Annual Reports
Yatsen Holding Limited's annual reports contain management's most considered account of the business. These are the sections, passages and visual pages worth opening in the originals preserved in Sources.
Yatsen Holding Limited — FY2025 Annual Report (Form 20-F) — FY2025
The latest full account of a China beauty group mid-pivot: skincare now a revenue majority, losses nearly erased, all through a VIE. · Open the full document →
Item 3. Key Information — D. Risk Factors — p. 18 · Read the full section →
The two risks that most define the equity: a still-unproven path to profit and a business owned only by contract, not equity.
Five straight years of net losses and negative operating cash flow, though both are narrowing.
We incurred a net loss of RMB750.2 million in 2023, RMB710.2 million in 2024, and RMB92.4 million (US$13.2 million) in 2025. We had negative cash flows from operating activities of RMB107.4 million, RMB243.7 million and RMB94.7 million (US$13.5 million) for the fiscal years ended December 31, 2023, 2024 and 2025, respectively. We cannot assure you that we will be able to generate net profits or positive cash flow from operating activities in the future.
p. 23 · Read in context →
Foreign ownership is restricted, so control of the China operations rests on contracts with the VIE, not shares.
We have to rely on the contractual arrangements with the VIE and its shareholders to operate or invest in companies that operate the business in areas where foreign ownership is restricted. These contractual arrangements, however, may not be as effective as direct ownership in providing us with control over the VIE.
p. 53 · Read in context →
Item 4. Information on the Company — B. Business Overview — p. 78 · Read the full section →
How the business now makes money after the 2022 reset — a deliberate tilt from color cosmetics toward higher-margin skincare.
Skincare lifted from a third to over half of revenue; gross margin up to 78.2% and net loss margin down to 2.2%.
Strengthening brand equity across our multi-brand portfolio. A key pillar of this plan is the rapid expansion of our skincare brands, including Galénic, DR.WU (its mainland China business), and Eve Lom. […] Revenue contribution from our skincare brands expanded significantly from 33.5% in 2022 to 53.0% in 2025, driven by a three-year compound annual growth rate of 22.4% for the skincare brands. […] Improving our overall financial performance. We have achieved consistent margin expansion through stricter pricing and discount policies, optimized supply chains and enhanced operating efficiency. Our gross margin increased from 68.0% in 2022 to 78.2% in 2025. Concurrently, we significantly narrowed our net loss margin from 22.2% in 2022 to 2.2% in 2025.
p. 79 · Read in context →
Item 4. Information on the Company — C. Organizational Structure — p. 116 · Read the full section →
The corporate map a foreign investor actually buys into — a Cayman shell that consolidates the China operating company by contract.
Online cosmetics sales run through the VIE, Huizhi Weimei, to satisfy PRC foreign-ownership limits.
Current PRC laws and regulations impose certain restrictions or prohibitions on foreign ownership of companies that engage in value-added telecommunication services and certain other businesses. […] To comply with PRC laws and regulations, we conduct the business of online sales of cosmetics products and skincare products in China through Huizhi Weimei, the VIE in China
p. 116 · Read in context →
Item 5. Operating and Financial Review and Prospects — A. Operating Results — p. 120 · Read the full section →
Management's own walk through what drove results — the skincare surge, margin gains, and the goodwill charges that vanished in 2025.
2025 revenue rose 26.7%, driven by a 63.5% jump in skincare; color cosmetics grew just 1.9%.
Our net revenues increased by 26.7% from RMB3.39 billion in 2024 to RMB4.30 billion (US$614.6 million) in 2025, primarily attributable to a 63.5% year-over-year increase in net revenues from Skincare Brands, as well as a 1.9% year-over-year increase in net revenues from Color Cosmetics Brands. Our net revenues generated through Skincare Brands as a percentage of total net revenues increased from 41.1% in 2024 to 53.0% in 2025.
p. 128 · Read in context →
Item 5. Operating and Financial Review and Prospects — B. Liquidity and Capital Resources — p. 132 · Read the full section →
Cash is the live question for a company still burning it — this is the three-year cash-flow picture in one table.
Yatsen Holding Limited — FY2021 Annual Report (Form 20-F) — FY2021
The pre-pivot business in its own words: a Perfect Diary-led color-cosmetics DTC group, before skincare became the revenue majority. · Open the full document →
Item 4. Information on the Company — B. Business Overview — p. 69 · Read the full section →
Reads as a different company — flagship Perfect Diary and a DTC model, versus today's R&D-led skincare framing.
More annual reports
Yatsen Holding Limited — FY2024 Annual Report (Form 20-F) — FY2024 · 254 pages · Mid-transition year: skincare at 41% of revenue and a RMB403m goodwill impairment on the skincare segment. · Open →
Yatsen Holding Limited — FY2023 Annual Report (Form 20-F) — FY2023 · 264 pages · Perfect Diary repositioned around 'makeup skintification'; first RMB354m skincare goodwill write-down. · Open →
Yatsen Holding Limited — FY2022 Annual Report (Form 20-F) — FY2022 · 248 pages · First report to lay out the strategic transformation plan, with net loss margin still at 22.2%. · Open →