Conference Call to Be Held at 7:30 A.M. U.S. Eastern Time on August 22, 2023
GUANGZHOU, China, Aug. 22,
2023 /PRNewswire/ -- Yatsen Holding Limited ("Yatsen"
or the "Company") (NYSE: YSG), a leading China-based beauty group, today announced its
unaudited financial results for the second quarter ended
June 30, 2023.
Second Quarter 2023 Highlights
- Total net revenues for the second quarter of 2023
decreased by 9.8% to RMB858.6 million
(US$118.4 million) from RMB951.8 million for the prior year
period.
- Total net revenues from Skincare
Brands[1] for the second
quarter of 2023 increased by 2.3% to RMB325.2 million (US$44.8
million) from RMB317.8 million
for the prior year period. As a percentage of total net revenues,
total net revenues from Skincare Brands for the second quarter of
2023 increased to 37.9% from 33.4% for the prior year period.
- Gross margin for the second quarter of 2023 was 74.7%,
as compared with 62.9% for the prior year period.
- Net loss for the second quarter of 2023 decreased by
59.0% to RMB108.5 million
(US$15.0 million) from RMB264.3 million for the prior year period.
Non-GAAP net loss[2] for
the second quarter of 2023 decreased by 77.7% to RMB46.3 million (US$6.4
million) from RMB207.5 million
for the prior year period.
Mr. Jinfeng Huang, Founder,
Chairman and Chief Executive Officer of Yatsen, stated, "The beauty
industry experienced a modest post-COVID recovery during the second
quarter of 2023. While uncertainty in consumer demand persisted, we
continued to focus on fine-tuning our business model and investing
in brand building and R&D. Along with improvements in certain
of our key financial and operating metrics, our strategic
transformation plan remained largely on track. Furthermore,
operations of the Guangzhou
manufacturing hub we established with Cosmax officially commenced
on August 11, enabling further
optimization of our supply chain. Looking ahead to the remainder of
the year, our team is devoting resources to new product launches
with the goal of bringing exciting new beauty solutions to our
customers."
Mr. Donghao Yang, Director and
Chief Financial Officer of Yatsen, commented, "As a result of our
business transformation strategy and the recovery trend in the
beauty market, we again beat our previous guidance, with total net
revenues declining by 9.8% year-over-year for the second quarter of
2023. Net revenues from our Skincare Brands grew by 2.3%
year-over-year, benefiting from the solid performance of our
clinical and premium brands, including
Galénic, DR.WU and Eve Lom, which recorded year-over-year
growth of 13.3% in combined net revenues. Furthermore, gross margin
has demonstrated a clear upward trend over the past four quarters,
rising to 74.7% in the second quarter of 2023. We also narrowed our
net loss margin to 12.6% and non-GAAP net loss margin to 5.4%.
Supported by ample cash, restricted
cash and short-term investments balance of RMB2.57 billion, we are prepared to drive further
progress in our business transformation in the second half of
2023."
Second Quarter 2023 Financial Results
Net Revenues
Total net revenues for the second quarter of 2023 decreased by
9.8% to RMB858.6 million
(US$118.4 million) from RMB951.8 million for the prior year period. The
decrease was primarily attributable to a 16.6% year-over-year
decrease in net revenues from Color Cosmetics Brands[3],
partially offset by a 2.3% year-over-year increase in net revenues
from Skincare Brands.
Gross Profit and Gross Margin
Gross profit for the second quarter of 2023 increased by 7.2% to
RMB641.6 million (US$88.5 million) from RMB598.3 million for the prior year period. Gross
margin for the second quarter of 2023 increased to 74.7% from 62.9%
for the prior year period. The increase was driven by (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
portfolios.
Operating Expenses
Total operating expenses for the second quarter of 2023
decreased by 11.3% to RMB776.7
million (US$107.1 million)
from RMB875.3 million for the prior
year period. As a percentage of total net revenues, total operating
expenses for the second quarter of 2023 were 90.5%, as compared
with 92.0% for the prior year period.
- Fulfillment Expenses. Fulfillment expenses for
the second quarter of 2023 were RMB58.3
million (US$8.0 million), as
compared with RMB69.7 million for the
prior year period. As a percentage of total net revenues,
fulfillment expenses for the second quarter of 2023 decreased to
6.8% from 7.3% for the prior year period. The decrease was
primarily attributable to a decrease in warehouse and logistics
costs due to the outsourcing of most of the Company's warehousing
and handling operations.
