Yatsen Announces Third Quarter 2022 Financial Outcomes

Teleconference to Be Held at 7:30 A.M. United State Eastern Time on November 22, 2022

GUANGZHOU, China, Nov. 22, 2022/ PRNewswire/– Yatsen Holding Limited (” Yatsen” or the “Firm”) (NYSE: YSG), a leading Chinese appeal business, today revealed its unaudited monetary outcomes for the 3rd quarter finished September 30, 2022

3rd Quarter 2022 Emphasizes

• Complete web incomes for the 3rd quarter of 2022 reduced by 36.1% to RMB857.9 million ( US$ 120.6 million) from RMB1.34 billion in the previous year duration.
• Complete web incomes from Skin care Brands^[1] for the 3rd quarter of 2022 raised by 33.0% to RMB269.4 million ( US$ 37.9 million) from RMB202.5 million in the previous year duration. As a portion of complete web incomes, complete web incomes from Skin care Brands for the 3rd quarter of 2022 raised to 31.4% from 15.1% in the previous year duration.
• Gross margin for the 3rd quarter of 2022 was 68.9%, compared to 67.9% in the previous year duration.
• Bottom line for the 3rd quarter of 2022 reduced by 41.7% to RMB210.7 million ( US$ 29.6 million) from RMB361.8 million in the previous year duration. Non-GAAP bottom line^[2] for the 3rd quarter of 2022 reduced by 41.5% to RMB126.5 million ( US$ 17.8 million) from RMB216.3 million in the previous year duration.

Mr. Jinfeng Huang, Owner, Chairman as well as Ceo of Yatsen, mentioned “We began the year with a brand-new five-year tactical advancement strategy to drive our long-lasting as well as lasting development. In the 3rd quarter of 2022, we continued to be concentrated on constructing our brand names, raising functional performance, as well as purchasing R&D. Our Skin care Brands taped strong development in the 3rd quarter of 2022, amidst the softening appeal market as well as rebirth of COVID-19. We have actually likewise seen substantial enhancements in tightening bottom line as well as non-GAAP bottom line as we remained to apply our expense optimization strategy.”

” Our 3rd quarter outcomes show Yatsen’s development possibility as well as the durability of our organization version. We have actually taken actions to enhance the income mix as well as installed architectural performance right into our procedures, boosting our capability to provide on our tactical targets. Because of this, we have actually seen ongoing consecutive enhancements. The complete web incomes added by our Skin care Brands has actually gone beyond 30% of our complete web incomes for 2 successive quarters. Gross margin raised to 68.9%, driven by boosting sales of higher-gross margin items from our Skin care Brands, expense optimization as well as more stringent rates as well as discount rate plans throughout all our brand name profiles. We likewise handled to slim bottom line margin to 24.6% as well as non-GAAP bottom line margin to 14.7% in the 3rd quarter of 2022. With a cash money, limited cash money as well as temporary financial investments equilibrium of RMB2.60 billion at the end of this quarter, we have enough sources as well as adaptability in quest of our long-lasting tactical objectives,” commented Mr. Donghao Yang, Supervisor as well as Principal Financial Policeman of Yatsen.

3rd Quarter 2022 Financial Outcomes

Web Incomes

Complete web incomes for the 3rd quarter of 2022 reduced by 36.1% to RMB857.9 million ( US$ 120.6 million) from RMB1.34 billion in the previous year duration. The decline was largely attributable to a 48.8% decline in web incomes from our Shade Cosmetics Brands^[3], partly balanced out by a 33.0% rise in web incomes from our Skin care Brands.

Gross Earnings as well as Gross Margin

Gross revenue for the 3rd quarter of 2022 reduced by 35.2% to RMB591.3 million ( US$ 83.1 million) from RMB911.8 million in the previous year duration. Gross margin for the 3rd quarter of 2022 raised to 68.9% from 67.9% in the previous year duration. The rise was driven by (i) boosting sales of higher-gross margin items from our Skin care Brands, (ii) expense optimization as well as (iii) more stringent rates as well as discount rate plans throughout all our brand name profiles.

Business Expenses

Complete operating budget for the 3rd quarter of 2022 reduced by 33.1% to RMB857.0 million ( US$ 120.5 million) from RMB1.28 billion in the previous year duration. As a portion of complete web incomes, complete operating budget for the 3rd quarter of 2022 were 99.9%, as compared to 95.4% in the previous year duration.

