Yatsen Announces Fourth Quarter and Full Year 2024 Financial Results

Rhea-AI Summary

Yatsen Holding (NYSE: YSG) announced its Q4 and full year 2024 financial results, showing mixed performance. Q4 total net revenues increased by 7.1% to RMB1.15 billion (US$157.3 million), while full year revenues slightly decreased by 0.6% to RMB3.39 billion (US$464.9 million).

The company achieved significant improvements in profitability metrics. Q4 gross margin increased to 77.8% from 73.7% year-over-year, and full year gross margin rose to 77.1% from 73.6%. Q4 delivered a non-GAAP net income of RMB107.0 million (US$14.7 million), compared to a non-GAAP net loss in the prior year period.

Despite these improvements, Yatsen recorded a Q4 net loss of RMB378.8 million (US$51.9 million), primarily due to a RMB403.1 million goodwill impairment related to Eve Lom. For Q1 2025, the company expects total net revenues between RMB788.8 million and RMB866.2 million, representing a year-over-year increase of approximately 2% to 12%.

Positive

• Q4 2024 total net revenues increased by 7.1% year-over-year to RMB1.15 billion
• Q4 2024 gross margin improved to 77.8% from 73.7% in the prior year period
• Q4 2024 achieved non-GAAP net income of RMB107.0 million with 9.3% margin
• Full year 2024 gross margin increased to 77.1% from 73.6% year-over-year
• Net revenues from Color Cosmetics Brands increased by 16.4% year-over-year in Q4
• Q1 2025 revenue guidance projects 2-12% year-over-year growth

Negative

• Full year 2024 total net revenues decreased by 0.6% to RMB3.39 billion
• Q4 2024 net loss of RMB378.8 million due to RMB403.1 million goodwill impairment
• Full year 2024 net loss of RMB710.2 million
• Cash, restricted cash and short-term investments decreased to RMB1.36 billion from RMB2.08 billion year-over-year
• Net cash used in operating activities for full year 2024 was RMB243.7 million, compared to RMB107.4 million in 2023

Insights

Financial Analyst

Yatsen's Q4 and full-year 2024 results reveal a company making meaningful progress in its strategic transformation despite operating in China's challenging beauty market. The 7.1% year-over-year revenue growth in Q4 represents a significant turnaround from previous quarters, driven primarily by the recovery of Perfect Diary and modest growth across skincare brands.

The most compelling development is Yatsen's dramatic profitability improvement. The company achieved non-GAAP net income of RMB107 million in Q4 with a 9.3% margin, compared to a loss in the prior year period. This represents a potential inflection point in the company's financial trajectory, driven by three key factors:

• Gross margin expansion to 77.8% (up 410 basis points year-over-year) through improved product mix
• Selling and marketing expense reduction to 60.1% of revenue (down from 66.9%) through more efficient marketing
• General and administrative expense reduction to 8.7% of revenue (down from 14.8%) through headcount optimization

However, the RMB403.1 million goodwill impairment related to Eve Lom signals continuing challenges in scaling premium skincare acquisitions to meet initial growth expectations. This underscores the difficulty in executing the company's premiumization strategy in a competitive market.

The cash position decline to RMB1.36 billion from RMB2.08 billion year-over-year is concerning, particularly as operating cash flow for the full year was negative. While Q4 generated positive operating cash flow of RMB202.2 million, investors should monitor whether this improvement is sustainable or seasonal.

Yatsen's 2-12% revenue growth guidance for Q1 2025 suggests management sees continued momentum in their core business despite seasonal factors that typically make Q1 weaker. This confidence likely stems from the recovery trajectory in color cosmetics and stable performance in skincare.

For investors, the key question remains whether Yatsen can maintain its operational improvements while returning to consistent top-line growth. The achievement of non-GAAP profitability represents meaningful progress, but sustainable GAAP profitability will require addressing underperforming assets and further optimizing the brand portfolio.

Conference Call to Be Held at 7:30 A.M. U.S. Eastern Time on February 25, 2025

GUANGZHOU, China, Feb. 25, 2025 /PRNewswire/ -- Yatsen Holding Limited ("Yatsen" or the "Company") (NYSE: YSG), a leading China-based beauty group, today announced its unaudited financial results for the fourth quarter and full year ended December 31, 2024.

