Core Viewpoint - The focus of the Chinese beauty market is shifting from brand marketing to research and development, indicating a revolution centered on scientific research and manufacturing [1][2]. Group 1: R&D Strategy and Investment - Yatsen E-commerce initiated a "second entrepreneurship" strategy in 2022, emphasizing long-term investment in R&D to build a global R&D system and become a "world-class beauty innovation pioneer" [2]. - Since 2020, Yatsen has invested over 580 million yuan in R&D, maintaining a R&D expense ratio above 3% for three consecutive years, positioning it among the leaders in the global beauty industry [3][6]. - The company has established a comprehensive R&D framework, referred to as the "1-3-4-6-20" global R&D strategy, which includes one world-class beauty factory, three self-built R&D centers, four research directions, six co-built laboratories, and over 20 research cooperation projects [5]. Group 2: R&D Achievements and Innovations - The Yatsen Global Innovation R&D Center, opened in May 2024, features over 300 high-end research instruments and has achieved national certification, marking it as one of the few accredited beauty R&D labs in China [6]. - Yatsen has made significant progress in developing new functional ingredients, such as the "Renewal Essence" component, which utilizes multi-strain fermentation technology for multiple benefits, and the "Lactobacillus infantis" extract, which shows superior skin barrier repair capabilities [6][8]. - The company has successfully commercialized products like the "Bionic Film" essence lipstick, which has sold over 4.5 million units and generated over 600 million yuan in GMV, becoming the top-selling lipstick globally for Chinese brands [10][13]. Group 3: Talent and Collaboration - Yatsen's R&D strategy is supported by a global talent matrix, with 48% of its R&D team holding advanced degrees, enhancing the company's ability to convert cutting-edge technology into market-ready products [16][17]. - The collaboration between Yatsen and international experts has led to significant recognition, including multiple papers presented at prestigious conferences, establishing the company as a leader in the beauty industry [17][19]. Group 4: Sustainability and Future Outlook - Yatsen is committed to sustainable practices, achieving an ESG A rating from MSCI for two consecutive years, and is the only Chinese beauty company to do so [20]. - The company integrates AI technology into its R&D processes, enhancing efficiency and reducing experimental iterations, exemplified by its development of an anti-aging serum using advanced predictive modeling [20][21]. - Yatsen aims to create a complete R&D ecosystem that encompasses basic research, application development, commercial transformation, and sustainable future initiatives, establishing a "Chinese paradigm" for R&D value realization [22][23].