Q1 2025 Yatsen Holding Ltd Earnings Call
Operator: Ladies and gentlemen, good day and welcome to the Yatsen First Quarter and Earnings Conference Call. Today's conference is being recorded.
Ladies and gentlemen, good day and welcome to the Yadkin first quarter and earnings conference call.
Today's conference is being recorded.
Irene Lyu: At this time, I would like to turn the conference over to Irene Lyu, Vice President, Head of Strategic Investment in Capital Markets. Please go ahead. Thank you, Operator.
Irene: 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: Thank you operator. Please note the discussion today will fulfill a formal fulfillment where they came from a couple of features for formal launch.
Irene Lyu: Please note that the session today will contain four useful 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 guarantees of future performance, and are subject to certain risks, assumptions, and other factors. Some of these risks are beyond the company's control and could cause actual results to differ necessarily 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 files of the company with the Securities and Exchange Commission.
Irene: So Paul will fall for the full amount.
Irene: <unk> established.
Speaker Change: Hi, this is <unk>.
Irene: So it will fall off.
Irene: Such statements are not guarantees of future performance.
Irene: Subject to a simple yes.
Irene: That's helpful.
Irene: Some of these.
Irene: Hello Hello.
Irene: Paul.
Irene: Actual results could differ materially from both national and today's press release and this discussion.
Irene: General discussion of the risk factors.
Irene: That could affect <unk> business.
Irene: Financial results for the fourth or fifth firewall companies well that's for sure.
Our mission.
Irene Lyu: The company does not undertake any obligation to update this portal for information.
Irene: The company does not undertake any obligation to update them for this information.
Irene: Some of the required by law during today's call management will also discuss certain non-GAAP financial measures for comparison purposes.
Unknown Executive: Executive Director, Donghao Yang, Irene Lyu, Jinfeng Huang, Yatsen Hldg Please see the earnings review issued earlier today for a definition of non-GAAP financial measures and a reconsideration of GAAP to non-GAAP financial regimes.
Irene: Please see the earnings release issued earlier today for a definition of non-GAAP financial measures.
Irene: A reconciliation of GAAP Philadelphia financial result.
Irene Lyu: 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. As a reminder, this conference is being recorded.
Speaker Change: What are you up today on the call from Yahoo.
Speaker Change: Our misheard some football all founder chairman and CEO.
Speaker Change: Mr Bill Hahl, our CFO and.
Speaker Change: Management will begin with prepared remarks, and the call will conclude with a Q&A session.
Speaker Change: As a reminder.
Speaker Change: Congress the floral court.
Irene Lyu: In addition, a webcast replay of this conference call will be available on Yatsen's investor relations website at ir.yatsenglobal.com.
Speaker Change: In addition, a webcast replay of this call will be available vessel Investor Relations website.
Speaker Change: Our software and global football.
Jinfeng Huang: I will now turn the call over to Mr. Jinfeng Huang. Thank you, Irene, and thank you, everyone, for participating in Yatsen's first quarter 2025 earnings conference call today. I will begin with a macro overview and our key financial results, followed by insights into our key strategy initiatives and operational highlights. Thailand's beauty market saw a modest growth in the first quarter of 2025. according to the China National Bureau of Statistics. Beauty retail sales rose 3.2% year-over-year, slightly trailing the 4.6% year-over-year growth in total retail sales of consumer goods. Online beauty sales reflected a similar trend. Combined beauty sales on Tmall and Douyin recorded low double-digit year-over-year growth.
Speaker Change: I will now turn the call over to Mr. Simple fall.
Speaker Change: Sure.
Simple fall: Well, thank you Gary and thank you everyone for.
Walk around fourth quarter conference call today.
Simple fall: I will begin with a market overview and our chief financial results, followed by insights all key strategy initiatives and operational highlights.
Simple fall: And that's D C market.
Simple fall: Mortgage growth in the first quarter of 70 75.
Simple fall: According to the China's National Bureau of statistics.
Simple fall: BT retail sales rose three 2% year over year.
Simple fall: Slightly trailing the four 6% year over year growth in total retail sales of.
Simple fall: She loves it.
Simple fall: All light duty sales reflected similar trends.
Simple fall: Buying steel T cell phones.
Simple fall: Yes.
