La Chapelle Invests RMB20 Million in Quality and Trendy Mid- to High-end Lifestyle Store Brand tanni

HONG KONG, June 8, 2016 /PRNewswire/ -- Shanghai La Chapelle Fashion Co., Ltd. ("La Chapelle", or the "Group", stock code: 6116.HK), one of the largest fashion apparel companies in the PRC, is pleased to announce that its wholly-owned subsidiary Shanghai La Chapelle Enterprise Management Co., Ltd. has signed an investment cooperative agreement with Niologie Limited, a quality trendy women's apparel company for a capital injection of RMB20,000,000 into Niologie China Limited, a wholly-owned subsidiary of Niologie Limited. Upon completion of the transaction, Shanghai La Chapelle Enterprise Management Co., Ltd. is to directly hold 16% of the shares of Niologie China Limited. 

Originating in Hong Kong, the brand "tanni" operated by Niologie China Limited is a mid- to high-end trendy lifestyle store brand highlighting European exquisite and romantic living. Its series encompass a wide range of products including ladies' apparel, handbag, footwear, accessory, and houseware products. One of the most significant characteristics of this brand is its design capability of exquisitely rendered floral prints. It enlists a specialized floral prints team from the UK to design the exclusive prints for tanni. The team utilises its expert fashion sense to express the brand's DNA through specially designed prints, while leading the market trend. The most trendy products of high quality sourced from different corners of the world by the brand's professional fashion buyers from France, Italy, Spain and Hong Kong, to enrich tanni's product mix. Its target customers are elegant ladies with refined cultural taste between the ages of 25 to 40. These people are aware of the brand identity and what it represents. They pursue a higher quality of life and eager for tasteful living. After tanni entered mainland China in 2010, it soon captured the attention and recognition in the market. Its brand concept "Embrace nature" creates a colorful world which never fades through its distinctive floral prints.

tanni's designer team has adopted distinctive flower panels designed in the UK and uses delicately crafted special flower patterns to express the brand DNA conveying the unique character, personality and glamour of the brand

tanni's designer team has adopted distinctive flower panels designed in the UK and uses delicately crafted special flower patterns to express the brand DNA conveying the unique character, personality and glamour of the brand

The Group believes that the investment complies with La Chapelle's "product-oriented, fashionable and high-quality" brand philosophy, and will help to consolidate the Group's leading position in China's apparel market. Since its establishment in 1998, the Group has been designing and selling fashion apparel with a focus on the mass-market, thus it has accumulated abundant experience and market recognition in that sector. The tanni brand invested by the Group boasts a seasoned elite team intimately familiar with the design, management and marketing of mid-range-to-high-end women's wear. tanni's items are highly individualized and its sales approach also meets the sophisticated shopping experience expectation of the new generation consumers, thus it has outperformed the industry average in sales revenue per unit area over the past few years. Through the investment in tanni, La Chapelle can further enrich its mid-range to high-end product mix and accelerate the development of its multi-brand strategy, while tanni for its part can leverage the Group's strong channels and supply chain management capability to realize rapid expansion and improve margins.

Mr. Wang Yong, Executive Vice President of La Chapelle, said, "With the constantly changing fashion trends in apparel and the need to satisfy consumers' requirements for a more sophisticated shopping experience, apparel retailers have to adjust their sales model in order to capture first mover advantages and expand market share amid intense market competition. The tanni brand has an independent design team, offers individualized products, stable domestic and overseas product channels, an excellent marketing system and speedy and stable logistics systems enabling a fast market response. These advantages perfectly match consumers' higher demand for quality, service and individualization. Our investment in this mid-range-to-high-end fashion brand further enhances our strength and reinforces our multi-brand strategy while expanding our presence in the women's wear market. Looking ahead, we will continue to actively look in the domestic and overseas for right opportunities to invest in high-quality fashion brands."

About Shanghai La Chapelle Fashion Co. Ltd. (6116.HK)

Founded in 1998, Shanghai La Chapelle Fashion Co. Ltd. ("La Chapelle", or the "Group") is a fast-growing multi-brand fashion group in the PRC, which designs, markets and sells apparel products with a focus on mass-market ladies' casualwear. The Group strives to offer customers the latest fashions at competitive prices through a wide range of apparel products under 10 brands, namely La Chapelle, Puella, UlifeStyle, 7m, Candie's, La Babité, Vougeek, Pote, MARC ECKŌ, La Chapelle Kids, and six brands that the Group has invested in, including OTHERMIX, OTHERCRAZY JACK WALK, O.T.R, SiaStella and tanni. The Group directly sells products to retail customers through offline retail points and online operating platforms. All retail points are directly controlled and operated by the Group. As at 31 December 2015, the Group's retail network comprised 7,893 retail points located in approximately 2,500 physical locations across all 31 provinces, autonomous regions and municipalities in China.

Website: www.lachapelle.cn

About Niologie China Limited

Founded in 2010, Niologie China Limited is the first women's apparel brand chain operator in the PRC to introduce European lifestyle brand shops. The Company engages in design and sales of wide range of items including ladies' apparel, handbags, footwear, accessory, and housewares. Successfully launched in 2010, the lifestyle brand tanni operated by the Company focuses on European-style women's apparel and lifestyle-related products. At present, the Company has directly-operated shops in major business districts in Beijing, Nanjing, Hangzhou, Shenyang, Dalian and Harbin.

Media Enquiries:

Strategic Financial Relations (China) Limited

Email: sprg-lachapelle@sprg.com.hk

Shanghai La Chapelle Fashion Co., Ltd.

Ms. Yina FANG
Investor Relations
Tel: (86) 21-8023 9238
Email: fangyina@lachapelle.cn

Photo - http://photos.prnasia.com/prnh/20160608/0861605627-a
Photo - http://photos.prnasia.com/prnh/20160608/0861605627-b