THE WHAT? Yatsen Holding Limited, a leading China-based beauty group, has released its unaudited financial results for Q1 2024. The company reported a 1.0% increase in total net revenues to RMB773.4 million (US$107.1 million) from RMB765.4 million in the same period last year.
THE DETAILS Gross margin for the first quarter rose to 77.7%, up from 74.3% in the prior year, driven primarily by higher sales of high-margin products. However, total operating expenses surged by 31.7% to RMB758.7 million (US$105.1 million), largely due to increased investments in the Douyin platform and new product launches.
This expenditure resulted in a net loss of RMB124.9 million (US$17.3 million), compared to a net income of RMB50.7 million in Q1 2023. The non-GAAP net loss was RMB83.8 million (US$11.6 million), up from RMB25.8 million in the previous year.
THE WHY? Despite a slight increase in revenues and improved gross margins, Yatsen’s substantial investments in marketing and new product development led to significant net losses for the quarter. As the company continues to expand its product portfolio and strengthen its market position, it remains committed to balancing growth opportunities with cost optimization. The financial results highlight the challenges and strategic choices Yatsen faces in navigating the competitive beauty industry.
Clinical aesthetics products refer to a category of products used in the field of medical aesthetics or cosmetic dermatology. These products are typically designed and formulated to be used under the supervision of healthcare professionals, such as dermatologists, plastic surgeons, or trained aestheticians. They are distinct from over-the-counter cosmetics in that they often contain active ingredients or formulations that require expertise in their application or administration.
Examples of clinical aesthetics products include:
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Dermal Fillers: Injectable substances used to add volume, smooth wrinkles, and enhance facial contours. Examples include hyaluronic acid fillers like Juvederm and Restylane.
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Botulinum Toxin (Botox): Injectables that temporarily paralyze facial muscles to reduce the appearance of wrinkles caused by repetitive movements, such as frown lines and crow's feet.
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Chemical Peels: Solutions applied to the skin to exfoliate and improve its texture. They can treat acne, pigmentation issues, and signs of aging.
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Laser and Light Therapies: Devices that emit focused light or laser energy to treat various skin conditions, including acne, scars, and signs of aging.
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Prescription Skincare Products: Formulations containing active ingredients like retinoids (vitamin A derivatives), hydroquinone, or prescription-strength antioxidants to address specific skin concerns under medical supervision.