- Selling and Marketing Expenses. Selling and
marketing expenses for the second quarter of 2023 were RMB542.8 million (US$74.9
million), as compared with RMB625.7
million for the prior year period. As a percentage of total
net revenues, selling and marketing expenses for the second quarter
of 2023 decreased to 63.2% from 65.7% for the prior year period.
The decrease was primarily attributable to the closure of
underperforming offline stores and a reduction in share-based
compensation related to the decrease in selling and marketing
headcount, partially offset by an increase in online advertising
expenses.
- General and Administrative Expenses. General
and administrative expenses for the second quarter of 2023 were
RMB149.7 million (US$20.6 million), as compared with RMB147.8 million for the prior year period. As a
percentage of total net revenues, general and administrative
expenses for the second quarter of 2023 increased to 17.4% from
15.5% for the prior year period. The increase was primarily
attributable to an increase in share-based compensation, combined
with the deleveraging effect of lower total net revenues in the
second quarter of 2023.
- Research and Development Expenses. Research
and development expenses for the second quarter of 2023 were
RMB25.9 million (US$3.6 million), as compared with RMB32.0 million for the prior year period. As a
percentage of total net revenues, research and development expenses
for the second quarter of 2023 decreased to 3.0% from 3.4% for the
prior year period. The decrease was primarily attributable to the
Company's efforts to maintain research and development expenses at
a reasonable level relative to total net revenues.
Loss from Operations
Loss from operations for the second quarter of 2023 decreased by
51.2% to RMB135.1 million
(US$18.6 million) from RMB277.0 million for the prior year period.
Operating loss margin was 15.7%, as compared with 29.1% for the
prior year period.
Non-GAAP loss from operations[4] for the second
quarter of 2023 decreased by 65.8% to RMB74.6 million (US$10.3
million) from RMB218.2 million
for the prior year period. Non-GAAP operating loss margin was 8.7%,
as compared with 22.9% for the prior year period.
Net Loss
Net loss for the second quarter of 2023 decreased by 59.0% to
RMB108.5 million (US$15.0 million) from RMB264.3 million for the prior year period. Net
loss margin was 12.6%, as compared with 27.8% for the prior year
period. Net loss attributable to Yatsen's ordinary shareholders per
diluted ADS[5] for the second quarter of 2023
was RMB0.20 (US$0.03), as compared with RMB0.43 for the prior year period.
Non-GAAP net loss for the second quarter of 2023 decreased by
77.7% to RMB46.3 million
(US$6.4 million) from RMB207.5 million for the prior year period.
Non-GAAP net loss margin was 5.4%, as compared with 21.8% for the
prior year period. Non-GAAP net loss attributable to Yatsen's
ordinary shareholders per diluted ADS[6] for
the second quarter of 2023 was RMB0.08 (US$0.01),
as compared with RMB0.34 for the
prior year period.
Balance Sheet and Cash Flow
As of June 30, 2023, the Company
had cash, restricted cash and short-term investments of
RMB2.57 billion (US$354.6 million), as compared with RMB2.63 billion as of December 31, 2022.
Net cash used in operating activities for the second quarter of
2023 was RMB14.4 million
(US$2.0 million), compared with net
cash generated from operating activities of RMB111.9 million for the prior year period.
Business Outlook
For the third quarter of 2023, the Company expects its total net
revenues to be between RMB686.3
million and RMB772.1 million,
representing a year-over-year decline of approximately 10% to 20%.
These forecasts reflect the Company's current and preliminary views
on the market and operational conditions, which are subject to
change.
