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.
อᖛזࢀԎဧٰུ΅Ϟࠢʮ̡
Xinjiang La Chapelle Fashion Co., Ltd.
(formerly known as "Shanghai La Chapelle Fashion Co., Ltd.
€ɪऎזࢀԎဧٰུ΅Ϟࠢʮ̡")
(a joint stock company incorporated in the People's Republic of China with limited liability)
(Stock code: 06116)
ANNOUNCEMENT IN RELATION TO ADDITIONAL NEW 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).
I. SUMMARY
In accordance with relevant provisions of Rules Governing the Listing of Stocks on Shanghai Stock Exchange* (ɪऎᗇՎʹהٰୃɪ̹ۆ'), the Group have conducted statistical analysis on the cumulative increase in new litigation cases of the Group from 23 January 2021 to 4 March 2021. The Group has accumulated an additional 39 new lawsuits, with a total claimed amount of approximately RMB 134 million. A summary of each case is set out as follows:
Amount
No.
Subject partyStanding (Plaintiff/ Defendant)Name of counterparty(ies)Subject of the caseinvolved in the litigation (RMB)
Stage of progress
1
The Company, La Chapelle Fashion Defendant (Taicang) Co., Ltd.* (זࢀԎဧུ€˄ࡑ Ϟࠢʮ̡), Shanghai Weile Fashion Co., Ltd.* (ɪऎฆᆀུϞࠢʮ̡), Chengdu Lewei Fashion Co., Ltd.*(ϓேᆀฆུϞ ࠢʮ̡), La Chapelle (Tianjin) Co., Ltd.*
China CITIC Bank
Dispute
23,122,673.61
Corporation Limited over loan
The case has not yet been heardShanghai Branch*agreement
(ʕڦვБٰ΅Ϟࠢ ʮ̡ɪऎʱБ)
(זࢀԎဧུ€˂ݵϞࠢʮ̡), Xing
Jiaxing
2 The Company, La Chapelle Fashion (Taicang) Co., Ltd. * (זࢀԎဧུ€˄ ࡑϞࠢʮ̡), Shanghai Weile Fashion Co., Ltd. * (ɪऎฆᆀུϞࠢʮ̡), Chengdu Lewei Fashion Co., Ltd. *(ϓே ᆀฆུϞࠢʮ̡), La Chapelle (Tianjin)
Co., Ltd. * (זࢀԎဧུ€˂ݵϞࠢʮ ̡), Xing Jiaxing
3 The Company, La Chapelle Fashion (Taicang) Co., Ltd. * (זࢀԎဧུ€˄ ࡑϞࠢʮ̡), Shanghai Weile Fashion Co., Ltd. * (ɪऎฆᆀུϞࠢʮ̡), Chengdu Lewei Fashion Co., Ltd. *(ϓே ᆀฆུϞࠢʮ̡), La Chapelle (Tianjin)
Co., Ltd. * (זࢀԎဧུ€˂ݵϞࠢʮ ̡), Xing Jiaxing
Defendant
4 La Chapelle Fashion (Taicang) Co., Ltd. * Defendant
(זࢀԎဧུ€˄ࡑϞࠢʮ̡)
5 The Company
China CITIC Bank
DisputeCorporation Limited over loanShanghai Branch*
(ʕڦვБٰ΅Ϟࠢ ʮ̡ɪऎʱБ)
China CITIC BankagreementDisputeCorporation Limited over loanShanghai Branch*
(ʕڦვБٰ΅Ϟࠢ ʮ̡ɪऎʱБ)
Suzhou Yuanqiang Mechanical and Electrical Engineering Co.,
Ltd.*€ᘽψ๕੶ዚ ཥʈϞࠢʮ̡
Defendant
Shanghai Weitong Water Purification Auxiliary Factory* €ɪऎሊஷଋ˥пኒ ᅀ
28,640,052.08 The case has not yet been heard
35,662,170.14 The case has not yet been heardagreementDispute over sale and purchase agreement
