Core Insights - The beauty industry is entering a new life cycle characterized by a general decline, making growth a rare capability [3][4] - Understanding the new cycle's operational logic is essential for finding growth paths amidst industry fluctuations [4][5] Industry Trends - The 2025 China Cosmetics Annual Conference highlighted the industry's transformation and invited over 300 speakers to share insights on growth [4][5] - The event attracted over 2,000 attendees and 20,000 online viewers, indicating a strong desire for answers regarding growth in an uncertain environment [5] Company Strategies - UpBeauty's CEO emphasized sustainable growth based on quality scale, activated organizational mechanisms, and clear strategic layouts, targeting over 10 billion yuan in sales by 2025 [16][17] - Yatsen's CEO shared a threefold growth strategy focusing on global R&D systems, multi-brand operations, and resilient learning organizations, achieving positive growth for four consecutive quarters [19][20] - Shanghai Jahwa's strategy includes focusing on core brands, brand building, online presence, and efficiency, resulting in double-digit growth in the first half of the year [21][24] - Pechoin's CEO highlighted the importance of entering the medical beauty sector to overcome growth challenges, leveraging a comprehensive ecosystem for product offerings [25][27] - Weibo Haitai's founder discussed the necessity of adapting to change as a core driver for industry development, predicting a shift from ingredient promotion to effect-based payment models [30][34] Future Outlook - The industry is expected to see significant growth in aerosol cosmetics, with projections of 900 million units by 2030 [51][56] - The trend towards precision skincare driven by scientific methodologies is anticipated to reshape the market landscape [61][63] - The integration of AI in the beauty industry is expected to enhance innovation and efficiency, with many companies investing in AI technologies [65][67] Market Opportunities - The potential for Chinese brands to expand internationally is significant, with a focus on localizing products and establishing a strong brand presence abroad [40][45] - The emphasis on emotional and experiential aspects of consumer engagement is becoming increasingly important for brand differentiation and growth [81][82]

Core Viewpoint - Yatsen Holding Limited (逸仙电商) has returned to a growth trajectory, with significant improvements in revenue and a reduction in net losses, driven by a strategic shift towards skincare products [2][6]. Financial Performance - For the first half of 2025, Yatsen reported revenue of 1.92 billion yuan (approximately 268 million USD), a year-on-year increase of 22.4% [2][6]. - The net loss for the same period was 22.97 million yuan, a substantial decrease from a net loss of 203 million yuan in the previous year [2][6]. - In Q2 2025, revenue reached 1.09 billion yuan (approximately 152 million USD), reflecting a 36.8% year-on-year growth [6]. - Skincare brand revenue in Q2 2025 was 581.3 million yuan, marking a 78.7% increase, and accounted for 53.5% of total net revenue, up from 40.9% in the previous year [6]. Strategic Initiatives - The company has initiated a "second entrepreneurship" strategy since late 2021, focusing on skincare to diversify its revenue streams [6]. - Yatsen has made acquisitions of high-end brands such as Galénic, DR.WU, and Eve Lom to build a dual-driver model of color cosmetics and skincare [6]. - The company has emphasized R&D investment, with Q2 2025 R&D expenses reaching 36.12 million yuan, representing 3.3% of total revenue, maintaining over 3% for three consecutive years [6]. Future Outlook - The company anticipates total revenue for Q3 2025 to be between 780 million and 880 million yuan, projecting a year-on-year growth of approximately 15% to 30% [7].

Core Insights - The company reported a revenue increase to 830 million yuan in Q1 2025, representing a year-on-year growth of 7.8%, continuing its growth trend [2] - The skincare segment, including brands Galénic, DR.WU, and EVELOM, saw a net income increase of 58%, contributing to a 47.7% growth in skincare revenue, totaling 360 million yuan [2] - The skincare segment accounted for 43.5% of total revenue, maintaining over 30% for 12 consecutive quarters [2] - Gross profit increased by 9.7% year-on-year, with a gross margin rising to 79.1%, marking a historical high for the quarter [2] - The company achieved a Non-GAAP net profit of 7.14 million yuan, marking two consecutive quarters of positive revenue growth and profitability [2] - The company emphasizes R&D as a core strategy for future growth, with Q1 2025 R&D investment nearing 22.64 million yuan, and a cumulative investment of over 580 million yuan since 2020 [2] Market Analysis - Analysts view the Q1 performance as a strong start, with strategic transformation yielding results, laying a solid foundation for stable growth throughout the year [3] - The company projects Q2 2025 total revenue between 810 million and 890 million yuan, indicating a year-on-year growth of approximately 2% to 12% [3] - The board has approved a new stock repurchase plan, allowing for the buyback of up to 30 million USD in common stock over the next 24 months, reflecting management's confidence in the company's long-term prospects [3]