YSG

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%.

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%.