Yatsen Holding Limited (YSG) stock soared 3.72% in the pre-market trading session at the price of $3.90 despite no fundamental reason. The last published news on the company’s website was its financial results for the second quarter of 2021. YSG is an international leader and the most famous beauty market in China. It aims to produce an inspiring new journey of beauty products for its customers.
YSG Second Quarter 2021 Financial Results
On 26th August 2021, YSG published its financial results for the second quarter ended 30th June 2021 and provided corporate updates.
Management Comments
CEO of Yatsen, Mr. Jinfeng Huang, remarked that they are satisfied with their production in the second quarter of 2021. The performance during the quarter resulted from high consumer growth from their brands like Perfect Diary, Pink Bear, and Eve Lom. They are committed to expanding their market share among Gen-A, Gen-Z, and a large group of luxury customers. The company is working on remodeling itself into a booming global multi-brand beauty collection. They will continue to invest in research and development because innovation remains the trademark of their brand. Along with their user-centric value proposition, they will continue to drive their future success, he added.
Chief Financial Officer of YSG, Mr. Donghao Yang, remarked that they had delivered strong growth during the quarter. They have witnessed revenue of RMB1.53 billion with year-over-year revenues growth of 53.5%. Their second-quarter gross margin increased to 65.7% from 61.1% in the corresponding period of 2020. Their non-GAAP net loss margin reduced to 12.8% from 17.4% in the same period of the previous year. The company will keep on working to get sustainable growth for the long-term interests of its investors and customers, he concluded.
Financial Highlights
For the second quarter of 2021, net revenues grew by 53.5% to RMB1.53 billion from RMB993.2 million in the prior-year same quarter. Gross profit for the second quarter ended 30th June 2021 improved by 65.1% to RMB1.00 billion from RMB607.0 million in the quarter ended 30th June 2020. For the second quarter of 2021, the gross margin increased to 65.7% from 61.1% in the same period of last year. Loss from operations during the quarter raised by 24.9% to RMB409.9 million from RMB328.3 million in the same period of 2020. The company reported a net loss of RMB391.2 million for the second quarter of 2021. It represents an increase of 21.6% from RMB321.7 million in the prior-year period.
Leave a Reply