Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2020shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2020 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | Yatsen Holding Ltd |
Entity Central Index Key | 0001819580 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | true |
Entity Shell Company | false |
Entity Interactive Data Current | No |
Entity File Number | 001-39703 |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | 32-35, 38/F, Poly Midtown Plaza |
Entity Address, Address Line Two | No.23 East Xuanyue Street, Haizhu District |
Entity Address, City or Town | Guangzhou |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 510330 |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Registration Statement | false |
ICFR Auditor Attestation Flag | false |
Document Accounting Standard | U.S. GAAP |
Business Contact | |
Document Information [Line Items] | |
Entity Address, Address Line One | 32-35, 38/F, Poly Midtown Plaza |
Entity Address, Address Line Two | No.23 East Xuanyue Street, Haizhu District |
Entity Address, City or Town | Guangzhou |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 510330 |
Contact Personnel Name | Donghao Yang |
City Area Code | +86 |
Local Phone Number | 20-3837 3543 |
Class A Ordinary Shares | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 1,736,321,157 |
Title of 12(b) Security | Class A ordinary shares, par value US$0.00001 per share |
Security Exchange Name | NYSE |
No Trading Symbol Flag | true |
Class B Ordinary Shares | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 960,852,606 |
American Depositary Shares | |
Document Information [Line Items] | |
Title of 12(b) Security | American Depositary Shares, each representing four Class A ordinary shares, par value US$0.00001 per share |
Trading Symbol | YSG |
Security Exchange Name | NYSE |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Current assets | |||
Cash and cash equivalents | ¥ 5,727,029 | $ 877,706 | ¥ 676,579 |
Restricted cash | 6,363 | 975 | |
Short-term investment | 10,000 | ||
Accounts receivable | 419,317 | 64,263 | 265,302 |
Inventories, net | 616,808 | 94,530 | 504,049 |
Prepayments and other current assets | 304,641 | 46,688 | 115,231 |
Amounts due from related parties | 14,370 | 2,202 | 664 |
Total current assets | 7,088,528 | 1,086,364 | 1,571,825 |
Non-current assets | |||
Investments | 34,862 | 5,343 | |
Property and equipment, net | 285,297 | 43,724 | 109,410 |
Goodwill | 20,596 | 3,156 | 20,596 |
Intangible assets, net | 189,090 | 28,979 | 10,028 |
Deferred tax assets | 597 | 91 | 4,233 |
Right-of-use assets, net | 536,710 | 82,254 | 263,346 |
Other non-current assets | 152,058 | 23,304 | 30,879 |
Total non-current assets | 1,219,210 | 186,851 | 438,492 |
Total assets | 8,307,738 | 1,273,215 | 2,010,317 |
Current liabilities | |||
Accounts payable (including accounts payable of the consolidated VIEs without recourse to the Group of RMB 19,461 and RMB 6,892 as of December 31, 2019 and 2020, respectively) | 466,705 | 71,526 | 400,542 |
Advances from customers (including advances from customers of the consolidated VIEs without recourse to the Group of RMB 3,155 and RMB 6,156 as of December 31, 2019 and 2020, respectively) | 6,228 | 954 | 3,177 |
Accrued expenses and other liabilities (including accrued expenses and other liabilities of the consolidated VIEs without recourse to the Group of RMB 12,120 and RMB 42,874 as of December 31, 2019 and 2020, respectively) | 411,944 | 63,131 | 191,065 |
Amounts due to related parties | 11,814 | 1,811 | |
Income tax payables (including income tax payables of the consolidated VIEs without recourse to the Group of RMB 7,290 and RMB 929 as of December 31, 2019 and 2020, respectively) | 18,686 | 2,864 | 74,644 |
Lease liabilities due within one year | 215,300 | 32,996 | 93,915 |
Total current liabilities | 1,130,677 | 173,282 | 763,343 |
Non-current liabilities | |||
Deferred tax liabilities (including deferred tax liabilities of the consolidated VIEs without recourse to the Group of RMB 1,742 and nil as of December 31, 2019 and 2020) | 1,557 | 239 | 1,742 |
Lease liabilities | 311,910 | 47,802 | 171,045 |
Total non-current liabilities | 313,467 | 48,041 | 172,787 |
Total liabilities | 1,444,144 | 221,323 | 936,130 |
Commitments and contingencies | |||
Mezzanine equity | |||
Total mezzanine equity | 0 | 1,129,987 | |
Shareholders’ equity (deficit) | |||
Ordinary shares | 173 | 27 | 56 |
Treasury shares | (12) | (2) | (20) |
Additional paid-in capital | 11,165,697 | 1,711,218 | |
Statutory reserve | 20,051 | 3,073 | 19,322 |
Retained earnings (Accumulated deficit) | (4,240,134) | (649,829) | (89,590) |
Accumulated other comprehensive income (loss) | (97,265) | (14,907) | 14,432 |
Total Yatsen Holding Limited shareholders' equity (deficit) | 6,848,510 | 1,049,580 | (55,800) |
Non-controlling interests | 15,084 | 2,312 | |
Total shareholders' equity (deficit) | 6,863,594 | 1,051,892 | (55,800) |
Total liabilities, mezzanine equity and shareholders' equity (deficit) | 8,307,738 | $ 1,273,215 | 2,010,317 |
Junior Preferred Shares | |||
Mezzanine equity | |||
Total mezzanine equity | 0 | 46,714 | |
Series B-1 and B-2 Preferred Shares | |||
Mezzanine equity | |||
Total mezzanine equity | 0 | 93,944 | |
Series B-3 Preferred Shares | |||
Mezzanine equity | |||
Total mezzanine equity | 0 | 54,279 | |
Series B-3+ Preferred Shares | |||
Mezzanine equity | |||
Total mezzanine equity | 0 | 110,500 | |
Series C Preferred Shares | |||
Mezzanine equity | |||
Total mezzanine equity | ¥ 0 | ¥ 824,550 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019CNY (¥)shares | Dec. 31, 2019$ / shares |
Accounts payable (including accounts payable of the consolidated VIEs without recourse to the Group of RMB 19,461 and RMB 6,892 as of December 31, 2019 and 2020, respectively) | ¥ 466,705 | $ 71,526 | ¥ 400,542 | |
Advances from customers (including advances from customers of the consolidated VIEs without recourse to the Group of RMB 3,155 and RMB 6,156 as of December 31, 2019 and 2020, respectively) | 6,228 | 954 | 3,177 | |
Accrued expenses and other liabilities (including accrued expenses and other liabilities of the consolidated VIEs without recourse to the Group of RMB 12,120 and RMB 42,874 as of December 31, 2019 and 2020, respectively) | 411,944 | 63,131 | 191,065 | |
Income tax payables (including income tax payables of the consolidated VIEs without recourse to the Group of RMB 7,290 and RMB 929 as of December 31, 2019 and 2020, respectively) | 18,686 | 2,864 | 74,644 | |
Deferred tax liabilities (including deferred tax liabilities of the consolidated VIEs without recourse to the Group of RMB 1,742 and nil as of December 31, 2019 and 2020) | ¥ 1,557 | $ 239 | ¥ 1,742 | |
Temporary equity, shares outstanding | 0 | 0 | 955,159,879 | |
Common stock, par value | $ / shares | $ 0.00001 | $ 0.00001 | ||
Common stock, shares authorized | 10,000,000,000 | 10,000,000,000 | 4,044,840,121 | |
Common stock, shares designated | 3,039,147,394 | 3,039,147,394 | ||
Variable Interest Entity Primary Beneficiary | ||||
Accounts payable (including accounts payable of the consolidated VIEs without recourse to the Group of RMB 19,461 and RMB 6,892 as of December 31, 2019 and 2020, respectively) | ¥ | ¥ 6,892 | ¥ 19,461 | ||
Advances from customers (including advances from customers of the consolidated VIEs without recourse to the Group of RMB 3,155 and RMB 6,156 as of December 31, 2019 and 2020, respectively) | ¥ | 6,156 | 3,155 | ||
Income tax payables (including income tax payables of the consolidated VIEs without recourse to the Group of RMB 7,290 and RMB 929 as of December 31, 2019 and 2020, respectively) | ¥ | 929 | 7,290 | ||
Deferred tax liabilities (including deferred tax liabilities of the consolidated VIEs without recourse to the Group of RMB 1,742 and nil as of December 31, 2019 and 2020) | ¥ | 1,742 | |||
Variable Interest Entity Primary Beneficiary | Without Recourse | ||||
Accounts payable (including accounts payable of the consolidated VIEs without recourse to the Group of RMB 19,461 and RMB 6,892 as of December 31, 2019 and 2020, respectively) | ¥ | 6,892 | 19,461 | ||
Advances from customers (including advances from customers of the consolidated VIEs without recourse to the Group of RMB 3,155 and RMB 6,156 as of December 31, 2019 and 2020, respectively) | ¥ | 6,156 | 3,155 | ||
Accrued expenses and other liabilities (including accrued expenses and other liabilities of the consolidated VIEs without recourse to the Group of RMB 12,120 and RMB 42,874 as of December 31, 2019 and 2020, respectively) | ¥ | 42,874 | 12,120 | ||
Income tax payables (including income tax payables of the consolidated VIEs without recourse to the Group of RMB 7,290 and RMB 929 as of December 31, 2019 and 2020, respectively) | ¥ | ¥ 929 | 7,290 | ||
Deferred tax liabilities (including deferred tax liabilities of the consolidated VIEs without recourse to the Group of RMB 1,742 and nil as of December 31, 2019 and 2020) | ¥ | ¥ 1,742 | |||
Junior Preferred Shares | ||||
Temporary equity, par or stated value per share | $ / shares | $ 0.00001 | 0.00001 | ||
Temporary equity, shares authorized | 390,032,725 | |||
Temporary equity, shares issued | 390,032,725 | |||
Temporary equity, shares outstanding | 0 | 0 | 390,032,725 | |
Temporary equity, redemption value | ¥ | ¥ 40,492 | |||
Series B-1 and B-2 Preferred Shares | ||||
Temporary equity, par or stated value per share | $ / shares | $ 0.00001 | 0.00001 | ||
Temporary equity, shares authorized | 185,793,059 | |||
Temporary equity, shares issued | 185,793,059 | |||
Temporary equity, shares outstanding | 0 | 0 | 185,793,059 | |
Temporary equity, redemption value | ¥ | ¥ 95,907 | |||
Series B-3 Preferred Shares | ||||
Temporary equity, par or stated value per share | $ / shares | $ 0.00001 | 0.00001 | ||
Temporary equity, shares authorized | 85,351,118 | |||
Temporary equity, shares issued | 85,351,118 | |||
Temporary equity, shares outstanding | 0 | 0 | 85,351,118 | |
Temporary equity, redemption value | ¥ | ¥ 54,708 | |||
Series B-3+ Preferred Shares | ||||
Temporary equity, par or stated value per share | $ / shares | $ 0.00001 | 0.00001 | ||
Temporary equity, shares authorized | 87,075,383 | |||
Temporary equity, shares issued | 87,075,383 | |||
Temporary equity, shares outstanding | 0 | 0 | 87,075,383 | |
Temporary equity, redemption value | ¥ | ¥ 114,571 | |||
Series C Preferred Shares | ||||
Temporary equity, par or stated value per share | $ / shares | $ 0.00001 | $ 0.00001 | ||
Temporary equity, shares authorized | 206,907,594 | |||
Temporary equity, shares issued | 206,907,594 | |||
Temporary equity, shares outstanding | 0 | 0 | 206,907,594 | |
Temporary equity, redemption value | ¥ | ¥ 835,972 | |||
Class A Ordinary Shares | ||||
Common stock, shares authorized | 6,000,000,000 | 6,000,000,000 | 3,130,264,924 | |
Common stock, shares issued | 1,736,321,157 | 1,736,321,157 | ||
Common stock, shares outstanding | 1,586,957,585 | 1,586,957,585 | ||
Class B Ordinary Shares | ||||
Common stock, par value | $ / shares | $ 0.00001 | |||
Common stock, shares authorized | 960,852,606 | 960,852,606 | 914,575,197 | |
Common stock, shares issued | 960,852,606 | 960,852,606 | 914,575,197 | |
Common stock, shares outstanding | 939,496,191 | 939,496,191 | 567,335,222 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2018CNY (¥)¥ / sharesshares | |
Income Statement [Abstract] | ||||
Total net revenues | ¥ 5,233,170 | $ 802,018 | ¥ 3,031,167 | ¥ 635,316 |
Total cost of revenues | (1,869,145) | (286,459) | (1,103,509) | (232,073) |
Gross profit | 3,364,025 | 515,559 | 1,927,658 | 403,243 |
Operating expenses: | ||||
Fulfilment expenses | (425,052) | (65,142) | (300,122) | (81,270) |
Selling and marketing expenses | (3,412,159) | (522,936) | (1,251,270) | (309,331) |
General and administrative expenses | (2,142,973) | (328,425) | (209,326) | (43,315) |
Research and development expenses | (66,512) | (10,193) | (23,179) | (2,641) |
Total operating expenses | (6,046,696) | (926,696) | (1,783,897) | (436,557) |
Income (loss) from operations | (2,682,671) | (411,137) | 143,761 | (33,314) |
Financial (expenses) income | 14,313 | 2,194 | 5,320 | (214) |
Foreign currency exchange losses | (2,774) | (425) | (62) | (433) |
Other non-operating expenses | (10,313) | (1,581) | (1,684) | (139) |
Fair value loss on a forward liability | ¥ | (2,014) | |||
Income (loss) before income tax expenses | (2,681,445) | (410,949) | 147,335 | (36,114) |
Income tax expenses | (6,970) | (1,068) | (71,976) | (4,010) |
Net income (loss) | (2,688,415) | (412,017) | 75,359 | (40,124) |
Less: Net income (loss) attributable to the non-controlling interests | (608) | (93) | ||
Net income (loss) attributable to the Yatsen Holding Limited's shareholders | (2,687,807) | (411,924) | 75,359 | (40,124) |
Accretion to preferred shares | (242,209) | (37,120) | (59,200) | (3,465) |
Deemed dividends due to modification of preferred shares | (1,054,220) | (161,566) | (61,239) | (3,521) |
Net income (loss) attributable to ordinary shareholders of Yatsen Holding Limited | ¥ (3,984,236) | $ (610,610) | ¥ (45,080) | ¥ (47,110) |
Net income (loss) per ordinary share | ||||
Net income (loss) per ordinary share-basic | (per share) | ¥ (4.78) | $ (0.73) | ¥ (0.10) | ¥ (0.17) |
Net income (loss) per ordinary share-diluted | (per share) | ¥ (4.78) | $ (0.73) | ¥ (0.10) | ¥ (0.17) |
Weighted average number of ordinary shares used in computing net income (loss) per ordinary share | ||||
Ordinary shares—basic | 833,714,126 | 833,714,126 | 450,499,736 | 271,261,594 |
Ordinary shares—diluted | 833,714,126 | 833,714,126 | 450,499,736 | 271,261,594 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income (loss) | ¥ (2,688,415) | $ (412,017) | ¥ 75,359 | ¥ (40,124) |
Other comprehensive income (loss) | ||||
Foreign currency translation adjustment, net of nil tax | (111,697) | (17,118) | 13,822 | 240 |
Total comprehensive income (loss) | (2,800,112) | (429,135) | 89,181 | (39,884) |
Less: Comprehensive income (loss) attributable to the non-controlling interests | (608) | (93) | ||
Comprehensive income (loss) attributable to the Yatsen Holding Limited’s shareholders | ¥ (2,799,504) | $ (429,042) | ¥ 89,181 | ¥ (39,884) |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Foreign currency translation adjustment, tax | ¥ 0 | $ 0 | ¥ 0 | ¥ 0 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (DEFICIT) ¥ in Thousands, $ in Thousands | CNY (¥)shares | USD ($)shares | Ordinary SharesCNY (¥)shares | Treasury SharesCNY (¥)shares | Additional Paid-in CapitalCNY (¥) | Statutory ReservesCNY (¥) | Retained Earnings (Accumulated Deficit)CNY (¥) | Accumulated Other Comprehensive Income (Loss)CNY (¥) | Non-controlling interestsCNY (¥) |
Balance at Dec. 31, 2017 | ¥ (19,475) | ¥ 48 | ¥ (35) | ¥ (19,858) | ¥ 370 | ||||
Balance, shares at Dec. 31, 2017 | shares | 788,430,000 | (591,322,500) | |||||||
Vesting of founders' restricted shares | 9,793 | ¥ 12 | ¥ 9,781 | ||||||
Vesting of founders' restricted shares, shares | shares | 197,107,500 | ||||||||
Repurchases of ordinary shares | ¥ (6,161) | ¥ (1) | (6,160) | ||||||
Repurchases of ordinary shares, shares | shares | (14,503,820) | (14,503,820) | (14,503,820) | ||||||
Deemed share-based compensation related to repurchases of ordinary shares | ¥ 4,238 | 4,238 | |||||||
Accretion on preferred shares to redemption value | (3,465) | (3,465) | |||||||
Deemed dividend due to modification of preferred shares | (3,521) | (3,521) | |||||||
Net income (loss) | (40,124) | (40,124) | |||||||
Foreign currency translation adjustment | 240 | 240 | |||||||
Balance at Dec. 31, 2018 | (58,475) | ¥ 47 | ¥ (23) | 873 | (59,982) | 610 | |||
Balance, shares at Dec. 31, 2018 | shares | 773,926,180 | (394,215,000) | |||||||
Issuances of restricted shares to founders | ¥ 10 | ¥ (10) | |||||||
Issuances of restricted shares to founders, shares | shares | 157,846,049 | (157,846,049) | |||||||
Vesting of founders' restricted shares | 50,837 | ¥ 13 | 50,824 | ||||||
Vesting of founders' restricted shares, shares | shares | 204,821,074 | ||||||||
Repurchases of ordinary shares | ¥ (41,062) | ¥ (1) | (41,061) | ||||||
Repurchases of ordinary shares, shares | shares | (17,197,032) | (17,197,032) | (17,197,032) | ||||||
Deemed share-based compensation related to repurchases of ordinary shares | ¥ 24,158 | 24,158 | |||||||
Accretion on preferred shares to redemption value | (59,200) | (59,200) | |||||||
Deemed dividend due to modification of preferred shares | (61,239) | (34,794) | (26,445) | ||||||
Appropriation to statutory reserves | ¥ 19,322 | (19,322) | |||||||
Net income (loss) | 75,359 | 75,359 | |||||||
Foreign currency translation adjustment | 13,822 | 13,822 | |||||||
Balance at Dec. 31, 2019 | (55,800) | ¥ 56 | ¥ (20) | 19,322 | (89,590) | 14,432 | |||
Balance, shares at Dec. 31, 2019 | shares | 914,575,197 | (347,239,975) | |||||||
Issuances of restricted shares to founders | ¥ 6 | ¥ (6) | |||||||
Issuances of restricted shares to founders, shares | shares | 93,753,239 | (93,753,239) | |||||||
Share-based compensation of founders' restricted shares | 1,030,178 | ¥ 26 | 1,030,152 | ||||||
Share-based compensation of founders' restricted shares, shares | shares | 440,993,214 | ||||||||
Repurchases of ordinary shares | ¥ (483,622) | ¥ (4) | (351,328) | (132,290) | |||||
Repurchases of ordinary shares, shares | shares | (62,388,247) | (62,388,247) | (62,388,247) | ||||||
Deemed share-based compensation related to repurchases of ordinary shares | ¥ 146,294 | 146,294 | |||||||
Issuances of shares due to exercise of share options | ¥ 1 | (1) | |||||||
Issuances of shares due to exercise of share options | shares | 15,518,385 | ||||||||
Share-based compensation related to accelerated vesting of share options | 138,729 | 138,729 | |||||||
Share-based compensation related to vesting of share options | 279,908 | 279,908 | |||||||
Issuances of shares to Share Incentive Plan Trust | ¥ 12 | ¥ (12) | |||||||
Issuances of shares to Share Incentive Plan Trust, shares | shares | 170,719,987 | (170,719,987) | |||||||
Accretion on preferred shares to redemption value | (242,209) | $ (37,120) | (242,209) | ||||||
Deemed dividend due to modification of preferred shares | (1,054,220) | (1,054,220) | |||||||
Deemed repurchase of ordinary shares resulting from redesignation of founder’s ordinary shares to preferred shares | (33,290) | ¥ (1) | (33,289) | ||||||
Deemed repurchase of ordinary shares resulting from redesignation of founder’s ordinary shares to preferred shares, shares | shares | (6,443,998) | ||||||||
Appropriation to statutory reserves | 729 | (729) | |||||||
Net income (loss) | (2,688,415) | (412,017) | (2,687,807) | ¥ (608) | |||||
Foreign currency translation adjustment | (111,697) | $ (17,118) | (111,697) | ||||||
Conversion of convertible redeemable preferred shares | ¥ 5,569,318 | ¥ 85 | 5,569,233 | ||||||
Conversion of convertible redeemable preferred shares,shares | shares | 1,301,189,200 | 1,301,189,200 | 1,301,189,200 | ||||||
Issuance of ordinary shares upon initial public offering | ¥ 4,352,728 | ¥ 18 | 4,352,710 | ||||||
Issuance of ordinary shares upon initial public offering, shares | shares | 270,250,000 | ||||||||
Capital injection from non-controlling interests | 15,692 | 15,692 | |||||||
Balance at Dec. 31, 2020 | ¥ 6,863,594 | $ 1,051,892 | ¥ 173 | ¥ (12) | ¥ 11,165,697 | ¥ 20,051 | ¥ (4,240,134) | ¥ (97,265) | ¥ 15,084 |
Balance, shares at Dec. 31, 2020 | shares | 2,697,173,763 | (170,719,987) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Cash Flows from Operating Activities | ||||
Net income (loss) | ¥ (2,688,415) | $ (412,017) | ¥ 75,359 | ¥ (40,124) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||||
Depreciation of property and equipment | 74,551 | 11,425 | 13,010 | 389 |
Amortization of intangible assets | 3,476 | 533 | 907 | 113 |
Share-based compensation | 1,900,588 | 291,278 | 74,995 | 14,031 |
Amortization of right-of-use assets | 185,843 | 28,482 | 53,752 | 3,615 |
Fair value loss on a forward liability | 2,014 | |||
Inventory provision | 21,496 | 3,294 | 1,018 | 2,526 |
Deferred income tax expenses (benefits) | 3,451 | 529 | (3,695) | 2,292 |
Loss on disposal of property and equipment | 15,072 | 2,310 | 747 | 143 |
Loss on disposal of intangible assets | 27 | 4 | ||
Share of loss from equity investment | 293 | 45 | ||
Provision for expected credit loss | 2,643 | 405 | ||
Changes in operating assets and liabilities: | ||||
Accounts receivable | (154,015) | (23,604) | (200,554) | (59,929) |
Prepayments and other current assets | (190,621) | (29,214) | (89,475) | (2,042) |
Inventories | (134,255) | (20,575) | (411,111) | (77,791) |
Other non-current assets | (25,752) | (3,947) | (18,803) | (12,056) |
Amounts due from related parties | (564) | (86) | 66,692 | (65,411) |
Amounts due to related parties | 11,814 | 1,811 | ||
Accounts payable | 66,163 | 10,140 | 310,320 | 81,204 |
Accrued expenses and other liabilities | 174,698 | 26,773 | 96,951 | 55,987 |
Advances from customers | 3,051 | 468 | 3,176 | (299) |
Income tax payables | (55,958) | (8,576) | 72,926 | 2,490 |
Lease liabilities | (196,954) | (30,185) | (52,394) | (3,359) |
Net Cash used in Operating Activities | (983,368) | (150,707) | (6,179) | (96,207) |
Cash Flows from Investing Activities | ||||
Purchases of intangible assets | (159,010) | (24,369) | (2,421) | (1,049) |
Purchases of property and equipment | (225,569) | (34,570) | (106,339) | (3,828) |
Proceeds from disposal of property and equipment | 471 | 72 | ||
Purchases of short-term investments | (70,000) | |||
Sales of short-term investments | 10,000 | 1,533 | 60,000 | |
Acquisition of businesses, net of cash and cash equivalents acquired | (3,196) | (490) | (29,412) | |
Investments on equity investments | (35,552) | (5,449) | (3,000) | |
Pre-paid consideration for an acquisition | 95,976 | 14,709 | ||
Net Cash used in Investing Activities | (508,832) | (77,982) | (148,172) | (7,877) |
Cash Flows from Financing Activities | ||||
Proceeds from short-term borrowings | 10,000 | 1,533 | 14,417 | 45,001 |
Repayments for short-term borrowings | (10,000) | (1,533) | (17,317) | (42,101) |
Proceeds from issuance of preferred shares, net of issuance costs | 3,868,594 | 592,888 | 895,686 | 140,778 |
Proceeds from issuance of ordinary shares, net of issuance costs | 4,380,213 | 671,297 | ||
Repaid capital to a shareholder to facilitate the Reorganization | (20,000) | |||
Repayment of a shareholder receivable resulting from Reorganization | 20,000 | |||
Repurchases of ordinary shares | (491,167) | (75,275) | (47,255) | |
Repurchases of preferred shares | (1,076,771) | (165,022) | (70,300) | |
Net Cash provided by Financing Activities | 6,680,869 | 1,023,888 | 795,231 | 123,678 |
Effect of exchange rate changes on cash and cash equivalents and restricted cash | (131,856) | (20,208) | 10,637 | 790 |
Net increase in cash and cash equivalents and restricted cash | 5,056,813 | 774,991 | 651,517 | 20,384 |
Cash and cash equivalents and restricted cash at the beginning of the year | 676,579 | 103,690 | 25,062 | 4,678 |
Cash and cash equivalents and restricted cash at the end of the year | 5,733,392 | 878,681 | 676,579 | 25,062 |
Supplemental disclosures of cash flow information | ||||
Income taxes paid | (59,437) | (9,109) | (2,745) | |
Cash paid for interest | (93) | (14) | (429) | (287) |
Supplemental schedule of non-cash investing and financing activities | ||||
Purchases of property and equipment | 40,412 | 6,193 | 13,017 | 283 |
Repurchase of ordinary shares | ¥ 6,194 | |||
Disposal of an equity method investment | 3,000 | |||
Consideration payable for business combination | ¥ 3,196 | |||
Deemed repurchase of ordinary shares resulting from redesignation of Founder’s ordinary shares to preferred shares | 35,142 | 5,386 | ||
Capital injection from non-controlling interests | ¥ 15,692 | $ 2,405 |
Principal Activities and Reorga
Principal Activities and Reorganization | 12 Months Ended |
