Yatsen Holding Limited (NYSE:YSG) Q2 2023 Earnings Call Transcript August 22, 2023 7:30 AM ET Company Participants Irene Lyu - Vice President, Head of Strategic Investment and Capital Markets Jinfeng Huang - Founder, Chairman and CEO Donghao Yang - CFO and Director Conference Call Participants Qianye Lin - CICC Vivi Huang - Morgan Stanley Operator Ladies and gentlemen, good day, and welcome to the Yatsen's Second Quarter 2023 Earnings Conference Call. Today's conference call is being recorded. At this time, ...

Second Quarter 2023 Investor Presentation Yatsen Holding Limited Disclaimer ...

Yatsen Announces Second Quarter 2023 Financial Results Exhibit 99.1 Conference Call to Be Held at 7:30 A.M. U.S. Eastern Time on August 22, 2023 GUANGZHOU, China, August 22, 2023 – Yatsen Holding Limited ("Yatsen" or the "Company") (NYSE: YSG), a leading China-based beauty group, today announced its unaudited financial results for the second quarter ended June 30, 2023. Second Quarter 2023 Highlights • Total net revenues for the second quarter of 2023 decreased by 9.8% to RMB858.6 million (US$118.4 million) ...

Yatsen Holding Limited (NYSE:YSG) Q1 2023 Earnings Conference Call May 16, 2023 7:30 AM ET Company Participants Irene Lyu - Vice President and Head, Strategic Investment and Capital Markets Jinfeng Huang - Founder, Chairman and Chief Executive Officer Donghao Yang - Chief Financial Officer Conference Call Participants Dustin Wei - Morgan Stanley Olivia Tong - Raymond James Operator Ladies and gentlemen, good day and welcome to the Yatsen First Quarter 2023 Earnings Conference Call. Today’s conference is bei ...