Fourth Quarter and Full Year 2024 Highlights

• Total net revenues for the fourth quarter of 2024 increased by 7.1% to RMB1.15 billion (US$157.3 million) from RMB1.07 billion for the prior year period. Total net revenues for the full year of 2024 decreased by 0.6% to RMB3.39 billion (US$464.9 million) from RMB3.41 billion for the prior year period.
• Total net revenues from Skincare Brands^[1] for the fourth quarter of 2024 were RMB554.8 million (US$76.0 million), remaining flat as compared with the prior year period. As a percentage of total net revenues, total net revenues from Skincare Brands for the fourth quarter of 2024 were 48.3%, as compared with 51.7% for the prior year period. Total net revenues from Skincare Brands for the full year of 2024 increased by 0.7% to RMB1.39 billion (US$190.9 million) from RMB1.38 billion for the prior year period. As a percentage of total net revenues, total net revenues from Skincare Brands for the full year of 2024 were 41.1%, as compared with 40.5% for the prior year period.
• Gross margin for the fourth quarter of 2024 increased to 77.8% from 73.7% for the prior year period. Gross margin for the full year of 2024 increased to 77.1% from 73.6% for the prior year period.
• Net loss for the fourth quarter of 2024 decreased by 23.4% to RMB378.8 million (US$51.9 million) from RMB494.5 million for the prior year period. Net loss for the full year of 2024 decreased by 5.3% to RMB710.2 million (US$97.3 million) from RMB750.2 million for the prior year period. Non-GAAP net income^[2] for the fourth quarter of 2024 was RMB107.0 million (US14.7 million), as compared with non-GAAP net loss of RMB93.7 million for the prior year period. Non-GAAP net loss for the full year of 2024 decreased by 56.7% to RMB128.2 million (US$17.6 million) from RMB296.1 million for the prior year period.

Mr. Jinfeng Huang, Founder, Chairman and Chief Executive Officer of Yatsen, stated, "We are pleased to share our solid performance in the fourth quarter of 2024, despite the continued challenges in the beauty market. We achieved year-over-year growth in total net revenues for the fourth quarter, driven by the recovery of Perfect Diary as well as the combined growth of our three major skincare brands. In terms of profitability, we also made solid progress, narrowing our net loss margin while delivering non-GAAP net income for the quarter. This performance reflects the success of our strategic initiatives in product development, brand building, and cost optimization. As we move forward, we will remain committed to our strategic transformation plan and are confident in our ability to navigate the evolving market dynamics and drive sustainable growth." 

Mr. Donghao Yang, Director and Chief Financial Officer of Yatsen, commented, "Our financial results for the fourth quarter and full year of 2024 demonstrate the effective execution of our strategic transformation. In the fourth quarter, we achieved a 7.1% year-over-year increase in net revenues, in line with our guidance. Our gross margin rose to 77.8%, up from 73.7% for the prior year period. While we recorded a net loss, primarily due to a goodwill impairment of RMB403.1 million, we achieved solid non-GAAP net income with a 9.3% margin.^[3] For the full year 2024, our total net revenues declined by 0.6% year over year, reflecting overall stability. Meanwhile, our gross margin, net loss margin, and non-GAAP net loss margin all showed improvements compared with the prior year. Looking ahead, we will continue to enhance our operational efficiencies and strategically allocate resources to position the company for long-term success."

Fourth Quarter 2024 Financial Results

Net Revenues

Total net revenues for the fourth quarter of 2024 increased by 7.1% to RMB1.15 billion (US$157.3 million) from RMB1.07 billion for the prior year period. The increase was primarily due to a 16.4% year-over-year increase in net revenues from Color Cosmetics Brands.^[4]

Gross Profit and Gross Margin

Gross profit for the fourth quarter of 2024 increased by 13.0% to RMB893.0 million (US$122.3 million) from RMB790.1 million for the prior year period. Gross margin for the fourth quarter of 2024 increased to 77.8% from 73.7% for the prior year period. The increase was primarily driven by an increase in sales of higher-gross-margin products.

Operating Expenses

Total operating expenses for the fourth quarter of 2024 decreased by 3.5% to RMB1.28 billion (US$175.9 million) from RMB1.33 billion for the prior year period. As a percentage of total net revenues, total operating expenses for the fourth quarter of 2024 were 111.8%, as compared with 124.0% for the prior year period.

