Lin Zhang's questions to Yatsen Holding (YSG) leadership • Q2 2025
Question
Lin Zhang from CITIC Securities asked about the primary drivers for the rapid growth of skincare brands Calanique and Dr. Wu in the first half of the year and the outlook for the business. She also questioned which aspects the company would focus on to continuously improve profitability.
Answer
Irene Lyu, Head of M&A, Strategy & Capital Markets, attributed the skincare growth to sustained R&D investment and a strong new product pipeline, such as the VA serum and MicroMask series. She indicated the Q3 guidance reflects this positive trend. For profitability, she mentioned optimizing channel mix and streamlining expenses, expecting gradual improvement. CFO & Director Donghao Yang added that profitability will be enhanced by driving premiumization, improving marketing ROI, increasing supply chain efficiency, and gaining operating leverage from top-line growth.