Lazada

Yatsen Announces Fourth Quarter and Full Year 2023 Financial Results

Conference Call to Be Held at 7:30 A.M. U.S. Eastern Time on March 6, 2024

GUANGZHOU, China, March 6, 2024 /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, 2023.

Fourth Quarter and Full Year 2023 Highlights

  • Total net revenues for the fourth quarter of 2023 increased by 6.7% to RMB1.07 billion (US$151.1 million) from RMB1.01 billion for the prior year period. Total net revenues for the full year of 2023 decreased by 7.9% to RMB3.41 billion (US$481.0 million) from RMB3.71 billion for the prior year period.
  • Total net revenues from Skincare Brands[1] for the fourth quarter of 2023 increased by 17.6% to RMB554.8 million (US$78.1 million) from RMB471.6 million for the prior year period. As a percentage of total net revenues, total net revenues from Skincare Brands for the fourth quarter of 2023 increased to 51.7% from 46.9% for the prior year period. Total net revenues from Skincare Brands for the full year of 2023 increased by 11.4% to RMB1.38 billion (US$194.9 million) from RMB1.24 billion for the prior year period. As a percentage of total net revenues, total net revenues from Skincare Brands for the full year of 2023 increased to 40.5% from 33.5% for the prior year period.
  • Gross margin for the fourth quarter of 2023 was 73.7%, as compared with 71.1% for the prior year period. Gross margin for the full year of 2023 was 73.6%, as compared with 68.0% for the prior year period.
  • Net loss for the fourth quarter of 2023 was RMB494.5 million (US$69.7 million), as compared with RMB55.0 million for the prior year periodNet loss for the full year of 2023 decreased by 8.7% to RMB750.2 million (US$105.7 million) from RMB821.3 million for the prior year period. Non-GAAP net loss[2] for the fourth quarter of 2023 was RMB93.7 million (US$13.2 million), as compared with non-GAAP net income of RMB34.7 million for the prior year period. Non-GAAP net loss for the full year of 2023 decreased by 34.6% to RMB296.1 million (US$41.7 million) from RMB452.9 million for the prior year period.

Mr. Jinfeng Huang, Founder, Chairman and Chief Executive Officer of Yatsen, stated, “We were pleased to return to a growth trajectory in the fourth quarter of 2023 as we made further progress on our strategic transformation plan. Driven by solid performances from Galénic, DR.WU and Eve Lom, revenues from our Skincare Brands increased by 17.6% and 11.4% year over year for the fourth quarter and the full year of 2023, respectively. Perfect Diary‘s brand repositioning also continued to gain traction. Propelled by the success of the brand’s new hero product, Biolip Essence Lipstick, Perfect Diary rose to second place in the lipstick category in terms of retail sales value on Tmall and Douyin combined for December 2023. Looking ahead, we will remain focused on pursuing sustainable growth with ongoing innovation across our brands.”

Mr. Donghao Yang, Director and Chief Financial Officer of Yatsen, commented, “We recorded a year-over-year increase of 6.7% in total net revenues for the fourth quarter of 2023, returning to growth and beating our previous guidance. Notably, our three major skincare brands recorded a 23.4% year-over-year growth for the fourth quarter and a 22.1% year-over-year growth for the full year of 2023 in combined net revenues. Furthermore, our gross margin improved to 73.7% for the fourth quarter from 71.1% for the prior year period and to 73.6% for the full year from 68.0% a year ago. During the fourth quarter, we recorded a goodwill impairment of RMB354.0 million. Our net loss margin was 22.0% in 2023, as compared with 22.2% in 2022. Our non-GAAP net loss margin narrowed to 8.7% in 2023 from 12.2% a year ago. With cash, restricted cash and short-term investments of RMB2.08 billion, we are confident in our ability to advance our strategic plan going forward.”

Fourth Quarter 2023 Financial Results

Net Revenues

Total net revenues for the fourth quarter of 2023 increased by 6.7% to RMB1.07 billion (US$151.1 million) from RMB1.01 billion for the prior year period. The increase was primarily attributable to a 17.6% year-over-year increase in net revenues from Skincare Brands, partially offset by a 1.8% year-over-year decrease in net revenues from Color Cosmetics Brands.[3]

Gross Profit and Gross Margin

Gross profit for the fourth quarter of 2023 increased by 10.6% to RMB790.1 million (US$111.3 million) from RMB714.6 million for the prior year period. Gross margin for the fourth quarter of 2023 increased to 73.7% from 71.1% for the prior year period. The increase was driven by increasing sales of higher-gross margin products and more disciplined pricing and discount policies across all of the Company’s brand portfolio.

