Yatsen Announces Second Quarter 2026 Financial Results

Conference Call to Be Held at 7:30 A.M. U.S. Eastern Time on September 2, 2026

GUANGZHOU, China, Sept. 2, 2026 /PRNewswire/ -- Yatsen Holding Limited ("Yatsen" or the "Company") (NYSE: YSG), a leading China-based beauty group, today announced its unaudited financial results for the quarter ended June 30, 2026.

Second Quarter 2026 Highlights

Mr. Jinfeng Huang, Founder, Chairman and Chief Executive Officer of Yatsen, stated, "China's beauty market demonstrated broad resilience in the second quarter, with market growth showing slight improvement but remaining challenged as competition across the industry intensified. Against this backdrop, our business continued to navigate a critical phase of strategic transformation. As we further optimized our brand portfolio and distribution channels, our skincare portfolio maintained its strong growth momentum — now representing over 70% of total revenues — led by the robust performance of our clinical and premium skincare brands, including Galénic, DR.WU and Eve Lom. In contrast, our color cosmetics segment faced structural headwinds amid heightened competition. As a result, we are taking decisive actions to streamline our color cosmetics portfolio and refocus resources on our high-growth skincare brands. Looking ahead, we aim to further optimize our product portfolio and channel execution, while maintaining investments in R&D to strengthen our innovation pipeline for sustainable long-term growth."

Mr. Donghao Yang, Director and Chief Financial Officer of Yatsen, commented, "We delivered modest top-line growth in the second quarter of 2026, with net revenues increasing 5.1% year over year. This performance was primarily driven by a 40.4% year-over-year growth in our skincare segment, which more than offset revenue pressure in our color cosmetics business. Looking ahead, amid dynamic market conditions, we remain committed to maintaining operational discipline, with a continued focus on improving marketing spend efficiency and progressively optimizing our operating cost structure."

Second Quarter 2026 Financial Results

Net Revenues

Total net revenues for the second quarter of 2026 increased by 5.1% to RMB1.14 billion (US$168.3 million) from RMB1.09 billion for the prior year period. The increase was primarily driven by a 40.4% year-over-year increase in net revenues from Skincare Brands, which more than offset a 35.8% year-over-year decrease in net revenues from Color Cosmetics Brands. [3]

Gross Profit and Gross Margin

Gross profit for the second quarter of 2026 decreased by 0.8% to RMB843.8 million (US$124.4 million) from RMB850.4 million for the prior year period. Gross margin for the second quarter of 2026 decreased to 73.9% from 78.3% for the prior year period, primarily due to higher inventory provisions in the color cosmetics business associated with the Company's proactive brand portfolio optimization and SKU rationalization.

Operating Expenses

Total operating expenses for the second quarter of 2026 increased by 7.7% to RMB975.7 million (US$143.8 million) from RMB905.9 million for the prior year period. As a percentage of total net revenues, total operating expenses for the second quarter of 2026 were 85.4%, as compared with 83.4% for the prior year period.

Loss / Income from Operations

Loss from operations for the second quarter of 2026 was RMB131.9 million (US$19.4 million), as compared with RMB55.5 million for the prior year period. Operating loss margin was 11.5%, as compared with 5.1% for the prior year period.

Non-GAAP loss from operations [4] for the second quarter of 2026 was RMB112.1 million (US$16.5 million), as compared with RMB20.4 million for the prior year period. Non-GAAP operating loss margin [5] was 9.8%, as compared with 1.9% for the prior year period.

Net Loss / Income

Net loss for the second quarter of 2026 was RMB90.8 million (US$13.4 million), as compared with RMB19.5 million for the prior year period. Net loss margin was 8.0%, as compared with 1.8% for the prior year period. Net loss attributable to Yatsen's ordinary shareholders per diluted ADS [6] for the second quarter of 2026 was RMB0.97 (US$0.14), as compared with RMB0.19 for the prior year period.

Non-GAAP net loss for the second quarter of 2026 was RMB99.4 million (US$14.7 million), as compared with non-GAAP net income of RMB11.5 million for the prior year period. Non-GAAP net loss margin was 8.7%, as compared with non-GAAP net income margin of 1.1% for the prior year period. Non-GAAP net loss attributable to Yatsen's ordinary shareholders per diluted ADS [7] for the second quarter of 2026 was RMB1.06 (US$0.16), as compared with non-GAAP net income attributable to Yatsen's ordinary shareholders per diluted ADS of RMB0.13 for the prior year period.

