Xinjiang La Chapelle Fashion : FIRST QUARTERLY REPORT FOR THE THREE MONTHS ENDED 31 MARCH 2021

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)

FIRST QUARTERLY REPORT

FOR THE THREE MONTHS ENDED 31 MARCH 2021

Pursuant to the regulations of the China Securities Regulatory Commission, Xinjiang La Chapelle Fashion Co., Ltd. (the "Company", together with its subsidiaries, collectively referred to as the "Group") is required to publish a quarterly report for each of the first and third quarters.

All financial information set out in this quarterly report is unaudited and prepared in accordance with the revised Chinese Accounting Standards for Business Enterprises.

The Audit Committee of the Company has reviewed the unaudited results of the Group for the three months ended 31 March 2021 (the "Reporting Period").

This announcement is made by the Company pursuant to Rule 13.09 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, Laws of Hong Kong).

1. IMPORTANT NOTICE
2. 1. The board of directors (the "Board"), the supervisory committee, directors, supervisors and senior management of the Company warrant that the information contained in this quarterly report is true, accurate and complete, and there are no false statements, misleading representations or material omissions, and are jointly and severally responsible for the liabilities of the Company.
   2. All directors of the Company have attended the board meeting to approve this quarterly report.

1

1. Mr. Wu Jinying (the legal representative of the Company), Mr. Hu Zhiguo (the person-in- charge of accounting affairs and person-in-charge of the accounting department) warrant the truthfulness, accuracy and completeness of the financial statements contained in this quarterly report.
2. The first quarterly report of the Company is unaudited.

2. GENERAL INFORMATION

1. Key financials

			Unit: RMB'000
			Increase/
			decrease
	As at	As at	compared to
	31 March	31 December	end of
Items	2021	2020	last year (%)
Total assets	3,380,455	3,581,715	5.62%
Equity attributable to owners of the Company	-679,438	-609,277	Not Applicable
			Increase/
			decrease
	For the	For the	compared
	3 months	3 months	to the
	ended	ended	corresponding
	31 March	31 March	period of
	2021	2020	last year %
Net cash used/from operating activities	25,347	20,016	26.63%

2

			Increase/
			decrease
	For the	For the	compared
	3 months	3 months	to the
	ended	ended	corresponding
	31 March	31 March	period of
	2020	2020	last year %
Revenue	157,775	957,800	83.53%
Net profit attributable to equity owners
of the Company	-70,161	-423,146	Not Applicable
Net profit attributable to equity owners of the
Company excluding non-recurring items	-85,762	-420,185	Not Applicable
Weighted average return on equity (%)	Not Applicable	Not Applicable	Not Applicable
Basic earnings per share (RMB)	-0.13	-0.77	Not Applicable
Diluted earnings per share (RMB)	-0.13	-0.77	Not Applicable

3

Non-recurring item
✓Applicable □Not Applicable
			Unit: RMB'000
		From
		January 2021
Items	to March 2021 Explanation
Gains or losses on disposal of non-current assets	2,565
Government grants recorded as current gains or
losses income, except for government grants
that are closely related to the Company's
businesses or given at a fixed quota or amount
in accordance with government policies	128
Gains or losses on debt restructuring	20,854
Investment income arising from gain or loss
resulted from changes in fair value of financial
assets held for trading, derivative financial
assets, financial liabilities held for trading and
derivative financial liabilities; and disposal
of financial assets held for trading, derivative
financial assets, financial liabilities held for
trading, derivative financial liabilities and other
debt investments, except those arising from
the effective hedging business related to the
Company's normal operation
Other non-operating income and expenses other
than the above	78
Investment losses arising from subsidiaries
Gains on disposal of subsidiaries
Losses on disposal of associates	-2,818
Effects of minority interests (after-tax)	-455
Effects of income tax	-5,206
Total	15,146

4

2.2 Total number of shareholders, the shareholding of top ten shareholders and top ten tradable shareholders (or unrestricted shareholders) as at the end of the Reporting Period

