Yatsen Holding Limited

What they do

Yatsen operates a portfolio of beauty brands split between Color Cosmetics Brands — Perfect Diary, Little Ondine and Pink Bear — and Skincare Brands — Galénic, DR.WU (mainland China business) and Eve Lom. The company is headquartered in Guangzhou and its American Depositary Shares, each representing twenty Class A ordinary shares, trade on the New York Stock Exchange under the symbol YSG. It reports in U.S. dollars under U.S. GAAP, with a fiscal year ending December 31.

Revenue drivers

• Color Cosmetics Brands — Perfect Diary, Little Ondine, Pink Bear and other color cosmetics brands form one of the two reported brand groups; the filing does not break out revenue by group, so relative size versus skincare is not disclosed in the excerpts.
• Skincare Brands — Galénic, DR.WU (mainland China business), Eve Lom and other skincare brands form the second reported brand group; like color cosmetics, segment-level revenue is not provided in the excerpts.
• Direct-to-consumer (DTC) model and KOL-driven marketing — The filing defines DTC and KOL as core terms of the business model, indicating the company sells through direct-to-consumer channels and uses key opinion leaders for promotion, though channel-level revenue is not disclosed.
• China market focus — The company describes itself as operating in the PRC (excluding Hong Kong, Macau and Taiwan for reporting purposes) from its Guangzhou headquarters; no geographic revenue split is given in the excerpts.

Recent performance

Revenue fell from $916.4M in 2021 to $537.3M in 2022, $481.0M in 2023 and $464.9M in 2024, then rose to $614.6M in 2025. Net income was negative in every year shown: -$241.8M (2021), -$118.2M (2022), -$747.8M (2023), -$97.0M (2024) and -$11.6M (2025), with the 2025 loss the smallest of the period. Diluted EPS improved from -$0.10 in 2021 to -$0.01 in 2025. Operating cash flow was -$160.1M in 2021, positive $19.7M in 2022, then -$15.1M in 2023, -$33.4M in 2024 and -$13.5M in 2025. At December 31, 2025, total assets were $550.1M, total liabilities $121.0M, shareholder equity $430.5M and cash and equivalents $109.4M.

Strategy

The excerpts provided do not include a strategy or outlook discussion from Item 5 of the 20-F. What the filing does establish is the reporting structure: two brand groups (Color Cosmetics and Skincare) and ongoing brand-level operations from Guangzhou. No specific cost-cutting, brand-investment, channel-shift or geographic-expansion plan is described in the source material provided. Any statement of direction beyond the reported brand portfolio would go beyond what the excerpts support.

Risks

• Persistent net losses — Yatsen reported net losses in each of 2021 through 2025, including a $747.8M loss in 2023, and has not yet demonstrated sustained profitability.
• Revenue volatility and prior decline — Revenue fell from $916.4M in 2021 to $464.9M in 2024 before recovering to $614.6M in 2025, showing the top line can contract sharply year over year.
• Negative operating cash flow — Operating cash flow was negative in four of the five years shown (2021, 2023, 2024, 2025), with only 2022 positive at $19.7M.
• China market and regulatory exposure — The company is headquartered in Guangzhou and describes its business as PRC-focused, concentrating operations and regulatory exposure in a single market.

Outlook

The excerpts provided do not include management's outlook, guidance or forward-looking statements from Item 5 of the 20-F. Reported figures show a smaller 2025 net loss ($11.6M) and higher 2025 revenue ($614.6M) than 2024, but no management commentary on future periods is contained in the source material. Any projection of 2026 results would not be supported by the excerpts.