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Yatsen NYSE: YSG reported second-quarter 2026 revenue growth of 5.1% as continued strength in its skincare portfolio offset a sharp decline in color cosmetics sales, while higher inventory provisions and increased marketing spending widened the company’s losses.

Total net revenue rose to RMB1.14 billion from RMB1.09 billion a year earlier. Founder, Chairman and CEO Jinfeng Huang said the result reflected continued progress in the company’s strategic transformation despite a challenging competitive environment for China’s beauty industry.

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“While overall growth was more moderate than our prior expectations, our skincare portfolio delivered exceptional performance,” Huang said, adding that the company’s skincare brands have become a core driver of growth.

Skincare Becomes the Dominant Revenue Driver Revenue from Yatsen’s skincare brands increased 40.4% year over year during the quarter and accounted for 71.5% of total net revenue. That performance was partly offset by a 35.8% decline in revenue from color cosmetics brands, which management attributed to deliberate brand portfolio optimization and SKU rationalization.

Huang said the shift in the revenue mix toward skincare represents a move toward “higher quality, more sustainable growth.” The company continued to invest in research and development, with R&D expense representing 3.3% of total revenue in the quarter, broadly consistent with the prior-year period.

During the quarter, Yatsen expanded product offerings across its skincare portfolio. Galénic launched an Active Eye Cream under its Couture Révélation Cellulaire line; DR.WU introduced three essence masks targeting oil control, hydration and soothing care; and Eve Lom expanded its second-generation Vital Dew range with a hydration cream and skin infusion serum.

Management also cited brand-building activities, including a DR.WU livestreaming event with cctv.com that attracted a cumulative audience of 178 million viewers. Galénic held a summer campaign pop-up event on Wuzhizhou Island in Sanya, while Eve Lom participated in the British Beauty Festival.

Margins and Losses Widen Gross profit declined 0.8% year over year to RMB843.8 million, while gross margin fell to 73.9% from 78.3%. Huang and CFO Donghao Yang said the decline was primarily related to higher inventory provisions in the color cosmetics business amid portfolio optimization and SKU reductions.

Huang said that excluding the impact of the one-time inventory provisions, underlying gross margin would have been roughly stable from a year earlier.

Total operating expenses increased 7.7% to RMB975.7 million, or 85.4% of revenue, compared with 83.4% a year earlier. Selling and marketing expense climbed to RMB807.6 million, representing 70.7% of revenue, from RMB722.4 million, or 66.5% of revenue, in the prior-year period.

Yang said the increase reflected investments to build consumer awareness and long-term brand equity for the company’s core skincare brands, along with higher traffic acquisition costs on Douyin as Yatsen pursued growth opportunities on the platform.

Fulfillment expenses declined to RMB56.1 million from RMB63.3 million, which Yang attributed to improved logistics efficiency. General and administrative expenses fell to RMB74.8 million from RMB84.1 million, primarily due to lower share-based compensation expenses.

Operating loss: RMB131.9 million, compared with RMB55.5 million a year earlier. Non-GAAP operating loss: RMB112.1 million, compared with RMB20.4 million a year earlier. Net loss: RMB90.8 million, compared with RMB19.5 million a year earlier. Non-GAAP net loss: RMB99.4 million, compared with non-GAAP net income of RMB11.5 million a year earlier. Net cash used in operating activities was RMB78 million, compared with RMB77.7 million of cash generated from operations in the prior-year quarter. As of June 30, Yatsen had RMB1.06 billion in cash, restricted cash and short-term investments, compared with RMB1.05 billion at the end of 2025.

Channel Diversification and Marketing Efficiency During the question-and-answer session, newly appointed Co-Chief Financial Officer Li Wang said expanding distribution channels will be important to the next stage of growth for Yatsen’s skincare brands.

Wang said the company plans to supplement its core Tmall and Douyin channels with online business-to-business platforms including JD, Vipshop and TBD, as well as offline distribution, duty-free and professional channels. She said such channels generally have lower traffic costs and can support a healthier profitability profile.

DR.WU has already demonstrated that a higher business-to-business sales mix can support both growth and profitability, Wang said, adding that Yatsen intends to selectively apply that model to other skincare brands. The company is also pursuing differentiated formats, including Galénic boutique stores in premium department stores and shopping malls, and DR.WU distribution through over-the-counter drugstore channels.

To address rising online traffic costs, Wang said Yatsen is directing more resources toward higher-growth and higher-return skincare brands, expanding professional and business-to-business channels, and improving content creation, customer relationship management retention and budget allocation. The company is also using AI agents as part of efforts to strengthen financial discipline and marketing efficiency.

“The goal is not to cut investment blindly,” Wang said. “Our goal is to support strong skincare growth with better efficiency and stronger profitability over time.”

Third-Quarter Outlook and Finance Leadership Update For the third quarter of 2026, Yatsen expects total net revenue of between RMB898.6 million and RMB998.4 million, representing a year-over-year decline of approximately 0% to 10%.

Huang also announced that Wang Li was appointed Co-Chief Financial Officer effective immediately. Wang has more than 15 years of experience in the consumer and beauty industries and most recently served as CFO of Proya Cosmetics, according to Huang. She will work alongside Yang to support cost-structure optimization, resource allocation and the company’s pursuit of sustainable profitable growth.

About Yatsen (NYSE:YSG)Yatsen Holding Limited NYSE: YSG is a Shanghai-based beauty and personal care company founded in 2016. The firm operates as a digital-first cosmetics provider, designing, developing and marketing its own brands to a primarily Chinese consumer base. Since its inception, Yatsen has focused on leveraging data analytics and social media engagement to drive product innovation and brand awareness.

The company's core portfolio includes Perfect Diary, a color-cosmetics brand offering lipsticks, eyeshadows, foundations and related accessories; Little Ondine, which specializes in nail lacquers and nail care products; Winona, a sensitive-skin skincare line; and Abby's Choice, which features targeted skincare treatments.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Conference Call to Be Held at 7:30 A.M. U.S. Eastern Time on September 2, 2026

, /PRNewswire/ -- Yatsen Holding Limited ("Yatsen" or the "Company") (NYSE: YSG), a leading China-based beauty group, today announced its unaudited financial results for the quarter ended June 30, 2026.

Second Quarter 2026 Highlights

Total net revenues for the second quarter of 2026 increased by 5.1% to RMB1.14 billion (US$168.3 million) from RMB1.09 billion for the prior year period. Total net revenues from Skincare Brands[1] for the second quarter of 2026 increased by 40.4% to RMB816.1 million (US$120.3 million) from RMB581.3 million for the prior year period. As a percentage of total net revenues, total net revenues from Skincare Brands for the second quarter of 2026 were 71.5%, as compared with 53.5% for the prior year period.  Gross margin for the second quarter of 2026 decreased to 73.9% from 78.3% for the prior year period.  Net loss for the second quarter of 2026 was RMB90.8 million (US$13.4 million), as compared with RMB19.5 million for the prior year period. Non-GAAP net loss[2] for the second quarter of 2026 was RMB99.4 million (US$14.7 million), as compared with non-GAAP net income of RMB11.5 million for the prior year period. Mr. Jinfeng Huang, Founder, Chairman and Chief Executive Officer of Yatsen, stated, "China's beauty market demonstrated broad resilience in the second quarter, with market growth showing slight improvement but remaining challenged as competition across the industry intensified. Against this backdrop, our business continued to navigate a critical phase of strategic transformation. As we further optimized our brand portfolio and distribution channels, our skincare portfolio maintained its strong growth momentum — now representing over 70% of total revenues — led by the robust performance of our clinical and premium skincare brands, including Galénic, DR.WU and Eve Lom. In contrast, our color cosmetics segment faced structural headwinds amid heightened competition. As a result, we are taking decisive actions to streamline our color cosmetics portfolio and refocus resources on our high-growth skincare brands. Looking ahead, we aim to further optimize our product portfolio and channel execution, while maintaining investments in R&D to strengthen our innovation pipeline for sustainable long-term growth." 