[Q1 2023 Financial Performance Overview](index=1&type=section&id=Yatsen%20Announces%20First%20Quarter%202023%20Financial%20Results) Yatsen's Q1 2023 results show a revenue decline but significant profitability improvement driven by skincare growth and cost optimization [Q1 2023 Key Financial Highlights](index=1&type=section&id=First%20Quarter%202023%20Highlights) Yatsen's Q1 2023 net revenue declined 14.1% to RMB 765.4 million, with Skincare Brands growing 34.2% and gross margin improving to 74.3%, resulting in a net income of RMB 50.7 million, primarily due to a share-based compensation reversal Key Financial Highlights | Financial Metric | Q1 2023 (RMB million) | Q1 2022 (RMB million) | Change | | :--- | :--- | :--- | :--- | | **Total Net Revenues** | 765.4 | 891.0 | -14.1% | | **Skincare Brands Net Revenues** | 245.1 | 182.7 | +34.2% | | **Skincare as % of Total Revenue** | 32.0% | 20.5% | +11.5 p.p. | | **Gross Margin** | 74.3% | 69.0% | +5.3 p.p. | | **Net Income (Loss)** | 50.7 | (291.4) | Turnaround to Profit | | **Non-GAAP Net Loss** | (25.8) | (153.6) | -83.2% | - The significant net income in Q1 2023 was primarily driven by a **RMB 109.4 million** reversal of share-based compensation expenses related to the resignation of the former CTO[2](index=2&type=chunk)[3](index=3&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management affirmed progress on the five-year strategic transformation, with the CEO emphasizing brand portfolio health and R&D, and the CFO noting Q1 results exceeded guidance with improved gross margin - CEO Jinfeng Huang stated the company's strategic focus includes increasing brand awareness for Skincare Brands, developing new products, building a sustainable model for Color Cosmetics Brands, and strengthening R&D capabilities[4](index=4&type=chunk) - CFO Donghao Yang highlighted that Q1 results beat previous guidance, with Skincare Brands' revenue contribution growing to **32.0%** and gross margin improving by **5.3 percentage points** to **74.3%**[5](index=5&type=chunk) [Detailed Financial Analysis](index=2&type=section&id=First%20Quarter%202023%20Financial%20Results) A detailed analysis of Q1 2023 revenues, profitability, and operating expenses reveals key drivers of financial performance [Revenue Analysis](index=2&type=section&id=Net%20Revenues) Total net revenues for Q1 2023 decreased by 14.1% to RMB 765.4 million, primarily due to a 29.1% decline in Color Cosmetics Brands, partially offset by a 34.2% increase in Skincare Brands Revenue Segment Performance | Revenue Segment | Change (YoY) | Note | | :--- | :--- | :--- | | **Total Net Revenues** | -14.1% | Decreased to RMB 765.4 million | | **Color Cosmetics Brands** | -29.1% | Primary driver of the overall decline | | **Skincare Brands** | +34.2% | Partially offset the decline in cosmetics | [Profitability Analysis](index=2&type=section&id=Gross%20Profit%20and%20Gross%20Margin) Gross margin improved to 74.3% due to product mix and cost optimization, leading to a net income of RMB 50.7 million, a significant turnaround from a prior-year net loss of RMB 291.4 million - Gross margin increased due to: (i) higher sales of skincare products, (ii) disciplined pricing and discount policies, and (iii) cost optimization across all brands[7](index=7&type=chunk) Profitability Metrics | Profitability Metric | Q1 2023 (RMB million) | Q1 2022 (RMB million) | | :--- | :--- | :--- | | **Gross Profit** | 568.7 | 614.5 | | **Gross Margin** | 74.3% | 69.0% | | **Net Income (Loss)** | 50.7 | (291.4) | | **Diluted EPS (ADS)** | 0.08 | (0.46) | - The company's loss from operations narrowed by **97.7%** to **RMB 7.2 million** from **RMB 308.0 million** in the prior year period[12](index=12&type=chunk) [Operating Expenses Analysis](index=2&type=section&id=Operating%20Expenses) Total operating expenses for Q1 2023 decreased significantly by 37.6% to RMB 575.9 million, representing 75.2% of total net revenues, driven by cost reductions across all categories [Fulfillment Expenses](index=2&type=section&id=Fulfillment%20Expenses) Fulfillment expenses decreased to RMB 51.9 million (6.8% of revenue) from RMB 73.9 million, primarily due to reduced warehouse and logistics costs from outsourcing Fulfillment Expenses | Expense Category | Q1 2023 (RMB million) | Q1 2022 (RMB million) | Change | | :--- | :--- | :--- | :--- | | **Fulfillment Expenses** | 51.9 | 73.9 | -29.8% | | **As % of Net Revenues** | 6.8% | 8.3% | -1.5 p.p. | [Selling and Marketing Expenses](index=2&type=section&id=Selling%20and%20Marketing%20Expenses) Selling and marketing expenses decreased to RMB 459.0 million (60.0% of revenue) from RMB 604.7 million, mainly due to offline store closures and reduced share-based compensation Selling and Marketing Expenses | Expense Category | Q1 2023 (RMB million) | Q1 2022 (RMB million) | Change | | :--- | :--- | :--- | :--- | | **Selling & Marketing** | 459.0 | 604.7 | -24.1% | | **As % of Net Revenues** | 60.0% | 67.9% | -7.9 p.p. | [General and Administrative Expenses](index=3&type=section&id=General%20and%20Administrative%20Expenses) General and administrative expenses dramatically decreased to RMB 40.7 million (5.3% of revenue) from RMB 208.1 million, primarily due to a RMB 109.4 million share-based compensation reversal General and Administrative Expenses | Expense Category | Q1 2023 (RMB million) | Q1 2022 (RMB million) | Change | | :--- | :--- | :--- | :--- | | **General & Admin** | 40.7 | 208.1 | -80.4% | | **As % of Net Revenues** | 5.3% | 23.4% | -18.1 p.p. | [Research