Exchange Rate
This announcement contains translations of certain Renminbi
("RMB") amounts into U.S. dollars ("US$") 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 RMB7.2513 to US$1.00, the exchange rate in effect as of
June 30, 2023, as set forth in the
H.10 statistical release of The Board of Governors of the Federal
Reserve System. The Company makes no representation that any RMB or
US$ 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 DR.WU (its mainland China business),
Galénic, Eve Lom, Abby's Choice and other
skincare brands of the Company.
|
|
[2] Non-GAAP
net loss is a non-GAAP financial measure. Effective from the third
quarter of 2022, non-GAAP net 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, and (iv) tax effects on non-GAAP adjustments, and
non-GAAP net 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
loss from operations is a non-GAAP financial measure. Non-GAAP loss
from operations is defined as loss from operations excluding
share-based compensation expenses and amortization of intangible
assets resulting from assets and business acquisitions.
|
|
[5] ADS
refers to American depositary shares, each of which represents four
Class A ordinary shares.
|
|
[6] Non-GAAP
net loss attributable to ordinary shareholders per diluted ADS is a
non-GAAP financial measure. Non-GAAP net loss attributable to
ordinary shareholders per diluted ADS is defined as non-GAAP net
loss attributable to ordinary shareholders divided by the weighted
average number of diluted ADS outstanding for computing diluted
earnings per ADS. Effective from the second quarter of 2023,
non-GAAP net loss attributable to ordinary shareholders is defined
as net 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) tax effects on non-GAAP adjustments and (v)
accretion to redeemable non-controlling interests, and non-GAAP net
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
Tuesday, August 22, 2023, 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
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:
|
9229690
|
The replay will be accessible through August 29, 2023, by dialing the following
numbers:
|
United States:
|
+1-877-344-7529
|
|
International:
|
+1-412-317-0088
|
|
Replay Access
Code:
|
9229690
|
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 share-based compensation expenses and amortization of
intangible assets resulting from assets and business acquisitions.
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, and (iv) 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) tax
effects on non-GAAP adjustments and (v) 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,
|
|
|
June
30,
|
|
|
June
30,
|
|
|
|
2022
|
|
|
2023
|
|
|
2023
|
|
|
|
RMB'000
|
|
|
RMB'000
|
|
|
USD'000
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
1,512,945
|
|
|
|
986,815
|
|
|
|
136,088
|
|
|
Short-term
investments
|
|
|
1,072,867
|
|
|
|
1,562,567
|
|
|
|
215,488
|
|
|
Accounts receivable,
net
|
|
|
200,843
|
|
|
|
190,337
|
|
|
|
26,249
|
|
|
Inventories,
net
|
|
|
423,287
|
|
|
|