• Fulfillment Expenses. Fulfillment expenses for the fourth quarter of 2024 were RMB63.5 million (US$8.7 million), as compared with RMB62.7 million for the prior year period. As a percentage of total net revenues, fulfillment expenses for the fourth quarter of 2024 decreased to 5.5% from 5.8% for the prior year period. The decrease was primarily due to an increase in the overall average selling price of the Company's products, as well as further improvements in logistics efficiency.
• Selling and Marketing Expenses. Selling and marketing expenses for the fourth quarter of 2024 were RMB690.6 million (US$94.6 million), as compared with RMB717.4 million for the prior year period. As a percentage of total net revenues, selling and marketing expenses for the fourth quarter of 2024 decreased to 60.1% from 66.9% for the prior year period. The decrease was primarily due to the Company's more strategic marketing spending, combined with lower payroll expenses related to selling and marketing personnel.
• General and Administrative Expenses. General and administrative expenses for the fourth quarter of 2024 were RMB100.1 million (US$13.7 million), as compared with RMB158.7 million for the prior year period. As a percentage of total net revenues, general and administrative expenses for the fourth quarter of 2024 decreased to 8.7% from 14.8% for the prior year period. The decrease was primarily attributable to lower payroll expenses resulting from a reduction in general and administrative headcount and lower share-based compensation expenses.
• Research and Development Expenses. Research and development expenses for the fourth quarter of 2024 were RMB26.3 million (US$3.6 million), as compared with RMB36.9 million for the prior year period. As a percentage of total net revenues, research and development expenses for the fourth quarter of 2024 decreased to 2.3% from 3.4% for the prior year period. The decrease was primarily attributable to the Company's efforts to maintain research and development expenses at a reasonable level relative to total net revenues.
• Impairment of Goodwill. Impairment of goodwill for the fourth quarter of 2024 was RMB403.1 million (US$55.2 million), as compared with RMB354.0 million in the prior year period. Impairment recorded in this quarter mainly represents the amount by which the carrying value of the Eve Lom reporting unit exceeded its fair value, based on the quantitative goodwill impairment test, primarily due to weaker operating results than expected.

Loss / Income from Operations

Loss from operations for the fourth quarter of 2024 was RMB390.7 million (US$53.5 million), as compared with RMB539.6 million for the prior year period. Operating loss margin was 34.0%, as compared with 50.3% for the prior year period.

Non-GAAP income from operations^[5] for the fourth quarter of 2024 was RMB93.2 million (US$12.8 million), as compared with non-GAAP loss from operations of RMB125.9 million for the prior year period. Non-GAAP operating income margin^[6] was 8.1%, as compared with non-GAAP operating loss margin of 11.7% for the prior year period.

Net Loss / Income

Net loss for the fourth quarter of 2024 was RMB378.8 million (US$51.9 million), as compared with RMB494.5 million for the prior year period. Net loss margin was 33.0%, as compared with 46.1% for the prior year period. Net loss attributable to Yatsen's ordinary shareholders per diluted ADS^[7] for the fourth quarter of 2024 was RMB3.98 (US$0.55), as compared with RMB4.57 for the prior year period.

Non-GAAP net income for the fourth quarter of 2024 was RMB107.0 million (US$14.7 million), as compared with non-GAAP net loss of RMB93.7 million for the prior year period. Non-GAAP net income margin was 9.3%, as compared with non-GAAP net loss margin of 8.7% for the prior year period. Non-GAAP net income attributable to Yatsen's ordinary shareholders per diluted ADS^[8] for the fourth quarter of 2024 was RMB0.99 (US$0.14), as compared with non-GAAP net loss attributable to Yatsen's ordinary shareholders per diluted ADS of RMB0.84 for the prior year period.

Full Year 2024 Financial Results

Total net revenues for the full year of 2024 decreased by 0.6% to RMB3.39 billion (US$464.9 million) from RMB3.41 billion for the prior year period, primarily attributable to the decline in net revenues from Color Cosmetics Brands, partially offset by the increase in net revenues from Skincare Brands.

Gross profit for the full year of 2024 increased by 4.1% to RMB2.62 billion (US$358.6 million) from RMB2.51 billion for the prior year period. Gross margin for the full year of 2024 increased to 77.1% from 73.6% for the prior year period. The increase was primarily attributable to increasing sales of higher-gross margin products. 

Loss from operations for the full year of 2024 was RMB824.9 million (US$113.0 million), as compared with RMB913.4 million for the prior year period. Operating loss margin decreased to 24.3% from 26.7% for the prior year period.

Non-GAAP loss from operations for the full year of 2024 was RMB224.3 million (US$30.7 million), as compared with RMB427.5 million for the prior year period. Non-GAAP operating loss margin decreased to 6.6% from 12.5% for the prior year period.

Net loss for the full year of 2024 was RMB710.2 million (US$97.3 million), as compared with RMB750.2 million for the prior year period. Net loss margin decreased to 20.9% from 22.0% for the prior year period. Net loss attributable to Yatsen's ordinary shareholders per diluted ADS for the full year of 2024 was RMB6.99 (US$0.96), as compared with RMB6.81 for the prior year period.

