Core Insights - The performance of domestic beauty companies in China is showing significant divergence, with some achieving remarkable growth while others face declines, indicating a reshaping of the market landscape [1][4][42] Group 1: Company Performance - Proya has become the first domestic beauty company to enter the 10 billion yuan club, with a revenue of 10.778 billion yuan, growing by 21.04% [2] - Other companies like Shangmei and Juzi Biological also reported substantial revenue increases of 62.08% and 57.17% respectively, while Shanghai Jahwa experienced a revenue decline of 13.93% [2][3] - Six beauty companies have revenues exceeding 5 billion yuan, suggesting that this threshold will soon become a significant benchmark for the top 10 domestic beauty brands [1] Group 2: Profitability Trends - Juzi Biological leads in profitability with a profit of 2.062 billion yuan, up 42.06%, while Proya's profit reached 1.552 billion yuan, growing by 30% [3] - In contrast, Shanghai Jahwa reported a loss of 833 million yuan, marking a 266.60% decline, highlighting the stark differences in profitability among companies [3][11] Group 3: Market Dynamics - The current market dynamics indicate a shift towards efficacy-driven products, with companies that successfully launched standout products seeing better performance [4][5] - The competition is intensifying, with new entrants emerging and established brands needing to adapt to changing consumer preferences and market trends [7][30] Group 4: R&D and Strategic Focus - Companies are increasingly focusing on R&D, with most reporting a rise in R&D expenditures, indicating a strategic shift towards innovation and efficacy [20][21] - The trend of acquisitions and investments in technology is becoming a key strategy for companies aiming to enhance market share and scale [23][24] Group 5: Emerging Opportunities - The male skincare market is growing rapidly, presenting new opportunities for brands to capture this segment [36] - The aging population is creating demand for products targeting older consumers, which remains largely untapped [39] - As online sales plateau, brands are shifting focus to offline channels, indicating a potential new battleground for market share [40]

Core Viewpoint - Yatsen Holding Limited, a leading beauty group based in China, is set to release its unaudited financial results for Q1 2025 on May 16, 2025, before U.S. market opening [1]. Financial Results Announcement - The financial results will be discussed in a conference call scheduled for May 16, 2025, at 7:30 A.M. U.S. Eastern Time [2]. - The call can be accessed via multiple toll-free numbers for the U.S., international, and Mainland China listeners [2]. Company Overview - Yatsen Holding Limited was founded in 2016 and has launched and acquired several beauty brands, including Perfect Diary, Little Ondine, and DR.WU [3]. - Perfect Diary is recognized as one of the leading color cosmetics brands in China based on retail sales value [3]. - The company engages with customers through both online and offline channels, maintaining a strong presence across major e-commerce and social platforms in China [3].

Market Capitalization Overview - The market capitalizations of various companies are listed, with notable figures including 74.11 billion, 88.55 billion, and 76.47 billion [2] - Companies such as SON, VIPS, and TAL have market caps of 72.19 billion, 60.28 billion, and 55.72 billion respectively [2] Stock Performance - Stock price changes are highlighted, with SON showing a decrease of 0.95 (-1.99%) while VIPS increased by 0.15 (+0.85%) [2] - Other companies like TAL and Lufax also experienced minor fluctuations, with TAL decreasing by 0.04 (-0.49%) and Lufax increasing by 0.96 (+3.75%) [2] Additional Company Insights - Companies such as Huya and Yatsen have market caps of 8.06 billion and 3.27 billion respectively, with stock price changes of -0.03 (-0.77%) and 0.00 (0.00%) [2] - The performance of companies like New Oxygen and Huami Technology is also noted, with market caps of 83.07 million and 37.63 million, showing no change in stock price [3] Summary of Smaller Companies - Smaller companies like Tuniu and Cheetah Mobile have market caps of 1.08 billion and 1.17 billion respectively, with Tuniu experiencing a slight decrease of -0.01 (-1.20%) [3] - The market cap of Baosheng E-commerce is reported at 2.02 billion, with a stock price increase of 0.17 (+5.18%) [3]