Dec. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Principal Activities and Reorganization | 1. PRINCIPAL ACTIVITIES AND REORGANIZATION (a) Principal activities Yatsen Holding Limited (the “Company”) was incorporated in the Cayman Islands on September 12, 2016. The Company, through its consolidated subsidiaries, variable interest entities (“VIEs”) and VIE’s subsidiaries, collectively referred to as the "Group", is primarily engaged in selling color cosmetics and is a consumer-centric, technology and data-driven beauty platform in the People's Republic of China ("the PRC"). The Company was listed on the New York Stock Exchange on November 19, 2020. As of December 31, 2020, details of the Company's principal subsidiaries and VIE were as follows: Place of Date of Percentage of incorporation incorporation beneficial ownership Principal activities Wholly owned subsidiaries: Guangzhou Yatsen Global Co., Ltd.(“Guangzhou Yatsen”) PRC July 29, 2015 100% Cosmetics Sales Guangzhou Yatsen Cosmetics Co., Ltd. PRC March 24, 2017 100% Cosmetics Sales Guangzhou Yiyan Cosmetics Co., Ltd. PRC April 15, 2019 100% Cosmetics Sales Aoyan (Shanghai) Cosmetics Trading Co., Ltd.(“Aoyan”) PRC June 4, 2019 100% Cosmetics Sales VIE: Huizhi Weimei (Guangzhou) Trading Co., Ltd.(“HZ VIE”) PRC February 22, 2019 100% Cosmetics Sales (b) Reorganization The Group commenced its business operations in July 2016 through Guangzhou Yatsen, a PRC company. Guangzhou Yatsen completed several rounds of financing in 2017 and 2018 (refer to Note 18). To facilitate offshore financing, an offshore corporate structure was formed in September 2018 (the “Reorganization”), which was carried out as follows: (1) In September 2016, the Company was incorporated in the Cayman Islands, and established Yatsen (HK) Limited ("Yatsen HK") in Hong Kong as a wholly owned subsidiary of the Company; (2) In September 2018, Yatsen HK acquired 100% of the equity interests in Guangzhou Yatsen from its shareholders with nil consideration; (3) The Company concurrently issued ordinary shares, Series Seed preferred shares As the shareholdings in the Company and Guangzhou Yatsen were with a high degree of common ownership immediately before and after the Reorganization, the transaction of the Reorganization was determined to be a recapitalization and accounted for in a manner similar to a common control transaction. The assets and liabilities have been stated at historical carrying amounts. The number of outstanding shares in the consolidated balance sheets, the consolidated statements of changes in shareholders’ equity (deficit), and per share information including the net loss per share have been presented retrospectively as of the beginning of the earliest period presented to be comparable with the final number of shares issued in the Reorganization. Accordingly, the effect of the ordinary shares and the preferred shares issued by the Company pursuant to the Reorganization have been presented retrospectively as of the beginning of the earliest period presented or the original issue date, whichever is later, as if such shares were issued by the Company when the Group issued such interests. 1. PRINCIPAL ACTIVITIES AND REORGANIZATION (Continued) (c) VIE Arrangements between the VIEs and the Company's PRC subsidiary To comply with the relevant PRC laws and regulations, the Group operates its internet-based business, in which foreign investment is restricted or prohibited, through its VIEs. The Group obtained the control of the VIEs by entering into a series of contractual arrangements with the VIEs or their equity holders as follows: Powers of Attorney The shareholders of VIEs, have each executed a power of attorney to irrevocably appoint Guangzhou Yatsen or its designated person as their attorney-in-fact to exercise all of their rights as shareholders of VIEs, including, but not limited to, the right to convene and attend shareholder meetings, vote on any resolution that requires a shareholder vote, such as the appointment or removal of directors and executive officers, and other voting rights pursuant to the then-effective articles of association of VIEs. The power of attorney will remain in force for so long as the controlling shareholders remain the shareholders of VIEs. Exclusive Technology Consulting and Service Agreement Under the exclusive technology consulting and service agreement between Guangzhou Yatsen and VIEs, Guangzhou Yatsen has the exclusive right to provide to VIEs technology consulting and services related to, among other things, research and development, system operation, advertising, internal training and technical support. Guangzhou Yatsen has the exclusive ownership of intellectual property rights created as a result of the performance of this agreement. In exchange, VIEs agree to pay Guangzhou Yatsen an annual service fee, at an amount that is agreed by Guangzhou Yatsen. Unless Guangzhou Yatsen provides valid notice of termination 30 days prior to the term of agreement ending, this agreement will remain effective for 10 years to be automatically renewed for another 10 years thereafter. Equity Pledge Agreement Pursuant to the equity pledge agreement among Guangzhou Yatsen, VIEs, and the shareholders of VIEs, the shareholders pledged all of their equity interests in VIEs to guarantee their and VIEs’ performance of their obligations under the contractual arrangements including the exclusive technology consulting and service agreement, the exclusive option agreement and the power of attorney. In the event of a breach by VIEs or their shareholders of contractual obligations under these agreements, Guangzhou Yatsen, as pledgee, will have the right to dispose of the pledged equity interests in VIEs. The shareholders of VIEs also undertake that, during the term of the equity pledge agreement, they will not dispose of the pledged equity interests or create or allow any encumbrance on the pledged equity interests. During the term of the equity pledge agreement, Guangzhou Yatsen has the right to receive all of the dividends and profits distributed on the pledged equity interests. As of the date of this annual report, the equity pledge for the Company’s variable interest equity has been registered with local PRC authorities. Exclusive Call Option Agreement Pursuant to the exclusive call option agreement between Guangzhou Yatsen, VIEs and their shareholders, the shareholders of VIEs irrevocably grant Guangzhou Yatsen an exclusive option to purchase, at its discretion, or have its designated person to purchase, to the extent permitted under PRC law, all or part of the equity interests in VIEs. The purchase price shall be the lowest price permitted by applicable PRC law. In addition, VIEs have granted Guangzhou Yatsen an exclusive option to purchase, at its discretion, or have its designated person to purchase, to the extent permitted under PRC law, all or part of VIEs’ assets at the book value of such assets, or at the lowest price permitted by applicable PRC law, whichever is higher. The shareholders of VIEs undertake that, without the Company’s prior written consent or the prior written consent of Guangzhou Yatsen, they may not increase or decrease the registered capital, dispose of its assets, incur any debt or guarantee liabilities, enter into any material purchase agreements, conduct any merger, acquisition or investments, amend its articles of association or provide any loans to third parties. The exclusive call option agreement will remain effective until all equity interest in VIEs held by their shareholders and all assets of VIEs are transferred or assigned to Guangzhou Yatsen or its designated representatives. 1. PRINCIPAL ACTIVITIES AND REORGANIZATION (Continued) (c) VIE Arrangements between the VIEs and the Company's PRC subsidiary (Continued) Under accounting principles generally accepted in the United States of America (“U.S. GAAP”), a VIE is consolidated if the Company bears the risks and enjoys the rewards normally associated with, ownership of the entity. Through these contractual agreements, the Company has the power to direct the activities that most significantly impact the VIEs’ economic performance, bears the risks of and enjoys the rewards normally associated with ownership of the VIEs. Therefore, the Company is the ultimate primary beneficiary of the VIEs and the financial results of the VIEs are included in the Group’s consolidated financial statements. The Company’s PRC variable interest entity, HZ VIE, developed e-commerce platforms for the business and holds an ICP license. The following consolidated financial information of the consolidated VIEs is included in the accompanying consolidated financial statements as of and for the year ended: As of December 31, 2019 2020 RMB RMB Cash and cash equivalents 3,022 31,147 Accounts receivable 9,492 7,331 Inventories, net 14,683 1,050 Prepayments and other current assets 11,772 15,973 Amounts due from non-VIE subsidiaries 49,536 111 Total current assets 88,505 55,612 Property and equipment, net 2,036 16,020 Goodwill 20,596 - Intangible assets, net 6,997 289 Deferred tax assets 133 - Other non-current assets - 457 Total non-current assets 29,762 16,766 Total assets 118,267 72,378 Accounts payable 19,461 6,892 Advances from customers 3,155 6,156 Accrued expenses and other liabilities 12,120 42,874 Income tax payables 7,290 929 Amounts due to non-VIE subsidiaries 60,711 50,591 Total current liabilities 102,737 107,442 Deferred tax liabilities 1,742 - Total liabilities 104,479 107,442 1. PRINCIPAL ACTIVITIES AND REORGANIZATION (Continued) (c) VIE Arrangements between the VIEs and the Company's PRC subsidiary (Continued) Year ended December 31, 2019 2020 RMB RMB Net revenues 251,385 907,735 Net income (loss) (15,066) (176,187) Net cash provided by operating activities 3,022 47,830 Net cash used in investing activities - (17,102) Net cash used in financing activities - (2,603) Net increase in cash and cash equivalents 3,022 28,125 (1) Aoyan was acquired through a series of contractual arrangements entered on June 4, 2019 that enabled the Group to control Aoyan and to receive all rewards associated with equity ownership. The Group subsequently entered a series of VIE arrangements described in Note 1.(c) to replace the above contracts on May 8, 2020. The Group acquired 100% of the equity interest of Aoyan for no consideration on July 17, 2020 and terminated all VIE arrangements for Aoyan. Therefore, Aoyan was treated as one of the Group’s consolidated VIEs for the period from June 4, 2019 to July 17, 2020. Financial information of Aoyan after July 17, 2020 was excluded from the consolidated financial information of the consolidated VIEs disclosed above. In accordance with the aforementioned agreements, the Company has the power to direct activities of the VIEs, and can have assets transferred out of VIEs. Therefore, the Company considers that there is no asset in VIEs that can be used only to settle obligations of the VIEs, except for registered capital, as of December 31, 2020. As VIEs were incorporated as limited liability companies under the PRC Company Law, the creditors do not have recourse to the general credit of the Company for all the liabilities of VIEs. There is currently no contractual arrangement that would require the Company to provide additional financial support to the VIEs. As the Group is conducting certain businesses in the PRC through the VIEs, the Group may provide additional financial support on a discretionary basis in the future, which could expose the Group to a loss. There is no VIEs where the Company has variable interest but is not the primary beneficiary. The Group believes that the contractual arrangements among its shareholders and Guangzhou Yatsen comply with PRC law and are legally enforceable. However, uncertainties in the PRC legal system could limit the Company’s ability to enforce these contractual arrangements and if the shareholders of VIEs were to reduce their interest in the Company, their interests may diverge from that of the Company and that may potentially increase the risk that they would seek to act contrary to the contractual terms. The Company’s ability to control the VIEs also depends on the voting rights proxy and the effect of the share pledge under the Equity Pledge Agreement and Guangzhou Yatsen has to vote on all matters requiring shareholder approval in VIEs. As noted above, the Company believes this voting right proxy is legally enforceable but may not be as effective as direct equity ownership. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | 2. SIGNIFICANT ACCOUNTING POLICIES (a) Basis of presentation The consolidated financial statements of the Group have been prepared in accordance with U.S. GAAP. Significant accounting policies followed by the Group in the preparation of the consolidated financial statements are summarized below. (b) Basis of consolidation The Group's consolidated financial statements include the financial statements of the Company, its subsidiaries and VIEs for which the Company or its subsidiary is the primary beneficiary. All transactions and balances among the Company, its subsidiaries and VIEs have been eliminated upon consolidation. A subsidiary is an entity in which the Company, directly or indirectly, controls more than one half of the voting powers; or has the power to appoint or remove the majority of the members of the board of directors; or to cast a majority of votes at the meeting of directors; or has the power to govern the financial and operating policies of the investee under a statute or agreement among the shareholders or equity holders. 2. SIGNIFICANT ACCOUNTING POLICIES (Continued) (b) Basis of consolidation (Continued) A VIE is an entity in which the Company, or its subsidiary, through contractual agreements, bears the risks of, and enjoys the rewards normally associated with ownership of the entity, and therefore the Company or its subsidiary is the primary beneficiary of the entity. All transactions and balances between the Company, its subsidiaries and VIEs have been eliminated upon consolidation. (c) Use of estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the consolidated financial statements and accompanying notes. Significant accounting estimates reflected in the Group's consolidated financial statements include revenue recognition, inventory provision, fair value of preferred shares, determination of share-based compensation expenses, valuation allowance for deferred tax assets, the discount rate for lease. Actual results could differ from those estimates, and such differences may be material to the consolidated financial statements. Beginning in January 2020, the outbreak of 2019 novel coronavirus ("COVID-19") has severely impacted China and the rest of the world. The Group’s business and operations have also been affected as a result. As a result of uncertainty and frequently changing information regarding the COVID-19 pandemic and its impact on global economic conditions, estimates may change frequently and in the near term, especially for inventory provision. Due to market conditions and consumer demand being less favourable than the Group expected as a result of the impacts of COVID-19, the Group recorded an inventory provision of RMB20,948 as of December 31, 2020. (d) Functional currency and foreign currency translation The Group uses Renminbi (“RMB”) as its reporting currency. The functional currency of the Company and its subsidiaries incorporated in Hong Kong and Cayman Islands is United States dollar (“US$”), and in France is Euro (“EUR€”), while the functional currency of the Group’s entities in PRC is RMB, which is their respective local currency. In the consolidated financial statements, the financial information of the Company and its subsidiaries, which use foreign currency as their functional currency, have been translated into RMB. Assets and liabilities are translated at the exchange rates on the balance sheet date, equity amounts are translated at historical exchange rates, and revenues, expenses, gains, and losses are translated using the average exchange rate for the period. Translation adjustments arising from these are reported as foreign currency translation adjustments and are shown as a component of other comprehensive income (loss) in the consolidated statement of comprehensive income (loss). Foreign currency transactions denominated in currencies other than functional currency are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are remeasured at the applicable rates of exchange in effect at that date. Foreign exchange gains and losses resulting from the settlement of such transactions and from remeasurement at year-end are recognized in foreign currency exchange gains (losses), net in the consolidated statement of operations. (e) Convenience translation Translations of balances in the consolidated balance sheets, consolidated statements of operations, consolidated statements of comprehensive income (loss) and consolidated statements of cash flows from RMB into US$ as of and for the year ended December 31, 2020 are solely for the convenience of the reader and were calculated at the noon buying rate of US$ 1.00 = RMB6.5250 on December 31, 2020 as set forth in the H.10 statistical release of the U.S. Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on December 31, 2020, or at any other rate. (f) Cash and cash equivalents Cash includes currency on hand and deposits held by financial institutions that can be added to or withdrawn without limitation. Cash equivalents represent short-term and highly liquid investments placed with banks, and all highly liquid investments with original maturities of three months or less. 2. SIGNIFICANT ACCOUNTING POLICIES (Continued) (g) Restricted cash Restricted cash as of December 31, 2020 primarily represents bank balance of RMB5,715 which is restricted for settlement of certain liabilities. The Group did not have any restricted cash as of December 31, 2019. (h) Short-term investments For short-term investments in financial instruments with a variable interest rate indexed to the performance of underlying assets, the Company elected the fair value method at the date of initial recognition and carried these investments subsequently at fair value. Changes in fair values are reflected in the consolidated statements of operations. (i) Accounts receivable Accounts receivable are stated at the historical carrying amount net of allowance for doubtful accounts. The accounts receivable mainly include receivables from platform distributor customers as well as receivables from independent payment channels or payment channel functions operated by platforms, who collect from end customers on behalf of the Group before the Group’s delivery of products (“Payment Channels”). The receivable from platform distributor customers is settled in accordance with credit terms mutually agreed. The receivable from Payment Channels is settled upon pre-agreed days after the Group delivers products to end customers, or when customers confirm their receipts of products, whichever is earlier. The allowance for doubtful accounts reflects the Group’s best estimate of expected losses. Before January 1, 2020, the Group determines the allowance for doubtful accounts based on an assessment of historical collection activity, the current business environment and forecasts that may affect the customers' ability to pay. From January 1, 2020, the Group determines the expected credit loss provisions based on ASC Topic 326, detailed as Note 2(j). (j) Expected credit losses The Group adopted the accounting standards update of ASC Topic 326 and several associated ASUs related to the measurement of credit losses on January 1, 2020 using a modified retrospective approach, which did not have a material impact on retained earnings (accumulated deficit). The Group’s accounts receivable and other receivables classified as other current assets and other non-current assets are within the scope of ASC Topic 326. The Group has identified the relevant risk characteristics of its customers and the related receivables and other receivables which include size, type of the services or products the Group provides, or a combination of these characteristics. Receivables with similar risk characteristics have been grouped into pools. For each pool, the Group considers the historical credit loss experience, current economic conditions, supportable forecasts of future economic conditions, and any recoveries in assessing the lifetime expected credit losses. Other key factors that influence the expected credit loss analysis include customer demographics, payment terms offered in the normal course of business to customers, and industry-specific factors that could impact the Group’s receivables. Additionally, external data and macroeconomic factors are also considered. This is assessed at each quarter based on the Group’s specific facts and circumstances. The Group’s accounts receivable primarily include (i) receivables from the e-commerce platform distributors who sell products to their end customers on prepayment term and therefore are subject to limited credit loss risk from their customers, and (ii) receivables from Payment Channels who collect from the Group’s end customers on behalf of the Group before the delivery of products. Based on such industry practice and considering no significant bad debt expense incurred historically, the Group expected no significant credit losses will be incurred for accounts receivable. For the year ended December 31, 2020, the Group recorded RMB2,643 expected credit loss expense in general and administrative expenses for other receivables. No allowance was made for the accounts receivable and other receivables for the year ended December 31, 2018 and 2019. 2. SIGNIFICANT ACCOUNTING POLICIES (Continued) (k) Inventories, net Inventories are stated at the lower of cost or net realizable value. Cost is determined using the weighted average method. Provisions are made for excessive, slow moving, expired and obsolete inventories as well as for inventories with carrying values in excess of market. Certain factors could impact the realizable value of inventory, so the Group continually evaluates the recoverability based on assumptions about customer demand and market conditions. The evaluation may take into consideration historical usage, inventory aging, expiration date, expected demand, anticipated sales price, new product development schedules, the effect new products might have on the sale of existing products, product obsolescence, customer concentrations, and other factors. The provision is equal to the difference between the cost of inventory and the estimated net realizable value based upon assumptions about future demand and market conditions. If actual market conditions are less favorable than those projected by management, additional inventory provision may be required that could negatively impact the Group’s gross margin and operating results. If actual market conditions are more favorable, the Group may have higher gross margin when products that have been previously provided for are eventually sold. ( l ) Property and equipment is carried at cost less accumulated depreciation and impairment, if any. Depreciation is calculated on a straight-line basis over the following estimated useful lives. Category Estimated useful lives Machinery 3 years Electronic equipment 3 years Office furniture and equipment 3 years Vehicles 4 years Leasehold improvements Shorter of the term of the lease or the estimated useful lives of the assets Repairs and maintenance costs are charged to expenses as incurred, whereas the costs of renewals and betterment that extend the useful lives of property and equipment are capitalized as additions to the related assets. The Group recognizes the gain or loss on the disposal of property and equipment in the consolidated statements of operations. Construction in progress represents direct costs that are related to the construction of property and equipment and incurred in connection with bringing the assets to their intended use. The costs of construction in progress are transferred to specific property and equipment accounts and the depreciation of these assets commences when the assets are ready for their intended use. ( m ) Intangible assets, net Intangible assets purchased from third parties are initially recorded at cost and amortized on a straight-line basis over the estimated economic useful lives. The acquired intangible assets are recognized and measured at fair value and are expensed or amortized using the straight-line approach over the estimated economic useful lives of the assets. The estimated useful lives of intangible assets are as follows: Category Estimated useful lives Trademarks 9-15 years Software 5 years 2. SIGNIFICANT ACCOUNTING POLICIES (Continued) ( n ) Goodwill Goodwill represents the excess of the purchase price over the amounts assigned to the fair value of the identifiable assets acquired and the liabilities assumed of an acquired business. Goodwill assessment for impairment is performed on at least an annual basis as of December 31 or whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. Prior to the adoption of ASU No. 2017-04, the Group performs a two-step goodwill impairment test. The first step compares the fair values of each reporting unit to its carrying amount, including goodwill. If the fair value of a reporting unit exceeds its carrying amount, goodwill is not considered impaired and the second step will not be required. If the carrying amount of a reporting unit exceeds its fair value, the second step compares the implied fair value of the affected reporting unit’s goodwill to the carrying value of that goodwill. The implied fair value of goodwill is determined in a manner similar to accounting for a business combination with the allocation of the assessed fair value determined in the first step to the assets and liabilities of the reporting unit. The excess of the fair value of the reporting unit over the amounts assigned to the assets and liabilities is the implied fair value of goodwill. An impairment loss is recognized for any excess in the carrying value of goodwill over the implied fair value of goodwill. The judgment in estimating the fair value of reporting units includes estimating future cash flows, determining appropriate discount rates and making other assumptions. Changes in these estimates and assumptions could materially affect the determination of the fair value of each reporting unit. In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment by removing Step 2. An entity will, therefore, perform the goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and recognizing an impairment charge for the amount by which the carrying amount exceeds the fair value, not to exceed the total amount of goodwill allocated to the reporting unit. An entity still has the option to perform a qualitative assessment to determine if the quantitative impairment test is necessary. The initial impact of applying ASU 2017-04 on consolidated financial statements has no impact to the retained earnings (accumulated deficit) as of January 1, 2020. No impairment provision was made for the years ended December 31, 2018, 2019 and 2020. ( o ) Investments 1) Equity investments accounted for using the equity method The Group accounts for its equity investments over which it has significant influence but does not own a majority equity interest or otherwise control using the equity method. The Group adjusts the carrying amount of the investment and recognizes investment income or loss for its share of the earnings or losses of the investee after the date of investment. 2) Equity investments without readily determinable fair values The Group elected to record equity investments without readily determinable fair values and not accounted for by the equity method at cost, less impairment, adjusted for subsequent observable price changes, and will report changes in the carrying value of the equity investments in current earnings. Changes in the carrying value of the equity investment will be required to be made whenever there are observable price changes in orderly transactions for the identical or similar investment of the same issuer. The Group monitors its investments for other-than-temporary impairment by considering factors including, but not limited to, current economic and market conditions, the operating performance of the companies including current earnings trends and other company-specific information. ( p ) Impairment of long-lived assets Long-lived assets are evaluated for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying value of an asset may not be fully recoverable or that the useful life is shorter than the Group had originally estimated. When these events occur, the Group evaluates the impairment for the long-lived assets by comparing the carrying value of the assets to an estimate of future undiscounted cash flows expected to be generated from the use of the assets and their eventual disposition. If the sum of the expected future undiscounted cash flows is less than the carrying value of the assets, the Group recognizes an impairment loss based on the excess of the carrying value of the assets over the fair value of the assets. 