Slides
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Third Quarter 2025 Investor Presentation Yatsen Holding Limited
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Disclaimer This presentation has been prepared by Yatsen Holding Limited (the “Company”) solely for information purpose. By viewing or accessing the information contained in this material, you hereby acknowledge and agree that no representations, warranties or undertakings, express or implied, are made by the Company or anyof its directors, shareholders, employees, agents, affiliates, advisors or representatives as to, and no reliance should be placed upon, the accuracy, fairness, completeness or correctnessof the information or opinions presented or contained in this presentation. None of the Company or any of its directors, shareholders, employees, agents, affiliates, advisors or representatives accept any responsibility whatsoever (in negligence or otherwise) for any loss howsoever arising from any information presented or contained in this presentation or otherwise arising in connection with the presentation. The information presented or contained in this presentation is subject to change without notice and its accuracy is not guaranteed. This presentation does not constitute an offer to sell or issue or an invitation or recommendation to purchase or subscribe for any securities of the Company for sale in the United States or anywhere else. No securities of the Company may be sold in the United States without registration with the United States Securities and Exchange Commission (the “SEC”) or an exemption from such registration pursuant to the Securities Act of 1933, as amended (the “Securities Act”) and the rules and regulations thereunder. No part of this presentation shall form the basis of or be relied upon in connection with any contract or investment decision in relation to any securities or otherwise. This presentation does not contain all relevant information relating to the Company or its securities, particularly with respect to the risks and special considerations involved with an investment in the securities of the Company. Nothing contained in this presentation shall be relied upon as a promise or representation as to the past or future performance of the Company. Past performance does not guarantee or predict future performance. You acknowledge that any assessment of the Company that may be made by you will be independent of this presentation and that you will be solely responsible for your own assessment of the market and the market position of the Company and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the business of the Company. Certain statements in this presentation, and other statements that the Company may make, are forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. These statements reflect the Company’s intent, beliefs or current expectations about the future. These statements can be recognized by the use of words such as “expects,” “plans,” “will,” “estimates,” “projects,” “intends,” “anticipates,” “believes,” “confident” or words of similar meaning. These forward-looking statements are not guarantees of future performance and are based on a number of assumptions about the Company’s operations and other factors, many of which are beyond the Company’s control, and accordingly, actual results may differ materially from these forward-looking statements. The Company or any of its affiliates, advisers or representatives has no obligation and does not undertake to revise forward-looking statements to reflect future events or circumstances. This presentation also contains non-GAAP financial measures, the presentation of which is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). In addition, the Company’s calculation of these non-GAAP financial measures may be different from the calculation used by other companies, and therefore comparability may be limited. The reconciliation of those measures to the most comparable GAAP measures is contained within this document or available at the Company website http://ir.yatsenglobal.com/. 2
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Third Quarter 2025 Review
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Third Quarter 2025 Snapshot 4 Total Net Revenues RMB 998.4M +47.5% YoY GAAP Net Loss Margin 7.0% Gross Margin 78.2% +2.3 percentage points YoY Non-GAAP Net Loss Margin 5.2% Net Cash Used in Operating Activities RMB 126.8M Narrowed by 10.8 percentage points YoY Narrowed by 6.2 percentage points YoY
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Market Overview 5 Year-over-Year Changes1 2024Q1 2024Q2 2024Q3 2024Q4 2025Q1 2025Q2 4.7% 3.3% 1.7% -1.2% 2.7% -5.5% 3.8% -1.5% 4.6% 3.1% 5.4% 2.6% 2025Q3 6.2% 3.4% China Consumer Goods Retail Sales China Beauty Products2 Retail Sales Total retail sales of consumer goods grew by 3.4%… …lower than the 6.2% growth in beauty retail sales Notes: 1 Based on the adjusted data published by China National Bureau of Statistics (“CNBS”). 2 Beauty products include color cosmetics and skincare products.
