Financial Performance - Total operating revenue for 2023 was RMB 170,233,000[11]. - Total operating costs amounted to RMB 47,086,000[11]. - Net profit for the year was a loss of RMB 753,310,000, representing a decrease of RMB 4,175,000 compared to the previous report[13]. - The company's investment income showed a loss of RMB 390,037,000, which is an increase in loss by RMB 8,579,000[11]. - The basic and diluted earnings per share were both RMB -1.36, a decrease of RMB 0.01 from the previous report[13]. - The company reported a total profit loss of RMB 750,831,000, reflecting a decrease of RMB 4,175,000 compared to the previous report[11]. - Total revenue for 2023 was RMB 170,233,000, a decrease of 13.9% compared to RMB 197,841,000 in 2022[44]. - Gross profit for 2023 was RMB 123,147,000, with a gross margin of 72.34%, up from 68.78% in 2022[44]. - Operating loss for 2023 was RMB 575,432,000, improving from a loss of RMB 942,023,000 in 2022[44]. - The net loss attributable to shareholders for the period was approximately RMB 753.3 million, a reduction of 29.8% from the previous year's loss[62]. - The company reported a net loss of RMB 1.5 billion after excluding non-recurring items, a decrease of RMB 1.7 billion from the previous year[60]. Assets and Liabilities - Total current assets reported at RMB 188,207,000, an increase of RMB 404,000 compared to the unaudited announcement[6]. - Total non-current assets reported at RMB 409,642,000, a decrease of RMB 4,579,000 compared to the unaudited announcement[8]. - Total assets amounted to RMB 597,849,000, reflecting a decrease of RMB 4,175,000 from the unaudited figures[9]. - Total liabilities reported at RMB 3,922,857,000, with no changes from the unaudited figures[9]. - The total equity attributable to shareholders was reported at RMB -3,240,854,000, a decrease of RMB 4,175,000 compared to the unaudited figures[9]. - Total assets decreased to RMB 597,849,000 in 2023 from RMB 1,156,191,000 in 2022[45]. - Total liabilities increased to RMB 3,922,857,000 in 2023 from RMB 3,729,400,000 in 2022[45]. Bankruptcy and Restructuring - The company continues to operate under bankruptcy reorganization, indicating ongoing financial challenges[2]. - The company is currently undergoing bankruptcy reorganization, with significant uncertainty regarding the approval of the reorganization plan[18]. - The company’s subsidiary, Anhui Xinchang, is in liquidation, affecting the overall financial position[19]. - The audit report for the 2023 financial statements issued by Dahua CPA indicates an inability to express an opinion due to the company's bankruptcy restructuring process and associated difficulties[25]. - Four subsidiaries have entered bankruptcy liquidation or restructuring, with potential liabilities affecting the company if debts are not fully settled[27]. - The first creditors' meeting has been held for the subsidiaries, with some debts confirmed, and a second meeting is expected in 2024 to clarify debt repayment plans[28]. - The company is actively pursuing restructuring to alleviate historical debt burdens and improve operational capabilities[49]. - The company plans to improve its operational viability and address significant uncertainties regarding its ability to continue as a going concern[27]. - The company plans to actively promote restructuring efforts to alleviate historical debt burdens and improve operational conditions[125]. Market and Operational Strategies - The company has multiple brands, including La Chapelle and USHGEE, targeting a diverse range of female consumers in the mass fashion market[33]. - The retail market for clothing, shoes, and textiles in China grew by 12.9% year-on-year in 2023, indicating a recovering consumer demand[58]. - Revenue from the La Chapelle brand increased by 50.9% in the brand comprehensive service channel, reflecting successful expansion strategies[69]. - The company plans to continue focusing on high-margin brand services and optimizing inventory sales strategies to improve overall profitability[69]. - The company aims to strengthen core brand development and achieve differentiated brand positioning[51]. - The company will focus on brand protection and compliance, including measures to prevent the sale of counterfeit products and unify store decoration styles[130]. - The company will continue to implement a "one brand, one strategy" positioning strategy, focusing on women's clothing brands and restructuring brand positioning to enhance the competitive advantage of the La Chapelle main brand[129]. Cash Flow and Financial Management - In 2023, the net cash inflow from operating activities was RMB 8.0 million, a significant improvement from a net outflow of RMB 16.0 million in 2022[92]. - The net cash increase for the group in 2023 was RMB 5.6 million, a recovery from a decrease of RMB 25.3 million in 2022[92]. - The net cash outflow from investing activities was RMB 0.07 million in 2023, significantly reduced from RMB 7.0 million in 2022[92]. - The group recorded a net cash outflow of RMB 2.4 million from financing activities in 2023, slightly higher than the RMB 2.3 million outflow in 2022[92]. Employee and Corporate Governance - The company has reduced its workforce from 421 full-time employees as of December 31, 2022, to 297 employees as of December 31, 2023[110]. - The group views employees as the most important resource and provides equal opportunities and training[197]. - The group has established a compensation and assessment committee to determine the compensation policy based on operational performance and market standards[186]. - The company has received written confirmations from all independent non-executive directors regarding their independence as per listing rules[175]. - The company has confirmed the independence of all independent non-executive directors in accordance with the listing rules[175]. Legal and Compliance Issues - The company has not been able to obtain sufficient audit evidence to express an opinion on the financial statements due to ongoing legal proceedings[21]. - The company is involved in 13 litigation cases affecting one property with a book value of approximately RMB 216 million, which is at risk of judicial auction[109]. - The group has no significant litigation or arbitration cases as of December 31, 2023[200]. Shareholder and Dividend Information - The company reported a negative distributable profit for the year ending December 31, 2023, leading to a recommendation of no cash dividends or bonus shares[157]. - The company has no distributable reserves as of December 31, 2023[155]. - The company’s profit distribution policy states that at least 20% of the distributable profit should be distributed as cash dividends if conditions are met[162].

