Conference Call to Be Held at 7:30 A.M. U.S. Eastern Time on November 17, 2025
GUANGZHOU, China, Nov. 17, 2025 /PRNewswire/ -- Yatsen Holding Limited ("Yatsen" or the "Company") $(YSG)$, a leading China-based beauty group, today announced its unaudited financial results for the third quarter ended September 30, 2025.
Third Quarter 2025 Highlights
-- Total net revenues for the third quarter of 2025 increased by 47.5% to
RMB998.4 million (US$140.2 million) from RMB677.0 million for the prior
year period.
-- Total net revenues from Skincare Brands[1] for the third quarter of 2025
increased by 83.2% to RMB490.8 million (US$68.9 million) from RMB267.9
million for the prior year period. As a percentage of total net revenues,
total net revenues from Skincare Brands for the third quarter of 2025
were 49.2%, as compared with 39.6% for the prior year period.
-- Gross margin for the third quarter of 2025 increased to 78.2% from 75.9%
for the prior year period.
-- Net loss for the third quarter of 2025 narrowed by 41.9% to RMB70.4
million (US$9.9 million) from RMB121.1 million for the prior year period.
Non-GAAP net loss[2]for the third quarter of 2025 narrowed by 32.8% to
RMB51.5 million (US$7.2 million) from RMB76.6 million for the prior year
period.
Mr. Jinfeng Huang, Founder, Chairman and Chief Executive Officer of Yatsen, stated, "Today's results reflect the continued progress of our strategy to build a competitive and resilient brand portfolio. During the third quarter, we once again achieved revenue growth, with our skincare brands significantly outperforming the market. Our major brands continued to introduce new products, for instance, DR.WU's PDRN Serum and Galénic's No.3 VB Serum. Our robust product pipelines have positioned us well for the upcoming Double 11 shopping festival. We remain focused on accelerating brand and product innovation to drive sustainable, long-term growth."
Mr. Donghao Yang, Director and Chief Financial Officer of Yatsen, commented, "Our third quarter total net revenues grew by 47.5% year over year, exceeding our previous guidance. While we made upfront investments in new hero product launches and preparations for the Double 11 shopping festival, our ongoing efforts to enhance gross margin and optimize operating efficiency still led to a meaningful year-over-year improvement in our loss margin. We will continue to refine our cost structure and remain confident in the resources and capabilities supporting the Company's future growth."
Third Quarter 2025 Financial Results
Net Revenues
Total net revenues for the third quarter of 2025 increased by 47.5% to RMB998.4 million (US$140.2 million) from RMB677.0 million for the prior year period. The increase was primarily due to an 83.2% year-over-year increase in net revenues from Skincare Brands, combined with a 25.2% year-over-year increase in net revenues from Color Cosmetics Brands.([3])
Gross Profit and Gross Margin
Gross profit for the third quarter of 2025 increased by 51.9% to RMB780.5 million (US$109.6 million) from RMB513.8 million for the prior year period. Gross margin for the third quarter of 2025 increased to 78.2% from 75.9% for the prior year period. The increase was primarily driven by an increase in sales of higher-gross-margin products.
Operating Expenses
Total operating expenses for the third quarter of 2025 increased by 31.9% to RMB864.1 million (US$121.4 million) from RMB655.2 million for the prior year period. As a percentage of total net revenues, total operating expenses for the third quarter of 2025 were 86.5%, as compared with 96.8% for the prior year period.
-- Fulfillment Expenses. Fulfillment expenses for the third quarter of 2025
were RMB61.8 million (US$8.7 million), as compared with RMB50.4 million
for the prior year period. As a percentage of total net revenues,
fulfillment expenses for the third quarter of 2025 decreased to 6.2% from
7.4% for the prior year period. The decrease was primarily driven by
fulfillment cost optimization, coupled with the leveraging effect of
higher total net revenues in the third quarter of 2025.
-- Selling and Marketing Expenses. Selling and marketing expenses for the
third quarter of 2025 were RMB682.3 million (US$95.8 million), as
compared with RMB494.4 million for the prior year period. As a percentage
of total net revenues, selling and marketing expenses for the third
quarter of 2025 decreased to 68.3% from 73.0% for the prior year period.
The decrease was primarily driven by the leveraging effect of higher
total net revenues in the third quarter of 2025.