and Development Expenses](index=3&type=section&id=Research%20and%20Development%20Expenses) Research and development expenses decreased to RMB 24.2 million (3.2% of revenue) from RMB 35.8 million, managed in line with revenue levels Research and Development Expenses | Expense Category | Q1 2023 (RMB million) | Q1 2022 (RMB million) | Change | | :--- | :--- | :--- | :--- | | **R&D Expenses** | 24.2 | 35.8 | -32.4% | | **As % of Net Revenues** | 3.2% | 4.0% | -0.8 p.p. | [Financial Position and Cash Flow](index=4&type=section&id=Balance%20Sheet%20and%20Cash%20Flow) Yatsen's Q1 2023 financial position remains solid with substantial cash reserves and improved operating cash flow management [Balance Sheet Summary](index=4&type=section&id=Balance%20Sheet) As of March 31, 2023, Yatsen maintained a solid financial position with cash, restricted cash, and short-term investments totaling RMB 2.54 billion Balance Sheet Summary | Balance Sheet Item | As of Mar 31, 2023 (RMB billion) | As of Dec 31, 2022 (RMB billion) | | :--- | :--- | :--- | | **Cash, Restricted Cash & Short-term Investments** | 2.54 | 2.63 | [Cash Flow Summary](index=4&type=section&id=Cash%20Flow) Net cash used in operating activities significantly decreased by 80.6% to RMB 20.2 million in Q1 2023, reflecting improved cash management - Net cash used in operating activities for Q1 2023 was **RMB 20.2 million**, an **80.6%** decrease from **RMB 104.1 million** in Q1 2022[15](index=15&type=chunk) [Outlook](index=4&type=section&id=Business%20Outlook) The company provides its revenue forecast for Q2 2023, anticipating a continued year-over-year decline [Q2 2023 Business Outlook](index=4&type=section&id=Business%20Outlook) For Q2 2023, Yatsen forecasts total net revenues to decline year-over-year, ranging between RMB 761.4 million and RMB 856.6 million - The company expects total net revenues for Q2 2023 to be between **RMB 761.4 million** and **RMB 856.6 million**, representing a year-over-year decline of approximately **10% to 20%**[16](index=16&type=chunk) [Supplementary Information](index=6&type=section&id=Supplementary%20Information) This section provides non-GAAP financial measure definitions and unaudited consolidated financial statements for Q1 2023 [Non-GAAP Financial Measures](index=6&type=section&id=Use%20of%20Non-GAAP%20Financial%20Measures) The company uses non-GAAP measures, excluding items like share-based compensation and amortization, to evaluate operating performance and identify underlying business trends - Non-GAAP net loss is defined as net loss excluding share-based compensation expenses, amortization of intangible assets from acquisitions, revaluation of investments, and related tax effects[3](index=3&type=chunk)[22](index=22&type=chunk) [Financial Statements](index=8&type=section&id=Financial%20Statements) This section presents unaudited condensed consolidated financial statements for Q1 2023, including Balance Sheets, Statements of Operations, and GAAP to Non-GAAP reconciliations [Unaudited Condensed Consolidated Balance Sheets](index=8&type=section&id=UNAUDITED%20CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) As of March 31, 2023, the balance sheet shows total assets of RMB 5.76 billion and total liabilities of RMB 717.7 million Unaudited Condensed Consolidated Balance Sheets | (All amounts in thousands RMB) | March 31, 2023 (RMB thousands) | December 31, 2022 (RMB thousands) | | :--- | :--- | :--- | | **Total current assets** | 3,396,482 | 3,508,421 | | **Total non-current assets** | 2,368,272 | 2,354,235 | | **Total assets** | **5,764,754** | **5,862,656** | | **Total current liabilities** | 526,412 | 588,412 | | **Total non-current liabilities** | 191,240 | 211,718 | | **Total liabilities** | **717,652** | **800,130** | | **Total shareholders' equity** | 4,707,178 | 4,722,602 | [Unaudited Condensed Consolidated Statements of Operations](index=9&type=section&id=UNAUDITED%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) For Q1 2023, the company reported total net revenues of RMB 765.4 million and a net income of RMB 50.7 million, a significant improvement from the prior-year net loss of RMB 291.4 million Unaudited Condensed Consolidated Statements of Operations | (All amounts in thousands RMB) | Q1 2023 (RMB thousands) | Q1 2022 (RMB thousands) | | :--- | :--- | :--- | | **Total net revenues** | 765,396 | 890,954 | | **Gross profit** | 568,729 | 614,546 | | **Loss from operations** | (7,154) | (307,982) | | **Net (loss) income** | **50,676** | **(291,380)** | | **Net (loss) income attributable to Yatsen's shareholders** | 50,058 | (290,915) | [Unaudited Reconciliations of GAAP and Non-GAAP Results](index=11&type=section&id=UNAUDITED%20RECONCILIATIONS%20OF%20GAAP%20AND%20NON-GAAP%20RESULTS) After adjustments for share-based compensation and amortization, Non-GAAP loss from operations was RMB 62.4 million, and Non-GAAP net loss was RMB 25.8 million, a significant reduction from the prior year Unaudited Reconciliations of GAAP and Non-GAAP Results | (All amounts in thousands RMB) | Q1 2023 (RMB thousands) | Q1 2022 (RMB thousands) | | :--- | :--- | :--- | | **Loss from operations (GAAP)** | (7,154) | (307,982) | | Share-based compensation (income) expenses | (67,398) | 125,818 | | Amortization of intangible assets | 12,176 | 12,083 | | **Non-GAAP loss from operations** | **(62,376)** | **(170,081)** | | **Net (loss) income (GAAP)** | 50,676 | (291,380) | | Adjustments (net) | (76,448) | 137,803 | | **Non-GAAP net loss** | **(25,772)** | **(153,577)** |