Market Capitalization Overview - The market capitalizations of various companies are listed, with notable figures including 90.02 billion for Miniso and 80.60 billion for Vipshop [2] - Other companies such as TAL Education and JD.com have market caps of 53.23 billion and 41.96 billion respectively [2] Stock Performance - Miniso's stock decreased by 1.36%, while Vipshop's fell by 0.79% [2] - TAL Education saw a slight increase of 0.20%, contrasting with declines in other companies like JD.com, which dropped by 0.68% [2] Company Specifics - Companies like Lexin and Huya reported market caps of 18.58 billion and 8.43 billion respectively, with stock performance showing a decrease of 1.03% and 0.74% [2] - The market cap for companies such as Yihua and Qudian is significantly lower, at 4.97 billion and 4.47 billion respectively, with stable stock performance [2] Emerging Companies - Smaller companies like Baosheng E-commerce and Tuniu have market caps of 1.59 billion and 1.08 billion, with stock performance showing declines of 4.23% and 1.17% [4] - Newer entrants like Yunda and Kaixin Auto have market caps of 107.62 million and 100.23 million, with minimal stock changes [4]

2 0 2 4年在国货美妆发展史上是值得记录一年： 一方面，国内诞生首个突破百亿美妆企业，珀莱雅以1 0 7 . 7 8亿元营收首次跻身"百亿俱乐部"， 成 为 行 业 里 程 碑 事 件 ； 同 时 ， 十 强 门 槛 抬 高 至 近 3 0 亿 元 ， 前 十 总 营 收 规 模 扩 大 至 5 4 3 . 7 7 亿 元。 另一方面，前十座次发生较大变化，毛戈平首次闯入榜单，上海家化、华熙生物等企业持续步 入变革期深水区，迎来业绩"震荡"。 在"突飞猛进"与震荡调整并存的阶段，头部国货企业的发展预示着行业怎样的未来？ 综 合 2 0 2 1 年 至 2 0 2 4 年 国 货 美 妆 上 市 企 业 十 强 榜 单 情 况 来 看 ， 可 以 发 现 ， 名 次 发 生 了 较 大 变 化。每一年的前三名都不相同，并且持续有"突围者"闯入榜单，例如2 0 2 4年的毛戈平。 | | | | 2021年至2024年国货美妆上市企业十强榜单 | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | -- ...

Core Insights - Perfect Diary's new product, the "Bionic Film" essence foundation, utilizes the third-generation Biotec™ technology, which has garnered significant industry attention and aims to redefine the standards of foundation technology [1][3] - The brand has focused on "makeup-nourishing technology" for three years, leading to substantial technological advancements and a comprehensive innovation layout from raw material research to clinical validation [1][3] Industry Trends - The global color cosmetics market is undergoing a structural transformation towards "skincare integration," with Perfect Diary at the forefront of this trend through its continuous exploration and technological achievements in the "makeup-nourishing" field [2] - Three major trends have been identified in the market: traditional color cosmetics claiming better skincare benefits, multi-functional claims, and the emergence of new cross-category products [2] Product Innovation - The third-generation Biotec™ technology enables the new foundation to achieve 24-hour wear and oil control while enhancing barrier protection and wrinkle reduction [3] - Clinical tests conducted by authoritative institutions, such as Ruijin Hospital, showed significant improvements in skin barrier function (31.90%), skin hydration (26.02%), and a reduction in under-eye wrinkles (43.34%) after 14 days of use [3] Manufacturing Excellence - Perfect Diary's factory has achieved international certification for smart manufacturing, establishing itself as a benchmark in the global beauty manufacturing sector [4] - The factory, built in collaboration with a leading ODM company, features a high-standard cleanroom environment, with a purification standard of 100,000-level cleanliness, significantly higher than the industry average [6] Operational Efficiency - The factory employs intelligent and refined management practices to enhance efficiency and reduce costs, including automated filling and packaging systems [7] - A comprehensive quality control system ensures rigorous testing and monitoring throughout the production process, contributing to high-quality product output [7] Sustainability Practices - The factory incorporates sustainable practices, such as advanced water treatment systems that recycle wastewater for landscaping, aligning with global environmental trends [8] - The facility's location near a natural water source allows it to maintain high-quality production water standards, exceeding both Chinese and European pharmacopoeia requirements [8][9] Future Outlook - The collaboration between international experts and the brand's technological advancements signals a continued rise of domestic beauty brands, with Perfect Diary positioned as a leader in the global beauty market [10] - The innovative ecosystem established by the company, combining foundational research, clinical validation, and smart manufacturing, is expected to drive sustainable growth and attract further industry talent [10]

