(Yicai Global) Aug. 29 -- Chinese e-commerce firm Vipshop Holdings will stop operating the website and app of its Lefeng cosmetics e-commerce platform on Sept.18.

Lefeng shut down its website's shopping function on Aug. 26 and will cancel its official account on Tencent Holdings' ubiquitous WeChat messaging and payment app, Guangzhou-based Vipshop said in a statement yesterday. The company is closing Lefeng to integrate it into the company's overarching operations in a business adjustment, per the statement.

Founded in 2008 by well-known Chinese TV host Li Jing, Lefeng was originally a cosmetics unit of Beijing-based Fleet Entertainment Group. It mainly provides group purchase services for women's fashion shopping, including cosmetics and luxury goods, public information shows.

Vipshop bought 75 percent of Lefeng's shares for USD112.5 million and became its largest shareholder, it announced on Feb. 14, 2014, saying at the time Lefeng was to operate independently. It also invested USD55.8 million in Fleet Entertainment for a 23 percent stake on Feb. 21, 2014.

Vipshop's share price [NYSE:VIPS] gained after yesterday's opening to crest at 6.1 percent up at USD8.40, but slipped thereafter to close up 2.9 percent at USD8.10.
Editor: Ben Armour