Financial Performance - For the year ended December 31, 2023, the company reported an operating revenue of RMB 170,233,000, a decrease of 14.0% compared to RMB 197,841,000 in 2022[6] - The gross profit for the same period was RMB 123,147,000, down 9.5% from RMB 136,080,000 in the previous year[6] - The net loss for 2023 was RMB 749,135,000, representing a 30.2% improvement from a net loss of RMB 1,073,774,000 in 2022[6] - The company's total revenue for the year ended December 31, 2023, was 170,233 million, a decrease of 13.9% compared to 197,841 million in 2022[54] - The net loss attributable to shareholders for the fiscal year 2023 was approximately RMB 749.1 million, representing a 30.2% reduction in losses year-over-year[75] - Basic and diluted loss per share for 2023 was (1.35), an improvement from (1.97) in 2022[59] Assets and Liabilities - Total assets decreased by 47.9% to RMB 602,024,000 from RMB 1,156,191,000 in 2022[6] - As of December 31, 2023, the total liabilities amounted to RMB 3,922,857 thousand, an increase from RMB 3,729,400 thousand in 2022, reflecting a growth of approximately 5.2%[13] - Current liabilities totaled RMB 3,436,244 thousand, up from RMB 3,227,835 thousand in the previous year, indicating an increase of about 6.5%[13] - The company's equity attributable to shareholders was negative RMB 3,236,679,000, a decline of 29.2% from negative RMB 2,505,849,000 in the previous year[6] - The company's total equity attributable to shareholders was reported at RMB (3,236,679) thousand, compared to RMB (2,505,849) thousand in 2022, showing a decline of approximately 29.1%[13] Cash Flow and Financial Expenses - The total amount of cash and cash equivalents decreased to 49,930 million in 2023 from 100,238 million in 2022, a decline of 50.2%[60] - The company reported a significant reduction in financial expenses, decreasing from RMB 181,703,000 in 2022 to RMB 88,641,000 in 2023[8] - The company recorded a net financial expense of RMB 886 million in 2023, down from RMB 1,817 million in 2022[94] Inventory and Accounts Receivable - Accounts receivable increased significantly to 1,580,379 million in 2023 from 473,608 million in 2022, reflecting a rise of 234.5%[61] - The company has fully provided for bad debts on its top five accounts receivable, totaling 1,570,175 million, which represents 93% of the total accounts receivable[61] - Inventory as of December 31, 2023, was valued at RMB 101.181 million, with a provision for inventory impairment of RMB 62.728 million[66] Business Operations and Revenue Streams - The main business revenue was 154,756 million, up from 135,801 million in 2022, indicating a growth of 13.9%[54] - The rental business revenue dropped to RMB 9.7 million, a decline of approximately 80.7% compared to the same period last year, primarily due to bankruptcy proceedings affecting Shanghai Weile and Taicang logistics assets[76] - Revenue from counters decreased by 19.5% from RMB 49.1 million in 2022 to RMB 39.6 million in 2023, while specialty store revenue fell by 22.1% from RMB 31.6 million to RMB 24.6 million[79] - Franchise and joint venture revenue increased by 13.5% from RMB 18.9 million in 2022 to RMB 21.5 million in 2023, driven by the "brand empowerment + operational service" business model[79] - The integrated brand service business generated approximately RMB 53.4 million, an increase of 88.3% compared to the previous year[79] Restructuring and Future Plans - The company plans to disclose its audited financial results by April 30, 2024, due to ongoing bankruptcy restructuring procedures[3] - The company is currently undergoing a restructuring process, which has impacted its financial reporting timeline[3] - The company aims to divest inefficient assets to enhance asset quality post-restructuring and optimize its equity structure[118] - The company plans to restore its credit system and enhance financing capabilities following its restructuring, improving communication with financial institutions[122] Management and Governance - The board of directors is led by Chairman Zhao Jinwen, with executive directors Zhang Ying and Zhu Fengwei, and non-executive director Wang Yan[140] - The company emphasizes the need for shareholders and potential investors to act prudently when trading its securities[139]

Financial Performance - The company's revenue for the first half of 2023 was approximately RMB 839.88 million, a decrease of 25.4% compared to RMB 1,125.84 million in the same period of 2022[13]. - The net loss attributable to shareholders for the period was approximately RMB 578.83 million, an increase of 221.7% from a net loss of RMB 179.92 million in the previous year[13]. - Overall revenue for the first half of 2023 was RMB 83.988 million, down from RMB 112.584 million in the same period of 2022, representing a decrease of 25.5%[24]. - The company reported a pre-tax loss of RMB 578.5 million, an increase of 224.5% compared to RMB 178.3 million in the same period of 2022[42]. - The net loss for the first half of 2023 was RMB 578.8 million, widening by 221.7% from RMB 179.9 million in the first half of 2022, with a net loss margin of 689.2%[44]. - The company reported a significant risk of judicial disposal of subsidiary equity due to ongoing litigation, with a total execution amount of approximately RMB 195 million[88]. - La Chapelle reported a net loss of 578,832 thousand RMB for the first half of 2023, marking five consecutive years of losses[151]. Assets and Liabilities - The total assets as of June 30, 2023, were RMB 713.87 million, down 38.3% from RMB 1,156.19 million at the end of 2022[13]. - The company's total liabilities to total assets ratio surged to 541.7% as of June 30, 2023, compared to 322.6% at the end of 2022[48]. - As of June 30, 2023, the equity attributable to shareholders of the parent company was RMB -3,071.0 million, worsening from RMB -2,505.8 million at the end of 2022[49]. - Total liabilities increased to RMB 3,867,261 thousand, up from RMB 3,729,400 thousand, representing a growth of 3.7%[96]. - Current liabilities totaled RMB 3,344,577 thousand, compared to RMB 3,227,835 thousand at the beginning of the period, reflecting an increase of 3.6%[96]. - Non-current liabilities rose to RMB 522,684 thousand from RMB 501,565 thousand, marking a 4.3% increase[96]. Operational Changes - The number of operational stores decreased to 200 as of June 30, 2023, representing a reduction of 8.3% from 218 stores at the end of 2022[19]. - The company has seen a net decrease of 18 retail outlets in the first half of 2023, with