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 20-F (Mark One) ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 19 ...

Yatsen Holding Limited (NYSE:YSG) Q4 2022 Earnings Conference Call March 8, 2023 7:30 AM ET Company Participants Irene Lyu - Investor Relations Jinfeng Huang - Founder, Chairman and Chief Executive Officer Donghao Yang - Chief Financial Officer Conference Call Participants Dustin Wei - Morgan Stanley Qianye Lin - CICC Devin Weinstein - Raymond James Operator Ladies and gentlemen, good day, and welcome to the Yatsen Fourth Quarter and Full Year 2022 Earnings Conference Call. [Operator Instructions] At this t ...

Exhibit 99.1 Yatsen Announces Fourth Quarter and Full Year 2022 Financial Results Conference Call to Be Held at 7:30 A.M. U.S. Eastern Time on March 8, 2023 GUANGZHOU, China, March 8, 2023 – Yatsen Holding Limited ("Yatsen" or the "Company") (NYSE: YSG), a leading Chinese beauty company, today announced its unaudited financial results for the fourth quarter and full year ended December 31, 2022. Fourth Quarter and Full Year 2022 Highlights • Total net revenues for the fourth quarter of 2022 decreased by 34. ...

Shareholder Structure - As of February 28, 2023, the aggregate voting power of major shareholders, including Entities Affiliated with Jinfeng Huang, Hillhouse Entities, ZhenFund Entities, and Banyan Partners Entities, was 91.4%[4] - Entities Affiliated with Jinfeng Huang owned 5,736,314 Class A ordinary shares and 666,572,880 Class B ordinary shares, representing 24.9% of total outstanding ordinary shares and 86.8% of aggregate voting power[5] - Hillhouse Entities held 300,560,602 Class A ordinary shares, accounting for 11.1% of total outstanding ordinary shares and 2.0% of aggregate voting power[6] - ZhenFund Entities owned 224,286,241 Class A ordinary shares, representing 8.3% of total outstanding ordinary shares and 1.5% of aggregate voting power[7] - Banyan Partners Entities held 185,495,825 Class A ordinary shares, representing 6.9% of total outstanding ordinary shares and 1.2% of aggregate voting power[8] Governmental Control - The Company is not owned or controlled by any governmental entity in China[9] - There is no known governmental entity in China that can direct the management and policies of the Company[9] Financial Reporting - The Company filed its annual report on Form 20-F for the year ended December 31, 2021, with an audit report issued by PricewaterhouseCoopers Zhong Tian LLP[3] - The PCAOB was unable to inspect or investigate registered public accounting firms in mainland China until December 2022[3] - The Company submitted supplemental information as required under Item 16I(a) of Form 20-F in relation to the Holding Foreign Companies Accountable Act[2]