14. SEGMENT REPORTING The Group has three major product distribution channels, internet platform, call center, company-owned stores and franchised stores, which constitute four operating segments. The Group s chief operating decision-maker ( CODM ) has been identified as the Chief Executive Officer, who reviews operating results of these three channels to make decisions about allocating resources and assessing performance for the entire Group. Hence, the Group operates and manages its business in three reportable segments. The Group does not allocate expenses below segment gross profit since these three channels share the same executive team, logistics center, occupancy expenses, marketing department, information technology infrastructures, human resources and finance department. Net revenues, cost of goods sold and gross profit attributable to the different segments are as follows: Internet platform Call center Company O wned S tores Franchised Stores Total $ $ $ $ $ 200 9 Revenues 51,524,566 77,837,726 37,387,809 10,939,090 177,689,191 Cost of goods sold (excluding depreciation and amortization) 32,135,887 42,354,321 16,055,383 6,511,990 97,057,581 Gross Profit 19,388,679 35,483,405 21,332,426 4,427,100 80,631,610 Selling, general and administrative expenses 68,504,581 Depreciation and amortization 3,598,498 Other income, net (254,312 ) Income from operations 8,782,843 Interest income 351,496 Income before income taxes and noncontrolling interests 9,134,339 20 1 0 Revenues 108,156,892 70,611,666 30,709,926 18,062,814 227,541,298 Cost of goods sold (excluding depreciation and amortization) 71,443,588 35,945,408 13,521,818 11,730,807 132,641,621 Gross Profit 36,713,304 34,666,258 17,188,108 6,332,007 94,899,677 Selling, general and administrative expenses 86,244,899 Depreciation and amortization 4,468,527 Other income, net (774,986 ) Income from operations 4,961,237 Interest income 440,875 Income before income taxes and noncontrolling interests 5,402,112 20 11 Revenues 118,502,166 52,783,982 25,770,146 20,837,544