						Unit: share
Total number of shareholders						12,961
	Shareholding of top ten shareholders Shareholding
	Shareholding
	as at the	Percentage	Restricted	Pledged or locked-up	Nature of
Name of shareholders (in full)	period end	(%)	shareholding	Status	Number	shareholders
Xing Jiaxing (邢加興)	80,274,425	14.66	80,274,425	Frozen	80,274,425	Domestic natural
						person
Shanghai Hexia Investment	45,204,390	8.25	45,204,390	Frozen	45,204,390	Domestic non-state
Co., Ltd.						owned
(上海合夏投資有限公司)
Shanghai Qijin Enterprise	40,000,000	7.30	40,000,000	Unknown	0	Domestic non-state
Management Partnership LLP						owned
(上海其錦企業管理合夥企業
（有限合夥）)
Shanghai Wensheng Asset	21,600,000	3.94	21,600,000	Unknown	0	Domestic non-state
Management Co., Ltd.						owned
(上海文盛資產管理股份
有限公司)
Chen Lin (陳林)	7,073,726	1.29	0	Unknown	0	Domestic natural
						person
Beijing Broad Street Investment	6,303,010	1.15	0	Unknown	0	Domestic non-state
Centre (Limited Partnership)						owned
(北京寬街博華投資中心
（有限合夥）)
Securities account designated for	3,573,200	0.65	0	Unknown	0	Domestic non-state
share repurchase of Shanghai						owned
La Chapelle Fashion Co., Ltd.
(上海拉夏貝爾服飾股份有限
公司回購專用證券賬戶)
Chen Jianliang (陳建亮)	3,100,000	0.57	0	Unknown	0	Domestic natural
						person
Bai Dengfang (白登芳)	2,136,200	0.39	0	Unknown	0	Domestic natural
						person
Wang Chengbing (王成兵)	2,100,000	0.38	0	Unknown	0	Domestic natural
						person

5

	Shareholdings of top ten unrestricted shareholders
	Number of
	unrestricted
	tradable	Class of shares and number
Name of shareholders	shares held	Class	Number

Chen Lin (陳林)

Beijing Broad Street Investment Centre

(Limited Partnership)

(北京寬街博華投資中心（有限合夥）) Securities account designated for share

repurchase of Shanghai La Chapelle Fashion Co., Ltd. (上海拉夏貝爾服飾 股份有限公司回購專用證券賬戶)

Chen Jianliang (陳建亮)

Bai Dengfang (白登芳) Wang Chengbing (王成兵) Ding Junyong (丁俊勇)

Guo Xuedong (郭學東) Liu Wei (劉煒)

Liu Yong (劉勇)

Details relating to the related relationship of the above shareholders or the parties acting in concert

Explanatory statement regarding the restored voting rights and shareholdings of holders of preference shares

7,073,726	RMB common stock	7,073,726
6,303,010	RMB common stock	6,303,010

3,573,200	RMB common stock	3,573,200
3,100,000	RMB common stock	3,100,000
2,136,200	RMB common stock	2,136,200
2,100,000	RMB common stock	2,100,000
1,817,700	RMB common stock	1,817,700
1,554,700	RMB common stock	1,554,700
1,452,900	RMB common stock	1,452,900
1,342,200	RMB common stock	1,342,200

1. Mr. Xing Jiaxing was then the controlling shareholder and de facto controller of the Company; Shanghai Hexia Investment Co., Ltd. is the concert party of Mr. Xing Jiaxing. As at the end of the Reporting Period, Mr. Xing Jiaxing directly and indirectly through Shanghai Hexia controlled a total number of 125,478,815 shares of the Company, representing 22.91% of the total issued share capital of the Company (547,671,642 shares, being 332,881,842 A Shares and 214,789,800 H Shares).
2. As at the end of the Reporting Period, Shanghai Qijin Enterprise Management Partnership LLP and its concert party, Shanghai Wensheng Asset Management Co., Ltd., collectively held 61,600,000 shares, representing 11.25% of the total issued share capital of the Company.
3. The Company is not aware of any related relationship among the top ten unrestricted shareholders and the top ten shareholders or any parties being regarded as parties acting in concert under the Measures for the Administration of Disclosure of Shareholder Equity Changes of Listed Companies.

Not Applicable

6

1. Total number of and top ten holders of preference shares and their unrestricted shareholdings as at the end of the Reporting Period
   □Applicable ✓Not Applicable

3. SIGNIFICANT EVENTS

1. Significant changes in major financial statements items and financial indicators and the reasons thereof
   ✓Applicable □Not Applicable

