Full Year 2023 Yatsen Holding Ltd Earnings Call
Operator: Ladies and gentlemen, good day and welcome to the Yatsen fourth quarter and full year 2023 earnings conference call. Today's conference is being recorded. At this time, I would like to turn the conference over to Irene Lyu, Vice President, Head of Strategic Investment and Capital Markets. Please go ahead.
Ladies and gentlemen, good day and welcome to the Yadkin fourth quarter and full year 2023 earnings conference call.
Today's conference is being recorded.
At this time I would like to turn the conference over to Irene <unk>, Vice President head of strategic investment and capital markets. Please go ahead.
Irene Lyu: Thank you, Operator. Please note that the session today will contain four forward-looking statements relating to the company's future performance and are intended to qualify for the safe harbor from liability as established by the U.S. Private Security Litigation Reform Act. Such statements are not guaranteed for future performance and are subject to certain risks and uncertainties, assumptions, and other factors. Some of these risks are beyond the company's control and could cause actual results to differ materially from those mentioned in today's press release and this discussion. A general discussion of the risk factors that could affect Yatsen's business and financial results is included in certain filings of the company with the Securities and Exchange Commission. The company does not undertake any obligation to update this full booking information, except as required by law.
Thank you operator. Please note the discussion today will contain forward looking statements relating to the company's future performance and are intended to qualify for the safe Harbor from liability.
Tablets by the U S Private Securities Litigation Reform Act.
Such statements are not guarantees of future performance and are subject to certain risks and uncertainties assumptions and other factors.
Some of these risks are beyond the couple of control could cause actual results to differ materially from those mentioned in today's press release and this discussion a general discussion of the risk factors that could affect Yahoo.
Financial result, that's included instead for filing.
So what's the securities and exchange.
The company does not undertake any obligations to update the fault blocks or information, except as required by law even.
Irene Lyu: During today's call, management will also discuss certain non-GAAP financial measures for comparison purposes only. Please see the earnings release issued earlier today for a definition of non-GAAP financial measures and a reconciliation of non-GAAP financial results. Joining us today on the call from Yatsen Senior Management are Mr. Jinfeng Huang, our Founder, Chairman, and CEO, and Mr. Donghao Yang, our CFO and Director. Management will begin with prepared remarks, and the call will conclude with a Q&A session.
Today's call management will also discuss certain non-GAAP financial measures for comparison purposes.
Please see the earnings release issued earlier today or is that an issue of non-GAAP financial measures and a reconciliation of GAAP non-GAAP financial results.
Well yesterday on the call from Yasser Senior management are in this Thursday football, if our founder chairman and CEO and Mr. Don Young our CFO and director management will begin with prepared remarks, and the call will conclude with a Q&A session.
Jinfeng Huang: As a reminder, this conference call is being recorded. In addition, a webcast replay of this conference call will be available on Yatsen's investor relations website at ir.yatsenglobal.com. I'll now turn the call over to Mr. Jinfeng Huang. Please go ahead.
Reminder, this conference just won't recorded in addition, a webcast replay of this conference call will be available yes.
That's their relation website at Phi are so yeah from global backhaul.
I'll now turn the call over to Mr. King for fall before has there.
Jinfeng Huang: Thank you, Irene, and thank you everyone for participating in Yatsen's fourth quarter and full year 2023 Earnings Conference call today. I would like to begin with a macro overview before delving into the details of our strategy and progress across our segments and brands. China's beauty market experienced a modest recovery in 2020.
Thank you Laurie and thank you everyone for participating in <unk> fourth quarter and full year and it's only three earnings conference call today.
I'd like to begin with a macro overview before delving into the details of our strategy and progress across our second one in Nebraska.
China's beauty market experienced a modest recovery in 2023.
Jinfeng Huang: According to the adjusted data published by the National Bureau of Statistics of China, total retail sales of consumer goods grew by 8.3% year-over-year for the fourth quarter and 7.2% for the full year. Against this bad job, total beauty retail sales were up 1% year-over-year for the fourth quarter and 5.1% for the full year. Unlike Beauty Cells, patents were missed in 2023.
According to the data published by the National Bureau of Statistics of China.
Total retail sales of consumer goods grew by eight 3% year over year for the fourth quarter.