Simple fall: Call it low double digits year over year growth.
Jinfeng Huang: The Women's Day Shopping Festival delivering moderate performance. In terms of channels, BoYin outperformed Tmall in both skincare and the color cosmetics category. Despite a soft market environment, we delivered results in line with our guidance. Total net revenues increased by 7.8% year-over-year. Remarkably, our net revenue from skin care brands rose by 47.7% year-over-year, driven by a 58% year-over-year increase from our clinical and premium skin care brands, including DLANIC, Dr. Wu, and Yvlon.
Simple fall: Women's day shopping festival.
Simple fall: The library moderate.
Simple fall: Almost.
Simple fall: In point of channels OEM outperformed T mall in both skincare and color cosmetics category.
Simple fall: Yeah.
Simple fall: Just follow up the market environment, we delivered results in line with all vital.
Simple fall: Total net revenues increased by one.
Simple fall: 8% year over year.
Simple fall: Remarkably all.
Simple fall: Net revenue from skincare brands.
Simple fall: 547, 7% year over year.
Simple fall: Keep them by a 58% year over year increase for all of our clinical and the premium skincare brands, including me both of them.
Simple fall: And the floor.
Simple fall: Okay.
Jinfeng Huang: on the profitability front. For the first quarter of 2025, our overall growth margin increased to 79.1%, from 77.7% for the prior year period, given by the greater contribution from higher margin products. We also reduced our net loss margin by 15.5 percentage points to 0.7% from 16.1% in the prior year. through more strategic marketing spending and a streamlined journal and administrative expenses. Notably, we achieved a non-gap net income of RMB 7.1 million. representing a significant turnaround from the non-gap net loss of RMB83.8 million for the prior year period.
Simple fall: On the profitability from.
Simple fall: For the third quarter of 2025.
Simple fall: Overall gross margin increased to seven in my 0.1%, So 77, 7% for the prior year period.
Simple fall: Given by the greater contribution from higher margin products.
Simple fall: We also reduced our net loss margin by 15, five percentage points to 0.7% Roe.
Simple fall: 15, 1% in the prior year.
Simple fall: Yeah.
Simple fall: Two more strategic marketing spending and the skin line in general.
Simple fall: And I didn't say too expensive.
Simple fall: Notably we achieved non-GAAP net income of RMB seven 1 million.
Simple fall: Representing a significant.
Simple fall: Kona wrong from the non-GAAP net loss of RMB 83, one a medium for the prior year period.
Jinfeng Huang: Our solid performance for the first quarter marks another milestone in our strategic transformation, which particularly progressed on two key fronts. accelerating the growth for our skincare brands and optimizing our cost structure to prepare us for profitable growth.
Simple fall: Our solid performance for the third quarter marked another milestone in our strategic transformation, which particular progress on two key false.
Simple fall: Accelerating the growth for our skincare brands and optimizing our cost structure to prepare us for profitable growth.
Jinfeng Huang: Now let me walk you through the key performance highlights this quarter that reflect the accomplishments we have achieved. Starting with skincare, our portfolio continued to show strong momentum. primarily driven by Galanick and Dr. Wu. Our skincare brands delivered year-over-year revenue growth of 47.7%. that I need for another quarter of steady growth. Its No.1 Vitamin C Serum was the best-selling product in the Premium Vitamin Serum category in Optin-D's live streaming room. While the secret deacetylene acid cream ranked among the top six anti-aging creams on Tmall in terms of retail sales value in the first quarter. The MICRO MASK series also contributed to the brand's strong performance.
Simple fall: Now let me walk you through the key performance highlights of courses that reflect the accomplishments we have achieved.
Simple fall: Starting with skincare, our portfolio continued to show strong momentum.
Simple fall: Primarily driven by good I'd make and that books, a room, although skincare brands delivered year over year revenue growth.
Simple fall: 47, 7%.
Simple fall: Did I make.
Simple fall: Another quarter of steady growth.
Simple fall: Number one the timing sees there as well.
Simple fall: Best selling product in the premium Weitzen means they're in category in often these life premium room.
Simple fall: Why are the secret the <unk> active creams ranked among the top six anti aging Queens on T mall in parent itself without felt that in the first quarter.