-- General and Administrative Expenses. General and administrative expenses
for the third quarter of 2025 were RMB80.2 million (US$11.3 million), as
compared with RMB85.0 million for the prior year period. As a percentage
of total net revenues, general and administrative expenses for the third
quarter of 2025 decreased to 8.0% from 12.6% for the prior year period.
The decrease was primarily driven by lower share-based compensation
expenses, coupled with the leveraging effect of higher total net revenues
in the third quarter of 2025.
-- Research and Development Expenses. Research and development expenses for
the third quarter of 2025 were RMB39.8 million (US$5.6 million), as
compared with RMB25.3 million for the prior year period. As a percentage
of total net revenues, research and development expenses for the third
quarter of 2025 increased to 4.0% from 3.7% for the prior year period.
The increase was primarily driven by higher payroll expenses resulting
from a rise in research and development headcount.
Loss from Operations
Loss from operations for the third quarter of 2025 was RMB83.6 million (US$11.7 million), as compared with RMB141.3 million for the prior year period. Operating loss margin was 8.4%, as compared with 20.9% for the prior year period.
Non-GAAP loss from operations([4]) for the third quarter of 2025 was RMB60.6 million (US$8.5 million), as compared with RMB98.5 million for the prior year period. Non-GAAP operating loss margin([5]) was 6.1%, as compared with 14.5% for the prior year period.
Net Loss / Income
Net loss for the third quarter of 2025 was RMB70.4 million (US$9.9 million), as compared with RMB121.1 million for the prior year period. Net loss margin was 7.0%, as compared with 17.9% for the prior year period. Net loss attributable to Yatsen's ordinary shareholders per diluted ADS([6]) for the third quarter of 2025 was RMB0.70 (US$0.10), as compared with RMB1.22 for the prior year period.
Non-GAAP net loss for the third quarter of 2025 was RMB51.5 million (US$7.2 million), as compared with RMB76.6 million for the prior year period. Non-GAAP net loss margin was 5.2%, as compared with 11.3% for the prior year period. Non-GAAP net loss attributable to Yatsen's ordinary shareholders per diluted ADS([7]) for the third quarter of 2025 was RMB0.50 (US$0.07), as compared with RMB0.77 for the prior year period.
Balance Sheet and Cash Flow
As of September 30, 2025, the Company had cash, restricted cash and short-term investments of RMB1.16 billion (US$162.6 million), as compared with RMB1.36 billion as of December 31, 2024.
Net cash used in operating activities for the third quarter of 2025 was RMB126.8 million (US$17.8 million), as compared with RMB175.9 million for the prior year period.
Business Outlook
For the fourth quarter of 2025, the Company expects its total net revenues to be between RMB1.32 billion and RMB1.49 billion, representing a year-over-year increase of approximately 15% to 30%. These forecasts reflect the Company's current and preliminary views on the market and operational conditions, which are subject to change.
Exchange Rate
This announcement contains translations of certain Renminbi ("RMB") amounts into U.S. dollars ("US$") 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 RMB7.1190 to US$1.00, the exchange rate in effect as of September 30, 2025, as set forth in the H.10 statistical release of The Board of Governors of the Federal Reserve System. The Company makes no representation that any RMB or US$ 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 and (v) 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 loss from operations is a non-GAAP financial measure. Non-GAAP loss from operations is defined as 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 loss margin is a non-GAAP financial measure, which is defined as non-GAAP net 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) tax effects on non-GAAP adjustments and (vi) accretion to redeemable non-controlling interests.
Conference Call Information
The Company's management will hold a conference call on Monday, November 17, 2025, at 7:30 A.M. U.S. Eastern Time or 8:30 P.M. Beijing Time to discuss its financial results and operating performance for the third quarter of 2025.
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 Monday, November 24, by dialing the following numbers:
United States: +1-877-344-7529 International: +1-412-317-0088 Replay Access Code: 4338347
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 mission of creating an exciting new journey of beauty discovery for consumers around the world. 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. The Company's flagship brand, Perfect Diary, is one of the leading color cosmetics brands in China in terms of retail sales value. The Company primarily reaches and engages with customers directly both online and offline, with expansive presence across all major e-commerce, social and content platforms in China.