• Gratification Costs. Gratification costs for the 3rd quarter of 2022 were RMB63.8 million ( US$ 9.0 million), as compared to RMB100.2 million in the previous year duration. As a portion of complete web incomes, satisfaction costs for the 3rd quarter of 2022 reduced to 7.4% from 7.5% in the previous year duration. The decline was largely attributable to a reduction in stockroom as well as logistics expense as a result of optimization of our satisfaction capability.
• Marketing as well as Advertising And Marketing Costs. Marketing as well as advertising costs for the 3rd quarter of 2022 were RMB564.8 million ( US$ 79.4 million), as compared to RMB911.3 million in the previous year duration. As a portion of complete web incomes, marketing as well as advertising costs for the 3rd quarter of 2022 reduced to 65.8% from 67.9% in the previous year duration. The decline was largely attributable to the greater performance of internet marketing tasks, partly balanced out by shop closure-related costs as well as arrangement.
• General as well as Administrative Costs. General as well as management costs for the 3rd quarter of 2022 were RMB194.5 million ( US$ 27.3 million), as compared to RMB233.9 million in the previous year duration. As a portion of complete web incomes, basic as well as management costs for the 3rd quarter of 2022 raised to 22.7% from 17.4% in the previous year duration. The rise was largely attributable to the reduced complete internet incomes in the 3rd quarter of 2022, producing a low-base impact.
• R & D Costs R & d costs for the 3rd quarter of 2022 were RMB33.9 million ( US$ 4.8 million), as compared to RMB35.8 million in the previous year duration. As a portion of complete web incomes, r & d costs for the 3rd quarter of 2022 raised to 3.9% from 2.7% in the previous year duration. The rise was largely attributable to the reduced complete internet incomes in the 3rd quarter of 2022, producing a low-base impact.

Loss from Procedures

Loss from procedures for the 3rd quarter of 2022 reduced by 28.1% to RMB265.7 million ( US$ 37.4 million) from RMB369.3 million in the previous year duration. Running loss margin was 31.0%, as compared to 27.5% in the previous year duration.

Non-GAAP loss from procedures^[4] for the 3rd quarter of 2022 reduced by 26.6% to RMB162.6 million ( US$ 22.9 million) from RMB221.7 million in the previous year duration. Non-GAAP operating loss margin was 19.0%, as compared to 16.5% in the previous year duration.

Bottom Line

Bottom line for the 3rd quarter of 2022 reduced by 41.7% to RMB210.7 million ( US$ 29.6 million) from RMB361.8 million in the previous year duration. Bottom line margin was 24.6%, as compared to 26.9% in the previous year duration. Bottom line attributable to Yatsen’s average investors per thinned down ADS^[5] for the 3rd quarter of 2022 was RMB0.37 ( US$ 0.05), as compared to RMB0.57 in the previous year duration.

Non-GAAP bottom line for the 3rd quarter of 2022 reduced by 41.5% to RMB126.5 million ( US$ 17.8 million) from RMB216.3 million in the previous year duration. Non-GAAP bottom line margin was 14.7%, as compared to 16.1% in the previous year duration. Non-GAAP bottom line attributable to Yatsen’s average investors per thinned down ADS^[6] for the 3rd quarter of 2022 was RMB0.22 ( US$ 0.03), as compared to RMB0.34 in the previous year duration.

Annual Report as well as Capital

Since September 30, 2022, the Firm had cash money, limited cash money as well as temporary financial investments of RMB2.60 billion ( US$ 365.7 million), as compared to RMB3.14 billion since December 31, 2021

Web cash money produced from running tasks for the 3rd quarter of 2022 was RMB21.8 million ( US$ 3.1 million), compared to web cash money made use of in running tasks of RMB225.3 million in the previous year duration.

Service Overview

For the 4th quarter of 2022, the Firm anticipates its complete web incomes to be in between RMB916.7 million as well as RMB1.07 billion, standing for a year-over-year decrease of about 30% to 40%. These projections show the Firm’s existing as well as initial sights on the marketplace as well as functional problems, which go through transform.

Currency Exchange Rate

This statement has translations of particular Renminbi (” RMB”) amounts right into united state bucks (” US$”) at defined prices only for the comfort of the visitor. Unless or else kept in mind, all translations from RMB to US$ were made at a price of RMB7.1135 to US$ 1.00, the currency exchange rate effectively since September 30, 2022, as stated in the H. 10 analytical launch of The Board of Governors of the Federal Book System. The Firm makes no depiction that any kind of RMB or US$ quantities can have been, or can be, exchanged US$ or RMB, probably, at any kind of specific price, or in all.

Teleconference Details

The Firm’s monitoring will certainly hold a teleconference on Tuesday, November 22, 2022, at 7:30 A.M. United State Eastern Time or 8:30 P.M. Beijing Time to review its monetary outcomes as well as running efficiency for the 3rd quarter 2022.

The replay will certainly come via November 29, 2022, by calling the adhering to numbers:

Regarding Yatsen Holding Limited

Yatsen Holding Limited (NYSE: YSG) is a leading gamer in

China’s appeal market with an objective to develop an amazing brand-new trip of appeal exploration for customers in China as well as around the globe. Established in 2016, the Firm has actually introduced as well as obtained numerous shade cosmetics as well as skin care brand names consisting of Perfect Journal, Little Ondine, Abby’s Selection, Galénic, DR.WU (its landmass China organization), Eve Lom as well as Pink Bear The Firm’s front runner brand name, Perfect Journal, is just one of the leading shade cosmetics brand names in China in regards to on the internet retail sales worth. Leveraging its electronically indigenous direct-to-customer organization version, the Firm has actually developed core capacities which allow it to release as well as scale numerous brand names rapidly while providing a vast option of items to an expanding range of consumers. The Firm gets to as well as involves with consumers straight both online as well as offline, with extensive visibility throughout all significant ecommerce, social as well as material systems in China. To find out more, please go to http://ir.yatsenglobal.com/.

