Yatsen Holding Limited (NYSE: YSG) is a multi-brand beauty group headquartered in Guangzhou, China, founded in 2016 and later renamed to Yatsen Holding Limited in January 2019. The company operates through subsidiaries and participates in the creation, marketing, and distribution of a broad portfolio of beauty products sold primarily in ...Yatsen Holding Limited (NYSE: YSG) is a multi-brand beauty group headquartered in Guangzhou, China, founded in 2016 and later renamed to Yatsen Holding Limited in January 2019. The company operates through subsidiaries and participates in the creation, marketing, and distribution of a broad portfolio of beauty products sold primarily in the People’s Republic of China, with a growing global presence noted in investor materials.
From a product and brand perspective, Yatsen’s offering spans multiple categories including color cosmetics (for eyes, lips, and face), skincare, and nail care, as well as beauty accessories and tools such as brush sets, cotton pads, compact mirrors, and sponges. The company markets well-known brands including Perfect Diary, Little Ondine, Pink Bear, Abby’s Choice, Galánic, DR.WU, Eve Lom, and EANTiM. It also provides curated product kits and other beauty-related items such as fragrances, beauty devices, and colored contact lenses—indicating a strategy of multi-category brand development rather than reliance on a single product type.
Business model and channels: Yatsen sells through a combination of traditional brick-and-mortar retail outlets and online sales channels. This omnichannel approach helps the company reach consumers across different shopping behaviors, supporting demand generation for both flagship and newer product launches. The company’s operating emphasis on beauty innovation is reflected in its positioning as a pioneer in beauty innovation, which is consistent with its broad catalog and multi-brand strategy.
Scale and organization: Based on the provided full-time employee count, Yatsen has approximately 1,505 employees, placing it in the 1,001–2,000 range. The company’s governance includes founder and CEO Jinfeng Huang, who has served as director and chief executive officer since the company’s inception.
Financial and performance signals (high level): The provided financial snapshot includes indicators such as strong gross profitability margin (as reflected by grossProfitMarginTTM in the dataset) alongside negative margins at operating/net levels in the same period (e.g., operatingProfitMarginTTM and netProfitMarginTTM). These mixed signals are common in consumer/beauty businesses when investing in growth, branding, and innovation while absorbing costs and/or normalization effects. The dataset also reports meaningful cash/liquidity metrics like a relatively high current ratio and working capital, suggesting the company’s ability to manage day-to-day obligations.
Cost structure and operations (practical view): Given the nature of beauty retail and brand management, core cost drivers typically include research and development for product and formulation, marketing and brand promotion, distribution/logistics, and inventory management across product seasons. The data includes an R&D to revenue ratio and an SG&A-to-revenue ratio, which collectively align with a brand-led consumer products business where marketing intensity and innovation are key.
Overall, Yatsen’s strategy is centered on building and scaling multi-brand beauty portfolios, maintaining an omnichannel distribution footprint, and using innovation and brand storytelling to drive consumer engagement. Its key leadership—Jinfeng Huang, founder and CEO—reflects continuity in vision since the company’s early formation.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$4.2B
+21.5%
-24.9%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$-78.7M
+89.0%
-860.8%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+79.2%
+2.7%
+2.3%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
-4.3%
+65.2%
-953.6%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
-1.9%
+91.0%
-1113.8%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$-138.5M
+54.0%
+100.0%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
-3.3%
+62.1%
+100.0%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
5.9%
+20.3%
-4.7%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
3.63x
-1.0%
-1.1%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Ladies and gentlemen, good day, and welcome to the Yatsen First Quarter 2026 Earnings Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Irene Lyu, Vice President, Head of Strategic Investment and Capital Markets. Please go ahead.
Irene Lyu: Thank you, operator. Please note the discussion today will contain forward-looking statements relating to the company's future performance and are intended to qualify for the safe harbor from liability as established by the U.S. Private Securities Litigation Reform Act. Such statements are not guarantees of future performance and are subject to certain risks and uncertainties, assumptions and other factors. Some of these risks are beyond the company's control and could cause actual results to differ materially from those mentioned in today's press release and this discussion. A general discussion of the risk factors that could affect Jason's business financial results is included in certain filings of the company with the Securities and Exchange Commission. Companies that box undertakes any obligation to update this forward-looking information, except as required by law. During today's call, management will also discuss certain non-GAAP financial measures for comparison purposes for. Please see the earnings release issued earlier today for a definition of non-GAAP financial measures and a reconciliation of GAAP to non-GAAP financial results. Joining us today on the call from Yatsen's senior management are Mr. Info Hong, our Founder, Chairman and CEO; and Mr. Doho Yang, our CFO and Director. Management will begin with prepared remarks, and the call will conclude with the Q&A session. As a reminder, this conference is duly recorded. In addition, a webcast replay of this conference call will be available on Yatsen's Investor Relations website. at ir.yatsenglobal.com. I'll now turn the call over to Mr. Jinfeng Huang. Please go ahead, sir.
Jinfeng Huang: Thank you, Irene. Hello, everyone, and thank you for joining our first quarter 2026 earnings call earnings call. Going into this year, we delivered top line growth that met our period guidance range. and demonstrated ongoing resilience of our multi-brand strategy. Our financial and operational highlights this quarter further show that Yatsen is navigating the market with a clear strategic vision. Looking at the macro environment. According to the National Bureau of Statistics, beauty retail sales grew by 5.9% year-over-year in the third quarter of it reflecting a stable, highly competitive domestic beauty market. Looking closely at the online channels, the combined sales across Tmall, Loen and Digi.com also recorded a single-digit year-over-year growth. Against this market backdrop, our strategic rebalancing has yield highly encouraging results. Our total net revenues based on a steady growth trajectory, growing by 22.5% year-over-year for the first quarter. More importantly, this growth was …