significant closures in brands like Puella and 7 Modifier[62]. - The number of retail outlets in first-tier cities decreased from 35 (16.1%) to 29 (14.5%), while second-tier cities saw a drop from 97 (44.5%) to 77 (38.5%)[58]. Revenue Streams - Online platform revenue saw a drastic decline of 68.9%, dropping to RMB 6.38 million from RMB 0.08 million in the previous year[20]. - The company's counter sales revenue decreased from RMB 29.7 million in the first half of 2022 to RMB 22.3 million in the first half of 2023, a decline of 25.0%[22]. - Franchise and joint venture revenue fell from RMB 11.6 million in the first half of 2022 to RMB 7.4 million in the first half of 2023, a decrease of 36.2%[22]. - The brand comprehensive service business revenue significantly increased to approximately RMB 24.6 million in the first half of 2023, compared to the previous year's RMB 13.8 million[22]. - The revenue from the men's brand segment increased by 81.29% year-on-year, benefiting from the expansion of retail outlets and optimization of product structure[29]. Cost Management - Operating costs decreased by 36.8% from RMB 33.1 million in the first half of 2022 to RMB 20.9 million in the first half of 2023[32]. - Sales expenses increased to RMB 50.6 million in the first half of 2023, accounting for 60.3% of revenue, up from 38.6% in the same period of 2022[35]. - The company is implementing comprehensive budget management and cost control measures to ensure stable operational cash flow, emphasizing "cost reduction and efficiency enhancement" strategies[69]. Bankruptcy and Legal Issues - The company faced significant losses due to the bankruptcy proceedings of subsidiaries, resulting in a loss of control and an estimated loss of RMB 464 million[17]. - The company filed for bankruptcy reorganization on August 29, 2023, and was approved by the Shanghai Third Intermediate People's Court on September 12, 2023[89]. - The company is currently undergoing bankruptcy liquidation and is cooperating with administrators to manage creditor claims and asset verification[152]. - The company is actively communicating with relevant courts and creditors to resolve issues related to frozen equity stakes in 11 subsidiaries, totaling approximately RMB 202 million[54]. Future Outlook - The management anticipates further recovery in the consumer market due to ongoing government policies aimed at boosting consumption and economic growth[16]. - The company plans to initiate bankruptcy restructuring to eliminate debt burdens and improve operational capabilities[64]. - The company aims to enhance online business capabilities and achieve scale breakthroughs through partnerships with distributors and channel partners[66]. - The company intends to strengthen budget management and cost control to improve profitability and stabilize cash flow[156]. Shareholder Information - The board does not recommend any interim dividend for the six months ended June 30, 2023, consistent with the previous year[78]. - As of June 30, 2023, major shareholders include Shanghai Qijin Enterprise Management Partnership with 85,200,000 shares (25.59%) and Haitong Securities Asset Management with 80,000,000 shares (24.03%) of the total issued shares[74][75]. Compliance and Governance - The company has not deviated from the corporate governance code as of June 30, 2023, except for the absence of insurance for directors against legal claims[81]. - The financial statements were approved by the board of directors on August 30, 2023[149]. - The company’s financial reporting adheres to the accounting standards set by the Ministry of Finance of China, ensuring compliance and accuracy in financial disclosures[150].

Financial Performance - In 2022, the company's revenue was RMB 197,841,000, a significant decline of 54% compared to RMB 430,128,000 in 2021[13] - The gross profit for 2022 was RMB 136,080,000, with a gross margin of 68.78%, up from 49.00% in 2021[13] - The operating loss for 2022 was RMB 942,023,000, resulting in an operating loss margin of 476.15%[13] - The company reported a net loss of RMB 1,073,774,000 for 2022, compared to a net loss of RMB 822,762,000 in 2021[13] - The company's operating loss for the year was RMB 942 million, representing a 30% increase in losses compared to the same period last year[33] - The pre-tax loss widened from RMB 835.7 million in 2021 to RMB 1,074.2 million in 2022, an increase of 28.5% primarily due to losses from a former subsidiary entering bankruptcy[58] - The net loss for 2022 was RMB 1,073.8 million, compared to a net loss of RMB 822.8 million in 2021, marking an increase of 30.5%[61] Assets and Liabilities - The total assets decreased to RMB 1,156,191,000 in 2022 from RMB 2,406,863,000 in 2021, indicating a decline of 52%[14] - The total liabilities were RMB 3,729,400,000 in 2022, slightly down from RMB 3,916,433,000 in 2021[14] - As of December 31, 2022, the company's current liabilities were RMB 3,227.8 million, down from RMB 3,486.5 million in 2021, with a debt-to-asset ratio of 322.6%[65] - The company's cash and cash equivalents as of December 31, 2022, were RMB 36.1 million, down from RMB 61.4 million in 2021, reflecting a net cash decrease of RMB 25.3 million for the year[64] Bankruptcy and Restructuring - The company is planning to initiate bankruptcy reorganization to alleviate its debt burden and has already been ordered into bankruptcy liquidation by the court[16] - The company aims to enhance its core business scale and sustainable profitability through restructuring and collaboration with creditors and potential investors[16] - The company is currently undergoing bankruptcy reorganization to eliminate debt burdens and improve operational capabilities and conditions[93] - The company has been ordered by the court to enter bankruptcy liquidation, and is cooperating with the administrator to conduct creditor claims and asset verification[94] - The company aims to optimize its asset-liability structure through the restructuring of subsidiaries that hold core properties, which are currently in bankruptcy proceedings[95] Revenue Decline Factors - The company reported a revenue of approximately RMB 200 million for the reporting period, a decrease of about 54% year-on-year due to the impact of COVID-19 on offline store numbers and customer acquisition[29] - The decline in revenue was primarily due to a reduction in customer acquisition at offline stores caused by COVID-19, with sales dropping over 70% during the peak of the pandemic from March to May 2022[34] - The number of operational stores