394,529
|
|
|
|
54,408
|
|
|
Prepayments and other
current assets
|
|
|
292,825
|
|
|
|
335,753
|
|
|
|
46,302
|
|
|
Amounts due from
related parties
|
|
|
5,654
|
|
|
|
14,708
|
|
|
|
2,028
|
|
|
Total current
assets
|
|
|
3,508,421
|
|
|
|
3,484,709
|
|
|
|
480,563
|
|
|
Non-current
assets
|
|
|
|
|
|
|
|
|
|
|
Restricted
cash
|
|
|
41,383
|
|
|
|
21,754
|
|
|
|
3,000
|
|
|
Investments
|
|
|
502,579
|
|
|
|
546,524
|
|
|
|
75,369
|
|
|
Property and
equipment, net
|
|
|
75,619
|
|
|
|
64,952
|
|
|
|
8,957
|
|
|
Goodwill
|
|
|
857,145
|
|
|
|
919,042
|
|
|
|
126,742
|
|
|
Intangible assets,
net
|
|
|
689,669
|
|
|
|
710,622
|
|
|
|
97,999
|
|
|
Deferred tax
assets
|
|
|
1,951
|
|
|
|
1,391
|
|
|
|
192
|
|
|
Right-of-use assets,
net
|
|
|
133,004
|
|
|
|
102,764
|
|
|
|
14,172
|
|
|
Other non-current
assets
|
|
|
52,885
|
|
|
|
44,047
|
|
|
|
6,074
|
|
|
Total non-current
assets
|
|
|
2,354,235
|
|
|
|
2,411,096
|
|
|
|
332,505
|
|
|
Total
assets
|
|
|
5,862,656
|
|
|
|
5,895,805
|
|
|
|
813,068
|
|
|
Liabilities,
redeemable non-controlling interests and shareholders'
equity
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
|
119,847
|
|
|
|
105,329
|
|
|
|
14,526
|
|
|
Advances from
customers
|
|
|
16,652
|
|
|
|
15,456
|
|
|
|
2,131
|
|
|
Accrued expenses and
other liabilities
|
|
|
323,259
|
|
|
|
325,133
|
|
|
|
44,838
|
|
|
Amounts due to related
parties
|
|
|
27,242
|
|
|
|
43,651
|
|
|
|
6,020
|
|
|
Income tax
payables
|
|
|
21,826
|
|
|
|
21,966
|
|
|
|
3,029
|
|
|
Lease liabilities due
within one year
|
|
|
79,586
|
|
|
|
61,659
|
|
|
|
8,503
|
|
|
Total current
liabilities
|
|
|
588,412
|
|
|
|
573,194
|
|
|
|
79,047
|
|
|
Non-current
liabilities
|
|
|
|
|
|
|
|
|
|
|
Deferred tax
liabilities
|
|
|
113,441
|
|
|
|
118,031
|
|
|
|
16,277
|
|
|
Deferred income-non
current
|
|
|
45,280
|
|
|
|
39,444
|
|
|
|
5,440
|
|
|
Lease
liabilities
|
|
|
52,997
|
|
|
|
40,022
|
|
|
|
5,519
|
|
|
Total non-current
liabilities
|
|
|
211,718
|
|
|
|
197,497
|
|
|
|
27,236
|
|
|
Total
liabilities
|
|
|
800,130
|
|
|
|
770,691
|
|
|
|
106,283
|
|
|
Redeemable
non-controlling interests
|
|
|
339,924
|
|
|
|
342,899
|
|
|
|
47,288
|
|
|
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
June 30, 2023; 2,030,600,883 Class A shares and 666,572,880 Class
B
ordinary shares issued as of December 31, 2022 and June 30,
2023;
1,569,677,384 Class A ordinary shares and 666,572,880 Class B
ordinary shares outstanding as of December 31, 2022,
1,535,621,200
Class A ordinary shares and 666,572,880 Class B ordinary shares
outstanding as of June 30, 2023)
|
|
|
173
|
|
|
|
173
|
|
|
|
24
|
|
|
Treasury
shares
|
|
|
(669,150)
|
|
|
|
(729,169)
|
|
|
|
(100,557)
|
|
|
Additional paid-in
capital
|
|
|
12,038,802
|
|
|
|
12,015,386
|
|
|
|
1,656,998
|
|
|
Statutory
reserve
|
|
|
24,177
|
|
|
|
24,177
|
|
|
|
3,334
|
|
|
Accumulated
deficit
|
|
|
(6,600,365)
|
|
|
|
(6,658,099)
|
|
|
|
(918,194)
|
|
|
Accumulated other
comprehensive (loss) income
|
|
|
(74,195)
|
|
|
|
126,095
|
|
|
|
17,388
|
|
|
Total Yatsen Holding
