THE WHAT? Yatsen Holding Limited, the China-based beauty group behind brands including Perfect Diary, Galénic, and DR.WU, reported a sharp revenue increase and narrowed losses in the second quarter of 2025, driven by strong demand for its skincare portfolio.

THE DETAILS  Total net revenues rose 36.8% year-over-year to RMB1.09 billion (US$151.7 million), with skincare brands contributing 53.5% of revenues after posting a 78.7% increase. Color cosmetics also returned to growth, up 8.8%. Gross margin improved to 78.3%, supported by higher-margin product sales. Net loss narrowed by 77.2% to RMB19.5 million (US$2.7 million), while non-GAAP net income turned positive at RMB11.5 million (US$1.6 million) versus a loss last year. Executives credited flagship launches such as Galénic’s Brightening Micro Mask and DR.WU’s Purifying Renewal Essence Toner, alongside efficiencies in logistics and marketing. For Q3 2025, Yatsen projects 15–30% revenue growth to between RMB778.6 million and RMB880.1 million.

THE WHY? Yatsen’s strong quarter underscores the strategic pivot toward skincare, which is helping lift margins and move the company closer to profitability. For B2B stakeholders, the results highlight continued consumer appetite for premium skincare in China and the growing operational discipline behind Yatsen’s recovery story.

Source: PR Newswire