17,848.75
Dispute over 53,494.88 bill recourse
The case has not yet been heardThe trial has begun, no judgement has been made yet
6 Shanghai Weile Fashion Co., Ltd.* (ɪऎ Defendant ฆᆀུϞࠢʮ̡)
Shenzhen Vanke Binhai Real EstateDispute over leaseCo., Ltd. * (ଉέ̹ agreement ຬ߅ᏵऎגήପϞ ࠢʮ̡)
1,382,254.61
The case has not yet been heard
7 The Company, Shanghai Langhe Fashion Co., Ltd. * (ɪऎࣦႺུϞࠢʮ̡)Shanghai Mingxing Dispute over 17,954.04
Mechanical andsale andElectrical Equipment purchase Co., Ltd.* (ɪऎጳ agreement ዚཥண௪Ϟࠢʮ̡)
The trial has begun, no judgement has been made yet
8 The Company, Shanghai Xiawei Fashion Co., Ltd.* (ɪऎࢀฆུϞࠢʮ̡)Defendant
Shanghai Mingxing Dispute over 13,624.14
Mechanical andsale andElectrical Equipment purchase Co., Ltd.* (ɪऎጳ agreement ዚཥண௪Ϟࠢʮ̡)
The trial has begun, no judgement has been made yet
9 The Company, Shanghai La Chapelle Casual Fashion Co., Ltd.* (ɪऎזࢀԎဧ ;ඝུϞࠢʮ̡)
Defendant
Shanghai Mingxing Dispute over 353,333.61
Mechanical andsale andElectrical Equipment purchase Co., Ltd.* (ɪऎጳ agreement ዚཥண௪Ϟࠢʮ̡)
The case has not yet been heard
10 The Company, Chengdu Lewei Fashion Co., Ltd. *(ϓேᆀฆུϞࠢʮ̡)Defendant
11 The Company, Candie's Shanghai Fashion Defendant Co., Ltd.* (ɪऎᆀᆄུϞࠢʮ̡)
12 La Chapelle Fashion (Taicang) Co., Ltd*
(זࢀԎဧུ€˄ࡑϞࠢʮ̡)
Shanghai Mingxing Dispute over 84,920.10
Mechanical andsale andElectrical Equipment purchase Co., Ltd.* (ɪऎጳ agreement ዚཥண௪Ϟࠢʮ̡)
Shanghai Mingxing Dispute over 93,165.78
Mechanical andsale andElectrical Equipment purchase Co., Ltd.* (ɪऎጳ agreement ዚཥண௪Ϟࠢʮ̡)
DefendantTaicang Ainengji Electric Power Engineering Co.,
Ltd.*€˄ࡑ̹ฌঐΛ ཥɢʈϞࠢʮ̡)
Dispute over 707,843.04 construction agreement
The case has not yet been heardThe case has not yet been heardThe case has not yet been heard
13 The Company, Shanghai Hong Shan Industrial Co, Ltd*€ɪऎݳӄྼุϞࠢʮ ̡
Zhejiang SanxingDispute over 147,680.00
Down Co., Ltd.*€ए bill recourse
Ϫɧϻٰ΅Ϟ ࠢʮ̡
The trial has begun, no judgement has been made yet
14 The Company, Shanghai Youshi Fashion Co., Ltd.* (ɪऎᎴུུϞࠢʮ̡)
15 The CompanyDefendantShanghai Mingxing 161,625.12
Mechanical andDispute oversale andElectrical Equipment purchase Co., Ltd.* (ɪऎጳ agreement ዚཥண௪Ϟࠢʮ̡)
Defendant
Jinhou Group Weihai Dispute over 14,117,479.4 Clothing Co., Ltd.* processing €ږೕණྠ۾ऎༀ agreement Ϟࠢʮ̡
The case has not yet been heardThe case has not yet been heard
16 La Chapelle Fashion (Taicang) Co., Ltd*
(זࢀԎဧུ€˄ࡑϞࠢʮ̡)
