THE WHAT? Yatsen has announced net revenues for the fourth quarter of 2022 decreasing by 34.2 percent to RMB1.01 billion (US$145.8 million) from RMB1.53 billion YOY.

THE DETAILS Total net revenues from skincare brands for Q4 increased by 42.4 percent to RMB471.6 million, while the gross margin for the fourth quarter was 71.1 percent compared to 65 percent a year prior. 

Net loss for Q4 2022 decreased by 88.4 percent to RMB55.0 million (US$8.0 million) from RMB475.1 million for the prior year period.

Total net revenues for the FY22 decreased by 36.5 percent to RMB3.71 billion (US$537.3 million) from RMB5.84 billion for the prior year period. 

This was primarily attributable to the decline in net revenues from Color Cosmetics Brands, which was partially offset by the increase in net revenues from skincare brands.

THE WHY? Jinfeng Huang, Founder, Chairman and Chief Executive Officer of Yatsen, highlighted that, “2022 was a difficult year for the beauty industry and the overall consumer industry in China.”