Core Viewpoint - La Chapelle has successfully entered the execution phase of its restructuring plan, approved by the Shanghai Third Intermediate People's Court, marking a significant step towards overcoming its financial difficulties and market challenges [1] Group 1: Restructuring Progress - In April 2023, La Chapelle's restructuring plan draft received high approval from creditors and investors, indicating strong support from various stakeholders [1] - The company officially entered the restructuring process in September 2023 and began recruiting restructuring investors [1] - In July 2024, La Chapelle signed a restructuring investment agreement with Hangzhou Guangsui Jin Investment Holding Co., Ltd. and Shanghai Dongfang Securities Innovation Investment Co., Ltd. [1] Group 2: Financial Support - Guangsui Jin Investment will provide 220 million yuan in restructuring investment to help La Chapelle repay debts [1] - Dongfang Innovation is expected to offer 199 million yuan in interest-free liquidity support to enhance the company's working capital [1] Group 3: Future Directions - The restructuring plan focuses on several key areas: executing the plan under management supervision, resolving historical debts, and enhancing profitability [2] - The company aims to divest inefficient assets, optimize its equity structure, and dispose of subsidiaries with no substantial business [2] - Strengthening core brand development and implementing tailored strategies for each brand are also priorities [2] - La Chapelle plans to enhance business control for sustainable development and improve its credit system to boost financing capabilities [2]

Core Viewpoint - La Chapelle, known as "China's version of ZARA," has announced its delisting from the Hong Kong Stock Exchange after previously being delisted from the A-share market in 2022, marking a significant decline in its stock performance over the years [1][2]. Group 1: Company History and Performance - La Chapelle was the first clothing company in China to be listed on both A-shares and H-shares, with its establishment dating back to 1998 and its Hong Kong listing occurring in 2014 [1]. - The company experienced a peak stock price of 14.426 HKD during its H-share listing, but it plummeted by 97.52% to just 0.25 HKD before delisting [1]. - In 2017, La Chapelle's A-share price reached a high of 31.42 CNY shortly after its listing, but it began to face continuous declines starting in 2019 [1][2]. Group 2: Financial Challenges - La Chapelle's A-share stock was terminated on April 22, 2022, with a final trading price of 0.59 CNY [2]. - The company reported a net loss of 21.66 billion CNY in 2019, attributed to the closure of unprofitable stores and increased operational costs [3]. - In the first half of 2024, La Chapelle's revenue decreased by 17.4% to 6.935 million CNY, with a net loss of 4.04 million CNY, primarily due to a reduction in the number of operational stores [4]. Group 3: Strategic Decisions - In 2015, La Chapelle acquired a 54.05% stake in Hangzhou Anse E-commerce Co., Ltd. for 200 million CNY to enhance its online sales capabilities [2]. - The company sold its stake in Hangzhou Anse in 2019 for 200 million CNY as part of a strategic adjustment to improve its financial position [3][4]. - La Chapelle attempted to auction off its industrial property and equipment in January 2024, with an estimated value of 1.35 billion CNY, but the auction ended without any bids [4].

Financial Performance - For the six months ended June 30, 2024, the company reported revenue of RMB 69,354,000, a decrease of 17.4% compared to RMB 83,988,000 in the same period of 2023[6]. - The gross profit for the same period was RMB 53,498,000, down 15.2% from RMB 63,063,000 year-on-year[6]. - The net loss attributable to shareholders was RMB 40,402,000, a significant reduction of 93.0% compared to a net loss of RMB 578,832,000 in the previous year[6]. - Total revenue for the first half of 2024 was RMB 693.54 million, down from RMB 839.88 million in the same period of 2023, reflecting a 2.0% decrease[12]. - The total comprehensive income for the first half of 2024 was a loss of RMB 40,402,000, compared to a loss of RMB 578,832,000 in the same period of 2023, showing significant improvement[60]. - The net profit attributable to the parent company for the first half of 2024 was a loss of RMB 13,341,000, improving from a loss of RMB 565,165,000 in the same period of 2023[60]. Assets and Liabilities - As of June 30, 2024, the total assets of the company were RMB 555,880,000, a decrease of 7.0% from RMB 597,849,000 at the end of 2023[6]. - The current liabilities as of June 30, 2024, were RMB 3,430.4 million, slightly down from RMB 3,436.2 million as of December 31, 2023[18]. - Total liabilities slightly decreased from RMB 3,922,857,000 to RMB 3,921,290,000, a change of approximately 0.04%[54]. - The total equity attributable to shareholders decreased from RMB (3,240,854,000) to RMB (3,254,195,000), reflecting a decline of approximately 0.4%[55]. - The bank borrowings amount to RMB 1,077.6 million as of June 30, 