Simple fall: So Mike mock serious also contributed to the brand's strong performance.
Jinfeng Huang: In May, we hosted an offline event in Yunnan, China, to officially launch the upgraded, rejuvenating MICRO MASK, which recently obtained the Special Cosmetic Registration Certificate for whitening products. At the event, we also announced renewed actress Du Lingchen as the brand ambassador for the Masked series.
Simple fall: In May we hosted and offline events and benign time off to officially launch the upgrade it with jewelry dating.
Simple fall: My Cold months, which recently obtained the special Court mandate registration certificate for whitening product.
Simple fall: At the event, we also announced a renewed axes.
Simple fall: In China as the brand ambassador for the market seriously.
Jinfeng Huang: We aim to further elaborate. that I need awareness and recognition to continue product innovation and targeted marketing efforts. Dr. Wu also delivered robust revenue growth in the third quarter, supported by a broader product portfolio and a more balanced channel mix. We collaborated with a wide range of celebrities and KOLs to promote diverse products. including the Purifying Renewal Essence Toner. the SunCare UV Protect Whitening Lotion, and the newly launched Targeted Acne Cleaning Serum. This approach helps us drive revenue growth on both Tmall and BoYin.
Simple fall: We aim to further elaborate.
Simple fall: But I need awareness and recognition through continuous product innovation and targeted marketing efforts.
Buffalo: Buffalo, who also delivered robust revenue growth in the third quarter.
Buffalo: Corporate is by a broader product portfolio and a more balanced channel mix.
Buffalo: We collaborate with a wide range of celebrities and Kols.
Buffalo: Promote I heard all that.
Buffalo: Including the period finally, we knew will essence corner.
Buffalo: The Sun Ku, we call type weitzen emotions, and the newly launched targeted Acme cleaning service.
Buffalo: This approach help us drive revenue growth on both the more in the bogey.
Jinfeng Huang: In addition to strong sales performance, we remain committed to scientific research and collaboration. In March, we launched the third Bukavu Acne Research Fund project, led by 14 renowned dermatologists from top institutions. Since its inception in 2023, the project has reached over 20,000 doctors and received more than 350 clinical research proposals. We look forward to the insights this fund will bring to the field of anti-acne treatment.
Buffalo: In addition to strong stock performance, we remain committed to find typically research and collaboration in March we launched the third Acme a research farm project led.
Buffalo: 514, we know that my apologies from public institutions.
Buffalo: Things its inception in 2010 to stream. The culture has reached over 20000 brokers and they receive more than we havent given 15 clinical research proposals.
Buffalo: We look forward to the incisive phones will bring to the field of N T X and shipment.
Jinfeng Huang: While continuing to invest in product development and brand building to boost revenue growth, we also made meaningful progress in improving profitability. Study and marketing expenses as a percentage of total net revenues narrowed to 66.4% from 59.7% for the prior year period. The improvement was primarily due to more strategic marketing spending, particularly upset by higher traffic expenses as a result of growing revenue contribution from the Douyin Channel. More notably, general and administrative expenses as a percentage of total net revenues were 7.8%, bound by 10.3 percentage points from 18.1% a year ago. These improvements reflected our distinct cost management and provide a solid foundation for our long-term growth.
Buffalo: While continuing to invest in product development and brand building to boost revenue growth. We also made meaningful progress in improving profitability.
Buffalo: Selling and marketing expenses as a percentage of total net revenues narrowed to 56, 4%.
Buffalo: 115, a nine 7% for the prior year period.
Buffalo: The improvement was primarily due to more strategic marketing spending.
Buffalo: It really upset by higher.
Buffalo: Choppy expenses as a result of growing revenue contribution from both the leading channel.
Buffalo: More notably general and administrative expenses as a percentage of total net revenues were seven 8%.
Buffalo: By 10, three percentage points from 18, 1% a year ago.
Buffalo: This improvement reflected our theme.
Buffalo: <unk> off the management and to provide a solid foundation for our long term growth.
Jinfeng Huang: Lastly, I would like to highlight a few milestones at the corporate level. Our Global R&D Center in Shanghai, which we inaugurated last year, was officially accredited by the China National Accreditation Service for conformity assessment. placing it among the top tier of global taxing institutions. This accreditation, alongside the CNAS recognition received by our R&D center in Guangzhou back in 2022, demonstrate our continued commitment to excellence in beauty research.