decreased from 300 at the end of 2021 to 218 by December 31, 2022, representing a decline of 27.3%[34] - The company's subsidiaries, Shanghai Weile and Shanghai Leou, entered bankruptcy proceedings, leading to a loss of control and a deconsolidated loss of approximately RMB 596 million[29] Cost Management and Efficiency - The company has streamlined its internal management system and organizational structure to establish a more efficient operational management system[16] - The operating costs decreased from RMB 219.4 million in 2021 to RMB 61.8 million in 2022, representing a year-on-year decline of 71.8% due to the corresponding decrease in revenue[48] - Selling expenses for 2022 were RMB 81.2 million, down from RMB 215.4 million in 2021, with the selling expense ratio to revenue decreasing from 50.1% to 41.0%[52] - The company intends to strengthen budget management and cost control to ensure stable operational funding[22] - The company is committed to enhancing internal control management and operational standards to improve profitability and operational efficiency[25] Future Plans and Strategies - The company aims to optimize its asset-liability structure by restructuring its equity and managing subsidiaries effectively[18] - The company plans to enhance its online business by expanding partnerships with quality distributors and channel partners, transitioning to a light-asset, high-margin business model[20] - The company will focus on improving offline management capabilities and profitability by concentrating on regions with strong profit potential[21] - The company plans to focus on enhancing online sales and improving inventory management strategies moving forward[42] Employee and Operational Changes - The total number of employees decreased from 519 as of December 31, 2021, to 421 as of December 31, 2022, indicating a reduction of approximately 18.9%[76] - The company’s retail network saw a net closure of 82 stores in 2022, compared to a net closure of 659 stores in 2021[89] Legal and Compliance Issues - The company is involved in several significant lawsuits, including a dispute over a construction contract with Shanghai Construction Group, which has led to enforcement proceedings for a payment of RMB 5 million[181] - The company is also facing litigation related to a loan agreement dispute with China Everbright Bank, which is currently in the execution phase[184] - The company has complied with relevant laws and regulations that significantly impact its business operations[187] Audit and Governance - The Audit Committee reviewed the company's performance for the year ended December 31, 2022, and discussed accounting policies and risk management with management[191] - The audit fee paid to Dahua Accounting Firm for the fiscal year ending December 31, 2022, was RMB 228 million (excluding tax)[197] - Dahua Accounting Firm issued an audit report with a disclaimer of opinion for the 2022 financial statements, reflecting the company's actual situation and risks faced[200]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完 整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生或因倚賴該等內容 而引致之任何損失承擔任何責任。 新 疆 拉 夏 貝 爾 服 飾 股 份 有 限 公 司 Xinjiang La Chapelle Fashion Co., Ltd. （破產清算中） （前稱「Shanghai La Chapelle Fashion Co., Ltd. （上海拉夏貝爾服飾股份有限公司）」） （在中華人民共和國註冊成立的股份有限公司） （股份代號：06116） 截至二零二二年十二月三十一日止年度 全年業績公告 新疆拉夏貝爾服飾股份有限公司（「本公司」或「公司」）董事（「董事」）會（「董事會」）欣然宣佈下列本公司 及其附屬公司（「本集團」）截至2022年12月31日止年度（「本報告期間」）連同截至2021年12月31日止年 度的比較數字： 截至十二月三十一日止年度 增加╱ 二零二二年 二零二一年 （減少） 人民幣千元 人民幣千元 % 財務摘要 ...

Financial Performance - The company reported a revenue of approximately RMB 151 million for the reporting period, a decline compared to the same period last year, primarily due to the impact of COVID-19 on offline store numbers and customer acquisition, with sales dropping over 70% during the peak of the pandemic from March to May[12] - The net loss attributable to shareholders for the reporting period was approximately RMB 644 million, mainly due to credit losses from subsidiaries undergoing bankruptcy proceedings, which accounted for about RMB 330 million[12] - The company recorded a decrease in operating income of approximately 58.6% year-on-year, while operating costs, selling expenses, and administrative expenses collectively decreased by about 57.04%[12] - Total operating revenue for the period was RMB 151,081 thousand, a decrease of 58.56% compared to RMB 364,590 thousand in the same period last year[26] - The company reported a net loss attributable to shareholders of RMB -643,694 thousand, worsening from RMB -288,625 thousand in the previous year[26] - The company’s cash flow from operating activities was RMB -5,422 thousand, a significant decline from RMB 41,176 thousand in the same period last year[26] - The company reported a significant increase in investment income from joint ventures and associates, amounting to RMB 151,731 thousand for the first nine months of 2022, compared to RMB 36,073 thousand in the same period of 2021[110] - The total comprehensive loss attributable to the parent company for the first nine months of 2022 was RMB 645,683 thousand, compared to RMB 285,031 thousand in the same period of 2021, indicating a worsening of approximately 126.5%[112] Assets and Liabilities - The total assets as of September 30, 2022, were RMB 1,478,397 thousand, down 38.58% from RMB 2,406,863 thousand at the end of the previous year[24] - The company’s asset-liability ratio reached 244.90%, up from 162.72% at the end of the previous year[24] - The company’s total liabilities amounted to RMB 3.62 billion as of September 30, 2022, a decrease from RMB 3.92 billion as of December 31, 2021[103] - The company reported a total asset value of RMB 1.48 billion as of September 30, 2022, down from RMB 2.41 billion as of December 31, 2021[103] - The company’s total current liabilities were RMB 3,038,612 thousand, slightly up from RMB 3,011,118 thousand, reflecting an increase of about 0.9%[105] Operational Challenges - The company faced high overdue debts, resulting in interest, penalties, and litigation costs totaling approximately RMB 180 million[12] - The company is currently facing challenges due to the delay in the completion of its Tianjin logistics base construction project, leading to a provision of approximately RMB 44 million for expected liabilities[12] - The number of physical stores decreased from 300 to 202, with 44 new openings and 142 closures during the reporting period[20] - The online sales channel saw a drastic revenue drop of 99.01%, but the gross profit margin remained at 100%[18] Shareholder