Mr. Donghao Yang, Director and Chief Financial Officer of Yatsen, commented, "We delivered modest top-line growth in the second quarter of 2026, with net revenues increasing 5.1% year over year. This performance was primarily driven by a 40.4% year-over-year growth in our skincare segment, which more than offset revenue pressure in our color cosmetics business. Looking ahead, amid dynamic market conditions, we remain committed to maintaining operational discipline, with a continued focus on improving marketing spend efficiency and progressively optimizing our operating cost structure."

Second Quarter 2026 Financial Results

Net Revenues

Total net revenues for the second quarter of 2026 increased by 5.1% to RMB1.14 billion (US$168.3 million) from RMB1.09 billion for the prior year period. The increase was primarily driven by a 40.4% year-over-year increase in net revenues from Skincare Brands, which more than offset a 35.8% year-over-year decrease in net revenues from Color Cosmetics Brands.[3]

Gross Profit and Gross Margin

Gross profit for the second quarter of 2026 decreased by 0.8% to RMB843.8 million (US$124.4 million) from RMB850.4 million for the prior year period. Gross margin for the second quarter of 2026 decreased to 73.9% from 78.3% for the prior year period, primarily due to higher inventory provisions in the color cosmetics business associated with the Company's proactive brand portfolio optimization and SKU rationalization.

Operating Expenses

Total operating expenses for the second quarter of 2026 increased by 7.7% to RMB975.7 million (US$143.8 million) from RMB905.9 million for the prior year period. As a percentage of total net revenues, total operating expenses for the second quarter of 2026 were 85.4%, as compared with 83.4% for the prior year period.

Fulfillment Expenses. Fulfillment expenses for the second quarter of 2026 were RMB56.1 million (US$8.3 million), as compared with RMB63.3 million for the prior year period. As a percentage of total net revenues, fulfillment expenses for the second quarter of 2026 decreased to 4.9% from 5.8% for the prior year period. The decrease was primarily attributable to further improvements in logistics efficiency. Selling and Marketing Expenses. Selling and marketing expenses for the second quarter of 2026 were RMB807.6 million (US$119.0 million), as compared with RMB722.4 million for the prior year period. As a percentage of total net revenues, selling and marketing expenses for the second quarter of 2026 increased to 70.7% from 66.5% for the prior year period. The increase was primarily driven by strategic investments in broadening consumer awareness and building long-term brand equity of our core skincare brands, coupled with higher traffic acquisition costs on the Douyin platform as the Company capitalized on the channel's strong growth momentum. General and Administrative Expenses. General and administrative expenses for the second quarter of 2026 were RMB74.8 million (US$11.0 million), as compared with RMB84.1 million for the prior year period. As a percentage of total net revenues, general and administrative expenses for the second quarter of 2026 were 6.6% as compared with 7.7% for the prior year period. The decrease was primarily driven by lower share-based compensation expenses. Research and Development Expenses. Research and development expenses for the second quarter of 2026 were RMB37.3 million (US$5.5 million), as compared with RMB36.1 million for the prior year period. As a percentage of total net revenues, research and development expenses for the second quarter of 2026 were 3.3%, consistent with the prior year period. Loss / Income from Operations

Loss from operations for the second quarter of 2026 was RMB131.9 million (US$19.4 million), as compared with RMB55.5 million for the prior year period. Operating loss margin was 11.5%, as compared with 5.1% for the prior year period.

Non-GAAP loss from operations[4] for the second quarter of 2026 was RMB112.1 million (US$16.5 million), as compared with RMB20.4 million for the prior year period. Non-GAAP operating loss margin[5] was 9.8%, as compared with 1.9% for the prior year period.

Net Loss / Income

Net loss for the second quarter of 2026 was RMB90.8 million (US$13.4 million), as compared with RMB19.5 million for the prior year period. Net loss margin was 8.0%, as compared with 1.8% for the prior year period. Net loss attributable to Yatsen's ordinary shareholders per diluted ADS[6] for the second quarter of 2026 was RMB0.97 (US$0.14), as compared with RMB0.19 for the prior year period.

Non-GAAP net loss for the second quarter of 2026 was RMB99.4 million (US$14.7 million), as compared with non-GAAP net income of RMB11.5 million for the prior year period. Non-GAAP net loss margin was 8.7%, as compared with non-GAAP net income margin of 1.1% for the prior year period. Non-GAAP net loss attributable to Yatsen's ordinary shareholders per diluted ADS[7] for the second quarter of 2026 was RMB1.06 (US$0.16), as compared with non-GAAP net income attributable to Yatsen's ordinary shareholders per diluted ADS of RMB0.13 for the prior year period.

Balance Sheet and Cash Flow

As of June 30, 2026, the Company had cash, restricted cash and short-term investments of RMB1.06 billion (US$155.6 million), as compared with RMB1.05 billion as of December 31, 2025.

Net cash used in operating activities for the second quarter of 2026 was RMB78.0 million (US$11.5 million), as compared with net cash generated from operating activities of RMB77.7 million for the prior year period.

Appointment of Co-Chief Financial Officer

The Company is pleased to announce the appointment of Ms. Li Wang as Co-Chief Financial Officer, effective September 2, 2026. Ms. Wang brings over 15 years of experience in the consumer industry, having previously served as Chief Financial Officer at Proya Cosmetics Co., Ltd. and holding multiple professional accounting qualifications, including CMA, HKICPA and FIPA.

Ms. Wang will partner with Mr. Donghao Yang, the Company's Director and Chief Financial Officer, to ensure a seamless transition and provide continuity in the Company's financial leadership, and she is expected to succeed Mr. Yang as Chief Financial Officer after the release of the 2026 annual report on Form 20-F. The appointment reflects the Company's commitment to building a world-class leadership team and will further support the Company's ongoing strategic transformation and its focus on sustainable, profitable growth.

Business Outlook

For the third quarter of 2026, the Company expects its total net revenues to be between RMB898.6 million and RMB998.4 million, representing a year-over-year decrease of approximately 0% to 10%. These forecasts reflect the Company's current and preliminary views on the market and operational conditions, which are subject to change.

Exchange Rate

This announcement contains translations of certain Renminbi ("RMB") amounts into U.S. dollars ("US$") at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to US$ were made at a rate of RMB6.7851 to US$1.00, the exchange rate in effect as of June 30, 2026, as set forth in the H.10 statistical release of The Board of Governors of the Federal Reserve System. The Company makes no representation that any RMB or US$ amounts could have been, or could be, converted into US$ or RMB, as the case may be, at any particular rate, or at all.

[1] Include net revenues from Galénic, DR.WU (its mainland China business), Eve Lom and other skincare brands of the Company.

[2] Non-GAAP net income (loss) is a non-GAAP financial measure. Non-GAAP net income (loss) is defined as net income (loss) excluding (i) share-based compensation expenses, (ii) amortization of intangible assets resulting from assets and business acquisitions, (iii) revaluation of investments on the share of equity method investments, (iv) impairment of goodwill, (v) impairment of investments and (vi) tax effects on non-GAAP adjustments.

[3] Include Perfect Diary, Little Ondine, Pink Bear and other color cosmetics brands of the Company.

[4] Non-GAAP income (loss) from operations is a non-GAAP financial measure. Non-GAAP income (loss) from operations is defined as income (loss) from operations excluding (i) share-based compensation expenses, (ii) amortization of intangible assets resulting from assets and business acquisitions and (iii) impairment of goodwill.