Buffalo: Lastly, I would like to highlight a few milestones at the corporate level, our global R&D Center in Shanghai, which we inaugurated last year was officially accredited by the China National.
Buffalo: The Asian service for conformity of settlement.
Buffalo: Placing it among the top tier of global packaging institutions.
Buffalo: Quite the patients alongside with C. N. A S recognition received by our R&D Center in Guangzhou back in 2022, Okay.
Buffalo: Okay power.
Buffalo: Continued a continued commitment to excellence in beauty.
Jinfeng Huang: Also in April, we were invited by the China Show of Bloomberg and engaged in an in-depth interview on the topic of the future of beauty given by technology. This opportunity reinforced our strategic focus on R&D as a core competitive advantage.
Buffalo: In April we were invited by the tonnage so often broker and engaged team and in fact interview on the topic.
Buffalo: The future of beauty, even bites at the molecule is.
Buffalo: Affinity reinforced our strategy focused on R&D and so core competitive advantage.
Jinfeng Huang: Before passing the court to Donghao, I would like to provide an update that our Board of Directors has approved a new share repurchase program, under which we may repurchase up to 30 million worth of our ordinary shares over the next 24 months, commencing on May 15, 2025. This further demonstrates our confidence in Yatsen's future potential.
Buffalo: Before passing the courts, who don't haul I would like to Hawaii and update our board of directors has approved.
Buffalo: New share repurchase program under which we May reported up to 30 million worth of our ordinary shares over the next 24 months.
Buffalo: Men thing on May 15th Syndeton default.
Buffalo: This further demonstrates our confidence in <unk> future potential.
Jinfeng Huang: To conclude, while market conditions remain complex, we are encouraged by the progress we have made in executing our strategic transformation. We remain focused on delivering innovative and efficacious products, building strong brand equity, and driving operational excellence. all of which we believe will position us well for long-term sustainable growth.
Buffalo: To conclude while market conditions remain complex. We are encouraged by the progress we have made in executing our strategic transformation, we remain focused on delivering the weighted and that your feet ethical.
Buffalo: That'd be cultured products building strong brand equity and driving operational excellence.
Buffalo: All of the week, we believe we are positioned well for long haul sustainable growth.
Donghao Yang: With that, I will now turn the call over to our CFO, Donghao Yang, to discuss our financial performance. Thank you, everyone. Thank you, David, and hello, everyone.
Buffalo: With that I will now turn the call over to our CFO, Don how long to discuss our financial performance. Thank you every one.
Don: Thank you, David and Hello, everyone before I get started I would like to clarify that all financial numbers presented today are you.
Donghao Yang: Before I get started, I would like to clarify that all financial numbers presented today are in VMMs, and all percentage changes refer to year-over-year changes and is otherwise noticeable. Total net revenues for the first quarter of 2025 increased by 7.8%. to $833.5 million from $773.4 million for the prior year period. The increase was primarily due to a 47.7% year-over-year increase in net revenues from skincare brands, partially offset by a 9.9% year-over-year decrease in net revenues from colored cosmetics brands. Gross profit for the first quarter of 2025 increased by 9.7% to $659.1 million from $600.9 million for the prior year period.
Don: Vietnam, and all percentage changes referred to year over year changes unless otherwise noted.
Don: Net revenues for the first quarter of 2025 increased by seven 8%.
Don: Two $833 5 million from $773 4 million for the prior year period.
Don: The increase was primarily due to a 47, 7% year over year increase in net revenues from skincare brands.
Don: Clearly offset by a nine 9% year over year decrease in net revenues from color cosmetics brand.
Don: Gross profit for the first quarter of 2025 increased by nine 7% to $659 1 million from 600.9 million for the prior year period.
Donghao Yang: Gross margin for the first quarter of 2025 increased to 79.1% from 77.7% for the prior year period. The increase was primarily driven by an increase in sales of higher gross margin products. Total operating expenses for the first quarter of 2025 decreased by 8.6% to $693.2 million from $758.7 million for the prior year period. As a percentage of total net revenues, total operating expenses for the first quarter of 2025 were 83.2%, as compared with 98.1% for the prior year period. Fulfillment expenses for the first quarter of 2025 were $51.8 million as compared with $51.4 million for the prior year period.