2024, unchanged from RMB 1,077.6 million as of December 31, 2023, primarily consisting of loans due within one year[20]. Operational Changes - The number of operational outlets decreased by 28.6%, from 217 at the end of 2023 to 155 as of June 30, 2024[9]. - The number of retail outlets in first-tier cities dropped from 31 to 19, a decrease of 38.7%[26]. - The number of retail outlets in second-tier cities decreased from 73 to 57, a decline of 21.9%[26]. - The number of retail outlets for the brand La Chapelle decreased by 34, accounting for 54.8% of the total net closures in the first half of 2024[29]. Revenue Segmentation - Revenue from the brand comprehensive services segment was RMB 30,185,000, accounting for 43.5% of total revenue[10]. - Revenue from specialty stores decreased from RMB 223 million in the first half of 2023 to RMB 123 million in the first half of 2024, a decline of 44.9%[11]. - Online revenue dropped significantly from RMB 64 million in the first half of 2023 to RMB 13 million in the first half of 2024, a decrease of 80.1%[11]. - Franchise and joint venture revenue increased from RMB 74 million in the first half of 2023 to RMB 119 million in the first half of 2024, an increase of 60.4%[11]. - Revenue from the La Chapelle brand accounted for 55.9% of total revenue in the first half of 2024, with a gross margin of 75.5%[12]. Cost Management - The group's operating costs decreased from RMB 209 million in the first half of 2023 to RMB 159 million in the first half of 2024, a reduction of 24.2%[17]. - The company's financial expenses for the first half of 2024 were RMB 37,810,000, down from RMB 47,057,000 in the same period of 2023, indicating a decrease of 19.5%[59]. - The company's sales expenses for the first half of 2024 were RMB 34,370,000, a decrease of 32% compared to RMB 50,613,000 in the same period of 2023[59]. Restructuring Efforts - The company is actively pursuing restructuring efforts to stabilize its core business and promote innovation[7]. - The company plans to actively promote restructuring efforts to alleviate historical debt burdens and improve operational capabilities[30]. - The restructuring investment agreement has been signed with investors, and a draft restructuring plan will be submitted for creditor approval[31]. - The company aims to divest inefficient assets to enhance asset quality post-restructuring[32]. Legal and Compliance Issues - The company has faced multiple legal disputes, including a loan contract dispute with Citic Bank, which has resulted in a first-instance judgment received on August 1, 2023[22]. - The company is involved in a rental contract dispute with a real estate development company, which has resulted in a retrial judgment[22]. - The company has 96 frozen bank accounts with a total frozen amount of approximately RMB 5.47 million as of June 30, 2024[24]. - The company is involved in 13 litigation cases affecting one property with a book value of approximately RMB 213 million, which is at risk of judicial auction[24]. Shareholder Information - As of June 30, 2024, major shareholders include Shanghai Qijin Enterprise Management Partnership with 85,200,000 shares, representing 25.59% of the total shares[38]. - The company does not recommend any dividend distribution for the six months ending June 30, 2024, consistent with the previous period[42]. Corporate Governance - The company has complied with the corporate governance code as per the Hong Kong Stock Exchange rules, except for the lack of insurance for directors against legal actions, which the board deemed not cost-effective[45]. - All directors and supervisors confirmed compliance with the company's securities trading policy for the six months ending June 30, 2024[46]. - The audit committee reviewed the unaudited interim results for the six months ending June 30, 2024, discussing accounting standards and internal controls with management[48]. Cash Flow and Liquidity - Cash and cash equivalents as of June 30, 2024, totaled RMB 31.4 million, down from RMB 41.6 million as of December 31, 2023[18]. - The average inventory turnover days increased to 187 days in the first half of 2024, compared to 133 days in the first half of 2023[18]. - Cash flow from operating activities showed a net outflow of RMB 8,312,000, compared to a smaller outflow of RMB 1,572,000 in the first half of 2023[62]. - The company did not report any cash inflows from financing activities, indicating a focus on internal cash management[63]. Accounting Policies - The accounting basis for the financial statements is based on actual transactions and events, following the relevant accounting standards[86]. - The company prepares consolidated financial statements based on its own and subsidiaries' financial reports, ensuring consistency in accounting policies and periods[104]. - The company recognizes revenue from contracts with sales return clauses by excluding expected returns from the recognized revenue[194]. - The company assesses whether it acts as a principal or agent in transactions based on control over the goods or services before transfer[196].

Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 69,354,000, a decrease of 17.4% compared to RMB 83,988,000 in the same period of 2023[1] - Gross profit for the same period was RMB 53,498,000, down 15.2% from RMB 63,063,000 year-on-year[1] - The operating loss improved significantly to RMB (62,555,000), representing an 87.8% reduction from RMB (510,898,000) in the previous year[1] - Net loss narrowed to RMB (40,402,000), a 93.0% improvement compared to RMB (578,832,000) in 2023[1] - Basic and diluted loss per share improved to RMB (0.02) from RMB (1.04) in the prior year, reflecting a 98.1% reduction in loss per share[1] - Total revenue for the six months ended June 30, 2024, was 69,354 million, a decrease from 83,988 million in the same period of 2023, representing a decline of approximately 17.5%[41] - The main business revenue was 64,136 million for the six months ended June 30, 2024, down from 73,904 million in 2023, indicating a decrease of about 13.2%[41] - The company reported a total impairment loss of (8,517) million for the six months ended June 30, 2024, compared to (4,976) million in 2023, indicating an increase in impairment losses[45] - The company recorded a loss of (13,500) million from equity method investments for the six months ended June 30, 2024, compared to a gain of 1,773 million in 2023[46] - The company’s total credit impairment loss for the six months ended June 30, 2024, was 1,642 million, significantly lower than 17,176 million in 2023, showing a decrease of approximately 90.5%[44] Asset and Liability Management - Total assets as of June 30, 2024, were RMB 555,880,000, a decrease of 7.0% from RMB 597,849,000 at the end of 2023[2] - As of June 30, 2024, the total liabilities amounted to RMB 3,921,290 thousand, slightly down from RMB 3,922,857 thousand as of December 31, 2023, indicating a decrease of 0.04%[7] - The total current liabilities as of June 30, 2024, were RMB 3,430,386 thousand, a slight decrease from RMB 3,436,244 thousand as of December 31, 2023, showing a reduction of 0.17%[7] - The company’s total liabilities and equity as of June 30, 2024, amounted to RMB 555,880 thousand, down from RMB 597,849 thousand as of December 31, 2023, reflecting a decrease of 7.03%[7] - The company’s total borrowings as of June 30, 2024, amounted to RMB 1,077,598 million, with an interest rate range of 4.55% to 7.00%[60] - The company reported a provision for estimated liabilities of RMB 484.7 million due to potential joint repayment responsibilities related to loan disputes[91] Cash Flow and Liquidity - The net cash flow from operating activities for the six months ended June 30, 2024, was negative RMB 8,312 thousand, compared to negative RMB 1,572 thousand for the same period in 2023, reflecting a worsening cash flow situation[8] - Cash received from sales of goods and services was RMB 63,370 thousand for the six months ended June 30, 2024, down 19.7% from RMB 78,946 thousand in the same period of 2023[8] - The company reported a total cash balance of RMB 36,839 thousand as of June 30, 2024, down from RMB 49,930 thousand as of December 31, 2023[50] - The company’s cash and cash equivalents included restricted cash of RMB 5,472 thousand as of June 30, 2024, down from RMB 8,288 thousand as of December 31, 2023[51] Inventory and Receivables - The company reported a decrease in inventory to RMB 31,568,000 from RMB 38,857,000, indicating better inventory management[5] - The total inventory balance as of June 30, 2024, was RMB 97,147 million, with a provision for inventory impairment of RMB 65,579 million[58] - The company made a provision for inventory impairment of RMB 8,517 million during the reporting period[59] - Accounts receivable as of June 30, 2024, amounted to RMB 1,578,602 thousand, with a provision for bad debts of 1,568,708 thousand, resulting in a net receivable of RMB 9,894 thousand[51] - The top five accounts receivable totaled RMB 1,456,817 thousand, representing 93% of the total accounts receivable balance[52] Operational Changes - As of June 30, 2024, the number of domestic operating outlets was 155, a net decrease of 62 outlets from 217 at the end of 2023, representing a decline of 28.6%[64] - The number of retail outlets categorized as specialty stores increased from 23 to 38, representing a growth of 65.2%[94] - The number of franchise/partner outlets decreased from 135 to 100, a decline of 25.9%[94] - The company plans to focus on restructuring efforts to alleviate historical debt burdens and improve operational capabilities, aiming for a return to positive growth[97] - The restructuring plan has been agreed upon with investors, and if approved by the court, it will enhance the company's asset-liability structure[98] Legal and Compliance Issues - A total of 96 bank accounts were frozen, with the frozen amount approximately RMB 5.47 million as of June 30, 2024[92] - The company is involved in 13 litigation cases affecting one property with a book value of approximately RMB 212 million as of June 30, 2024, which is at risk of judicial auction to repay debts[110] - The company signed a restructuring investment agreement with investors on July 24, 2024, following the approval of its restructuring plan by the Taicang People's Court[109] - The company is actively communicating with relevant courts and creditors to resolve the frozen equity issues and maintain operational stability[109] Future Outlook - The company aims to enhance business control measures to ensure long-term sustainable development, including establishing a partner directory and a negative list[101] - If the restructuring is successful, the company will work on restoring its credit system and enhancing financing capabilities through improved communication with financial institutions[102] - The company warns shareholders and potential investors to act cautiously when trading its securities due to ongoing uncertainties[114]