Use Non-GAAP Financial Procedures

The Firm makes use of non-GAAP earnings (loss) from procedures, non-GAAP earnings (loss), non-GAAP earnings (loss) attributable to average investors as well as non-GAAP earnings (loss) attributable to average investors per thinned down ADS, each a non-GAAP monetary action, in evaluating as well as evaluating its operating efficiency. The discussion of these non-GAAP monetary actions is not planned to be thought about alone or as an alternative for the monetary details ready as well as provided based on united state GAAP. The Firm provides these non-GAAP monetary actions due to the fact that they are made use of by the monitoring to examine running efficiency as well as create organization strategies. Non-GAAP monetary actions aid determine underlying fads in its organization, give additional details concerning its outcomes of procedures, as well as boost the total understanding of its previous efficiency as well as future leads. The Firm specifies non-GAAP earnings (loss) from procedures as earnings (loss) from procedures omitting share-based payment costs as well as amortization of abstract possessions arising from possessions as well as organization purchases. The Firm specifies non-GAAP earnings (loss) as earnings (loss) omitting (i) share-based payment costs, (ii) amortization of abstract possessions arising from possessions as well as organization purchases, (iii) revaluation of financial investments on the share of equity technique financial investments, as well as (iv) tax obligation impacts on non-GAAP changes. The Firm specifies non-GAAP earnings (loss) attributable to average investors as earnings (loss) attributable to average investors omitting (i) share-based payment costs, (ii) amortization of abstract possessions arising from possessions as well as organization purchases, (iii) revaluation of financial investments on the share of equity technique financial investments as well as (iv) tax obligation impacts on non-GAAP changes. Non-GAAP earnings (loss) attributable to average investors per thinned down ADS is calculated making use of non-GAAP earnings (loss) attributable to average investors separated by heavy typical variety of watered down ADS superior for calculating watered down revenues per ADS.

Nonetheless, the non-GAAP monetary actions have constraints as logical devices as the non-GAAP monetary actions are absent based on united state GAAP as well as might vary from the non-GAAP details made use of by various other firms, consisting of peer firms, as well as for that reason their comparability might be restricted. The Firm makes up for these constraints by integrating the non-GAAP monetary actions to the local united state GAAP efficiency action, every one of which need to be thought about when assessing efficiency. The Firm urges capitalists as well as others to evaluate its monetary details in its whole as well as not depend on a solitary monetary action. Settlements of Yatsen’s non-GAAP monetary action to one of the most similar united state GAAP action are consisted of at the end of this news release.

Safe Harbor Declaration

This statement has declarations that might make up “progressive” declarations which are made according to the “risk-free harbor” arrangements of the united state Personal Stocks Lawsuits Reform Act of 1995. These progressive declarations can be determined by terms such as “will,” “anticipates,” “prepares for,” “purposes,” “future,” “means,” “strategies,” “thinks,” “quotes,” “most likely to,” as well as comparable declarations. The Firm might likewise make composed or dental progressive declarations in its regular records to the Stocks as well as Exchange Compensation (” SEC”), in its yearly record to investors, in news release as well as various other written products as well as in dental declarations made by its policemans, supervisors or staff members to 3rd parties. Declarations that are not historic realities, consisting of declarations concerning the Firm’s ideas, strategies, expectation as well as assumptions, are progressive declarations. Positive declarations entail fundamental threats as well as unpredictabilities. A variety of aspects can create real outcomes to vary materially from those consisted of in any kind of progressive declaration, that include however not restricted to the following: the Firm’s development approaches; its future organization advancement, outcomes of procedures as well as monetary problem; its capability to remain to turn out preferred items as well as keep appeal of existing items; its capability to expect as well as reply to modifications in market fads as well as customer choices as well as actions in a prompt fashion; its capability to draw in as well as keep brand-new consumers as well as to raise incomes produced from repeat consumers; its assumptions relating to need for as well as market approval of its product or services; its capability to incorporate newly-acquired organizations as well as brand names; fads as well as competitors in as well as pertinent federal government plans as well as guidelines connecting to

China’s appeal market; modifications in its incomes as well as particular expense or cost products; as well as basic financial problems worldwide as well as in China More details relating to these as well as various other threats is consisted of in the Firm’s filings with the SEC. All details offered in this news release is since the day of this news release, as well as the Firm does not take on any kind of responsibility to upgrade any kind of progressive declaration, other than as needed under relevant regulation. For financier as well as media questions, please call:

In China:

Yatsen Holding Limited

Financier Relations
Email:
The Piacente Team, Inc.[email protected]

Emilie Wu
Tel: +86-21-6039-8363
Email:
In the [email protected]

USA: The Piacente Team, Inc.

Brandi Piacente
Tel: +1 -212 -481 -2050
Email:
YATSEN HOLDING LIMITED[email protected]