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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 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, 10 March 2020, 12 January 2021 and 18 March 2021 (the “Announcements”) in relation to a dispute on a property lease agreement of Lewei and Chengdu La Chapelle, both of which are wholly-owned subsidiaries of the Company. Unless the context otherwise requires, capitalized terms used herein shall have the same meanings as those defined in the Announcements.

An update of the circumstances surrounding the dispute is summarised below:

State of litigation of the case: The Company received a writ of summons (the “Writ”) from the People’s Court of Nanbu County of Province.

Case number: (2021) Chuan 1321 Min Chu No. 3438* ((2021)川1321民初3438 號).

Subject of the case: Dispute over a rental agreement.

Persons summonsed: Chengdu Lewei and Chengdu La Chapelle.

1 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.

Reason for the Writ: Commencement of hearing.

Time and date of hearing: 9 a.m. on 29 June 2021.

Place of hearing: Court No. 8 of the People’s Court of Nanbu County of Sichuan Province.

As the retrial has not yet been heard, the final results of the litigation are 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 results of the retrial and the results of the annual audit. The Company has engaged a team of professional legal counsel 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.

I. 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 their leaving the shopping mall and early termination of the Lease Agreement, including a loss of rent of RMB1.3456 million and penalty, and other losses of RMB25 million. As determined in the First Instance Judgment, Chengdu Lewei shall pay compensation of RMB5.897 million and bear part of the case acceptance and litigation preservation fee. The Company was of the view that the First Instance Judgment lacked factual and legal basis in respect of the amount of compensation, and therefore appealed to the Intermediate People’s Court of City of Sichuan Province. Mei Hao Jia Yuan also made an appeal.

The Intermediate People’s Court Nanchong City of Sichuan Province handed down its Second Instance Judgment as follows: 1. The second item of the First Instance Judgment be upheld, i.e. the other claims of Mei Hao Jia Yuan be dismissed. 2. The first item of the First Instance Judgment be varied, such that Chengdu Lewei shall compensate Mei Hao Jia Yuan for its financial loss of RMB7,897,043 within 10 days of the effective date of the judgment. Chengdu La Chapelle shall be jointly liable for the compensation (the performance deposit of RMB300,000 received from Chengdu Lewei, which should be returned by Mei Hao Jia Yuan, can be offset at the time of enforcement). If the payment obligation is not fulfilled within the period specified in the judgment, the interest on the debt for the period of delay in performance shall be doubled pursuant to Article 253 of the Civil Procedure Law of the People’s Republic of China. The case acceptance fee for the first instance trial of RMB86,764 and the litigation preservation fee of RMB5,000, totalling 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 trial 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. As Mei Hao Jia Yuan was dissatisfied with the Second Instance Judgment, it applied for a retrial to the Higher People’s Court of Sichuan Province.

2 On 17 March 2021, the Higher People’s Court of Sichuan Province handed down the (2021) Chuan Min Zai No. 4 Civil Judgment* ((2021)川民再4號《民事裁定書》), holding that: 1. the Second Instance Judgment and the First Instance Judgment be withdrawn; 2. the case be remitted to the People’s Court of Nanbu County of Sichuan Province for retrial.

II. PROGRESS OF THE LITIGATION

On 27 May 2021, the Company received the Writ from the People’s Court of Nanbu County of Sichuan Province, details of which are as follows:

Case number: (2021) Chuan 1321 Min Chu No. 3438* ((2021) 川1321民初3438 號).

Subject of the case: Dispute over a rental agreement.

Persons summonsed: Chengdu Lewei and Chengdu La Chapelle.

Address of the persons of Chengdu Province. summonsed:

Reason for the Writ: Commencement of hearing.

Time and date of hearing: 9 a.m. on 29 June 2021.

Place of hearing: Court No. 8 of the People’s Court of Nanbu County of Sichuan Province.

3 III. IMPACT OF LITIGATION ON THE PROFITS OF THE COMPANY IN CURRENT OR SUBSEQUENT PERIODS

As the retrial has not yet been heard, 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 results of the retrial and the results of the annual audit. The Company has engaged a team of professional legal counsel 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.

Shareholders and potential investors of the Company are advised to 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 27 May 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 independent non-executive directors of the Company are Mr. Xing Jiangze, Ms. Wong Sze Wing and Mr. Zhu Xiaozhe.

* For identification purposes only

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