The following is a summary of the Yatsen Holding Limited (YSG) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Yatsen reported Q1 total net revenues of RMB773.4 million, up 1% year-over-year.

• Gross margin improved to 77.7%, primarily driven by the higher sales of gross margin products.

• Net loss margin stood at 15.1%, largely due to the reversal of recognized share-based compensation expenses from the prior year. Non-GAAP net loss margin was 10.8%, on account of increased marketing activities and a strategic shift in channels.

Business Progress:

• The company marked a steady growth in their Cosmetic Brands, showing a 3.2% increase in revenue year-over-year, and a slight increase of 0.1% in their Skincare Brands revenues.

• Several new products were launched for their skincare and cosmetic brands, and there was a committed enhancement towards their research capabilities, leading to an uptick in R&D costs.

• As part of their future strategy, the company plans to continue with brand building and sustainable growth. They foresee the total net revenues for Q2 2024 to hover between RMB858.6 million and RMB901.5 million.

More details: Yatsen IR

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