Yatsen Announces First Quarter 2024 Financial Results
Conference Call to Be Held at
First Quarter 2024 Highlights
-
Total net revenues for the first quarter of 2024 increased by 1.0% to
RMB773.4 million (US$107.1 million ) fromRMB765.4 million for the prior year period. -
Total net revenues from Skincare Brands[1] for the first quarter of 2024 increased by 0.1% to
RMB245.3 million (US$34.0 million ) fromRMB245.1 million for the prior year period. As a percentage of total net revenues, total net revenues from Skincare Brands for the first quarter of 2024 were 31.7%, as compared with 32.0% for the prior year period. -
Gross margin for the first quarter of 2024 was 77.7%, as compared with 74.3% for the prior year period.
-
Net loss for the first quarter of 2024 was
RMB124.9 million (US$17.3 million ), as compared with net income ofRMB50.7 million for the prior year period. Non-GAAP net loss[2]for the first quarter of 2024 wasRMB83.8 million (US$11.6 million ), as compared withRMB25.8 million for the prior year period.
Mr.
Mr.
First Quarter 2024 Financial Results
Net Revenues
Total net revenues for the first quarter of 2024 increased by 1.0% to
Gross Profit and Gross Margin
Gross profit for the first quarter of 2024 increased by 5.7% to
Operating Expenses
Total operating expenses for the first quarter of 2024 increased by 31.7% to
-
Fulfillment Expenses.
Fulfillment expenses for the first quarter of 2024 were
RMB51.4 million (US$7.1 million ), as compared withRMB51.9 million for the prior year period. As a percentage of total net revenues, fulfillment expenses for the first quarter of 2024 decreased to 6.7% from 6.8% for the prior year period. -
Selling and Marketing Expenses.
Selling and marketing expenses for the first quarter of 2024 were
RMB539.2 million (US$74.7 million ), as compared withRMB459.0 million for the prior year period. As a percentage of total net revenues, selling and marketing expenses for the first quarter of 2024 increased to 69.7% from 60.0% for the prior year period. The increase was primarily due to increased investments in the Douyin platform, in line with the growing revenue contribution from Douyin, as well as the Company's investments in new product launches and building brand equity across its portfolio. -
General and Administrative Expenses.
General and administrative expenses for the first quarter of 2024 were
RMB140.1 million (US$19.4 million ), as compared withRMB40.7 million for the prior year period. As a percentage of total net revenues, general and administrative expenses for the first quarter of 2024 increased to 18.1% from 5.3% for the prior year period. The increase was primarily attributable to the exceptionally low general and administrative expenses recorded in the prior year period as a result of the reversal of recognized share-based compensation expenses ofRMB109.4 million due to the forfeiture of unvested awards granted to the Company's former chief technology officer upon his resignation. -
Research and Development Expenses.
Research and development expenses for the first quarter of 2024 were
RMB27.9 million (US$3.9 million ), as compared withRMB24.2 million for the prior year period. As a percentage of total net revenues, research and development expenses for the first quarter of 2024 increased to 3.6% from 3.2% for the prior year period. The increase was primarily attributable to higher personnel costs, reflecting the Company's commitment to enhancing its research and development capabilities.
