Yatsen Holding Limited (YSG) Q2 2025 Earnings Call Transcript
Total Net Revenues Increased by 36.8% year-over-year to RMB 1.09 billion from RMB 794.5 million. This increase was primarily due to a 78.7% year-over-year increase in net revenues from skincare brands, combined with an 8.8% year-over-year increase in net revenues from color cosmetics brands.
Gross Profit Increased by 39.5% year-over-year to RMB 850.4 million from RMB 609.4 million. The increase was primarily driven by an increase in sales of higher gross margin products.
Gross Margin Increased to 78.3% from 76.7% for the prior year period. The increase was primarily driven by an increase in sales of higher gross margin products.
Total Operating Expenses Increased by 21.7% year-over-year to RMB 905.9 million from RMB 744.6 million. As a percentage of total net revenues, total operating expenses decreased to 83.4% from 93.7% for the prior year period.
Fulfillment Expenses Increased to RMB 63.3 million from RMB 51.2 million. As a percentage of total net revenues, fulfillment expenses decreased to 5.8% from 6.4% for the prior year period. The decrease was primarily due to further improvement in logistics efficiency.
Selling and Marketing Expenses Increased to RMB 722.4 million from RMB 544.7 million. As a percentage of total net revenues, selling and marketing expenses decreased to 66.5% from 68.6% for the prior year period. The decrease was primarily driven by deleveraging effect of higher total net revenues.
General and Administrative Expenses Decreased to RMB 84.1 million from RMB 119.1 million. As a percentage of total net revenues, general and administrative expenses decreased to 7.7% from 15%. The decrease was primarily driven by lower payroll expenses resulting from a reduction in general and administrative headcount, coupled with deleveraging effect of higher total net revenues.
Research and Development Expenses Increased to RMB 36.1 million from RMB 29.7 million. As a percentage of total net revenues, research and development expenses decreased to 3.3% from 3.7%. The decrease was primarily driven by deleveraging effect of higher total net revenues.
Loss from Operations Decreased to RMB 55.5 million from RMB 135.2 million. Operating loss margin decreased to 5.1% from 17% for the prior year period.
Non-GAAP Loss from Operations Decreased to RMB 20.4 million from RMB 111.9 million. Non-GAAP operating loss margin decreased to 1.9% from 14.1% for the prior year period.
Net Loss Decreased to RMB 19.5 million from RMB 85.5 million. Net loss margin decreased to 1.8% from 10.8% for the prior year period.
Non-GAAP Net Income Increased to RMB 11.5 million from a non-GAAP net loss of RMB 74.9 million. Non-GAAP net income margin increased to 1.1% from a non-GAAP net loss margin of 9.4% for the prior year period.
Cash, Restricted Cash, and Short-term Investments As of June 30, 2025, amounted to RMB 1.35 billion compared to RMB 1.36 billion as of December 31, 2024.
Net Cash Generated from Operating Activities Increased to RMB 77.7 million from net cash used in operating activities of RMB 148.2 million for the prior year period.
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Yatsen Holding Limited - Price Target for Depositary Receipt (YSG) Reduced by 18.18% to 9.18
Price Target Revision: The average one-year price target for Yatsen Holding Limited (NYSE:YSG) has been revised down to $9.18 per share, an 18.18% decrease from the previous estimate of $11.22, but still represents a 63.06% increase from the latest closing price of $5.63.
Fund Sentiment: There are currently 78 funds reporting positions in YSG, marking a 25.81% increase in ownership over the last quarter, with total shares owned by institutions rising by 14.00% to 15,263K shares.
Shareholder Activity: Notable changes in shareholder positions include Hillhouse Capital Advisors decreasing its holdings by 25.09%, while Bank of America and Goldman Sachs Group significantly increased their allocations by 10,406.11% and 81.75%, respectively.
Market Outlook: The put/call ratio for YSG stands at 0.35, indicating a bullish sentiment among investors, suggesting optimism about the stock's future performance.
