| Segment information |
Segment revenue and results For the years ended December 31, 2023, 2024 and 2025, the Group has determined it has five operating segments, Vip.com, internet finance, Shan Shan Outlets, offline shops and City Outlets.Vip.com and Shan Shan Outlets have been identified as reportable segments while internet finance, offline shops and City Outlets operating segments were aggregated as others reportable segment. The Group’s CODM assesses the segments’ performance by using each segments’ income from operations (which includes certain expense allocations directly attributable to each of the segments). The CODM uses income from operations for each segment to measure the performance of each segment to monitor budget versus actual results and evaluate the performance, and to allocate resources to each of the segments. 24. | Segment information (Continued) |
Segment revenue and results (Continued) The tables below provide a summary of the Group’s operating segment results including the significant expense categories and amounts for each reportable segment that are regularly provided to the CODM for the years ended December 31, 2023, 2024 and 2025: | | | | | | | | | | | | | Shan Shan | | | | | Year Ended December 31, 2023 | | Vip.com | | Outlets | | Others | | Total | | | RMB | | RMB | | RMB | | RMB | Revenues from external customers | | 109,177,540 | | 2,771,018 | | 907,462 | | 112,856,020 | Inter-segment revenues (Note a) | | 378,941 | | 24,959 | | 326,591 | | 730,491 | | | 109,556,481 | | 2,795,977 | | 1,234,053 | | 113,586,511 | Reconciliation of total net revenues | | | | | | | | | Elimination of inter-segment revenues | | | | | | | | (730,491) | Total net revenues | | | | | | | | 112,856,020 | Less: | | | | | | | | | Cost of revenues | | (85,569,090) | | (1,488,518) | | (405,095) | | | Fulfillment expenses (Note b) | | (8,151,510) | | – | | – | | | Marketing expenses (Note b) | | (3,170,057) | | (170,246) | | – | | | Technology and content expenses (Note b) | | (1,350,414) | | – | | – | | | General and administrative expenses (Note b) | | (2,312,911) | | (457,780) | | (530,555) | | | Share-based compensation expenses (Note c) | | (1,023,215) | | (441,195) | | – | | | Other segment items (Note d) | | 639,886 | | 122,882 | | (174,558) | | | Segment income from operations | | 8,619,170 | | 361,120 | | 123,845 | | 9,104,135 | Reconciliation of profit or loss: | | | | | | | | | Other income and expenses (Note e) | | | | | | | | 882,867 | Income before income taxes and share of income of equity method investees | | | | | | | | 9,987,002 |
24. | Segment information (Continued) |
Segment revenue and results (Continued) | | | | | | | | | | | | | Shan Shan | | | | | Year Ended December 31, 2024 | | Vip.com | | Outlets | | Others | | Total | | | RMB | | RMB | | RMB | | RMB | Revenues from external customers | | 104,379,002 | | 3,284,968 | | 756,862 | | 108,420,832 | Inter-segment revenues (Note a) | | 352,166 | | 25,761 | | 205,325 | | 583,252 | | | 104,731,168 | | 3,310,729 | | 962,187 | | 109,004,084 | Reconciliation of total net revenues | | | | | | | | | Elimination of inter-segment revenues | | | | | | | | (583,252) | Total net revenues | | | | | | | | 108,420,832 | Less: | | | | | | | | | Cost of revenues | | (81,251,073) | | (1,626,883) | | (344,551) | | | Fulfillment expenses (Note b) | | (8,241,185) | | — | | — | | | Marketing expenses (Note b) | | (2,766,702) | | (200,850) | | — | | | Technology and content expenses (Note b) | | (1,424,414) | | — | | — | | | General and administrative expenses (Note b) | | (2,290,281) | | (558,476) | | (333,414) | | | Share-based compensation expenses (Note c) | | (1,137,590) | | (360,055) | | — | | | Other segment items (Note d) | | 731,609 | | 160,771 | | (187,737) | | | Segment income from operations | | 8,351,532 | | 725,236 | | 96,485 | | 9,173,253 | Reconciliation of profit or loss: | | | | | | | | | Other income and expenses (Note e) | | | | | | | | 814,227 | Income before income taxes and share of income of equity method investees | | | | | | | | 9,987,480 |
24. | Segment information (Continued) |