DefendantChangsha Aokesi Plaza Real EstateDispute over leaseCo.,Ltd. *€ڗӍෳд agreement ᄿఙໄุϞࠢʮ ̡
1,431,754.63
The trial has begun, no judgement has been made yet
17 La Chapelle Fashion (Taicang) Co., Ltd*
(זࢀԎဧུ€˄ࡑϞࠢʮ̡)
Defendant
18 Shanghai La Chapelle Casual Fashion Co., Defendant
Ltd.*(ɪऎזࢀԎဧ;ඝུϞࠢʮ̡)
Jiangxi Rongwang Commercial Management Co.,
Ltd.*€ϪГፄਠุ ၍ଣϞࠢʮ̡
Shanghai Changtai Business Management Co.,
Ltd. *€ɪऎڗइਠ ุᐄ၍ଣϞࠢʮ ̡
Dispute over 300,000.00 contract
The case has not yet been heardDispute over lease agreement
3,348,795.80
The case has not yet been heard
19 The Company
20 Shanghai Xiawei Fashion Co., Ltd.*(ɪऎ Defendant ࢀฆུϞࠢʮ̡)
21 The Company,Shanghai Weile Fashion Co., Defendant Ltd.*€ɪऎฆᆀུϞࠢʮ̡,Candie's
Shanghai Fashion Co., Ltd.*€ɪऎᆀ ᆄུϞࠢʮ̡,Shanghai Xiawei Fashion Co., Ltd.*(ɪऎࢀฆུϞࠢʮ ̡),Shanghai Youshi Fashion Co., Ltd.*(ɪ ऎᎴུུϞࠢʮ̡), Shanghai La Chapelle Casual Fashion Co., Ltd.*(ɪऎ זࢀԎဧ;ඝུϞࠢʮ̡), La Chapelle
Fashion (Taicang) Co., Ltd*(זࢀԎဧ ུ€˄ࡑϞࠢʮ̡), The Company,La Chapelle (Tianjin) Co., Ltd. *(זࢀԎဧ ུ€˂ݵϞࠢʮ̡), Chengdu Lewei Fashion Co., Ltd. *(ϓேᆀฆུϞࠢʮ ̡)
22 The Company,La Chapelle Fashion (Taicang) Co., Ltd*€זࢀԎဧུ€˄ࡑ
Ϟࠢʮ̡
Zhongshan XiahuDispute over 1,577,244.00
Shijia Clothing Co., processing
Ltd. *€ʕʆ̹ᒳಳ agreement ˰ུϞࠢʮ̡
Sichuan Aishang Green Leaf Decoration Engineering Co.,
Ltd. *€̬ʇฌ֠ၠ ༀུʈϞࠢʮ ̡
Shenzhen Jicheng photoelectric Co.,Dispute over 6,648.30 construction agreement
Dispute over sale andLtd. * (ଉέ̹ϓ purchase
ΈཥϞࠢʮ̡)
1,909,392.50
agreementDefendantShanghai Mingxing Dispute over 1,230,359.70
Mechanical andsale andElectrical Equipment purchase Co., Ltd.* (ɪऎጳ agreement ዚཥண௪Ϟࠢʮ̡)
The case has not yet been heardThe case has not yet been heardThe case has not yet been heard
23 The Company,La Chapelle (Tianjin) Co.,
Ltd. *€זࢀԎဧུ€˂ݵϞࠢʮ̡
24 The Company
25 The CompanyShanghai Mingxing Dispute over 105,800.52
Mechanical andsale andElectrical Equipment purchase Co., Ltd.* (ɪऎጳ agreement ዚཥண௪Ϟࠢʮ̡)
DefendantNingbo KaihuiDispute over 1,639,754.32
Clothing Co., Ltd. * processing
(ྐྵت௱ሾུϞࠢ agreement ʮ̡)
DefendantWuxi ShangnengDispute overTextile Technology processing Co., Ltd.* (ೌ፼֠ঐ agreement ५ᔌ߅ҦϞࠢʮ̡)
The case has not yet been heard
101,034.00
The case has not yet been heard
26 La Chapelle Fashion (Taicang) Co., Ltd* €זࢀԎဧུ€˄ࡑϞࠢʮ̡
27 La Chapelle Fashion (Taicang) Co., Ltd* €זࢀԎဧུ€˄ࡑϞࠢʮ̡
Defendant
Suning Plaza Branch Disputeof Xuzhou Suning Real Estate Co.,over joint operation