3.1.1 Analysis on Consolidated Balance Sheet Items

				Unit: RMB'000
	As at	As at
	31 March	31 December	Increase/
Items	2021	2020	decrease	Reason for changes
存貨	279,736	438,716	-36.24%	Mainly due to the increased liquidation
				of products from previous seasons
				and the non-acquisition of new
				goods during the Reporting Period
一年內到期的	0	25,844	-100.0%	Mainly due to the recovery of the
非流動資產				eclipse of the equity interest during
				the Reporting Period
使用權資產	21,549	47,846	-54.96%	Mainly due to the clearance of
				inefficient shops during the Reporting
				Period
長期待攤費用	6,753	22,984	-70.62%	Mainly due to the clearance of
				inefficient shops during the Reporting
				Period
預收款項	796	1,428	-44.26%	Mainly due to the decrease in rentals
				received in advance during the
				Reporting Period
合同負債	22,967	7,330	213.33%	Mainly due to the addition of a new
				brand licensing model during the
				Reporting Period
租賃負債	14,710	36,263	-59.44%	Mainly due to the clearance of
				i n e f f i c i e n t s h o p s d u r i n g t h e
				Reporting Period
其他非流動	4,251	8,150	-47.84%	Mainly due to the clearance of
負債				i n e f f i c i e n t s h o p s d u r i n g t h e
				Reporting Period

7

3.1.2 Analysis on Consolidated Income Statement Items
				Unit: RMB'000
	For the	For the
	3 months	3 months
	ended 31	ended 31	Increase/
Items	March 2020	March 2020	decrease	Reason for changes
營業收入	157,775	957,800	-83.53%	Mainly due to the decrease in revenue as
				a result of the impact of the epidemic
				and the decrease in the number of shops
				of the Company as compared to the
				corresponding period last year
營業成本	-65,835	-487,700	Not Applicable	Mainly due to the decrease in revenue for
				the period
稅金及附加	-2,445	-5,985	Not Applicable	Mainly due to the decrease in revenue for
				the period
銷售費用	-105,919	-597,000	Not Applicable	Mainly due to the significant closure of
				loss-making and inefficient shops last
				year and the decrease in fixed selling
				expenses during the period
管理費用	-36,533	-172,914	Not Applicable	Mainly due to reduction in management
				staff expenses
財務費用	-13,465	-55,673	Not Applicable	Mainly due to the year-on-year decrease
				in the balance of borrowings during
				the period and the impact of the
				implementation of the new leasing
				standards
其他收益	18,619	4,822	286.13%	Mainly due to the debt restructuring during
				the period
投資收益	-560	-48,961	Not Applicable	Mainly due to the loss on disposal of Jack
				Walker in the corresponding period last
				year
信用減值損失	-782	-88,891	Not Applicable	Mainly due to impairment on investments
				and debentures of Lacha Fashion I in the
				corresponding period last year
資產處置收益	2,565	6,033	-57.48% Mainly due to the decrease in the gain
				recognised on disposal of assets as a
				result of the closure of loss-making and
				inefficient shops during the period
營業利潤	-68,230	-505,792	-87.0% Mainly due to the decrease in sales during
				the period as a result of the epidemic
利潤總額	-68,152	-506,354	-87.0% Mainly due to the decrease in operating
				loss during the period

8

	For the	For the
	3 months	3 months
	ended 31	ended 31	Increase/
Items	March 2020	March 2020	decrease	Reason for changes
所得稅費用		77,583	100.0%	Mainly due to the decrease in deferred
				income tax recognised during the period
				to cover losses
淨利潤	-68,152	-428,771	Not Applicable	Mainly due to the decrease in total loss for
				the period
歸屬於母公司股	-70,161	-423,146	Not Applicable	Mainly due to the decrease in net loss for
東的淨利潤				the period
少數股東損益	2,009	-5,625	Not Applicable	Mainly due to the operating profit of a
				non-wholly owned subsidiary during the
				period
綜合收益總額	-68,152	-420,773	Not Applicable	Mainly due to the decrease in net loss for
				the period
歸屬於母公司所	-70,161	-415,149	Not Applicable	Mainly due to the decrease in net loss
有者的綜合收				attributable to the parent company
益總額				during the period
歸屬於少數股東	2,009	-5,624	Not Applicable	Mainly due to the operating profit of a
的綜合收益總				non-wholly owned subsidiary during the
額				period

9

3.1.3 Analysis on Consolidated Cash Flow Statement Items
				Unit: RMB'000
	For the	For the
	3 months	3 months
	ended 31	ended 31	Increase/
Items	March 2020	March 2020	decrease	Reason for changes
Net cash flows	25,347	20,016	26.63%	Mainly due to the increase in cash received
from/(used				from the sales of goods and provision of
in) operating				labour during the period as compared to
activities				the corresponding period last year as a
				result of the slowdown in the impact of
				the epidemic this year
Net cash flows	-2,125	-68,991	Not Applicable	Mainly due to the decrease in expenditure
used in				on the acquisition of long-term assets
investing				during the period
activities
Net cash flows	-15,243	-49,120	Not Applicable	Mainly due to decrease in repayment
(used)/from				of principal and interest expenses on
financing				borrowings due during the period and
activities				decrease in rental payments as a result
				of shop closures