Core Insights - Yatsen Holding Ltd. is evolving from a trend-savvy startup into a global innovation leader in the beauty tech industry [1][2] - The company aims to redefine beauty through a combination of agile operations and long-term strategic thinking [2] Company Overview - Founded in 2016, Yatsen initially gained attention with its brand Perfect Diary and has since expanded to 11 brands across various market segments [3][4] - The brand portfolio includes Galenic, EVE LOM, and Dr.Wu, reflecting a strategy to meet diverse consumer needs with innovative products [4] Market Dynamics - The Chinese beauty market is valued at over RMB 400 billion and remains fragmented, allowing room for agile innovators like Yatsen to grow [5] - Despite macroeconomic challenges, Chinese consumers are willing to pay for products that deliver real value [5] Product Innovation - Yatsen's Biolip Essence Lipstick combines high-performance color with skincare benefits, showcasing the company's focus on innovation [5][6] - The company has pivoted towards skincare and R&D, investing over $80 million in research and filing over 240 patents [7] Financial Performance - Yatsen has resumed profitable growth, with a focus on disciplined brand building and product innovation [8] - The company allocates 3% of its revenue to R&D, positioning it among global leaders in innovation spending within the beauty sector [7] Strategic Positioning - Yatsen has insulated itself from global supply chain disruptions by sourcing most components domestically [10] - The company emphasizes delivering high value rather than just competing on price, recognizing that consumers are more price-sensitive post-COVID [11] Competitive Advantage - Yatsen's unique combination of local insights and global scientific ambition differentiates it from multinational competitors [12] - The company is exploring neuroscience applications in skincare, indicating a commitment to long-term innovation [13] Capital Strategy - Yatsen has completed a $200 million share buyback to reinforce investor confidence and align with shareholder interests [14] - The company is positioned to capture long-term market share in a fast-evolving industry through its science-led product pipeline and profitable operating model [15]

Market Capitalization Overview - The market capitalizations of various companies are listed, with TAL Education Group at 11.882 billion, Vipshop at 8.481 billion, and others showing significant values [2]. - Notable increases in market value include SouFun Technology with a rise of 9.49% and 6.96% for Lufax Holding [2]. Company Performance - TAL Education Group shows a slight decrease of 0.25% in its stock price, while Vipshop and SouFun Technology have increased by 6.38% and 7.51% respectively [2]. - Other companies like JD.com and iQIYI also show positive stock performance, with increases of 7.38% and 9.29% respectively [2]. Sector Analysis - The data indicates a mixed performance across the sector, with some companies experiencing growth while others face declines [2][3]. - Companies such as Huami and Mogujie show varied performance, with Huami experiencing a slight increase of 3.14% while Mogujie saw a decrease of 5.30% [3]. Investment Insights - The overall market sentiment appears to favor companies with strong growth metrics, as evidenced by the significant percentage increases in market value for several firms [2][3]. - The data suggests potential investment opportunities in companies that are showing consistent growth in their market capitalizations and stock prices [2].

In China: Yatsen Holding Limited Investor Relations E-mail: [email protected] Piacente Financial Communications Hui Fan Tel: +86-10-6508-0677 E-mail: [email protected] GUANGZHOU, China, April 22, 2025 /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, 2024 with the U.S. Securities and Exchange Commission ("SEC") on April 22, 2025. T ...