Ltd.* (ࢱψᘽ∡ໄุ agreement Ϟࠢʮ̡ᘽྐྵᄿఙ ʱʮ̡)
Defendant
Changsha Yinpenling Dispute over Aux Business property Service Co., Ltd.* services (ڗӍვޯᏊෳд agreement ਠุਕϞࠢʮ̡)
400,683.21
The case has not yet been heard
336,871.55
The case has not yet been heard
28 The Company
DefendantShanghai Wanpeng Textile Co., Ltd.*
(ɪऎຬᘄ५ᔌۜϞ ࠢʮ̡)
Dispute over 112,000.00 bill recourse
The case has not yet been heard
29 La Chapelle Fashion (Taicang) Co., Ltd* €זࢀԎဧུ€˄ࡑϞࠢʮ̡
30 The Company
Wuhan Real Estate Holding Co., Ltd.
*(؛ဏήପછ ٰϞࠢʮ̡),
Wuhan Shuanglian Chuanghe Real Estate Co., Ltd. *
(؛ဏᕐᑌ௴ձໄุ Ϟࠢʮ̡)
Dispute over lease agreementDefendantGuangzhou Yutong Dispute over Textile Clothing Co., bill recourse Ltd. * (ᄿψᚑஷ५ ᔌༀϞࠢʮ̡)
116,258.78
62,931.00
The case has not yet been heard
31 The Company
32 The CompanyDefendantDefendant
33 The Company, Candie's Shanghai Fashion Defendant Co., Ltd.* (ɪऎᆀᆄུϞࠢʮ̡),
Shanghai Hong Shan Industrial Co, Ltd* €ɪऎݳӄྼุϞࠢʮ̡
Wuxi ZhuochengDispute over 113,500.00
Textile Technology sale and Co., Ltd. * (ೌ፼ՙ purchase
ϓ५ᔌ߅ҦϞࠢʮ agreement ̡)
Shanghai YigeDispute over 14,156,387.68
Clothing Co., Ltd. * processing
(ɪऎମུࣸϞࠢ agreement ʮ̡)
Zhejiang SanxingDispute over 135,022.07
Down Co., Ltd.*€ए bill recourse
Ϫɧϻٰ΅Ϟ ࠢʮ̡
The case has not yet been heardThe case has not yet been heardThe case has not yet been heard
34 The Company, Candie's Shanghai Fashion Defendant Co., Ltd.* (ɪऎᆀᆄུϞࠢʮ̡),
Shanghai Hong Shan Industrial Co, Ltd* €ɪऎݳӄྼุϞࠢʮ̡
Zhejiang SanxingDispute overDown Co., Ltd.*€ए bill recourse
Ϫɧϻٰ΅Ϟ ࠢʮ̡
848,700.00
The case has not yet been heard
35 The Company, Candie's Shanghai Fashion Defendant Co., Ltd.* (ɪऎᆀᆄུϞࠢʮ̡),
Shanghai Hong Shan Industrial Co, Ltd* €ɪऎݳӄྼุϞࠢʮ̡
Zhejiang SanxingDispute over 900,000.00
Down Co., Ltd.*€ए bill recourse
Ϫɧϻٰ΅Ϟ ࠢʮ̡
36 The Company, Candie's Shanghai Fashion Defendant Co., Ltd.* (ɪऎᆀᆄུϞࠢʮ̡),
Shanghai Hong Shan Industrial Co, Ltd* €ɪऎݳӄྼุϞࠢʮ̡
Zhejiang SanxingDispute over 388,296.00
Down Co., Ltd.*€ए bill recourse
Ϫɧϻٰ΅Ϟ ࠢʮ̡
The case has not yet been heard
37 The Company, Candie's Shanghai Fashion Defendant Co., Ltd.* (ɪऎᆀᆄུϞࠢʮ̡),
Shanghai Hong Shan Industrial Co, Ltd* €ɪऎݳӄྼุϞࠢʮ̡
Zhejiang SanxingDispute over 265,000.00
Down Co., Ltd.*€ए bill recourse
Ϫɧϻٰ΅Ϟ ࠢʮ̡
The case has not yet been heard
38 The Company, Candie's Shanghai Fashion Defendant Co., Ltd.* (ɪऎᆀᆄུϞࠢʮ̡),
Shanghai Hong Shan Industrial Co, Ltd* €ɪऎݳӄྼุϞࠢʮ̡
Zhejiang SanxingDispute over 99,800.00