Don: Gross margin for the first quarter of 2025 increased to 79, 1% from 77, 7%.
Don: Prior year period, the increase was primarily driven by an increase in sales of higher gross margin products.
Don: Total operating expenses for the first quarter of 2025 decreased by 8.6%.
Don: 693.2 million from $758 7 million for the prior year period as a percentage of total net revenues total operating expenses for the first quarter of 2025.
Don: 83, 2% as compared with 98, 1% for the prior year period.
Don: <unk> expenses for the first quarter of 2025, or 51.8 million as compared with $51 4 million for the prior year period.
Donghao Yang: As a percentage of total net revenues, fulfillment expenses for the first quarter of 2025 decreased to 6.2 percent from 6.7 percent for the prior year period. The decrease was primarily due to further improvement in logistics efficiency. Selling and marketing expenses for the first quarter of 2025 were $553.8 million as compared with $539.2 million for the prior year period. As a percentage of total net revenues, selling and marketing expenses for the first quarter of 2025 decreased to 66.4% from 69.7% for the prior period. The decrease was primarily due to the company's more strategic marketing spending combined with the selective closure of offline stores.
Don: Centers of total net revenues fulfillment expenses for the first quarter of 2025 decreased to six 2%.
Don: Six 7% for the.
Don: The prior year period.
Don: The decrease was primarily due to further improvement and logistics efficiencies.
Don: Selling and marketing expenses for the first quarter of 2025 or $553 8 million.
Don: As compared with $539 2 million for the prior year period.
Don: As a percentage of total net revenues selling and marketing expenses for the third quarter of 2025 decreased to 66, 4% from 69, 7% for the prior year period. The decrease was primarily due to the company's more strategic marketing spending combined.
Don: <unk> with the selective closure of offline stores.
Donghao Yang: General and Administrative expenses for the first quarter of 2025 were $64.9 million as compared with $140.1 million for the prior year period. As a percentage of total net revenues, general and administrative expenses for the first quarter of 2025 decreased to 7.8% from 18.1% for the prior year period. The decrease was primarily attributable to lower share-based compensation expenses as a result of using the graded method over the vesting term of the company's awards and lower payroll expenses resulting from a reduction in general and administrative headcount. The surge and development expenses for the first quarter of 2025 were $22.6 million as compared with $27.9 million for the prior year period.
Don: General and.
Don: Administrative expenses for the third quarter of 275 were $64 9 million.
Don: Compared with $140 1 million for the prior year period.
Don: As a percentage of total net revenue.
Don: <unk> and administrative expenses for the first quarter of plenty plenty five decreased to seven 8% from 18, 1% from the prior year period. The decrease was primarily attributable to lower share based compensation expenses as a result of using the.
Don: Graded vesting period method over the vesting term of the company's awards and lower payroll expenses.
Don: And from a reduction in general and administrative head count.
Don: Research and development.
Don: For the first quarter of 2025.
Don: With 22 6 million as compared with 27 9 million for the prior year period.
Donghao Yang: As a percentage of total net revenues, the surge and development expenses for the first quarter of 2025 decreased to 2.7 percent from 3.6 percent for the prior year period. The decrease was primarily due to lower lease expenses resulting from more favorable terms under a lease agreement renegotiated during the first quarter of 2025 and lower share-based compensation expenses. Loss on operations for the first quarter of 2025 was $34.1 million as compared with $157.7 million for the prior year period. Operating loss margin was 4.1 percent as compared with 20.4 percent for the prior year period. Non-GAAP loss from operations for the first quarter of 2025 was $14.9 million as compared with $107 million for the prior period.
Don: As a percentage of total net revenues.
<unk> development expenses for the <unk>.
Don: First quarter of 2020 five decreased to two 7%.
Don: Three 6% for the prior year period. The decrease was primarily due to lower lease expenses, resulting from more favorable terms under a lease agreement we negotiated during the first quarter of 2025.
Don: And lower share based compensation expenses.
Don: Loss from operations for the first quarter of 2025 was 34.1 million as compared with 157.7 million for the prior year period.
Don: Operating loss margin was four 1%.
Don: As compared with 24% for the prior year period.