And the seven 2% for the full year.
Against this backdrop.
Beauty retail sales were up 1% year over year for the fourth quarter and a five 1% for the full year.
On light duty yourself patents for me in 2023.
Jinfeng Huang: Sales on T-more decreased while sales on Douyin increased year over year for both the fourth quarter and the full year. We made solid progress this quarter amid a still-soft retail environment, returning to a growth trajectory as we executed our strategy transformation plan. Pervy Diary's brand repositioning is also proceeding as intended.
South on T more decrease while itself, although he increase year over year for both the fourth quarter and the full year.
We made solid progress this quarter amidst a still soft retail environment.
Returning to a growth chart.
Tried to cacciatore at.
We executed our strategy transformation plan.
Put me diaries rents were positioning is also proceeding.
Intended.
Jinfeng Huang: To pave the way for future growth, we remain focused on building strong brand equity through superior products and consumer satisfaction, while continuing investment in brand building and R&D. Our total net revenue for the quarter beats our guidance, up 6.7% year-over-year, and net revenues from our skincare brand for the fourth quarter group by 17.6% year-over-year. Our clinical and premium skincare brands, including DLANIC, Dr. Wu, and Yif Long, delivered another solid performance, recording a 23.4% year-over-year growth in combined net revenue and further elevating their contribution to total net revenue. However, net revenues from color cosmetic brands declined slightly by 1.8% year-over-year for the fourth quarter. In terms of channel optimization, we continue to strategically close underperforming offline sources. As of the end of 2023, we operated 110 offline experience stores for the Perfect Diary brand, as compared with 150 A-stores a year.
The paved the way for future growth, we remain focused on building strong brand equity there was the pure product and the consumer satisfaction.
I'll continue.
Investments in brand building in R&D.
Our total net revenue for the fourth.
For the quarter beat our guidance.
Six 7% year over year.
Net revenue from our skin care brands.
For the fourth quarter grew by 17, 6% year over year.
Our clinical and the premium skincare brands.
Including Clinique, both of <unk> and.
And if long.
Levered another solid performance.
Recording are tended to three 4% year over year growth in combined net revenues and a further elevating.
<unk> contribution to total net revenues.
Net revenues from Kolokoff Madden brand declined slightly by one 8% year over year for the fourth quarter.
In terms of a channel optimization, we continue to try to.
Close underperforming offline force.
That's at the end of 'twenty to 'twenty three we operate that's why I'm doing it offline experience stores.
Sorry, Brett.
Paired with 158, four a year ago.
Jinfeng Huang: Our two other color cosmetic brands, Little Ondine and PinBear, continued to resonate with their customers and recorded year-over-year revenue growth. Our fourth quarter growth margin improved to 73.7% from 71.1% for the prior year period, benefiting from higher growth margin products and a more disciplined pricing and discount policy. Our net loose margin expanded to 46.1% for the fourth quarter, primarily attributable to an impairment of goodwill, as well as increased investment in our brand. The goodwill impairment recorded in the fourth quarter represents the amount by which the carrying value of the Yip Long reporting unit exceeded its fair value, based on a quantitative goodwill impairment test, yielding weaker operating results than expected at the time of acquisition.
Our two other color cosmetic brands at the wrong thing and Athene Behr continued to rapidly is there are customers and recorded year over year revenue growth.
Our fourth quarter gross margin improved to 17th Street, one 7% from 17, 111% for the prior year period.
Benefiting from higher gross margin products, and a more disciplined pricing and discount policy.
Our net and gross margin expanded to 46, 1% for the fourth quarter, primarily attributable to an impairment of goodwill.
Well as increased investments in our brands.
The goodwill impairment recorded in the fourth quarter represents the amount by which the carrying value of the heap long reporting unit exceeded its fair value.
Based on quantitative.
Paramount test.
It was a weaker operating results. Thanks, Pat it at the time of acquisition.
Jinfeng Huang: Despite challenges in the market environment and ongoing competition, we still see potential in the brand. For the full year 2023, our net loss margin was 22% as compared with 22.2% in 2022; our non-gap net loss margin narrowed to 8.7% from 12.2% for the prior year period, a significant improvement that underscores our skills in balancing cost-structure optimization with the need to grab market opportunities as we drive sustainable growth. Moving on to the brands and products. For our skincare brands, we maintained our focus on brand building and introduced official products to foster deeper connections with each brand's audience. Galanick recorded a solid performance during the Double 11 Shopping Festival, ranking No.