Down Co., Ltd.*€ए bill recourse
Ϫɧϻٰ΅Ϟ ࠢʮ̡
The case has not yet been heard
39 The Company, Candie's Shanghai Fashion Defendant Co., Ltd.* (ɪऎᆀᆄུϞࠢʮ̡),
Shanghai Hong Shan Industrial Co, Ltd* €ɪऎݳӄྼุϞࠢʮ̡
Zhejiang SanxingDispute over 51,400.00
Down Co., Ltd.*€ए bill recourse
Ϫɧϻٰ΅Ϟ ࠢʮ̡
The case has not yet been heard
II. OVERVIEW OF ACCUMULATED MATERIAL LITIGATION 1. Case No. 1 from the table above
a. Parties of the case
Plaintiff: China CITIC Bank Corporation Limited Shanghai Branch * (ʕڦვБٰ΅Ϟࠢ ʮ̡ɪऎʱБ) ("CITIC Shanghai")
Defendants: the Company, La Chapelle Fashion (Taicang) Co., Ltd. * (זࢀԎဧུ€˄ ࡑϞࠢʮ̡€) "La Chapelle Taicang", Shanghai Weile Fashion Co., Ltd. * (ɪऎฆᆀ ུϞࠢʮ̡)€"Shanghai Weile", Chengdu Lewei Fashion Co., Ltd. * (ϓேᆀฆུϞ ࠢʮ̡)€"Chengdu Lewei", La Chapelle (Tianjin) Co., Ltd. * (זࢀԎဧུ€˂ݵϞࠢ ʮ̡)€"La Chapelle Tianjin", and Xing Jiaxing ("Mr. Xing")
b. Overview of the case
Due to a dispute over a loan agreement, the Plaintiff filed a lawsuit with the People's Court of Pudong New District of Shanghai on 19 January 2021. The Company received the claim materials on 26 January 2021 from the court. The case facts and reasons as provided by the Plaintiff are as follows:
On 11 November 2019, each of La Chapelle Taicang, Shanghai Weile, Chengdu Lewei, La Chapelle Tianjin, and Mr. Xing entered into a "Maximum Guarantee Agreement" (Hu Yin Zui Bao Zi No. 731231193021 to 731231193025) with the Plaintiff. Pursuant to the said agreements, each of these Defendants provided a maximum liability guarantee for any debts owed by the Company to the Plaintiff arising from the relevant main agreements signed between the Plaintiff and the Company between 19 October 2018 and 2 January 2022. The maximum principal amount of each of the guarantees is RMB150 million and each provides for joint liability. None of the guarantee periods has passed three years since the relevant expiry dates of the debt performance periods under the main agreements.
On 23 December 2019, Chengdu Lewei and the Plaintiff entered into a "Maximum Mortgage Agreement" (2019 Hu Yin Zui Di Zi No.731231193018). Pursuant to this agreement, Chengdu Lewei provided a maximum guarantee by way of mortgage for any debts owed by the Company to the Plaintiff arising from the relevant main agreements signed between the Plaintiff and the Company between 2 November 2018 and 2 January 2023. The maximum principal amount of the guarantee is RMB130 million.