Operating Expenses 

Total operating expenses for the fourth quarter of 2023 increased by 67.7% to RMB1.33 billion (US$187.3 million) from RMB792.9 million for the prior year period. As a percentage of total net revenues, total operating expenses for the fourth quarter of 2023 were 124.0%, as compared with 78.9% for the prior year period.

  • Fulfillment Expenses. Fulfillment expenses for the fourth quarter of 2023 were RMB62.7 million (US$8.8 million), as compared with RMB62.5 million for the prior year period. As a percentage of total net revenues, fulfillment expenses for the fourth quarter of 2023 decreased to 5.8% from 6.2% for the prior year period. The decrease was primarily attributable to further improvements in logistics efficiency.
  • Selling and Marketing Expenses. Selling and marketing expenses for the fourth quarter of 2023 were RMB717.4 million (US$101.0 million), as compared with RMB535.2 million for the prior year period. As a percentage of total net revenues, selling and marketing expenses for the fourth quarter of 2023 increased to 66.9% from 53.2% for the prior year period. The increase was primarily due to the Perfect Diary brand upgrade as well as the Company’s investments in new product launches across its brands.
  • General and Administrative Expenses. General and administrative expenses for the fourth quarter of 2023 were RMB158.7 million (US$22.4 million), as compared with RMB169.9 million for the prior year period. As a percentage of total net revenues, general and administrative expenses for the fourth quarter of 2023 decreased to 14.8% from 16.9% for the prior year period. The decrease was primarily attributable to a reduction in share-based compensation.
  • Research and Development Expenses. Research and development expenses for the fourth quarter of 2023 were RMB36.9 million (US$5.2 million), as compared with RMB25.1 million for the prior year period. As a percentage of total net revenues, research and development expenses for the fourth quarter of 2023 increased to 3.4% from 2.5% for the prior year period. The increase was primarily attributable to an increase in personnel costs, reflecting the Company’s commitment to enhancing its research and development capabilities.
  • Impairment of Goodwill. Impairment of goodwill for the fourth quarter of 2023 was RMB354.0 million (US$49.9 million), as compared with nil in the prior year period. Impairment recorded in this quarter represents the amount by which the carrying value of the Eve Lom reporting unit exceeded its fair value, based on quantitative goodwill impairment test, primarily due to weaker operating results than expected at the time of acquisition.   

Loss from Operations

Loss from operations for the fourth quarter of 2023 was RMB539.6 million (US$76.0 million), as compared with RMB78.2 million for the prior year period. Operating loss margin was 50.3%, as compared with 7.8% for the prior year period.

Non-GAAP loss from operations[4] for the fourth quarter of 2023 was RMB125.9 million (US$17.7 million), as compared with non-GAAP income from operations of RMB11.5 million for the prior year period. Non-GAAP operating loss margin was 11.7%, as compared with non-GAAP operating income margin of 1.1% for the prior year period.

Net Loss 

Net loss for the fourth quarter of 2023 was RMB494.5 million (US$69.7 million), as compared with RMB55.0 million for the prior year period. Net loss margin was 46.1%, as compared with 5.5% for the prior year period. Net loss attributable to Yatsen’s ordinary shareholders per diluted ADS[5] for the fourth quarter of 2023 was RMB0.91 (US$0.13), as compared with RMB0.09 for the prior year period.

Non-GAAP net loss for the fourth quarter of 2023 was RMB93.7 million (US$13.2 million), as compared with non-GAAP net income of RMB34.7 million for the prior year period. Non-GAAP net loss margin was 8.7%, as compared with non-GAAP net income margin of 3.4% for the prior year period. Non-GAAP net loss attributable to Yatsen’s ordinary shareholders per diluted ADS[6] for the fourth quarter of 2023 was RMB0.17 (US$0.02), as compared with non-GAAP net income attributable to Yatsen’s ordinary shareholders per diluted ADS of RMB0.06 for the prior year period.