Don: non-GAAP loss from operations for the first quarter of 2025 was $14 9 million.
Don: As compared with 107 million for the prior year period.
Donghao Yang: Non-GAAP operating loss margin was 1.8% as compared with 13.8% for the prior period. Net loss for the first quarter of 2025 was $5.6 million as compared with $124.9 million for the prior year period. Net loss margin was 0.7% as compared with 16.1% for the prior year period. net loss attributable to Yatsen's ordinary shareholders per diluted EDS for the first quarter of 2025 was 0.06 RMB as compared with 1.16 RMB for the prior year period. Non-GAF net income for the first quarter of 2025 was $7.1 million as compared with non-GAF net loss of $83.8 million for the prior year period.
Don: non-GAAP operating loss margin was one 8% as compared with 13, 8%.
Don: Prior year period.
Don: Net loss for the first quarter of 2025.
Don: $5 6 million as compared with $124 9 million for the <unk>.
Don: Higher year period period, net loss margin was 0.7% as compared with 16, 1% for the prior year period.
Don: Net loss attributable to ordinary.
Don: Ordinary shareholders per diluted ads for the first quarter of 2025 with 0.06 RMB is <unk>.
Don: Paired with 1.16 RMB for the prior year period.
Don: non-GAAP net income for the first quarter of 2025 was seven 1 million as compared with non-GAAP net loss of 83.8 million for the prior year period non.
Donghao Yang: Non-GAF net income margin was 0.9% as compared with non-GAF net loss margin of 10.8% for the prior year period. non-GAAP net income attributable to Yatsen's ordinary shareholders for diluted ADS for the first quarter of 2025 was 0.07 RMB as compared with non-GAAP net loss attributable to Yatsen's ordinary shareholders for diluted ADS of 0.78 RMB for the prior period. As of March 31st, 2025, we had cash and short-term investment. of 1.28 billion RMB as compared with 1.36 billion RMB as of December 31, 2024. Net cash generated from operating activities for the first quarter of 2025 was $23.8 million as compared with net cash used in operating activities of $121.8 million for the prior year period.
Don: non-GAAP net income margin was 0.9% as compared with non-GAAP net loss margin.
Don: 10, 8% for the.
Don: Prior year period.
Don: non-GAAP net income attributable to ordinary shareholders per diluted ads for the first quarter of 2025 was 0.07, RMB as compared with non-GAAP net loss attributable to.
Don: Ordinary shareholders per diluted EPS of 0.78, RMB for the prior year period.
Don: As of March 31st funding 25, we had cash and short term investments of 1.28 billion RMB as compared with 1.36 billion RMB as of December 31, 24.
Don: Net cash generated from operating activities for the third.
Don: Fourth quarter of 2025.
Don: It's $23 8 million.
Don: Paired with net cash used in operating activities.
Don: 121, 8 million for the prior year period.
Donghao Yang: Looking at our business outlook for the second quarter of 2025, we expect our total net revenues to be between $810.4 million and $889.9 million, representing a year-over-year increase of approximately 2 percent to 12 percent. reflect our current and preliminary views on the market and operational conditions which are subject to change.
Don: Looking at our business outlook for the second quarter of 2025, we expect our total net revenues to be between $810 4 million and $889 9 million, representing a year over year increase of approximately 2% to go.
Don: Per cent these forecasts.
Don: Reflects our current and preliminary views on the market and operational conditions, which are subject to change.
Donghao Yang: With that, I would now like to open the call to Q&A. Thank you.
Don: With that I would now like to open the call for Q&A.
Don: Operator.
Don: Yeah.
Don: Thank you.
Unknown Executive: We will now begin the question and answer session. To ask a question, you may press star, then 1. If you are using a speakerphone, please pick up your handset before pressing the button.
Don: Now begin the question and answer session.
Don: To ask a question you May press Star then one.
Don: If you are using a speakerphone please pick up your handset before pressing the keys.
Unknown Executive: To withdraw your question, please press star.
Don: To withdraw your question. Please press Star then two.
Unknown Executive: 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.
Don: 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.
Maggie Huang: The first question today comes from Maggie Huang with CICC. Please go ahead. Well, thanks for taking my question. This is Maggie Huang from CICC. And firstly, congratulations on achieving non-GAAP net income in this quarter.