On 11 August 2020, the Plaintiff and the Company entered into two "RMB Working Capital Loan Agreements" (2020 Hu Yin Dai Zi No.202008-005 to 202008-006) (the "Loan Agreements"), pursuant to which the Plaintiff granted loans of working capital of RMB17 million and RMB8 million respectively to the Company. The Loan Agreements also provide that where the Company's collaterals are seized or there is a cross-default, the Plaintiff has the right to declare that the loans under the Loan Agreements shall fall due immediately.
On 30 October 2020, the Plaintiff and the six Defendants entered into a "Supplementary Agreement" (2020 Hu Yin Dai Zi No. 202008-005-Bu 1), pursuant to which the repayment schedule as agreed in one of the Loan Agreements (2020 Hu Yin Dai Zi No. 202008-005) was changed: RMB2 million and RMB15 million shall be repaid on 31 October 2020 and 15 April 2021 respectively.
On 9 December 2020, the Company published an announcement (Lin 2020-146), which disclosed that the number of lawsuits had increased to 439, with the total claimed amounts being approximately RMB1,523 million, and that collaterals had been seized.
The Plaintiff is of the view that the Defendants have breached the relevant provisions of the aforementioned Loan Agreements, and it therefore has the right to declare that all loans under the Loan Agreements shall fall due immediately.
c. Claims of the Plaintiff
i. Order the Company to return the loan principal of RMB23 million;
ii. Order the Company to pay overdue interest as at 14 January 2021 of RMB72,673.61 and overdue interest from 15 January 2021 to the date of actual debt settlement (based on the principal and interest in arrears, calculated at a penalty interest rate of 6.825%);
iii. Order the Company to pay the Plaintiff legal fees of RMB50,000;
iv. Order La Chapelle Taicang, Shanghai Weile, Chengdu Lewei, La Chapelle Tianjin, and Mr. Xing to be jointly liable for the Company's payment obligations described in items i to iii above;
v. Order that if the Company fails to fulfil its payment obligations described in items i to iii above, the Plaintiff be entitled to negotiate with Chengdu Lewei to realise at a discount or apply for the auction or sale of the land use rights of Chengdu Lewei's state-owned land and to receive compensation in priority from those proceeds, and the Company shall continue to pay off any resulting shortfall;
d. Progress of the case
The case has not yet been heard.
2. Case No. 2 from the table above
a. Parties of the case
Plaintiff: CITIC Shanghai
Defendants: the Company, La Chapelle Taicang, Shanghai Weile, Chengdu Lewei, La Chapelle Tianjin, and Mr. Xing
b. Overview of the case
Due to a dispute over a loan agreement, the Plaintiff filed a lawsuit with the People's Court of Pudong New District of Shanghai on 19 January 2021. The Company received the claim materials on 26 January 2021 from the court. The case facts and reasons as provided by the Plaintiff are as follows:
On 11 November 2019, each of La Chapelle Taicang, Shanghai Weile, Chengdu Lewei, La Chapelle Tianjin, and Mr. Xing entered into a "Maximum Guarantee Agreement" (Hu Yin Zui Bao Zi No. 731231193021 to 731231193025) with the Plaintiff. Pursuant to the said agreements, each of these Defendants provided a maximum liability guarantee for any debts owed by the Company to the Plaintiff arising from the relevant main agreements signed between the Plaintiff and the Company between 19 October 2018 and 2 January 2022. The maximum principal amount of each of the guarantees is RMB150 million and each provides for joint liability. None of the guarantee periods has passed three years since the relevant expiry dates of the debt performance periods under the main agreements.
On 23 December 2019, Chengdu Lewei and the Plaintiff entered into a "Maximum Mortgage Agreement" (2019 Hu Yin Zui Di Zi No.731231193018). Pursuant to this agreement, Chengdu Lewei provided a maximum guarantee by way of mortgage for any debts owed by the Company to the Plaintiff arising from the relevant main agreements signed between the Plaintiff and the Company between 2 November 2018 and 2 January 2023. The maximum principal amount of the guarantee is RMB130 million.
