Yatsen Regains Compliance with NYSE Minimum Price Continued Listing Criterion

Rhea-AI Summary

Yatsen Holding (NYSE: YSG) has regained compliance with the NYSE's minimum share price criteria, as per the letter received from the NYSE. The Company was previously below compliance standards but has now rectified the issue.

Insights

Market Analyst

Yatsen Holding's recent compliance with the NYSE's minimum share price requirement signals a positive shift in investor perception and company valuation. Often, a stock price below $1 is seen as a red flag, indicating potential financial instability or operational challenges. The company's recovery in share price could reflect underlying improvements in business performance or successful strategic initiatives. It's essential to consider the broader market context, including consumer spending trends in the beauty sector and competitive dynamics within China's beauty industry.

Investors should monitor Yatsen's financial performance in subsequent quarters to determine if the share price recovery is sustainable. Factors such as revenue growth, profitability and market share gains will be critical indicators of long-term viability. Additionally, the company's ability to maintain compliance with other NYSE listing requirements, such as market capitalization and shareholders' equity, should not be overlooked.

Financial Analyst

Regaining compliance with the NYSE's listing criteria is a important financial milestone for Yatsen Holding. It may prevent potential delisting, which could have led to reduced liquidity and investor confidence. For shareholders, the stabilization of the stock price above the $1 threshold could ease concerns over the immediate risk of delisting and provide a more favorable environment for holding or trading the company's shares.

However, the compliance news does not necessarily reflect a change in the fundamental value of the company. Investors should scrutinize upcoming earnings reports and assess whether the stock price reflects the company's intrinsic value. Additionally, the impact of macroeconomic factors, such as currency fluctuations and international trade policies, on Yatsen's business should be considered, given the global nature of the beauty industry.

Compliance Specialist

The notification from the NYSE regarding Yatsen Holding's regained compliance is a testament to the company's efforts to meet regulatory standards. It is important to note that the NYSE's continued listing criteria serve as a benchmark for the minimum expectations of a company's financial and operational health. While compliance alleviates immediate regulatory concerns, it does not guarantee future performance.

Compliance with the NYSE's minimum share price criterion is just one aspect of a company's overall regulatory obligations. Yatsen must continue to meet other listing standards and regulatory requirements to maintain its listing status. This includes timely and accurate financial reporting, adherence to corporate governance standards and effective internal controls. Prospective and current investors should be aware of the company's commitment to these areas as they can significantly influence investor confidence and the company's reputation in the market.

GUANGZHOU, China, April 11, 2024 /PRNewswire/ -- Yatsen Holding Limited ("Yatsen" or the "Company") (NYSE: YSG), a leading China-based beauty group, today announced that it has received a letter from the New York Stock Exchange ("NYSE") dated April 10, 2024 (the "April Letter"), notifying the Company that it has regained compliance with the NYSE's continued listing criterion of a minimum share price as set forth in Section 802.01C of the NYSE Listed Company Manual (the "NYSE Minimum Price Continued Listing Criterion").

As previously announced, the Company received a letter from the NYSE dated November 2, 2023, notifying the Company that it was below compliance standards due to the average closing price of the Company's American depositary shares being less than $1.00 for a consecutive 30 trading-day period. Following the receipt of the April Letter, the Company is no longer considered below the NYSE Minimum Price Continued Listing Criterion and has regained compliance regarding this matter.

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, which include 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.

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, Abby's Choice, Galénic, DR.WU (its mainland China business), Eve Lom, Pink Bear 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/.

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

View original content:https://www.prnewswire.com/news-releases/yatsen-regains-compliance-with-nyse-minimum-price-continued-listing-criterion-302114141.html

SOURCE Yatsen Holding Limited

FAQ

What is the latest update from Yatsen Holding (NYSE: YSG) regarding compliance with NYSE's listing criteria?

Yatsen Holding has received a letter from the NYSE stating that it has regained compliance with the NYSE's minimum share price requirement.

Why was Yatsen Holding (NYSE: YSG) previously below compliance standards according to the NYSE?

Yatsen Holding was below compliance standards due to the average closing price of its American depositary shares being less than $1.00 for a consecutive 30 trading-day period.

What is the significance of Yatsen Holding (NYSE: YSG) regaining compliance with NYSE's listing criteria?

Regaining compliance with NYSE's listing criteria is crucial for Yatsen Holding as it ensures the Company's continued listing on the NYSE.