10

3.2 Analysis of description of significant events and their impact and solution

✓Applicable □Not Applicable

1. The progress of the auction of the A shares of the Company and the change in shareholding

Since Mr. Xing Jiaxing ("Mr. Xing"), the former controlling shareholder and the former de facto controller of the Company, and his concert party, Shanghai Hexia Investment Co., Ltd. ("Shanghai Hexia") did not perform certain obligations under the Notarised Documents of Creditor's Rights arising from share pledge repurchase transactions, the Shanghai Financial Court* (上海金融法院) (the "Shanghai Financial Court") auctioned the 141,600,000 A shares of the Company (the "A Shares") held by Mr. Xing and the

45,200,000 A Shares held by Shanghai Hexia. As at the date of this announcement, Shanghai Wensheng Asset Management Co., Ltd.* (上海文盛資產管理股份有限公司)

("Shanghai Wensheng") and its concert party, Shanghai Qijin Enterprise Management Partnership LLP* (上海其錦企業管理合夥企業（有限合夥）) ("Shanghai Qijin") together

bid 106,800,000 A Shares of the abovementioned A Shares, 45,200,000 of which are still subject to the completion of share transfer through registration. The 106,800,000 A Shares represent 19.50% of the total issued share capital of the Company. Therefore, Shanghai Wensheng and Shanghai Qijin have become the Company's largest substantial shareholder. Haitong Securities Asset Management No. 1 FOF Single Asset Management Plan, which

belongs to the Series Supporting Private Enterprises on behalf of the Securities Industry* (證券行業支持民企系列) and which is managed by Haitong Securities Asset Management Co., Ltd.* (上海海通證券資產管理有限公司) bid 80,000,000 of the abovementioned A

Shares. This share disposal process will still involve various aspects such as the payment of the difference between the transaction price and the deposit, the court's issuance of an execution ruling, and completion of share transfer through registration. For details, please refer to the announcements of the Company dated 12 July 2020, 16 July 2020, 17 August 2020, 24 September 2020, 10 November 2020, 31 January 2021, 1 March 2021, 7 March 2021, 22 March 2021, 23 March 2021, 25 March 2021, 28 March 2021, 16 April 2021 and 21 April 2021.

11

1. the progress of the Company's involvement in litigation cases
2. 1. On 17 June 2019, the Company published an announcement in relation to the disputes on a property lease agreement involving the wholly-owned subsidiaries of the
      Company. As disclosed in the announcement, Nanbu County Mei Hao Jia Yuan Real Estate Development Co., Ltd.* (南部縣美好家園房地產開發有限公司) sued Chengdu Lewei Fashion Co., Ltd.* (成都樂微服飾有限公司) ("Chengdu Lewei") and Chengdu La Chapelle Fashion Co., Ltd.* (成都拉夏貝爾服飾有限公司) ("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. After the second instance trial at the Intermediate People's Court of Nanchong City of Sichaun Province, the court ordered Chengdu Lewei to pay compensation of RMB7.897 million and Chengdu La Chapelle be jointly liable for the compensation. The Company is of the view that the verdict in the second instance trial erred in respect of the facts and applicable laws and the compensation amount borne by Chengdu Lewei as ordered by the court was excessive. Both the plaintiff and Chengdu Lewei appealed to the Higher People's Court of Sichuan Province for a retrial and the request for a trial has been accepted. As at the date of this announcement, the Higher People's Court of Sichuan Province has remitted the case to The People's Court of Nanbu County of Sichuan Province for retrial. For details, please refer to the announcements of the Company dated 10 March 2020, 12 January 2021 and 18 March 2021.
   2. On 28 January 2021, the Company published an announcement in relation to the claim of Xinjiang Hengding International Supply Chain Technology Co., Ltd* (新疆恒鼎國 際供應鏈科技有限公司) against the Company and its subsidiaries, namely Candie's Shanghai Fashion Co. Ltd* (上海樂歐服飾有限公司), Shanghai Nuoxing Fashion Co., Ltd.* (諾杏（上海）服飾有限公司) and Shanghai Weile Fashion Co., Ltd. (上海微樂 服飾有限公司), for the total amount of approximately RMB224 million comprising
      the claimed sales amount and penalty interest. On 9 March 2021, the Company received an "Amended Statement of Claim"* (《變更訴訟請求申請書》) from the Urumqi Intermediate Court, in which Xinjiang Hengding International Supply Chain Technology Co., Ltd applied to the Urumqi Intermediate Court to amend the claimed amount to RMB27.47 million. For details, please refer to the announcement of the Company dated 9 March 2021.