Full Year 2023 Financial Results

Total net revenues for the full year of 2023 decreased by 7.9% to RMB3.41 billion (US$481.0 million) from RMB3.71 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 2023 decreased by 0.2% to RMB2.51 billion (US$354.0 million) from RMB2.52 billion for the prior year period. Gross margin for the full year of 2023 was 73.6%, as compared with 68.0% for the prior year period. The increase was primarily attributable to (i) increasing sales of higher-gross margin products from Skincare Brands, (ii) more disciplined pricing and discount policies, and (iii) cost optimization across all of the Company’s brand portfolio.

Loss from operations for the full year of 2023 was RMB913.4 million (US$128.6 million), as compared with RMB928.9 million for the prior year period.

Non-GAAP loss from operations for the full year of 2023 was RMB427.5 million (US$60.2 million), as compared with RMB539.3 million for the prior year period.

Net loss for the full year of 2023 was RMB750.2 million (US$105.7 million), as compared with RMB821.3 million for the prior year period. Net loss attributable to Yatsen’s ordinary shareholders per diluted ADS for the full year of 2023 was RMB1.36 (US$0.19), as compared with RMB1.37 for the prior year period.

Non-GAAP net loss for the full year of 2023 was RMB296.1 million (US$41.7 million), as compared with RMB452.9 million for the prior year period. Non-GAAP net loss attributable to Yatsen’s ordinary shareholders per diluted ADS for the full year of 2023 was RMB0.53 (US$0.07), as compared with RMB0.76 for the prior year period.

Balance Sheet and Cash Flow

As of December 31, 2023, the Company had cash, restricted cash and short-term investments of RMB2.08 billion (US$292.5 million), as compared with RMB2.63 billion as of December 31, 2022.

Net cash generated from operating activities for the fourth quarter of 2023 was RMB90.5 million (US$12.8 million), as compared with net cash generated from operating activities of RMB106.6 million for the prior year period. Net cash used in operating activities for the full year of 2023 was RMB107.4 million (US$15.1 million), as compared with net cash generated from operating activities of RMB136.2 million for the prior year period.

Business Outlook

For the first quarter of 2024, the Company expects its total net revenues to be between RMB765.4 million and RMB803.7 million, representing a year-over-year increase of approximately 0% to 5%. 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 RMB7.0999 to US$1.00, the exchange rate in effect as of December 29, 2023, as set forth in the H.10 statistical release of The Board of Governors of the Federal Reserve System. The Company makes no representation that any RMB or US$ 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, Abby’s Choice and other skincare brands of the Company.

[2] Non-GAAP net income (loss) is a non-GAAP financial measure. Effective from the fourth quarter of 2023, non-GAAP net income (loss) is defined as net 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) for the prior year period presented in this document is also calculated in the same manner.

[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. Effective from the fourth quarter of 2023, 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. Non-GAAP income (loss) from operations for the prior year period presented in this document is also calculated in the same manner.

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

[6] 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. Effective from the fourth quarter of 2023, 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. Non-GAAP net income (loss) attributable to ordinary shareholders per diluted ADS for the prior year period presented in this document is also calculated in the same manner.

Conference Call Information

The Company’s management will hold a conference call on Wednesday, March 6, 2024, 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 2023.

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:

8685896

The replay will be accessible through March 13, 2024, by dialing the following numbers:

United States:                     

+1-877-344-7529

International:

+1-412-317-0088

Replay Access Code:

8685896

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, 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/.

Use of Non-GAAP Financial Measures

The Company uses non-GAAP income (loss) from operations, non-GAAP net income (loss), 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. 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. 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, 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.