Despite challenges in the market environment and ongoing competition, we still see potential in the breath for the full year 2023, net loss margin worse tended to put that as compared with 22, 2% in 2022.
non-GAAP net lose margin narrowed to 287% from 12, 2% for the prior year period.
I was thinking maybe kind of improvement that underscores our suite our skills in balancing cost structure optimization with the need to go up market opportunities as we drive sustainable growth.
Moving onto the brands and apologize for all skincare brands, we maintained our focus on brand building and introduce.
Effete fishers product to bolster deeper connections with each brand's audience.
Well I need recorded solid performance during the whole 11 shopping festival ranking number one in the <unk>.
Jinfeng Huang: 1 in the Premium Brightening Serum category in terms of retail sales value for both Timor and Douyin with his HealVC serum. The brand is also making progress on its Couture line, winning the Essence of the Year Award at the Bazaar Beauty Awards in 2023 for its Couture Secret Essence Active Serum. Bucklewood Acne Research Fund announced its first batch of pioneering research projects at the 2023 National Congress of Cosmetic Dermatology in Shanghai. Ndopo Wu continues to push boundaries in clinical acne research and the application of magnetic acid, propelling the fields of long-term development.
Brightening theory category in terms of retail sales value on both T mall and a bogey with you he always eat start.
So Brian is also making progress on these culturally aligned we need the essence of the year Award at the Bylaw Beauty Awards Huntington is free.
<unk> four it's called Tuesday create after an active therapy.
Coupled with Acme research phone announced its first batch of pioneering research projects at the tiny tiny three national Congress of cosmetics, some apology in Shanghai.
We'll continue to push boundaries in clinical Acme research and the application of our magnetic ace it.
Propelling the fields of a long term development.
Jinfeng Huang: Also, Yif Long opened its first offline store in southern China in January this year, bringing the brand's tactile experience to a broader customer base. Why with respect to color cosmetics? Puppet Diaries' brand repositioning continues to gain traction among its target customers. Biolip Essence Lipstick, the new hero product we launched in September 2023, has been gaining market share in the lipstick category on both Tmall and Douyin. During the hotel stay, the newly launched lipstick made Purdy Diary the No.
Also you floor opens its first offline thought in southern China in January this year, bringing the brands.
Tactile experience to a broader customer base.
Why was that with respect to telecom frenetic.
Hum Barry's brand repositioning continues to gain traction among its customers.
Finally, essent lipstick the gnocchi recall that we launched in September 2023 has been gaining market share in the lipstick category on both T mall and a bogey.
There is a hotel the newly launched the lipstick made the pivot Barry the number one with deep red in terms of retail sales value although we.
Jinfeng Huang: 1 lipstick brand in terms of retail sales value on Douyin. Given this product line's potential, we expanded the series to include BioLip Essence Lip Stain in 2023 and BioLip Essence Matte Lipstick in February 2024, enriching offerings for customers to experience its advanced formulation. Premier Diary also recently launched its multi-peptide-essence tone-up cream, the brand's very first product, integrating the wrinkle-reducing cream with the makeup primer and the natural foundation. First, Little Ondine and Pin Bear introduced new products during the quarter. Little Ondine's Little Wide Eyeliner Pen won the Eye Color Award in the Color Cosmetic Category at the Vogue Beauty Awards 2020.
Given this part of the line potential we expanded the theory.
It has to include the Violet essence lip thing intended to any three anabolic essence matte lipstick in February 10% before reaching offering for customers who experienced its advanced formulations.
I mean are you also recently launched its multiyear peptide axon pulled out free.
The very first part of that integrating the winco, reducing cream with a makeup climber and a natural foundation.
Firstly for one day and the team there introduce new products during the quarter, they don't own the lethal wide I lined pants, Wanda I call. It a war in the color cosmetic category at a bulk of beauty Awards 73.