12

1. Use of A share proceeds for the temporary replenishment of liquidity and failure to return on time

As considered and approved by the 39th meeting of the 3rd session of the Board and the 22nd meeting of the 3rd session of the supervisory committee of the Company held on 2 March 2020, the Company used the idle proceeds of RMB50 million from A shares for the temporary replenishment of its liquidity for a period of not more than 6 months from the date of consideration and approval by the Board. As considered and approved by the 6th meeting of the fourth session of the Board and the 5th meeting of the fourth session of the supervisory committee of the Company held on 1 September 2020, it was agreed that the Company would extend the period of use of the idle proceeds of RMB50 million from A shares for the temporary replenishment of liquidity from 6 months to 12 months. For details, please refer to the announcements of the Company published on the website of the Shanghai Stock Exchange on 3 March 2020 titled "Announcement of La Chapelle on the Return of Proceeds and Re-use of Idle Proceeds from A Shares for Temporary Replenishment of Liquidity" (Announcement No.: Lin 2020-025) and on 2 September 2020 titled "Announcement of La Chapelle on the Extension of Use of Idle Proceeds from A Shares for Temporary Replenishment of Liquidity" (Announcement No.: Lin 2020-113).

Due to the tight liquidity, the Company has not been able to return the above-mentioned RMB50 million used for the temporary replenishment of liquidity to the Company's designated bank account for proceeds. The Company is actively exploring ways to resolve the problem to return the above-mentioned proceeds, and intends to make efforts to raise funds by disposing of the existing inefficient and idle assets, seeking to introduce investors and external financing, implementing various internal reform and adjustment measures, and actively promoting the proper settlement of litigation and arbitration cases, so as to return the proceeds used for the temporary replenishment of liquidity as soon as possible. For details, please refer to the announcement of the Company published on the website of the Shanghai Stock Exchange on 2 March 2021 titled "Announcement of La Chapelle on the Failure to Return the Proceeds on Time" (Announcement No.: Lin 2021-037).

1. Early settlement of the consideration for the disposal of a subsidiary and the completion of disposal

In view of the Company's current working capital condition and business development

needs and upon negotiation with Hangzhou Yaner Enterprise Management Consulting Co., Ltd.* (杭州雁兒企業管理諮詢有限公司), the Company entered into an agreement with the

relevant parties for the early settlement of the remaining consideration for the disposal of

54.05% equity interest in Hangzhou Anshe E-Commerce Company Limited* (杭州黯涉電 子商務有限公司). All of the payments for the consideration of the disposal have been fully

settled and the disposal has completed. For details, please refer to the announcement of the Company dated 3 February 2021.

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(5) Public criticism from the Shanghai Stock Exchange in relation to share repurchase

As the Company did not implement the repurchase of its shares in accordance with its share repurchase plan as publicly disclosed and the actual implementation was different from the disclosed repurchase plan, the Shanghai Stock Exchange publicly criticized the Company and the then chairman of the Company, Xing Jiaxing and Duan Xuefeng.

(6) The receipt of warning letters from the Xinjiang CSRC

As the Company did not complete its share repurchase proposal within the implementation period, did not amend or waive the share repurchase proposal using the relevant decision- making procedures in a timely manner, did not disclose the risk information regarding the failure to implement the share repurchase proposal as undertaken by the Company, and did not disclose the major litigation cases in a timely manner, the Xinjiang Regulatory Bureau of the China Securities Regulatory Commission ("Xinjiang CSRC") decided to issue warning letters, being an administrative regulatory measure, against both the Company and Duan Xuefeng. For details, please refer to the announcement of the Company dated 30 March 2021.