Limited shareholders' equity
|
|
|
4,719,442
|
|
|
|
4,778,563
|
|
|
|
658,993
|
|
|
Non-controlling
interests
|
|
|
3,160
|
|
|
|
3,652
|
|
|
|
504
|
|
|
Total shareholders'
equity
|
|
|
4,722,602
|
|
|
|
4,782,215
|
|
|
|
659,497
|
|
|
Total liabilities,
redeemable non-controlling interests and
shareholders' equity
|
|
|
5,862,656
|
|
|
|
5,895,805
|
|
|
|
813,068
|
|
|
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,
|
|
|
|
2022
|
|
|
2023
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2023
|
|
|
|
RMB'000
|
|
|
RMB'000
|
|
|
USD'000
|
|
|
RMB'000
|
|
|
RMB'000
|
|
|
USD'000
|
|
|
Total net
revenues
|
|
|
951,770
|
|
|
|
858,562
|
|
|
|
118,401
|
|
|
|
1,842,724
|
|
|
|
1,623,958
|
|
|
|
223,954
|
|
|
Total cost of
revenues
|
|
|
(353,450)
|
|
|
|
(216,915)
|
|
|
|
(29,914)
|
|
|
|
(629,858)
|
|
|
|
(413,582)
|
|
|
|
(57,036)
|
|
|
Gross
profit
|
|
|
598,320
|
|
|
|
641,647
|
|
|
|
88,487
|
|
|
|
1,212,866
|
|
|
|
1,210,376
|
|
|
|
166,918
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fulfilment
expenses
|
|
|
(69,743)
|
|
|
|
(58,339)
|
|
|
|
(8,045)
|
|
|
|
(143,606)
|
|
|
|
(110,255)
|
|
|
|
(15,205)
|
|
|
Selling and marketing
expenses
|
|
|
(625,695)
|
|
|
|
(542,781)
|
|
|
|
(74,853)
|
|
|
|
(1,230,421)
|
|
|
|
(1,001,829)
|
|
|
|
(138,159)
|
|
|
General and
administrative expenses
|
|
|
(147,794)
|
|
|
|
(149,655)
|
|
|
|
(20,638)
|
|
|
|
(355,923)
|
|
|
|
(190,396)
|
|
|
|
(26,257)
|
|
|
Research and
development expenses
|
|
|
(32,045)
|
|
|
|
(25,930)
|
|
|
|
(3,576)
|
|
|
|
(67,855)
|
|
|
|
(50,108)
|
|
|
|
(6,910)
|
|
|
Total operating
expenses
|
|
|
(875,277)
|
|
|
|
(776,705)
|
|
|
|
(107,112)
|
|
|
|
(1,797,805)
|
|
|
|
(1,352,588)
|
|
|
|
(186,531)
|
|
|
Loss from
operations
|
|
|
(276,957)
|
|
|
|
(135,058)
|
|
|
|
(18,625)
|
|
|
|
(584,939)
|
|
|
|
(142,212)
|
|
|
|
(19,613)
|
|
|
Financial
income
|
|
|
8,263
|
|
|
|
15,950
|
|
|
|
2,200
|
|
|
|
16,366
|
|
|
|
42,938
|
|
|
|
5,921
|
|
|
Foreign currency
exchange (loss) gain
|
|
|
(21,796)
|
|
|
|
4,567
|
|
|
|
630
|
|
|
|
(24,428)
|
|
|
|
(982)
|
|
|
|
(135)
|
|
|
Income (loss) from
equity method investments, net
|
|
|
45
|
|
|
|
(6,729)
|
|
|
|
(928)
|
|
|
|
(2,285)
|
|
|
|
12,331
|
|
|
|
1,701
|
|
|
Impairment loss of
investments
|
|
|
(662)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(5,078)
|
|
|
|
-
|
|
|
|
-
|
|
|
Other income,
net
|
|
|
27,932
|
|
|
|
11,649
|
|
|
|
1,606
|
|
|
|
45,586
|
|
|
|
29,166
|
|
|
|
4,022
|
|
|
Loss before income
tax expenses
|
|
|
(263,175)
|
|
|
|
(109,621)
|
|
|
|
(15,117)
|
|
|
|
(554,778)
|
|
|
|
(58,759)
|
|
|
|
(8,104)
|
|
|
Income tax (expenses)
benefits
|
|
|
(1,095)
|
|
|
|
1,154
|
|
|
|
159
|
|
|
|
(872)
|
|
|
|
968
|
|
|
|
133
|
|
|
Net
loss
|
|
|
(264,270)
|
|
|
|
(108,467)
|
|
|
|
(14,958)
|
|
|
|
(555,650)
|
|
|
|
(57,791)
|
|
|
|
(7,971)
|
|
|
Net (loss) income
attributable to non-
controlling interests and redeemable non-
controlling interests
|
|
|
(1,660)
|
|
|
|
675
|
|
|
|
93
|
|
|
|
(1,195)
|
|
|
|
57
|
|
|
|
8
|
|
|
Accretion to redeemable