2. SIGNIFICANT ACCOUNTING POLICIES (Continued) ( q ) In February 2016, the FASB issued ASC 842, Leases, to require lessees to recognize all leases, with certain exceptions, on the balance sheet, while recognition on the operations will remain similar to lease accounting under ASC 840. Subsequently, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, Leases, ASU No. 2018-11, Targeted Improvements, ASU No. 2018-20, Narrow-Scope Improvements for Lessors, and ASU 2019-01, Codification Improvements, to clarify and amend the guidance in ASU No. 2016-02. As a lessee Operating lease The Group early adopted the ASUs as of January 1, 2018 using the modified retrospective approach. The adoption impact was immaterial. Upon adoption, the Group elected the package of practical expedients permitted under the transition guidance within the new standard, which allowed the Group to carry forward the historical determination of contracts as leases, lease classification and not reassess initial direct costs for historical lease arrangements. In addition, the Group also elected the practical expedient to apply consistently to all of the Group’s leases to use hindsight in determining the lease term (that is, when considering lessee options to extend or terminate the lease and to purchase the underlying asset) and in assessing impairment of the Group’s right-of-use assets. The Group includes a right-of-use asset and lease liability related to substantially all of the Group’s lease arrangements in the consolidated balance sheets. All of the Group’s leases are operating leases. Operating lease assets are included within right-of-use assets, and the corresponding lease liabilities are included in either current or long-term liabilities. The Group has elected not to present short-term leases on the consolidated balance sheet as these leases have a lease term of 12 months or less at commencement date of the lease and do not include options to purchase or renew that the Group is reasonably certain to exercise. The Group recognizes lease expenses for such short-term lease generally on a straight-line basis over the lease term. All other lease assets and lease liabilities are recognized based on the present value of lease payments over the lease term at commencement date. Because most of the Group’s leases do not provide an implicit rate of return, the Group uses the Group’s incremental borrowing rate based on the information available at adoption date or lease commencement date in determining the present value of lease payments. ( r ) Mezzanine equity Mezzanine equity represents the preferred shares issued by the Company. The preferred shares are redeemable at the holders’ option any time after a certain date and are contingently redeemable upon the occurrence of certain liquidation events outside of the Company’s control. Therefore, the Group classifies all of the preferred shares as mezzanine equity (Note 18). In accordance with ASC 480-10, the mezzanine equity is initially measured based on its fair value at date of issuance. The preferred shares can be converted either voluntarily before a qualified initial public offering (“Qualified IPO”, referring to a public offering of ordinary shares of the Company registered under the Securities Act and with an implied pre-money valuation of US$5,000,000 or more) or automatically upon a Qualified IPO. The Company accretes changes in the redemption value over the period from the date of issuance to the earliest redemption date of the instrument using the interest method. According to ASC 480-10-S99-2, where fair value at date of issuance is less than the mandatory redemption amount, the carrying amount is to be increased by periodic accretions, using the interest method, so that the carrying amount will equal the mandatory redemption amount at the mandatory redemption date. Each increase in carrying amount is to be recorded as charges against retained earnings or, in the absence of retained earnings, as charges against additional paid-in capital until additional paid-in capital is reduced to zero. 2. SIGNIFICANT ACCOUNTING POLICIES (Continued) ( s ) Revenue recognition The Group adopted ASC 606 for all periods presented. According to ASC 606, revenue is recognized when control of the promised good or service is transferred to the customer in an amount that reflects the consideration the Group expects to receive in exchange for those goods or services, after considering estimated sales return allowances, price concessions, discount and value added tax (“VAT”). Consistent with the criteria of Topic 606, the Group follows five steps for its revenue recognition: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The Group’s revenues are primarily derived from (i) sales of the Group’s products to third party platform distributor customers who then sell to end customers and (ii) sales of the Group’s products to end customers directly through the Group’s online stores run on third party e-commerce platforms and through offline stores operated by the Group. Refer to Note 15 to the consolidated financial statements for disaggregation of the Group's revenues for the years ended December 31, 2018, 2019 and 2020. The Group enters into two types of agreements with third party e-commerce platforms: 1) Distribution Agreements Under the distribution agreements, the platform distributor customers purchase products from the Group and sell to end customers under the platform distributor customer’s name. According to the agreements, the platform distributor customers take control of the products and are entitled to rights of return and price protection. After taking control of the products, the platform distributor customer is responsible for selling and fulfilling all obligations in its sales contracts with end customers, including delivering the products and providing customer support. Under the distribution agreement, the Group has a sale contract with the platform distributor customer and has no sales contract with the end customers. Based on these indicators, the Group determined the e-commerce platform distributors (as opposed to the end customers) as its customers according to ASC 606-10-55-39. 2) Platform Service Agreements Under the platform service agreements, the Group sets up online stores on the platforms to sell the Group’s product to end customers. The platforms provide services to support the operations of the online store including processing sales orders and collecting from end customers. The platforms charge the Group service fees based on the Group’s sales through the online stores. The Group enters sale contracts directly with the end customers. The platforms do not take control of the goods and do not include sales contracts with end customers. The Group is responsible for selling and fulfilling all obligations according to its sales contracts with end customers, including delivering products and providing customer support. Accordingly, the Group determined the end customers (as opposed to the platforms) as its customers according to ASC 606-10-55-39. The sales contracts with end customers normally include a customer’s right to return products within 7 days after receipt of goods. The Group identifies its performance obligation to both e-commerce platform distributor customers and end customers as to transfer the control of the products ordered to the customers. Contracts with customers may include multiple performance obligations if there is a need to separate one order into multiple deliveries. In those scenarios, transaction price will be allocated to different performance obligations based on relative standalone selling prices. The Group recognizes revenue from sales to e-commerce platform distributors upon delivery of the products to e-commerce platform distributors’ warehouses in an amount equal to the contract sales prices less estimated sales allowances for sales returns, rebates and price protection. The Group recognizes revenues from sales to end customers upon delivery of the product to end customers in an amount equal to the contract sales prices less estimated sales allowances for sales returns and sales incentives. Estimated sales allowances for sales returns, rebates, incentives and price protection are made based on contract terms and historical patterns. The estimated sales allowances for sales returns, rebates, incentives and price protection at December 31, 2018, 2019 and 2020 were RMB1,661,RMB5,591 and RMB6,605, respectively. 2. SIGNIFICANT ACCOUNTING POLICIES (Continued) (s) Revenue recognition (Continued) Accounts receivable balances A receivable is recorded when the Group has an unconditional right to consideration. A right to consideration is unconditional if only the passage of time is required before payment of that consideration is due. A contract asset is recorded when the Group has transferred products to the customer before payment is received or is due, and the Group’s right to consideration is conditional on future performance or other factors in the contract. No contract asset was recorded as at December 31, 2019 and 2020. Sales to e-commerce platform distributor customers are on credit terms, and receivables are recorded upon recognizing revenues. Sales through online stores on platforms are paid by the end customers to Payment Channels before the Group delivers the products. Payment Channels settle with the Group based upon pre-agreed days after the Group delivers products to end customers, or when the end customers confirm their receipts of products, whichever is earlier. As of December 31, 2019 and 2020, accounts receivables were RMB265,302 and RMB419,317, respectively. No expected credit loss provision was provided for the periods presented. A contract liability is recorded when the Group’s obligation to transfer goods to a customer has not yet occurred but for which the Group has received consideration from the customer. The Group presents such amounts as advances from customers on the consolidated balance sheets. As of December 31, 2019 and 2020, advances from customers were RMB3,177 and RMB6,228, respectively. All contract liability balances at the beginning of the years were recognized as revenue in the following years due to generally short-term duration of contracts. During the years ended December 31, 2018, 2019 and 2020, the Group did not have Practical Expedients The transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied has not been disclosed, as substantially all of the Group’s contracts have a duration of one year or less. Payment terms with platform distributor customers and Payment Channels generally require settlement within one year or less. The Group has determined that its contracts generally do not include a significant financing component. The Group generally expenses sales commissions when incurred because the amortization period is one year or less. These costs are recorded within selling and marketing expenses. ( t ) Cost of revenues Cost of revenues consists primarily of material costs, consignment manufacturing cost and related costs that are directly attributable to the production of products. ( u ) Fulfilment expenses Fulfilment expenses primarily represent expenses incurred for warehousing, shipping and delivering products to customers, mainly including rental and personnel costs for warehouses as well as third party shipping costs. ( v ) Selling and marketing expenses Selling and marketing expenses primarily consist of (i) advertising and marketing promotion expenses, (ii) platform commission, (iii) personnel costs for sales and marketing staff, (iv) rental, depreciation expenses, personnel and other costs for offline experience stores and (v) share-based compensation expenses. For the years ended December 31, 2018, 2019 and 2020, advertising and marketing promotion expenses totalled to RMB256,097, RMB879,632 and RMB2,215,074, respectively. ( w ) Research and development expenses Research and development expenses primarily consist of personnel costs for research and development staff, general expenses and depreciation expenses associated with research and development activities. 2. SIGNIFICANT ACCOUNTING POLICIES (Continued) ( x ) General and administrative expenses General and administrative expenses consist of personnel costs including share-based compensation expenses and other expenses which are related to the general corporate functions, including accounting, finance, tax, legal and human relations, costs associated with use by these functions of facilities and equipment, such as depreciation expenses, rental and other general corporate related expenses. ( y ) Employee social security and welfare benefits Employees of the Group in the PRC are entitled to staff welfare benefits including pension, work-related injury benefits, maternity insurance, medical insurance, unemployment benefit and housing fund plans through a PRC government-mandated multi-employer defined contribution plan. The Group is required to accrue and pay the government for these benefits based on certain percentages of the employees’ salaries, up to a maximum amount specified by the local government. The PRC government is responsible for the medical benefits and the pension liability to be paid to these employees, and the Group’s obligations are limited to the amounts contributed with no legal obligation beyond the contributions made. Employee social security and welfare benefits, as part of the personnel costs, included as expenses in the accompanying consolidated statement of operations amounted to RMB2,993, RMB21,495 and RMB41,719 for the years ended December 31, 2018, 2019 and 2020, respectively. ( z ) Share-based compensation The Group grants restricted shares to the founders and share options to its management and other key employees (collectively, “Share-based Awards”). Such compensation is accounted for in accordance with ASC 718, Compensation—Stock Compensation. Share-based Awards with service conditions only are measured at the grant date fair value of the awards and recognized as expenses using the straight-line method, net of estimated forfeitures, if any, over the requisite service period. Share-based Awards that are subject to both service conditions and the occurrence of an initial public offering ("IPO") as performance condition, are measured at the grant date fair value. Cumulative share-based compensation expenses for the awards that have satisfied the service condition, amounting to RMB232,431, were recorded upon the completion of the IPO, using the graded-vesting method. The fair value of the restricted shares was assessed using the income approach/discounted cash flow method, with a discount for lack of marketability given that the shares underlying the awards were not publicly traded at the time of grant. This assessment requires complex and subj |
Concentration and Risks
Concentration and Risks | 12 Months Ended |
Dec. 31, 2020 | |
Risks And Uncertainties [Abstract] | |
Concentration and Risks | 3. CONCENTRATION AND RISKS ( a ) Foreign exchange risk The revenues and expenses of the Group's entities in the PRC are generally denominated in RMB and their assets and liabilities are denominated in RMB. The RMB is not freely convertible into foreign currencies. Remittances of foreign currencies into the PRC or remittances of RMB out of the PRC as well as exchange between RMB and foreign currencies require approval by foreign exchange administrative authorities and certain supporting documentation. The State Administration for Foreign Exchange, under the authority of the People's Bank of China, controls the conversion of RMB into other currencies. ( b ) Credit risk The Group’s credit risk arises from cash and cash equivalents, restricted cash short-term investments, prepayments and other current assets, amount due from related parties and accounts receivable. The carrying amounts of these financial instruments represent the maximum amount of loss due to credit risk. The Group expects that there is no significant credit risk associated with cash and cash equivalents, restricted cash and short-term investments which are held by reputable financial institutions in the jurisdictions where the Company, its subsidiaries and VIEs are located. The Group believes that it is not exposed to unusual risks as these financial institutions have high credit quality. The Group has no significant concentrations of credit risk with respect to its prepayments and other current assets and amount due from related parties. Accounts receivable are typically unsecured and are derived from revenue earned through third party consumers. The risk with respect to accounts receivable is mitigated by credit evaluations performed on them. ( c ) Concentration of customers and suppliers There were no customers There were purchases from three suppliers which individually represented greater than 10% and totally contributed to 57% of the total purchases amount for the year ended December 31, 2018. There were purchases from two suppliers which individually represented greater than 10% and totally contributed to 50% of the total purchases amount for the year ended December 31, 2019 and the corresponding accounts payable due to these two suppliers individually represented greater than 10% and totally contributed to 50% of the Group’s total accounts payable as of December 31, 2019. There were purchases from three suppliers which individually represented greater than 10% and totally contributed to 55% of the total purchases amount for the year ended December 31, 2020 and the corresponding accounts payable due to these three suppliers individually represented greater than 9% and totally contributed to 52% of the Group's total accounts payable as of December 31, 2020. |
Cash and Cash Equivalents and R
Cash and Cash Equivalents and Restricted Cash | 12 Months Ended |
Dec. 31, 2020 | |
Cash And Cash Equivalents [Abstract] | |
Cash and Cash Equivalents and Restricted Cash | 4. CASH AND CASH EQUIVALENTS AND RESTRICTED CASH Cash and cash equivalents represent cash on hand and demand deposits placed with banks or other financial institutions, and all highly liquid investments with original maturities of three months or less. Cash and cash equivalents and restricted cash balances as of December 31, 2019 and 2020 primarily consist of the following currencies: As of December 31, 2019 2020 Amount RMB Amount RMB Cash and cash equivalents RMB 97,713 97,713 265,401 265,401 US$ 82,977 578,866 829,774 5,414,276 EUR - - 5,885 47,226 SGD - - 26 126 Total cash and cash equivalents 676,579 5,727,029 Restricted cash RMB - 6,363 Total cash, cash equivalents and restricted cash 676,579 5,733,392 |
Short Term Investments
Short Term Investments | 12 Months Ended |
Dec. 31, 2020 | |
Investments All Other Investments [Abstract] | |
Short Term Investment | 5. SHORT-TERM INVESTMENT As of December 31, 2019 2020 RMB RMB Wealth management product 10,000 - Short-term investment represented the investment on certain units of a wealth management product issued by a commercial bank with a variable interest rate indexed to the performance of underlying assets. The commercial bank will publish unit fair value of the product every seven days. |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Accounts Receivable | 6 . ACCOUNTS RECEIVABLE As of December 31, 2019 2020 RMB RMB Accounts receivable 265,302 419,317 There was no allowance for doubtful accounts/expected credit losses provision recorded as of December 31, 2019 or 2020. |
Inventories, Net
Inventories, Net | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | 7 . INVENTORIES, NET Inventories, net consisted of the following: As of December 31, 2019 2020 RMB RMB Raw materials and packing materials 53,755 56,519 Finished goods 451,312 581,237 Inventories 505,067 637,756 Less: inventory provision (1,018) (20,948) Inventories, net 504,049 616,808 |
Prepayments and Other Current A
Prepayments and Other Current Assets | 12 Months Ended |
Dec. 31, 2020 | |
Other Assets Unclassified [Abstract] | |
Prepayments and Other Current Assets | 8 . PREPAYMENTS AND OTHER CURRENT ASSETS As of December 31, 2019 2020 RMB RMB Prepayments of promotion fees (a) 35,051 133,575 VAT recoverable (b) 27,017 92,483 Commission rebate due from an online platform (c) 20,546 - Prepayments for products procurement (d) 13,908 6,742 Deposits, prepaid rental and property management fees 8,675 35,021 Others 10,034 36,820 115,231 304,641 (a) Prepayments of promotion fees mainly include prepayments made to online platforms for future services to promote the Group’s products through online advertising and prepaid short-term service fees to celebrity agencies and key opinion leaders. (b) VAT recoverable represent the balances that the Group can utilize to deduct its value-added tax liabilities in the future. (c) Commission rebate due from an online platform was recognised as of December 31,2019 due to the fact that the Group had met the annual sales target set by the platform and was entitled a preferential commission rate. (d) Prepayments for products procurement represent cash prepaid to the Group’s third-party suppliers for the procurement of products. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2020 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Investments | 9 . INVESTMENTS The following sets forth the Group's investments: As of December 31, 2019 2020 RMB RMB Equity method investments (a) - 23,471 Equity investments without readily determinable fair values - 11,391 - 34,862 (a) The equity method investments were made in two newly formed entities with limited operations in the year ended December 31, 2020. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment, Net | 10 . PROPERTY AND EQUIPMENT, NET Property and equipment, net consisted of the following: As of December 31, 2019 2020 RMB RMB Leasehold improvements 87,858 305,955 Electronic equipment 14,275 32,213 Machinery 4,640 15,562 Office furniture and equipment 3,071 3,818 Vehicles 2,495 4,311 Construction in progress 9,854 2,779 Total 122,193 364,638 Less: accumulated depreciation (12,783) (79,341) Property and equipment, net 109,410 285,297 The Group recorded depreciation expense of RMB 389, RMB 13,010 and RMB 74,551 for the years ended December 31, 2018, 2019 and 2020, respectively. No impairment was recorded for the years ended December 31, 2018, 2019 and 2020. |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets, Net | 1 1 . INTANGIBLE ASSETS, NET As of December 31, 2019 2020 RMB RMB Cost: Trademark (a) 7,592 177,805 Software 3,435 15,778 Total cost 11,027 193,583 Less: accumulated amortization (999) (4,493) Intangible assets, net 10,028 189,090 (a) In the year ended December 31, 2020, the Group formed a subsidiary, in which Group held 90% equity interest, with a third party (“Seller”). In October 2020, the subsidiary completed acquisition of the trademark of Galénic, a French skincare brand, from the Seller. The amount of trademark recognized in this transaction was RMB 166,451. Amortization costs recognized for the years ended December 31, 2018, 2019 and 2020 were RMB 113, RMB 907 and RMB 3,476, respectively. As of December 31, 2020, estimated amortization expenses for future periods are expected to be as follows: Year ended December 31, 2020 RMB 2021 14,464 2022 14,040 2023 13,976 2024 13,612 2025 and thereafter 132,998 Total expected amortization expense 189,090 The weighted average amortization periods of intangible assets as of December 31 2019 and 2020 are 8.9 years and 14.1 years, respectively. |
Other Non-Current Assets
Other Non-Current Assets | 12 Months Ended |
Dec. 31, 2020 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Other Non-Current Assets | 1 2 . OTHER NON-CURRENT ASSETS As of December 31, 2019 2020 RMB RMB Long-term rental deposits 23,991 50,509 Prepaid long-term celebrity endorsement fees 5,687 3,996 Prepaid consideration for an acquisition - 95,427 Others 1,201 2,126 30,879 152,058 |
Accrued Expenses and Other Liab
Accrued Expenses and Other Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Payables And Accruals [Abstract] | |
Accrued Expenses and Other Liabilities | 1 3 . ACCRUED EXPENSES AND OTHER LIABILITIES As of December 31, 2019 2020 RMB RMB Other taxes payable 62,040 83,040 Accrued storage and transportation fees 55,151 59,631 Accrued payroll related expenses 35,045 70,412 Accrued advertising and marketing expenses 15,690 77,948 Accrued leasehold improvement costs 13,300 56,490 Consideration payable for a business combination 3,196 - Refund obligation of sales return 1,005 3,918 Others 5,638 60,505 191,065 411,944 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | 1 4 . LEASES The Group has operating leases for warehouses, stores, office spaces, and delivery centers that the Group utilizes under lease arrangements. A summary of supplemental information related to operating leases is as follows: As of December 31, 2019 2020 RMB RMB Operating lease ROU assets 263,346 536,710 Operating lease liabilities-non-current 171,045 311,910 Operating lease liabilities-current 93,915 215,300 Total operating lease liabilities 264,960 527,210 Weighted average remaining lease term 2.80 years 2.57 years Weighted average discount rate 5.74% 5.41% A summary of lease cost recognized in the Group’s consolidated statements of operations and supplemental cashflow information related to operating leases is as follows: Year ended December 31, 2018 2019 2020 RMB RMB RMB Operating lease cost 3,615 53,752 179,515 Short-term lease cost 576 2,291 4,249 Variable cost - 1,557 6,396 Cash paid for operating leases 3,412 48,281 168,943 Right-of-use assets obtained in exchange for operating lease liabilities 22,705 295,454 448,148 14. LEASES (Continued) A summary of maturity of operating lease liabilities under the Group’s non-cancellable operating leases as of December 31, 2020 is as follows: As of December 31, 2020 RMB 2021 236,009 2022 205,509 2023 103,456 2024 24,380 2025 4,111 Total lease payment 573,465 Less: interest (46,255) Present value of operating lease liability 527,210 As of December 31, 2020, the Group had additional operating leases commitment for offline stores that have not yet commenced of RMB 23,254. These operating leases will commerce in the first half of 2021 (Note 23 (b)). |
Revenues
Revenues | 12 Months Ended |
Dec. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | 1 5 . REVENUES The Group’s revenue by channel for the respective periods are detailed as follows: Year ended December 31, 2018 2019 2020 RMB RMB RMB Sales of product by channel —Sales to end customers through platforms 578,486 2,570,107 4,023,144 —Sales to platform distributor customers 56,830 359,629 678,873 —Others - 101,431 531,153 Total revenues 635,316 3,031,167 5,233,170 |
Income Tax Expenses
