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 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 17 June 2019, 15 October 2019, 7 November 2019 and 10 March 2020 (the “Announcements”) in relation to a dispute on a property lease agreement of Chengdu Lewei and Chengdu La Chapelle, both of which are wholly-owned subsidiaries of the Company. Unless where the context otherwise requires, capitalized terms used herein shall have the same meanings as those defined in the Announcements. A summary of the updated circumstance around the disputes is set out as below: State of litigation of the case: Applicant for the retrial (claimant at first instance and appellants at second instance) applied for retrial Relevance of the Company in the The wholly-owned subsidiaries of the Company, Chengdu Lewei litigation: and Chengdu La Chapelle, are the defendants of the retrial (defendants at first instance and appellants at second instance). 1 Retrial request: To withdraw the civil judgments of the (2019) Chuan 1321 Min Chu No. 2899 Civil Judgment ((2019)川1321民初2899號民事 判決) of The People’s Court of Nanbu County and the (2019) Chuan 13 Min Zhong No. 4533 Civil Judgment ((2019)川13 民終4533號民事判決) of the Intermediate People’s Court of Nanchong City, and request for ruling that Chengdu Lewei shall compensate the retrial applicant for various loss in the amount of RMB28,337,471, and Chengdu La Chapelle shall be jointly liable for the aforementioned compensation. All of the litigation costs for first and second instances and the litigation preservation fees shall be borne by the two respondents. As the applicant of the litigation has applied for a retrial at the Higher People’s Court of the Sichuan Province, the final results of the litigation is uncertain. Therefore, the impact of the litigation on the profit of the Company for the current financial period or after the period is unpredictable at this stage and is subject to the final judgment of the court and the results of the annual audit. The Company has engaged a team of professional legal counsels to respond to the retrial, and shall take proactive measures to protect the legal interests of the Company and to protect the interests of the Company and its shareholders as a whole. 1. BASIC INFORMATION OF THE LITIGATION As disclosed in the Announcements, Mei Hao Jia Yuan sued Chengdu Lewei and Chengdu La Chapelle for all the losses caused due to the entities’ leaving the shopping mall and early termination of the Lease Agreement, including a loss of rent of RMB1,345,560 and other losses of RMB25 million. As determined in the first instance judgment of The People’s Court of Sichuan Province Nanbu County, Chengdu Lewei shall pay compensation of RMB5.897 million and bear part of the case acceptance and litigation preservation fee (the “First Instance Judgment”). The Company is of the view that the First Instance Judgment lacked factual and legal basis in respect of the amount of compensation amount, and therefore appealed to the Nanchong Intermediate People’s Court of Sichuan Province. Mei Hao Jia Yuan also made an appeal. The Intermediate People’s Court of Sichuan Province Nanchong City handed down its second instance judgment in respect of the litigation as follows: 1. The second item of the (2019) Chuan 1321 Min Chu No. 2899 Civil Judgment ((2019)川1321民初2899號民事判決) of the People’s Court of Sichuan Province Nanbu County, being the other claims of the plaintiff, Mei Hao Jia Yuan, shall be dismissed, was upheld. 2. The first item of the (2019) Chuan 1321 Min Chu No. 2899 Civil Judgment of the People’s Court of Sichuan Province Nanbu County, was changed to: the appellant, Chengdu Lewei, shall compensate the appellant, Mei Hao Jia Yuan, for its economic loss of RMB7,897,043 within 10 days of the effective date of this judgment. The appellant, Chengdu La Chapelle, shall be jointly liable for the compensation (the performance deposit of RMB300,000 received from Chengdu Lewei that should be returned by the Mei Hao Jia Yuan can be offset at the time of enforcement). If the payment obligation is not fulfilled within the period specified in this judgment, the interest on the debt for the period of delay in performance shall be doubled in accordance with the provisions of Article 253 of the Civil Procedure Law of the 2 People’s Republic of China. The case acceptance fee for the first instance of RMB86,764 and the litigation preservation fee of RMB5,000, totaling RMB91,764, shall be borne by Mei Hao Jia Yuan, as to RMB34,698, and Chengdu Lewei, as to RMB57,066. The case acceptance fee for the second instance of RMB173,528, shall be borne by Mei Hao Jia Yuan, as to RMB69,411, and Chengdu Lewei and Chengdu La Chapelle jointly, as to RMB104,117. That judgment is the final judgment. 2. PROGRESS OF THE LITIGATION On 11 January 2021, the Company received the “Writ of Summons” (《傳票》) and “Notice of Appearance for Retrial Case” (2021) Chuan Min Zai No. 4 《再審案件應訴通知書》( (2021)川民再4 號) delivered from the Higher People’s Court of Sichuan Province (the “Sichuan Higher Court”). Cause of action: Dispute on property lease agreement Hearing date: 22 January 2021 As Mei Hao Jia Yuan is not satisfied with the judgment of the second instance, Mei Hao Jia Yuan applies for a retrial to Sichuan Higher Court, requesting to withdraw the civil judgments of the (2019) Chuan 1321 Min Chu No. 2899 Civil Judgment ((2019)川1321民初2899號民事判決) of the People’s Court of Nanbu County and the (2019) Chuan 13 Min Zhong No. 4533 Civil Judgment ((2019)川13民終4533號民事判決) of the Intermediate People’s Court of Nanchong City, and request for ruling that Chengdu Lewei shall compensate the retrial applicant for various loss in the amount of RMB28,337,471, and Chengdu La Chapelle shall be jointly liable for the aforementioned compensation. All of the litigation costs for first and second instances and the litigation preservation fees shall be borne by the two respondents. 3. IMPACT OF LITIGATION ON THE PROFITS OF THE COMPANY IN CURRENT OR SUBSEQUENT PERIODS As the applicant of the litigation has applied for a retrial at the Higher People’s Court of the Sichuan Province, the final results of the litigation is uncertain. Therefore, the impact of the litigation on the profit of the Company for the current financial period or after the period is unpredictable at this stage and is subject to the final judgment of the court and the results of the annual audit. The Company has engaged a team of professional legal counsels to respond to the retrial, and shall take proactive measures to protect the legal interests of the Company and to protect the interests of the Company and its shareholders as a whole. 3 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. Ms. Zhang Ying Chairman Shanghai, the People’s Republic of China 12 January 2021 As of the date of this announcement, the executive directors of the Company are Ms. Zhang Ying and Ms. Zhang Danling; the non-executive director of the Company is Mr. Yin Xinzai; the independent nonexecutive directors of the Company are Ms. Wong Sze Wing, Mr. Xing Jiangze, and Mr. Zhu Xiaozhe. 4.
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