Non-GAAP net loss for the full year of 2024 was RMB128.2 million (US$17.6 million), as compared with RMB296.1 million for the prior year period. Non-GAAP net loss margin decreased to 3.8% from 8.7% for the prior year period. Non-GAAP net loss attributable to Yatsen's ordinary shareholders per diluted ADS for the full year of 2024 was RMB1.26 (US$0.17), as compared with RMB2.66 for the prior year period.

Balance Sheet and Cash Flow

As of December 31, 2024, the Company had cash, restricted cash and short-term investments of RMB1.36 billion (US$185.8 million), as compared with RMB2.08 billion as of December 31, 2023.

Net cash generated from operating activities for the fourth quarter of 2024 was RMB202.2 million (US$27.7 million), as compared with RMB90.5 million for the prior year period. Net cash used in operating activities for the full year of 2024 was RMB243.7 million (US$33.4 million), as compared with RMB107.4 million for the prior year period.

Business Outlook

For the first quarter of 2025, the Company expects its total net revenues to be between RMB788.8 million and RMB866.2 million, representing a year-over-year increase of approximately 2% to 12%. These forecasts reflect the Company's current and preliminary views on the market and operational conditions, which are subject to change.

Exchange Rate

This announcement contains translations of certain Renminbi ("RMB") amounts into U.S. dollars ("US$") at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to US$ were made at a rate of RMB7.2993 to US$1.00, the exchange rate in effect as of December 31, 2024, as set forth in the H.10 statistical release of The Board of Governors of the Federal Reserve System. The Company makes no representation that any RMB or US$ amounts could have been, or could be, converted into US$ or RMB, as the case may be, at any particular rate, or at all.

[1] Include net revenues from Galénic, DR.WU (its mainland China business), Eve Lom and other skincare brands of the Company.

[2] Non-GAAP net income (loss) is a non-GAAP financial measure. Non-GAAP net income (loss) is defined as net income (loss) excluding (i) share-based compensation expenses, (ii) amortization of intangible assets resulting from assets and business acquisitions, (iii) revaluation of investments on the share of equity method investments, (iv) impairment of goodwill and (v) tax effects on non-GAAP adjustments.

[3] Non-GAAP net income (loss) margin is a non-GAAP financial measure, which is defined as non-GAAP net income (loss) as a percentage of total net revenues.

[4] Include Perfect Diary, Little Ondine, Pink Bear and other color cosmetics brands of the Company.

[5] Non-GAAP income (loss) from operations is a non-GAAP financial measure. Non-GAAP income (loss) from operations is defined as income (loss) from operations excluding (i) share-based compensation expenses, (ii) amortization of intangible assets resulting from assets and business acquisitions and (iii) impairment of goodwill.

[6] Non-GAAP operating income (loss) margin is a non-GAAP financial measure, which is defined as non-GAAP net income (loss) from operations as a percentage of total net revenues.

[7] ADS refers to American depositary shares, each of which represents twenty Class A ordinary shares, effective from March 18, 2024. Prior to that date, each ADS represented four Class A ordinary shares. Unless otherwise stated, the current ADS ratio has been applied retrospectively to all periods presented in this document.

[8] Non-GAAP net income (loss) attributable to ordinary shareholders per diluted ADS is a non-GAAP financial measure. Non-GAAP net income (loss) attributable to ordinary shareholders per diluted ADS is defined as non-GAAP net income (loss) attributable to ordinary shareholders divided by the weighted average number of diluted ADS outstanding for computing diluted earnings per ADS. Non-GAAP net income (loss) attributable to ordinary shareholders is defined as net income (loss) attributable to ordinary shareholders excluding (i) share-based compensation expenses, (ii) amortization of intangible assets resulting from assets and business acquisitions, (iii) revaluation of investments on the share of equity method investments, (iv) impairment of goodwill, (v) tax effects on non-GAAP adjustments and (vi) accretion to redeemable non-controlling interests.

Conference Call Information

The Company's management will hold a conference call on Tuesday, February 25, 2025, at 7:30 A.M. U.S. Eastern Time or 8:30 P.M. Beijing Time to discuss its financial results and operating performance for the fourth quarter and full year 2024.

United States (toll free):	+1-888-346-8982
International:	+1-412-902-4272
Mainland China (toll free):	400-120-1203
Hong Kong, SAR (toll free):	800-905-945
Hong Kong, SAR:	+852-3018-4992
Conference ID:	5014463

The replay will be accessible through Tuesday, March 4, by dialing the following numbers:

United States:							+1-877-344-7529
International:							+1-412-317-0088
Replay Access Code:							5014463

A live and archived webcast of the conference call will also be available on the Company's investor relations website at http://ir.yatsenglobal.com.

