Vipshop-backed Beauty Site Lefeng.com Says Farewell
Vipshop Holdings Ltd. (NYSE: VIPS) today announced the shutdown of women's fashion shopping platform Lefeng.com, effective on September 18.
Beijing-based Lefeng.com, founded in 2008, attributed its closure to certain business adjustments. The account has submitted the cancellation application today on WeChat, which enables users to push feeds to subscribers.
"A farewell is necessary before you can meet again. Thank you for your accompany with Lefeng.com, but separation sometimes happens," Lefeng expressed its farewell in the statement today.
(Lefeng.com's Notice, Source: WeChat official account of Lefeng.com)
Lefeng's parent company Vipshop said it has completed the relevant preparatory work for the shutdown of the site following the approval from its shareholders. Vipshop has held a 75 percent stake in Lefeng.com since 2014, when it invested $112 million in the platform, tagging it as its beauty makeup arm.
Lefeng.com, founded by a TV host Jing Li, goes by the slogan "cannot live without beauty." The site had partnerships with actors, stylists and international brands including New York-based cosmetics company Elizabeth Arden Inc.
China's e-commerce giant JD.com Inc. (Nasdaq: JD) and tech conglomerate Tencent Holdings Ltd. (HKEX: 0700) have backed Vipshop since late 2017.
JD.com Investment Ltd., an arm of JD.com, recently increased its stake in Vipshop to 7.6 percent.
Tencent raised its stake in Vipshop to 8.7 percent in March.
Vipshop said in its first quarter earnings statement that it expects its revenue to reach between 20.7 billion yuan and 21.7 billion yuan ($3 billion) in the second quarter, representing a year-over-year increase of up to 5 percent.
Shares in Vipshop jumped 4 percent intraday Wednesday to $8.21 per American depositary share. JD.com's stock inched 1 percent higher to $30.34 per ADS by midday.
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