On 11 August 2020, the Plaintiff and the Company entered into two "RMB Working Capital Loan Agreements" (2020 Hu Yin Dai Zi No.202008-009 to 202008-010) (the "Loan Agreements"), pursuant to which the Plaintiff granted loans of working capital of RMB20 million and RMB9 million respectively to the Company. The Loan Agreements also provide that where the Company's collaterals are seized or there is a cross-default, the Plaintiff has the right to declare that the loans under the Loan Agreements shall fall due immediately.
On 27 November 2020, the Plaintiff and the six Defendants entered into a "Supplementary Agreement" (2020 Hu Yin Dai Zi No. 202008-009-Bu 1), pursuant to which the repayment schedule as agreed in one of the Loan Agreements (2020 Dai Yin Dai Zi No. 202008-009) was changed: RMB0.5 million and RMB19.5 million shall be repaid on 30 November 2020 and 22 April 2021 respectively.
On 9 December 2020, the Company published an announcement (Lin 2020-146), which disclosed that the number of lawsuits had increased to 439, with the total claimed amounts being approximately RMB1,523 million, and that collaterals had been seized.
The Plaintiff is of the view that the Defendants have breached the relevant provisions of the aforementioned Loan Agreements, and it therefore has the right to declare that all loans under the Loan Agreements shall fall due immediately.
c. Claims of the Plaintiff
i. Order the Company to return the loan principal of RMB28.5 million;
ii. Order the Company to pay overdue interest as at 14 January 2021 of RMB90,052.08 and overdue interest from 15 January 2021 to the date of actual debt settlement (based on the principal and interest in arrears, calculated at a penalty interest rate of 6.825%);
iii. Order the Company to pay the Plaintiff the legal fees of RMB50,000;
iv. Order La Chapelle Taicang, Shanghai Weile, Chengdu Lewei, La Chapelle Tianjin, and Mr. Xing to be jointly liable for the Company's payment obligations described in items i to iii above;
v. Order that if the Company fails to fulfil its payment obligations described in items i to iii above, the Plaintiff be entitled to negotiate with Chengdu Lewei to realise at a discount or apply for the auction or sale of the land use rights of Chengdu Lewei's state-owned land and to receive compensation in priority from those proceeds, and the Company shall continue to pay off any resulting shortfall;
d. Progress of the case
The case has not yet been heard.
3. Case No. 3 from the table above
a. Parties of the case
Plaintiff: CITIC Shanghai
Defendants: the Company, La Chapelle Taicang, Shanghai Weile, Chengdu Lewei, La Chapelle Tianjin, and Mr.Xing
b. Overview of the case
Due to a dispute over a loan agreement, the Plaintiff filed a lawsuit with the People's Court of Pudong New District of Shanghai on 19 January 2021. The Company received the claim materials on 26 January 2021 from the court. The case facts and reasons as provided by the Plaintiff are as follows:
On 11 November 2019, each of La Chapelle Taicang, Shanghai Weile, Chengdu Lewei, La Chapelle Tianjin, and Mr. Xing entered into a "Maximum Guarantee Agreement" (Hu Yin Zui Bao Zi No. 731231193021 to 731231193025) with the Plaintiff. Pursuant to the said agreements, each of these Defendants provided a maximum liability guarantee for any debts owed by the Company to the Plaintiff arising from the relevant main agreements signed between the Plaintiff and the Company between 19 October 2018 and 2 January 2022. The maximum principal amount of each of the guarantees is RMB150 million and each provides for joint liability. None of the guarantee periods has passed three years since the relevant expiry dates of the debt performance periods under the main agreements.
On 23 December 2019, Chengdu Lewei and the Plaintiff entered into a "Maximum Mortgage Agreement" (2019 Hu Yin Zui Di Zi No.731231193018). Pursuant to this agreement, Chengdu Lewei provided a maximum guarantee by way of mortgage for any debts owed by the Company to the Plaintiff arising from the relevant main agreements signed between the Plaintiff and the Company between 2 November 2018 and 2 January 2023. The maximum principal amount of the guarantee is RMB130 million.
