La Chapel Released Its 2021 Annual Performance Report With A Loss Of 820 Million Yuan

On the evening of March 30, rachabel released its 2021 annual performance report. Along with the loss of 820 million yuan of financial report, at the same time, rachabel also received the Shanghai Stock Exchange issued a notice to terminate the listing.

According to the relevant provisions, the net assets of La Chapel at the end of 2021 is negative, touching the conditions for the termination of listing, and the Shanghai Stock Exchange made a decision to terminate the listing of La chapel.

For future development, La charbell said that even if the A-share delisting would not affect the normal operation of the company, and gave its own plan, such as creating new brands, exploring new retail paths such as live broadcast, etc.

　　 Losses in successive years

According to the above performance report of La chapel, during the reporting period, the company realized 430 million yuan of operating revenue, a decrease of 1.389 billion yuan from 1.819 billion yuan in the same period of last year, with a year-on-year decrease of 76.36%; The net profit attributable to the shareholders of the listed company was a loss of 820 million yuan, a decrease of 1.02 billion yuan compared with the previous year.

It was also the fourth consecutive year in which La chapel lost money. From 2018 to 2020, the net losses attributable to shareholders of the listed company were 156 million yuan, 2.05 billion yuan and 1.348 billion yuan respectively.

As for the reasons for the loss, La charbelle explained this:

　　1. Due to the external epidemic situation and the company's tight cash flow and other factors, the company continued to close the offline loss making stores. Due to the operating loss of the closed stores and the one-time confirmation of decoration amortization and withdrawal expenses, the company's operating loss was about 60 million yuan.

　　2. During the reporting period, the company was faced with high overdue debt, with a loss of about 290 million yuan due to debt interest, overdue penalty interest, litigation costs, etc.

　　3. At the end of the report period, due to the increase of inventory aging, the corresponding provision of inventory depreciation loss was about 150 million yuan.

　　4. During the reporting period, the credit impairment loss of receivables was about 190 million yuan.

　　5. At the end of the period, the company tested the goodwill, long-term assets and other assets with signs of impairment, and the corresponding impairment loss of assets was about 160 million yuan.

In terms of channels, the offline channel has realized an operating income of about 287 million yuan; In terms of online channels, the annual revenue from authorized business was 60.45 million yuan, an increase of 215% over 2020.

In terms of brands, LaChapelle women's clothing achieved a revenue of 130 million yuan, a year-on-year decrease of 66.47%; Puella achieved a revenue of 54 million yuan, a year-on-year decrease of 81.04%; 7 modifer achieved revenue of 42 million yuan, a year-on-year decrease of 84.13%; Lababit é achieved revenue of 46 million yuan, a year-on-year decrease of 80.15%; Candie's revenue was 33 million yuan, a year-on-year decrease of 82.08%; The revenue of men's clothing brands was 34 million yuan, a year-on-year decrease of 52.92%; 8em achieved revenue of 5.53 million yuan, a year-on-year decrease of 85.08%; Other brands achieved revenue of 12 million yuan, a year-on-year decrease of 60.47%. At the same time, the new brand ushgee was added in this report period, with revenue of 3.43 million yuan.

According to the financial report, the revenue of all major brands of La chapel in 2021 is on a downward trend. Among them, the income of women's and men's wear brands will drop by 77.2% and 52.9% respectively.

From 2018 to 2020, the number of retail outlets in La chapel is 9269, 4878 and 959 respectively. As of December 31, 2021, the number of retail outlets in La chapel has been reduced to 300.

Termination of listing

On the evening of March 30, Xinjiang lashabel Co., Ltd. issued an announcement, saying that they had received the "regulatory working letter on matters related to the planned termination of the listing of shares of Xinjiang lashabel Clothing Co., Ltd." issued by Shanghai Stock Exchange.

According to the announcement, the net assets at the end of the audit period in 2021 are negative, and the financial accounting report is issued with qualified audit report. According to article 9.3.11 of the stock listing rules of the stock exchange, the shares of La chapel company have touched the conditions for termination of listing. According to article 9.3.14 of the stock listing rules, the Shanghai Stock Exchange made a decision to terminate the listing of the shares of La chapel.