Information - The company has 6,944 ordinary shareholders, with the total share capital remaining at 547,671,642 shares[41] - The top ten domestic shareholders hold a combined 39.28% of the total shares, with the largest shareholder holding 15.56%[47] - The largest shareholder, Shanghai Wensheng and Shanghai Qijin, collectively hold 106,800,000 shares, accounting for 19.5% of the total share capital[48] - The company has repurchased a total of 3,573,200 A-shares, representing 0.65% of the total share capital and 1.07% of the domestic shares[50] Legal and Financial Disputes - The company is involved in multiple legal disputes, including a construction contract dispute requiring payment of approximately RMB 163 million to Shanghai Second Construction Group[85] - The company faces a financial loan dispute with Citic Bank, with a judgment requiring repayment of approximately RMB 83.73 million[87] - The company has a pending case with Xinjiang Hengding International Supply Chain Technology Co., with a judgment requiring payment of approximately RMB 5.87 billion[88] - The company provided guarantees for a loan of up to RMB 436 million for its wholly-owned subsidiary Shanghai Weile, with an outstanding principal and interest amounting to approximately RMB 415 million as of the report date[89] - The company guaranteed a EUR 37.4 million acquisition loan for its former wholly-owned subsidiary LaCha Fashion I, with an outstanding amount (after considering exchange losses) of approximately RMB 374 million as of the report date[89] - As of the report date, the company had judicially frozen assets including real estate valued at approximately RMB 689 million and long-term equity interests totaling approximately RMB 982 million due to debt litigation[93] - The company has been listed as a dishonest executor due to significant overdue debts and ongoing litigation, with major bank accounts and subsidiary equity frozen[96] Management and Governance - The company emphasizes the need for shareholders and potential investors to act prudently when trading its securities[141] - The board of directors is led by Chairman Zhao Jinwen and includes executive directors Zhao Jinwen and Zhang Ying[141] - The company has independent non-executive directors including Xing Jiangze, Zhou Yuhua, and Zhu Xiaozhe[141] - The company is focused on maintaining transparency and governance in its operations[141] - The board consists of both executive and non-executive members to ensure balanced decision-making[141] - The company is committed to providing accurate information to its stakeholders[141] - The financial performance and strategic direction will be closely monitored by the board[141] - The company is positioned for future growth and expansion in the market[141]

Financial Performance - For the six months ended June 30, 2022, the company's revenue was RMB 112.6 million, a decrease of 59.5% compared to RMB 277.9 million in the same period of 2021[11]. - The gross profit for the same period was RMB 79.5 million, down 50.6% from RMB 161.0 million year-on-year[11]. - The net loss for the first half of 2022 was RMB 179.9 million, a reduction of 23.7% compared to RMB 235.8 million in the previous year[11]. - The company's total revenue for the first half of 2022 was RMB 112,584 thousand, a decrease of 59.5% compared to RMB 277,887 thousand in the same period of 2021[20]. - The revenue from counters decreased by 53.6% from RMB 64.1 million in the first half of 2021 to RMB 29.7 million in the first half of 2022[23]. - The revenue from specialty stores dropped by 70.3%, from RMB 54.5 million in the first half of 2021 to RMB 16.2 million in the first half of 2022[23]. - The revenue from franchise/affiliated stores fell by 50.3%, from RMB 23.4 million in the first half of 2021 to RMB 11.6 million in the first half of 2022[23]. - The gross profit margin for the total revenue was 70.6% in the first half of 2022, compared to 12.7% in the same period of 2021[20]. - The overall gross margin increased from 57.9% in the first half of 2021 to 70.6% in the first half of 2022, primarily due to a higher proportion of high-aged inventory sold above net book value[41]. - The company's pre-tax loss narrowed from RMB 242.8 million in the first half of 2021 to RMB 178.3 million in the first half of 2022, a reduction of 26.6%[41]. Operational Changes - The number of operational stores decreased by 50, from 300 at the end of 2021 to 250 as of June 30, 2022, representing a decline of 16.7%[17]. - The company experienced a net closure of 50 retail outlets in the first half of 2022, with La Chapelle accounting for 50.0% of the closures[65]. - The total number of retail outlets in mainland China as of June 30, 2022, was 250, with 40.0% being counters, 12.4% specialty stores, and 47.6% franchise/partnership outlets[60]. - The retail network distribution by city tier shows that first-tier cities accounted for 9.2%, second-tier cities 42.8%, third-tier cities 19.6%, and other cities 28.4%[58]. Debt and Liabilities - The company faced high overdue debts, resulting in interest and penalty costs totaling approximately RMB 116 million during the reporting period[14]. - As of June 30, 2022, the company's current liabilities were RMB 3,522.4 million, with a debt-to-asset ratio of 174.3%[48]. - The company reported a provision for estimated liabilities of RMB 365.2 million due to potential joint repayment obligations related to a loan dispute[55]. - Total liabilities increased from RMB 3,916,433 thousand to RMB 3,963,280 thousand, an increase of approximately 1.2%[111]. - The total liabilities to equity ratio as of June 30, 2022, was approximately 6.16, indicating a high level of leverage[123]. Cash Flow and Liquidity - Cash generated from operating activities in the first half of 2022 was a net inflow of RMB 6.5 million, down from RMB 20.9 million in the same period last year[46]. - The company had cash and cash equivalents totaling RMB 64.0 million as of June 30, 2022, an increase from RMB 36.8 million at the end of 2021[47]. - The average inventory turnover days increased to 240 days in the first half of 2022 from 499 days in the same period of 2021[46]. - The company reported a significant reduction in sales expenses, which were RMB 3,156 thousand, down from RMB 35,254 thousand in 2021, a decrease of approximately 91.0%[132]. - The company recorded a credit impairment loss of RMB (15,487) thousand, an improvement from RMB (22,765) thousand in the same period of 2021[126]. Strategic Initiatives - The company is actively negotiating debt