Income Tax Expenses | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Tax Expenses | 1 6 . INCOME TAX EXPENSES Cayman Islands Under the current tax laws of Cayman Islands, the Company and its subsidiaries are not subject to tax on income or capital gains. No Cayman Islands withholding tax is imposed upon payment of dividends by the Company to its shareholders. Hong Kong For the subsidiaries incorporated in Hong Kong, they were subject to Hong Kong profits tax at a rate of 16.5% for taxable income earned in Hong Kong. Commencing on April 1, 2018, the two-tiered profits tax regime took effect, under which the tax rate is 8.25% for assessable profits on the first HK$2 million and 16.5% for any assessable profits in excess of HK$2 million. The payments of dividends to shareholders are not subject to withholding tax in Hong Kong. 16. INCOME TAX EXPENSES (Continued) PRC In accordance with the Enterprise Income Tax Law (“EIT Law”), Foreign Investment Enterprises (“FIEs”) and domestic companies are subject to Enterprise Income Tax (“EIT”) at a uniform rate of 25%. The subsidiaries and VIEs of the Group in the PRC are subject to a uniform income tax rate of 25% for years presented. According to a policy promulgated by the State Tax Bureau of the PRC and effective from 2008 onwards, enterprises engaged in research and development activities are entitled to claim an additional tax deduction amounting to 50% of the qualified research and development expenses incurred in determining its tax assessable profits for that year. The additional tax deducting amount of the qualified research and development expenses have been increased from 50% to 75%, effective from 2018 to 2020, according to a new tax incentives policy promulgated by the State Tax Bureau of the PRC in September 2018 (“Super Deduction”). The EIT Law also provides that an enterprise established under the laws of a foreign country or region but whose “de facto management body” is located in the PRC be treated as a resident enterprise for PRC tax purposes and consequently be subject to the PRC income tax at the rate of 25% for its global income. The Implementing Rules of the EIT Law merely define the location of the “de facto management body” as “the place where the exercising, in substance, of the overall management and control of the production and business operation, personnel, accounting, properties, etc., of a non-PRC company is located.” Based on a review of surrounding facts and circumstances, the Group does not believe that it is likely that its entities registered outside of the PRC should be considered as resident enterprises for the PRC tax purposes. The EIT Law also imposes a withholding income tax of 10% on dividends distributed by a FIE to its immediate holding company outside of China, if such immediate holding company is considered as a non-resident enterprise without any establishment or place within China or if the received dividends have no connection with the establishment or place of such immediate holding company within China, unless such immediate holding company’s jurisdiction of incorporation has a tax treaty with China that provides for a different withholding arrangement. The Cayman Islands, where the Company incorporated, does not have such tax treaty with China. According to the arrangement between the mainland China and Hong Kong Special Administrative Region on the Avoidance of Double Taxation and Prevention of Fiscal Evasion issued in August 2006, dividends paid by an FIE in China to its immediate holding company in Hong Kong will be subject to withholding tax at a rate of no more than 5% (if the immediate holding company in Hong Kong is the beneficial owner of the FIE and owns directly at least 25% of the shares of the FIE). In accordance with accounting guidance, all undistributed earnings are presumed to be transferred to the parent company and withholding taxes should be accrued accordingly. All FIEs are subject to the withholding tax from January 1, 2008. The presumption may be overcome if the Group has sufficient evidence to demonstrate that the undistributed dividends from its PRC subsidiaries will be re-invested and the remittance of the dividends from its PRC subsidiaries will be postponed indefinitely. Aggregate undistributed earnings and reserves of the Group entities located in the PRC that are available for distribution to the Company as of December 31, 2019 and 2020 were approximately RMB162,135 and RMB46,230, respectively. The Group plans to indefinitely reinvested undistributed earnings earned from its PRC subsidiaries in its operations in PRC. Therefore, no withholding income tax for undistributed earnings of its subsidiaries were provided as at December 31, 2019 and 2020 respectively. Composition of income tax expense The current and deferred components of income taxes appearing in the consolidated statements of operations are as follows: Year ended December 31, 2018 2019 2020 RMB RMB RMB Income (loss) before income tax expense (36,114) 147,335 (2,681,445) Current tax expense 1,718 75,671 3,519 Deferred tax expense (benefit) 2,292 (3,695) 3,451 Total income tax expense 4,010 71,976 6,970 16. INCOME TAX EXPENSES (Continued) The income tax expense for each of the years ended December 31, 2018, 2019 and 2020 differs from the amount computed by applying the PRC statutory income tax rate of 25% to income before income tax expense due to the following: Year ended December 31, 2018 2019 2020 PRC statutory income tax rate 25% 25% 25% Permanent differences -32% 15% -17% Tax effect of different tax rate of different jurisdictions -1% -1% 0% Tax effect of Super Deduction and others 0% -2% 0% Changes in valuation allowance -3% 12% -8% Effective tax rates -11% 49% 0% Deferred tax assets The significant components of the Group's deferred tax assets were as follows: As of December 31, 2019 2020 RMB RMB Net operating loss carry forwards 17,068 222,325 Inventory valuation allowance 368 5,237 Accrued expenses and others 5,474 11,000 Total deferred tax assets 22,910 238,562 Less: valuation allowance (18,677) (237,965) Deferred tax assets, net 4,233 597 Movement of valuation allowance Year ended December 31, 2019 2020 RMB RMB Balance at beginning of the year 1,093 18,677 Additions 17,584 219,288 Balance at end of the year 18,677 237,965 The valuation allowance is provided against deferred tax assets when the Group determines that it is more likely than not that the deferred tax assets will not be utilized in the future. In making such determination, the Group considered factors including future taxable income exclusive of reversing temporary differences and tax loss carry forwards. Valuation allowances as of December 31, 2019 and 2020 were mainly provided for net operating loss carry forward, because such deferred tax assets are not more likely than not to be realized based on the Group’s estimate of its future taxable income. If events occur in the future that allow the Group to realize more of its deferred income tax than the presently recorded amounts, an adjustment to the valuation allowances will result in a decrease in tax expense when those events occur. 16. INCOME TAX EXPENSES (Continued) Deferred tax liabilities The Group's deferred tax liability was as follows: As of December 31, 2019 2020 RMB RMB Related to acquired intangible assets 1,742 1,557 Uncertain tax positions The Group evaluates the level of authority for each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measures the unrecognized benefits associated with the tax positions. As of December 31 2019, and 2020, the Group did not have any significant unrecognized uncertain tax positions. |
Ordinary Shares
Ordinary Shares | 12 Months Ended |
Dec. 31, 2020 | |
Stockholders Equity [Abstract] | |
Ordinary Shares | 1 7 . ORDINARY SHARES On September 2016, the Company was incorporated as a limited liability company with authorized share capital of US$ 50 divided into 5,000,000,000 ordinary shares of par value US$ 0.00001 each. On September 5, 2018, in connection with the Reorganization, the Company divided its authorized share capital of US$ 50 into 5,000,000,000 shares comprising of: (i) 4,363,824,941 ordinary shares of a nominal or par value of US$ 0.00001 each; (ii) 200,000,000 Series Seed preferred shares of a nominal or par value of US$ 0.00001 each; (iii) 66,667,000 Series A-1 preferred shares of a nominal or par value of US$ 0.00001 each; (iv) 183,715,000 Series A-2 preferred shares of a nominal or par value of US$ 0.00001 each; (v) 14,503,820 Series B-1 preferred shares of a nominal or par value of US$ 0.00001 each. (vi) 171,289,239 Series B-2 preferred shares of a nominal or par value of US$ 0.00001 each. On September 30, 2018, the Company authorized 85,351,118 Series B-3 preferred shares of a nominal or par value of US$ 0.00001 each and reduced the authorized number of ordinary shares to 4,278,473,823 shares. On February 25, 2019, the Company authorized 87,075,383 Series B-3+ preferred shares of a nominal or par value of US$ 0.00001 each, and reduced the authorized number of ordinary shares, Series Seed preferred shares, and Series A-2 preferred shares to 4,251,747,715 shares, 191,378,675 shares and 131,987,050 shares, respectively. On that same date the Company issued 87,075,383 Series B-3+ preferred shares to investors. Upon closing of the issuance of 206,907,594 Series C preferred shares in July 2019, the Company adopted a dual voting structure on its shares and the Company’s ordinary shares were divided into Class A and Class B ordinary shares, and all of the vested ordinary shares held by the founders were designated as Class B ordinary shares. Holders of Class A ordinary shares are entitled to one vote per share in all shareholders’ meetings, while holders of Class B ordinary shares are entitled to ten votes per share. The number of the Company’s authorized ordinary shares has been revised and reduced accordingly to 4,044,840,121 shares, including 3,130,264,924 Class A ordinary shares and 914,575,197 Class B ordinary shares. On same date, the Company issued 157,846,049 Class B ordinary shares to several founders (Note 19(a)), repurchased 7,713,574 ordinary shares and concurrently issued 7,713,574 Series C preferred shares to investors. In 2020, the share capital transactions are summarized as below: (i) The Company newly authorized 46,277,409 Class B ordinary shares, 68,832,245 Series Seed preferred shares, 66,432,971 Series C preferred shares, 66,432,971 Series D preferred shares, and 144,331,134 Series E preferred shares of a nominal or par value of US$ 0.00001 each, and reduced authorized Class A ordinary shares by 392,306,730 shares. 17. ORDINARY SHARES (Continued) (ii) The Company issued 93,753,239 Class B ordinary shares to several founders, which were subject to service conditions (Note 19(a)). (iii) The Company repurchased 62,388,247 Class B ordinary shares. Concurrently, the Company issued 62,388,247 Series Seed preferred shares to investors. 6,443,998 ordinary shares owned by one of founders were redesignated into preferred shares (Note 19(b)). (iv) The Company issued 15,518,385 Class A ordinary shares as a result of accelerated vesting and exercise of share options (Note 19(d)). (v) The Company issued 149,363,572 Class A ordinary shares and 21,356,415 Class B ordinary shares to share Incentive Plan Trust (Note 19(e)). (vi) On November 19, 2020, the Company completed its IPO on the New York Stock Exchange under the symbol of "YSG". The Company issued an aggregate 67,562,500 ADSs, representing 270,250,000 Class A ordinary shares for the net proceeds of $664.7 million (RMB4.35 billion). Upon completion of the IPO, all convertible redeemable preferred shares were converted into ordinary shares |
Convertible Redeemable preferre
Convertible Redeemable preferred Shares ("Preferred Shares") | 12 Months Ended |
Dec. 31, 2020 | |
Temporary Equity Disclosure [Abstract] | |
Convertible Redeemable Preferred Shares ("Preferred Shares") | 18 . CONVERTIBLE REDEEMABLE PREFERRED SHARES (“PREFERRED SHARES”) The following table summarizes the issuances of convertible redeemable preferred shares. Series Issuance Date Shares Issued Issue Price per Share Net Proceeds from Issuance US$ US$ RMB Seed August 1, 2017 200,000,000 0.0050 1,000 6,715 Seed March 25,2020 53,699,985 1.0615 57,000 403,230 Seed April 27, 2020 45,315,250 1.0615 48,100 340,082 Seed April 27, 2020 6,443,998 0.00001 - - Seed July 29, 2020 21,479,994 1.0615 22,800 159,530 Seed September 11, 2020 31,651,271 1.5009 47,505 324,882 A-1 October 9, 2017 66,667,000 0.0150 1,000 6,649 A-2 October 9, 2017 145,038,000 0.0207 3,008 20,000 A-2 October 9, 2017 38,677,000 0.0207 802 5,333 A-2 March 25,2020 15,035,996 1.0615 15,960 112,904 A-2 April 27, 2020 27,923,992 1.1173 31,200 220,593 B-1 September 5, 2018 14,503,820 0.0622 902 6,158 B-2 September 5, 2018 171,289,239 0.0655 11,220 76,594 B-3 October 22, 2018 85,351,118 0.0820 7,000 48,465 B-3+ February 25, 2019 87,075,383 0.1740 15,150 101,704 C July 26, 2019 206,907,594 0.5644 114,814 789,872 C April 27, 2020 26,573,188 0.5644 14,999 105,911 C September 11, 2020 39,859,783 0.5644 22,499 153,866 D March 25, 2020 66,432,971 1.1173 71,868 508,411 E September 11, 2020 144,331,134 1.5799 225,668 1,543,323 The Series Seed preferred shares, the Series A-1 preferred shares and the Series A-2 preferred shares are collectively defined as “Junior preferred shares”, and the Junior preferred shares, the Series B-1 preferred shares, the Series B-2, the Series B-3 preferred shares, the Series B-3+ preferred shares, the Series C preferred shares, the Series D preferred shares and Series E preferred shares are collectively defined as “preferred shares” thereafter. 18. CONVERTIBLE REDEEMABLE PREFERRED SHARES (“PREFERRED SHARES”) (Continued) The key terms of the preferred shares are as follows: Conversion right All of the preferred shares are convertible, at the option of the holders at any time after the original issue date of the relevant series of preferred shares into such number of fully paid ordinary shares. Each preferred share was automatically converted into ordinary shares at the then effective conversion price upon the closing of a Qualified IPO. The conversion ratio for each preferred share was determined by dividing the issue price by the then conversion price, in effect at the time of the conversion. The initial conversion price of each class of preferred share was its respective subscription price, and was subject to adjustment in the event of the issuance of additional ordinary shares at a per share price less than the conversion price. Redemption right At the option of a holder of the preferred shares, the Company redeemed at the redemption price all or any part of the outstanding preferred shares, at any time on or after the earlier of: (i) the redemption start date for each series of preferred shares; or (ii) the date on which a holder of any equity securities of the Company requested a redemption of its shares. Upon issuance of certain rounds of preferred shares, the redemption start dates of certain pre-existing preferred shares were modified to conform with the newly issued preferred shares. (Refer to Modifications and Repurchases of preferred shares below). The Junior preferred shares, B-1, B-2, B-3, B-3+ preferred shares’ redemption price was equal to the respective preferred shares’ issue price compounded with an interest rate of 10% per annum, and C, D, E preferred shares’ redemption price was equal to the respective preferred shares’ issue price calculated with a simple interest rate of 10% per annum, plus all declared but unpaid dividends thereon up to the date of redemption, proportionally adjusted for any share splits, share dividends, share combinations, recapitalizations or the like. Dividend rights Each preferred share had the right to receive non-cumulative dividends, on an as-converted basis, when, as and if declared by the Board. The order of distribution was made from holders of Series E, holders of Series D, holders of Series C preferred shares, holders of Series B preferred shares, to holders of Junior preferred shares. No distribution to Junior preferred shares was made until full payment of the amount distributable on the more senior preferred shares. No dividend was paid on the ordinary shares at any time unless and until all dividends on the preferred shares had been paid in full. No dividends on preferred and ordinary shares had been declared since the issuance date until IPO. Liquidation rights Upon the occurrence of any liquidation event, whether voluntary or involuntary, all assets and funds of the Company legally available for distribution were distributed to the shareholders in the following order and manner: Holders of preferred shares of later series had preference to the distribution of assets or funds over holders of preferred shares of earlier series and holders of ordinary shares, in the following sequence: Series E preferred shares, Series D preferred shares, Series C preferred shares, Series B-3+ preferred shares, Series B-3 preferred shares, Series B-2 preferred shares, Series B-1 preferred shares, and Junior preferred shares. The amount of preference was equal to 100% of the issuance price, calculated with a simple interest rate of 10% per annum, plus any and all declared but unpaid dividends. After distribution to the holder of preferred shares the amount of preference, all remaining assets and funds of the Company available for distribution to the shareholders were distributed ratably among all the shareholders on a fully diluted basis. Voting rights Each preferred share conferred the right to receive notice of, attend and vote at any general meeting of members on an as-converted basis. The holders of the preferred shares voted together with the ordinary shareholders, and not as a separate class or series, on all matters put before the shareholders. 18. CONVERTIBLE REDEEMABLE PREFERRED SHARES (“PREFERRED SHARES”) (Continued) Accounting of preferred shares The Company classified all preferred shares as mezzanine equity in the consolidated balance sheets because they were redeemable at the holders’ option any time after a certain date and are contingently redeemable upon the occurrence of certain liquidation events outside of the Company’s control. The preferred shares were recorded initially at fair value, net of issuance costs. The Company recorded accretion on the preferred shares, where applicable, to the redemption value from the issuance dates to the earliest redemption dates. The accretion, calculated using the effective interest method, was recorded against retained earnings, or in the absence of retained earnings, by charging against additional paid-in capital. Once additional paid-in capital had been exhausted, additional charges were recorded by increasing the accumulated deficit. The accretion of preferred shares was RMB 3,465, RMB 59,200 and RMB 242,209 for the years ended December 31,2018, 2019 and 2020, respectively. The Company determined that the embedded conversion features and the redemption features did not require bifurcation as they either were clearly and closely related to the preferred shares or did not meet the definition of a derivative. The Company had determined that there was no beneficial conversion feature attributable to all preferred shares because the initial effective conversion prices of these preferred shares were higher than the fair value of the Company’s ordinary shares determined by the Company taking into account independent valuations. Upon completion of the IPO, all preferred shares were converted to 1,301,189,200 Class A ordinary shares. (a) Modifications and Repurchases of Preferred Shares Concurrently with the issuance of Series A-2 preferred shares in October 2017, terms of previously issued 200,000 Series Seed ordinary shares and 66,667 Series A-1 ordinary shares were modified by adding a liquidation preference and a redemption right, and were redesignated into same number of Series Seed preferred shares and Series A-1 preferred shares, respectively. The Company accounted for this redesignation as a repurchase of previously issued ordinary shares with the consideration of new issuance of preferred shares at fair value. Upon issuance of Series B preferred shares in 2018 and Series C preferred shares in 2019, the redemption start dates of certain pre-existing preferred shares were modified to conform with the newly issued preferred shares. From both quantitative and qualitative perspectives, the Company assessed the impact of these modifications and concluded that they represent a modification rather than extinguishment of pre-existing preferred shares, and the impact of the modification was immaterial. Upon issuance of Series B-1 and B-2 preferred shares in 2018, the liquidation preference amount of Junior preferred shares was modified to add a 10% simple interest per annum. The Company assessed the impact of this modification and concluded that it represented a modification, and accounted for the change in fair value of RMB 3,521 as a deemed dividend. In the year ended December 31, 2019, the Company repurchased 60,349,275 Junior preferred shares whose book value was RMB 8,676 from shareholders for total consideration of RMB 69,915. Concurrently, the Company issued 60,349,275 Series B-3+ preferred shares for total consideration of RMB 69,915. The difference of RMB 61,239 between the consideration transferred and the book value of repurchased the preferred shares was treated as deemed dividends to preferred shareholders. In the year ended December 31, 2020, the Company repurchased 132,718,241 Junior preferred shares whose book value was RMB 14,379 from shareholders for total consideration of RMB 1,068,599. Concurrently, the Company issued 132,718,241 Junior preferred shares for total consideration of RMB 1,068,599. The difference of RMB 1,054,220 between the consideration transferred and the book value of repurchased the preferred shares was treated as deemed dividends to preferred shareholders. (b) Redesignation of Founder’s Ordinary Shares to Preferred Shares In April 2020, the Company re-designated 6,443,998 ordinary shares owned by one of its founders into preferred shares. The transaction was accounted for as a repurchase of ordinary shares and an issuance of preferred shares. The difference between the fair value of the ordinary share repurchased of RMB 33,290 and fair value of the newly issued preferred shares of RMB 35,142 amounted to RMB 1,852 was recognized as share-based compensation expenses. 18. CONVERTIBLE REDEEMABLE PREFERRED SHARES (“PREFERRED SHARES”) (Continued) The Company’s preferred shares activities for the years ended December 31, 2018, 2019 and 2020 are summarized below: Junior Preferred Shares Series B-1 and B-2 Preferred Shares Series B-3 Preferred Shares Series B-3+ Preferred Shares Series C Preferred Shares Series D Preferred Shares Series E Preferred Shares Total Number of shares Amount (RMB) Number of shares Amount (RMB) Number of shares Amount (RMB) Number of shares Amount (RMB) Number of shares Amount (RMB) Number of shares Amount (RMB) Number of shares Amount (RMB) Number of shares Amount (RMB) Balances as of January 1, 2018 450,382,000 46,698 - - - - - - - - - - - - 450,382,000 46,698 Issuance of preferred shares, net of issuance costs - - 185,793,059 82,752 85,351,118 48,465 - - - - - - - - 271,144,177 131,217 Accretion on preferred shares to redemption value - 4 - 2,567 - 894 - - - - - - - - - 3,465 Modification of preferred shares - 3,521 - - - - - 3,521 Derecognition of a forward liability - 2,986 - - - - - - - - - - - - - 2,986 Balances as of December 31, 2018 450,382,000 53,209 185,793,059 85,319 85,351,118 49,359 - - - - - - - - 721,526,177 187,887 Repurchase of preferred shares (60,349,275) (8,676) - - - - - - - - - - - - (60,349,275) (8,676) Issuance of preferred shares, net of issuance costs - - - - - - 87,075,383 101,704 206,907,594 789,872 - - - - 293,982,977 891,576 Accretion on preferred shares to redemption value - 2,181 - 8,625 - 4,920 - 8,796 - 34,678 - - - - - 59,200 Balances as of December 31, 2019 390,032,725 46,714 185,793,059 93,944 85,351,118 54,279 87,075,383 110,500 206,907,594 824,550 - - - - 955,159,879 1,129,987 18. CONVERTIBLE REDEEMABLE PREFERRED SHARES (“PREFERRED SHARES”) (Continued) Junior Preferred Shares Series B-1 and B-2 Preferred Shares Series B-3 Preferred Shares Series B-3+ Preferred Shares Series C Preferred Shares Series D Preferred Shares Series E Preferred Shares Total Number of shares Amount (RMB) Number of shares Amount (RMB) Number of shares Amount (RMB) Number of shares Amount (RMB) Number of shares Amount (RMB) Number of shares Amount (RMB) Number of shares Amount (RMB) Number of shares Amount (RMB) Balances as of December 31,2019 390,032,725 46,714 185,793,059 93,944 85,351,118 54,279 87,075,383 110,500 206,907,594 824,550 - - - - 955,159,879 1,129,987 Repurchase of preferred shares (132,718,241) (14,379) - - - - - - - - - - - - (132,718,241) (14,379) Issuance of preferred shares, net of issuance costs 195,106,488 1,561,221 - - - - - - 66,432,971 563,404 66,432,971 508,411 144,331,134 1,543,323 472,303,564 4,176,359 Redesignation of Founder’s ordinary shares to preferred shares 6,443,998 35,142 - - - - - - - - - - - - 6,443,998 35,142 Accretion on preferred shares to redemption value - 75,620 - 8,431 - 4,810 - 10,072 - 76,015 - 36,442 - 30,819 - 242,209 Redeemable convertible preferred shares converted into Class A ordinary shares upon the completion of the IPO (458,864,970) (1,704,318) (185,793,059) (102,375) (85,351,118) (59,089) (87,075,383) (120,572) (273,340,565) (1,463,969) (66,432,971) (544,853) (144,331,134) (1,574,142) (1,301,189,200) (5,569,318) Balances as of December 31, 2020 - - - - - - - - - - - - - - - - |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation | 19 . SHARE-BASED COMPENSATION Share-based compensation expenses recognized during the years presented are as follows: Year ended December 31, 2018 2019 2020 RMB RMB RMB Share-based compensation expenses - Share-based compensation of founders' restricted shares (a) 9,793 50,837 1,030,178 - Related to repurchase of founders’ ordinary shares (b) 4,238 24,158 146,294 - Related to the issuances of preferred shares to investors (c) - - 303,627 - Related to redesignation of founder’s ordinary shares to preferred shares (Note 18(b)) - - 1,852 - Related to accelerated vesting of share options (d) 138,729 - Related to vesting of share options (f) - - 279,908 Total 14,031 74,995 1,900,588 (a) Founders’ Restricted Shares In August 2017, in connection with the issuance of Series Seed preferred shares, the Group’s founders (collectively, the “ Restricted Founders”) agreed to place all their shares into escrow to be released back to them if specified service condition are met (defined as “First Series of Founders’ Restricted Shares”), which was, 25% of the First Series of Founders’ Restricted Shares were immediately vested and the remaining 75% of the First Series of Founders’ Restricted Shares shall be vested annually in equal instalments over the next three years. Pursuant to ASC 718-10-S99, such escrowed share arrangements are presumed to be compensatory and equivalent to a reverse stock split followed by the grant of restricted stock. Accordingly, the 75% of the First Series of Founders’ Restricted Shares that were subject to the service condition were considered shared based compensation. Subsequently as one founder resigned from the Company in November 2017, all 23,677,500 unvested restricted shares held by this founder were forfeited. In July 2019, the Company granted 157,846,049 ordinary shares to several founders, out of which 7,713,574 ordinary shares were vested immediately on the grant date and 150,132,475 ordinary shares were subject to service conditions (“Second Series of Founders’ Restricted Shares”). The Second Series of Founders’ Restricted Shares vest annually in equal instalments over the next four years commencing from the July 26, 2019. In September 2020, the Company granted 93,753,239 Ordinary shares to several founders, which were subjected to service conditions (“Third Series of Founders’ Restricted Shares”). The Third Series of Founders’ Restricted Shares vest annually in equal instalments over the next four years commencing from the September 11, 2020. All of the Founders’ Restricted Shares vested immediately upon IPO, regardless of the vesting schedule. The fair value of the Founders’ Restricted Shares was determined at the respective grant date by the Company, and was amortized over the respective vesting period on straight line basis. The share-based compensation expenses related to Founders’ Restricted Shares for the years ended December 31, 2018 , 2019 and 2020 were RMB9,793 , RMB50,837 and RMB1,030,178, respectively. (b) Repurchase of ordinary shares from the Founders For the years ended December 31, 2018, 2019 and 2020, the Company repurchased 14,503,820, 17,197,032 and 62,388,247 ordinary shares, respectively, from the founders for consideration of RMB6,161, RMB41,062 and RMB483,622, respectively. The Company then re-designated these shares into preferred shares for issuances to other investors. Based on its assessment, the Company concluded that the repurchase did not constitute a cash settlement of any share-based awards. As the respective repurchase price was greater than the fair value of ordinary shares as of the respective repurchase date, the difference between the repurchase price and the fair value was recognized as deemed share-based compensation expenses in the Group's consolidated statements of operations. The share-based compensation expenses related to the repurchase of ordinary shares from the founders for the years ended December 31, 2018, 2019 and 2020 were RMB4,238, RMB24,158 and RMB146,294, respectively. 