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 and (v) 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) tax effects on non-GAAP adjustments and (vi) 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 measure 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: ir@yatsenglobal.com
YATSEN HOLDING LIMITED UNAUDITED CONDENSED CONSOLIDATED
BALANCE SHEETS (All amounts in thousands, except for share,
per share data or otherwise noted)
September
December 31, 30, September 30,
------------ ----------- -------------
2024 2025 2025
------------ ----------- -------------
RMB'000 RMB'000 USD'000
Assets
Current assets
Cash and cash
equivalents 817,395 690,189 96,950
Restricted Cash - 119,039 16,721
Short-term
investments 539,130 348,170 48,907
Accounts
receivable, net 214,558 276,479 38,837
Inventories, net 386,054 479,663 67,378
Prepayments and
other current
assets 381,404 452,241 63,526
Amounts due from
related parties 9,113 64 9
----------- ----------- -------------
Total current
assets 2,347,654 2,365,845 332,328
----------- ----------- -------------
Non-current
assets
Investments 664,579 666,891 93,678
Property and
equipment, net 74,373 74,471 10,461
Goodwill, net 155,029 155,029 21,777
Intangible assets,
net 559,708 555,570 78,040
Deferred tax
assets 1,381 1,453 204
Right-of-use
assets, net 147,501 176,530 24,797
Other non-current
assets 20,642 24,996 3,511
----------- ----------- -------------
Total non-current
assets 1,623,213 1,654,940 232,468
----------- ----------- -------------
Total assets 3,970,867 4,020,785 564,796
=========== =========== =============
Liabilities,
redeemable
non-controlling
interests and
shareholders'
equity
Current
liabilities
Accounts and notes
payable 72,090 254,244 35,713
Advances from
customers 19,574 26,562 3,731
Accrued expenses
and other
liabilities 460,143 383,480 53,867
Amounts due to
related parties 28,884 39,228 5,510
Income tax
payables 20,088 16,234 2,280
Lease liabilities
due within one
year 39,409 52,275 7,343
----------- ----------- -------------
Total current
liabilities 640,188 772,023 108,444
----------- ----------- -------------
Non-current
liabilities
Deferred tax
liabilities 103,306 105,252 14,785
Deferred
income-non
current 14,832 2,665 374
Lease liabilities 109,526 127,697 17,937
----------- ----------- -------------
Total non-current
liabilities 227,664 235,614 33,096
----------- ----------- -------------
Total liabilities 867,852 1,007,637 141,540
----------- ----------- -------------
Redeemable
non-controlling
interests 50,984 1,337 188
----------- ----------- -------------
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,
2024 and
September 30,
2025;
2,096,600,883
Class A shares
and 600,572,880
Class B ordinary
shares issued as
of December 31,
2024 and
September 30,
2025;
1,234,627,468
Class A ordinary
shares and
600,572,880 Class
B ordinary shares
outstanding as of
December 31,
2024,
1,279,511,783
Class A ordinary
shares and
600,572,880 Class
B ordinary shares
outstanding as of
September 30,
2025) 173 173 24
Treasury shares (1,276,330) (1,242,567) (174,542)
Additional paid-in
capital 12,273,767 12,289,222 1,726,257
Statutory reserve 28,147 28,147 3,954
Accumulated
deficit (8,057,297) (8,146,230) (1,144,294)
Accumulated other
comprehensive
income 86,866 89,682 12,598
----------- ----------- -------------
Total Yatsen
Holding Limited
shareholders'
equity 3,055,326 3,018,427 423,997
----------- ----------- -------------
Non-controlling
interests (3,295) (6,616) (929)
----------- ----------- -------------
Total shareholders'
equity 3,052,031 3,011,811 423,068
----------- ----------- -------------
Total liabilities,
redeemable
non-controlling
interests and
shareholders'
equity 3,970,867 4,020,785 564,796
----------- ----------- -------------
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 September 30,
--------------------------------------------
2024 2025 2025
-------------- ------------- -------------
RMB'000 RMB'000 USD'000
Total net revenues 677,016 998,416 140,247
Total cost of revenues (163,191) (217,934) (30,613)
------------- ------------- -------------
Gross profit 513,825 780,482 109,634
------------- ------------- -------------
Operating expenses:
Fulfilment expenses (50,412) (61,770) (8,677)
Selling and marketing