restructuring with creditors, which has positively impacted net profit by approximately RMB 11 million[14]. - The company plans to address historical debt issues and improve its operational capacity through various measures, including debt restructuring and negotiations with creditors[69]. - The company aims to implement a brand repositioning strategy, focusing on La Chapelle, USHGEE, and "New Puella" to enhance brand vision and value propositions[70]. - The company plans to enhance its online channel strategy through "brand empowerment + operational services + deep participation," focusing on high-margin and fast-turnover business models[73]. - The company is committed to transforming its business model to achieve both quantitative and qualitative changes, aiming for a return to healthy growth[68]. Corporate Governance - The company has maintained high standards of corporate governance and complied with the Hong Kong Stock Exchange listing rules[91]. - The audit committee reviewed the unaudited interim results for the six months ended June 30, 2022, discussing accounting standards and internal controls with management[96]. - The company confirmed compliance with the standard code for securities trading by directors and supervisors during the review period[92]. - There were changes in the board of directors, with Zhang Xin resigning and Zhao Jinwen being appointed as an executive director[94]. Legal and Regulatory Issues - The company faced bankruptcy proceedings for its wholly-owned subsidiary Shanghai Weile Clothing Co., Ltd., initiated by Jiangsu Haiqi International Co., Ltd. on July 11, 2022[97]. - The company is actively communicating with relevant courts and creditors to resolve the frozen equity issues and maintain operational stability[104]. - The company received a civil ruling from the Shanghai Third Intermediate People's Court regarding the bankruptcy liquidation application against Shanghai Weile on July 11, 2022[97]. - The company’s subsidiary Shanghai Leou Clothing Co., Ltd. is also facing bankruptcy liquidation proceedings initiated by Nantong Bosi Textile Technology Co., Ltd.[100].

Litigation and Legal Matters - The company reported a pending litigation amount of RMB 465,588 thousand as of December 31, 2021, with RMB 17,124 thousand already adjudicated by the audit report date[5]. - The company has incurred an additional litigation amount of RMB 23,625 thousand from January 1, 2022, to the audit report date[5]. - The financial statements of the overseas subsidiary, Naf Naf SAS, are under judicial liquidation, with a reported claim amount of approximately €120 million and liquidated assets exceeding €10 million[11]. - The company has lost control over LaCha Fashion I due to its failure to repay loans, impacting the financial data available for auditing[3]. - The company is actively seeking to negotiate with creditors regarding the debt repayment arrangements and potential settlements for ongoing litigation[9]. - The audit firm, Deloitte, has expressed concerns over the inability to obtain sufficient audit evidence regarding the litigation and potential liabilities[5]. - The company has provided limited information from the judicial administrator of Naf Naf SAS, indicating low chances of recovering claims[11]. - The company is in discussions with major creditors about debt repayment arrangements for both adjudicated and pending litigation cases[9]. - The company has been advised by legal counsel regarding the ownership rights of the overseas subsidiary and the potential for recovering claims[11]. - The company is cooperating with the audit firm to ensure comprehensive communication regarding the litigation cases and financial implications[13]. - The audit firm expressed a qualified opinion on the financial statements of the overseas subsidiary Naf Naf SAS for the year 2020 due to insufficient audit evidence[14]. - The company lost control over La Cha Fashion I and its subsidiaries, including Naf Naf SAS, on February 25, 2020, leading to significant impacts on the financial data for 2020[22]. - The company has been unable to reach a formal debt settlement or litigation resolution with creditor Haitong International, which remains in litigation as of the 2021 earnings announcement[17]. - The audit firm was unable to obtain sufficient audit evidence regarding the financial statements of Naf Naf SAS due to non-cooperation from its former management and judicial liquidators[16]. - The company faces numerous high-value litigation disputes, and the inability to estimate potential losses due to cash flow constraints and uncontrollable factors affecting litigation outcomes[20]. - The audit committee confirmed that the qualified opinion reflects the company's actual situation and complies with Chinese auditing standards[28]. - The company has established a cumulative litigation statistics ledger to organize and verify all unresolved, adjudicated but unexecuted, and executed litigation cases[24]. - The audit firm could not estimate the company's obligations related to ongoing litigation due to the continuous accumulation of new lawsuits and increasing total amounts[20]. - The management has engaged in ongoing discussions with the audit firm regarding the qualified opinion while preparing the consolidated financial statements for 2021[21]. - The audit committee reviewed and agreed with the management's stance on the qualified opinion based on the audit firm's independent assessment[26]. - The company reported a total claim amount of approximately €120 million related to Naf Naf SAS, with over €10 million in assets already liquidated as of September 2021[35]. - LaCha Fashion I has filed a claim of approximately €12.36 million against Naf Naf SAS, but the likelihood of compensation is considered low due to the limited available assets[35]. - The company aims to resolve its obligations related to LaCha Fashion I and Naf Naf SAS through ongoing negotiations and potential settlements, with a court ruling expected in 2022[53]. - The company has reported an increase in the total amount involved in ongoing litigation cases, reflecting the complexities of its financial obligations and legal challenges[49]. - The company is actively negotiating with creditors and financial institutions to seek debt concessions or installment payment arrangements to avoid new litigation uncertainties[56]. - The company aims to eliminate audit qualifications by the end of 2022, contingent on resolving litigation risks and debt issues[57]. - If Naf Naf SAS completes judicial liquidation in 2022, it