19. SHARE-BASED COMPENSATION (Continued) (c) Issuances of preferred shares to investors In April 2020 and September 2020, the Company issued 26,573,188 Series C preferred shares (d) Accelerated vesting of share options In September 2020, 15,518,385 options were accelerated to vest immediately and were exercised on the same date, which was treated as an “improbable-to-probable” modification of equity-classified awards under ASC 718. RMB138,729, the fair value of modified options at the date of modification, was recognized in the Group’s consolidated statement of operations immediately. (e) Issuances of shares to Share Incentive Plan Trust In August 2020, 170,719,987 ordinary shares were issued to three trusts based on early exercise agreements of the same number of share options. Such shares will continue to be subject to satisfaction of the service and IPO conditions set forth in the applicable equity award agreements. If the aforementioned service and IPO conditions are not satisfied, or the exercise price are not paid, the holders of the share options will not be entitled to the shares issued to the trusts. Thus, the Company still consider the equity award as share options from accounting perspective. There is no incremental fair value change immediately before and after the modification of the aforementioned 170,719,987 share options. Consequently, no modification accounting is applied. (f) Vesting of share options The Group have adopted a Share Option Plan in September 2018, which was amended and restated respectively in July 2019, March 2020 and September 2020. The Share Option Plan shall be valid and effective for ten years from September 11, 2020. The maximum aggregate number of ordinary shares which may be issued pursuant to all awards under Share Option Plan is 249,234,508. (i) Options Grant of options During the years ended December 31, 2018, 2019 and 2020, the Company granted 67,404,501 share options, 62,896,041 share options and 136,230,857 share options, respectively, to its management and other key employees. Vesting of options The share options include both service conditions and performance conditions. With respect to the service conditions, there are 4 types of vesting schedule, which are: (i) 25% of the share options shall become vested on each anniversary of the vesting commencement date for 4 years thereafter; (ii) 100% of the share options shall become vested on anniversary of the vesting commencement date for 1 year thereafter; (iii) three fourteenths of the share options shall become vested on each anniversary of the vesting commencement date for 4 years thereafter and one fourteenth of the share options become vested on each anniversary of the vesting commencement date for 2 years thereafter; (iv) immediate vesting of the share options on the grant date. Even though the service condition might have been satisfied, employees are required to provide continued service through the occurrence of change of control or an initial public offering, collectively, the Liquidity Event, in order to retain the award. Given the vesting of the share options granted is contingent upon the occurrence of the Liquidity Event, there is no share-based compensation expense is to be recognized until the date of consummation of Liquidity Event. 19. SHARE-BASED COMPENSATION (Continued) (f) Vesting of share options (Continued) Movements in the number of share options granted and their related weighted average exercise prices are as follows: Number of options Weighted average exercise price (US$) Weighted average remaining contractual life (years) Aggregate intrinsic value (US$’000) As of January 1, 2018 - - Granted 67,404,501 0.0065 As of December 31, 2018 67,404,501 0.0065 5.04 Granted 62,896,041 0.0080 Forfeited (3,414,045) 0.0065 Modified from options to restricted shares (58,297,400) 0.0073 As of December 31, 2019 68,589,097 0.0073 4.58 Granted 136,230,857 0.2960 Cancelled (1,849,265) 0.0006 Forfeited (1,544,428) 0.2062 Accelerated vesting and exercised (15,518,385) - As of December 31, 2020 185,907,876 0.2179 13.73 749,602 Exercisable as of December 31, 2020 34,430,751 145,977 The Company has used binomial option-pricing model to determine the fair value of the share options as of the grant dates. Key assumptions are set as below: Year ended December 31, 2018 2019 2020 RMB RMB RMB Weighted average fair value per option granted 0.0854 1.0360 7.3798 Weighted average exercise price 0.0434 0.0554 2.0418 Risk-free interest rate (1) 2.9%~3.1% 1.9%~2.8% 0.48%~1.01% Expected term (in year) (2) 5~7 4~7 10~16 Expected volatility (3) 42.5%~45.8% 45.0%~48.0% 50.9%~55.9% Dividend yield (4) 0% 0% 0% (1) The risk-free interest rates of periods within the contractual life of the share option are based on the daily treasury long-term rate of U.S. Department of the Treasury as of (2) The expected term is the contract life of the option. (3) Expected volatility is estimated based on the average of historical volatilities of the comparable companies in the same industry as at the valuation dates. (4) The Company has no history or expectation of paying dividend on its ordinary shares. The expected dividend yield was estimated based on the Company’s expected dividend policy over the expected term of the option. 19. SHARE-BASED COMPENSATION (Continued) (f) Vesting of share options (Continued) For the years ended December 31, 2018, 2019 and 2020, nil, nil and RMB279,908 share-based compensation expenses were recognized for share options. In July 2019, the Company modified one of the founder's share options to the same number of restricted shares with only service condition, which would be vested annually in equal instalments over the next four years commencing from the July 26, 2019, which was treated as an “improbable-to-probable” modification of equity-classified awards under ASC 718. The incremental fair value, which equalled to the fair value of modified options at the date of modification, was recognized over the remaining requisite service period. As of December 31, 2020, there were RMB733,074 of unrecognized compensation expenses related to stock options for which the service conditions will be met over a weighted average period of 1.89 years. (g) Share-based compensation expenses For the years ended December 31, 2018, 2019 and 2020, share-based compensation expenses have been included in the following accounts in the consolidated income and comprehensive income: Year ended December 31, 2018 2019 2020 RMB RMB RMB Fulfilment expenses - - 2,947 Selling and marketing expenses - - 54,332 General and administrative expenses 14,031 74,995 1,841,409 Research and development expenses - - 1,900 Total 14,031 74,995 1,900,588 |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | 2 0 . NET INCOME (LOSS) PER SHARE Basic and diluted net income (loss) per share for the years ended December 31, 2018, 2019 and 2020 are calculated as follow: Year ended December 31, 2018 2019 2020 RMB RMB RMB Numerator: Net income (loss) attributable to the Yatsen Holding Limited’s shareholders (40,124) 75,359 (2,687,807) Accretion to preferred shares redemption value (3,465) (59,200) (242,209) Deemed dividend due to modification of preferred shares (3,521) (61,239) (1,054,220) Net income (loss) attributable to ordinary shareholders of Yatsen Holding Limited (47,110) (45,080) (3,984,236) Denominator: Denominator for basic and diluted calculation—weighted average number of ordinary shares outstanding 271,261,594 450,499,736 833,714,126 Net income (loss) per ordinary share —Basic (0.17) (0.10) (4.78) —Diluted (0.17) (0.10) (4.78) 20. NET INCOME (LOSS) PER SHARE (Continued) For the years ended December 31, 2018,2019 and 2020, the following shares outstanding were excluded from the calculation of diluted net income (loss) per ordinary share, as their inclusion would have been anti-dilutive for the years prescribed. Year ended December 31, 2018 2019 2020 Shares issuable upon conversion of preferred shares 532,193,603 834,357,412 959,555,911 Shares issuable upon exercise of share options 28,501,731 85,255,920 113,142,382 Restricted shares become outstanding upon vesting 512,479,500 380,772,174 256,752,927 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 2 1 . RELATED PARTY TRANSACTIONS Major transactions and balances amount with related parties were as follows: Transactions with a related party Year ended December 31, 2018 2019 2020 RMB RMB RMB Purchases of storage and transportation service from an affiliated company - - 15,183 Purchases of inventories from an affiliated company 67 389 - Affiliated company is a company over which the Group has significant influence. Balance amounts with related parties As of December 31, 2019 2020 RMB RMB An advance to a founder of the Group 664 - Amounts due from a founder of the Group - 13,050 Amounts due from affiliated companies - 1,320 664 14,370 Amounts due to an affiliated company - 11,814 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 2 2 . FAIR VALUE MEASUREMENTS Fair value reflects the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the assets or liabilities. The Group applies a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. This guidance specifies a hierarchy of valuation techniques, which is based on whether the inputs into the valuation technique are observable or unobservable. The hierarchy is as follows: Level 1—Valuation techniques in which all significant inputs are unadjusted quoted prices from active markets for assets or liabilities that are identical to the assets or liabilities being measured. Level 2—Valuation techniques in which significant inputs include quoted prices from active markets for assets or liabilities that are similar to the assets or liabilities being measured and/or quoted prices for assets or liabilities that are identical or similar to the assets or liabilities being measured from markets that are not active. Also, model-derived valuations in which all significant inputs and significant value drivers are observable in active markets are Level 2 valuation techniques. 22. FAIR VALUE MEASUREMENTS (Continued) Level 3—Valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Unobservable inputs are valuation technique inputs that reflect the Group's own assumptions about the assumptions that market participants would use in pricing an asset or liability. The fair value guidance describes three main approaches to measure the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. Recurring The following table sets forth the financial instruments measured or disclosed at fair value on a recurring basis by level within the fair value hierarchy as of December 31, 2019. The Group has no financial instruments measured or disclosed at fair value on a recurring basis as at December 31,2020. When available, the Group uses quoted market prices to determine the fair value of an asset or liability. If quoted market prices are not available, the Group will measure fair value using valuation techniques that use, when possible, current market-based or independently sourced market parameters, such as interest rates and currency rates. Fair value measurement at reporting date using Description Fair value as of December 31, 2019 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) RMB RMB RMB RMB Short-term investments (Note 5) 10,000 - 10,000 - Non-Recurring As of December 31, 2019 and 2020, the Group had no financial assets or financial liabilities that are measured in fair value on a non-recurring basis. The equity securities without readily determinable fair value, equity method investments and certain non-financial assets are recorded at fair value only if an impairment or observable price adjustment is recognized in the current period. If an impairment or observable price adjustment is recognized on the equity securities during the period, the Group classify these assets as Level 3 within the fair value hierarchy based on the nature of the fair value inputs. The Group reviews the long-lived assets and certain identifiable intangible assets other than goodwill for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Determination of recoverability is based on an estimate of undiscounted future cash flows resulting from the use of the asset and its eventual disposition. In accordance with the Group policy to perform an impairment assessment of its goodwill on an annual basis as of the balance sheet date or when facts and circumstances warrant a review, the Group performed an impairment assessment on its goodwill of reporting units annually. The Group concluded that no write-down of its non-financial assets was warranted for years ended December 31, 2018, 2019 and 2020. |
Commitments And Contingencies
Commitments And Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 2 3 . COMMITMENTS AND CONTINGENCIES (a) Capital commitment As at December 31, 2020, the Group had the following capital commitments: 1) RMB148,426 related to investments in joint venture and business acquisitions, and 2) of RMB1,838 related to purchase of property and equipment. (b) Operating lease commitment The Group had outstanding commitment on several non-cancellable operating lease agreements which were expected to commence in the first half of 2021. Operating lease commitment contracted but not yet reflected in the consolidated financial statements as of December 31, 2020 were as follows: Total Less Than 1 Year 1 - 3 Years 3 - 5 Years RMB RMB RMB RMB Operating lease commitment 23,254 4,563 11,892 6,799 (c) Products and services purchase commitment As at December 31, 2020, the Group’s products and services purchase commitment amounted to RMB 492,618. ( d ) Legal proceedings From time to time, the Group is subject to legal proceedings, investigations and claims incidental to the conduct of its business. As of December 31,2019 and 2020, the Group was not involved in any legal or administrative proceedings that the Group believes may have a material adverse impact on the Group's business, balance sheets or results of operations and cash flows. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | 2 4 . SUBSEQUENT EVENTS The Group evaluated subsequent events from January 1, 2021 through April 21, 2021, which is the date the consolidated financial statements are available to be issued, and concluded that no subsequent events have occurred that would require recognition or disclosure in the consolidated financial statements other than as discussed below. In January 2021, the Group completed the acquisition of the majority ownership of mainland China business of DR.WU. In March 2021, the Group acquired the majority ownership of the business of Eve Lom, a prestige skincare brand from Manzanita Capital. The total consideration is approximately RMB1.12 billion. The Group is in the process of completing the purchase price allocation for these acquisitions as of the issuance of the financial statements. |
Restricted Net Assets
Restricted Net Assets | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Restricted Net Assets | 2 5 . RESTRICTED NET ASSETS Relevant PRC laws and regulations permit payments of dividends by the Group's entities incorporated in the PRC only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. In addition, the Group's entities in the PRC are required to annually appropriate 10% of their net after-tax income to the statutory general reserve fund prior to payment of any dividends, unless such reserve funds have reached 50% of their respective registered capital. As a result of these and other restrictions under PRC laws and regulations, the Group's entities and the VIEs subsidiary incorporated in the PRC are restricted in their ability to transfer a portion of their net assets to the Company either in the form of dividends, loans or advances, which restricted portion as calculated under U.S. GAAP amounted to RMB 697,078 as of December 31, 2020. There are no significant differences between U.S. GAAP and PRC accounting standards in connection with the reported net assets of the legally owned subsidiaries in the PRC and the VIEs. Even though the Company currently does not require any such dividends, loans or advances from the PRC entities for working capital and other funding purposes, the Company may in the future require additional cash resources from them due to changes in business conditions, to fund future acquisitions and development, or merely to declare and pay dividends or distributions to its shareholders. Except for the above, there is no other restriction on use of proceeds generated by the Group's subsidiaries and the VIEs to satisfy any obligations of the Company. The Company performed a test on the restricted net assets of consolidated subsidiaries in accordance with Securities and Exchange Commission Regulation S-X Rule 4-08 (e) (3), “General Notes to Financial Statements” and concluded that the restricted net assets did not exceed 25% of the consolidated net assets of the Company as of December 31, 2020 and it was not applicable for the Company to disclose the condensed financial information of the parent company. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of presentation | (a) Basis of presentation The consolidated financial statements of the Group have been prepared in accordance with U.S. GAAP. Significant accounting policies followed by the Group in the preparation of the consolidated financial statements are summarized below. |
Basis of consolidation | (b) Basis of consolidation The Group's consolidated financial statements include the financial statements of the Company, its subsidiaries and VIEs for which the Company or its subsidiary is the primary beneficiary. All transactions and balances among the Company, its subsidiaries and VIEs have been eliminated upon consolidation. A subsidiary is an entity in which the Company, directly or indirectly, controls more than one half of the voting powers; or has the power to appoint or remove the majority of the members of the board of directors; or to cast a majority of votes at the meeting of directors; or has the power to govern the financial and operating policies of the investee under a statute or agreement among the shareholders or equity holders. 2. SIGNIFICANT ACCOUNTING POLICIES (Continued) (b) Basis of consolidation (Continued) A VIE is an entity in which the Company, or its subsidiary, through contractual agreements, bears the risks of, and enjoys the rewards normally associated with ownership of the entity, and therefore the Company or its subsidiary is the primary beneficiary of the entity. All transactions and balances between the Company, its subsidiaries and VIEs have been eliminated upon consolidation. |
Use of estimates | (c) Use of estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the consolidated financial statements and accompanying notes. Significant accounting estimates reflected in the Group's consolidated financial statements include revenue recognition, inventory provision, fair value of preferred shares, determination of share-based compensation expenses, valuation allowance for deferred tax assets, the discount rate for lease. Actual results could differ from those estimates, and such differences may be material to the consolidated financial statements. Beginning in January 2020, the outbreak of 2019 novel coronavirus ("COVID-19") has severely impacted China and the rest of the world. The Group’s business and operations have also been affected as a result. As a result of uncertainty and frequently changing information regarding the COVID-19 pandemic and its impact on global economic conditions, estimates may change frequently and in the near term, especially for inventory provision. Due to market conditions and consumer demand being less favourable than the Group expected as a result of the impacts of COVID-19, the Group recorded an inventory provision of RMB20,948 as of December 31, 2020. |
Functional currency and foreign currency translation | (d) Functional currency and foreign currency translation The Group uses Renminbi (“RMB”) as its reporting currency. The functional currency of the Company and its subsidiaries incorporated in Hong Kong and Cayman Islands is United States dollar (“US$”), and in France is Euro (“EUR€”), while the functional currency of the Group’s entities in PRC is RMB, which is their respective local currency. In the consolidated financial statements, the financial information of the Company and its subsidiaries, which use foreign currency as their functional currency, have been translated into RMB. Assets and liabilities are translated at the exchange rates on the balance sheet date, equity amounts are translated at historical exchange rates, and revenues, expenses, gains, and losses are translated using the average exchange rate for the period. Translation adjustments arising from these are reported as foreign currency translation adjustments and are shown as a component of other comprehensive income (loss) in the consolidated statement of comprehensive income (loss). Foreign currency transactions denominated in currencies other than functional currency are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are remeasured at the applicable rates of exchange in effect at that date. Foreign exchange gains and losses resulting from the settlement of such transactions and from remeasurement at year-end are recognized in foreign currency exchange gains (losses), net in the consolidated statement of operations. |
Convenience translation | (e) Convenience translation Translations of balances in the consolidated balance sheets, consolidated statements of operations, consolidated statements of comprehensive income (loss) and consolidated statements of cash flows from RMB into US$ as of and for the year ended December 31, 2020 are solely for the convenience of the reader and were calculated at the noon buying rate of US$ 1.00 = RMB6.5250 on December 31, 2020 as set forth in the H.10 statistical release of the U.S. Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on December 31, 2020, or at any other rate. |
Cash and cash equivalents | (f) Cash and cash equivalents Cash includes currency on hand and deposits held by financial institutions that can be added to or withdrawn without limitation. Cash equivalents represent short-term and highly liquid investments placed with banks, and all highly liquid investments with original maturities of three months or less. |
Restricted cash | (g) Restricted cash Restricted cash as of December 31, 2020 primarily represents bank balance of RMB5,715 which is restricted for settlement of certain liabilities. The Group did not have any restricted cash as of December 31, 2019. |
Short-term investments | (h) Short-term investments For short-term investments in financial instruments with a variable interest rate indexed to the performance of underlying assets, the Company elected the fair value method at the date of initial recognition and carried these investments subsequently at fair value. Changes in fair values are reflected in the consolidated statements of operations. |
Accounts receivable | (i) Accounts receivable Accounts receivable are stated at the historical carrying amount net of allowance for doubtful accounts. The accounts receivable mainly include receivables from platform distributor customers as well as receivables from independent payment channels or payment channel functions operated by platforms, who collect from end customers on behalf of the Group before the Group’s delivery of products (“Payment Channels”). The receivable from platform distributor customers is settled in accordance with credit terms mutually agreed. The receivable from Payment Channels is settled upon pre-agreed days after the Group delivers products to end customers, or when customers confirm their receipts of products, whichever is earlier. The allowance for doubtful accounts reflects the Group’s best estimate of expected losses. Before January 1, 2020, the Group determines the allowance for doubtful accounts based on an assessment of historical collection activity, the current business environment and forecasts that may affect the customers' ability to pay. From January 1, 2020, the Group determines the expected credit loss provisions based on ASC Topic 326, detailed as Note 2(j). |