Financial Performance - Total revenue for 2023 was RMB 170,233,000, a decrease of 13.93% compared to RMB 197,841,000 in 2022[14] - Gross profit for 2023 was RMB 123,147,000, with a gross margin of 72.34%, up from 68.78% in 2022[14] - Operating loss for 2023 was RMB 575,432,000, improving from a loss of RMB 942,023,000 in 2022[14] - 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[32] - The company reported a decrease in operating loss by 38.9% to RMB 575.4 million in 2023[32] - The pre-tax loss narrowed to RMB 750.8 million in 2023 from RMB 1,074.2 million in 2022, a reduction of 30.1%[58] - The net loss for 2023 was RMB 753.3 million, compared to RMB 1,073.8 million in 2022, representing a 29.8% improvement[60] - The company incurred a provision for contingent liabilities of RMB 475.2 million due to potential joint repayment obligations related to loan disputes[74] - The company reported a negative distributable profit as of December 31, 2023, leading to a recommendation of no cash dividends or other forms of distribution for the fiscal year[127] Assets and Liabilities - Total assets decreased to RMB 597,849,000 in 2023 from RMB 1,156,191,000 in 2022[15] - Total liabilities increased to RMB 3,922,857,000 in 2023, compared to RMB 3,729,400,000 in 2022[15] - As of December 31, 2023, the company's current liabilities were RMB 3,436.2 million, up from RMB 3,227.8 million in 2022, with a debt-to-asset ratio of 656.2% compared to 322.6% in 2022[66] - The equity attributable to shareholders of the parent company was RMB -3,240.9 million as of December 31, 2023, compared to RMB -2,505.8 million in 2022[67] Restructuring and Operational Strategy - The company is actively pursuing restructuring to alleviate historical debt burdens and improve operational capabilities[18] - Plans to divest inefficient assets to enhance asset quality and optimize the group’s equity structure post-restructuring[20] - The restructuring plan draft will be submitted for creditor meeting approval, aiming for court endorsement[19] - The company aims to focus on its core business and gradually increase the scale and profitability of its main operations[19] - The company is committed to enhancing brand image and retail business efficiency through ongoing reforms[18] - The company is focusing on brand revitalization, product innovation, and channel optimization to return to a positive growth trajectory[29] - Efforts will be made to restore the credit system and improve financing capabilities post-restructuring[101] Revenue Streams and Market Performance - The brand comprehensive service business revenue increased by 88.3% year-on-year, reaching approximately RMB 53.4 million[36] - The retail sales of clothing, shoes, and textiles in China grew by 12.9% year-on-year, indicating a recovering consumer demand[28] - La Chapelle brand revenue increased by 50.9% to RMB 92,287 thousand, while USHGEE brand revenue grew by 47.2% to RMB 14,761 thousand[39] - Revenue from integrated brand services surged to RMB 53,359 thousand, representing 31.4% of total revenue, compared to 14.4% in the previous year[42] Operational Challenges - The company has faced liquidity difficulties and operational challenges, leading to a failure to repay a €37.4 million acquisition loan[76] - The company is currently undergoing bankruptcy reorganization, which has led to significant uncertainties regarding its ability to continue as a going concern[182] - Four subsidiaries of the company have entered bankruptcy liquidation or reorganization procedures, which may lead to liabilities for the company if debts are not fully settled[185] - The company has temporarily used RMB 50 million of raised funds to supplement working capital, which has not yet been returned to the designated bank account[198] Corporate Governance and Compliance - The board presented the audited consolidated results for the year ending December 31, 2023, highlighting the group's business review and future development outlook[120] - The audit committee reviewed the financial performance for the year ending December 31, 2023, and discussed accounting policies and risk management with external auditors[174] - The supervisory board has conducted five meetings during the reporting period, reviewing 20 proposals, and has confirmed that the company operates in compliance with relevant laws and regulations[188][194] - The company has confirmed the independence of its independent non-executive directors as per the listing rules[145] Employee and Outlet Management - The company has 297 full-time employees as of December 31, 2023, down from 421 employees a year earlier[80] - The total number of net retail outlets decreased by 1 in 2023, compared to a decrease of 82 in 2022[92] - The company has 135 franchise/partner outlets, which increased from 104 outlets (47.7%) in the previous year to 62.2% of total outlets[86] - The number of retail outlets in first-tier cities decreased from 35 (16.1%) to 31 (14.3%), while second-tier cities saw a drop from 97 (44.5%) to 73 (33.6%) outlets[85] Legal and Financial Risks - 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[79] - As of December 31, 2023, 92 bank accounts have been frozen, with a total frozen amount of approximately RMB 8.69 million[78] - The company has faced risks and uncertainties that may impact future business development, as outlined in the management discussion and analysis section[122]

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 ...