may help eliminate audit qualifications related to overseas subsidiaries[57]. - The company has reached agreements with some creditors regarding debt concessions or installment payment arrangements[56]. - The measures taken by the company to address previous years' non-standard audit opinions are expected to alleviate concerns regarding audit qualifications[59]. Financial Performance and Management - The company achieved rental income of RMB 51.92 million in 2021, a significant increase of nearly 227% compared to RMB 15.80 million in 2020[41]. - The company realized debt restructuring gains of approximately RMB 103 million through inventory exchanges with suppliers in 2021[43]. - The company generated approximately RMB 230 million in revenue from inventory clearance, with online channels contributing over RMB 21 million[43]. - The number of unresolved litigation cases decreased by over 60% from 83 cases at the end of 2020 to 30 cases by April 2022[40]. - The company plans to continue negotiations with Haitong International to reach a settlement regarding outstanding debts[38]. - The company has established a dedicated litigation and debt clearance team to address ongoing legal matters[43]. - The company is actively seeking external financing to alleviate liquidity pressure and support its main business operations[41]. - The company has established a statistical ledger for litigation cases to track specific information, including case numbers and amounts involved, with a total of 83 pending lawsuits as of December 31, 2020, involving RMB 7.82 billion[46]. - As of March 31, 2022, the number of pending lawsuits increased to 30, with involved amounts decreasing to RMB 4.66 billion, while the number of executed or resolved lawsuits was 269, involving RMB 4.58 billion[46]. - The company faced challenges in obtaining complete audit evidence due to ongoing judicial liquidation processes, impacting its ability to meet debt repayment arrangements with Haitong International[47]. - The company reported a significant reduction in accounts payable from RMB 11.346 billion on December 31, 2020, to RMB 8.265 billion on December 31, 2021, representing a year-on-year decrease of approximately RMB 3.081 billion, or 27%[54]. - The company has engaged third-party legal professionals to assess litigation cases and adjust financial liabilities accordingly, but cash flow uncertainties may lead to additional losses[49]. - The number of unresolved lawsuits decreased significantly compared to the end of 2020, indicating progress in managing litigation risks[54]. - The company has limited liquidity resources and declining financing capabilities, restricting its ability to raise new funds to address outstanding judgment debts[50]. - The company is actively pursuing communication with former management of Naf Naf SAS to obtain necessary financial information for audit purposes, although success is uncertain[52].

Financial Performance - The company's operating revenue for the first quarter was RMB 71,917,000, representing a decrease of 54.42% compared to the same period last year[6]. - The net profit attributable to shareholders of the listed company was a loss of RMB 87,947,000, with a net profit excluding non-recurring gains and losses of a loss of RMB 74,797,000[6]. - The net cash flow from operating activities was negative RMB 16,179,000, reflecting a decline of 163.83% year-on-year[6]. - The total operating revenue for Q1 2022 was RMB 71,917 thousand, a decrease of 54.4% compared to RMB 157,775 thousand in Q1 2021[45]. - The company reported a net loss of RMB 87,395 thousand for Q1 2022, compared to a net loss of RMB 68,152 thousand in Q1 2021[45]. - The total comprehensive income attributable to the parent company for Q1 2022 was -87,947 thousand RMB, compared to -70,161 thousand RMB in Q1 2021, reflecting a decrease of about 25.4%[47]. - Basic and diluted earnings per share for Q1 2022 were both -0.16 RMB, compared to -0.13 RMB in Q1 2021, representing a decline of approximately 23.1%[47]. Assets and Liabilities - Total assets at the end of the reporting period were RMB 2,345,366,000, down 2.56% from the end of the previous year[6]. - The total liabilities as of March 31, 2022, were RMB 3,942,405 thousand, slightly up from RMB 3,916,433 thousand as of December 31, 2021[40]. - The total equity attributable to shareholders was RMB -1,519,243 thousand as of March 31, 2022, worsening from RMB -1,431,296 thousand as of December 31, 2021[41]. Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 12,044[20]. - The largest shareholder, Shanghai Qijin Enterprise Management Partnership, holds 85,200,000 shares, accounting for 15.56% of the total shares[21]. - Shanghai Wensheng Asset Management Co., Ltd. indirectly holds 100% of Shanghai Qijin, with a combined total of 106,800,000 shares, representing 19.5% of the total share capital[24]. - The company has repurchased a total of 3,573,200 A-shares, which is 0.65% of the total share capital and 1.07% of the A-share capital[29]. Operational Challenges - The company's revenue decline was primarily due to a reduction in the number of operating stores compared to the same period last year[14]. - The financial expenses increased by 290.13%, attributed to overdue and delayed interest from ongoing and unresolved litigation cases[14]. - There is a significant risk of bankruptcy liquidation, with creditors having previously applied for bankruptcy proceedings against the company[32]. - The company is involved in ongoing litigation with a total amount of approximately RMB 1.975 billion for settled but not fully executed cases and RMB 466 million for unresolved cases[33]. - The company has identified RMB 9.5 million in funds occupied by its former controlling shareholder and is pursuing legal action to recover these funds[34]. Cash Flow Analysis - Cash inflows from operating activities in Q1 2022 totaled 56,421 thousand RMB, down 60.7% from 143,609 thousand RMB in Q1 2021[50]. - Cash outflows from operating activities in Q1 2022 were 72,600 thousand RMB, compared to 118,262 thousand RMB in Q1 2021, a decrease of about 38.6%[50]. - The ending cash and cash equivalents balance for Q1 2022 was 43,438 thousand RMB, compared to 32,298 thousand RMB in Q1 2021, showing an increase of approximately 34.6%[56]. - The company reported cash outflows from financing activities of 15,243 thousand RMB in Q1 2021, with no cash inflows recorded for Q1 2022[54]. - The company did not report any cash inflows from investment activities in Q1 2022, compared to 218 thousand RMB in Q1 2021[50].