1. Uncompleted performance of overdue undertakings for the Reporting Period
   □Applicable ✓Not Applicable
2. Warnings on the forecast of possible losses or substantial period-on-period changes to be recorded in cumulative net profit from beginning of the year to the end of the next reporting period and the underlying reasons
   □Applicable ✓Not Applicable

14

4. APPENDIX
4.1 Financial Statements
Consolidated Balance Sheet
As at 31 March 2021
Prepared by Xinjiang La Chapelle Fashion Co., Ltd.
Unit: RMB'000	Type of audit: unaudited
				As at	As at
				31 March	31 December
				2021		2020
Current assets
Cash at bank and on hand	214,999		206,477
Accounts Receivable	329,683	270,637
Advance to suppliers	120,525	122,926
Other receivables	118,826	125,636
Inventories	279,736	438,716
Non-current assets due within one year			25,844
Other current assets	88,433	88,952
Total current assets	1,152,202		1,279,188
Non-current assets
Long-term receivables	4,447		4,447
Long-term equity investments	177,601	180,825
Other equity instruments investment	4,741	4,741
Other non-current financial assets	94,051	94,050
Fixed asset	1,598,102	1,624,902
Construction in progress	70,318	69,054
Right-of-use assets	21,549	47,846
Intangible assets	163,869	166,856
Goodwill	78,231	78,231
Long-term prepaid expenses	6,753	22,984
Deferred tax assets
Other non-current assets	8,591	8,591
Total non-current assets	2,228,253		2,302,527
TOTAL ASSETS	3,380,455		3,581,715

15

	As at	As at
	31 March	31 December
	2021		2020
Current liabilities
Short-term borrowings	1,160,900		1,167,400
Notes payable
Accounts payable	1,062,010	1,164,154
Advance from customers	796	1,428
Contract liabilities	22,967	7,330
Employee benefits payable	51,345	65,636
Taxes payable	185,985	163,914
Other payables	909,212	922,343
Include: interest payable	74,855	58,830
Non-current liabilities due within one year	360,004	368,670
Total current liabilities	3,703,219		3,860,875
Non-current liabilities
Lease liabilities	14,710		36,263
Accrued liabilities	350,565	350,585
Deferred tax liabilities	13,911	13,911
Other non-current liabilities	4,251	8,150
Total non-current liabilities	383,457	408,909
Total liabilities	4,136,676		4,269,784
Equity
Share capital	547,672		547,672
Capital surplus	1,910,806	1,910,806
Less: treasury share	20,010	20,010
Other comprehensive income	-38,866	-38,866
Surplus reserve	246,788	246,788
Undistributed profits	-3,325,828	-3,255,667
Total equity attributable to Shareholders of the Company	-679,438		-609,277
Minority interests	-76,783		-78,792
Total equity	-756,221	-688,069
TOTAL LIABILITIES AND EQUITY	3,880,455		3,581,715

	Principal in charge of
Legal representative:	accounting:	Head of accounting department:
Wu Jinying	Hu Zhiguo	Hu Zhiguo

16

Company Balance Sheet

As at 31 March 2021

Prepared by Xinjiang La Chapelle Fashion Co., Ltd.
Unit: RMB'000	Type of audit: unaudited
			As at	As at
			31 March	31 December
			2021		2020
Current assets
Cash at bank and on hand	151,309		146,321
Accounts receivable	2,649,593	2,606,863
Advance to suppliers	77,568	73,793
Other receivables	429,183	413,944
Inventories	256,001	399,261
Non-current assets matured within one year	-	25,844
Other current assets	14,197	15,039
Total current assets	3,577,851		3,681,065
Non-current assets
Long-term receivables	53		53
Long-term equity investments	642,420	645,539
Other equity instruments
Other non-current financial assets	27,032	27,032
Fixed asset	9,760	11,871
Construction in progress
Right-of-use assets	32	130
Intangible assets	15,687	17,725
Goodwill
Long-term prepaid expenses	22,513	25,597
Deferred tax assets
Other non-current assets
Total non-current assets	717,497		727,947
TOTAL ASSETS	4,295,346		4,409,012

17

	As at	As at
	31 March	31 December
	2021		2020
Current liabilities
Short-term borrowings	610,900		617,400
Notes payable
Accounts payable	1,326,779	1,409,346
Advance from customers
Contract liabilities
Employee benefits payable	11,439	13,862
Taxes payable	83,026	66,615
Other payables	1,379,460	1,376,328
Include: interest payable	20,337	11,829
Non-current liabilities matured within one year	34	2,985
Total current liabilities	3,411,638	3,486,536
Non-current liabilities
Lease liabilities
Accrued liabilities	-	1
Deferred tax liabilities	2,240	2,240
Other non-current liabilities	-	-
Total non-current liabilities	2,240		2,241
Total liabilities	3,413,878		3,488,777
Equity
Share capital	547,672		547,672
Capital surplus	1,897,270	1,897,270
Less: treasury stock	20,010	20,010
Other comprehensive income
Surplus reserve	246,788	246,788
Undistributed profits	-1,790,250	-1,751,485
Total equity	881,470		920,235
TOTAL LIABILITIES AND EQUITY	4,295,348		4,409,012

