Financial Data and Key Metrics Changes - Total net revenues for Q3 2025 increased by 47.5% year-over-year to RMB 998.4 million, up from RMB 677 million in the prior year [11] - Gross profits rose by 51.9% to RMB 780.5 million, with gross margin increasing to 78.2% from 75.9% [11][12] - Net loss narrowed to RMB 70.4 million, improving the net loss margin to 7% from 17.9% in the prior year [16] Business Line Data and Key Metrics Changes - Skincare brands saw a significant revenue increase of 83.2% year-over-year, contributing 49.2% of total revenue [4][11] - Revenues from color cosmetics brands increased by 25.2% year-over-year [11] - Operating loss decreased to RMB 83.6 million from RMB 141.3 million in the prior year, with an operating loss margin of 8.4% compared to 20.9% [15] Market Data and Key Metrics Changes - The beauty market in China is showing signs of recovery, particularly in the skincare category, which is driving overall industry growth [4] - The company observed strong performance from its premium skincare brands during the Double 11 shopping festival, indicating competitive positioning against foreign high-end brands [22] Company Strategy and Development Direction - The company is focused on building a competitive brand portfolio anchored in R&D and innovation, aiming for sustainable growth and profitability [4][10] - There is a commitment to optimizing product and channel mix to enhance gross margins and marketing ROI [30] - The company plans to continue investing in innovation while balancing growth with profitability [5][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving profitability in the fourth quarter and emphasized the importance of R&D and product innovation for sustained growth [23][28] - The company anticipates total net revenues for Q4 2025 to be between RMB 1.32 billion and RMB 1.49 billion, reflecting a year-over-year increase of approximately 15% to 30% [18] Other Important Information - The company had cash, restricted cash, and short-term investments of RMB 1.16 billion as of September 30, 2025, down from RMB 1.36 billion at the end of 2024 [17] - Net cash used in operating activities for Q3 2025 was RMB 126.8 million, an improvement from RMB 175.9 million in the prior year [17] Q&A Session Summary Question: Performance during Double 11 Festival and competition from foreign brands - Management indicated that overall performance during Double 11 was in line with expectations, with some brands exceeding them. They noted increased competition from foreign high-end brands, which are struggling with price cuts [21][22][23] Question: Sustaining skincare business growth and improving profitability - Management highlighted R&D, product line expansion, and brand awareness as key drivers for sustaining skincare growth. They also emphasized product and channel mix optimization for improving profitability [27][28][30] Question: Future expenses and competition in online channels - Management expects stable general and administrative expenses with operational leverage as revenue grows. They view ongoing competition as manageable through continued focus on R&D and brand building [34][40]

Financial Data and Key Metrics Changes - Total net revenues for Q3 2025 increased by 47.5% year-over-year to RMB 998.4 million, up from RMB 677 million in the prior year [11] - Gross profits rose by 51.9% to RMB 780.5 million, with gross margin increasing to 78.2% from 75.9% [11][12] - Net loss narrowed to RMB 70.4 million, improving the net loss margin to 7% from 17.9% in the prior year [16] Business Line Data and Key Metrics Changes - Skincare brands saw a significant revenue increase of 83.2% year-over-year, contributing 49.2% of total revenue [4][11] - Color cosmetics brands experienced a 25.2% year-over-year revenue increase [11] - Perfect Diary's base makeup category exceeded 40% of total sales, reflecting strong performance [9] Market Data and Key Metrics Changes - The beauty market in China is showing signs of recovery, particularly in the skincare category, which is driving overall industry growth [4] - The company observed increased competition from foreign high-end brands during the Double 11 shopping festival, with some brands struggling due to deep price cuts [22][23] Company Strategy and Development Direction - The company is focused on building a competitive brand portfolio anchored in R&D and innovation, aiming for sustainable growth and profitability [4][10] - There is a commitment to optimizing product and channel mix to improve gross margins and marketing ROI [30] - The company plans to continue investing in innovation while balancing growth with profitability [5][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in reaching profitability, emphasizing the importance of balancing growth and profitability [23] - The company expects total net revenues for Q4 2025 to be between RMB 1.32 billion and RMB 1.49 billion, representing a year-over-year increase of approximately 15% to 30% [18] Other Important Information - The company had cash, restricted cash, and short-term investments of RMB 1.16 billion as of September 30, 2025, down from RMB 1.36 billion at the end of 2024 [17] - Net cash used in operating activities for Q3 2025 was RMB 126.8 million, an improvement from RMB 175.9 million in the prior year [17] Q&A Session Summary Question: Performance during Double 11 Festival and competition from foreign brands - Management indicated that overall performance during Double 11 was in line with expectations, with some brands exceeding them. They noted significant competition from foreign high-end brands, which are facing challenges due to price cuts [21][22][23] Question: Sustaining skincare business growth and improving profitability - Management highlighted R&D as a key driver for skincare growth, along with product line expansion and improved marketing ROI. They emphasized the importance of optimizing product and channel mix for profitability [27][28][30][31] Question: Future expenses and competition in online channels - Management expects stable general and administrative expenses with operational leverage as revenue grows. They believe that continued investment in R&D and brand building will help navigate fierce online competition [34][40]