Loss from Operations
Loss from operations for the first quarter of 2024 was
Non-GAAP loss from operations[4] for the first quarter of 2024 was
Net Loss/Income
Net loss for the first quarter of 2024 was
Non-GAAP net loss for the first quarter of 2024 was
Balance Sheet and Cash Flow
As of
Net cash used in operating activities for the first quarter of 2024 was
Business Outlook
For the second quarter of 2024, the Company expects its total net revenues to be between
Exchange Rate
This announcement contains translations of certain Renminbi ("RMB") amounts into
[1] Include net revenues from Galénic, [2] Non-GAAP net loss is a non-GAAP financial measure. Effective from the fourth quarter of 2023, 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, (iv) impairment of goodwill and (v) tax effects on non-GAAP adjustments. 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. Effective from the fourth quarter of 2023, non-GAAP loss from operations is defined as 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 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 twenty Class A ordinary shares, effective from [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 fourth 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) impairment of goodwill, (v) tax effects on non-GAAP adjustments and (vi) accretion to redeemable non-controlling interests. 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
|
+1-888-346-8982 |
International: |
+1-412-902-4272 |
Mainland |
400-120-1203 |
|
800-905-945 |
|
+852-3018-4992 |
Conference ID: |
6585471 |
The replay will be accessible through
United States: |
+1-877-344-7529 |
International: |
+1-412-317-0088 |
Replay Access Code: |
6585471 |
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
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
However, the non-GAAP financial measures have limitations as analytical tools as the non-GAAP financial measures are not presented in accordance with
Safe Harbor Statement
This announcement contains statements that may constitute "forward-looking" statements which are made pursuant to the "safe harbor" provisions of the
For investor and media inquiries, please contact:
In
Investor Relations
E-mail: ir@yatsenglobal.com
Tel: +86-10-6508-0677
E-mail: yatsen@thepiacentegroup.com
In
Tel: +1-212-481-2050
E-mail: yatsen@thepiacentegroup.com
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (All amounts in thousands, except for share, per share data or otherwise noted) |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|||
|
|
2023 |
|
|
2024 |
|
|
2024 |
|
|||
|
|
RMB'000 |
|
|
RMB'000 |
|
|
USD'000 |
|
|||
Assets |
|
|
|
|
|
|
|
|
|
|||
Current assets |
|
|
|
|
|
|
|
|
|
|||
Cash and cash equivalents |
|
|
836,888 |
|
|
|
1,298,618 |
|
|
|
179,857 |
|
Restricted Cash |
|
|
21,248 |
|
|
|
21,285 |
|
|
|
2,948 |
|
Short-term investments |
|
|
1,218,481 |
|
|
|
567,799 |
|
|
|
78,639 |
|
Accounts receivable, net |
|
|
198,851 |
|
|
|
178,463 |
|
|
|
24,717 |
|
Inventories, net |
|
|
352,090 |
|
|
|
349,546 |
|
|
|
48,412 |
|
Prepayments and other current assets |
|
|
303,841 |