Jinfeng Huang: Willow Queen Bears, Furry Dream, and Eyeshadow brought home the Sea Beauty Awards Color Development Award. Moving now to R&D, R&D expenses as a percentage of revenues were 3.4% for the fourth quarter and 3.3% for the full year 2023. Over the past year, we have significantly enhanced our R&D capabilities under the leadership of our chief scientific officer, establishing a comprehensive R&D framework and a clear strategy direction. The R&D team has developed iconic products, including Perfect Iris Biolip Essence Lipstick and Galanix Vivifiant Invigorating Micro Mask.
Wildly embarrassed very Jean.
Hi Shadow.
That's the beauty of Wars call a development award.
[noise] moving now to the R&D R&D expenses as a percentage of revenue were three 4% for the fourth quarter and a three 3% for the full year 2023.
Over the past year, we have significantly enhanced our R&D capabilities.
The leadership of our Chief Scientific Pi Scientific Officer Istar.
Establishing a comprehensive R&D framework and a clear strategy direction.
The R&D team has developed this iconic products, including appropriate bodies Lipsey excellence.
Athens, Lipstick and clinics are leaving fan invigorating micro market.
Jinfeng Huang: We also strengthened our R&D infrastructure by setting up our Shanghai R&D center. Along with these efforts, we promoted innovation through industry-academia collaboration, including the LEAD Initiative and such initiatives such as Dr. Wu's Acne Research Fund and the Scalanic Dermatology Research Fund. Going forward, we remain committed to R&D investment to drive innovation and growth. So before I conclude, a brief update on our 2023 ESG performance. Yatsen's dedication to environmental and social responsibility and employee welfare is integral to our brand and future development. We published our second ESG report in 2023, highlighting our alignment with prevailing green development initiatives.
We also strengthened our R&D infrastructure by setting up our Shanghai R&D Center.
Along with this effort, we promoted innovations through industry Academia collaboration Inc.
Including leading initiative.
But oh initiative, such as Buckhead with Acme Research farm and.
Got out and they cause some oncology research fall going forward, we remain committed to R&D investments to drive innovation and growth.
So before I conclude a brief update on our 2023 ESG performance yeah.
That dedication to environmental and social responsibility and employee welfare is integral to our brand.
You develop on them.
We published our second yesterday report intelligently three highlighting our alignment with prevailing Greens development initiatives.
Jinfeng Huang: Furthermore, we were honored to be recognized at the China 2023 DEI Employer Awards for our deep commitment to inclusion and employee well-being. To summarise, we are pleased with our return to growth in the fourth quarter, and we will remain focused on pursuing sustainable growth with innovation across our brands. With that, I will now turn the call over to our CFO, Donghao Yang, to discuss our financial performance. Thank you, everyone. Thank you for watching!
Furthermore, we were honored to be recognized at a tiny tiny tiny three D. I employer award for our deep commitment to inclusion and employee welfare.
To summarize we are pleased with our return to growth in the fourth quarter and then we will remain focused on pursuing sustainable growth with innovation across all Brett.
I would now turn the call over to our CFO.
To discuss our financial performance. Thank you everyone.
[noise], Thank you, David and Hello, everyone.
Donghao Yang: Thank you David and hello everyone. Before I get started, I would like to clarify that all financial numbers presented today are in RMB amounts, and all percentage changes refer to year-over-year changes unless otherwise noted. Total Net Revenues for the fourth quarter of 2020 increased by 6.7 percent to 1.07 billion RMB from 1.01 billion for the prior period. The increase was mainly attributable to a 17.6 percent year-over-year increase in net revenues from skin care brands partly offset by 1.8% year-over-year decrease in net revenues from color cosmetics brands. Gross profits for the fourth quarter of 2023 increased by 10.6% to $790.1 million from $700 for the prior year period. Growth margin for the fourth quarter of 2023 increased to 73.7% from 71.1% for the prior year period.
Before I get started I would like to clarify that all financial numbers presented today are in renminbi amounts and all percentage changes refer to year over year changes unless otherwise noted.
Total net revenues for the fourth quarter of 2000.
23 increased by six 7% to 1.07 billion to RMB 1.01 billion for the prior year period. The increase was primarily attributable to a 17, 6% year over year increase.
Net revenues from skincare brands, partially offset by 1.8% year over year decrease in net revenues from color cosmetics.
Gross profit for the fourth quarter of 2023 increased by 10, 6% to.