[5] Non-GAAP operating income (loss) margin is a non-GAAP financial measure, which is defined as non-GAAP net income (loss) from operations as a percentage of total net revenues.

[6] ADS refers to American depositary shares, each of which represents twenty Class A ordinary shares.

[7] Non-GAAP net income (loss) attributable to ordinary shareholders per diluted ADS is a non-GAAP financial measure. Non-GAAP net income (loss) attributable to ordinary shareholders per diluted ADS is defined as non-GAAP net income (loss) attributable to ordinary shareholders divided by the weighted average number of diluted ADS outstanding for computing diluted earnings per ADS. Non-GAAP net income (loss) attributable to ordinary shareholders is defined as net income (loss) attributable to ordinary shareholders excluding (i) share-based compensation expenses, (ii) amortization of intangible assets resulting from assets and business acquisitions, (iii) revaluation of investments on the share of equity method investments, (iv) impairment of goodwill, (v) impairment of investments, (vi) tax effects on non-GAAP adjustments and (vii) accretion to redeemable non-controlling interests.

Conference Call Information

The Company's management will hold a conference call on Wednesday, September 2, 2026, at 7:30 A.M. U.S. Eastern Time or 7:30 P.M. Beijing Time to discuss its financial results and operating performance for the second quarter of 2026.

United States (toll free):

+1-888-346-8982

International:

+1-412-902-4272

Mainland China (toll free):

400-120-1203

Hong Kong, SAR (toll free):

800-905-945

Hong Kong, SAR:

+852-3018-4992

The replay will be accessible through Wednesday, September 9, 2026 by dialing the following numbers:

United States:

+1-855-669-9658

International:

+1-412-317-0088

Replay Access Code:        

3486688

A live and archived webcast of the conference call will also be available on the Company's investor relations website at http://ir.yatsenglobal.com.

About Yatsen Holding Limited

Yatsen Holding Limited (NYSE: YSG) is a leading China-based beauty group with the vision of becoming a world-class pioneer in beauty innovation. Founded in 2016, the Company has launched and acquired numerous color cosmetics and skincare brands including Perfect Diary, Little Ondine, Pink Bear, Galénic, DR.WU (its mainland China business), and Eve Lom. Our brands are strategically positioned to capture a wide spectrum of consumer demographics and price points, ranging from the mass market to the prestige and clinical segments. Yatsen thrives on the synergy of brand equity, product strength and operational agility, anchored by a strong commitment to R&D and consumer insights.

For more information, please visit http://ir.yatsenglobal.com.

Use of Non-GAAP Financial Measures

The Company uses non-GAAP income (loss) from operations, non-GAAP operating income (loss) margin, non-GAAP net income (loss), non-GAAP net income (loss) margin, non-GAAP net income (loss) attributable to ordinary shareholders and non-GAAP net income (loss) attributable to ordinary shareholders per diluted ADS, each a non-GAAP financial measure, in reviewing and assessing its operating performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. The Company presents these non-GAAP financial measures because they are used by the management to evaluate operating performance and formulate business plans. Non-GAAP financial measures help identify underlying trends in its business, provide further information about its results of operations, and enhance the overall understanding of its past performance and future prospects. The Company defines non-GAAP income (loss) from operations as income (loss) from operations excluding (i) share-based compensation expenses, (ii) amortization of intangible assets resulting from assets and business acquisitions and (iii) impairment of goodwill. Non-GAAP operating income (loss) margin is non-GAAP income (loss) from operations as a percentage of total net revenues. The Company defines non-GAAP net income (loss) as net income (loss) excluding (i) share-based compensation expenses, (ii) amortization of intangible assets resulting from assets and business acquisitions, (iii) revaluation of investments on the share of equity method investments, (iv) impairment of goodwill, (v) impairment of investments and (vi) tax effects on non-GAAP adjustments. Non-GAAP net income (loss) margin is non-GAAP net income (loss) as a percentage of total net revenues. The Company defines non-GAAP net income (loss) attributable to ordinary shareholders as net income (loss) attributable to ordinary shareholders excluding (i) share-based compensation expenses, (ii) amortization of intangible assets resulting from assets and business acquisitions, (iii) revaluation of investments on the share of equity method investments, (iv) impairment of goodwill, (v) impairment of investments, (vi) tax effects on non-GAAP adjustments and (vii) accretion to redeemable non-controlling interests. Non-GAAP net income (loss) attributable to ordinary shareholders per diluted ADS is computed using non-GAAP net income (loss) attributable to ordinary shareholders divided by weighted average number of diluted ADS outstanding for computing diluted earnings per ADS.

However, the non-GAAP financial measures have limitations as analytical tools as the non-GAAP financial measures are not presented in accordance with U.S. GAAP and may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited. The Company compensates for these limitations by reconciling the non-GAAP financial measures to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating performance. The Company encourages investors and others to review its financial information in its entirety and not rely on a single financial measure. Reconciliations of Yatsen's non-GAAP financial measures to the most comparable U.S. GAAP measure are included at the end of this press release.

Safe Harbor Statement

This announcement contains statements that may constitute "forward-looking" statements which are made pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "aims," "future," "intends," "plans," "believes," "estimates," "likely to," and similar statements. The Company may also make written or oral forward-looking statements in its periodic reports to the Securities and Exchange Commission ("SEC"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company's beliefs, plans, outlook and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company's growth strategies; its future business development, results of operations and financial condition; its ability to continue to roll out popular products and maintain popularity of existing products; its ability to anticipate and respond to changes in industry trends and consumer preferences and behavior in a timely manner; its ability to attract and retain new customers and to increase revenues generated from repeat customers; its expectations regarding demand for and market acceptance of its products and services; its ability to integrate newly-acquired businesses and brands; trends and competition in and relevant government policies and regulations relating to China's beauty market; changes in its revenues and certain cost or expense items; and general economic conditions globally and in China. Further information regarding these and other risks is included in the Company's filings with the SEC. All information provided in this press release is as of the date of this press release, and the Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

For investor and media inquiries, please contact:

Yatsen Holding Limited
Investor Relations
E-mail: [email protected]

YATSEN HOLDING LIMITED

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(All amounts in thousands, except for share, per share data or otherwise noted)

December 31,

June 30,

June 30,

2025

2026

2026

RMB'000

RMB'000

USD'000

Assets

Current assets

Cash and cash equivalents

765,379

710,286

104,683

Restricted cash

42,117

4,667

688

Short-term investments

246,008

340,545

50,190

Accounts receivable, net

220,870

216,722

31,941

Inventories, net

508,730

554,572

81,734

Prepayments and other current assets

450,970

411,660

60,671

Amounts due from related parties

114

68

10

Total current assets

2,234,188

2,238,520

329,917

Non-current assets

Investments

653,560

765,582

112,833

Property and equipment, net

77,014

66,072

9,738

Goodwill, net

155,029

155,029

22,848

Intangible assets, net

537,509

491,158

72,388

Deferred tax assets

1,435

686

101

Right-of-use assets, net

173,915

181,682

26,777

Other non-current assets

14,332

25,940

3,823

Total non-current assets

1,612,794

1,686,149

248,508

Total assets

3,846,982

3,924,669

578,425

Liabilities, redeemable non-controlling interests and shareholders'
equity

Current liabilities

Accounts and notes payable

149,371

174,451

25,711

Advances from customers

28,821

32,070

4,727

Accrued expenses and other liabilities

348,700

304,369

44,858

Amounts due to related parties

21,262

19,577

2,885

Income tax payables

13,690

13,779

2,031

Lease liabilities due within one year

53,435

61,256

9,028

Total current liabilities

615,279

605,502

89,240

Non-current liabilities

Convertible notes

-

408,654

60,228

Deferred tax liabilities

107,906

112,343

16,557

Lease liabilities

123,157

127,790

18,834

Total non-current liabilities

231,063

648,787

95,619

Total liabilities

846,342

1,254,289

184,859

Redeemable non-controlling interests

1,337

1,337

197

Shareholders' equity

Ordinary Shares (US$0.00001 par value; 10,000,000,000 ordinary
shares authorized, comprising of 6,000,000,000 Class A ordinary
shares, 960,852,606 Class B ordinary shares and 3,039,147,394
shares each of such classes to be designated as of December 31,
2025 and June 30, 2026; 2,096,600,883 Class A shares and
600,572,880 Class B ordinary shares issued as of December 31,
2025 and June 30, 2026; 1,276,663,163 Class A ordinary shares
and 600,572,880 Class B ordinary shares outstanding as of
December 31, 2025, 1,275,438,103 Class A ordinary shares and
600,572,880 Class B ordinary shares outstanding as of June 30, 
2026)