|
|
|
349,589 |
|
|
|
48,418 |
|
Amounts due from related parties |
|
|
20,200 |
|
|
|
4,126 |
|
|
|
571 |
|
Total current assets |
|
|
2,951,599 |
|
|
|
2,769,426 |
|
|
|
383,562 |
|
Non-current assets |
|
|
|
|
|
|
|
|
|
|||
Investments |
|
|
618,752 |
|
|
|
623,672 |
|
|
|
86,378 |
|
Property and equipment, net |
|
|
64,878 |
|
|
|
58,399 |
|
|
|
8,088 |
|
|
|
|
556,567 |
|
|
|
554,798 |
|
|
|
76,839 |
|
Intangible assets, net |
|
|
671,396 |
|
|
|
649,758 |
|
|
|
89,990 |
|
Deferred tax assets |
|
|
1,375 |
|
|
|
1,369 |
|
|
|
190 |
|
Right-of-use assets, net |
|
|
114,348 |
|
|
|
95,732 |
|
|
|
13,259 |
|
Other non-current assets |
|
|
27,100 |
|
|
|
27,391 |
|
|
|
3,794 |
|
Total non-current assets |
|
|
2,054,416 |
|
|
|
2,011,119 |
|
|
|
278,538 |
|
Total assets |
|
|
5,006,015 |
|
|
|
4,780,545 |
|
|
|
662,100 |
|
Liabilities, redeemable non-controlling interests and shareholders' equity |
|
|
|
|
|
|
|
|
|
|||
Current liabilities |
|
|
|
|
|
|
|
|
|
|||
Accounts payable |
|
|
105,691 |
|
|
|
64,180 |
|
|
|
8,889 |
|
Advances from customers |
|
|
41,579 |
|
|
|
34,743 |
|
|
|
4,812 |
|
Accrued expenses and other liabilities |
|
|
391,217 |
|
|
|
377,372 |
|
|
|
52,265 |
|
Amounts due to related parties |
|
|
9,431 |
|
|
|
21,520 |
|
|
|
2,980 |
|
Income tax payables |
|
|
17,946 |
|
|
|
17,632 |
|
|
|
2,442 |
|
Lease liabilities due within one year |
|
|
45,464 |
|
|
|
33,562 |
|
|
|
4,648 |
|
Total current liabilities |
|
|
611,328 |
|
|
|
549,009 |
|
|
|
76,036 |
|
Non-current liabilities |
|
|
|
|
|
|
|
|
|
|||
Deferred tax liabilities |
|
|
111,591 |
|
|
|
108,523 |
|
|
|
15,030 |
|
Deferred income-non current |
|
|
30,556 |
|
|
|
26,616 |
|
|
|
3,686 |
|
Lease liabilities |
|
|
67,767 |
|
|
|
62,218 |
|
|
|
8,617 |
|
Total non-current liabilities |
|
|
209,914 |
|
|
|
197,357 |
|
|
|
27,333 |
|
Total liabilities |
|
|
821,242 |
|
|
|
746,366 |
|
|
|
103,369 |
|
Redeemable non-controlling interests |
|
|
51,466 |
|
|
|
51,466 |
|
|
|
7,128 |
|
Shareholders' equity |
|
|
|
|
|
|
|
|
|
|||
Ordinary Shares ( 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
2023 and
666,572,880 Class B ordinary shares issued as of
2023 and and 666,572,880 Class B ordinary shares outstanding as of
666,572,880 Class B ordinary shares outstanding as of 2024) |
|
|
173 |
|
|
|
173 |
|
|
|
24 |
|
|
|
|
(864,568) |
|
|
|
(887,205) |
|
|
|
(122,876) |
|
Additional paid-in capital |
|
|
12,260,208 |
|
|
|
12,254,541 |
|
|
|
1,697,234 |
|
Statutory reserve |
|
|
24,177 |
|
|
|
24,177 |
|
|
|
3,348 |
|
Accumulated deficit |
|
|
(7,345,153) |
|
|
|
(7,469,752) |
|
|
|
(1,034,549) |
|
Accumulated other comprehensive income |
|
|
60,200 |
|
|
|
62,777 |
|
|
|
8,699 |
|
|
|
|
4,135,037 |
|
|
|
3,984,711 |
|
|
|
551,880 |
|
Non-controlling interests |
|
|
(1,730) |
|
|
|
(1,998) |
|
|
|
(277) |
|
Total shareholders' equity |
|
|
4,133,307 |
|
|
|
3,982,713 |
|
|
|
551,603 |
|
Total liabilities, redeemable non-controlling interests and shareholders' equity |
|
|
5,006,015 |
|
|
|
4,780,545 |
|
|
|
662,100 |