Speaker Change: The first question today comes from Maggie along with T. I E C.
Speaker Change: Please go ahead.
Don: Okay.
Speaker Change: Well thanks for taking my question. This is making qualcomm's TICC and firstly congratulations on achieving non-GAAP net income in this quarter and I have two questions. My first question is that how do we plan to promote their new products all perfect diary and Ganesh.
Maggie Huang: And I have two questions. My first question is that, how do we plan to promote the new products of Perfect Diary and Gannic, especially the foundation products of Perfect Diary and the anti-aging products of Gannic? And my second question is about our performance of this June 18th shopping festival up to now. Is that in line with our expectation? That's my two questions. Thank you.
Speaker Change: Especially the foundation product perfect diary, and anti aging coordinates all scanning.
Speaker Change: And my second question is about our performance on June 18th shopping festival up to now.
Speaker Change: In line with our expectation and that's my two questions. Thank you.
Speaker Change: Okay.
Jinfeng Huang: Thank you, Maggie, for the question. So for your first question regarding the corporate diary and the Galantic new product, so we think product innovation and efficacy are the most important in driving consumers' repeat purchase and then save risk. So basically, right now, all our product pipelines are really with strong product innovation and are backed by very strong R&D capability, deep consumer insights, and very strong consumer communication.
Thank you Matthew for the question so for your first question.
Speaker Change: Adding the proper diary and Atlanta is a new product. So we think product innovation and efficacy are the most important.
Speaker Change:
Speaker Change: Your first test and then a favorite favorites, so basically right now our pipeline.
Speaker Change: Really well.
Speaker Change: And are backed by a very small R&D capabilities deep customer insights and the virus.
Speaker Change: So right now for the diary and Atlanta So.
Jinfeng Huang: So right now, for corporate diary and Galantic, so far, we have seen very good initial achievement results from the consumer feedback in terms of the facial makeup product and the anti-aging product, which is the foundation and also our VA serum. So once we receive more positive feedback from the consumers and fine-tune our consumer communication, then we can begin to enlarge our channel distribution and also further build this product into the consumer.
Speaker Change: So far we have some very good initial results.
Speaker Change: The consumer feedback in terms of facial makeup potash and anti aging product, which is a foundation and also so.
Speaker Change: So once we see more positive feedback from the consumers and fine tune, our consumer Hello solution that we had some chance to large solar panels.
Speaker Change: And also further to further potash.
Jinfeng Huang: All right, let me take your second question.
Speaker Change: Alright, let me take your second question, well, it's still a bit too early.
Jinfeng Huang: Well, it's still a bit too early for us to predict our overall performance for the June 18th festival. But so far, so good. I think the sales so far is pretty much in line with our expectations. Thank you. It's very clear. Thank you very much.
Speaker Change: Those two.
Speaker Change: To protect our overall performance for the June 18th Festival.
Speaker Change: So far so good.
Speaker Change: I think the sales are so far it's pretty much in line with our.
Speaker Change: With our expectations.
Speaker Change: Thank you.
Speaker Change: Yeah.
Speaker Change: It's very clear thank you very much and I get no more question.
Maggie Huang: And I have no more questions.
Speaker Change: Yeah.
Unknown Executive: Once again, if you would like to ask a question, please press star, then 1, to join the question That's far than one to ask.
Speaker Change: Once again, if you would like to ask a question. Please press Star then one to join the question queue.
Speaker Change: That's star then one to ask a question.
Speaker Change: Yeah.
Unknown Executive: Thank you again for joining us today.
Speaker Change: You again for joining us today, if you have any further questions. Please feel free to contact us.
Unknown Executive: If you have any further questions, please feel free to contact us at Yatsen directly. Our contact information for IR in both China and the U.S. can be found in today's press release.
Speaker Change: Yes.
Nathan: What kind of painful Nathan for IR in both.
Nathan: And then who else can be found in today's press release, Thank you and have a great day.
Unknown Executive: Thank you and have a great day.
Nathan: Yeah.
Unknown Executive: The conference is now concluded. Thank you for attending today's presentation.
Nathan: The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
Unknown Executive: You may now disconnect.
Nathan: Okay.
Nathan: [noise].