Leases

12 Months Ended

Dec. 31, 2025

14.

Leases

From the Perspective of Lessee

The Group leases office space, offline stores, apartments and certain equipment under operating leases for terms ranging from short-term (under 12 months) to 16 years. The Group has options to extend or terminate leases, but the renewals or terminations of these leases are on negotiation basis. None of these leases contain material residual value guarantees or material restrictive covenants, and the Group does not have any financing leases.

Supplemental balance sheet information related to the leases are as follows:


		As of December 31,
		2024		2025
		RMB		RMB
ROU assets		433,617		398,798
Operating lease liabilities—current		57,224		47,458
Operating lease liabilities—non-current		591,995		556,951
Weighted-average remaining lease term		10.40		9.45
Weight-average discount rate		4.89	%	4.89	%

The components of lease costs of these operating leases for the years ended December 31, 2023, 2024 and 2025 are as follow:


		Year Ended December 31,
		2023	2024		2025
		RMB	RMB		RMB
Operating lease cost for fixed payments		147,260	102,472		90,707
Short-term lease costs		61,487	75,356		89,278
Variable lease costs		52,442	49,540		44,975
Total lease costs		261,189	227,368		224,960

The following table provides supplemental cash flow information related to leases:


		Year Ended December 31,
		2023		2024		2025
		RMB		RMB		RMB
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases		165,828		109,552		100,662

14.Leases (Continued)

From the Perspective of Lessee (Continued)

The following table provides the maturities of lease liabilities as of December 31, 2025:


		Operating
Maturities of lease liabilities at December 31, 2025		leases
		RMB
2026		74,403
2027		61,977
2028		80,936
2029		83,753
2030		81,810
2031 and thereafter		388,828
Total future undiscounted lease payments		771,707
Less: imputed interest		167,298
Total present value of lease liabilities		604,409

For the year ended December 31, 2023, RMB135,657 impairment loss was recorded in general and administrative expenses related to ROU assets of city outlets. No impairment loss was recorded for the years ended December 31, 2024 and 2025.

Lessor arrangement - Operating lease

The Group generates lease income from Shan Shan Outlets and warehouses. The variable lease payments related to Shan Shan Outlets are determined based on the lessee’s sales amounts and a rate specified in the lease contract. The Group’s lease arrangements do not include options for the lessee to purchase the underlying assets or to extend or terminate the lease. Additionally, the Group’s agreements typically include clauses that may restrict the use of the asset or require specific actions by the lessee to ensure proper maintenance of the asset for its continued performance.

As of December 31, 2025, the undiscounted minimum lease payments expected to be received over the remaining lease terms are as follows: RMB823.7 million for 2026, RMB352.4 million for 2027, and RMB175.4 million for 2028, RMB86.8 million for 2029, RMB65.7 million for 2030 and RMB148.7 million for 2031 and thereafter.