173

173

25

Treasury shares

(1,250,678)

(1,275,611)

(188,002)

Additional paid-in capital

12,296,367

12,178,055

1,794,823

Statutory reserve

31,527

31,527

4,647

Accumulated deficit

(8,141,545)

(8,292,887)

(1,222,220)

Accumulated other comprehensive income

74,760

27,786

4,096

Total Yatsen Holding Limited shareholders' equity

3,010,604

2,669,043

393,369

Non-controlling interests

(11,301)

-

-

Total shareholders' equity

2,999,303

2,669,043

393,369

Total liabilities, redeemable non-controlling interests and
shareholders' equity

3,846,982

3,924,669

578,425

YATSEN HOLDING LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(All amounts in thousands, except for share, per share data or otherwise noted)

For the Three Months Ended June 30,

For the Six Months Ended June 30,

2025

2026

2026

2025

2026

2026

RMB'000

RMB'000

USD'000

RMB'000

RMB'000

USD'000

Total net revenues

1,086,732

1,142,180

168,337

1,920,265

2,163,166

318,811

Total cost of revenues

(236,335)

(298,361)

(43,973)

(410,741)

(500,158)

(73,714)

Gross profit

850,397

843,819

124,364

1,509,524

1,663,008

245,097

Operating expenses:

Fulfilment expenses

(63,288)

(56,089)

(8,266)

(115,131)

(117,227)

(17,277)

Selling and marketing expenses

(722,405)

(807,559)

(119,019)

(1,276,220)

(1,544,795)

(227,675)

General and administrative expenses

(84,072)

(74,815)

(11,026)

(148,955)

(155,141)

(22,865)

Research and development expenses

(36,116)

(37,250)

(5,490)

(58,753)

(76,690)

(11,303)

Total operating expenses

(905,881)

(975,713)

(143,801)

(1,599,059)

(1,893,853)

(279,120)

Loss from operations

(55,484)

(131,894)

(19,437)

(89,535)

(230,845)

(34,023)

Financial income

11,467

3,883

572

22,073

14,624

2,155

Interest expenses

-

(743)

(110)

-

(743)

(110)

Foreign currency exchange gain (loss)

5,507

402

59

16,171

(2,796)

(412)

Income from equity method investments, net

877

38,204

5,631

3,382

50,593

7,456

Other income, net

17,395

7,158

1,055

21,637

25,624

3,777

Loss before income tax expenses

(20,238)

(82,990)

(12,230)

(26,272)

(143,543)

(21,157)

Income tax benefits (expenses)

763

(7,838)

(1,155)

1,196

(9,213)

(1,358)

Net loss

(19,475)

(90,828)

(13,385)

(25,076)

(152,756)

(22,515)

Net loss attributable to non-controlling interests and redeemable non-
controlling interests

1,807

-

-

2,105

1,414

208

Net loss attributable to Yatsen's shareholders

(17,668)

(90,828)

(13,385)

(22,971)

(151,342)

(22,307)

Shares used in calculating loss per share (1):

Weighted average number of Class A and Class B ordinary shares:

   Basic

1,854,988,850

1,874,649,633

1,874,649,633

1,846,275,864

1,875,769,426

1,875,769,426

   Diluted

1,854,988,850

1,874,649,633

1,874,649,633

1,846,275,864

1,875,769,426

1,875,769,426

Net loss per Class A and Class B ordinary share

   Basic

(0.01)

(0.05)

(0.01)

(0.01)

(0.08)

(0.01)

   Diluted

(0.01)

(0.05)

(0.01)

(0.01)

(0.08)

(0.01)

Net loss per ADS (20 ordinary shares equal to 1 ADS)

   Basic

(0.19)

(0.97)

(0.14)

(0.25)

(1.61)

(0.24)

   Diluted

(0.19)

(0.97)

(0.14)

(0.25)

(1.61)

(0.24)

For the Three Months Ended June 30,

For the Six Months Ended June 30,

2025

2026

2026

2025

2026

2026

Share-based compensation expenses are included in the
operating expenses as follows:

RMB'000

RMB'000

USD'000

RMB'000

RMB'000

USD'000

Fulfilment expenses (income)

93

(46)

(7)

191

203

30

Selling and marketing expenses

1,795

2,396

353

2,552

2,544

375

General and administrative expenses

20,638

6,132

904

28,369

8,135

1,199

Research and development expenses

1,429

737

109

1,469

1,896

279

Total

23,955

9,219

1,359

32,581

12,778

1,883

(1)   Authorized share capital is re-classified and re-designated into Class A ordinary shares and Class B ordinary shares, with each Class A ordinary share being entitled to one vote and each Class B
ordinary share being entitled to twenty votes on all matters that are subject to shareholder vote.

YATSEN HOLDING LIMITED

UNAUDITED RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS

(All amounts in thousands, except for share, per share data or otherwise noted)

For the Three Months Ended June 30,

For the Six Months Ended June 30,

2025

2026

2026

2025

2026

2026

RMB'000

RMB'000

USD'000

RMB'000

RMB'000

USD'000

Loss from operations

(55,484)

(131,894)

(19,437)

(89,535)

(230,845)

(34,023)

Share-based compensation expenses

23,955

9,219

1,359

32,581

12,778

1,883

Amortization of intangible assets resulting from assets and business
acquisitions

11,147

10,624

1,566

21,708

21,383

3,151

Non-GAAP loss from operations

(20,382)

(112,051)

(16,512)

(35,246)

(196,684)

(28,989)

Net loss

(19,475)

(90,828)

(13,385)

(25,076)

(152,756)

(22,515)

Share-based compensation expenses

23,955

9,219

1,359

32,581

12,778

1,883

Amortization of intangible assets resulting from assets and business
acquisitions

11,147

10,624

1,566

21,708

21,383

3,151

Revaluation of investments on the share of equity method
investments

(3,141)

(35,578)

(5,244)

(9,151)

(46,047)

(6,786)

Tax effects on non-GAAP adjustments

(991)

7,122

1,050

(1,424)

7,951

1,172

Non-GAAP net income (loss)

11,495

(99,441)

(14,654)

18,638

(156,691)

(23,095)

Net loss attributable to Yatsen's shareholders

(17,668)

(90,828)

(13,385)

(22,971)

(151,342)

(22,307)

Share-based compensation expenses

23,955

9,219

1,359

32,581

12,778

1,883

Amortization of intangible assets resulting from assets and business
acquisitions

10,743

10,624

1,566

20,922

21,097

3,109

Revaluation of investments on the share of equity method
investments

(3,141)

(35,578)

(5,244)

(9,151)

(46,047)

(6,786)

Tax effects on non-GAAP adjustments

(963)

7,122

1,050

(1,368)