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,

2022

2023

2023

RMB’000

RMB’000

USD’000

Assets

Current assets

Cash and cash equivalents

1,512,945

836,888

117,873

Restricted Cash

21,248

2,993

Short-term investments

1,072,867

1,218,481

171,619

Accounts receivable, net

200,843

198,851

28,008

Inventories, net

423,287

352,090

49,591

Prepayments and other current assets

292,825

303,841

42,795

Amounts due from related parties

5,654

20,200

2,845

Total current assets

3,508,421

2,951,599

415,724

Non-current assets

Restricted cash

41,383

Investments

502,579

618,752

87,149

Property and equipment, net

75,619

64,878

9,138

Goodwill, net

857,145

556,567

78,391

Intangible assets, net

689,669

671,396

94,564

Deferred tax assets

1,951

1,375

194

Right-of-use assets, net

133,004

114,348

16,106

Other non-current assets

52,885

27,100

3,817

Total non-current assets

2,354,235

2,054,416

289,359

Total assets

5,862,656

5,006,015

705,083

Liabilities, redeemable non-controlling interests and shareholders’ equity

Current liabilities

Accounts payable

119,847

105,691

14,886

Advances from customers

16,652

41,579

5,856

Accrued expenses and other liabilities

323,259

391,217

55,102

Amounts due to related parties

27,242

9,431

1,328

Income tax payables

21,826

17,946

2,528

Lease liabilities due within one year

79,586

45,464

6,403

Total current liabilities

588,412

611,328

86,103

Non-current liabilities

Deferred tax liabilities

113,441

111,591

15,717

Deferred income-non current

45,280

30,556

4,304

Lease liabilities

52,997

67,767

9,545

Total non-current liabilities

211,718

209,914

29,566

Total liabilities

800,130

821,242

115,669

Redeemable non-controlling interests

339,924

51,466

7,249

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, 2022 and December 31, 2023;
2,030,600,883 Class A shares and 666,572,880 Class B
ordinary shares issued as of December 31, 2022 and
December 31, 2023; 1,569,677,384 Class A ordinary shares
and 666,572,880 Class B ordinary shares outstanding as of
December 31, 2022, 1,487,546,132 Class A ordinary shares
and 666,572,880 Class B ordinary shares outstanding as of
December 31, 2023)

173

173

24

Treasury shares

(669,150)

(864,568)

(121,772)

Additional paid-in capital

12,038,802

12,260,208

1,726,814

Statutory reserve

24,177

24,177

3,405

Accumulated deficit

(6,600,365)

(7,345,153)

(1,034,543)

Accumulated other comprehensive (loss) income

(74,195)

60,200

8,481

Total Yatsen Holding Limited shareholders’ equity

4,719,442

4,135,037

582,409

Non-controlling interests

3,160

(1,730)

(244)

Total shareholders’ equity

4,722,602

4,133,307

582,165

Total liabilities, redeemable non-controlling interests and shareholders’ equity

5,862,656

5,006,015

705,083

 

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,

2022

2023

2023

2022

2023

2023

RMB’000

RMB’000

USD’000

RMB’000

RMB’000

USD’000

Total net revenues

1,005,494

1,072,691

151,085

3,706,122

3,414,774

480,961

Total cost of revenues

(290,886)

(282,548)

(39,796)

(1,187,370)

(901,455)

(126,967)

Gross profit

714,608

790,143

111,289

2,518,752

2,513,319

353,994

Operating expenses:

Fulfilment expenses

(62,523)

(62,741)

(8,837)

(269,886)

(229,021)

(32,257)

Selling and marketing expenses

(535,244)

(717,439)

(101,049)

(2,330,480)

(2,230,974)

(314,226)

General and administrative expenses

(169,945)

(158,716)

(22,355)

(720,409)

(500,942)

(70,556)

Research and development expenses

(25,139)

(36,851)

(5,190)

(126,875)

(111,698)

(15,732)

Impairment of goodwill

(354,039)

(49,865)

(354,039)

(49,865)

Total operating expenses

(792,851)

(1,329,786)

(187,296)

(3,447,650)

(3,426,674)

(482,636)

Loss from operations

(78,243)

(539,643)

(76,007)

(928,898)

(913,355)

(128,642)

Financial income

7,456

15,763

2,220

34,656

89,020

12,538

Foreign currency exchange gain (loss)

8,380

6,400

901

(35,357)

7,218

1,017

(Loss) income from equity method investments, net

(2,086)

4,446

626

12,548

10,122

1,426

Impairment of investments

(5,078)

Other income, net

7,717

15,612

2,199

103,501

53,558

7,543

Loss before income tax expenses

(56,776)

(497,422)

(70,061)

(818,628)

(753,437)

(106,118)

Income tax benefits (expenses)

1,823

2,896

408

(2,705)

3,210

452

Net loss

(54,953)

(494,526)

(69,653)

(821,333)

(750,227)

(105,666)

Net loss attributable to non-controlling

interests and redeemable non-controlling interests

2,705

4,011

565

5,962

5,439

766

Accretion to redeemable non-controlling interests

(2,975)

(419)

Net loss attributable to Yatsen’s shareholders

(52,248)

(490,515)

(69,088)

(815,371)

(747,763)

(105,319)

Shares used in calculating loss per share (1):