	Principal in charge of
Legal representative:	accounting:	Head of accounting department:
Wu Jinying	Hu Zhiguo	Hu Zhiguo

18

Consolidated Income Statements

For the 3 months ended 31 March 2021

Prepared by Xinjiang La Chapelle Fashion Co., Ltd.
Unit: RMB'000	Type of audit: unaudited
	For the	For the
	3 months	3 months
	ended	ended
	31 March	31 March
	2021	2020
Revenue	157,775	957,800
Less: Cost of sales	(65,835)	(487,700)
Taxes and surcharges	(2,445)	(5,985)
Selling and distribution expenses	(105,919)	(597,000)
General and administrative expenses	(36,533)	(172,914)
Financial expenses	(13,465)	(55,673)
Add: Other income	18,619	4,822
Investment income	(560)	(48,961)
Loss on fair value changes
Credit impairment losses	(782)	(88,891)
Asset impairment losses	(21,650)	(17,323)
Gains on disposals of assets	2,565	6,033
Operating profit	(68,230)	(505,792)
Add: Non-operating income	131	30
Less: Non-operating expenses	(53)	(592)
Profit before tax	(68,152)	(506,354)
Less: Income tax expenses		77,583
Net profit	(68,152)	(428.771)
Net profit from continuing operations	(65,152)	(373,919)
Net profit from discontinued operations		(54,852)
Attributable to shareholders of the Company	(70,161)	(423,146)
Attributable to minority interests	2,009	(5,625)
Other comprehensive income/after tax		7,998
Attributable to shareholders of the Company/after tax		7,998
Other comprehensive losses that cannot be reclassified
into profit and loss		26,088
Changes in fair value of other equity instrument investments		26,088
Other comprehensive income reclassified to profit or loss		(18,090)
Translation differences on translation of foreign currency
financial statements

19

	For the	For the
	3 months	3 months
	ended	ended
	31 March	31 March
	2021	2020
Total comprehensive income	(68,152)	(420,773)
Attributable to shareholders of the Company	(70,161)	(415,149)
Attributable to minority interests	2,009	(5,624)
Basic losses per share (RMB)	(0.13)	(0.77)
Diluted losses per share (RMB)	(0.13)	(0.77)

For the business combination under common control effected in the current period, the net profit recognized by the merged party before the combination was RMB0, and the net profit recognized by the merged party in the previous period was RMB0.

Legal representative:	Principal in charge of	Head of accounting department:
	accounting:
Wu Jinying	Hu Zhiguo	Hu Zhiguo

20

Company Income Statements

For the 3 months ended 31 March 2021

Prepared by Xinjiang La Chapelle Fashion Co., Ltd.

Unit: RMB'000	Type of audit: unaudited
	For the	For the
	3 months	3 months
	ended	ended
	31 March	31 March
	2021	2020
Revenue	72,799	381,816
Less: Cost of sales	(47,999)	(300,744)
Taxes and surcharges	(2,053)	(1,505)
Selling and distribution expenses	(15,917)	(105,583)
General and administrative expenses	(10,384)	(46,294)
Financial expenses	(5,410)	(8,134)
Including: interest expenses	(12,210)	(9,048)
interest income	(6,809)	(1,745)
Add: Other income	16,056	1,387
Investment income	(2,078)	299
Credit impairment losses	(1,414)
Asset impairment losses	(42,333)	(15,447)
Gains on disposals of assets	44	(69)
Operating profit	(38,689)	(94,274)
Add: Non-operating income		6
Less: Non-operating expenses	(75)	632
Profit before tax	(38,764)	(93,636)
Less: Income tax expenses		23,456
Net profit	(38,764)	(70,180)
Classified by continuity of operations	(38,764)	(70,180)

Total comprehensive income
Legal representative:	Principal in charge of	Head of accounting department:
	accounting:
Wu Jinying	Hu Zhiguo	Hu Zhiguo