$719 one.
1 million from several hundred and.
$14 6 million for the prior year period gross margin for the fourth quarter of two.
Plenty of free.
<unk>, 273.7% from 71.1% for the prior year period.
Donghao Yang: The increase was driven by increasing sales of higher gross margin products and more disciplined pricing and discount policies across all of our brand portfolios. Total operating expenses for the fourth quarter of 2023 increased by 67.7% to $1.2 billion. $33 billion RMB from $792.9 million for the prior year period. As a percentage of total net revenues, total operating expenses for the fourth quarter of 2023 were 124%, as compared with 78.9% for the prior year period. The fulfillment expenses for the fourth quarter of 2023 were 62.7 million RMB as compared with 62.5 million for the prior year period. As a percentage of total net revenues, fulfillment expenses for the fourth quarter of 2023 decreased to 5.8% from 6.2% for the prior year period. The decrease was primarily attributable to further improvements in logistics efficiency.
The increase was driven by increasing sales of higher gross margin products and more disciplined pricing and discount policies across all of our friends portfolio.
Total operating expenses for the fourth quarter of 2023 increased by 67, 7%.
At one point.
Our 33 billion RMB from $792 9 million for the prior year period.
As a percentage of total net revenue total operating expenses for the fourth quarter of 2023 were 124% as compared with 78, 9% for the prior year period fulfillment expenses for the fourth quarter of 2023 or 62.
Point 7 million RMB as compared with $62 5 million for the prior year period.
The percentage of total net revenues fulfillment expenses for the fourth quarter of 2023 decreased to 5.8% from six 2% for the prior year period.
The decrease was primarily attributable for further improvements and logistics efficiency.
Donghao Yang: Selling and marketing expenses for the fourth quarter of 2023 were $717.4 million, as compared with $535.2 million for the prior period. As a percentage of total net revenue, selling and marketing expenses for the fourth quarter of 2023 increased to 66.9% from 53.2% for the prior period. The increase was primarily due to the Perfect Diary brand upgrade, as well as our investment in new product launches across our brands. General and administrative expenses for the fourth quarter of 2023 were $158.7 million as compared with $169.9 million for the prior year period, as a percentage of total net revenue. General and administrative expenses for the fourth quarter of 2023 decreased to 14.8% from 16.9% for the prior year period. The decrease is primarily attributable to a reduction in share-based compensation.
Selling and marketing expenses for the fourth quarter of 2003 with $117 4 million as compared with $535 2 million for the prior year period.
As a percentage of total net revenues selling and marketing expenses for the fourth quarter of 2023 increased to 66.9% from 553, 2% for the prior year period.
The increase was primarily due to the perfect salary brand upgrades as well as our investment in new product launches across all frac sand.
Hello, and administrative expenses for the fourth quarter of 2023 for $158 7 million as compared with $169 9 million for the prior year period.
The percentage of total net revenues.
General and administrative expenses for the fourth quarter of 2023 decreased to 14.8% from 16.9% for the prior year period.
It creates uncertainty primarily attributable to a reduction in share based compensation.
Donghao Yang: The research and development expenses for the fourth quarter of 2023 were $36.9 million, as compared with $25.1 million for the prior year period. The percentage of total net revenues, research and development expenses for the fourth quarter of 2023 increased to 3.4% from 2.5% for the prior year period. The increase was primarily attributable to an increase in personnel costs, reflecting our commitment to enhancing our research and development capabilities.
Research and development expenses.
The fourth quarter of 2023.
$36 9 million as compared with 25.1 million for the prior year period.
And you can find it in total net revenues.
Work and development expenses for the fourth quarter of 'twenty two.
1023 increase to three 4% from two 5% for the prior year period.
This was primarily attributable to an increase in personnel costs, reflecting our commitment.
Our research and development capabilities.