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

    Basic

2,236,277,374

2,146,881,745

2,146,881,745

2,372,728,777

2,195,818,231

2,195,818,231

    Diluted

2,236,277,374

2,146,881,745

2,146,881,745

2,372,728,777

2,195,818,231

2,195,818,231

Net loss per Class A and Class B
ordinary share

    Basic

(0.02)

(0.23)

(0.03)

(0.34)

(0.34)

(0.05)

    Diluted

(0.02)

(0.23)

(0.03)

(0.34)

(0.34)

(0.05)

Net loss per ADS (4 ordinary shares
equal to 1 ADS)

    Basic

(0.09)

(0.91)

(0.13)

(1.37)

(1.36)

(0.19)

    Diluted

(0.09)

(0.91)

(0.13)

(1.37)

(1.36)

(0.19)

 

For the Three Months Ended December 31,

For the Year Ended December 31,

2022

2023

2023

2022

2023

2023

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

937

256

36

4,267

2,055

289

Selling and marketing expenses

13,712

3,298

465

62,231

23,518

3,312

General and administrative expenses

57,586

39,688

5,590

248,400

46,902

6,606

Research and development expenses

4,490

1,241

175

25,962

5,027

708

Total

76,725

44,483

6,266

340,860

77,502

10,915

(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 December 31,

For the Year Ended December 31,

2022

2023

2023

2022

2023

2023

RMB’000

RMB’000

USD’000

RMB’000

RMB’000

USD’000

Loss from operations

(78,243)

(539,643)

(76,007)

(928,898)

(913,355)

(128,642)

Share-based compensation expenses

76,725

44,483

6,266

340,860

77,502

10,915

Impairment of goodwill

354,039

49,865

354,039

49,865

Amortization of intangible assets
resulting from assets and business
acquisitions

13,063

15,231

2,145

48,700

54,297

7,648

Non-GAAP income (loss) from
operations

11,545

(125,890)

(17,731)

(539,338)

(427,517)

(60,214)

Net loss

(54,953)

(494,526)

(69,653)

(821,333)

(750,227)

(105,666)

Share-based compensation expenses

76,725

44,483

6,266

340,860

77,502

10,915

Impairment of goodwill

354,039

49,865

354,039

49,865

Amortization of intangible assets
resulting from assets and business
acquisitions

13,063

15,231

2,145

48,700

54,297

7,648

Revaluation of investments on the
share of equity method investments

2,071

(10,337)

(1,456)

(12,779)

(22,324)

(3,144)

Tax effects on non-GAAP adjustments

(2,229)

(2,635)

(371)

(8,360)

(9,356)

(1,318)

Non-GAAP net income (loss)

34,677

(93,745)

(13,204)

(452,912)

(296,069)

(41,700)

Net loss attributable to Yatsen’s
shareholders

(52,248)

(490,515)

(69,088)

(815,371)

(747,763)

(105,319)

Share-based compensation expenses

76,725

44,483

6,266

340,860

77,502

10,915

Impairment of goodwill

354,039

49,865

354,039

49,865

Amortization of intangible assets
resulting from assets and business
acquisitions

12,780

14,945

2,105

47,663

53,214

7,495

Revaluation of investments on the
share of equity method investments

2,071

(10,337)

(1,456)

(12,779)

(22,324)

(3,144)

Tax effects on non-GAAP adjustments

(2,229)

(2,635)

(371)

(8,360)

(9,356)

(1,318)

Accretion to redeemable non-
controlling interests

2,975

419

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

37,099

(90,020)

(12,679)

(447,987)

(291,713)

(41,087)

Shares used in calculating loss per
share:

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

    Basic

2,236,277,374

2,146,881,745

2,146,881,745

2,372,728,777

2,195,818,231

2,195,818,231

    Diluted

2,343,024,839

2,146,881,745

2,146,881,745

2,372,728,777

2,195,818,231

2,195,818,231

Non-GAAP net income (loss)
attributable to ordinary
shareholders per Class A and Class
B ordinary share

    Basic

0.02

(0.04)

(0.01)

(0.19)

(0.13)

(0.02)

    Diluted

0.02

(0.04)

(0.01)

(0.19)

(0.13)

(0.02)

Non-GAAP net income (loss)
attributable to ordinary
shareholders per ADS (4 ordinary
shares equal to 1 ADS)

    Basic

0.07

(0.17)

(0.02)

(0.76)

(0.53)

(0.07)

    Diluted

0.06

(0.17)

(0.02)

(0.76)

(0.53)

(0.07)

 

 

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