About Yatsen Holding Limited

Yatsen Holding Limited (NYSE: YSG) is a leading China-based beauty group with the mission of creating an exciting new journey of beauty discovery for consumers around the world. Founded in 2016, the Company has launched and acquired numerous color cosmetics and skincare brands including Perfect Diary, Little Ondine, Pink Bear, Galénic, DR.WU (its mainland China business), Eve Lom and EANTiM. The Company's flagship brand, Perfect Diary, is one of the leading color cosmetics brands in China in terms of retail sales value. The Company primarily reaches and engages with customers directly both online and offline, with expansive presence across all major e-commerce, social and content platforms in China.

For more information, please visit http://ir.yatsenglobal.com.

Use of Non-GAAP Financial Measures

The Company uses non-GAAP income (loss) from operations, non-GAAP operating income (loss) margin, non-GAAP net income (loss), non-GAAP net income (loss) margin, non-GAAP net income (loss) attributable to ordinary shareholders and non-GAAP net income (loss) attributable to ordinary shareholders per diluted ADS, each a non-GAAP financial measure, in reviewing and assessing its operating performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. The Company presents these non-GAAP financial measures because they are used by the management to evaluate operating performance and formulate business plans. Non-GAAP financial measures help identify underlying trends in its business, provide further information about its results of operations, and enhance the overall understanding of its past performance and future prospects. The Company defines non-GAAP income (loss) from operations as income (loss) from operations excluding (i) share-based compensation expenses, (ii) amortization of intangible assets resulting from assets and business acquisitions and (iii) impairment of goodwill. Non-GAAP operating income (loss) margin is non-GAAP income (loss) from operations as a percentage of total net revenues. The Company defines non-GAAP net income (loss) as net income (loss) excluding (i) share-based compensation expenses, (ii) amortization of intangible assets resulting from assets and business acquisitions, (iii) revaluation of investments on the share of equity method investments, (iv) impairment of goodwill and (v) tax effects on non-GAAP adjustments. Non-GAAP net income (loss) margin is non-GAAP net income (loss) as a percentage of total net revenues. The Company defines non-GAAP net income (loss) attributable to ordinary shareholders as net income (loss) attributable to ordinary shareholders excluding (i) share-based compensation expenses, (ii) amortization of intangible assets resulting from assets and business acquisitions, (iii) revaluation of investments on the share of equity method investments, (iv) impairment of goodwill, (v) tax effects on non-GAAP adjustments and (vi) accretion to redeemable non-controlling interests. Non-GAAP net income (loss) attributable to ordinary shareholders per diluted ADS is computed using non-GAAP net income (loss) attributable to ordinary shareholders divided by weighted average number of diluted ADS outstanding for computing diluted earnings per ADS.

However, the non-GAAP financial measures have limitations as analytical tools as the non-GAAP financial measures are not presented in accordance with U.S. GAAP and may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited. The Company compensates for these limitations by reconciling the non-GAAP financial measures to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating performance. The Company encourages investors and others to review its financial information in its entirety and not rely on a single financial measure. Reconciliations of Yatsen's non-GAAP financial measure to the most comparable U.S. GAAP measure are included at the end of this press release.

Safe Harbor Statement

This announcement contains statements that may constitute "forward-looking" statements which are made pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "aims," "future," "intends," "plans," "believes," "estimates," "likely to," and similar statements. The Company may also make written or oral forward-looking statements in its periodic reports to the Securities and Exchange Commission ("SEC"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company's beliefs, plans, outlook and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company's growth strategies; its future business development, results of operations and financial condition; its ability to continue to roll out popular products and maintain popularity of existing products; its ability to anticipate and respond to changes in industry trends and consumer preferences and behavior in a timely manner; its ability to attract and retain new customers and to increase revenues generated from repeat customers; its expectations regarding demand for and market acceptance of its products and services; its ability to integrate newly-acquired businesses and brands; trends and competition in and relevant government policies and regulations relating to China's beauty market; changes in its revenues and certain cost or expense items; and general economic conditions globally and in China. Further information regarding these and other risks is included in the Company's filings with the SEC. All information provided in this press release is as of the date of this press release, and the Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

For investor and media inquiries, please contact:

In China:

Yatsen Holding Limited
Investor Relations
E-mail: ir@yatsenglobal.com

Piacente Financial Communications
Hui Fan
Tel: +86-10-6508-0677
E-mail: yatsen@thepiacentegroup.com