Financial Data and Key Metrics Changes - Total net revenues for Q3 2025 increased by 47.5% year-over-year to RMB 998.4 million, up from RMB 677 million in the prior year [11] - Gross profits rose by 51.9% to RMB 780.5 million, with gross margin increasing to 78.2% from 75.9% [11][12] - Net loss narrowed significantly to RMB 70.4 million, improving net loss margin to 7% from 17.9% in the prior year [16] Business Line Data and Key Metrics Changes - Skincare brands saw a remarkable revenue increase of 83.2% year-over-year, contributing 49.2% to total revenue [4][11] - Color cosmetics brands experienced a 25.2% year-over-year revenue increase [11] - Operating loss decreased to RMB 83.6 million from RMB 141.3 million, with operating loss margin improving to 8.4% from 20.9% [15] Market Data and Key Metrics Changes - The beauty market in China is showing signs of recovery, particularly in the skincare category, which is driving overall industry growth [4] - The company noted strong performance in e-commerce channels, with specific products gaining traction during the Double 11 shopping festival [22] Company Strategy and Development Direction - The company is focused on building a competitive brand portfolio anchored in R&D and innovation, aiming for sustainable growth and profitability [4][10] - There is a commitment to optimizing product and channel mix to enhance gross margin and marketing ROI [29] - The company plans to continue investing in innovation while balancing growth with profitability [5][10] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in reaching profitability, highlighting the balance between growth and profitability as a long-term goal [23] - The company anticipates total net revenues for Q4 2025 to be between RMB 1.32 billion and RMB 1.49 billion, reflecting a year-over-year increase of approximately 15% to 30% [18] Other Important Information - The company had cash, restricted cash, and short-term investments of RMB 1.16 billion as of September 30, 2025, down from RMB 1.36 billion at the end of 2024 [17] - Net cash used in operating activities for Q3 2025 was RMB 126.8 million, an improvement from RMB 175.9 million in the prior year [17] Q&A Session Summary Question: Performance during Double 11 Festival and competition from foreign brands - Management indicated that overall performance during Double 11 was in line with expectations, with some brands exceeding them. They noted significant competition from foreign high-end brands, which are struggling with price cuts [20][22][23] Question: Sustaining skincare business growth and improving profitability - Management emphasized the importance of R&D and product innovation as key drivers for sustaining skincare growth. They also highlighted product mix optimization and customer engagement as strategies for improving profitability [27][29] Question: Future expenses and competition in online channels - Management stated that general and administrative expenses are expected to remain stable, with operational leverage as revenue grows. They acknowledged fierce competition in online channels but expressed confidence in their growth strategy driven by R&D and brand building [34][40]

Group 1 - The article discusses the importance of enabling Javascript and cookies in browsers to prevent access issues [1] - It highlights that users with ad-blockers may face restrictions when trying to access content [1]

