Xinjiang La Chapelle Fashion : UPDATE ANNOUNCEMENT ON THE PROGRESS OF THE JUDICIAL AUCTION OF THE A SHARES HELD BY FORMER SUBSTANTIAL SHAREHOLDER

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 ON THE PROGRESS OF THE JUDICIAL AUCTION

OF THE A SHARES HELD BY FORMER SUBSTANTIAL SHAREHOLDER

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 (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 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, 21 April 2021, 28 April 2021 and 29 April 2021 in relation to (a) the A shares of the Company (the "A Shares") held by (i) Mr. Xing Jiaxing ("Mr. Xing"), the then de facto controller and controlling shareholder of the Company and (ii) Shanghai Hexia Investment Co., Ltd. ("Shanghai Hexia"), the party acting in concert with Mr. Xing, being subject to a subordinated freezing order, (b) the receipt by the Company of a notice of forced auction in respect of the A Shares held by Mr. Xing from the Shanghai Financial Court* (上海金 融法院) (the "Shanghai Financial Court"), (c) the successful auction on 5 March 2021 by the Shanghai Financial Court of the A Shares held by Mr. Xing on the judicial assistance execution platform (the "Judicial Execution Platform") of the Shanghai Stock Exchange ("SSE"), (d) the receipt of execution rulings from Shanghai Wensheng and Shanghai Qijin in respect of 61,600,000 of the A Shares bid by them, (e) the receipt of another execution ruling from Mr. Xing in respect of 80,000,000 of the A Shares bid by three other successful bidders who failed to complete their corresponding transaction, (f) the completion of transfers in respect of 61,600,000 of the A Shares, (g) the successful auction on 26 March 2021 by the Shanghai Financial Court of the 45,200,000 A Shares held by Shanghai Hexia on the Judicial Execution Platform, (h) the receipt by the Company of a notice of forced auction in respect of

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the 80,000,000 A Shares held by Mr. Xing from the Shanghai Financial Court, (i) the successful auction on 16 April 2021 by the Shanghai Financial Court of the 80,000,000 A Shares held by Mr. Xing on the Judicial Execution Platform, (j) the receipt of an execution ruling from Shanghai Qijin in respect of the 45,200,000 A Shares held by Shanghai Hexia, (k) the completion of transfer in respect of 45,200,000 of the A Shares, and (l) the receipt of an execution ruling in respect of the remaining 80,000,000 A Shares held by Mr. Xing (the "Announcements"). Unless otherwise defined, capitalised terms used herein shall have the same meanings as those defined in the Announcements.

1. BACKGROUND
   Since Mr. Xing did not perform certain obligations under the Notarised Documents of Creditor's Rights arising from share pledge repurchase transactions in relation to the A Shares, the Shanghai Financial Court auctioned all the 141,600,000 A Shares (all being restricted shares) on the Judicial Execution Platform on 5 March 2021, representing 25.85% of the total issued share capital of the Company. According to the auction results displayed on the Judicial Execution Platform, all of the 141,600,000 A Shares were successfully bid, 40,000,000 and 21,600,000 of which were ordered to be transferred to Shanghai Qijin and Shanghai Wensheng respectively. The transfers were completed on 25 March 2021. Separately, the Shanghai Financial Court held that, since some of the successful bidders failed to pay their corresponding transaction balance in full within the specified period, 80,000,000 of the 141,600,000 A Shares held by Mr. Xing have not been disposed of successfully. Therefore, the Court re-commenced the disposal process in respect of these 80,000,000 A Shares and auctioned these 80,000,000 A Shares on the Judicial Execution Platform on 16 April 2021. According to the auction result displayed on the Judicial Execution Platform and the Execution Ruling received by the Company from Haitong Securities Asset Management No. 1 FOF Single
   Asset Management Plan of the Series Supporting Private Enterprises on behalf of the Securities Industry* (證券行業支持民企系列) managed by Haitong Securities Asset Management Co., Ltd.* (上海海通證券資產管理有限公司) ("Haitong Securities"), all of the 80,000,000 A Shares were successfully bid and shall be transferred to the successful bidder. For details, please refer to the Announcements.

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1. COMPLETION OF TRANSFER
   On 30 April 2021, the Company received the Notice of Assistance in Execution (2020) Hu 74 Zhi 425 No. 5* （( 2020）滬74執425號之五《協助執行通知》) issued by the Shanghai Financial Court,
   and the Notice on Judicial Freezing and Judicial Transfer of Shares (2021) Si Dong No. 0430-3*(2021司凍0430-3號《股權司法凍結及司法劃轉通知》) issued by the Shanghai Branch of China Securities Depository and Clearing Corporation Limited* (中國證券登記結算有限責任公司), and learned that the transfer of the 80,000,000 A Shares of the Company (all being restricted shares)
   held by Mr. Xing to Haitong Securities Asset Management No. 1 FOF Single Asset Management Plan of the Series Supporting Private Enterprises on behalf of the Securities Industry* (證券行業支 持民企系列) managed by Haitong Securities has been completed. For details, please see the table below.

				Percentage of
				the A Shares
				Involved against
				the Total
			No. of	Issued Share
			A Shares	Capital of the	Date of	Nature of
No.	Transferor	Transferee	Involved	Company	Transfer	the A Shares
1	Mr. Xing	Haitong Securities Asset	80,000,000	14.61%	30 April 2021	Restricted Shares
		Management No. 1 FOF Single
		Asset Management Plan of
		the Series Supporting Private
		Enterprises on behalf of the
		Securities Industry* (證券行
		業支持民企系列) managed by
		Haitong Securities

1. As disclosed in the announcement of the Company dated 29 April 2021, before the change in shareholding:

1. Mr. Xing directly held 80,274,425 A Shares, representing 14.66% of the total issued share capital of the Company; and
2. Mr. Xing and its concert party, Shanghai Hexia, collectively held 80,278,815 A Shares, representing 14.66% of the total issued share capital of the Company

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2. After the change in shareholding:

1. Mr. Xing directly holds 274,425 A Shares, representing 0.05% of the total issued share capital of the Company;
2. Mr. Xing and its concert party, Shanghai Hexia, collectively hold 278,815 A Shares, representing 0.05% of the total issued share capital of the Company;

(iii) Mr. Xing has ceased to be a substantial shareholder of the Company, and Mr. Xing and its concert party, Shanghai Hexia, have collectively ceased to be substantial shareholders of the Company;

1. 1. Haitong Securities Asset Management No. 1 FOF Single Asset Management Plan of the Series Supporting Private Enterprises on behalf of the Securities Industry* (證券行業支持 民企系列) managed by Haitong Securities directly holds 80,000,000 A Shares, representing 14.61% of the total issued share capital of the Company, becoming the second largest substantial shareholder of the Company;
2. IMPACT ON THE COMPANY AND RISK WARNINGS
3. 1. The change in shareholding will not affect the normal production and operation of the Company, will not adversely affect the Company's principal business and its ability to continue as a going concern, and will not render the Company's shareholding distribution unqualified for listing under the SSE Listing Rules.
   2. The Company will closely monitor the subsequent progress of the above-mentioned auctions, and perform its information disclosure obligations (if any) in a timely manner in accordance with relevant rules and regulations.

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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

30 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 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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