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (All amounts in thousands, except for share, per share data or otherwise noted) |
|||||||||||||
|
|
For the Three Months Ended |
|
|
|||||||||
|
|
2023 |
|
|
2024 |
|
|
2024 |
|
|
|||
|
|
RMB'000 |
|
|
RMB'000 |
|
|
USD'000 |
|
|
|||
Total net revenues |
|
|
765,396 |
|
|
|
773,355 |
|
|
|
107,108 |
|
|
Total cost of revenues |
|
|
(196,667) |
|
|
|
(172,407) |
|
|
|
(23,878) |
|
|
Gross profit |
|
|
568,729 |
|
|
|
600,948 |
|
|
|
83,230 |
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|||
Fulfilment expenses |
|
|
(51,916) |
|
|
|
(51,448) |
|
|
|
(7,125) |
|
|
Selling and marketing expenses |
|
|
(459,048) |
|
|
|
(539,193) |
|
|
|
(74,677) |
|
|
General and administrative expenses |
|
|
(40,741) |
|
|
|
(140,099) |
|
|
|
(19,403) |
|
|
Research and development expenses |
|
|
(24,178) |
|
|
|
(27,926) |
|
|
|
(3,868) |
|
|
Total operating expenses |
|
|
(575,883) |
|
|
|
(758,666) |
|
|
|
(105,073) |
|
|
Loss from operations |
|
|
(7,154) |
|
|
|
(157,718) |
|
|
|
(21,843) |
|
|
Financial income |
|
|
26,988 |
|
|
|
28,612 |
|
|
|
3,963 |
|
|
Foreign currency exchange loss |
|
|
(5,549) |
|
|
|
(7,633) |
|
|
|
(1,057) |
|
|
Income from equity method investments, net |
|
|
19,060 |
|
|
|
3,276 |
|
|
|
454 |
|
|
Other income, net |
|
|
17,517 |
|
|
|
6,305 |
|
|
|
873 |
|
|
Income (loss) before income tax expenses |
|
|
50,862 |
|
|
|
(127,158) |
|
|
|
(17,610) |
|
|
Income tax (expenses) benefits |
|
|
(186) |
|
|
|
2,291 |
|
|
|
317 |
|
|
Net income (loss) |
|
|
50,676 |
|
|
|
(124,867) |
|
|
|
(17,293) |
|
|
Net (income) loss attributable to non-controlling interests and redeemable non-controlling interests |
|
|
(618) |
|
|
|
268 |
|
|
|
37 |
|
|
Net income (loss) attributable to |
|
|
50,058 |
|
|
|
(124,599) |
|
|
|
(17,256) |
|
|
Shares used in calculating loss per share (1): |
|
|
|
|
|
|
|
|
|
|
|||
Weighted average number of Class A and Class B ordinary shares: |
|
|
|
|
|
|
|
|
|
|
|||
Basic |
|
|
2,236,250,264 |
|
|
|
2,141,156,030 |
|
|
|
2,141,156,030 |
|
|
Diluted |
|
|
2,373,166,850 |
|
|
|
2,141,156,030 |
|
|
|
2,141,156,030 |
|
|
Net income (loss) per Class A and Class B ordinary share |
|
|
|
|
|
|
|
|
|
|
|||
Basic |
|
|
0.02 |
|
|
|
(0.06) |
|
|
|
(0.01) |
|
|
Diluted |
|
|
0.02 |
|
|
|
(0.06) |
|
|
|
(0.01) |
|
|
Net income (loss) per ADS (20 ordinary shares equal to 1 ADS) (2) |
|
|
|
|
|
|
|
|
|
|
|||
Basic |
|
|
0.45 |
|
|
|
(1.16) |
|
|
|
(0.16) |
|
|
Diluted |
|
|
0.42 |
|
|
|
(1.16) |
|
|
|
(0.16) |
|
|
|
|
For the Three Months Ended |
|
|
|||||||||
|
|
2023 |
|
|
2024 |
|
|
2024 |
|
|
|||
Share-based compensation expenses are included in the operating expenses as follows: |
|
RMB'000 |
|
|
RMB'000 |
|
|
USD'000 |
|
|
|||
Fulfilment expenses |
|
|
651 |
|
|
|
76 |
|
|
|
11 |
|
|
Selling and marketing expenses |
|
|
6,292 |
|
|
|
2,656 |
|
|
|
368 |
|
|
General and administrative expenses |
|
|
(76,320) |
|
|
|
31,627 |
|
|
|
4,380 |
|
|
Research and development expenses |
|
|
1,979 |
|
|
|
1,318 |
|
|
|
183 |
|
|
Total |
|
|
(67,398) |
|
|
|
35,677 |
|
|
|
4,942 |
|
|
(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.