Core Insights - Yatsen E-commerce reported a revenue of 1 billion yuan for Q3 2025, marking a 47.5% increase year-on-year, achieving revenue growth for four consecutive quarters [1] - The color cosmetics segment grew by 25.2% year-on-year, while the skincare segment saw a significant increase of 83.2% to 491 million yuan [1] - R&D investment reached 39.76 million yuan in Q3, up 56.9% year-on-year, with R&D expense ratio increasing to 4% [1] - Since its IPO in 2020, Yatsen E-commerce has invested over 650 million yuan in R&D, maintaining an R&D expense ratio of over 3% for three consecutive years [1] - For Q4 2025, total revenue is expected to be between 1.32 billion and 1.49 billion yuan, representing a year-on-year growth of approximately 15% to 30% [1]

Third Quarter 2025 Investor Presentation Yatsen Holding Limited Disclaimer This presentation has been prepared by Yatsen Holding Limited (the "Company") solely for information purpose. By viewing or accessing the information contained in this material, you hereby acknowledge and agree that no representations, warranties or undertakings, express or implied, are made by the Company or any of its directors, shareholders, employees, agents, affiliates, advisors or representatives as to, and no reliance should b ...

Core Insights - Yatsen Holding Limited reported a significant revenue growth of 47.5% year-over-year for Q3 2025, reaching RMB998.4 million (US$140.2 million) [4][7] - The skincare brands experienced an impressive revenue increase of 83.2% year-over-year, contributing to the overall growth [4][7] - The company is focused on brand and product innovation to sustain long-term growth, with new product launches planned for the upcoming Double 11 shopping festival [3] Financial Performance - Total net revenues for Q3 2025 increased to RMB998.4 million (US$140.2 million) from RMB677.0 million in the prior year [4][7] - Gross profit rose by 51.9% to RMB780.5 million (US$109.6 million), with gross margin improving to 78.2% from 75.9% [5][7] - Operating expenses increased by 31.9% to RMB864.1 million (US$121.4 million), but as a percentage of total net revenues, they decreased to 86.5% from 96.8% [6][15] Loss and Margin Improvements - The net loss for Q3 2025 narrowed by 41.9% to RMB70.4 million (US$9.9 million) compared to RMB121.1 million in the prior year [10][11] - Non-GAAP net loss also improved, narrowing by 32.8% to RMB51.5 million (US$7.2 million) [11] - The operating loss margin improved to 8.4% from 20.9% in the prior year [9] Cash Flow and Balance Sheet - As of September 30, 2025, the company had cash, restricted cash, and short-term investments totaling RMB1.16 billion (US$162.6 million) [12] - Net cash used in operating activities for Q3 2025 was RMB126.8 million (US$17.8 million), down from RMB175.9 million in the prior year [12] Business Outlook - For Q4 2025, Yatsen expects total net revenues to be between RMB1.32 billion and RMB1.49 billion, indicating a year-over-year increase of approximately 15% to 30% [13]

Core Insights - HHLR Advisors, a fund management platform under Hillhouse Capital, reported a total market value of $4.1 billion in U.S. stocks as of the end of Q3 2025, an increase of $990 million or 32% from the previous quarter [1][2] - The firm significantly increased its holdings in Pinduoduo and Alibaba, while initiating positions in Baidu and Manbang Group, and reduced its stakes in Futu Holdings, NetEase, and Yatsen [1][5] Holdings Overview - HHLR Advisors held a total of 33 stocks at the end of Q3, with over 90% of the portfolio consisting of Chinese concept stocks, indicating a long-term bullish outlook on quality Chinese assets [2][4] - The top 10 holdings accounted for 93.46% of the total portfolio, with Pinduoduo and Alibaba being the largest positions [2][3] Major Increases - Pinduoduo remains the largest holding, with an increase of 1.6158 million shares, bringing the total to 8.5926 million shares, valued at $1.136 billion, representing 13.21% of the total portfolio [3][4] - Alibaba saw an increase of 2.14 million shares, with a total holding of 3.2897 million shares valued at $588 million, reflecting an 84.46% increase in its stock price year-to-date [4] New Positions - Baidu was newly added to the portfolio with 1.6410 million shares valued at $216.23 million, becoming the sixth-largest holding [4] - New investments also included Manbang Group and Sea, with holdings valued at $5.274 million and $3.218 million, respectively [4] Reductions - HHLR Advisors reduced its stake in Futu Holdings by 1.0741 million shares, bringing the total to 3.2382 million shares valued at $563 million, with the stock having increased over 107% year-to-date [7][8] - The firm also reduced its holdings in NetEase by 0.8729 million shares, resulting in a total of 0.7908 million shares valued at $120 million, with a year-to-date increase of 60.50% [8] - Other reductions included Yatsen, where the firm cut its position by 1.2261 million shares, and a complete exit from JD.com, Vipshop, Li Auto, and others [5][8]