Expected credit losses | (j) Expected credit losses The Group adopted the accounting standards update of ASC Topic 326 and several associated ASUs related to the measurement of credit losses on January 1, 2020 using a modified retrospective approach, which did not have a material impact on retained earnings (accumulated deficit). The Group’s accounts receivable and other receivables classified as other current assets and other non-current assets are within the scope of ASC Topic 326. The Group has identified the relevant risk characteristics of its customers and the related receivables and other receivables which include size, type of the services or products the Group provides, or a combination of these characteristics. Receivables with similar risk characteristics have been grouped into pools. For each pool, the Group considers the historical credit loss experience, current economic conditions, supportable forecasts of future economic conditions, and any recoveries in assessing the lifetime expected credit losses. Other key factors that influence the expected credit loss analysis include customer demographics, payment terms offered in the normal course of business to customers, and industry-specific factors that could impact the Group’s receivables. Additionally, external data and macroeconomic factors are also considered. This is assessed at each quarter based on the Group’s specific facts and circumstances. The Group’s accounts receivable primarily include (i) receivables from the e-commerce platform distributors who sell products to their end customers on prepayment term and therefore are subject to limited credit loss risk from their customers, and (ii) receivables from Payment Channels who collect from the Group’s end customers on behalf of the Group before the delivery of products. Based on such industry practice and considering no significant bad debt expense incurred historically, the Group expected no significant credit losses will be incurred for accounts receivable. For the year ended December 31, 2020, the Group recorded RMB2,643 expected credit loss expense in general and administrative expenses for other receivables. No allowance was made for the accounts receivable and other receivables for the year ended December 31, 2018 and 2019. |
Inventories, net | (k) Inventories, net Inventories are stated at the lower of cost or net realizable value. Cost is determined using the weighted average method. Provisions are made for excessive, slow moving, expired and obsolete inventories as well as for inventories with carrying values in excess of market. Certain factors could impact the realizable value of inventory, so the Group continually evaluates the recoverability based on assumptions about customer demand and market conditions. The evaluation may take into consideration historical usage, inventory aging, expiration date, expected demand, anticipated sales price, new product development schedules, the effect new products might have on the sale of existing products, product obsolescence, customer concentrations, and other factors. The provision is equal to the difference between the cost of inventory and the estimated net realizable value based upon assumptions about future demand and market conditions. If actual market conditions are less favorable than those projected by management, additional inventory provision may be required that could negatively impact the Group’s gross margin and operating results. If actual market conditions are more favorable, the Group may have higher gross margin when products that have been previously provided for are eventually sold. |
Property and equipment, net | ( l ) Property and equipment is carried at cost less accumulated depreciation and impairment, if any. Depreciation is calculated on a straight-line basis over the following estimated useful lives. Category Estimated useful lives Machinery 3 years Electronic equipment 3 years Office furniture and equipment 3 years Vehicles 4 years Leasehold improvements Shorter of the term of the lease or the estimated useful lives of the assets Repairs and maintenance costs are charged to expenses as incurred, whereas the costs of renewals and betterment that extend the useful lives of property and equipment are capitalized as additions to the related assets. The Group recognizes the gain or loss on the disposal of property and equipment in the consolidated statements of operations. Construction in progress represents direct costs that are related to the construction of property and equipment and incurred in connection with bringing the assets to their intended use. The costs of construction in progress are transferred to specific property and equipment accounts and the depreciation of these assets commences when the assets are ready for their intended use. |
Intangible assets, net | ( m ) Intangible assets, net Intangible assets purchased from third parties are initially recorded at cost and amortized on a straight-line basis over the estimated economic useful lives. The acquired intangible assets are recognized and measured at fair value and are expensed or amortized using the straight-line approach over the estimated economic useful lives of the assets. The estimated useful lives of intangible assets are as follows: Category Estimated useful lives Trademarks 9-15 years Software 5 years |
Goodwill | ( n ) Goodwill Goodwill represents the excess of the purchase price over the amounts assigned to the fair value of the identifiable assets acquired and the liabilities assumed of an acquired business. Goodwill assessment for impairment is performed on at least an annual basis as of December 31 or whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. Prior to the adoption of ASU No. 2017-04, the Group performs a two-step goodwill impairment test. The first step compares the fair values of each reporting unit to its carrying amount, including goodwill. If the fair value of a reporting unit exceeds its carrying amount, goodwill is not considered impaired and the second step will not be required. If the carrying amount of a reporting unit exceeds its fair value, the second step compares the implied fair value of the affected reporting unit’s goodwill to the carrying value of that goodwill. The implied fair value of goodwill is determined in a manner similar to accounting for a business combination with the allocation of the assessed fair value determined in the first step to the assets and liabilities of the reporting unit. The excess of the fair value of the reporting unit over the amounts assigned to the assets and liabilities is the implied fair value of goodwill. An impairment loss is recognized for any excess in the carrying value of goodwill over the implied fair value of goodwill. The judgment in estimating the fair value of reporting units includes estimating future cash flows, determining appropriate discount rates and making other assumptions. Changes in these estimates and assumptions could materially affect the determination of the fair value of each reporting unit. In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment by removing Step 2. An entity will, therefore, perform the goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and recognizing an impairment charge for the amount by which the carrying amount exceeds the fair value, not to exceed the total amount of goodwill allocated to the reporting unit. An entity still has the option to perform a qualitative assessment to determine if the quantitative impairment test is necessary. The initial impact of applying ASU 2017-04 on consolidated financial statements has no impact to the retained earnings (accumulated deficit) as of January 1, 2020. |
Investments | No impairment provision was made for the years ended December 31, 2018, 2019 and 2020. ( o ) Investments 1) Equity investments accounted for using the equity method The Group accounts for its equity investments over which it has significant influence but does not own a majority equity interest or otherwise control using the equity method. The Group adjusts the carrying amount of the investment and recognizes investment income or loss for its share of the earnings or losses of the investee after the date of investment. 2) Equity investments without readily determinable fair values The Group elected to record equity investments without readily determinable fair values and not accounted for by the equity method at cost, less impairment, adjusted for subsequent observable price changes, and will report changes in the carrying value of the equity investments in current earnings. Changes in the carrying value of the equity investment will be required to be made whenever there are observable price changes in orderly transactions for the identical or similar investment of the same issuer. The Group monitors its investments for other-than-temporary impairment by considering factors including, but not limited to, current economic and market conditions, the operating performance of the companies including current earnings trends and other company-specific information. |
Impairment of long-lived assets | ( p ) Impairment of long-lived assets Long-lived assets are evaluated for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying value of an asset may not be fully recoverable or that the useful life is shorter than the Group had originally estimated. When these events occur, the Group evaluates the impairment for the long-lived assets by comparing the carrying value of the assets to an estimate of future undiscounted cash flows expected to be generated from the use of the assets and their eventual disposition. If the sum of the expected future undiscounted cash flows is less than the carrying value of the assets, the Group recognizes an impairment loss based on the excess of the carrying value of the assets over the fair value of the assets. |
Leases | ( q ) In February 2016, the FASB issued ASC 842, Leases, to require lessees to recognize all leases, with certain exceptions, on the balance sheet, while recognition on the operations will remain similar to lease accounting under ASC 840. Subsequently, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, Leases, ASU No. 2018-11, Targeted Improvements, ASU No. 2018-20, Narrow-Scope Improvements for Lessors, and ASU 2019-01, Codification Improvements, to clarify and amend the guidance in ASU No. 2016-02. As a lessee Operating lease The Group early adopted the ASUs as of January 1, 2018 using the modified retrospective approach. The adoption impact was immaterial. Upon adoption, the Group elected the package of practical expedients permitted under the transition guidance within the new standard, which allowed the Group to carry forward the historical determination of contracts as leases, lease classification and not reassess initial direct costs for historical lease arrangements. In addition, the Group also elected the practical expedient to apply consistently to all of the Group’s leases to use hindsight in determining the lease term (that is, when considering lessee options to extend or terminate the lease and to purchase the underlying asset) and in assessing impairment of the Group’s right-of-use assets. The Group includes a right-of-use asset and lease liability related to substantially all of the Group’s lease arrangements in the consolidated balance sheets. All of the Group’s leases are operating leases. Operating lease assets are included within right-of-use assets, and the corresponding lease liabilities are included in either current or long-term liabilities. The Group has elected not to present short-term leases on the consolidated balance sheet as these leases have a lease term of 12 months or less at commencement date of the lease and do not include options to purchase or renew that the Group is reasonably certain to exercise. The Group recognizes lease expenses for such short-term lease generally on a straight-line basis over the lease term. All other lease assets and lease liabilities are recognized based on the present value of lease payments over the lease term at commencement date. Because most of the Group’s leases do not provide an implicit rate of return, the Group uses the Group’s incremental borrowing rate based on the information available at adoption date or lease commencement date in determining the present value of lease payments. |
Mezzanine equity | ( r ) Mezzanine equity Mezzanine equity represents the preferred shares issued by the Company. The preferred shares are redeemable at the holders’ option any time after a certain date and are contingently redeemable upon the occurrence of certain liquidation events outside of the Company’s control. Therefore, the Group classifies all of the preferred shares as mezzanine equity (Note 18). In accordance with ASC 480-10, the mezzanine equity is initially measured based on its fair value at date of issuance. The preferred shares can be converted either voluntarily before a qualified initial public offering (“Qualified IPO”, referring to a public offering of ordinary shares of the Company registered under the Securities Act and with an implied pre-money valuation of US$5,000,000 or more) or automatically upon a Qualified IPO. The Company accretes changes in the redemption value over the period from the date of issuance to the earliest redemption date of the instrument using the interest method. According to ASC 480-10-S99-2, where fair value at date of issuance is less than the mandatory redemption amount, the carrying amount is to be increased by periodic accretions, using the interest method, so that the carrying amount will equal the mandatory redemption amount at the mandatory redemption date. Each increase in carrying amount is to be recorded as charges against retained earnings or, in the absence of retained earnings, as charges against additional paid-in capital until additional paid-in capital is reduced to zero. |
Revenue recognition | ( s ) Revenue recognition The Group adopted ASC 606 for all periods presented. According to ASC 606, revenue is recognized when control of the promised good or service is transferred to the customer in an amount that reflects the consideration the Group expects to receive in exchange for those goods or services, after considering estimated sales return allowances, price concessions, discount and value added tax (“VAT”). Consistent with the criteria of Topic 606, the Group follows five steps for its revenue recognition: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The Group’s revenues are primarily derived from (i) sales of the Group’s products to third party platform distributor customers who then sell to end customers and (ii) sales of the Group’s products to end customers directly through the Group’s online stores run on third party e-commerce platforms and through offline stores operated by the Group. Refer to Note 15 to the consolidated financial statements for disaggregation of the Group's revenues for the years ended December 31, 2018, 2019 and 2020. The Group enters into two types of agreements with third party e-commerce platforms: 1) Distribution Agreements Under the distribution agreements, the platform distributor customers purchase products from the Group and sell to end customers under the platform distributor customer’s name. According to the agreements, the platform distributor customers take control of the products and are entitled to rights of return and price protection. After taking control of the products, the platform distributor customer is responsible for selling and fulfilling all obligations in its sales contracts with end customers, including delivering the products and providing customer support. Under the distribution agreement, the Group has a sale contract with the platform distributor customer and has no sales contract with the end customers. Based on these indicators, the Group determined the e-commerce platform distributors (as opposed to the end customers) as its customers according to ASC 606-10-55-39. 2) Platform Service Agreements Under the platform service agreements, the Group sets up online stores on the platforms to sell the Group’s product to end customers. The platforms provide services to support the operations of the online store including processing sales orders and collecting from end customers. The platforms charge the Group service fees based on the Group’s sales through the online stores. The Group enters sale contracts directly with the end customers. The platforms do not take control of the goods and do not include sales contracts with end customers. The Group is responsible for selling and fulfilling all obligations according to its sales contracts with end customers, including delivering products and providing customer support. Accordingly, the Group determined the end customers (as opposed to the platforms) as its customers according to ASC 606-10-55-39. The sales contracts with end customers normally include a customer’s right to return products within 7 days after receipt of goods. The Group identifies its performance obligation to both e-commerce platform distributor customers and end customers as to transfer the control of the products ordered to the customers. Contracts with customers may include multiple performance obligations if there is a need to separate one order into multiple deliveries. In those scenarios, transaction price will be allocated to different performance obligations based on relative standalone selling prices. The Group recognizes revenue from sales to e-commerce platform distributors upon delivery of the products to e-commerce platform distributors’ warehouses in an amount equal to the contract sales prices less estimated sales allowances for sales returns, rebates and price protection. The Group recognizes revenues from sales to end customers upon delivery of the product to end customers in an amount equal to the contract sales prices less estimated sales allowances for sales returns and sales incentives. Estimated sales allowances for sales returns, rebates, incentives and price protection are made based on contract terms and historical patterns. The estimated sales allowances for sales returns, rebates, incentives and price protection at December 31, 2018, 2019 and 2020 were RMB1,661,RMB5,591 and RMB6,605, respectively. 2. SIGNIFICANT ACCOUNTING POLICIES (Continued) (s) Revenue recognition (Continued) Accounts receivable balances A receivable is recorded when the Group has an unconditional right to consideration. A right to consideration is unconditional if only the passage of time is required before payment of that consideration is due. A contract asset is recorded when the Group has transferred products to the customer before payment is received or is due, and the Group’s right to consideration is conditional on future performance or other factors in the contract. No contract asset was recorded as at December 31, 2019 and 2020. Sales to e-commerce platform distributor customers are on credit terms, and receivables are recorded upon recognizing revenues. Sales through online stores on platforms are paid by the end customers to Payment Channels before the Group delivers the products. Payment Channels settle with the Group based upon pre-agreed days after the Group delivers products to end customers, or when the end customers confirm their receipts of products, whichever is earlier. As of December 31, 2019 and 2020, accounts receivables were RMB265,302 and RMB419,317, respectively. No expected credit loss provision was provided for the periods presented. A contract liability is recorded when the Group’s obligation to transfer goods to a customer has not yet occurred but for which the Group has received consideration from the customer. The Group presents such amounts as advances from customers on the consolidated balance sheets. As of December 31, 2019 and 2020, advances from customers were RMB3,177 and RMB6,228, respectively. All contract liability balances at the beginning of the years were recognized as revenue in the following years due to generally short-term duration of contracts. During the years ended December 31, 2018, 2019 and 2020, the Group did not have Practical Expedients The transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied has not been disclosed, as substantially all of the Group’s contracts have a duration of one year or less. Payment terms with platform distributor customers and Payment Channels generally require settlement within one year or less. The Group has determined that its contracts generally do not include a significant financing component. The Group generally expenses sales commissions when incurred because the amortization period is one year or less. These costs are recorded within selling and marketing expenses. |
Cost of revenues | ( t ) Cost of revenues Cost of revenues consists primarily of material costs, consignment manufacturing cost and related costs that are directly attributable to the production of products. |
Fulfilment expenses | ( u ) Fulfilment expenses Fulfilment expenses primarily represent expenses incurred for warehousing, shipping and delivering products to customers, mainly including rental and personnel costs for warehouses as well as third party shipping costs. |
Selling, marketing, general and administrative expenses | ( v ) Selling and marketing expenses Selling and marketing expenses primarily consist of (i) advertising and marketing promotion expenses, (ii) platform commission, (iii) personnel costs for sales and marketing staff, (iv) rental, depreciation expenses, personnel and other costs for offline experience stores and (v) share-based compensation expenses. For the years ended December 31, 2018, 2019 and 2020, advertising and marketing promotion expenses totalled to RMB256,097, RMB879,632 and RMB2,215,074, respectively. 2. SIGNIFICANT ACCOUNTING POLICIES (Continued) ( x ) General and administrative expenses General and administrative expenses consist of personnel costs including share-based compensation expenses and other expenses which are related to the general corporate functions, including accounting, finance, tax, legal and human relations, costs associated with use by these functions of facilities and equipment, such as depreciation expenses, rental and other general corporate related expenses. |
Research and development expenses | ( w ) Research and development expenses Research and development expenses primarily consist of personnel costs for research and development staff, general expenses and depreciation expenses associated with research and development activities. |
Employee social security and welfare benefits | ( y ) Employee social security and welfare benefits Employees of the Group in the PRC are entitled to staff welfare benefits including pension, work-related injury benefits, maternity insurance, medical insurance, unemployment benefit and housing fund plans through a PRC government-mandated multi-employer defined contribution plan. The Group is required to accrue and pay the government for these benefits based on certain percentages of the employees’ salaries, up to a maximum amount specified by the local government. The PRC government is responsible for the medical benefits and the pension liability to be paid to these employees, and the Group’s obligations are limited to the amounts contributed with no legal obligation beyond the contributions made. Employee social security and welfare benefits, as part of the personnel costs, included as expenses in the accompanying consolidated statement of operations amounted to RMB2,993, RMB21,495 and RMB41,719 for the years ended December 31, 2018, 2019 and 2020, respectively. |
Share-based compensation | ( z ) Share-based compensation The Group grants restricted shares to the founders and share options to its management and other key employees (collectively, “Share-based Awards”). Such compensation is accounted for in accordance with ASC 718, Compensation—Stock Compensation. Share-based Awards with service conditions only are measured at the grant date fair value of the awards and recognized as expenses using the straight-line method, net of estimated forfeitures, if any, over the requisite service period. Share-based Awards that are subject to both service conditions and the occurrence of an initial public offering ("IPO") as performance condition, are measured at the grant date fair value. Cumulative share-based compensation expenses for the awards that have satisfied the service condition, amounting to RMB232,431, were recorded upon the completion of the IPO, using the graded-vesting method. The fair value of the restricted shares was assessed using the income approach/discounted cash flow method, with a discount for lack of marketability given that the shares underlying the awards were not publicly traded at the time of grant. This assessment requires complex and subjective judgments regarding the Group’s projected financial and operating results, its unique business risks, the liquidity of its ordinary shares and its operating history and prospects at the time the grants were made. The fair value of share options is estimated on the grant date using the Binomial option pricing model. The assumptions used in share-based compensation expense recognition represent management’s best estimates, but these estimates involve inherent uncertainties and application of management judgment. If factors change or different assumptions are used, the share-based compensation expenses could be materially different for any period. Moreover, the estimates of fair value of the awards are not intended to predict actual future events or the value that ultimately will be realized by grantees who receive these awards, and subsequent events are not indicative of the reasonableness of the original estimates of fair value made by the Group for accounting purposes. |
