Yatsen Holding(US:YSG)2025-02-25 17:35Financial Data and Key Metrics Changes - Total net revenues for Q4 2024 increased by 7.1% year-over-year to RMB 1.15 billion from RMB 1.07 billion in the prior year period [24] - Gross margin for Q4 2024 increased to 77.8% from 73.7% in the prior year period, driven by higher gross margin products [10][25] - For the full year 2024, total net revenues decreased by 0.6% year-over-year to RMB 3.39 billion from RMB 3.41 billion [34] - Net loss for the full year 2024 was RMB 710.2 million, a decrease from RMB 750.2 million in the prior year [36] Business Line Data and Key Metrics Changes - Combined revenues from clinical and premium skincare brands grew by 3% year-over-year, while color cosmetics revenues increased by 16.4% in Q4 2024 [9][10] - Skincare revenues grew by 0.7% year-over-year for the full year 2024, with skincare brands accounting for 41.1% of total net revenues [11] - Color cosmetics revenues saw a modest decline of 0.3% year-over-year for the full year 2024 [11] Market Data and Key Metrics Changes - The overall beauty retail sales in China declined by 1.5% year-over-year in Q4 2024, contrasting with total retail sales of consumer goods which grew by 3.8% [8] Company Strategy and Development Direction - The company is focusing on balancing revenue growth between skincare and color cosmetics, with skincare expected to be a stable growth engine [44][49] - Strategic initiatives include enhancing brand equity, refining product and channel mix, and investing in R&D for sustainable growth [13][18] - The company aims to improve operational efficiencies and strategically allocate resources for long-term growth [22] Management's Comments on Operating Environment and Future Outlook - Management noted that headwinds in the beauty market will persist, with intensified price competition and more rational consumer purchasing decisions [44] - The company expects total net revenues for Q1 2025 to be between RMB 788.8 million and RMB 866.2 million, reflecting a year-over-year increase of approximately 2% to 12% [38] Other Important Information - R&D expenses represented 3.2% of total net revenues for the full year 2024, highlighting the company's commitment to innovation [18] - The company achieved its lowest full-year net loss and non-GAAP net loss since 2020 [12] Q&A Session Summary Question: Future profitability expectations for 2025 and resource allocation between categories - Management acknowledged the positive Q4 performance and emphasized the importance of maintaining and improving gross margin growth while balancing growth and profitability [44] - Skincare is expected to remain a key stable growth engine, while color cosmetics, particularly Perfect Diary, are anticipated to contribute to sustainable growth [45][49]