On 11 August 2020, the Plaintiff and the Company entered into two "RMB Working Capital Loan Agreements" (2020 Hu Yin Dai Zi No.202008-007 to 202008-008) (the "Loan Agreements"), pursuant to which the Plaintiff granted loans of working capital of RMB18 million to the Company. The Loan Agreements also provide that where the Company's collaterals are seized or there is a cross-default, the Plaintiff has the right to declare that the loans under the Loan Agreements shall fall due immediately.
On 27 November 2020, the Plaintiff and the six Defendants entered into a "Supplementary Agreement" (2020 Hu Yin Dai Zi No. 202008-008-Bu 1), pursuant to which the repayment schedule as agreed in one of the Loan Agreements (2020 Hu Yin Dai Zi No. 202008-008) was changed: RMB0.5 million and RMB17.5 million shall be repaid on 30 November 2020 and 22 April 2021 respectively.
On 9 December 2020, the Company published an announcement (Lin 2020-146), which showed that the number of lawsuits had increased to 439, with the total claimed amounts being approximately RMB1,523 million, and that collaterals had been seized.
The Plaintiff is of the view that the Defendants have breached the relevant provisions of the aforementioned Loan Agreements, and it therefore has the right to declare that all loans under the Loan Agreements shall fall due immediately.
c. Claims of the Plaintiff
i. Order the Company to return the loan principal of RMB35.5 million;
ii. Order the Company to pay overdue interest as at 14 January 2021 of RMB112,170.14 and overdue interest from 15 January 2021 to the date of actual debt settlement (based on the principal and interest in arrears, calculated at a penalty interest rate of 6.825%);
iii. Order the Company to pay the Plaintiff the legal fees of RMB50,000;
iv. Order La Chapelle Taicang, Shanghai Weile, Chengdu Lewei, La Chapelle Tianjin, and Mr. Xing to be jointly liable for the Company's payment obligations described in items i to iii above;
v. Order that if the Company fails to fulfil its payment obligations described in items i to iii above, the Plaintiff be entitled to negotiate with Chengdu Lewei to realise at a discount or apply for the auction or sale of the land use rights of Chengdu Lewei's state-owned land and to receive compensation in priority from those proceeds, and the Company shall continue to pay off any resulting shortfall;
d. Progress of the case
The case has not yet been heard.
4. Other accumulated litigation cases
Please refer to the overseas regulatory announcement of the Company dated 5 March 2021 for further details of other accumulated litigation cases in respect of the Group.
III. IMPACT OF THE ABOVE LITIGATION CASES ON THE PROFITS OF THE COMPANY IN CURRENT OR SUBSEQUENT PERIODS
The above litigation cases may have certain negative impacts on the Company's current or subsequent profits. In view of the fact that some of the Company's litigation cases have not yet been heard or concluded, there are uncertainties on the impact on the Company's current or future profits. The Company will perform corresponding accounting treatments in accordance with the requirements of related accounting standards as well as the actual situation. The final impact of the above litigation cases will be subject to the results of the respective court judgments and the annual audited financial results of the Company.
IV. RELEVANT RISK WARNINGS
1. The above litigation cases have impacted, to a certain extent, on the Company's cash flow and business operation. The Company does not rule out the subsequent emergence of further litigation cases against the Group before eliminating the impact of the above litigation cases. As of the disclosure date of this announcement, the Company has accumulated a total of 83 unsettled lawsuits, with the total claimed amounts being approximately RMB1,368 million (including the material litigations which have been disclosed). In response to the debt problems currently faced by the Company, the Company will take a responsible attitude to all shareholders and creditors, face up to the current difficulties and problems, actively plan various debt repayment solutions, and adjust current business operation and development ideas so as to strive to promote the Company to return to a healthy development track.
2. The Company will pay close attention to the progress of the litigation cases, and will 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
5 March 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 05 March 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 March 2021 13:26:07 UTC.