Nasdaq Rises as New York Manufacturing Activity Soars in November
U.S. Stock Market Performance: U.S. stocks showed mixed results, with the Nasdaq Composite gaining over 50 points, while the Dow dipped slightly by 0.03%. The S&P 500 also saw a modest increase of 0.13%.
Sector Movements: Communication services stocks rose by 2.2%, while energy stocks fell by 0.8%. Notable stock movements included Sigma Lithium Corp surging 32% and Autonomix Medical, Inc. rising 50%.
Economic Indicators: The NY Empire State Manufacturing Index increased to 18.70 points in November, surpassing October's reading of 10.70 and market expectations of 6. Additionally, U.S. construction spending rose by 0.2% month-over-month in August.
Global Market Trends: European shares declined, with the eurozone's STOXX 600 falling 0.52%, and Asian markets mostly closed lower, highlighted by Japan's Nikkei 225 dropping 0.10%.
Yatsen Announces Third Quarter 2025 Financial Results
Financial Performance: Yatsen Holding Limited reported a 47.5% increase in total net revenues for Q3 2025, reaching RMB998.4 million (US$140.2 million), driven by an 83.2% rise in revenues from skincare brands.
Gross Margin Improvement: The company's gross margin improved to 78.2% from 75.9% year-over-year, while net loss narrowed by 41.9% to RMB70.4 million (US$9.9 million).
Operational Efficiency: Despite increased operating expenses, Yatsen managed to reduce its loss margin significantly, indicating improved operational efficiency and cost structure optimization.
Future Outlook: For Q4 2025, Yatsen anticipates total net revenues between RMB1.32 billion and RMB1.49 billion, reflecting a year-over-year growth of approximately 15% to 30%.
Yatsen Group Unveils Beauty Innovation Insight, Defining the Next Era of World-Class Beauty Science
Yatsen Group's New Report: Yatsen Group has launched the "Yatsen Group Beauty Innovation Insight," marking China's first comprehensive report on beauty innovation, focusing on beauty science, sustainability, and corporate responsibility.
Industry Evolution: The report signifies a shift in China's beauty industry from brand storytelling to a focus on scientific leadership, showcasing Yatsen's increasing impact in the global R&D community.
Yatsen to Announce Third Quarter 2025 Financial Results on November 17, 2025
Financial Results Announcement: Yatsen Holding Limited will release its unaudited financial results for Q3 2025 on November 17, 2025, before U.S. market opening.
Conference Call Details: A conference call to discuss the financial results will take place on the same day at 7:30 A.M. EST, with access numbers provided for various regions.
Company Overview: Yatsen Holding Limited is a prominent beauty group in China, known for brands like Perfect Diary and DR.WU, focusing on both online and offline customer engagement.
Investor Relations: Additional information and a replay of the conference call will be available on the company's investor relations website.
Daily Upgrade Report for the Validea Kenneth Fisher Strategy - October 4, 2025
Validea's Upgrade on Yatsen Holding: Yatsen Holding Ltd (YSG) received an upgrade in its rating from 48% to 60% based on Kenneth Fisher's Price/Sales Investor model, which favors stocks with low P/S ratios and strong fundamentals.
Company Overview: Yatsen Holding Ltd is a Chinese company specializing in cosmetics and skincare, operating three brands—Perfect Diary, Little Ondine, and Abbys Choice—primarily through online sales channels.
Yatsen Holding Limited - Price Target for Depositary Receipt (YSG) Reduced by 18.18% to 9.18
Price Target Revision: The average one-year price target for Yatsen Holding Limited (NYSE:YSG) has been revised down to $9.18 per share, an 18.18% decrease from the previous estimate of $11.22, but still represents a 63.06% increase from the latest closing price of $5.63.