7,951

1,172

Non-GAAP net income (loss) attributable to Yatsen's
shareholders

12,926

(99,441)

(14,654)

20,013

(155,563)

(22,929)

Shares used in calculating loss per share:

Weighted average number of Class A and Class B ordinary shares:

   Basic

1,854,988,850

1,874,649,633

1,874,649,633

1,846,275,864

1,875,769,426

1,875,769,426

   Diluted

1,998,882,473

1,874,649,633

1,874,649,633

1,980,640,851

1,875,769,426

1,875,769,426

Non-GAAP net income (loss) attributable to ordinary
shareholders per Class A and Class B ordinary share

   Basic

0.01

(0.05)

(0.01)

0.01

(0.08)

(0.01)

   Diluted

0.01

(0.05)

(0.01)

0.01

(0.08)

(0.01)

Non-GAAP net income (loss) attributable to ordinary
shareholders per ADS (20 ordinary shares equal to 1 ADS)

   Basic

0.14

(1.06)

(0.16)

0.22

(1.66)

(0.24)

   Diluted

0.13

(1.06)

(0.16)

0.20

(1.66)

(0.24)

SOURCE Yatsen Holding Limited

Yatsen (NYSE:YSG – Get Free Report) and Herbalife (NYSE:HLF – Get Free Report) are both small-cap consumer staples companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, analyst recommendations, valuation and risk.

Analyst Recommendations This is a breakdown of current ratings and price targets for Yatsen and Herbalife, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Yatsen 1 0 0 0 1.00 Herbalife 0 4 3 0 2.43 Herbalife has a consensus price target of $17.00, suggesting a potential upside of 36.22%. Given Herbalife’s stronger consensus rating and higher possible upside, analysts plainly believe Herbalife is more favorable than Yatsen.

Valuation & Earnings This table compares Yatsen and Herbalife”s gross revenue, earnings per share (EPS) and valuation. Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Yatsen $614.62 million 0.47 -$11.56 million ($0.21) -14.57 Herbalife $5.04 billion 0.26 $228.30 million $1.55 8.05 Herbalife has higher revenue and earnings than Yatsen. Yatsen is trading at a lower price-to-earnings ratio than Herbalife, indicating that it is currently the more affordable of the two stocks.

Profitability This table compares Yatsen and Herbalife’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets Yatsen -3.04% -4.54% -3.49% Herbalife 3.16% -43.90% 7.89% Risk & Volatility Yatsen has a beta of -1.55, suggesting that its stock price is 255% less volatile than the S&P 500. Comparatively, Herbalife has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500.

Summary Herbalife beats Yatsen on 10 of the 12 factors compared between the two stocks.

About Yatsen (Get Free Report)

Yatsen Holding Limited, together with its subsidiaries, engages in the development and sale of beauty products under the Perfect Diary, Little Ondine, Pink Bear, Abby’s Choice, GalÃnic, DR.WU, Eve Lom, and EANTiM brands in the People’s Republic of China. The company offers color cosmetics for lips, eyes, and face; skin care products, including face serums and creams, eye creams, masks, toners, makeup removers, cleansers, ampoules, and anti-acne patches; and beauty tools and kits, sunscreen products, and beauty devices. It sells its products through stores and online channel. The company was formerly known as Mangrove Bay Ecommerce Holding (Cayman) and changed its name to Yatsen Holding Limited in January 2019. Yatsen Holding Limited was founded in 2016 and is headquartered in Guangzhou, China.

About Herbalife (Get Free Report)

Herbalife Ltd. provides health and wellness products in North America, Mexico, South and Central America, Europe, the Middle East, Africa, China, and the Asia Pacific. It offers products in the areas of weight management; targeted nutrition; energy, sports, and fitness; outer nutrition; and literature and promotional items. The company also provides weight management products, including meal replacement products, protein shakes, drink mixes, weight loss supplements, healthy snacks, and metabolism boosting teas; targeted nutrition products, which comprise functional beverages, and dietary and nutritional supplements that contain herbs, vitamins, minerals, and other natural ingredients; outer nutrition products, such as facial skin, body, and hair care products; and energy, sports, and fitness products, including N-R-G tea and energy drink products. In addition, it offers literature, promotional, and other materials that comprise start-up kits, sales tools, and educational materials. The company sells its products through sales representatives, independent service providers, and company-operated retail platforms. Herbalife Ltd. was formerly known as Herbalife Nutrition Ltd. and changed its name to Herbalife Ltd. in April 2023. The company was founded in 1980 and is headquartered in Los Angeles, California.

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, /PRNewswire/ -- Yatsen Holding Limited ("Yatsen" or the "Company") (NYSE: YSG), a leading China-based beauty group, today announced that the Company has filed its annual report on Form 20-F for the fiscal year ended December 31, 2025 with the U.S. Securities and Exchange Commission ("SEC") on April 29, 2026.

The annual report is available on the Company's investor relations website at ir.yatsenglobal.com and on the SEC's website at https://www.sec.gov/. The Company will provide hard copies of the annual report, free of charge, to its shareholders and ADS holders upon written request. Requests should be directed to Investor Relations Department, Yatsen Holding Limited, Floor 39, Poly Development Plaza, No. 832 Yue Jiang Zhong Road, Haizhu District, Guangzhou 510335, People's Republic of China.

About Yatsen Holding Limited

Yatsen Holding Limited (NYSE: YSG) is a leading China-based beauty group with the vision of becoming a world-class pioneer in beauty innovation. Founded in 2016, the Company has launched and acquired numerous color cosmetics and skincare brands including Perfect Diary, Little Ondine, Pink Bear, Galénic, DR.WU (its mainland China business), and Eve Lom. Our brands are strategically positioned to capture a wide spectrum of consumer demographics and price points, ranging from the mass market to the prestige and clinical segments. Yatsen thrives on the synergy of brand equity, product strength and operational agility, anchored by a strong commitment to R&D and consumer insights.

For more information, please visit http://ir.yatsenglobal.com/.

For investor and media inquiries, please contact:

Yatsen Holding Limited
Investor Relations
E-mail: [email protected]

SOURCE Yatsen Holding Limited

, /PRNewswire/ -- Yatsen Holding Limited ("Yatsen" or the "Company") (NYSE: YSG), a leading China-based beauty group, today announced that it will release its unaudited financial results for the first quarter of 2026, on Tuesday, May 26, 2026, before the open of the U.S. markets.

The Company's management will hold a conference call on Tuesday, May 26, 2026 at 7:30 A.M. U.S. Eastern Time (7:30 P.M. Beijing/Hong Kong Time) to discuss the financial results. Listeners may access the call by dialing the following numbers:

United States (toll free):

+1-888-346-8982

International:

+1-412-902-4272

Mainland China (toll free):

400-120-1203

Hong Kong (toll free):

800-905-945

Hong Kong:

+852-3018-4992

A live and archived webcast of the conference call will be available on the Company's investor relations website at http://ir.yatsenglobal.com.

A replay of the conference call will be accessible by phone one hour after the conclusion of the live call at the following numbers, until June 2, 2026:

United States:

+1-855-669-9658

International:

+1-412-317-0088

Replay Access Code:

4359154

About Yatsen Holding Limited

Yatsen Holding Limited (NYSE: YSG) is a leading China-based beauty group with the vision of becoming a world-class pioneer in beauty innovation. Founded in 2016, the Company has launched and acquired numerous color cosmetics and skincare brands including Perfect Diary, Little Ondine, Pink Bear, Galénic, DR.WU (its mainland China business), and Eve Lom. Our brands are strategically positioned to capture a wide spectrum of consumer demographics and price points, ranging from the mass market to the prestige and clinical segments. Yatsen thrives on the synergy of brand equity, product strength and operational agility, anchored by a strong commitment to R&D and consumer insights.