In the United States:

Piacente Financial Communications
Brandi Piacente
Tel: +1-212-481-2050
E-mail: yatsen@thepiacentegroup.com

 

 

 

YATSEN HOLDING LIMITED UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (All amounts in thousands, except for share, per share data or otherwise noted)
		December 31,				December 31,				December 31,
		2023				2024				2024
		RMB'000				RMB'000				USD'000
Assets
Current assets
Cash and cash equivalents			836,888				817,395				111,983
Restricted cash			21,248				-				-
Short-term investments			1,218,481				539,130				73,861
Accounts receivable, net			198,851				214,558				29,394
Inventories, net			352,090				386,054				52,889
Prepayments and other current assets			303,841				381,404				52,252
Amounts due from related parties			20,200				9,113				1,248
Total current assets			2,951,599				2,347,654				321,627
Non-current assets
Investments			618,752				664,579				91,047
Property and equipment, net			64,878				74,373				10,189
Goodwill, net			556,567				155,029				21,239
Intangible assets, net			671,396				559,708				76,680
Deferred tax assets			1,375				1,381				189
Right-of-use assets, net			114,348				147,501				20,208
Other non-current assets			27,100				20,642				2,828
Total non-current assets			2,054,416				1,623,213				222,380
Total assets			5,006,015				3,970,867				544,007
Liabilities, redeemable non-controlling interests and shareholders' equity
Current liabilities
Accounts payable			105,691				72,090				9,876
Advances from customers			41,579				19,574				2,682
Accrued expenses and other liabilities			391,217				460,143				63,039
Amounts due to related parties			9,431				28,884				3,957
Income tax payables			17,946				20,088				2,752
Lease liabilities due within one year			45,464				39,409				5,399
Total current liabilities			611,328				640,188				87,705
Non-current liabilities
Deferred tax liabilities			111,591				103,306				14,153
Deferred income-non current			30,556				14,832				2,032
Lease liabilities			67,767				109,526				15,005
Total non-current liabilities			209,914				227,664				31,190
Total liabilities			821,242				867,852				118,895
Redeemable non-controlling interests			51,466				50,984				6,985
Shareholders' equity
Ordinary Shares (US$0.00001 par value; 10,000,000,000 ordinary shares authorized, comprising of 6,000,000,000 Class A ordinary shares, 960,852,606 Class B ordinary shares and 3,039,147,394 shares each of such classes to be designated as of December 31, 2023 and December 31, 2024; 2,030,600,883 Class A shares and 666,572,880 Class B ordinary shares issued as of December 31, 2023, 2,096,600,883 Class A shares and 600,572,880 Class B ordinary shares issued as of December 31, 2024; 1,487,546,132 Class A ordinary shares and 666,572,880 Class B ordinary shares outstanding as of December 31, 2023, 1,234,627,468 Class A ordinary shares and 600,572,880 Class B ordinary shares outstanding as of December 31, 2024)			173				173				24
Treasury shares			(864,568)				(1,276,330)				(174,856)
Additional paid-in capital			12,260,208				12,273,767				1,681,499
Statutory reserve			24,177				28,147				3,856
Accumulated deficit			(7,345,153)				(8,057,297)				(1,103,845)
Accumulated other comprehensive income			60,200				86,866				11,900
Total Yatsen Holding Limited shareholders' equity			4,135,037				3,055,326				418,578
Non-controlling interests			(1,730)				(3,295)				(451)
Total shareholders' equity			4,133,307				3,052,031				418,127
Total liabilities, redeemable non-controlling interests and shareholders' equity			5,006,015				3,970,867				544,007

 

 

 