VIE Structure and Financial Contributions - The VIE structure contributed 8.7%, 5.4%, and 4.9% to total revenues for the years ended December 31, 2022, 2023, and 2024, respectively[27]. - The VIE received net debt financing of RMB75.0 million and RMB25.5 million (US$3.5 million) from the WFOE for the years ended December 31, 2023 and 2024, respectively[43]. - The WFOE received RMB217.8 million, RMB64.1 million, and RMB31.1 million (US$4.3 million) from the VIE for the years ended December 31, 2022, 2023, and 2024, respectively[43]. - The VIE may transfer cash to the WFOE by paying service fees, but no service fees were paid by the VIE to the WFOE for the years ended December 31, 2022, 2023, and 2024[44]. - The company did not charge any service fees from the VIE for the years ended December 31, 2022, 2023, and 2024, resulting in no service fees paid during these periods[60]. - The VIE contributed 4.9% of the company's revenues in 2024, highlighting its importance to overall financial performance[69]. - The company relies on contractual arrangements with a Variable Interest Entity (VIE) for operations in China, which contributed 4.9% of its revenues in 2024, posing risks if these arrangements are deemed non-compliant with PRC regulations[210]. - There are substantial uncertainties regarding the interpretation of PRC laws, which could affect the enforceability of the company's contractual arrangements with the VIE[211]. - The company may face severe penalties or be forced to relinquish interests in operations if its agreements with the VIE do not comply with PRC regulations[208]. - The PRC tax authorities may scrutinize the contractual arrangements with the VIE, potentially leading to material tax consequences if deemed not on an arm's length basis[221]. Financial Performance and Position - Total net revenues for the company were RMB3.71 billion in 2022, RMB3.41 billion in 2023, and RMB3.39 billion (US$464.9 million) in 2024[70]. - The net loss attributable to Yatsen Holding Limited's shareholders for the year ended December 31, 2024, was RMB 708,174 thousand, compared to a net loss of RMB 747,763 thousand in 2023[50]. - The company reported a net loss before income tax expenses of RMB 713,307 thousand for the year ended December 31, 2024[50]. - The income tax benefit for the year ended December 31, 2024, was RMB 3,086 thousand, indicating a slight improvement from previous years[50]. - Total shareholders' equity as of December 31, 2024, was RMB 3,052,031 thousand, reflecting a recovery from the previous year's deficit[52]. - The company incurred a net loss of RMB821.3 million in 2022, RMB750.2 million in 2023, and RMB710.2 million (US$97.3 million) in 2024[88]. - The company recorded goodwill impairment of RMB403.1 million (US$55.2 million) in 2024, primarily due to weaker operating results than expected[173]. - The company has limited business insurance coverage, which may expose it to significant costs and operational disruptions[181]. - The company has experienced negative cash flows and may require additional cash resources for future investments or acquisitions, impacting its liquidity[155]. Cash Flow and Investments - Cash and cash equivalents as of December 31, 2024, totaled RMB 817,395 thousand, with short-term investments at RMB 539,130 thousand[52]. - For the year ended December 31, 2024, net cash provided by operating activities was RMB 42,546 thousand, while net cash used in investing activities was RMB (1,316,051) thousand[54]. - For the year ended December 31, 2023, net cash used in operating activities was RMB (107,442) thousand, while net cash provided by investing activities was RMB (260,487) thousand[56]. - Positive cash flows from operating activities were RMB136.2 million in 2022, while negative cash flows were RMB107.4 million in 2023 and RMB243.7 million (US$33.4 million) in 2024[88]. - The company reported a net cash used in financing activities of RMB (394,226) thousand for the year ended December 31, 2024[54]. Operational Challenges and Market Conditions - The company faces significant risks including competition in the beauty industry, which could adversely affect market share and financial condition[69]. - The beauty industry is highly competitive, with significant pressure from both domestic and international players[74]. - The company anticipates challenges in executing its growth strategy and achieving revenue growth in the future[70]. - The company may face difficulties in introducing new products that appeal to consumers, impacting future revenue growth[69]. - The company faces challenges in launching new products due to rapidly changing consumer preferences and the need for timely market responses[80]. - The growth of the beauty products market in China is uncertain and may not meet