THE WHAT? Yatsen has reported a 22.5% increase in first-quarter 2026 revenue, driven by strong growth across its skincare portfolio, despite posting a wider net loss as the company increased investment in brand building and R&D.
THE DETAILS Total net revenues rose to RMB1.02 billion (US$148 million) in the first quarter, with skincare brand revenue surging 58.5% year-on-year to RMB574.2 million and accounting for more than half of total group sales. The company said combined revenues from premium skincare brands Galénic, DR.WU and Eve Lom increased 61.4% during the quarter. Gross margin improved to 80.2% from 79.1% a year earlier. However, Yatsen reported a net loss of RMB61.9 million compared with RMB5.6 million in the prior-year period, reflecting increased spending on marketing, traffic acquisition and R&D. Selling and marketing expenses rose to RMB737.2 million, while R&D expenses increased to RMB39.4 million as the company expanded innovation capabilities. Yatsen also confirmed the completion of the first tranche of its previously announced US$120 million private placement backed by Trustar Capital, Hillhouse and founder Jinfeng Huang
THE WHY? The results highlight Yatsen’s continued transition towards premium skincare and innovation-led growth, as Chinese beauty companies increasingly focus on higher-margin skincare categories, brand equity and long-term profitability.
Source: PR Newswire