non-controlling interests
|
|
|
-
|
|
|
|
(2,975)
|
|
|
|
(410)
|
|
|
|
-
|
|
|
|
(2,975)
|
|
|
|
(410)
|
|
|
Net loss
attributable to Yatsen's
shareholders
|
|
|
(265,930)
|
|
|
|
(110,767)
|
|
|
|
(15,275)
|
|
|
|
(556,845)
|
|
|
|
(60,709)
|
|
|
|
(8,373)
|
|
|
Shares used in
calculating loss per share
(1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number
of Class A and
Class B ordinary shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
2,475,134,621
|
|
|
|
2,228,009,569
|
|
|
|
2,228,009,569
|
|
|
|
2,500,801,376
|
|
|
|
2,232,107,152
|
|
|
|
2,232,107,152
|
|
|
Diluted
|
|
|
2,475,134,621
|
|
|
|
2,228,009,569
|
|
|
|
2,228,009,569
|
|
|
|
2,500,801,376
|
|
|
|
2,232,107,152
|
|
|
|
2,232,107,152
|
|
|
Net loss per Class A
and Class B ordinary
share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
(0.11)
|
|
|
|
(0.05)
|
|
|
|
(0.01)
|
|
|
|
(0.22)
|
|
|
|
(0.03)
|
|
|
|
(0.00)
|
|
|
Diluted
|
|
|
(0.11)
|
|
|
|
(0.05)
|
|
|
|
(0.01)
|
|
|
|
(0.22)
|
|
|
|
(0.03)
|
|
|
|
(0.00)
|
|
|
Net loss per ADS (4
ordinary shares equal
to 1 ADS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
(0.43)
|
|
|
|
(0.20)
|
|
|
|
(0.03)
|
|
|
|
(0.89)
|
|
|
|
(0.11)
|
|
|
|
(0.02)
|
|
|
Diluted
|
|
|
(0.43)
|
|
|
|
(0.20)
|
|
|
|
(0.03)
|
|
|
|
(0.89)
|
|
|
|
(0.11)
|
|
|
|
(0.02)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended June 30,
|
|
|
For the Six Months
Ended June 30,
|
|
|
|
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
|
|
|
970
|
|
|
|
381
|
|
|
|
53
|
|
|
|
2,493
|
|
|
|
1,032
|
|
|
|
142
|
|
|
Selling and marketing
expenses
|
|
|
11,363
|
|
|
|
4,443
|
|
|
|
613
|
|
|
|
33,718
|
|
|
|
10,735
|
|
|
|
1,480
|
|
|
General and
administrative expenses (income)
|
|
|
27,590
|
|
|
|
40,899
|
|
|
|
5,640
|
|
|
|
122,573
|
|
|
|
(35,421)
|
|
|
|
(4,885)
|
|
|
Research and
development expenses
|
|
|
7,017
|
|
|
|
1,783
|
|
|
|
246
|
|
|
|
13,974
|
|
|
|
3,762
|
|
|
|
519
|
|
|
Total
|
|
|
46,940
|
|
|
|
47,506
|
|
|
|
6,552
|
|
|
|
172,758
|
|
|
|
(19,892)
|
|
|
|
(2,744)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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,
|
|
|
|
2022
|
|
|
2023
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2023
|
|
|
|
RMB'000
|
|
|
RMB'000
|
|
|
USD'000
|
|
|
RMB'000
|
|
|
RMB'000
|
|
|
USD'000
|
|
|
Loss from
operations
|
|
|
(276,957)
|
|
|
|
(135,058)
|
|
|
|
(18,625)
|
|
|
|
(584,939)
|
|
|
|
(142,212)
|
|
|
|
(19,613)
|
|
|
Share-based
compensation expenses
(income)
|
|
|
46,940
|
|
|
|
47,506
|
|
|
|
6,552
|
|
|
|
172,758
|
|
|
|
(19,892)
|
|
|
|
(2,744)
|
|
|
Amortization of
intangible assets
resulting from assets and business
acquisitions
|
|
|
11,862
|
|
|
|
12,934
|
|
|
|
1,784
|
|
|
|
23,945
|
|
|
|
25,110
|
|
|
|
3,463
|
|
|
Non-GAAP loss from
operations
|
|
|
(218,155)
|
|
|
|
(74,618)
|
|
|
|
(10,289)
|
|
|
|
(388,236)
|
|
|
|
(136,994)
|
|
|
|
(18,894)
|
|
|
Net loss
|
|
|
(264,270)
|
|
|
|
(108,467)
|
|
|
|
(14,958)
|
|
|
|
(555,650)
|
|
|
|
(57,791)
|
|
|
|
(7,971)
|
|
|
Share-based
compensation expenses