Core Viewpoint - HHLR Advisors, a fund management platform under Hillhouse Capital, reported a significant increase in its US stock holdings, with a total market value of $4.1 billion as of the end of Q3 2025, reflecting a 32% increase from the previous quarter [2][3]. Holdings Summary - HHLR Advisors held a total of 33 stocks at the end of Q3, with a market value of $4.1 billion, up by $990 million from Q2 [2][3]. - The firm increased its positions in major Chinese stocks such as Pinduoduo and Alibaba, while also initiating new positions in Baidu and Manbang Group [2][5]. - The top 10 holdings accounted for 93.46% of the total portfolio, indicating a concentrated investment strategy [5]. Major Stock Movements - Pinduoduo remains the largest holding, with an increase of 1.6158 million shares, bringing the total to 8.5926 million shares, valued at $1.136 billion, which is 13.21% of the total portfolio [6][7]. - Alibaba was also significantly increased by 2.14 million shares, totaling 3.2897 million shares, valued at $588 million, with a year-to-date price increase of 84.46% [7]. - Baidu was newly added to the portfolio with 1.6410 million shares, valued at $216.23 million, benefiting from its accelerated AI commercialization [7]. Reductions and Exits - HHLR Advisors reduced its holdings in several stocks, including a decrease of 1.0741 million shares in Futu Holdings, now holding 3.2382 million shares valued at $563 million [9]. - The firm also reduced its position in NetEase by 87290 shares, bringing the total to 79080 shares, valued at $120 million [9]. - The firm completely exited positions in JD.com, Ideal Auto, and several other stocks during the quarter [8][9].

Core Insights - Yatsen Group has released "Yatsen Group Beauty Innovation Insight," marking a significant step in China's beauty industry towards scientific leadership and innovation [2][3][4] Company Overview - Yatsen Group is a leading multi-brand beauty company listed on NYSE, focusing on R&D and innovation [1][14] - The company has invested over RMB 600 million in R&D since its NYSE listing in 2020, maintaining R&D spending above 3% of annual revenue [14] Innovation and R&D - The white paper includes six chapters covering global R&D networks, technological breakthroughs, efficacy validation, and sustainable development [3] - Yatsen has published 32 peer-reviewed papers and filed 252 global patents, including 78 invention applications since 2022 [9] - The company aims to transform laboratory research into consumer impact, emphasizing the value of innovation [6] Sustainability and Social Responsibility - Yatsen has published four consecutive ESG reports since 2021 and achieved an MSCI ESG Rating of A for two years, being the only Chinese beauty company to do so [11] - The company integrates low-carbon practices in operations, with products like Perfect Diary's "Slim Heel Lipstick" receiving Product Carbon Footprint Certification [12] - Premium brands under Yatsen, such as EVE LOM and Galénic, have adopted sustainable packaging practices, including 100% FSC-certified recycled paper and refillable jar systems [13] Global Collaboration - Yatsen's Open Lab ecosystem connects over 20 research collaborations across industry, academia, and medicine, enhancing its global research capabilities [9] - The company has participated in major dermatological and cosmetic congresses, strengthening China's scientific voice in the global beauty dialogue [5]