(2) Effective from four ordinary shares to one ADS representing twenty ordinary shares. The historical and present income (loss) per ADS have been adjusted retroactively for all periods presented to reflect this change. |
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 |
|
|
|||||||||
|
|
2023 |
|
|
2024 |
|
|
2024 |
|
|
|||
|
|
RMB'000 |
|
|
RMB'000 |
|
|
USD'000 |
|
|
|||
Loss from operations |
|
|
(7,154) |
|
|
|
(157,718) |
|
|
|
(21,843) |
|
|
Share-based compensation expenses |
|
|
(67,398) |
|
|
|
35,677 |
|
|
|
4,942 |
|
|
Amortization of intangible assets resulting from assets and business acquisitions |
|
|
12,176 |
|
|
|
15,056 |
|
|
|
2,085 |
|
|
Non-GAAP loss from operations |
|
|
(62,376) |
|
|
|
(106,985) |
|
|
|
(14,816) |
|
|
Net income (loss) |
|
|
50,676 |
|
|
|
(124,867) |
|
|
|
(17,293) |
|
|
Share-based compensation expenses |
|
|
(67,398) |
|
|
|
35,677 |
|
|
|
4,942 |
|
|
Amortization of intangible assets resulting from assets and business acquisitions |
|
|
12,176 |
|
|
|
15,056 |
|
|
|
2,085 |
|
|
Revaluation of investments on the share of equity method investments |
|
|
(19,146) |
|
|
|
(7,039) |
|
|
|
(975) |
|
|
Tax effects on non-GAAP adjustments |
|
|
(2,080) |
|
|
|
(2,620) |
|
|
|
(363) |
|
|
Non-GAAP net loss |
|
|
(25,772) |
|
|
|
(83,793) |
|
|
|
(11,604) |
|
|
Net income (loss) attributable to |
|
|
50,058 |
|
|
|
(124,599) |
|
|
|
(17,256) |
|
|
Share-based compensation expenses |
|
|
(67,398) |
|
|
|
35,677 |
|
|
|
4,942 |
|
|
Amortization of intangible assets resulting from assets and business acquisitions |
|
|
11,912 |
|
|
|
14,782 |
|
|
|
2,047 |
|
|
Revaluation of investments on the share of equity method investments |
|
|
(19,146) |
|
|
|
(7,039) |
|
|
|
(975) |
|
|
Tax effects on non-GAAP adjustments |
|
|
(2,080) |
|
|
|
(2,620) |
|
|
|
(363) |
|
|
Non-GAAP net loss attributable to |
|
|
(26,654) |
|
|
|
(83,799) |
|
|
|
(11,605) |
|
|
Shares used in calculating loss per share: |
|
|
|
|
|
|
|
|
|
|
|||
Weighted average number of Class A and Class B ordinary shares: |
|
|
|
|
|
|
|
|
|
|
|||
Basic |
|
|
2,236,250,264 |
|
|
|
2,141,156,030 |
|
|
|
2,141,156,030 |
|
|
Diluted |
|
|
2,236,250,264 |
|
|
|
2,141,156,030 |
|
|
|
2,141,156,030 |
|
|
Non-GAAP net loss attributable to ordinary shareholders per Class A and Class B ordinary share |
|
|
|
|
|
|
|
|
|
|
|||
Basic |
|
|
(0.01) |
|
|
|
(0.04) |
|
|
|
(0.01) |
|
|
Diluted |
|
|
(0.01) |
|
|
|
(0.04) |
|
|
|
(0.01) |
|
|
Non-GAAP net loss attributable to ordinary shareholders per ADS (20 ordinary shares equal to 1 ADS) (1) |
|
|
|
|
|
|
|
|
|
|
|||
Basic |
|
|
(0.24) |
|
|
|
(0.78) |
|
|
|
(0.11) |
|
|
Diluted |
|
|
(0.24) |
|
|
|
(0.78) |
|
|
|
(0.11) |
|
|
(1) Effective from four ordinary shares to one ADS representing twenty ordinary shares. The historical and present income (loss) per ADS have been adjusted retroactively for all periods presented to reflect this change. |
View original content:https://www.prnewswire.com/news-releases/yatsen-announces-first-quarter-2024-financial-results-302152471.html
SOURCE