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").
1
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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2021, 133 cases of the accumulated litigation cases disclosed in the Announcements have been adjudicated, settled, or withdrawn.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Withdrawn | Adjudicated | Settled | Total | ||||||||||||||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.
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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.
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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.
3
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) | ||||||
4
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) |
5
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) |
6
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.
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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.
7
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.