YATSEN HOLDING LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (All amounts in thousands, except for share, per share data or otherwise noted)
		For the Three Months Ended December 31,												For the Year Ended December 31,
		2023				2024				2024				2023				2024				2024
		RMB'000				RMB'000				USD'000				RMB'000				RMB'000				USD'000
Total net revenues			1,072,691				1,148,522				157,347				3,414,774				3,393,414				464,896
Total cost of revenues			(282,548)				(255,536)				(35,008)				(901,455)				(776,236)				(106,344)
Gross profit			790,143				892,986				122,339				2,513,319				2,617,178				358,552
Operating expenses:
Fulfilment expenses			(62,741)				(63,517)				(8,702)				(229,021)				(216,540)				(29,666)
Selling and marketing expenses			(717,439)				(690,584)				(94,610)				(2,230,974)				(2,268,793)				(310,823)
General and administrative expenses			(158,716)				(100,122)				(13,717)				(500,942)				(444,373)				(60,879)
Research and development expenses			(36,851)				(26,345)				(3,609)				(111,698)				(109,287)				(14,972)
Impairment of goodwill			(354,039)				(403,076)				(55,221)				(354,039)				(403,076)				(55,221)
Total operating expenses			(1,329,786)				(1,283,644)				(175,859)				(3,426,674)				(3,442,069)				(471,561)
Loss from operations			(539,643)				(390,658)				(53,520)				(913,355)				(824,891)				(113,009)
Financial income			15,763				20,973				2,873				89,020				86,136				11,801
Foreign currency exchange gain (loss)			6,400				(22,129)				(3,032)				7,218				(20,399)				(2,795)
Income (loss) from equity method investments, net			4,446				(8,104)				(1,110)				10,122				1,386				190
Other income, net			15,612				18,726				2,565				53,558				44,461				6,091
Loss before income tax expenses			(497,422)				(381,192)				(52,224)				(753,437)				(713,307)				(97,722)
Income tax benefits			2,896				2,388				327				3,210				3,086				423
Net loss			(494,526)				(378,804)				(51,897)				(750,227)				(710,221)				(97,299)
Net loss (income) attributable to non- controlling interests and redeemable non- controlling interests			4,011				(5,430)				(744)				5,439				2,047				280
Accretion to redeemable non-controlling interests			-				-				-				(2,975)				-				-
Net loss attributable to Yatsen's shareholders			(490,515)				(384,234)				(52,641)				(747,763)				(708,174)				(97,019)
Net loss attributable to ordinary shareholders of Yatsen			(490,515)				(384,234)				(52,641)				(747,763)				(708,174)				(97,019)
Shares used in calculating loss per share (1):
Weighted average number of Class A and Class B ordinary shares:
Basic			2,146,881,745				1,930,413,426				1,930,413,426				2,195,818,231				2,025,072,131				2,025,072,131
Diluted			2,146,881,745				1,930,413,426				1,930,413,426				2,195,818,231				2,025,072,131				2,025,072,131
Net loss per Class A and Class B ordinary share
Basic			(0.23)				(0.20)				(0.03)				(0.34)				(0.35)				(0.05)
Diluted			(0.23)				(0.20)				(0.03)				(0.34)				(0.35)				(0.05)
Net loss per ADS (20 ordinary shares equal to 1 ADS) (2)
Basic			(4.57)				(3.98)				(0.55)				(6.81)				(6.99)				(0.96)
Diluted			(4.57)				(3.98)				(0.55)				(6.81)				(6.99)				(0.96)
		For the Three Months Ended December 31,												For the Year Ended December 31,
		2023				2024				2024				2023				2024				2024
Share-based compensation expenses are included in the operating expenses as follows:		RMB'000				RMB'000				USD'000				RMB'000				RMB'000				USD'000
Fulfilment expenses			256				237				32				2,055				387				53
Selling and marketing expenses			3,298				2,259				309				23,518				(42)				(6)
General and administrative expenses			39,688				17,443				2,390				46,902				89,941				12,322
Research and development expenses			1,241				356				49				5,027				888				122
Total			44,483				20,295				2,780				77,502				91,174				12,491

(1)   Authorized share capital is re-classified and re-designated into Class A ordinary shares and Class B ordinary shares, with each Class A ordinary share being entitled to one vote and each Class B ordinary share being entitled to twenty votes on all matters that are subject to shareholder vote.

(2)   Effective from March 18, 2024, the Company changed its ADS to Class A Ordinary Share ratio from one ADS representing four ordinary shares to one ADS representing twenty ordinary shares. The historical and present income (loss) per ADS have been adjusted retroactively for all periods presented to reflect this change.

 

 

 