Fund Sentiment: There are currently 78 funds reporting positions in YSG, marking a 25.81% increase in ownership over the last quarter, with total shares owned by institutions rising by 14.00% to 15,263K shares.
Shareholder Activity: Notable changes in shareholder positions include Hillhouse Capital Advisors decreasing its holdings by 25.09%, while Bank of America and Goldman Sachs Group significantly increased their allocations by 10,406.11% and 81.75%, respectively.
Market Outlook: The put/call ratio for YSG stands at 0.35, indicating a bullish sentiment among investors, suggesting optimism about the stock's future performance.
Nasdaq Rises as New York Manufacturing Activity Soars in November
U.S. Stock Market Performance: U.S. stocks showed mixed results, with the Nasdaq Composite gaining over 50 points, while the Dow dipped slightly by 0.03%. The S&P 500 also saw a modest increase of 0.13%.
Sector Movements: Communication services stocks rose by 2.2%, while energy stocks fell by 0.8%. Notable stock movements included Sigma Lithium Corp surging 32% and Autonomix Medical, Inc. rising 50%.
Economic Indicators: The NY Empire State Manufacturing Index increased to 18.70 points in November, surpassing October's reading of 10.70 and market expectations of 6. Additionally, U.S. construction spending rose by 0.2% month-over-month in August.
Global Market Trends: European shares declined, with the eurozone's STOXX 600 falling 0.52%, and Asian markets mostly closed lower, highlighted by Japan's Nikkei 225 dropping 0.10%.
Yatsen Announces Third Quarter 2025 Financial Results
Financial Performance: Yatsen Holding Limited reported a 47.5% increase in total net revenues for Q3 2025, reaching RMB998.4 million (US$140.2 million), driven by an 83.2% rise in revenues from skincare brands.
Gross Margin Improvement: The company's gross margin improved to 78.2% from 75.9% year-over-year, while net loss narrowed by 41.9% to RMB70.4 million (US$9.9 million).
Operational Efficiency: Despite increased operating expenses, Yatsen managed to reduce its loss margin significantly, indicating improved operational efficiency and cost structure optimization.
Future Outlook: For Q4 2025, Yatsen anticipates total net revenues between RMB1.32 billion and RMB1.49 billion, reflecting a year-over-year growth of approximately 15% to 30%.
Yatsen Group Unveils Beauty Innovation Insight, Defining the Next Era of World-Class Beauty Science
Yatsen Group's New Report: Yatsen Group has launched the "Yatsen Group Beauty Innovation Insight," marking China's first comprehensive report on beauty innovation, focusing on beauty science, sustainability, and corporate responsibility.
Industry Evolution: The report signifies a shift in China's beauty industry from brand storytelling to a focus on scientific leadership, showcasing Yatsen's increasing impact in the global R&D community.
Yatsen to Announce Third Quarter 2025 Financial Results on November 17, 2025
Financial Results Announcement: Yatsen Holding Limited will release its unaudited financial results for Q3 2025 on November 17, 2025, before U.S. market opening.
Conference Call Details: A conference call to discuss the financial results will take place on the same day at 7:30 A.M. EST, with access numbers provided for various regions.
Company Overview: Yatsen Holding Limited is a prominent beauty group in China, known for brands like Perfect Diary and DR.WU, focusing on both online and offline customer engagement.
Investor Relations: Additional information and a replay of the conference call will be available on the company's investor relations website.
Daily Upgrade Report for the Validea Kenneth Fisher Strategy - October 4, 2025
Validea's Upgrade on Yatsen Holding: Yatsen Holding Ltd (YSG) received an upgrade in its rating from 48% to 60% based on Kenneth Fisher's Price/Sales Investor model, which favors stocks with low P/S ratios and strong fundamentals.
Company Overview: Yatsen Holding Ltd is a Chinese company specializing in cosmetics and skincare, operating three brands—Perfect Diary, Little Ondine, and Abbys Choice—primarily through online sales channels.