expectations, potentially affecting the company's business prospects[106]. - Economic downturns may adversely affect consumer discretionary spending, impacting demand for the company's products[131]. - Rising international political tensions could materially affect global economic conditions and the demand for the company's products[205]. Regulatory and Compliance Risks - The company is subject to potential fines between RMB1 million to RMB10 million for non-compliance with the CSRC regulations, which could adversely affect its business[35]. - The company must navigate complexities related to international operations, including legal compliance, local market adaptation, and competition from local providers[130]. - The amended PRC Company Law, effective July 1, 2024, imposes stricter capital contribution requirements, creating uncertainty regarding compliance and potential financial obligations[180]. - The company is exposed to significant legal and financial risks due to potential security breaches, which could harm its reputation and customer trust[146]. - The company has not been involved in any formal investigations regarding cybersecurity by the Cyberspace Administration of China as of the date of the report[136]. Supply Chain and Production Risks - The company relies on third-party manufacturers and logistics providers, which may engage in noncompliant practices, potentially disrupting operations and harming reputation[161]. - Supply chain disruptions may arise from shortages of raw materials and ingredients, leading to delays in product deliveries and increased costs[117]. - The market prices for certain raw materials have been volatile, and significant increases may not be recoverable through sales price adjustments, negatively impacting financial results[119]. - The company relies on a limited number of ODM/OEM and packaging supply partners, with the top five partners accounting for a significant portion of purchases in 2022, 2023, and 2024, exposing the company to risks if any partner fails to meet standards[112]. Customer Relations and Brand Management - The company must maintain a satisfactory consumer experience to protect its brand reputation, which is influenced by product quality, customer service, and compliance with ethical standards[101]. - The company is dependent on consumer perception and brand recognition, which are critical for maintaining market position in a competitive environment[100]. - Negative publicity related to KOLs and brand ambassadors can adversely affect the company's reputation and business outcomes[110]. - The company’s ability to provide superior customer service is essential for retaining customers and maintaining brand loyalty, with potential risks from high turnover rates among customer service representatives[105]. Data Security and Privacy Compliance - The company collects and processes customer data to analyze changing consumer preferences, but faces risks related to data security and compliance with privacy regulations[133][137]. - The company has taken measures to comply with PRC laws on data security and personal information protection, including updating privacy policies and establishing a data compliance management structure[134][141]. - The PRC government has implemented new regulations regarding cybersecurity and data protection, which may increase compliance costs and operational challenges for the company[138][139]. - The company may be subject to data protection laws in jurisdictions outside of China, such as the European Union General Data Protection Regulation, which imposes strict requirements on data processing and could impact operations[143][144]. Share-Based Compensation and Management - The company recorded share-based compensation expenses of RMB340.9 million, RMB77.5 million, and RMB91.2 million (US$12.5 million) for the years ended December 31, 2022, 2023, and 2024, respectively[184]. - The share-based compensation expenses in 2023 were lower compared to 2022 and 2024, primarily due to a reversal of RMB109.4 million from unvested awards forfeited by a former executive[184]. - The company has established a 2022 Share Incentive Plan, allowing for the issuance of shares amounting to 1.5% of total outstanding shares as of December 31, 2022, with annual increases for the first two fiscal years starting January 1, 2024[183]. International Expansion and Market Adaptation - The company has started to expand globally, beginning in Southeast Asia, and has acquired Galénic and Eve Lom, which have operations in Europe and the U.S.[128]. - The company faces significant risks and costs associated with international expansion, including regulatory, economic, and political risks, as well as challenges in brand recognition and compliance with local standards[129][130].