Maggie Huang

Maggie Huang with CICC inquired about Yatsen's Double 11 Festival performance, competitive changes from foreign high-end brands, and the company's profitability expectations for the fourth quarter and the upcoming year.

Answer

Jinfeng Huang, Yatsen's CEO, stated that Double 11 performance was generally in line with expectations, with some brands exceeding. He noted strong momentum from newly launched products despite significant competition and deep price cuts from foreign high-end brands. Huang believes Yatsen's R&D-supported new products maintained strong momentum, and foreign brands' deep price cuts might hurt their long-term growth. He confirmed Yatsen's high-end brands are balancing promotions and new SKU focus, and Q4 profitability is on track with long-term goals.

Maggie Huang inquired about Yatsen's Double 11 Festival performance, competitive landscape with foreign high-end brands, and the company's profitability expectations for the fourth quarter and the upcoming year.

Answer

CEO Jinfeng Huang stated that Double 11 performance was generally in line with expectations, with some brands exceeding. He noted strong competition from foreign high-end brands using deep price cuts but highlighted Yatsen's R&D-backed new products gaining momentum. Huang also confirmed the company is on track for profitability in Q4, balancing growth with long-term goals.

Maggie Huang of CICC inquired about the profitability outlook for Yatsen's skincare and color cosmetic segments for the second half of 2025, the strategy for balancing new product promotion with profitability, and the competitive landscape, especially concerning foreign premium brands.

Answer

Donghao Yang, CFO & Director, explained that the company does not believe in sacrificing growth for profitability, especially as high-margin skincare brands are growing rapidly. He expressed confidence in achieving both. Regarding competition, he acknowledged its intensity but highlighted the company's R&D-driven strategy and significant investments in a best-in-class R&D infrastructure as the key to winning against industry players.

Maggie Huang of CICC inquired about the second-half profitability outlook for Yatsen's skincare and color cosmetic segments, the strategy for balancing new product promotion with profitability improvements, and the competitive landscape for Q3 and Q4, particularly concerning foreign premium brands.

Answer

Donghao Yang, CFO & Director, explained that Yatsen does not believe in sacrificing growth for profitability, especially as high-margin skincare brands are growing rapidly. He expressed confidence in achieving both goals simultaneously. To address intensifying competition, Yang highlighted the company's R&D-driven strategy and its best-in-class R&D infrastructure as key advantages against international players.

Maggie Huang of CICC inquired about the second-half profitability outlook for skincare and color cosmetics, the strategy for balancing new product promotion with profitability, and the competitive landscape for Q3 and Q4, particularly against foreign premium brands.

Answer

CFO Dong Hao Yang stated that the company aims to balance growth and profitability, noting that the faster growth of high-margin skincare brands supports this goal. He emphasized that Yat sen's R&D-driven strategy, supported by significant investments and a world-class R&D center, is key to competing effectively against international players.

Maggie Huang from CICC asked about the company's promotional plans for new Perfect Diary foundation and Galénic anti-aging products, and also inquired about the performance of the June 18 shopping festival to date.

Answer

Irene Lyu (Executive) stated that Yatsen's strategy relies on product innovation and efficacy driven by R&D and consumer insights. After receiving more positive consumer feedback on the new products, the company will expand distribution to build them into hero products. CFO Donghao Yang added that while it was still early, the June 18 shopping festival performance was in line with the company's expectations.