For more information, please visit http://ir.yatsenglobal.com.

For investor and media inquiries, please contact:

Yatsen Holding Limited
Investor Relations
E-mail: [email protected]

SOURCE Yatsen Holding Limited

Conference Call to Be Held at 7:30 A.M. U.S. Eastern Time on May 26, 2026

, /PRNewswire/ -- Yatsen Holding Limited ("Yatsen" or the "Company") (NYSE: YSG), a leading China-based beauty group, today announced its unaudited financial results for the quarter ended March 31, 2026.

First Quarter 2026 Highlights

Total net revenues for the first quarter of 2026 increased by 22.5% to RMB1.02 billion (US$148.0 million) from RMB833.5 million for the prior year period. Total net revenues from Skincare Brands[1] for the first quarter increased by 58.5% to RMB574.2 million (US$83.2 million) from RMB362.4 million for the prior year period. As a percentage of total net revenues, total net revenues from Skincare Brands for the first quarter of 2026 were 56.2%, as compared with 43.5% for the prior year period. Gross margin for the first quarter of 2026 increased to 80.2% from 79.1% for the prior year period. Net loss for the first quarter of 2026 was RMB61.9 million (US$9.0 million), as compared with RMB5.6 million for the prior year period. Non-GAAP net loss[2] for the first quarter of 2026 was RMB57.3 million (US$8.3 million), as compared with non-GAAP net income of RMB7.1 million for the prior year period. Mr. Jinfeng Huang, Founder, Chairman and Chief Executive Officer of Yatsen, stated, "For the first quarter of 2026, we delivered top-line growth that met our previous guidance and demonstrated the ongoing resilience of our multi-brand strategy. Our growth this quarter was primarily propelled by the sustained upward momentum of our Skincare Brands, which experienced substantial year-over-year growth of 58.5%. Guided by our vision to become a world-class pioneer in beauty innovation, we remain committed to strengthening our R&D-led innovation, expanding our hero product families, and positioning our core brands for high-quality growth. Furthermore, we are pleased to note that we completed the first closing of our private placement of convertible notes and warrants in an aggregate principal amount equivalent to approximately US$120 million, with participation from Trustar Capital, Hillhouse and myself, on May 21, 2026. This successful closing serves as a powerful testament to our shareholders' long-term confidence in Yatsen's strategic direction and future value."

Mr. Donghao Yang, Director and Chief Financial Officer of Yatsen, commented, "Our financial results for the first quarter of 2026 reflect encouraging progress in the expansion of our core brands. Total net revenues from our Skincare Brands delivered robust growth, while the combined net revenues of our three major premium and clinical skincare brands, Galénic, DR.WU and Eve Lom, grew by 61.4% year over year. Our gross margin continued its year-over-year expansion and reached 80.2%. This underlying strength underscores the structural health of our business model. While we selectively deployed resources to scale and strengthen our core brands, our commitment to long-term profitability optimization remains unwavering. Moving forward, we are focused on cost optimization to ensure that our top-line expansion efficiently translates into future margin improvement."

First Quarter 2026 Financial Results

Net Revenues

Total net revenues for the first quarter of 2026 increased by 22.5% to RMB1.02 billion (US$148.0 million) from RMB833.5 million for the prior year period. The increase was primarily due to a 58.5% year-over-year increase in net revenues from Skincare Brands, partially offset by a 5.0% year-over-year decrease in net revenues from Color Cosmetics Brands.[3]

Gross Profit and Gross Margin

Gross profit for the first quarter of 2026 increased by 24.3% to RMB819.2 million (US$118.8 million) from RMB659.1 million for the prior year period. Gross margin for the first quarter of 2026 increased to 80.2% from 79.1% for the prior year period.

Operating Expenses

Total operating expenses for the first quarter of 2026 increased by 32.5% to RMB918.1 million (US$133.1 million) from RMB693.2 million for the prior year period. As a percentage of total net revenues, total operating expenses for the first quarter of 2026 were 89.9%, as compared with 83.2% for the prior year period.

Fulfillment Expenses. Fulfillment expenses for the first quarter of 2026 were RMB61.1 million (US$8.9 million), as compared with RMB51.8 million for the prior year period. As a percentage of total net revenues, fulfillment expenses for the first quarter of 2026 decreased to 6.0% from 6.2% for the prior year period. The decrease was primarily due to further improvements in logistics efficiency. Selling and Marketing Expenses. Selling and marketing expenses for the first quarter of 2026 were RMB737.2 million (US$106.9 million), as compared with RMB553.8 million for the prior year period. As a percentage of total net revenues, selling and marketing expenses for the first quarter of 2026 increased to 72.2% from 66.4% for the prior year period. The increase was primarily driven by investments in broadening consumer awareness and building long-term brand equity of our core brands, coupled with higher traffic acquisition costs on the Douyin platform. General and Administrative Expenses. General and administrative expenses for the first quarter of 2026 were RMB80.3 million (US$11.6 million), as compared with RMB64.9 million for the prior year period. As a percentage of total net revenues, general and administrative expenses for the first quarter of 2026 were 7.9% as compared with 7.8% for the prior year period, remaining largely flat. Research and Development Expenses. Research and development expenses for the first quarter of 2026 were RMB39.4 million (US$5.7 million), as compared with RMB22.6 million for the prior year period. As a percentage of total net revenues, research and development expenses for the first quarter of 2026 increased to 3.9% from 2.7% for the prior year period. The increase was primarily driven by higher payroll expenses resulting from a rise in research and development headcount. Loss / Income from Operations

Loss from operations for the first quarter of 2026 was RMB99.0 million (US$14.3 million), as compared with RMB34.1 million for the prior year period. Operating loss margin was 9.7%, as compared with 4.1% for the prior year period.

Non-GAAP loss from operations[4] for the first quarter of 2026 was RMB84.6 million (US$12.3 million), as compared with RMB14.9 million for the prior year period. Non-GAAP operating loss margin[5] was 8.3%, as compared with 1.8% for the prior year period.

Net Loss / Income

Net loss for the first quarter of 2026 was RMB61.9 million (US$9.0 million), as compared with RMB5.6 million for the prior year period. Net loss margin was 6.1%, as compared with 0.7% for the prior year period. Net loss attributable to Yatsen's ordinary shareholders per diluted ADS[6] for the first quarter of 2026 was RMB0.64 (US$0.09), as compared with RMB0.06 for the prior year period.

Non-GAAP net loss for the first quarter of 2026 was RMB57.3 million (US$8.3 million), as compared with non-GAAP net income of RMB7.1 million for the prior year period. Non-GAAP net loss margin was 5.6%, as compared with non-GAAP net income margin of 0.9% for the prior year period. Non-GAAP net loss attributable to Yatsen's ordinary shareholders per diluted ADS[7] for the first quarter of 2026 was RMB0.60 (US$0.09), as compared with non-GAAP net income attributable to Yatsen's ordinary shareholders per diluted ADS of RMB0.07 for the prior year period.

Balance Sheet and Cash Flow

As of March 31, 2026, the Company had cash, restricted cash and short-term investments of RMB934.2 million (US$135.4 million), as compared with RMB1.05 billion as of December 31, 2025.

Net cash used in operating activities for the first quarter of 2026 was RMB90.0 million (US$13.0 million), as compared with net cash generated from operating activities of RMB23.8 million for the prior year period.

Business Outlook

For the second quarter of 2026, the Company expects its total net revenues to be between RMB1.20 billion and RMB1.30 billion, representing a year-over-year increase of approximately 10% to 20%. These forecasts reflect the Company's current and preliminary views on the market and operational conditions, which are subject to change.