Donghao Yang: The impairment of goodwill for the fourth quarter of 2023 was 364 million RMB as compared with nil in the prior year period. The impairment reported in this quarter represents the amount by which the carrying value of the Yib-Long reporting unit exceeded its fair value based on quantitative goodwill impairment tests, primarily due to weaker operating results than expected at the time of acquisition. Loss from operations to the fourth quarter of 2023 was 539.6 million RMB as compared with 78.2 million for the prior year period; the operating loss margin was 50.3% as compared with 7.8% for the prior year period. Non-gap loss from operations for the fourth quarter of 2023 was $125.9 million as compared with non-gap income from operations of $11.5 million for the prior year period; non-GAAP operating loss margin was 11.7% as compared with non-GAAP operating income margin of 1.1% for the prior year period; net loss for the fourth quarter of 2023 was 494.5 million RMB as compared with 55 million for the prior year period.
Payment of goodwill for the fourth quarter of 2023 was 364 million RMB as compared with nil in the prior year period impairment reported in this quarter.
The amount by which the carrying value that you've law reporting unit exceeded its fair value based on quantitative.
Goodwill impairment test, primarily due to weaker operating result than expected at the time of acquisition.
Loss from operations for the fourth quarter of 2023, with $579 6 million RMB as compared with $78 2 million for the prior year period.
Operating loss margin was 53.
Super.
Compared with seven 8% for the prior year period.
non-GAAP loss from operations.
Fourth quarter of 2023, with $125 9 million as compared with non-GAAP income from operations of <unk>.
Seven 5 million for the prior year period, non-GAAP operating loss margin was 11, 7%.
Paired with non-GAAP operating income margin of one 1% for the prior year period.
Net loss for the fourth quarter of 2023 was $494 5 million RMB as compared with $65 million for the prior year period.
Donghao Yang: The net loss margin was 46.1% as compared with 5.5% for the prior year period. Net loss attributable to Yatsen Hldg for diluted EDS for Q4 of 2023 was 0.91 RMB as compared with 0.09 for the prior year period. Non-GAAP net loss for the fourth quarter of 2023 was 93.7 million RMB as compared with non-GAAP net income of 34.7 million for the tri-year The Non-GAAP Net Loss Margin was 8.7%, as compared with a non-GAAP net income margin of 3.4% for the prior year period.
Net loss margin was 46, 1% as compared with 5.5% for the prior year period.
Net loss attributable to.
Ordinary shareholders per diluted EPS for the fourth quarter of 2023 was zero point.
One RMB as compared with four points or nine for the prior year period.
non-GAAP net loss for the fourth quarter of 2023 was $93 7 million RMB as compared with non-GAAP net income of $34 7 million for the prior year period.
non-GAAP net loss margin was eight 7% as compared with non-GAAP net income margin of three 4%.
Prior year period.
Donghao Yang: Non-GAAP net loss attributable to Yatsen Hldg. What is in their shareholders for diluted ADS for the 4th quarter of 2023 was 0.17 RMB as compared with non-GEP net income attributable to Yatsen Hldg's diluted ABS of 0.06 RMB for the prior year period. Now I'd like to briefly walk you through the highlights of our full year results. Total net revenues for the full year of 2023 decreased by 7.9% to $3.5 billion. For 1 billion RMB from 3.71 billion RMB for the prior period, primarily attributable to the decline in net revenues from color cosmetic brands partially offset by the increase in net revenues from skincare brands, gross profit for the full year of 2023 decreased by 0.2% to 2.51 billion RMB from 2.52 billion RMB for the prior period. Gross margin for the full year of 2023 was 73.6%, as compared with 68% for the prior period.
GAAP net loss attributable to yesterday.
What are their shareholders per diluted ads for the fourth quarter of 2023 was 0.17 RMB as compared with non-GAAP net income.
Pivotal to.
Shareholder diluted yes.
There are six vehicles the prior year period.
Now I'd like to briefly walk you through the highlights of our full year results.
Total net revenues for the full year of 2023.
579%.
Three points.
For one the only in RMB.
Seven 1 billion for the prior year period, primarily attributable to the decline in net revenue some color cosmetic brands, partially offset by the increase in net revenues some skin care brand.
Gross profit for the full year of 2023 decreased by zero point Super fast.
In fact 1 billion RMB from five five.
<unk> 2 billion for the prior year period.
Gross margin for the full year of 2023 was 43, 6% as compared with 68%.
For the prior year period.