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Key Financials at a Glance Strong Year-over-year Total Revenue Growth Significant Year-over- year Revenue Growth for Skincare Brands1 6 Net Revenues (RMB M) Net Revenues (RMB M) Narrowed Net Loss Margin GAAP Net Loss Margin (%) 2024Q3 2025Q3 -17.9% -7.0%267.9 490.8 2024Q3 2025Q3 +83.2% 677.0 998.4 2024Q3 2025Q3 +47.5% Improved Gross Margin Gross Margin (%) Note: 1 Include net revenues from Galé nic, DR.WU (its mainland China business), Eve Lom and other skincare brands of the Company. 2024Q3 2025Q3 75.9% 78.2%
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Robust Clinical and Premium Skincare Brands Performance Eve Lom at the China Wellness & Spa SummitDR.WU’s anniversary launch in the UK DR.WU unveiled its first anti-aging product, the PDRN Serum in the UK, the birthplace of skin renewal. +90.4% YoY for 2025Q3 in combined net revenues for Galé nic, DR.WU1, and Eve Lom Note: 1 DR.WU’s mainland China business Galé nicheld a global launch event for the No.3 VB Serum, completing the full layout of its “ABC” cellular-level skincare framework. 7 Eve Lom showcased its latest findings on emotional skincare at the China Wellness & Spa Summit, hosted by SpaChina. Galénic’s global launch event in France Mainland China Business
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Financial Review
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Revenue 9 (RMB M) The increase was primarily due to an 83.2% year-over-year increase in net revenues from Skincare Brands1, combined with a 25.2% year-over-year increase in net revenues from Color Cosmetics Brands2. +47.5% YoY Net Revenues 677.0 998.4 2024Q3 2025Q3 Notes: 1 Include Galé nic, DR.WU (its mainland China business), Eve Lom and other skincare brands of the Company. 2 Include Perfect Diary, Little Ondine, Pink Bear and other color cosmetics brands of the Company.
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Gross Margin 10 Gross Margin (As % of Total Net Revenues) 2024Q3 2025Q3 75.9% 78.2% +2.3 percentage points YoY Higher revenue contribution from higher-gross-margin products
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Operating Expenses 11 • Lower S&M expenses as a percentage of total net revenues as compared with the prior year period primarily due to the leveraging effect of higher total net revenues in the third quarter of 2025. • Lower G&A expenses as a percentage of total net revenues as compared with the prior year period primarily due to lower share-based compensation expenses, coupled with the leveraging effect of higher total net revenues in the third quarter of 2025. (As % of Total Net Revenues) Operating Expenses 3.7% 12.6% 73.0% 7.4% 2024Q3 4.0% 8.0% 68.3% 6.2% 2025Q3 96.8% 86.5% R&D exp G&A exp S&M exp Fulfillment exp
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12 Net Income (Loss) Margin Reconciliation of Non-GAAP Net Income (Loss)1 Reconciliation of Non-GAAP Net Income (Loss) Margin (RMB M) 2024Q3 2025Q3 Net Income (Loss) (121.1) (70.4) Share-based compensation expenses 27.0 12.5 Amortization of intangible assets resulting from assets and business acquisitions 15.8 10.5 Revaluation of investments on the share of equity method investments 3.3 (3.2) Tax effects on non-GAAP adjustments （1.6） (0.9) Non-GAAP Net Income (Loss) (76.6) (51.5) 2024Q3 2025Q3 Net Income (Loss) Margin (17.9%) (7.0%) Share-based compensation expenses 4.0% 1.2% Amortization of intangible assets resulting from assets and business acquisitions 2.3% 1.1% Revaluation of investments on the share of equity method investments 0.5% (0.3%) Tax effects on non-GAAP adjustments （0.2%） (0.1%) Non-GAAP Net Income (Loss) Margin (11.3%) （5.2%） Note: 1 Non-GAAP net income (loss) is a non-GAAP financial measure. Non-GAAP net income (loss) is defined 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 equitymethod investments, (iv) impairment of goodwill and (iv) tax effects on non-GAAP adjustments.
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Operating Cashflow 13 (RMB M) Cash, Restricted Cash and Short-term Investments1 RMB 1.16B -121.8 -148.2 -175.9 202.2 23.8 77.7 -126.8 1Q2024 2Q2024 3Q2024 4Q2024 1Q2025 2Q2025 3Q2025 Note: 1 As of September 30, 2025
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Inventory and Inventory Turnover Days1 14 350 422 438 386 383 392 480 1Q2024 2Q2024 3Q2024 4Q2024 1Q2025 2Q2025 3Q2025 146 167 196 194 180 171 180 Inventories, NetInventory Turnover Days (Number of Days) (RMB M) Note: 1 Inventory turnover days for a given quarter are calculated by dividing the average inventory balance at the beginning and theend of the quarter by the cost of goods sold for the past four quarters, then multiplying by 365 days.
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Thank You