expenses (494,357) (682,297) (95,842)
General and
administrative
expenses (85,046) (80,230) (11,270)
Research and
development
expenses (25,338) (39,755) (5,584)
Total operating
expenses (655,153) (864,052) (121,373)
------------- ------------- -------------
Loss from operations (141,328) (83,570) (11,739)
------------- ------------- -------------
Financial income 7,722 11,701 1,644
Foreign currency
exchange gain
(loss) 12,825 (3,973) (558)
(Loss) income from
equity method
investments, net (6,510) 254 36
Other income, net 6,239 4,903 689
------------- ------------- -------------
Loss before income tax
expenses (121,052) (70,685) (9,928)
------------- ------------- -------------
Income tax (expenses)
benefits (4) 310 44
------------- ------------- -------------
Net loss (121,056) (70,375) (9,884)
------------- ------------- -------------
Net (income) loss
attributable to
non-controlling
interests and
redeemable
non-controlling
interests (11) 4,413 620
Net loss attributable
to Yatsen's
shareholders (121,067) (65,962) (9,264)
============= ============= =============
Shares used in
calculating loss per
share (1):
Weighted average
number of Class A
and Class B ordinary
shares:
Basic 1,986,538,509 1,877,659,636 1,877,659,636
Diluted 1,986,538,509 1,877,659,636 1,877,659,636
Net loss per Class A
and Class B ordinary
share
Basic (0.06) (0.04) (0.00)
Diluted (0.06) (0.04) (0.00)
Net loss per ADS (20
ordinary shares
equal to 1 ADS)
Basic (1.22) (0.70) (0.10)
Diluted (1.22) (0.70) (0.10)
For the Three Months Ended September
30,
---------------------------------------
2024 2025 2025
------------ ------------ -----------
Share-based
compensation
expenses are
included in the
operating
expenses as
follows: RMB'000 RMB'000 USD'000
Fulfilment
expenses 252 20 3
Selling and
marketing
expenses 2,289 996 140
General and
administrative
expenses 23,743 9,337 1,312
Research and
development
expenses 763 2,108 296
----------- ------------ -----------
Total 27,047 12,461 1,751
----------- ------------ -----------
(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 September 30,
--------------------------------------------
2024 2025 2025
-------------- ------------- -------------
RMB'000 RMB'000 USD'000
Loss from operations (141,328) (83,570) (11,739)
Share-based
compensation
expenses 27,047 12,461 1,751
Amortization of
intangible assets
resulting from assets
and business
acquisitions 15,779 10,519 1,478
------------- ------------- -------------
Non-GAAP loss from
operations (98,502) (60,590) (8,510)
------------- ------------- -------------
Net loss (121,056) (70,375) (9,884)
Share-based
compensation
expenses 27,047 12,461 1,751
Amortization of
intangible assets
resulting from assets
and business
acquisitions 15,779 10,519 1,478
Revaluation of
investments on the
share of equity
method investments 3,266 (3,213) (451)
Tax effects on
non-GAAP adjustments (1,586) (866) (122)
------------- ------------- -------------
Non-GAAP net loss (76,550) (51,474) (7,228)
------------- ------------- -------------
Net loss attributable
to Yatsen's
shareholders (121,067) (65,962) (9,264)
Share-based
compensation
expenses 27,047 12,461 1,751
Amortization of
intangible assets
resulting from assets
and business
acquisitions 15,385 10,240 1,438
Revaluation of
investments on the
share of equity
method investments 3,266 (3,213) (451)
Tax effects on
non-GAAP adjustments (1,559) (866) (122)
Non-GAAP net loss
attributable to
Yatsen's
shareholders (76,928) (47,340) (6,648)
------------- ------------- -------------
Shares used in
calculating loss per
share:
Weighted average
number of Class A
and Class B ordinary
shares:
Basic 1,986,538,509 1,877,659,636 1,877,659,636
Diluted 1,986,538,509 1,877,659,636 1,877,659,636
Non-GAAP net loss
attributable to
ordinary
shareholders per
Class A and Class B
ordinary share
Basic (0.04) (0.03) (0.00)
Diluted (0.04) (0.03) (0.00)
Non-GAAP net loss
attributable to
ordinary
shareholders per ADS
(20 ordinary shares
equal to 1 ADS)
Basic (0.77) (0.50) (0.07)
Diluted (0.77) (0.50) (0.07)
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SOURCE Yatsen Holding Limited
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November 17, 2025 05:00 ET (10:00 GMT)
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