Yatsen Holding Ltd. ADR Class A (YSG.US) Q2 skincare revenue soared over 40%, accounting for more than 70%, becoming the core growth engine.

On September 2, Yatsen Holding Ltd. ADR Class A (YSG.US) released its performance report for the second quarter of 2026. The announcement revealed that the company's revenue in the second quarter reached 1.14 billion yuan, an increase of 5.1% compared to the same period last year, achieving year-on-year growth for seven consecutive quarters. Among them, the three major skincare brandsGalnic, DR.WU, and EVE LOMshowed strong growth, contributing to a 40.4% year-on-year increase in skincare business revenue, which totaled 816 million yuan. The revenue contribution from the skincare segment rose to 71.5% of total revenue, reaching a record high and becoming the main engine of growth. At the same time, the company continued to increase its investment in research and development, with R&D expenses totaling 37.25 million yuan in the second quarter of 2026, maintaining a rate of over 3%, ranking among the top tier in the industry. Since 2020, the cumulative investment in R&D innovation has exceeded 770 million yuan, keeping the annual R&D expense ratio above 3% for four consecutive years. It is worth mentioning that in May of this year, Yatsen Holding Ltd. ADR Class A completed the first issuance of 120 million USD convertible bonds, backed by CICC Capital and Hillhouse Capital, highlighting the confidence that leading institutions have in the company's long-term development value and strategic layout. According to the announcement, the funds raised will be used for product research and development, global supply chain integration, and overseas market expansion, which is expected to further drive the company's sustained growth and solidify its core competitiveness. In response, Huang Jinpeng, founder, chairman, and CEO of Yatsen Holding Ltd. ADR Class A, stated: The domestic beauty market in the second quarter has shown strong resilience, and the market growth rate has seen some recovery, but competition within the industry has intensified, and overall challenges remain. Against this backdrop, the company's business is still in a critical phase of strategic transformation. The skincare business continues to maintain a strong growth momentum, with revenue contribution for the quarter exceeding 70%. In contrast, the color cosmetics business faces structural headwinds in competition, and we will proactively adjust our resource focus and actively optimize the company's business structure. Looking ahead, the company will continue to adjust its product mix and channel operations while maintaining investment in R&D to strengthen its innovative product pipeline and achieve long-term sustainable growth.