Yatsen Announces Fourth Quarter and Full Year 2024 Financial Results

Core Viewpoint - Yatsen Holding Limited reported solid performance in Q4 2024, achieving year-over-year revenue growth despite challenges in the beauty market, driven by the recovery of its Perfect Diary brand and growth in skincare brands [3][4][6]. Financial Performance - Total net revenues for Q4 2024 increased by 7.1% to RMB1.15 billion (US$157.3 million) from RMB1.07 billion in the prior year [4][6]. - Gross profit for Q4 2024 rose by 13.0% to RMB893.0 million (US$122.3 million), with a gross margin of 77.8%, up from 73.7% in the prior year [4][6][13]. - Operating expenses decreased by 3.5% to RMB1.28 billion (US$175.9 million), with a reduction in the operating expense ratio to 111.8% from 124.0% [5][6]. - The net loss for Q4 2024 decreased by 23.4% to RMB378.8 million (US$51.9 million) from RMB494.5 million in the prior year [10][15]. - Non-GAAP net income for Q4 2024 was RMB107.0 million (US$14.7 million), compared to a non-GAAP net loss of RMB93.7 million in the prior year [11][16]. Yearly Overview - For the full year 2024, total net revenues decreased by 0.6% to RMB3.39 billion (US$464.9 million) from RMB3.41 billion in the prior year [12][15]. - Gross profit for the full year increased by 4.1% to RMB2.62 billion (US$358.6 million), with a gross margin of 77.1%, up from 73.6% [13][15]. - The net loss for the full year decreased by 5.3% to RMB710.2 million (US$97.3 million) from RMB750.2 million in the prior year [15][16]. Operational Efficiency - Fulfillment expenses for Q4 2024 were RMB63.5 million (US$8.7 million), with a decrease in the fulfillment expense ratio to 5.5% from 5.8% [7]. - Selling and marketing expenses for Q4 2024 were RMB690.6 million (US$94.6 million), with a decrease in the ratio to 60.1% from 66.9% [7]. - General and administrative expenses for Q4 2024 were RMB100.1 million (US$13.7 million), with a decrease in the ratio to 8.7% from 14.8% [7]. Future Outlook - For Q1 2025, the company expects total net revenues to be between RMB788.8 million and RMB866.2 million, representing a year-over-year increase of approximately 2% to 12% [19].