The Chinese beauty major announced on August 21 its financial results for the second quarter ended June 30, 2025.
Based on the report, total net revenues rose by 36.8% to RMB1.09bn (USD151.7m) from RMB794.5m (USD110.9m) for the prior year period.
According to Yatsen, the increase was primarily due to a 78.7% year-over-year increase (from RMB325.2m (USD45.36m) to RMB581.3m (USD81.1m)) in net revenues from skin care brands, combined with an 8.8% year-over-year increase in net revenues from color cosmetics brands.
Gross profit for Q2 2025 increased by 39.5% to RMB850.4m (USD118.7m) from RMB609.4m (USD85m) for the prior year period, while gross margin increased to 78.3% from 76.7% for the prior year period.
This result was mainly driven by an increase in sales of higher-gross-margin products.
“With the vision of becoming a world-class pioneer in beauty innovation, we remained focused in the second quarter of 2025 on executing our strategy to deliver high-quality products and build strong brand equity, fuelled by our enhanced R&D capabilities.
“Key products, including Galénic’s Brightening Micro Mask, DR.WU’s Purifying Renewal Essence Toner, and Perfect Diary’s Translucent Blurring Setting Powder contributed to our continued growth momentum. Looking ahead, we are committed to the disciplined execution of our R&D-driven strategy, which we believe will further strengthen our position in the beauty industry,” stated Jinfeng Huang, founder, chairman and chief executive officer of Yatsen.
In addition, Donghao Yang, director and chief financial officer of Yatsen, said that the “solid year-on-year growth” in Q2 2025 is boosted by the June 18 shopping festival.
“Specifically, our colour cosmetics brands have returned to a growth trajectory, while our skin care brands maintained strong performance. As operating leverage began to take effect, coupled with our efforts to improve efficiency in our operations and marketing spend, we remain on track to achieve profitable growth,” Yang elaborated.
Expenses and expectations
In Q2 2025, Yatsen’s total operating expenses increased by 21.7% to RMB905.9m (USD126.5m) from RMB744.6m (USD103.94m) for the prior year period.
However, as a percentage of total net revenues, total operating expenses for this quarter were 83.4%, compared to 93.7% for the prior year period.
The expenses were categorised into Fulfillment, General and Administrative, Selling and Marketing, and Research and Development.
In particular, Selling and Marketing expenses for Q2 2025 were RMB722.4m (USD100.8m), compared to RMB544.7 million (USD76m) for the prior year period. Calculated against total net revenues, this figure is a decrease from 68.6% to 66.5%, and is primarily driven by the leveraging effect of higher total net revenues.
R&D expenses for Q2 2025 were RMB36.1m (USD5m), compared to RMB29.7m (USD4.14m) for the prior year period. Relative to total net revenues, this number is a decrease from 3.7% to 3.3%. Similarly, this is stemmed from the leveraging effect of higher total net revenues.
For the third quarter of 2025, Yatsen expects its total net revenues to be between RMB775.6m (USD108.6m) and RMB880.1m (USD122.8m), representing a year-over-year increase of approximately 15% to 30%.