Exchange Rate

This announcement contains translations of certain Renminbi ("RMB") amounts into U.S. dollars ("US$") at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to US$ were made at a rate of RMB6.8980 to US$1.00, the exchange rate in effect as of March 31, 2026, as set forth in the H.10 statistical release of The Board of Governors of the Federal Reserve System. The Company makes no representation that any RMB or US$ amounts could have been, or could be, converted into US$ or RMB, as the case may be, at any particular rate, or at all.

[1] Include net revenues from Galénic, DR.WU (its mainland China business), Eve Lom and other skincare brands of the Company.

[2] Non-GAAP net income (loss) is a non-GAAP financial measure. Non-GAAP net income (loss) is defined as net income (loss) excluding (i) share-based compensation expenses, (ii) amortization of intangible assets resulting from assets and business acquisitions, (iii) revaluation of investments on the share of equity method investments, (iv) impairment of goodwill, (v) impairment of investments and (vi) tax effects on non-GAAP adjustments.

[3] Include Perfect Diary, Little Ondine, Pink Bear and other color cosmetics brands of the Company.

[4] Non-GAAP income (loss) from operations is a non-GAAP financial measure. Non-GAAP income (loss) from operations is defined as income (loss) from operations excluding (i) share-based compensation expenses, (ii) amortization of intangible assets resulting from assets and business acquisitions and (iii) impairment of goodwill.

[5] Non-GAAP operating income (loss) margin is a non-GAAP financial measure, which is defined as non-GAAP net income (loss) from operations as a percentage of total net revenues.

[6] ADS refers to American depositary shares, each of which represents twenty Class A ordinary shares.

[7] Non-GAAP net income (loss) attributable to ordinary shareholders per diluted ADS is a non-GAAP financial measure. Non-GAAP net income (loss) attributable to ordinary shareholders per diluted ADS is defined as non-GAAP net income (loss) attributable to ordinary shareholders divided by the weighted average number of diluted ADS outstanding for computing diluted earnings per ADS. Non-GAAP net income (loss) attributable to ordinary shareholders is defined as net income (loss) attributable to ordinary shareholders excluding (i) share-based compensation expenses, (ii) amortization of intangible assets resulting from assets and business acquisitions, (iii) revaluation of investments on the share of equity method investments, (iv) impairment of goodwill, (v) impairment of investments, (vi) tax effects on non-GAAP adjustments and (vii) accretion to redeemable non-controlling interests.

Conference Call Information

The Company's management will hold a conference call on Tuesday, May 26, 2026, at 7:30 A.M. U.S. Eastern Time or 7:30 P.M. Beijing Time to discuss its financial results and operating performance for the first quarter of 2026.

United States (toll free):

+1-888-346-8982

International:

+1-412-902-4272

Mainland China (toll free):

400-120-1203

Hong Kong, SAR (toll free):

800-905-945

Hong Kong, SAR:

+852-3018-4992

The replay will be accessible through Tuesday, June 2, by dialing the following numbers:

United States:

+1-855-669-9658

International:

+1-412-317-0088

Replay Access Code:

4359154

A live and archived webcast of the conference call will also be available on the Company's investor relations website at http://ir.yatsenglobal.com.

About Yatsen Holding Limited

Yatsen Holding Limited (NYSE: YSG) is a leading China-based beauty group with the vision of becoming a world-class pioneer in beauty innovation. Founded in 2016, the Company has launched and acquired numerous color cosmetics and skincare brands including Perfect Diary, Little Ondine, Pink Bear, Galénic, DR.WU (its mainland China business), and Eve Lom. Our brands are strategically positioned to capture a wide spectrum of consumer demographics and price points, ranging from the mass market to the prestige and clinical segments. Yatsen thrives on the synergy of brand equity, product strength and operational agility, anchored by a strong commitment to R&D and consumer insights.

For more information, please visit http://ir.yatsenglobal.com.

Use of Non-GAAP Financial Measures

The Company uses non-GAAP income (loss) from operations, non-GAAP operating income (loss) margin, non-GAAP net income (loss), non-GAAP net income (loss) margin, non-GAAP net income (loss) attributable to ordinary shareholders and non-GAAP net income (loss) attributable to ordinary shareholders per diluted ADS, each a non-GAAP financial measure, in reviewing and assessing its operating performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. The Company presents these non-GAAP financial measures because they are used by the management to evaluate operating performance and formulate business plans. Non-GAAP financial measures help identify underlying trends in its business, provide further information about its results of operations, and enhance the overall understanding of its past performance and future prospects. The Company defines non-GAAP income (loss) from operations as income (loss) from operations excluding (i) share-based compensation expenses, (ii) amortization of intangible assets resulting from assets and business acquisitions and (iii) impairment of goodwill. Non-GAAP operating income (loss) margin is non-GAAP income (loss) from operations as a percentage of total net revenues. The Company defines non-GAAP net income (loss) as net income (loss) excluding (i) share-based compensation expenses, (ii) amortization of intangible assets resulting from assets and business acquisitions, (iii) revaluation of investments on the share of equity method investments, (iv) impairment of goodwill, (v) impairment of investments and (vi) tax effects on non-GAAP adjustments. Non-GAAP net income (loss) margin is non-GAAP net income (loss) as a percentage of total net revenues. The Company defines non-GAAP net income (loss) attributable to ordinary shareholders as net income (loss) attributable to ordinary shareholders excluding (i) share-based compensation expenses, (ii) amortization of intangible assets resulting from assets and business acquisitions, (iii) revaluation of investments on the share of equity method investments, (iv) impairment of goodwill, (v) impairment of investments, (vi) tax effects on non-GAAP adjustments and (vii) accretion to redeemable non-controlling interests. Non-GAAP net income (loss) attributable to ordinary shareholders per diluted ADS is computed using non-GAAP net income (loss) attributable to ordinary shareholders divided by weighted average number of diluted ADS outstanding for computing diluted earnings per ADS.

However, the non-GAAP financial measures have limitations as analytical tools as the non-GAAP financial measures are not presented in accordance with U.S. GAAP and may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited. The Company compensates for these limitations by reconciling the non-GAAP financial measures to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating performance. The Company encourages investors and others to review its financial information in its entirety and not rely on a single financial measure. Reconciliations of Yatsen's non-GAAP financial measures to the most comparable U.S. GAAP measure are included at the end of this press release.

Safe Harbor Statement

This announcement contains statements that may constitute "forward-looking" statements which are made pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "aims," "future," "intends," "plans," "believes," "estimates," "likely to," and similar statements. The Company may also make written or oral forward-looking statements in its periodic reports to the Securities and Exchange Commission ("SEC"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company's beliefs, plans, outlook and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company's growth strategies; its future business development, results of operations and financial condition; its ability to continue to roll out popular products and maintain popularity of existing products; its ability to anticipate and respond to changes in industry trends and consumer preferences and behavior in a timely manner; its ability to attract and retain new customers and to increase revenues generated from repeat customers; its expectations regarding demand for and market acceptance of its products and services; its ability to integrate newly-acquired businesses and brands; trends and competition in and relevant government policies and regulations relating to China's beauty market; changes in its revenues and certain cost or expense items; and general economic conditions globally and in China. Further information regarding these and other risks is included in the Company's filings with the SEC. All information provided in this press release is as of the date of this press release, and the Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

For investor and media inquiries, please contact:

Yatsen Holding Limited
Investor Relations
E-mail: [email protected]

YATSEN HOLDING LIMITED

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(All amounts in thousands, except for share, per share data or otherwise noted)