Financial Performance - For the six months ended June 30, 2021, the company reported revenue of RMB 277.9 million, a decrease of 79.6% compared to RMB 1,362.2 million in the same period last year[11]. - The gross profit for the same period was RMB 161.0 million, down 75.5% from RMB 656.1 million year-on-year[11]. - The net loss attributable to shareholders was approximately RMB 235.8 million, a reduction of 67.4% compared to RMB 723.7 million in the previous year[11]. - The group's revenue for the first half of 2021 decreased by 79.6% year-on-year, from RMB 1,362.2 million in the first half of 2020 to RMB 277.9 million[21]. - The group reported a net loss of RMB 235.8 million for the first half of 2021, a 67.4% reduction compared to a net loss of RMB 723.7 million in the first half of 2020[43]. - The company's operating revenue for the first half of 2021 was RMB 277,887 thousand, a significant decrease of 79.6% compared to RMB 1,362,227 thousand in the same period last year[116]. - The net profit for the first half of 2021 was RMB (235,841) thousand, compared to RMB (723,667) thousand in the same period last year, indicating a reduction in losses[116]. - The total comprehensive income for the first half of 2021 showed a decrease of RMB 236,947,000, resulting in a total comprehensive income of RMB (715,669,000) attributable to shareholders[145]. Assets and Liabilities - The company's total assets as of June 30, 2021, were RMB 2,972.3 million, a decrease of 14.7% from RMB 3,485.8 million at the end of 2020[12]. - Total liabilities decreased to RMB 3,166,271 thousand, down 8.0% from RMB 3,443,388 thousand in the previous period[111]. - Total assets decreased to RMB 2,972,327 thousand from RMB 3,485,780 thousand, a decline of approximately 14.7%[101]. - Current liabilities totaled RMB 3,491,683 thousand, down from RMB 3,763,519 thousand, representing a decrease of approximately 7.2%[103]. - Total liabilities exceeded total assets by RMB 922,489 thousand as of June 30, 2021, raising significant doubts about the company's ability to continue as a going concern[182]. Operational Challenges - The company faced significant challenges due to a reduction in the number of operating stores and a shift to an authorized business model for online operations[16]. - The number of operational stores decreased by 55.5% year-on-year, from 959 at the end of 2020 to 427 as of June 30, 2021[21]. - The company is involved in 24 litigation cases affecting four properties, with a total book value of approximately RMB 1.714 billion as of July 31, 2021[96]. - The company faced significant liquidity pressure, with outstanding litigation amounts totaling approximately RMB 2 billion and pending litigation amounts of about RMB 600 million[65]. Cost Management and Efficiency - The group's operating costs decreased from RMB 706.1 million in the first half of 2020 to RMB 116.9 million in the first half of 2021, a reduction of 83.4%[41]. - Sales expenses for the first half of 2021 were RMB 170.6 million, significantly down from RMB 1,026.3 million in the first half of 2020, with the sales expense ratio decreasing from 75.3% to 61.4%[43]. - The company is focusing on transitioning to a light-asset, high-margin, and fast-turnover business model[182]. - The company aims to divest inefficient property assets to improve liquidity and asset structure, targeting maximum premium on sales[183]. Strategic Initiatives - The company plans to continue its transformation towards a higher-margin licensing business model to improve financial performance[29]. - The company is actively negotiating with creditors for debt discounts and installment payment terms to alleviate financial uncertainty[66]. - The company aims to actively seek new investors and external financing to restore and enhance its credit and financing capabilities[186]. - The company plans to enhance the management of existing stores to improve operational efficiency and profitability[182]. Shareholder and Governance Changes - The largest shareholder, Shanghai Qijin, acquired 106.8 million shares, representing 19.50% of the total issued share capital, resulting in a change of actual control[69]. - The company has appointed new directors and supervisors as of June 10, 2021, to enhance governance[90]. - The company’s major shareholders have changed, with Shanghai Hexia no longer being a major shareholder since April 21, 2021[85]. - The company aims to maintain high standards of corporate governance to protect shareholder interests and enhance company value[90]. Cash Flow and Investment Activities - Net cash generated from operating activities was RMB 20.9 million in the first half of 2021, down from RMB 181.1 million in the same period of 2020[47]. - The net cash outflow from financing activities was RMB 18.9 million in the first half of 2021, an improvement from a net outflow of RMB 211.9 million in the same period of 2020[50]. - Cash inflow from investment activities was RMB 17,338 thousand, an increase from RMB 3,687 thousand in the previous period[127]. - The company reported a significant reduction in cash flow from operating activities, indicating potential challenges in revenue generation[127]. Inventory and Sales Performance - Revenue from counters dropped by 86.5% to RMB 64.1 million, while specialty store revenue fell by 88.1% to RMB 54.5 million[23]. - The revenue from women's clothing brands decreased by 79.2%, while men's clothing brands saw a decline of 60.5%[32]. - The average inventory turnover days increased to 416 days in the first half of 2021, up from 336 days in the same period of 2020, indicating a decline in inventory turnover speed[50]. - The company is focusing on reducing inventory through collaboration with e-commerce platforms, effectively lowering old inventory levels[68].