Xinjiang La Chapelle Fashion : UPDATE ANNOUNCEMENT IN RELATION TO POSSIBLE DELISTING RISK WARNING IN RESPECT OF A SHARES LISTED ON SHANGHAI STOCK EXCHANGE

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อᖛזࢀԎဧ؂ٰུ΅Ϟࠢʮ̡

Xinjiang La Chapelle Fashion Co., Ltd.

(formerly known as "Shanghai La Chapelle Fashion Co., Ltd.

€ɪऎזࢀԎဧ؂ٰུ΅Ϟࠢʮ̡")

(a joint stock company incorporated in the People's Republic of China with limited liability)

(Stock code: 06116)

UPDATE ANNOUNCEMENT IN RELATION TO

POSSIBLE DELISTING RISK WARNING IN RESPECT OF A SHARES

LISTED ON SHANGHAI STOCK EXCHANGE

This announcement is made by Xinjiang La Chapelle Fashion Co., Ltd. (the "Company") pursuant to Rule 13.09 of the Listing Rules and the Inside Information Provisions (as defined under the Listing Rules) under Part XIVA of the SFO.

Reference is made to the announcements of the Company dated 21 January 2020, 23 March 2020, 30 March 2020, 29 April 2020, 8 May 2020, 14 May 2020, 22 May 2020, 29 May 2020, 5 June 2020, 12 June 2020, 19 June 2020 and 24 June 2020 in relation to the possible "delisting risk warning" in respect of the A shares of the Company (the "A Shares"), the announcement of the Company dated 30 June 2020 in respect of the imposition of a delisting risk warning in respect of the A Shares from 1 July 2020 and the announcement of the Company dated 29 January 2021 and 3 March 2021 in relation to the possible "delisting risk warning" in respect of the A Shares (collectively, the "Announcements"). Capitalised terms used herein shall have the same meanings as defined in the Announcements, unless otherwise specified.

The Company estimated that the net asset attributable to shareholders of the Company at the end of the year 2020 will be negative. In accordance with the relevant requirements of the Rules Governing the Listing of Shares on the Shanghai Stock Exchange* ( ɪऎᗇՎʹ׸הٰୃɪ̹஝ۆ') (the "SSE Listing Rules"), a "delisting risk warning" may be imposed on the A Shares by the Shanghai Stock Exchange. The relevant risks are reiterated as follows:

1. Based on the preliminary assessment made by the finance department, it is estimated that the

Company will incur a loss for the year ended 31 December 2020; the net loss attributable to shareholders of the Company will be between RMB1,300 million and RMB1,800 million.

For details, please refer to the announcement of the Company dated 29 January 2021 in relation to the estimated loss of the Company for the year ended 31 December 2020.

• 2. Based on the preliminary assessment made by the finance department, it is estimated that the net asset attributable to shareholders of the Company at the end of the year 2020 will be negative. If the Company's audited net asset attributable to the shareholders of the Company at the end of the year 2020 is negative, a delisting risk warning might be imposed on the A Shares of the Company.

• 3. The specific figures of the Company's annual results for the year ended 31 December 2020 will be disclosed in detail in the 2020 annual report of the Company.

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

22 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.

* For identification purpose only.