La Natsu Bell (06116.HK) Released Its Earnings Report

On the night of March 23rd, La Natsu Bell (06116.HK) issued the latest announcement that A shares could be implemented by the Shanghai stock exchange for delisting risk warning.

The announcement shows that La Natsu Bell's net profit attributable to shareholders of listed companies is negative in 2018. It is estimated that the net profit attributable to shareholders of Listed Companies in 2019 will remain negative. According to the Shanghai Stock Exchange Listing Rules, the net profit of audited net profit in the last two fiscal years has been negative for a long time, and the A share stock of the company will be implemented "delisting risk warning". Specifically, after the company announces the 2019 annual report, the company's A share stock will be implemented with a "delisting risk warning" and the word "*ST" will be preceded by the stock short.

According to La Natsu Bell's previously disclosed annual performance loss report, La Natsu Bell expects its net loss attributable to shareholders of Listed Companies in the year 2019 to 1 billion 600 million yuan to 2 billion 100 million yuan (the same below). The net loss attributable to shareholders of Listed Companies in 2019 is 1 billion 700 million yuan to 2 billion 200 million yuan after deducting non recurring gains and losses.

According to the performance report, the net loss of La Natsu Bell attributable to shareholders of Listed Companies in 2018 was 160 million yuan, while the net loss attributable to shareholders of listed companies after deducting non recurring gains and losses was 245 million yuan.

Founded in 1998, La Natsu Bell is a self brand clothing chain retailer with multi brand operation. It focused on women's clothing in the early days, and then expanded the business of casual men's wear and children's clothing through internal incubation and external investment. At present, its brands include La Chapelle, Puella, Candie 's and so on. In October 9, 2014, La Natsu Bell was listed on the stock exchange of Hongkong. Then it was listed on the main board of Shanghai stock exchange in September 25, 2017 and became the first Chinese A+H share listed clothing company.

However, La Natsu Bell, who has been regarded as the "Chinese version of Zara", has not been able to continue the scenery. The storm continued in 2019. In May 2019, La Natsu Bell issued a notice to sell the controlling subsidiary, Hangzhou 54.05% stake. Hangzhou's main business is to sell La Natsu Bell's online clothing brands such as seven grid, OTHERMIX and OTHERCRAZY. In October 17th of the same year, La Natsu Bell issued a notice announcing that Jack, a subsidiary of the controlling shareholder, was unable to continue to operate because of a continuous loss. He intends to apply for bankruptcy and liquidation to the people's court. Jack Walker is mainly casual men's wear, with leisure, sports, cowboy, business and other products.

Behind these important brand adjustments, or their embarrassing business and capital position. La Natsu Bell's interim results in 2019 showed that revenue in the first half of 2019 was 3 billion 950 million yuan, down 23.2% compared to the same period last year, and the net loss attributable to shareholders of the parent company was 498 million yuan, a net profit of 236 million yuan in the same period last year.

As of press release, La Natsu Bell shares rose 2.56%, to HK $0.80. Now Hongkong's Hang Seng Index has risen by over 4%. La Natsu Bell's A shares have risen 1%, reporting 4.04 yuan, and the Shanghai Composite Index has risen by over 1.8%.