Donghao Yang: The increase was primarily attributable, first, to increasing sales of higher gross margin products from skin care brands and, second, to more disciplined pricing and discount policies. And third, cost optimization across all of our brand portfolios, lost from operations for the full year of 2023 with 913.4 million as compared with 928.9 million for the prior year period; non-GAAP loss from operations for the full year of 2023 was $427.5 million as compared with $539.3 million for the prior year period; net loss for the full year of 2023 was $750.2 million, as compared with $821.3 million for None gap net loss for the full year of 2023 was $296.1 million as compared with $462.9 million for the prior year period. None gap net loss attributable to Yatsen's ordinary shareholders for diluted ADS for the full year of 2023 was 0.53 RMB as compared with 0.76.
This was primarily attributable to first increasing sales of higher gross margin products from skincare brand in fact.
And more disciplined pricing and to some policies in first half cost optimization across all of our brand portfolio.
Loss from operations for the full year of 2023 with $913 4 million as compared with $928 9 million for the prior year period non-GAAP loss from operations for the full year of 2023 with $427 5 million as compared with.
$539 3 million for the prior year period.
Net loss for the full year of 2023 with 762 million.
First with $821 3 million for the prior year period net loss attributable to <unk>.
Shareholders per diluted ads for the full year of 2023, whereas 1.36, RMB as compared with 1.37 for the prior year period.
non-GAAP net loss for the full year of two.
2023 was 291 million as compared with 462.9 million for the prior year period.
non-GAAP net loss attributable to yachts and supporting their shareholders per diluted ads for the full year of 2023 was 0.53 RMB as compared with 0.76 RMB for the prior year period.
Donghao Yang: RMB for this prior period. As of December 31, 2023, the company had cash, restricted cash, and short-term investment of 2.08 billion RMB as compared with 2.63 billion RMB as of December 31, 2022. Net cash generated from operating activities for the fourth quarter of 2023 was $90.5 million as compared with net cash generated from operating activities of 106.5 million RMB for the prior period. Net cash used in operating activities for the full year of 2023 was 107.4 million RMB as compared with net cash generated from operating activities of 136.2 million for the prior year period.
As of December 31st 2023, the company had hat with 50 cats.
Nothing.
Two points there.
Billion RMB as compared with 2.63 billion RMB as of December 31, 2022.
Net cash generated from operating activities for the fourth quarter of 2023 with 90.5 million as compared with net cash generated from operating activities of longer and $6 6 million RMB.
Yes.
The prior year period.
Net cash used in operating activities for the full year of 2023 with Wanda.
And $7 4 million RMB as compared with net cash generated from operating activities of $136 2 million for the prior year period.
Operator: Looking at our business outlook for the first quarter of 2024, we expect our total net revenues to be between 765.4 million and 803.7 million RMB, representing a year-over-year increase of approximately 0% to 5%. These forecasts reflect our current and preliminary views on the market and operational conditions, which are subject to change. With that, I would like to open the call to Q&A. We will now begin the question and answer session. To ask a question, you may press star, then 1 on your touchtone phone. If you are using a speakerphone, please pick up your handset before pressing the button.
Looking at our business outlook for the first quarter of 2024, we expect our total net revenues to be between $765 4 million.
And 800.
$3 7 million RMB, representing year over year increase of approximately zero percent two 5% leased.
These forecasts reflect our current and preliminary views on the market and operational conditions, which are subject to change.
That I would like to open the call for Q&A.
We will now begin the question and answer session.
To ask a question you May Press Star then one on your Touchtone phone.
If youre using a speakerphone please pick up your handset before pressing.
Operator: If at any time your question has been addressed and you would like to withdraw your question, please press star then, for the benefit of all participants on today's call. If you wish to ask your question to management in Chinese, please immediately repeat your question in English.
If at any time. Your question has been addressed and you would like to withdraw your question. Please press Star then two.
So the benefit of all participants on today's call.
If you wish to ask a few questions to management in Chinese. Please immediately repeat your question in English.
Operator: At this time, we will pause momentarily to assemble our round table. The first question today comes from Maggie Huang. Please go ahead. Well, thanks for taking my question. This is Maggie Huang from CICC.
At this time, we will pause momentarily to assemble our roster.
Okay.
Okay.
Okay.
The first question today comes from Maggie Huang.
Please go ahead.
Yeah.