Balance Sheet and Cash Flow

As of June 30, 2026, the Company had cash, restricted cash and short-term investments of RMB1.06 billion (US$155.6 million), as compared with RMB1.05 billion as of December 31, 2025.

Net cash used in operating activities for the second quarter of 2026 was RMB78.0 million (US$11.5 million), as compared with net cash generated from operating activities of RMB77.7 million for the prior year period.

Appointment of Co-Chief Financial Officer

The Company is pleased to announce the appointment of Ms. Li Wang as Co-Chief Financial Officer, effective September 2, 2026. Ms. Wang brings over 15 years of experience in the consumer industry, having previously served as Chief Financial Officer at Proya Cosmetics Co., Ltd. and holding multiple professional accounting qualifications, including CMA, HKICPA and FIPA.

Ms. Wang will partner with Mr. Donghao Yang, the Company's Director and Chief Financial Officer, to ensure a seamless transition and provide continuity in the Company's financial leadership, and she is expected to succeed Mr. Yang as Chief Financial Officer after the release of the 2026 annual report on Form 20-F. The appointment reflects the Company's commitment to building a world-class leadership team and will further support the Company's ongoing strategic transformation and its focus on sustainable, profitable growth.

Business Outlook

For the third quarter of 2026, the Company expects its total net revenues to be between RMB898.6 million and RMB998.4 million, representing a year-over-year decrease of approximately 0% to 10%. 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 RMB6.7851 to US$1.00, the exchange rate in effect as of June 30, 2026, as set forth in the H.10 statistical release of The Board of Governors of the Federal Reserve System. The Company makes no representation that any RMB or US$ 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, (v) impairment of investments and (vi) tax effects on non-GAAP adjustments.

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

[4] 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.

[5] 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.

[6] ADS refers to American depositary shares, each of which represents twenty Class A ordinary shares.

[7] 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) impairment of investments, (vi) tax effects on non-GAAP adjustments and (vii) accretion to redeemable non-controlling interests.

Conference Call Information

The Company's management will hold a conference call on Wednesday, September 2, 2026, at 7:30 A.M. U.S. Eastern Time or 7:30 P.M. Beijing Time to discuss its financial results and operating performance for the second quarter of 2026.

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

The replay will be accessible through Wednesday, September 9, 2026 by dialing the following numbers:

United States:

+1-855-669-9658

International:

+1-412-317-0088

Replay Access Code:

3486688

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 vision of becoming a world-class pioneer in beauty innovation. 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), and Eve Lom. Our brands are strategically positioned to capture a wide spectrum of consumer demographics and price points, ranging from the mass market to the prestige and clinical segments. Yatsen thrives on the synergy of brand equity, product strength and operational agility, anchored by a strong commitment to R&D and consumer insights.

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, (v) impairment of investments and (vi) 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) impairment of investments, (vi) tax effects on non-GAAP adjustments and (vii) 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 measures 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:

Yatsen Holding Limited

Investor Relations

E-mail: [email protected]

YATSEN HOLDING LIMITED

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(All amounts in thousands, except for share, per share data or otherwise noted)

December 31,

June 30,

2025

2026

RMB'000

USD'000

Assets

Current assets

Cash and cash equivalents

765,379

710,286

104,683

Restricted cash

42,117

4,667

688

Short-term investments

246,008

340,545

50,190

Accounts receivable, net

220,870

216,722

31,941

Inventories, net

508,730

554,572

81,734

Prepayments and other current assets

450,970

411,660

60,671

Amounts due from related parties

114

Total current assets

2,234,188

2,238,520

329,917

Non-current assets

Investments

653,560

765,582

112,833

Property and equipment, net

77,014

66,072

9,738

Goodwill, net

155,029

22,848

Intangible assets, net

537,509

491,158

72,388

Deferred tax assets

1,435

686

101

Right-of-use assets, net

173,915

181,682

26,777

Other non-current assets

14,332

25,940

3,823

Total non-current assets

1,612,794

1,686,149

248,508

Total assets

3,846,982

3,924,669

578,425

Liabilities, redeemable non-controlling interests and shareholders'