21

Consolidated Cash Flow Statements

For the 3 months ended 31 March 2021

Prepared by Xinjiang La Chapelle Fashion Co., Ltd.
Unit: RMB'000	Type of audit: unaudited
	For the	For the
	3 months	3 months
	ended	ended
	31 March	31 March
	2021	2020
1. Cash flows from operating activities
Cash received from sales of products or rendering of services	114,993	689,779
Cash received relating to other operating activities	28,616	103,464
Sub-total of cash inflows	143,609	793,243
Cash paid for goods and services	-5,693	-278,511
Cash paid to and on behalf of employees	-49,120	-227,825
Payments of taxes and surcharges	-1,941	-27,715
Cash paid relating to other operating activities	-61,508	-239,176
Sub-total of cash outflows	-118,262	-773,227
Net cash flows from/(used in) operating activities	25,347	20,016
2. Cash flows used in investing activities
Net cash received from disposals of fixed assets,
intangible assets and other long-term assets	118	119
Net cash received from disposal of subsidiaries and
other business units	100	5,000
Cash received relating to other investing activities		22,675
Sub-total of cash inflows	218	27,794
Cash paid to acquire fixed assets, intangible assets
and other long-term assets	-1,800	-81,137
Cash paid for investments
Net cash paid to acquire a subsidiary and other business units		-8,449
Cash paid relating to other investing activities	-543	-7,199
Sub-total of cash outflows	-2,343	-96,785
Net cash flows used in investing activities	-2,125	-68,991

22

		For the	For the
		3 months	3 months
		ended	ended
		31 March	31 March
		2021	2020
3. Cash flows from financing activities
Cash received from borrowings			112,990
Sub-total of cash inflows			112,990
Cash repayments of borrowings		-4,800	-37,457
Cash payments for distribution of dividends,
profits or interest expenses		-3,584	-11,422
Cash payments relating to other financing activities	-6,859	-113,231
Sub-total of cash outflows		-15,243	-162,110
Net cash flows (used)/from financing activities	-15,243	-49,120
4. Effect of foreign exchange rate changes on cash
and cash equivalents
5. Net decrease in cash and cash equivalents	7,979	-98,095
Add: Cash and cash equivalents at beginning of the period	24,319	175,549
6. Cash and cash equivalents at end of the period	32,298	77,454
Legal representative:	Principal in charge of	Head of accounting department:
	accounting:
Wu Jinying	Hu Zhiguo	Hu Zhiguo

23

Company Cash Flow Statements

For the 3 months ended 31 March 2021

Prepared by Xinjiang La Chapelle Fashion Co., Ltd.
Unit: RMB'000	Type of audit: unaudited
	For the	For the
	3 months	3 months
	ended	ended
	31 March	31 March
	2021	2020
1. Cash flows from operating activities
Cash received from sales of products or rendering of services	13,640	122,843
Return of taxes
Cash received relating to other operating activities	777	438,000
Sub-total of cash inflows	14,417	560,843
Cash paid for goods and services		-183,585
Cash paid to and on behalf of employees	-10	-21,622
Payments of taxes and surcharges		-5,390
Cash paid relating to other operating activities	-9,316	-351,378
Sub-total of cash outflows	-9,326	-561,975
Net cash flows from/(used in) operating activities	5,091	-1,132
2. Cash flows used in investing activities
Net cash received from disposals of fixed assets, intangible
assets and other long-term assets		119
Net cash received from disposal of subsidiaries and other
business units
Cash received relating to other investing activities	7,092
Sub-total of cash inflows	7,092	119
Cash paid to acquire fixed assets, intangible assets and other
long-term assets		-4,566
Net cash paid to acquire a subsidiary and other business units
Cash paid relating to other investing activities
Sub-total of cash outflows		-4,566
Net cash flows used in investing activities	7,092	-4,447

24

		For the	For the
		3 months	3 months
		ended	ended
		31 March	31 March
		2021	2020
3. Cash flows from financing activities
Cash received from borrowings			10,000
Sub-total of cash inflows			10,000
Cash repayments of borrowings			-15,000
Cash payments for distribution of dividends,
profits or interest expenses			-5,981
Cash payments relating to other financing activities	-103	-1,000
Sub-total of cash outflows		-103	-21,981
Net cash flows (used)/from financing activities	-103	-11,981
4. Effect of foreign exchange rate changes on cash
and cash equivalents
5. Net decrease in cash and cash equivalents	12,080	-17,560
Add: Cash and cash equivalents at beginning of the period	10	144,399
6. Cash and cash equivalents at end of the period	12,090	126,839
Legal representative:	Principal in charge of	Head of accounting department:
	accounting:
Wu Jinying	Hu Zhiguo	Hu Zhiguo

25

1. Adjustment to relevant items in the financial statements at the beginning of the year in which the new financial instrument standard, New Revenue Standards and New Standards on Leases are initially implemented
   □Applicable ✓Not Applicable
2. Retrospective adjustments to comparative figures for the previous period due to the initial implementation of the new financial instrument standard and new lease standard
   □Applicable ✓Not Applicable
3. Audit Report
   □Applicable ✓Not Applicable

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.

26