Income taxes | ( aa ) Income taxes Current income taxes are provided on the basis of net income for financial reporting purposes, adjusted for income and expense items which are not assessable or deductible for income tax purposes, in accordance with the regulations of the relevant tax jurisdictions. Deferred income taxes are accounted for using an asset and liability method. Under this method, deferred income taxes are recognized for the tax consequences of temporary differences by applying enacted statutory rates applicable to future years to differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. The tax base of an asset or liability is the amount attributed to that asset or liability for tax purpose. The effect on deferred taxes of a change in tax rates is recognized in consolidated statement of operations in the period of change. A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more likely than not that some portion of, or all of the deferred tax assets will not be realized. 2. SIGNIFICANT ACCOUNTING POLICIES (Continued) ( aa ) Income taxes (Continued) Uncertain tax positions The guidance on accounting for uncertainties in income taxes prescribes a more likely than not threshold for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Guidance also applies to the recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, accounting for income taxes in interim periods, and income tax disclosures. Significant judgment is required in evaluating the Group's uncertain tax positions and determining its provision for income taxes. The Group recognizes interest and penalties, if any, under accrued expenses and other current liabilities on its balance sheet and under other expenses in its consolidated statement of operations. There were no interest and penalties associated with uncertain tax positions for the years ended December 31, 2018, 2019 and 2020. As of December 31, 2019 and 2020, the Group did not have any significant unrecognized uncertain tax positions. |
Comprehensive income (loss) | ( ab ) Comprehensive income (loss) Comprehensive income (loss) is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. During the periods presented, comprehensive income (loss) is reported in the consolidated statements of comprehensive income, and other comprehensive income (loss) includes foreign currency translation adjustments. |
Statutory reserves | ( ac ) Statutory reserves The Company's subsidiaries and VIEs established in the PRC are required to make appropriations to certain non-distributable reserve funds. In accordance with the laws applicable to the Foreign Investment Enterprises established in the PRC, the Company's subsidiaries registered as wholly-owned foreign enterprises are required to make appropriations from their annual after-tax profits (as determined under generally accepted accounting principles in the PRC ("PRC GAAP")) to reserve funds including a general reserve fund, an enterprise expansion fund and a staff bonus and welfare fund. The appropriation to the general reserve fund must be at least 10% of the annual after-tax profits calculated in accordance with PRC GAAP. Appropriation is not required if the general reserve fund has reached 50% of the registered capital of the company. Appropriations to the enterprise expansion fund and staff bonus and welfare fund are made at the respective company's discretion. In addition, in accordance with the PRC Company Laws, the Group's VIEs registered as Chinese domestic companies must make appropriations from annual after-tax profits as determined under the PRC GAAP to non-distributable reserve funds including statutory surplus fund and discretionary surplus fund. The appropriation to the statutory surplus fund must be 10% of the annual after-tax profits as determined under PRC GAAP. Appropriation is not required if the statutory surplus fund has reached 50% of the registered capital of the company. Appropriation to the discretionary surplus fund is made at the discretion of the Company. The uses of the general reserve fund, enterprise expansion fund, statutory surplus fund and discretionary surplus fund are restricted to offsetting of losses or increasing of the registered capital of the respective company. The staff bonus and welfare fund is a liability in nature and is restricted to fund payments of special bonus to employees and for the collective welfare of all employees. None of these reserves is allowed to be transferred to the Company in terms of cash dividends, loans or advances, nor can the reserves be distributed except under liquidation. For the years ended December 31, 2018, 2019 and 2020, the profit appropriation to statutory surplus fund for the Group’s entities incorporated in the PRC was nil, RMB19,322 and RMB729, respectively. No appropriation to other reserve funds was made for any of the periods presented. |
Income (loss) per share | ( a d ) Income (loss) per share Basic income (loss) per share is computed by dividing net income (loss) attributable to ordinary shareholders, considering the accretion of redemption feature related to the Company’s preferred shares (Note 18), by the weighted average number of ordinary shares outstanding during the period using the two-class method. Under this method, net income is allocated between ordinary shares and other participating securities based on their participating rights. Net losses are not allocated to other participating securities if based on their contractual terms they are not obligated to share the losses. Diluted income (loss) per share is calculated by dividing net income (loss) attributable to ordinary shareholders, as adjusted for the effect of dilutive ordinary equivalent shares, if any, by the weighted average number of ordinary and dilutive ordinary equivalent shares outstanding during the period. Ordinary equivalent shares consist of ordinary shares issuable upon the conversion of preferred shares, using the if-converted method, and shares issuable upon the exercise of share options and the vesting of restricted shares using the treasury stock method. Ordinary equivalent shares are not included in the denominator of the diluted income (loss) per share calculation when inclusion of such share would be anti-dilutive. |
Related parties | ( a e ) Related parties Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject to common control or significant influence, such as a family member or relative, shareholder, or a related corporation. |
Recent accounting pronouncements | (af) Recent accounting pronouncements Impact of newly adopted accounting pronouncement In June 2016, the FASB issued ASU No. 2016-13 (ASU 2016-13), “Financial Instruments—Credit Losses”, which introduces new guidance for credit losses on instruments within its scope. The Group adopted this ASC Topic 326 and several associated ASUs on January 1, 2020 using a modified retrospective approach as detailed in Note 2(j). In August 2018, the FASB issued ASU No. 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that Is a Service Contract. The ASU aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The ASU is effective for interim and annual periods beginning after December 15, 2019, with early adoption permitted. Adoption of the ASU is either retrospective or prospective. The Group adopted the ASU on January 1, 2020, which did not have a material impact on the consolidated financial statements. Recently issued accounting pronouncements not yet adopted In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes, as part of its initiative to reduce complexity in accounting standards. The amendments in the ASU are effective for fiscal years beginning after December 15, 2020, including interim periods therein. Early adoption of the standard is permitted, including adoption in interim or annual periods for which financial statements have not yet been issued. The Group plans to adopt the ASU prospectively on January 1, 2021. The ASU is currently not expected to have a material impact on the consolidated financial statements. In January 2020, the FASB issued ASU No. 2020-01, Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815)—Clarifying the Interactions between Topic 321, Topic 323, and Topic 815 (a consensus of the Emerging Issues Task Force). The amendments in this update clarify the interaction of the accounting for equity securities under Topic 321 and investments accounted for under the equity method of accounting in Topic 323 and the accounting for certain forward contracts and purchased options accounted for under Topic 815. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. Early adoption is permitted. The ASU is currently not expected to have a material impact on the Company’s consolidated financial statements. 2. SIGNIFICANT ACCOUNTING POLICIES (Continued) (af) Recent accounting pronouncements (Continued) In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments in this update are effective for all entities as of March 12, 2020 through December 31, 2022. The amendments in this update provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The ASU is currently not expected to have a material impact on the Company’s consolidated financial statements. |
Principal Activities and Reor_2
Principal Activities and Reorganization (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Details of Principal Subsidiaries and VIE | As of December 31, 2020, details of the Company's principal subsidiaries and VIE were as follows: Place of Date of Percentage of incorporation incorporation beneficial ownership Principal activities Wholly owned subsidiaries: Guangzhou Yatsen Global Co., Ltd.(“Guangzhou Yatsen”) PRC July 29, 2015 100% Cosmetics Sales Guangzhou Yatsen Cosmetics Co., Ltd. PRC March 24, 2017 100% Cosmetics Sales Guangzhou Yiyan Cosmetics Co., Ltd. PRC April 15, 2019 100% Cosmetics Sales Aoyan (Shanghai) Cosmetics Trading Co., Ltd.(“Aoyan”) PRC June 4, 2019 100% Cosmetics Sales VIE: Huizhi Weimei (Guangzhou) Trading Co., Ltd.(“HZ VIE”) PRC February 22, 2019 100% Cosmetics Sales |
Variable Interest Entity Primary Beneficiary | |
Consolidated Financial Information of Consolidated VIEs | The following consolidated financial information of the consolidated VIEs is included in the accompanying consolidated financial statements as of and for the year ended: As of December 31, 2019 2020 RMB RMB Cash and cash equivalents 3,022 31,147 Accounts receivable 9,492 7,331 Inventories, net 14,683 1,050 Prepayments and other current assets 11,772 15,973 Amounts due from non-VIE subsidiaries 49,536 111 Total current assets 88,505 55,612 Property and equipment, net 2,036 16,020 Goodwill 20,596 - Intangible assets, net 6,997 289 Deferred tax assets 133 - Other non-current assets - 457 Total non-current assets 29,762 16,766 Total assets 118,267 72,378 Accounts payable 19,461 6,892 Advances from customers 3,155 6,156 Accrued expenses and other liabilities 12,120 42,874 Income tax payables 7,290 929 Amounts due to non-VIE subsidiaries 60,711 50,591 Total current liabilities 102,737 107,442 Deferred tax liabilities 1,742 - Total liabilities 104,479 107,442 Year ended December 31, 2019 2020 RMB RMB Net revenues 251,385 907,735 Net income (loss) (15,066) (176,187) Net cash provided by operating activities 3,022 47,830 Net cash used in investing activities - (17,102) Net cash used in financing activities - (2,603) Net increase in cash and cash equivalents 3,022 28,125 |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Estimated Useful Lives of Property and equipment | Property and equipment is carried at cost less accumulated depreciation and impairment, if any. Depreciation is calculated on a straight-line basis over the following estimated useful lives. Category Estimated useful lives Machinery 3 years Electronic equipment 3 years Office furniture and equipment 3 years Vehicles 4 years Leasehold improvements Shorter of the term of the lease or the estimated useful lives of the assets Property and equipment, net consisted of the following: As of December 31, 2019 2020 RMB RMB Leasehold improvements 87,858 305,955 Electronic equipment 14,275 32,213 Machinery 4,640 15,562 Office furniture and equipment 3,071 3,818 Vehicles 2,495 4,311 Construction in progress 9,854 2,779 Total 122,193 364,638 Less: accumulated depreciation (12,783) (79,341) Property and equipment, net 109,410 285,297 |
Estimated Useful Lives of Intangible Assets | The estimated useful lives of intangible assets are as follows: Category Estimated useful lives Trademarks 9-15 years Software 5 years |
Cash and Cash Equivalents and_2
Cash and Cash Equivalents and Restricted Cash (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Cash And Cash Equivalents [Abstract] | |
Schedule of Cash and Cash Equivalents | Cash and cash equivalents represent cash on hand and demand deposits placed with banks or other financial institutions, and all highly liquid investments with original maturities of three months or less. Cash and cash equivalents and restricted cash balances as of December 31, 2019 and 2020 primarily consist of the following currencies: As of December 31, 2019 2020 Amount RMB Amount RMB Cash and cash equivalents RMB 97,713 97,713 265,401 265,401 US$ 82,977 578,866 829,774 5,414,276 EUR - - 5,885 47,226 SGD - - 26 126 Total cash and cash equivalents 676,579 5,727,029 Restricted cash RMB - 6,363 Total cash, cash equivalents and restricted cash 676,579 5,733,392 |
Short Term Investments (Tables)
Short Term Investments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Investments All Other Investments [Abstract] | |
Schedule of Short Term Investment | As of December 31, 2019 2020 RMB RMB Wealth management product 10,000 - |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable | As of December 31, 2019 2020 RMB RMB Accounts receivable 265,302 419,317 |
Inventories, Net (Tables)
Inventories, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | Inventories, net consisted of the following: As of December 31, 2019 2020 RMB RMB Raw materials and packing materials 53,755 56,519 Finished goods 451,312 581,237 Inventories 505,067 637,756 Less: inventory provision (1,018) (20,948) Inventories, net 504,049 616,808 |
Prepayments and other current_2
Prepayments and other current assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Assets Unclassified [Abstract] | |
Summary of Prepayments and Other Current Assets | 8 . PREPAYMENTS AND OTHER CURRENT ASSETS As of December 31, 2019 2020 RMB RMB Prepayments of promotion fees (a) 35,051 133,575 VAT recoverable (b) 27,017 92,483 Commission rebate due from an online platform (c) 20,546 - Prepayments for products procurement (d) 13,908 6,742 Deposits, prepaid rental and property management fees 8,675 35,021 Others 10,034 36,820 115,231 304,641 (a) Prepayments of promotion fees mainly include prepayments made to online platforms for future services to promote the Group’s products through online advertising and prepaid short-term service fees to celebrity agencies and key opinion leaders. (b) VAT recoverable represent the balances that the Group can utilize to deduct its value-added tax liabilities in the future. (c) Commission rebate due from an online platform was recognised as of December 31,2019 due to the fact that the Group had met the annual sales target set by the platform and was entitled a preferential commission rate. (d) Prepayments for products procurement represent cash prepaid to the Group’s third-party suppliers for the procurement of products. |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Schedule of Forth the Group's Investments | The following sets forth the Group's investments: As of December 31, 2019 2020 RMB RMB Equity method investments (a) - 23,471 Equity investments without readily determinable fair values - 11,391 - 34,862 (a) The equity method investments were made in two newly formed entities with limited operations in the year ended December 31, 2020. |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
Estimated Useful Lives of Property and equipment | Property and equipment is carried at cost less accumulated depreciation and impairment, if any. Depreciation is calculated on a straight-line basis over the following estimated useful lives. Category Estimated useful lives Machinery 3 years Electronic equipment 3 years Office furniture and equipment 3 years Vehicles 4 years Leasehold improvements Shorter of the term of the lease or the estimated useful lives of the assets Property and equipment, net consisted of the following: As of December 31, 2019 2020 RMB RMB Leasehold improvements 87,858 305,955 Electronic equipment 14,275 32,213 Machinery 4,640 15,562 Office furniture and equipment 3,071 3,818 Vehicles 2,495 4,311 Construction in progress 9,854 2,779 Total 122,193 364,638 Less: accumulated depreciation (12,783) (79,341) Property and equipment, net 109,410 285,297 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets Net | As of December 31, 2019 2020 RMB RMB Cost: Trademark (a) 7,592 177,805 Software 3,435 15,778 Total cost 11,027 193,583 Less: accumulated amortization (999) (4,493) Intangible assets, net 10,028 189,090 (a) In the year ended December 31, 2020, the Group formed a subsidiary, in which Group held 90% equity interest, with a third party (“Seller”). In October 2020, the subsidiary completed acquisition of the trademark of Galénic, a French skincare brand, from the Seller. The amount of trademark recognized in this transaction was RMB 166,451. |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | As of December 31, 2020, estimated amortization expenses for future periods are expected to be as follows: Year ended December 31, 2020 RMB 2021 14,464 2022 14,040 2023 13,976 2024 13,612 2025 and thereafter 132,998 Total expected amortization expense 189,090 |
Other Non-Current Assets (Table
Other Non-Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Components of Other Non-Current Assets | As of December 31, 2019 2020 RMB RMB Long-term rental deposits 23,991 50,509 Prepaid long-term celebrity endorsement fees 5,687 3,996 Prepaid consideration for an acquisition - 95,427 Others 1,201 2,126 30,879 152,058 |
Accrued Expenses and Other Li_2
Accrued Expenses and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Liabilities | As of December 31, 2019 2020 RMB RMB Other taxes payable 62,040 83,040 Accrued storage and transportation fees 55,151 59,631 Accrued payroll related expenses 35,045 70,412 Accrued advertising and marketing expenses 15,690 77,948 Accrued leasehold improvement costs 13,300 56,490 Consideration payable for a business combination 3,196 - Refund obligation of sales return 1,005 3,918 Others 5,638 60,505 191,065 411,944 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Summary of Supplemental Information Related to Operating Leases | A summary of supplemental information related to operating leases is as follows: As of December 31, 2019 2020 RMB RMB Operating lease ROU assets 263,346 536,710 Operating lease liabilities-non-current 171,045 311,910 Operating lease liabilities-current 93,915 215,300 Total operating lease liabilities 264,960 527,210 Weighted average remaining lease term 2.80 years 2.57 years Weighted average discount rate 5.74% 5.41% |
Summary of Lease Cost Recognized and Supplemental Cashflow Information Related to Operating Lease | A summary of lease cost recognized in the Group’s consolidated statements of operations and supplemental cashflow information related to operating leases is as follows: Year ended December 31, 2018 2019 2020 RMB RMB RMB Operating lease cost 3,615 53,752 179,515 Short-term lease cost 576 2,291 4,249 Variable cost - 1,557 6,396 Cash paid for operating leases 3,412 48,281 168,943 Right-of-use assets obtained in exchange for operating lease liabilities 22,705 295,454 448,148 |
Summary of Maturity of Operating Lease Liabilities under Non-Cancelable Operating Leases | A summary of maturity of operating lease liabilities under the Group’s non-cancellable operating leases as of December 31, 2020 is as follows: As of December 31, 2020 RMB 2021 236,009 2022 205,509 2023 103,456 2024 24,380 2025 4,111 Total lease payment 573,465 Less: interest (46,255) Present value of operating lease liability 527,210 |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Revenue By Channel for Respective Periods | The Group’s revenue by channel for the respective periods are detailed as follows: Year ended December 31, 2018 2019 2020 RMB RMB RMB Sales of product by channel —Sales to end customers through platforms 578,486 2,570,107 4,023,144 —Sales to platform distributor customers 56,830 359,629 678,873 —Others - 101,431 531,153 Total revenues 635,316 3,031,167 5,233,170 |
Income Tax Expenses (Tables)
Income Tax Expenses (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Summary of Components of Current and Deferred Income Taxes | The current and deferred components of income taxes appearing in the consolidated statements of operations are as follows: Year ended December 31, 2018 2019 2020 RMB RMB RMB Income (loss) before income tax expense (36,114) 147,335 (2,681,445) Current tax expense 1,718 75,671 3,519 Deferred tax expense (benefit) 2,292 (3,695) 3,451 Total income tax expense 4,010 71,976 6,970 |
Schedule of Effective Income Tax Rate Reconciliation | The income tax expense for each of the years ended December 31, 2018, 2019 and 2020 differs from the amount computed by applying the PRC statutory income tax rate of 25% to income before income tax expense due to the following: Year ended December 31, 2018 2019 2020 PRC statutory income tax rate 25% 25% 25% Permanent differences -32% 15% -17% Tax effect of different tax rate of different jurisdictions -1% -1% 0% Tax effect of Super Deduction and others 0% -2% 0% Changes in valuation allowance -3% 12% -8% Effective tax rates -11% 49% 0% |
Schedule of Deferred Tax Assets and Liabilities | The significant components of the Group's deferred tax assets were as follows: As of December 31, 2019 2020 RMB RMB Net operating loss carry forwards 17,068 222,325 Inventory valuation allowance 368 5,237 Accrued expenses and others 5,474 11,000 Total deferred tax assets 22,910 238,562 Less: valuation allowance (18,677) (237,965) Deferred tax assets, net 4,233 597 The Group's deferred tax liability was as follows: As of December 31, 2019 2020 RMB RMB Related to acquired intangible assets 1,742 1,557 |
Movement of Valuation Allowance | Movement of valuation allowance Year ended December 31, 2019 2020 RMB RMB Balance at beginning of the year 1,093 18,677 Additions 17,584 219,288 Balance at end of the year 18,677 237,965 |
Convertible Redeemable prefer_2
Convertible Redeemable preferred Shares ("Preferred Shares") (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Temporary Equity Disclosure [Abstract] | |
Summary of Issuance of Convertible Redeemable Preferred Shares | The following table summarizes the issuances of convertible redeemable preferred shares. Series Issuance Date Shares Issued Issue Price per Share Net Proceeds from Issuance US$ US$ RMB Seed August 1, 2017 200,000,000 0.0050 1,000 6,715 Seed March 25,2020 53,699,985 1.0615 57,000 403,230 Seed April 27, 2020 45,315,250 1.0615 48,100 340,082 Seed April 27, 2020 6,443,998 0.00001 - - Seed July 29, 2020 21,479,994 1.0615 22,800 159,530 Seed September 11, 2020 31,651,271 1.5009 47,505 324,882 A-1 October 9, 2017 66,667,000 0.0150 1,000 6,649 A-2 October 9, 2017 145,038,000 0.0207 3,008 20,000 A-2 October 9, 2017 38,677,000 0.0207 802 5,333 A-2 March 25,2020 15,035,996 1.0615 15,960 112,904 A-2 April 27, 2020 27,923,992 1.1173 31,200 220,593 B-1 September 5, 2018 14,503,820 0.0622 902 6,158 B-2 September 5, 2018 171,289,239 0.0655 11,220 76,594 B-3 October 22, 2018 85,351,118 0.0820 7,000 48,465 B-3+ February 25, 2019 87,075,383 0.1740 15,150 101,704 C July 26, 2019 206,907,594 0.5644 114,814 789,872 C April 27, 2020 26,573,188 0.5644 14,999 105,911 C September 11, 2020 39,859,783 0.5644 22,499 153,866 D March 25, 2020 66,432,971 1.1173 71,868 508,411 E September 11, 2020 144,331,134 1.5799 225,668 1,543,323 |
Preferred Shares Activities | The Company’s preferred shares activities for the years ended December 31, 2018, 2019 and 2020 are summarized below: Junior Preferred Shares Series B-1 and B-2 Preferred Shares Series B-3 Preferred Shares Series B-3+ Preferred Shares Series C Preferred Shares Series D Preferred Shares Series E Preferred Shares Total Number of shares Amount (RMB) Number of shares Amount (RMB) Number of shares Amount (RMB) Number of shares Amount (RMB) Number of shares Amount (RMB) Number of shares Amount (RMB) Number of shares Amount (RMB) Number of shares Amount (RMB) Balances as of January 1, 2018 450,382,000 46,698 - - - - - - - - - - - - 450,382,000 46,698 Issuance of preferred shares, net of issuance costs - - 185,793,059 82,752 85,351,118 48,465 - - - - - - - - 271,144,177 131,217 Accretion on preferred shares to redemption value - 4 - 2,567 - 894 - - - - - - - - - 3,465 Modification of preferred shares - 3,521 - - - - - 3,521 Derecognition of a forward liability - 2,986 - - - - - - - - - - - - - 2,986 Balances as of December 31, 2018 450,382,000 53,209 185,793,059 85,319 85,351,118 49,359 - - - - - - - - 721,526,177 187,887 Repurchase of preferred shares (60,349,275) (8,676) - - - - - - - - - - - - (60,349,275) (8,676) Issuance of preferred shares, net of issuance costs - - - - - - 87,075,383 101,704 206,907,594 789,872 - - - - 293,982,977 891,576 Accretion on preferred shares to redemption value - 2,181 - 8,625 - 4,920 - 8,796 - 34,678 - - - - - 59,200 Balances as of December 31, 2019 390,032,725 46,714 185,793,059 93,944 85,351,118 54,279 87,075,383 110,500 206,907,594 824,550 - - - - 955,159,879 1,129,987 Junior Preferred Shares Series B-1 and B-2 Preferred Shares Series B-3 Preferred Shares Series B-3+ Preferred Shares Series C Preferred Shares Series D Preferred Shares Series E Preferred Shares Total Number of shares Amount (RMB) Number of shares Amount (RMB) Number of shares Amount (RMB) Number of shares Amount (RMB) Number of shares Amount (RMB) Number of shares Amount (RMB) Number of shares Amount (RMB) Number of shares Amount (RMB) Balances as of December 31,2019 390,032,725 46,714 185,793,059 93,944 85,351,118 54,279 87,075,383 110,500 206,907,594 824,550 - - - - 955,159,879 1,129,987 Repurchase of preferred shares (132,718,241) (14,379) - - - - - - - - - - - - (132,718,241) (14,379) Issuance of preferred shares, net of issuance costs 195,106,488 1,561,221 - - - - - - 66,432,971 563,404 66,432,971 508,411 144,331,134 1,543,323 472,303,564 4,176,359 Redesignation of Founder’s ordinary shares to preferred shares 6,443,998 35,142 - - - - - - - - - - - - 6,443,998 35,142 Accretion on preferred shares to redemption value - 75,620 - 8,431 - 4,810 - 10,072 - 76,015 - 36,442 - 30,819 - 242,209 Redeemable convertible preferred shares converted into Class A ordinary shares upon the completion of the IPO (458,864,970) (1,704,318) (185,793,059) (102,375) (85,351,118) (59,089) (87,075,383) (120,572) (273,340,565) (1,463,969) (66,432,971) (544,853) (144,331,134) (1,574,142) (1,301,189,200) (5,569,318) Balances as of December 31, 2020 - - - - - - - - - - - - - - - - |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Share-Based Compensation Expenses | Share-based compensation expenses recognized during the years presented are as follows: Year ended December 31, 2018 2019 2020 RMB RMB RMB Share-based compensation expenses - Share-based compensation of founders' restricted shares (a) 9,793 50,837 1,030,178 - Related to repurchase of founders’ ordinary shares (b) 4,238 24,158 146,294 - Related to the issuances of preferred shares to investors (c) - - 303,627 - Related to redesignation of founder’s ordinary shares to preferred shares (Note 18(b)) - - 1,852 - Related to accelerated vesting of share options (d) 138,729 - Related to vesting of share options (f) - - 279,908 Total 14,031 74,995 1,900,588 |