Segment revenue and results (Continued) | | | | | | | | | | | | | Shan Shan | | | | | Year Ended December 31, 2025 | | Vip.com | | Outlets | | Others | | Total | | | RMB | | RMB | | RMB | | RMB | Revenues from external customers | | 101,136,509 | | 4,058,022 | | 725,015 | | 105,919,546 | Inter-segment revenues (Note a) | | 384,346 | | 23,516 | | 189,172 | | 597,034 | | | 101,520,855 | | 4,081,538 | | 914,187 | | 106,516,580 | Reconciliation of total net revenues | | | | | | | | | Elimination of inter-segment revenues | | | | | | | | (597,034) | Total net revenues | | | | | | | | 105,919,546 | Less: | | | | | | | | | Cost of revenues | | (79,555,236) | | (1,859,631) | | (350,505) | | | Fulfillment expenses (Note b) | | (8,200,923) | | — | | — | | | Marketing expenses (Note b) | | (2,719,647) | | (234,942) | | — | | | Technology and content expenses (Note b) | | (1,355,745) | | — | | — | | | General and administrative expenses (Note b) | | (2,323,903) | | (644,851) | | (263,248) | | | Share-based compensation expenses (Note c) | | (1,039,023) | | (660,719) | | — | | | Other segment items (Note d) | | 856,160 | | 175,818 | | (204,239) | | | Segment income from operations | | 7,182,538 | | 857,213 | | 96,195 | | 8,135,946 | Reconciliation of profit or loss: | | | | | | | | | Other income and expenses (Note e) | | | | | | | | 778,737 | Income before income taxes and share of income of equity method investees | | | | | | | | 8,914,683 |
Notes: (a) | Inter-segment revenues mainly consist of payment processing, inter platform technical services, warehousing rental services and supply chain management services, promotion services provided by Vip.com to internet finance business and by offline shops to Vip.com, and internal procurement between offline shops, Shan Shan Outlets and Vip.com. |
(b) | These expenses exclude share-based compensation expenses. |
(c) | The detail information was disclosed in Note 23. |
(d) | For each segment, the other segment items category includes: |
Vip.com — other operating income which consists of government grants, claims income and other miscellaneous income. Shanshan — technology and content expenses, other operating income which consists of government grants, claims income and other miscellaneous income. Others — fulfillment expenses, marketing expenses, technology and content expenses, share-based compensation expenses, other operating income which consists of government grants, claims income and other miscellaneous income. (e) | Other income and expenses include interest income, exchange gain/(loss), investment gain/(loss) and revaluation of investments, interest expenses and impairment loss of investments. |
24. | Segment information (Continued) |
Segment revenue and results (Continued) Depreciation of property and equipment, net (included in the measurement of segment profit or loss): | | | | | | | | | Year Ended December 31, | | | 2023 | | 2024 | | 2025 | | | RMB | | RMB | | RMB | Total depreciation of property and equipment, net | | | | | | | Vip.com | | 851,630 | | 924,097 | | 928,680 | Shan Shan Outlets | | 417,226 | | 476,943 | | 585,577 | Others | | 30,528 | | 17,452 | | 12,214 | | | 1,299,384 | | 1,418,492 | | 1,526,471 |
Interest income and expenses (included in the measurement of segment profit or loss): | | | | | | | | | Year Ended December 31, | | | 2023 | | 2024 | | 2025 | | | RMB | | RMB | | RMB | Interest income | | | | | | | Vip.com | | 654,485 | | 610,161 | | 643,679 | Shan Shan Outlets | | 42,807 | | 41,932 | | 53,646 | Others | | 84,532 | | 158,734 | | 105,697 | Inter-segment interest income | | (1,532) | | (1,035) | | (1,435) | | | 780,292 | | 809,792 | | 801,587 | Interest expenses | | | | | | | Vip.com | | (22,821) | | (57,627) | | (86,718) | Shan Shan Outlets | | (111) | | (53) | | (3,319) | Others | | (1,532) | | (1,031) | | (1,435) | Inter-segment interest expense | | 1,532 | | 1,035 | | 1,435 | | | (22,932) | | (57,676) | | (90,037) |
| | | | | | | | | Year Ended December 31, | | | 2023 | | 2024 | | 2025 | | | RMB | | RMB | | RMB | Share of income (loss) of investments accounted under the equity method | | | | | | | Vip.com | | 52,212 | | 1,647 | | (1,933) | Shan Shan Outlets. | | 112,868 | | 121,071 | | 141,924 | Others | | (84,779) | | 44,262 | | 153,928 | | | 80,301 | | 166,980 | | 293,919 |
| | | | | | | As of December 31, | | | 2024 | | 2025 | | | RMB | | RMB | Total assets | | | | | Vip.com | | 51,103,217 | | 53,572,887 | Shan Shan Outlets. | | 19,971,408 | | 21,650,040 | Others | | 3,861,501 | | 3,620,391 | | | 74,936,126 | | 78,843,318 |
24. | Segment information (Continued) |
Segment revenue and results (Continued) | | | | | | | As of December 31, | | | 2024 | | 2025 | | | RMB | | RMB | Investments in equity method investees | | | | | Vip.com | | 1,106,779 | | 2,174,846 | Shan Shan Outlets. | | 760,596 | | 800,520 | Others | | 134,668 | | 161,418 | | | 2,002,043 | | 3,136,784 |
| | | | | | | | | Year Ended December 31, | | | 2023 | | 2024 | | 2025 | | | RMB | | RMB | | RMB | Total expenditure for additions of long-lived assets | | | | | | | Vip.com | | 2,330,278 | | 870,593 | | 590,415 | Shan Shan Outlets. | | 2,895,954 | | 2,687,663 | | 1,469,068 | Others | | 4,505 | | 4,330 | | 7,055 | | | 5,230,737 | | 3,562,586 | | 2,066,538 |
Geographic information Substantially all revenues and long-lived assets of Group are derived from and located in the PRC.
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