On September 2, Yatsen Holding Limited released its financial results for the second quarter of 2026. According to the announcement, the company's quarterly revenue grew to 1.14 billion yuan, a 5.1% increase compared to the same period last year, sustaining a growth trajectory for seven consecutive quarters.
The company's three major skincare brands—Galénic, DR.WU, and EVE LOM—delivered robust performance, propelling the skincare division to a substantial 40.4% year-on-year surge, with revenue reaching 816 million yuan. This segment's contribution to total revenue climbed to a record 71.5%, solidifying its role as the primary growth engine.
Commenting on the results, Yatsen Holding's founder, Chairman, and CEO, Jinfeng Huang, stated, "During the quarter, the domestic beauty market demonstrated considerable resilience with a modest recovery in growth rates. However, intensifying industry competition continues to present challenges. In this environment, our business remains in a critical phase of strategic transformation. The skincare segment has sustained its strong growth momentum, contributing over 70% of quarterly revenue. Conversely, the color cosmetics business is encountering structural headwinds amid fierce competition. We will proactively adjust our resource allocation and focus to optimize our business structure. Looking ahead, we will continue to refine our product portfolio and channel operations, persist in our R&D investments, and strengthen our pipeline of innovative products to achieve long-term, sustainable growth."
Chief Financial Officer Donghao Yang added, "In the second quarter of 2026, we achieved moderate revenue growth, with net revenues up 5.1% year-over-year. This performance was primarily driven by the 40.4% increase in our skincare business. Looking forward, amidst a rapidly changing market landscape, we will maintain our focus on enhancing marketing expenditure efficiency and progressively optimizing our operating cost structure."
The financial report reveals that R&D investment for the second quarter of 2026 totaled 37.25 million yuan, with the expense ratio remaining stable above 3%, positioning the company in the industry's leading echelon. Since 2020, cumulative R&D spending has surpassed 770 million yuan, with annual R&D expense ratios exceeding 3% for four consecutive years. Regarding intellectual property, as of June 30, 2026, the company had filed 282 patents globally, including 88 invention patent applications and 73 granted invention patents.
During the first half of 2026, Yatsen Holding completed filings for 203 general cosmetic product registrations, 262 cosmetic export registrations, and 10 special cosmetic product certifications. These achievements lay a solid foundation for product iteration and upgrades, domestic and international market expansion, and the scaling of business operations.
In May of this year, Yatsen Holding successfully closed the initial issuance of its 120 million USD convertible bonds, which received co-investment from Trustar Capital and Hillhouse Capital. According to the announcement, the proceeds will be allocated towards product research and development, global supply chain integration, and overseas market expansion, potentially further driving sustained business growth and reinforcing the company's core competitiveness.