December 31,

March 31,

March 31,

2025

2026

2026

RMB'000

RMB'000

USD'000

Assets

Current assets

Cash and cash equivalents

765,379

876,144

127,014

Restricted Cash

42,117

58,036

8,413

Short-term investments

246,008

-

-

Accounts receivable, net

220,870

183,701

26,631

Inventories, net

508,730

573,339

83,117

Prepayments and other current assets

450,970

440,103

63,802

Amounts due from related parties

114

53

8

Total current assets

2,234,188

2,131,376

308,985

Non-current assets

Investments

653,560

667,995

96,839

Property and equipment, net

77,014

71,982

10,435

Goodwill, net

155,029

155,029

22,474

Intangible assets, net

537,509

509,249

73,826

Deferred tax assets

1,435

1,040

151

Right-of-use assets, net

173,915

158,718

23,009

Other non-current assets

14,332

22,151

3,211

Total non-current assets

1,612,794

1,586,164

229,945

Total assets

3,846,982

3,717,540

538,930

Liabilities, redeemable non-controlling interests and shareholders'
equity

Current liabilities

Accounts and notes payable

149,371

154,805

22,442

Advances from customers

28,821

29,480

4,274

Accrued expenses and other liabilities

348,700

322,994

46,824

Amounts due to related parties

21,262

19,412

2,814

Income tax payables

13,690

13,778

1,997

Lease liabilities due within one year

53,435

53,039

7,689

Total current liabilities

615,279

593,508

86,040

Non-current liabilities

Deferred tax liabilities

107,906

106,052

15,374

Lease liabilities

123,157

110,184

15,973

Total non-current liabilities

231,063

216,236

31,347

Total liabilities

846,342

809,744

117,387

Redeemable non-controlling interests

1,337

1,337

194

Shareholders' equity

Ordinary Shares (US$0.00001 par value; 10,000,000,000 ordinary
shares authorized, comprising of 6,000,000,000 Class A ordinary
shares, 960,852,606 Class B ordinary shares and 3,039,147,394
shares each of such classes to be designated as of December 31,
2025 and March 31, 2026; 2,096,600,883 Class A shares and
600,572,880 Class B ordinary shares issued as of December 31,
2025 and March 31, 2026; 1,276,663,163 Class A ordinary shares
and 600,572,880 Class B ordinary shares outstanding as of
December 31, 2025, 1,275,536,483 Class A ordinary shares and
600,572,880 Class B ordinary shares outstanding as of March 31,
2026)

173

173

25

Treasury shares

(1,250,678)

(1,253,378)

(181,702)

Additional paid-in capital

12,296,367

12,297,001

1,782,691

Statutory reserve

31,527

31,527

4,570

Accumulated deficit

(8,141,545)

(8,202,059)

(1,189,049)

Accumulated other comprehensive income

74,760

45,910

6,657

Total Yatsen Holding Limited shareholders' equity

3,010,604

2,919,174

423,192

Non-controlling interests

(11,301)

(12,715)

(1,843)

Total shareholders' equity

2,999,303

2,906,459

421,349

Total liabilities, redeemable non-controlling interests and
shareholders' equity

3,846,982

3,717,540

538,930

YATSEN HOLDING LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(All amounts in thousands, except for share, per share data or otherwise noted)

For the Three Months Ended March 31,

2025

2026

2026

RMB'000

RMB'000

USD'000

Total net revenues

833,533

1,020,986

148,012

Total cost of revenues

(174,406)

(201,797)

(29,254)

Gross profit

659,127

819,189

118,758

Operating expenses:

Fulfilment expenses

(51,843)

(61,138)

(8,863)

Selling and marketing expenses

(553,815)

(737,236)

(106,877)

General and administrative expenses

(64,883)

(80,326)

(11,645)

Research and development expenses

(22,637)

(39,440)

(5,718)

Total operating expenses

(693,178)

(918,140)

(133,103)

Loss from operations

(34,051)

(98,951)

(14,345)

Financial income

10,606

10,741

1,557

Foreign currency exchange gain (loss)

10,664

(3,198)

(464)

Income from equity method investments, net

2,505

12,389

1,796

Other income, net

4,242

18,466

2,677

Loss before income tax expenses

(6,034)

(60,553)

(8,779)

Income tax benefits (expenses)

433

(1,375)

(199)

Net loss

(5,601)

(61,928)

(8,978)

Net loss attributable to non-controlling interests and redeemable non-
controlling interests

298

1,414

205

Net loss attributable to Yatsen's shareholders

(5,303)

(60,514)

(8,773)

Shares used in calculating loss per share (1):

Weighted average number of Class A and Class B ordinary shares:

    Basic

1,837,466,068

1,876,901,662

1,876,901,662

    Diluted

1,837,466,068

1,876,901,662

1,876,901,662

Net loss per Class A and Class B ordinary share

    Basic

(0.00)

(0.03)

(0.00)

    Diluted

(0.00)

(0.03)

(0.00)

Net loss per ADS (20 ordinary shares equal to 1 ADS) (2)

    Basic

(0.06)

(0.64)

(0.09)

    Diluted

(0.06)

(0.64)

(0.09)

For the Three Months Ended March 31,

2025

2026

2026

Share-based compensation expenses are included in the
operating expenses as follows:

RMB'000

RMB'000

USD'000

Fulfilment expenses

98

249

36

Selling and marketing expenses

757

148

21

General and administrative expenses

7,731

2,003

290

Research and development expenses

40

1,159

168

Total

8,626

3,559

515

(1)  Authorized share capital is re-classified and re-designated into Class A ordinary shares and Class B ordinary shares, with each
Class A ordinary share being entitled to one vote and each Class B ordinary share being entitled to twenty votes on all matters that
are subject to shareholder vote.

YATSEN HOLDING LIMITED

UNAUDITED RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS

(All amounts in thousands, except for share, per share data or otherwise noted)

For the Three Months Ended March 31,

2025

2026

2026

RMB'000

RMB'000

USD'000

Loss from operations

(34,051)

(98,951)

(14,345)

Share-based compensation expenses

8,626

3,559

515

Amortization of intangible assets resulting from assets and business
acquisitions

10,561

10,759

1,560

Non-GAAP loss from operations

(14,864)

(84,633)

(12,270)

Net loss

(5,601)

(61,928)

(8,978)

Share-based compensation expenses

8,626

3,559

515

Amortization of intangible assets resulting from assets and business
acquisitions

10,561

10,759

1,560

Revaluation of investments on the share of equity method
investments

(6,010)

(10,469)

(1,518)

Tax effects on non-GAAP adjustments

(433)

829

120

Non-GAAP net income (loss)

7,143

(57,250)

(8,301)

Net loss attributable to Yatsen's shareholders

(5,303)

(60,514)

(8,773)

Share-based compensation expenses

8,626

3,559

515

Amortization of intangible assets resulting from assets and business
acquisitions

10,179

10,473

1,518

Revaluation of investments on the share of equity method
investments

(6,010)

(10,469)

(1,518)

Tax effects on non-GAAP adjustments

(405)

829

120

Non-GAAP net income (loss) attributable to Yatsen's
shareholders

7,087

(56,122)

(8,138)

Shares used in calculating loss per share:

Weighted average number of Class A and Class B ordinary shares:

    Basic

1,837,466,068

1,876,901,662

1,876,901,662

    Diluted

1,953,491,427

1,876,901,662

1,876,901,662

Non-GAAP net income (loss) attributable to ordinary
shareholders per Class A and Class B ordinary share

    Basic

0.00

(0.03)

(0.00)

    Diluted

0.00

(0.03)

(0.00)

Non-GAAP net income (loss) attributable to ordinary
shareholders per ADS (20 ordinary shares equal to 1 ADS) (1)

    Basic

0.08

(0.60)

(0.09)

    Diluted

0.07

(0.60)

(0.09)

SOURCE Yatsen Holding Limited

Yatsen Holding Limited (YSG) Q1 2026 Earnings Call Transcript