(income)
|
|
|
46,940
|
|
|
|
47,506
|
|
|
|
6,552
|
|
|
|
172,758
|
|
|
|
(19,892)
|
|
|
|
(2,744)
|
|
|
Amortization of
intangible assets
resulting from assets and business
acquisitions
|
|
|
11,862
|
|
|
|
12,934
|
|
|
|
1,784
|
|
|
|
23,945
|
|
|
|
25,110
|
|
|
|
3,463
|
|
|
Revaluation of
investments on the
share of equity method investments
|
|
|
-
|
|
|
|
3,932
|
|
|
|
542
|
|
|
|
1,986
|
|
|
|
(15,214)
|
|
|
|
(2,098)
|
|
|
Tax effects on
non-GAAP
adjustments
|
|
|
(2,042)
|
|
|
|
(2,211)
|
|
|
|
(305)
|
|
|
|
(4,126)
|
|
|
|
(4,291)
|
|
|
|
(592)
|
|
|
Non-GAAP net
loss
|
|
|
(207,510)
|
|
|
|
(46,306)
|
|
|
|
(6,385)
|
|
|
|
(361,087)
|
|
|
|
(72,078)
|
|
|
|
(9,942)
|
|
|
Net loss attributable
to Yatsen's
shareholders
|
|
|
(265,930)
|
|
|
|
(110,767)
|
|
|
|
(15,275)
|
|
|
|
(556,845)
|
|
|
|
(60,709)
|
|
|
|
(8,373)
|
|
|
Share-based
compensation expenses
(income)
|
|
|
46,940
|
|
|
|
47,506
|
|
|
|
6,552
|
|
|
|
172,758
|
|
|
|
(19,892)
|
|
|
|
(2,744)
|
|
|
Amortization of
intangible assets
resulting from assets and business
acquisitions
|
|
|
10,945
|
|
|
|
12,656
|
|
|
|
1,745
|
|
|
|
22,776
|
|
|
|
24,568
|
|
|
|
3,388
|
|
|
Revaluation of
investments on the
share of equity method investments
|
|
|
-
|
|
|
|
3,932
|
|
|
|
542
|
|
|
|
1,986
|
|
|
|
(15,214)
|
|
|
|
(2,098)
|
|
|
Tax effects on
non-GAAP
adjustments
|
|
|
(1,876)
|
|
|
|
(2,211)
|
|
|
|
(305)
|
|
|
|
(3,960)
|
|
|
|
(4,291)
|
|
|
|
(592)
|
|
|
Accretion to redeemable
non-
controlling interests
|
|
|
-
|
|
|
|
2,975
|
|
|
|
410
|
|
|
|
-
|
|
|
|
2,975
|
|
|
|
410
|
|
|
Non-GAAP net loss
attributable to
Yatsen's shareholders
|
|
|
(209,921)
|
|
|
|
(45,909)
|
|
|
|
(6,331)
|
|
|
|
(363,285)
|
|
|
|
(72,563)
|
|
|
|
(10,009)
|
|
|
Shares used in
calculating loss per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number
of Class A
and Class B ordinary shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
2,475,134,621
|
|
|
|
2,228,009,569
|
|
|
|
2,228,009,569
|
|
|
|
2,500,801,376
|
|
|
|
2,232,107,152
|
|
|
|
2,232,107,152
|
|
|
Diluted
|
|
|
2,475,134,621
|
|
|
|
2,228,009,569
|
|
|
|
2,228,009,569
|
|
|
|
2,500,801,376
|
|
|
|
2,232,107,152
|
|
|
|
2,232,107,152
|
|
|
Non-GAAP net loss
attributable to
ordinary shareholders per Class A
and Class B ordinary share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
(0.08)
|
|
|
|
(0.02)
|
|
|
|
(0.00)
|
|
|
|
(0.15)
|
|
|
|
(0.03)
|
|
|
|
(0.00)
|
|
|
Diluted
|
|
|
(0.08)
|
|
|
|
(0.02)
|
|
|
|
(0.00)
|
|
|
|
(0.15)
|
|
|
|
(0.03)
|
|
|
|
(0.00)
|
|
|
Non-GAAP net loss
attributable to
ordinary shareholders per ADS (4
ordinary shares equal to 1 ADS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
(0.34)
|
|
|
|
(0.08)
|
|
|
|
(0.01)
|
|
|
|
(0.58)
|
|
|
|
(0.13)
|
|
|
|
(0.02)
|
|
|
Diluted
|
|
|
(0.34)
|
|
|
|
(0.08)
|
|
|
|
(0.01)
|
|
|
|
(0.58)
|
|
|
|
(0.13)
|
|
|
|
(0.02)
|
|
View original
content:https://www.prnewswire.com/news-releases/yatsen-announces-second-quarter-2023-financial-results-301906495.html
SOURCE Yatsen Holding Limited