equity

Current liabilities

Accounts and notes payable

149,371

174,451

25,711

Advances from customers

28,821

32,070

4,727

Accrued expenses and other liabilities

348,700

304,369

44,858

Amounts due to related parties

21,262

19,577

2,885

Income tax payables

13,690

13,779

2,031

Lease liabilities due within one year

53,435

61,256

9,028

Total current liabilities

615,279

605,502

89,240

Non-current liabilities

Convertible notes

408,654

60,228

Deferred tax liabilities

107,906

112,343

16,557

Lease liabilities

123,157

127,790

18,834

Total non-current liabilities

231,063

648,787

95,619

Total liabilities

846,342

1,254,289

184,859

Redeemable non-controlling interests

1,337

197

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,

2025 and June 30, 2026; 2,096,600,883 Class A shares and

600,572,880 Class B ordinary shares issued as of December 31,

2025 and June 30, 2026; 1,276,663,163 Class A ordinary shares

and 600,572,880 Class B ordinary shares outstanding as of

December 31, 2025, 1,275,438,103 Class A ordinary shares and

600,572,880 Class B ordinary shares outstanding as of June 30,

2026)

173

Treasury shares

(1,250,678)

(1,275,611)

(188,002)

Additional paid-in capital

12,296,367

12,178,055

1,794,823

Statutory reserve

31,527

4,647

Accumulated deficit

(8,141,545)

(8,292,887)

(1,222,220)

Accumulated other comprehensive income

74,760

27,786

4,096

Total Yatsen Holding Limited shareholders' equity

3,010,604

2,669,043

393,369

Non-controlling interests

(11,301)

Total shareholders' equity

2,999,303

2,669,043

393,369

Total liabilities, redeemable non-controlling interests and

shareholders' equity

3,846,982

3,924,669

578,425

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 June 30,

For the Six Months Ended June 30,

2025

2026

2025

2026

RMB'000

USD'000

RMB'000

USD'000

Total net revenues

1,086,732

1,142,180

168,337

1,920,265

2,163,166

318,811

Total cost of revenues

(236,335)

(298,361)

(43,973)

(410,741)

(500,158)

(73,714)

Gross profit

850,397

843,819

124,364

1,509,524

1,663,008

245,097

Operating expenses:

Fulfilment expenses

(63,288)

(56,089)

(8,266)

(115,131)

(117,227)

(17,277)

Selling and marketing expenses

(722,405)

(807,559)

(119,019)

(1,276,220)

(1,544,795)

(227,675)

General and administrative expenses

(84,072)

(74,815)

(11,026)

(148,955)

(155,141)

(22,865)

Research and development expenses

(36,116)

(37,250)

(5,490)

(58,753)

(76,690)

(11,303)

Total operating expenses

(905,881)

(975,713)

(143,801)

(1,599,059)

(1,893,853)

(279,120)

Loss from operations

(55,484)

(131,894)

(19,437)

(89,535)

(230,845)

(34,023)

Financial income

11,467

3,883

572

22,073

14,624

2,155

Interest expenses

(743)

(110)

(743)

(110)

Foreign currency exchange gain (loss)

5,507

402

16,171

(2,796)

(412)

Income from equity method investments, net

877

38,204

5,631

3,382

50,593

7,456

Other income, net

17,395

7,158

1,055

21,637

25,624

3,777

Loss before income tax expenses

(20,238)

(82,990)

(12,230)

(26,272)

(143,543)

(21,157)

Income tax benefits (expenses)

763

(7,838)

(1,155)

1,196

(9,213)

(1,358)

Net loss

(19,475)

(90,828)

(13,385)

(25,076)

(152,756)

(22,515)

Net loss attributable to non-controlling interests and redeemable non-

controlling interests

1,807

2,105

1,414

208

Net loss attributable to Yatsen's shareholders

(17,668)

(90,828)

(13,385)

(22,971)

(151,342)

(22,307)

Shares used in calculating loss per share (1):

Weighted average number of Class A and Class B ordinary shares:

Basic

1,854,988,850

1,874,649,633

1,846,275,864

1,875,769,426

Diluted

1,854,988,850

1,874,649,633

1,846,275,864

1,875,769,426

Net loss per Class A and Class B ordinary share

Basic

(0.01)

(0.05)

(0.01)

(0.08)

(0.01)

Diluted

(0.01)

(0.05)

(0.01)

(0.08)

(0.01)

Net loss per ADS (20 ordinary shares equal to 1 ADS)

Basic

(0.19)

(0.97)

(0.14)

(0.25)

(1.61)

(0.24)

Diluted

(0.19)

(0.97)

(0.14)

(0.25)

(1.61)

(0.24)

For the Three Months Ended June 30,

For the Six Months Ended June 30,

2025

2026

2025

2026

Share-based compensation expenses are included in the

operating expenses as follows:

RMB'000

USD'000

RMB'000

USD'000

Fulfilment expenses (income)

(46)

(7)

191

203

Selling and marketing expenses

1,795

2,396

353

2,552

2,544

375

General and administrative expenses

20,638

6,132

904

28,369

8,135

1,199

Research and development expenses

1,429

737

109

1,469

1,896

279

Total

23,955

9,219

1,359

32,581

12,778

1,883

(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.

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 June 30,

For the Six Months Ended June 30,

2025

2026

2025

2026

RMB'000

USD'000

RMB'000

USD'000

Loss from operations

(55,484)

(131,894)

(19,437)

(89,535)

(230,845)

(34,023)

Share-based compensation expenses

23,955

9,219

1,359

32,581

12,778

1,883

Amortization of intangible assets resulting from assets and business

acquisitions

11,147

10,624

1,566

21,708

21,383

3,151

Non-GAAP loss from operations

(20,382)

(112,051)

(16,512)

(35,246)

(196,684)

(28,989)

Net loss

(19,475)

(90,828)

(13,385)

(25,076)

(152,756)

(22,515)

Share-based compensation expenses

23,955

9,219

1,359

32,581

12,778

1,883

Amortization of intangible assets resulting from assets and business

acquisitions

11,147

10,624

1,566

21,708

21,383

3,151

Revaluation of investments on the share of equity method

investments

(3,141)

(35,578)

(5,244)

(9,151)

(46,047)

(6,786)

Tax effects on non-GAAP adjustments

(991)

7,122

1,050

(1,424)

7,951

1,172

Non-GAAP net income (loss)

11,495

(99,441)

(14,654)

18,638

(156,691)

(23,095)

Net loss attributable to Yatsen's shareholders

(17,668)

(90,828)

(13,385)

(22,971)

(151,342)

(22,307)

Share-based compensation expenses

23,955

9,219

1,359

32,581

12,778

1,883

Amortization of intangible assets resulting from assets and business

acquisitions

10,743

10,624

1,566

20,922

21,097

3,109

Revaluation of investments on the share of equity method

investments

(3,141)

(35,578)

(5,244)

(9,151)

(46,047)

(6,786)

Tax effects on non-GAAP adjustments

(963)

7,122

1,050

(1,368)

7,951

1,172

Non-GAAP net income (loss) attributable to Yatsen's

shareholders

12,926

(99,441)

(14,654)

20,013

(155,563)

(22,929)

Shares used in calculating loss per share:

Weighted average number of Class A and Class B ordinary shares:

Basic

1,854,988,850

1,874,649,633

1,846,275,864

1,875,769,426

Diluted

1,998,882,473

1,874,649,633

1,980,640,851

1,875,769,426

Non-GAAP net income (loss) attributable to ordinary

shareholders per Class A and Class B ordinary share

Basic

0.01

(0.05)

(0.01)

0.01

(0.08)

(0.01)

Diluted

0.01

(0.05)

(0.01)

0.01

(0.08)

(0.01)

Non-GAAP net income (loss) attributable to ordinary

shareholders per ADS (20 ordinary shares equal to 1 ADS)

Basic

0.14

(1.06)

(0.16)

0.22

(1.66)

(0.24)

Diluted

0.13

(1.06)

(0.16)

0.20

(1.66)

(0.24)

SOURCE Yatsen Holding Limited