Well thanks for taking my question does this make you Kwon from CRT D. C. Firstly congratulation on our revenue returning to growth and beating our guidance and I have two questions. The first one is regarding perfect diarrhea, and we have got to see the great performance of our new products like accident Lipstick in Q4, and so far this year and do you have.
Jinfeng Huang: Firstly, congratulations on our revenue returning to growth and meeting our guidance. And I have two questions. The first one is regarding Perfect Diary. We are glad to see the great performance of our new products, like Essence Lipstick, in Q4. So for this year, do you have a target revenue contribution from the new products, and what should we expect in terms of revenue growth and net margin for the brand Perfect Diary? That's my first question.
Package revenue contribution from the new product and how should we expect on the revenue growth and net margin after Glenn perfect Kylie and that's my first question and my second question is regarding rebates day shopping festival. So how is the performance of our bank. So Fox and is that in line with our expectations.
Jinfeng Huang: And my second question is regarding the Women's Day Shopping Festival. So how is the performance of our brand so far, and is that in line with our expectations? That's my question.
And that's my question. Thank you.
Donghao Yang: Thank you. Thank you, Maggie. For your first question on the performance on Perfect Diary, since our launch of the Biolip Atlas Lipstick, its performance has been trending upward. So, for example, last year, December, the new lipstick was ranking number two on both Tmall and Douyin, so it's performing well. In terms of new product contribution to the brand, last quarter, so the fourth quarter of 2023, a little below 40%, and we believe this year it will turn up to about 50%. So that's for the new product. And you also asked for margins.
Yeah.
Thank you Matt.
First question on the performance held perfect sorry, since our launch of the final list assets lets say its performance has been trending up.
So for example last year in December.
The new let's say rental number two although CMO and so in.
So, it's performing well and in terms of new product contribution to the brand.
<unk> last quarter, so fourth quarter of 2023.
A little below 40% and we believe this year it will turn out to.
About 50% so that's for the new clock and you also asked about margins. So basically for this new.
Donghao Yang: So basically, for this new product launch, and also the Perfect Diaries grant upgrade, we're seeing some good results. The feedback and results so far, first of all, the growth margin is much higher for this new product compared to the old product. And also, the brand's average selling price also increased a lot to around $140 to $150 on both Tmall and Douyin.
<unk> product launch and also the perfect Irish friend upgrade where food some good.
Feedback and results so far first of all it's the gross margin is.
Much higher for this new product come back to the old policy and also the friends ever selling price also increase a lot to around 140 to 150 on both small kunal <unk>.
Donghao Yang: And also, in terms of the consumer profile, we also attract more customers with higher affordability and beauty spending in general. So that's for your question number one, and then for question number two regarding Women's Day's performance. So far, the Women's Day shopping festival has already started, and looking at the overall market, the performance is relatively modest.
And also in terms of our consumer profile. We're also attract more customers from a higher with higher affordability and a few of these standalone general.
So that's part of your question number one and then for question number two regarding to the womens performance so far.
When I say shovel tests or already started looking at the overall market.
The performance relatively modest.
Donghao Yang: So, as a result, for our brand, we're also seeing relatively steady growth. So, we are putting more resources and effort into the bigger shopping festivals, for example, 618 and W. That's very helpful. Thank you very much, and I have no more questions. This concludes our question-and-answer session. I would like to turn the conference back over to management for any closing remarks. Thank you once again for joining us today. If you have any further questions, please feel free to contact us at Yatsen directly or at PSO Financial Communications. Our contact information for IR in China and the U.S. can be found in today's press release.
So as a result for our friends, who are also flew a relatively sudden growth. So we're more putting more resources efforts toward a figure or a shopping festival was for example, six influenza outbreak 11th.
Yes.
I'm going to just that's very helpful. Thank you very much and I have no more questions.
Thank you.
Yeah.
This concludes our question and answer session I would like to turn the conference back over to management for any closing remarks.
Thank you once again for joining us today, if you have any further questions. Please feel free to contact us at Yahoo directly.
Yes, all financial communications.
Contact information for both IR in China, and the U S can be found in today's press release, Thank you and have a great day.
Okay.
The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
Operator: Thank you, and have a great day. The conference is now concluded. Thank you for attending today's presentation. You may now disconnect. Thanks for watching!
Yeah.
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