Since it was listed on the main board of Shanghai Stock Exchange in September 2017, * ST lashia has been listed for less than five years.

La Chapelle was founded in 1998. It was listed on the Hong Kong Stock Exchange in October 2014. It successfully landed in the A-share market in September 2017. The company owns women's wear brands such as La Chapelle, La Chapelle sport and candies. In its heyday, La Chabel's brand camp expanded from the initial three to more than 20, covering women's, men's and children's wear, and was once known as "China's Zara".

Due to poor management, the business of La chapel continued to deteriorate after listing, and began to face successive losses, with a loss of 160 million yuan in 2018, a loss of 2.166 billion yuan in 2019, and a net loss of 1.348 billion yuan in 2020. In 2021, the loss will reach 810 million yuan. Although the loss range narrowed year-on-year, the loss momentum has been unable to contain and is on the verge of delisting.

Since 2022, La charbelle has issued a number of risk warning announcements of the company's A-share listing termination. On January 25, La chapel issued the risk warning announcement of the termination of the listing of shares; On February 8, La charbelle issued another announcement on the termination of the listing of its shares.

For the delisting event, La charbelle must have been psychologically prepared, so when the day really arrived, he was quite calm. In an open letter in the performance report, La charbell said that the delisting of a shares would not have a direct impact on the listing status of H shares, and the company still has a capital market window at this stage.

　　 debt crisis

At the same time, the debt of La chapel is expanding. According to the data, two of the four creditors disclosed the amount of the debt of La chapel, with a total amount of 12.1965 million yuan. According to the creditors, La charbelle could not pay off the debts due, and obviously had no solvency, so he submitted the bankruptcy application to the local court. In November last year, she was filed for bankruptcy by three creditors.

In addition, dealing with the heavy litigation matters, dealing with the historical debt problems and stabilizing the core management have also occupied a lot of energy of La charbell, who has already been in trouble.

According to the information disclosed by La chapel, as of January 27, the accumulated amount involved in pending litigation cases was about 463 million yuan, and the amount involved in settled litigation cases was about 1.97 billion yuan. Due to a large number of litigation cases, a total of 145 bank accounts of La chapel and its subsidiaries were frozen, with a frozen amount of about 109 million yuan; The shares of 17 subsidiaries of the company were frozen, and the total equity amount of the frozen equity was about 1.076 billion yuan. Due to the influence of a number of litigation cases, 4 real estate of La Chapel (the book value as of December 31, 2021 was about 1.639 billion yuan) was waiting to be sealed up.

Facing the two mountains of debt burden and business pressure, La charbell said that in order to push the company back to the growth track, it plans to take a number of measures, including clearing up the problems left over by history, improving the store efficiency, flat efficiency and profitability of offline business outlets, continuing to plan solutions to the debt problem, and reducing the burden of business development.

As for the later development, La charbell disclosed that in 2022, it will continue to improve the fine management level of the existing stores, and promote the clearing of the remaining problems with the caliber of single store by adjusting the structure of goods and personnel, so as to improve the store efficiency, flat efficiency and profit level of offline business outlets. Strengthen the construction of brand echelon, youth and quality, and complete brand-new transformation.

In the future, the channel strategy will be changed into "opening new stores and opening good stores" to reasonably expand the company's business scale. At present, the company is building a brand new puella brand. In addition, the company has launched two new brands, ushgee and eyehi, through internal incubation and external cooperation, to reserve new business growth points in the future.

Write it at the end

In the annual report released this time, rachabel made a "self analysis", which can give a lot of warning significance to the industry

Since the second half of 2018, due to the failure to make a correct judgment on the external industry environment, as well as the improper internal strategy, rapid expansion and unbalanced cost structure, and the impact of the new crown pneumonia epidemic since 2020, the company's financing channels have been closed, the capital chain has been broken, the due debts can not be repaid, and lawsuits and assets freezing and sealing up have followed, Faced with greater cash flow pressure and debt centralized cashing risk, it has a certain adverse impact on the company's production and operation.

From once the leader of women's wear to today's dismal departure, rachabel's turn means the change of the market. The pit it has stepped on and the blood and tears flowing through it are worth learning from.