YATSEN HOLDING LIMITED UNAUDITED RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS (All amounts in thousands, except for share, per share data or otherwise noted)
		For the Three Months Ended December 31,												For the Year Ended December 31,
		2023				2024				2024				2023				2024				2024
		RMB'000				RMB'000				USD'000				RMB'000				RMB'000				USD'000
Loss from operations			(539,643)				(390,658)				(53,520)				(913,355)				(824,891)				(113,009)
Share-based compensation expenses			44,483				20,295				2,780				77,502				91,174				12,491
Impairment of goodwill			354,039				403,076				55,221				354,039				403,076				55,221
Amortization of intangible assets resulting from assets and business acquisitions			15,231				60,447				8,281				54,297				106,385				14,575
Non-GAAP (loss) income from operations			(125,890)				93,160				12,762				(427,517)				(224,256)				(30,722)
Net loss			(494,526)				(378,804)				(51,897)				(750,227)				(710,221)				(97,299)
Share-based compensation expenses			44,483				20,295				2,780				77,502				91,174				12,491
Impairment of goodwill			354,039				403,076				55,221				354,039				403,076				55,221
Amortization of intangible assets resulting from assets and business acquisitions			15,231				60,447				8,281				54,297				106,385				14,575
Revaluation of investments on the share of equity method investments			(10,337)				7,386				1,012				(22,324)				(10,019)				(1,373)
Tax effects on non-GAAP adjustments			(2,635)				(5,421)				(743)				(9,356)				(8,644)				(1,184)
Non-GAAP net (loss) income			(93,745)				106,979				14,654				(296,069)				(128,249)				(17,569)
Net loss attributable to Yatsen's shareholders			(490,515)				(384,234)				(52,641)				(747,763)				(708,174)				(97,019)
Share-based compensation expenses			44,483				20,295				2,780				77,502				91,174				12,491
Impairment of goodwill			354,039				403,076				55,221				354,039				403,076				55,221
Amortization of intangible assets resulting from assets and business acquisitions			14,945				60,079				8,231				53,214				104,853				14,365
Revaluation of investments on the share of equity method investments			(10,337)				7,386				1,012				(22,324)				(10,019)				(1,373)
Tax effects on non-GAAP adjustments			(2,635)				(5,393)				(739)				(9,356)				(8,533)				(1,169)
Accretion to redeemable non- controlling interests			-				-				-				2,975				-				-
Non-GAAP net (loss) income attributable to Yatsen's shareholders			(90,020)				101,209				13,864				(291,713)				(127,623)				(17,484)
Shares used in calculating loss per share:
Weighted average number of Class A and Class B ordinary shares:
Basic			2,146,881,745				1,930,413,426				1,930,413,426				2,195,818,231				2,025,072,131				2,025,072,131
Diluted			2,146,881,745				2,049,750,667				2,049,750,667				2,195,818,231				2,025,072,131				2,025,072,131
Non-GAAP net (loss) income attributable to ordinary shareholders per Class A and Class B ordinary share
Basic			(0.04)				0.05				0.01				(0.13)				(0.06)				(0.01)
Diluted			(0.04)				0.05				0.01				(0.13)				(0.06)				(0.01)
Non-GAAP net (loss) income attributable to ordinary shareholders per ADS (20 ordinary shares equal to 1 ADS) (1)
Basic			(0.84)				1.05				0.14				(2.66)				(1.26)				(0.17)
Diluted			(0.84)				0.99				0.14				(2.66)				(1.26)				(0.17)

(1)   Effective from March 18, 2024, the Company changed its ADS to Class A Ordinary Share ratio from one ADS representing four ordinary shares to one ADS representing twenty ordinary shares. The historical and present income (loss) per ADS have been adjusted retroactively for all periods presented to reflect this change.

 

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SOURCE Yatsen Holding Limited

FAQ

What were Yatsen's (YSG) Q4 2024 revenue and growth rate?

Yatsen's Q4 2024 total net revenues increased by 7.1% year-over-year to RMB1.15 billion (US$157.3 million).

Why did Yatsen (YSG) report a net loss in Q4 2024 despite revenue growth?

Yatsen reported a Q4 2024 net loss primarily due to a RMB403.1 million (US$55.2 million) goodwill impairment related to the Eve Lom reporting unit, which experienced weaker operating results than expected.

What is Yatsen's (YSG) revenue guidance for Q1 2025?

Yatsen expects Q1 2025 total net revenues between RMB788.8 million and RMB866.2 million, representing a year-over-year increase of approximately 2% to 12%.

How did Yatsen's (YSG) Skincare Brands perform in 2024?

Yatsen's Skincare Brands net revenues increased by 0.7% to RMB1.39 billion (US$190.9 million) for the full year 2024, representing 41.1% of total net revenues compared to 40.5% in 2023.

What was Yatsen's (YSG) gross margin in Q4 and full year 2024?

Yatsen's gross margin was 77.8% in Q4 2024 (up from 73.7% year-over-year) and 77.1% for full year 2024 (up from 73.6% year-over-year).

Did Yatsen (YSG) achieve profitability on a non-GAAP basis in Q4 2024?

Yes, Yatsen achieved non-GAAP net income of RMB107.0 million (US$14.7 million) with a 9.3% margin in Q4 2024, compared to a non-GAAP net loss in the prior year period.