Movement in Number of Share Options Granted and Related Weighted Average Exercise Prices | Movements in the number of share options granted and their related weighted average exercise prices are as follows: Number of options Weighted average exercise price (US$) Weighted average remaining contractual life (years) Aggregate intrinsic value (US$’000) As of January 1, 2018 - - Granted 67,404,501 0.0065 As of December 31, 2018 67,404,501 0.0065 5.04 Granted 62,896,041 0.0080 Forfeited (3,414,045) 0.0065 Modified from options to restricted shares (58,297,400) 0.0073 As of December 31, 2019 68,589,097 0.0073 4.58 Granted 136,230,857 0.2960 Cancelled (1,849,265) 0.0006 Forfeited (1,544,428) 0.2062 Accelerated vesting and exercised (15,518,385) - As of December 31, 2020 185,907,876 0.2179 13.73 749,602 Exercisable as of December 31, 2020 34,430,751 145,977 |
Schedule of Key Assumptions Used to Determine Fair Value of Share Options | The Company has used binomial option-pricing model to determine the fair value of the share options as of the grant dates. Key assumptions are set as below: Year ended December 31, 2018 2019 2020 RMB RMB RMB Weighted average fair value per option granted 0.0854 1.0360 7.3798 Weighted average exercise price 0.0434 0.0554 2.0418 Risk-free interest rate (1) 2.9%~3.1% 1.9%~2.8% 0.48%~1.01% Expected term (in year) (2) 5~7 4~7 10~16 Expected volatility (3) 42.5%~45.8% 45.0%~48.0% 50.9%~55.9% Dividend yield (4) 0% 0% 0% (1) The risk-free interest rates of periods within the contractual life of the share option are based on the daily treasury long-term rate of U.S. Department of the Treasury as of (2) The expected term is the contract life of the option. (3) Expected volatility is estimated based on the average of historical volatilities of the comparable companies in the same industry as at the valuation dates. (4) The Company has no history or expectation of paying dividend on its ordinary shares. The expected dividend yield was estimated based on the Company’s expected dividend policy over the expected term of the option. |
Schedule of Share-Based Compensation Expenses included in Statements of Income and Comprehensive Income | For the years ended December 31, 2018, 2019 and 2020, share-based compensation expenses have been included in the following accounts in the consolidated income and comprehensive income: Year ended December 31, 2018 2019 2020 RMB RMB RMB Fulfilment expenses - - 2,947 Selling and marketing expenses - - 54,332 General and administrative expenses 14,031 74,995 1,841,409 Research and development expenses - - 1,900 Total 14,031 74,995 1,900,588 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Summary of Basic and Diluted Net Income (Loss) per share | Basic and diluted net income (loss) per share for the years ended December 31, 2018, 2019 and 2020 are calculated as follow: Year ended December 31, 2018 2019 2020 RMB RMB RMB Numerator: Net income (loss) attributable to the Yatsen Holding Limited’s shareholders (40,124) 75,359 (2,687,807) Accretion to preferred shares redemption value (3,465) (59,200) (242,209) Deemed dividend due to modification of preferred shares (3,521) (61,239) (1,054,220) Net income (loss) attributable to ordinary shareholders of Yatsen Holding Limited (47,110) (45,080) (3,984,236) Denominator: Denominator for basic and diluted calculation—weighted average number of ordinary shares outstanding 271,261,594 450,499,736 833,714,126 Net income (loss) per ordinary share —Basic (0.17) (0.10) (4.78) —Diluted (0.17) (0.10) (4.78) |
Summary of Antidilutive Securities Excluded from Computation of Net Income (Loss) per Share | For the years ended December 31, 2018,2019 and 2020, the following shares outstanding were excluded from the calculation of diluted net income (loss) per ordinary share, as their inclusion would have been anti-dilutive for the years prescribed. Year ended December 31, 2018 2019 2020 Shares issuable upon conversion of preferred shares 532,193,603 834,357,412 959,555,911 Shares issuable upon exercise of share options 28,501,731 85,255,920 113,142,382 Restricted shares become outstanding upon vesting 512,479,500 380,772,174 256,752,927 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Schedule of Major Transactions and Balances Amount with Related Parties | Major transactions and balances amount with related parties were as follows: Transactions with a related party Year ended December 31, 2018 2019 2020 RMB RMB RMB Purchases of storage and transportation service from an affiliated company - - 15,183 Purchases of inventories from an affiliated company 67 389 - Balance amounts with related parties As of December 31, 2019 2020 RMB RMB An advance to a founder of the Group 664 - Amounts due from a founder of the Group - 13,050 Amounts due from affiliated companies - 1,320 664 14,370 Amounts due to an affiliated company - 11,814 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Instruments Measured or Disclosed at Fair Value on a Recurring Basis | The following table sets forth the financial instruments measured or disclosed at fair value on a recurring basis by level within the fair value hierarchy as of December 31, 2019. Fair value measurement at reporting date using Description Fair value as of December 31, 2019 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) RMB RMB RMB RMB Short-term investments (Note 5) 10,000 - 10,000 - |
Commitments And Contingencies (
Commitments And Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Operating Lease Commitments | Operating lease commitment contracted but not yet reflected in the consolidated financial statements as of December 31, 2020 were as follows: Total Less Than 1 Year 1 - 3 Years 3 - 5 Years RMB RMB RMB RMB Operating lease commitment 23,254 4,563 11,892 6,799 |
Principal Activities and Reor_3
Principal Activities and Reorganization - Additional Information (Details) - CNY (¥) | Jul. 17, 2020 | Dec. 31, 2020 | Sep. 30, 2018 |
Principal Activities And Reorganization [Line Items] | |||
Date of incorporation | Sep. 12, 2016 | ||
Technology Consulting and Service Agreement | |||
Principal Activities And Reorganization [Line Items] | |||
Term of agreement termination notice period | 30 days | ||
Effective Period of Agreement | 10 years | ||
Guangzhou Yatsen | Yatsen HK | |||
Principal Activities And Reorganization [Line Items] | |||
Percentage of equity interest acquired | 100.00% | ||
Aoyan | |||
Principal Activities And Reorganization [Line Items] | |||
Percentage of equity interest acquired | 100.00% | ||
Consideration paid for acquisition | ¥ 0 |
Principal Activities and Reor_4
Principal Activities and Reorganization - Details of Principal Subsidiaries and VIE (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Principal Activities And Reorganization [Line Items] | |
Date of incorporation | Sep. 12, 2016 |
Guangzhou Yatsen | PRC | |
Principal Activities And Reorganization [Line Items] | |
Date of incorporation | Jul. 29, 2015 |
Wholly owned subsidiaries, Percentage of beneficial ownership | 100.00% |
Wholly owned subsidiaries, Principal activities | Cosmetics Sales |
Guangzhou Yatsen Cosmetics Co., Ltd. | PRC | |
Principal Activities And Reorganization [Line Items] | |
Date of incorporation | Mar. 24, 2017 |
Wholly owned subsidiaries, Percentage of beneficial ownership | 100.00% |
Wholly owned subsidiaries, Principal activities | Cosmetics Sales |
Guangzhou Yiyan Cosmetics Co., Ltd. | PRC | |
Principal Activities And Reorganization [Line Items] | |
Date of incorporation | Apr. 15, 2019 |
Wholly owned subsidiaries, Percentage of beneficial ownership | 100.00% |
Wholly owned subsidiaries, Principal activities | Cosmetics Sales |
Aoyan (Shanghai) Cosmetics Trading Co., Ltd.(“Aoyan”) | PRC | |
Principal Activities And Reorganization [Line Items] | |
Date of incorporation | Jun. 4, 2019 |
Wholly owned subsidiaries, Percentage of beneficial ownership | 100.00% |
Wholly owned subsidiaries, Principal activities | Cosmetics Sales |
Huizhi Weimei (Guangzhou) Trading Co.,Ltd.(“HZ VIE”) | PRC | |
Principal Activities And Reorganization [Line Items] | |
Date of incorporation | Feb. 22, 2019 |
VIE, Percentage of beneficial ownership | 100.00% |
VIE, Principal activities | Cosmetics Sales |
Principal Activities and Reor_5
Principal Activities and Reorganization - Consolidated Financial Information of Consolidated VIEs (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2020USD ($) | |
Variable Interest Entity [Line Items] | |||||
Cash and cash equivalents | ¥ 5,727,029 | ¥ 676,579 | $ 877,706 | ||
Accounts receivable | 419,317 | 265,302 | 64,263 | ||
Inventories, net | 616,808 | 504,049 | 94,530 | ||
Prepayments and other current assets | 304,641 | 115,231 | 46,688 | ||
Total current assets | 7,088,528 | 1,571,825 | 1,086,364 | ||
Property and equipment, net | 285,297 | 109,410 | 43,724 | ||
Goodwill | 20,596 | 20,596 | 3,156 | ||
Intangible assets, net | 189,090 | 10,028 | |||
Deferred tax assets | 597 | 4,233 | 91 | ||
Other non-current assets | 152,058 | 30,879 | 23,304 | ||
Total non-current assets | 1,219,210 | 438,492 | 186,851 | ||
Total assets | 8,307,738 | 2,010,317 | 1,273,215 | ||
Accounts payable | 466,705 | 400,542 | 71,526 | ||
Advances from customers | 6,228 | 3,177 | 954 | ||
Accrued expenses and other liabilities | 411,944 | 191,065 | |||
Income tax payables | 18,686 | 74,644 | 2,864 | ||
Total current liabilities | 1,130,677 | 763,343 | 173,282 | ||
Deferred tax liabilities | 1,557 | 1,742 | 239 | ||
Total liabilities | 1,444,144 | 936,130 | $ 221,323 | ||
Net income (loss) | (2,688,415) | $ (412,017) | 75,359 | ¥ (40,124) | |
Net cash provided by operating activities | (983,368) | (150,707) | (6,179) | (96,207) | |
Net cash used in investing activities | (508,832) | (77,982) | (148,172) | (7,877) | |
Net cash used in financing activities | 6,680,869 | 1,023,888 | 795,231 | 123,678 | |
Net increase in cash and cash equivalents and restricted cash | 5,056,813 | $ 774,991 | 651,517 | ¥ 20,384 | |
Variable Interest Entity Primary Beneficiary | |||||
Variable Interest Entity [Line Items] | |||||
Cash and cash equivalents | 31,147 | 3,022 | |||
Accounts receivable | 7,331 | 9,492 | |||
Inventories, net | 1,050 | 14,683 | |||
Prepayments and other current assets | 15,973 | 11,772 | |||
Amounts due from non-VIE subsidiaries | 111 | 49,536 | |||
Total current assets | 55,612 | 88,505 | |||
Property and equipment, net | 16,020 | 2,036 | |||
Goodwill | 20,596 | ||||
Intangible assets, net | 289 | 6,997 | |||
Deferred tax assets | 133 | ||||
Other non-current assets | 457 | ||||
Total non-current assets | 16,766 | 29,762 | |||
Total assets | 72,378 | 118,267 | |||
Accounts payable | 6,892 | 19,461 | |||
Advances from customers | 6,156 | 3,155 | |||
Accrued expenses and other liabilities | 42,874 | 12,120 | |||
Income tax payables | 929 | 7,290 | |||
Amounts due to non-VIE subsidiaries | 50,591 | 60,711 | |||
Total current liabilities | 107,442 | 102,737 | |||
Deferred tax liabilities | 1,742 | ||||
Total liabilities | 107,442 | 104,479 | |||
Net revenues | 907,735 | 251,385 | |||
Net income (loss) | (176,187) | (15,066) | |||
Net cash provided by operating activities | 47,830 | 3,022 | |||
Net cash used in investing activities | (17,102) | ||||
Net cash used in financing activities | (2,603) | ||||
Net increase in cash and cash equivalents and restricted cash | ¥ 28,125 | ¥ 3,022 |
Significant Accounting Polici_4
Significant Accounting Policies - Additional Information (Details) | 12 Months Ended | ||||
Dec. 31, 2020CNY (¥)Agreement | Dec. 31, 2020USD ($)Agreement | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2020USD ($) | |
Significant Accounting Policies [Line Items] | |||||
Inventory provision | ¥ 20,948,000 | ||||
Noon buying rate | 6.5250 | 6.5250 | |||
Restricted cash | ¥ 6,363,000 | $ 975,000 | |||
Expected credit loss expense in general and administrative expense. | 2,643,000 | $ 405,000 | |||
Goodwill impairment provision | ¥ 0 | ¥ 0 | ¥ 0 | ||
Number of agreements | Agreement | 2 | 2 | |||
Sales allowances for sales returns, rebates, incentives and price protection | ¥ 6,605,000 | 5,591,000 | 1,661,000 | ||
Contract asset | 0 | 0 | |||
Accounts receivable | 419,317,000 | 265,302,000 | |||
Credit loss provision | 0 | 0 | |||
Advances from customers | 6,228,000 | 3,177,000 | $ 954,000 | ||
Revenue recognized from performance obligations satisfied | 0 | 0 | 0 | ||
Advertising and marketing promotion expenses | 2,215,074,000 | 879,632,000 | 256,097,000 | ||
Employee social security and welfare benefits | 41,719,000 | 21,495,000 | 2,993,000 | ||
Share-based compensation expenses | 232,431,000 | ||||
Interest and penalties associated with uncertain tax positions | 0 | 0 | 0 | ||
Mezzanine Equity | Minimum | |||||
Significant Accounting Policies [Line Items] | |||||
Preferred hares implied pre-money valuation amount | $ | $ 5,000,000,000 | ||||
Statutory Surplus Fund | |||||
Significant Accounting Policies [Line Items] | |||||
Profit appropriation to statutory surplus fund | 729,000 | 19,322,000 | |||
Other Reserve Funds | |||||
Significant Accounting Policies [Line Items] | |||||
Profit appropriation to statutory surplus fund | ¥ 0 | 0 | 0 | ||
ASU 2016-02 | |||||
Significant Accounting Policies [Line Items] | |||||
Change in accounting principle, accounting standards update, early adoption [true false] | true | true | |||
Change in accounting principle, accounting standards update, adoption date | Jan. 1, 2018 | Jan. 1, 2018 | |||
ASU 2016-13 | |||||
Significant Accounting Policies [Line Items] | |||||
Change in accounting principle, accounting standards update, adoption date | Jan. 1, 2020 | Jan. 1, 2020 | |||
Change in accounting principle, accounting standards update, adopted [true false] | true | true | |||
ASU 2018-15 | |||||
Significant Accounting Policies [Line Items] | |||||
Change in accounting principle, accounting standards update, adoption date | Jan. 1, 2020 | Jan. 1, 2020 | |||
Change in accounting principle, accounting standards update, adopted [true false] | true | true | |||
Change in accounting principle, accounting standards update, immaterial effect [true false] | true | true | |||
Accounts Receivable and Other Receivables | |||||
Significant Accounting Policies [Line Items] | |||||
Allowance accounts receivable and other receivable | 0 | ¥ 0 | |||
Settlement Liabilities | |||||
Significant Accounting Policies [Line Items] | |||||
Restricted cash | ¥ 5,715,000 | ¥ 0 |
Significant Accounting Polici_5
Significant Accounting Policies - Estimated Useful Lives of Property and Equipment (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Machinery | |
Property Plant And Equipment [Line Items] | |
Property and equipment, Estimated useful lives | 3 years |
Electronic Equipment | |
Property Plant And Equipment [Line Items] | |
Property and equipment, Estimated useful lives | 3 years |
Office Furniture and Equipment | |
Property Plant And Equipment [Line Items] | |
Property and equipment, Estimated useful lives | 3 years |
Vehicles | |
Property Plant And Equipment [Line Items] | |
Property and equipment, Estimated useful lives | 4 years |
Significant Accounting Polici_6
Significant Accounting Policies - Estimated Useful Lives of Intangible Assets (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Trademarks | Minimum | |
Finite Lived Intangible Assets [Line Items] | |
Intangible assets. Estimated useful lives | 9 years |
Trademarks | Maximum | |
Finite Lived Intangible Assets [Line Items] | |
Intangible assets. Estimated useful lives | 15 years |
Software | |
Finite Lived Intangible Assets [Line Items] | |
Intangible assets. Estimated useful lives | 5 years |
Concentration and Risks - Addit
Concentration and Risks - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2020CustomerSupplier | Dec. 31, 2019CustomerSupplier | Dec. 31, 2018CustomerSupplier | |
Customer Concentration Risk | Payment Channels | |||
Concentration Risk [Line Items] | |||
Number of customers accounted for more than 10% of accounts receivable | Customer | 1 | 1 | |
Customer Concentration Risk | Platform Distributor Customers | |||
Concentration Risk [Line Items] | |||
Number of customers accounted for more than 10% of accounts receivable | Customer | 2 | 2 | |
Supplier Concentration Risk | |||
Concentration Risk [Line Items] | |||
Number of suppliers accounted for more than 10% of accounts payable | Supplier | 3 | 2 | 3 |
Supplier Concentration Risk | Parent Company | |||
Concentration Risk [Line Items] | |||
Number of suppliers accounted for more than 10% of accounts payable | Supplier | 2 | ||
Number of suppliers accounted for more than 9% of accounts payable | Supplier | 3 | ||
Net Revenue | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Number of customers accounted for more than 10% of net revenue | Customer | 0 | 0 | 0 |
Accounts Receivable | Customer Concentration Risk | Payment Channels | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 89.00% | 89.00% | |
Accounts Receivable | Customer Concentration Risk | Platform Distributor Customers | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 76.00% | 76.00% | |
Accounts Payable | Supplier Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 55.00% | 50.00% | 57.00% |
Accounts Payable | Supplier Concentration Risk | Parent Company | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 52.00% | 50.00% |
Cash and Cash Equivalents and_3
Cash and Cash Equivalents and Restricted Cash - Summary of Cash and Cash Equivalents Balance (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) |
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | ¥ 5,727,029 | $ 877,706 | ¥ 676,579 | |
Total cash, cash equivalents and restricted cash | 5,733,392 | 676,579 | ||
CHINA | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | 265,401 | 265,401 | 97,713 | $ 97,713 |
Restricted cash | 6,363 | |||
UNITED STATES | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | 5,414,276 | 829,774 | ¥ 578,866 | $ 82,977 |
SGD | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | 126 | 26 | ||
EUR | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | ¥ 47,226 | $ 5,885 |
Short Term Investment - Schedul
Short Term Investment - Schedule of Short Term Investment (Details) ¥ in Thousands | 12 Months Ended |
Dec. 31, 2019CNY (¥) | |
Investments All Other Investments [Abstract] | |
Wealth management product | ¥ 10,000 |
Short Term Investment - Additio
Short Term Investment - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Investments All Other Investments [Abstract] | |
Period of fair value of short-term investment published by commercial bank | 7 days |
Accounts Receivable - Schedule
Accounts Receivable - Schedule of Account Receivable (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Receivables [Abstract] | |||
Accounts receivable | ¥ 419,317 | $ 64,263 | ¥ 265,302 |
Accounts Receivable - Additiona
Accounts Receivable - Additional Information (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Receivables [Abstract] | ||
Allowance for doubtful account and credit losses | ¥ 0 | ¥ 0 |
Inventories, Net - Schedule of
Inventories, Net - Schedule of Inventories (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Inventory Disclosure [Abstract] | |||
Raw materials and packing materials | ¥ 56,519 | ¥ 53,755 | |
Finished goods | 581,237 | 451,312 | |
Inventories | 637,756 | 505,067 | |
Less: inventory provision | (20,948) | (1,018) | |
Inventories, net | ¥ 616,808 | $ 94,530 | ¥ 504,049 |
Prepayments And Other Current_3
Prepayments And Other Current Assets - Summary of Prepayments and Other Current Assets (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Other Assets Unclassified [Abstract] | |||
Prepayments of promotion fees (a) | ¥ 133,575 | ¥ 35,051 | |
VAT recoverable (b) | 92,483 | 27,017 | |
Commission rebate due from an online platform (c) | 20,546 | ||
Prepayments for products procurement (d) | 6,742 | 13,908 | |
Deposits, prepaid rental and property management fees | 35,021 | 8,675 | |
Others | 36,820 | 10,034 | |
Prepayments and other current assets | ¥ 304,641 | $ 46,688 | ¥ 115,231 |
Investments - Summary of Forth
Investments - Summary of Forth the Group's Investments (Details) ¥ in Thousands | Dec. 31, 2020CNY (¥) |
Equity Method Investments And Joint Ventures [Abstract] | |
Equity method investments | ¥ 23,471 |
Equity investments without readily determinable fair values | 11,391 |
Equity method investments and equity securities amount | ¥ 34,862 |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule of Property and Equipment Net (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Property Plant And Equipment [Line Items] | |||
Property and equipment, gross | ¥ 364,638 | ¥ 122,193 | |
Less: accumulated depreciation | (79,341) | (12,783) | |
Property and equipment, net | 285,297 | $ 43,724 | 109,410 |
Leasehold Improvements | |||
Property Plant And Equipment [Line Items] | |||
Property and equipment, gross | 305,955 | 87,858 | |
Electronic Equipment | |||
Property Plant And Equipment [Line Items] | |||
Property and equipment, gross | 32,213 | 14,275 | |
Machinery | |||
Property Plant And Equipment [Line Items] | |||
Property and equipment, gross | 15,562 | 4,640 | |
Office Furniture and Equipment | |||
Property Plant And Equipment [Line Items] | |||
Property and equipment, gross | 3,818 | 3,071 | |
Vehicles | |||
Property Plant And Equipment [Line Items] | |||
Property and equipment, gross | 4,311 | 2,495 | |
Construction in Progress | |||
Property Plant And Equipment [Line Items] | |||
Property and equipment, gross | ¥ 2,779 | ¥ 9,854 |
Property and Equipment Net - Ad
Property and Equipment Net - Additional Information (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Property Plant And Equipment [Abstract] | ||||
Depreciation of property and equipment | ¥ 74,551,000 | $ 11,425 | ¥ 13,010,000 | ¥ 389,000 |
Impairment | ¥ 0 | ¥ 0 | ¥ 0 |
Intangible Assets, Net - Schedu
Intangible Assets, Net - Schedule of Intangible Assets (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Finite Lived Intangible Assets [Line Items] | ||
Total cost | ¥ 193,583 | ¥ 11,027 |
Less: accumulated amortization | (4,493) | (999) |
Intangible assets, net | 189,090 | 10,028 |
Trademarks | ||
Finite Lived Intangible Assets [Line Items] | ||
Total cost | 177,805 | 7,592 |
Software | ||
Finite Lived Intangible Assets [Line Items] | ||
Total cost | ¥ 15,778 | ¥ 3,435 |
Intangible Assets, Net - Sche_2
Intangible Assets, Net - Schedule of Intangible Assets (Parenthetical) (Details) - Seller - CNY (¥) ¥ in Thousands | 1 Months Ended | |
Oct. 31, 2020 | Dec. 31, 2020 | |
Finite Lived Intangible Assets [Line Items] | ||
Equity interest | 90.00% | |
Trademark, acquisition | ¥ 166,451 |
Intangible Assets, Net - Additi
Intangible Assets, Net - Additional Information (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||||
Amortization of intangible assets | ¥ 3,476 | $ 533 | ¥ 907 | ¥ 113 |
Weighted average amortization periods of intangible assets | 14 years 1 month 6 days | 14 years 1 month 6 days | 8 years 10 months 24 days |
Intangible Assets,Net - Summary
Intangible Assets,Net - Summary of Estimated Amortization Expenses (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Finite Lived Intangible Assets Future Amortization Expense Current And Five Succeeding Fiscal Years [Abstract] | ||
2021 | ¥ 14,464 | |
2022 | 14,040 | |
2023 | 13,976 | |
2024 | 13,612 | |
2025 and thereafter | 132,998 | |
Intangible assets, net | ¥ 189,090 | ¥ 10,028 |
Other Non-Current Assets - Sche
Other Non-Current Assets - Schedule of Other Non-Current Assets (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |||
Long-term rental deposits | ¥ 50,509 | ¥ 23,991 | |
Prepaid long-term celebrity endorsement fees | 3,996 | 5,687 | |
Prepaid consideration for an acquisition | 95,427 | ||
Others | 2,126 | 1,201 | |
Other assets, noncurrent | ¥ 152,058 | $ 23,304 | ¥ 30,879 |
Accrued Expenses and Other Li_3
Accrued Expenses and Other Liabilities - Schedule of Accrued Expenses and Other Liabilities (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Payables And Accruals [Abstract] | ||
Other taxes payable | ¥ 83,040 | ¥ 62,040 |
Accrued storage and transportation fees | 59,631 | 55,151 |
Accrued payroll related expenses | 70,412 | 35,045 |
Accrued advertising and marketing expenses | 77,948 | 15,690 |
Accrued leasehold improvement costs | 56,490 | 13,300 |
Consideration payable for a business combination | 3,196 | |
Refund obligation of sales return | 3,918 | 1,005 |
Others | 60,505 | 5,638 |
Accrued expenses and other liabilities | ¥ 411,944 | ¥ 191,065 |
Leases - Summary of Supplementa
Leases - Summary of Supplemental Information Related To Operating Leases (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Leases [Abstract] | |||
Operating lease ROU assets | ¥ 536,710 | $ 82,254 | ¥ 263,346 |
Operating lease liabilities-non-current | 311,910 | 47,802 | 171,045 |
Operating lease liabilities-current | 215,300 | $ 32,996 | 93,915 |
Total operating lease liabilities | ¥ 527,210 | ¥ 264,960 | |
Weighted average remaining lease term | 2 years 6 months 25 days | 2 years 6 months 25 days | 2 years 9 months 18 days |
Weighted average discount rate | 5.41% | 5.41% | 5.74% |
Leases - Summary of Lease Cost
Leases - Summary of Lease Cost Recognized and Supplemental Cashflow Information Related to Operating Lease (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Leases [Abstract] | |||
Operating lease cost | ¥ 179,515 | ¥ 53,752 | ¥ 3,615 |
Short-term lease cost | 4,249 | 2,291 | 576 |
Variable cost | 6,396 | 1,557 | |
Cash paid for operating leases | 168,943 | 48,281 | 3,412 |
Right-of-use assets obtained in exchange for operating lease liabilities | ¥ 448,148 | ¥ 295,454 | ¥ 22,705 |
Leases - Summary of Maturity of
Leases - Summary of Maturity of Operating Lease Liabilities under Non-Cancelable Operating Leases (Detail) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
2021 | ¥ 236,009 | |
2022 | 205,509 | |
2023 | 103,456 | |
2024 | 24,380 | |
2025 | 4,111 | |
Total lease payment | 573,465 | |
Less: interest | (46,255) | |
Present value of operating lease liability | ¥ 527,210 | ¥ 264,960 |
Leases - Additional Information
Leases - Additional Information (Details) ¥ in Thousands | 12 Months Ended |
Dec. 31, 2020CNY (¥) | |
Leases [Abstract] | |
Additional operating leases commitment for offline stores that have not yet commenced | ¥ 23,254 |
Revenues - Summary of Revenue B
Revenues - Summary of Revenue By Channel for Respective Periods (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Disaggregation Of Revenue [Line Items] | ||||
Total net revenues | ¥ 5,233,170 | $ 802,018 | ¥ 3,031,167 | ¥ 635,316 |
Sales to End Customers Through Platforms | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net revenues | 4,023,144 | 2,570,107 | 578,486 | |
Sales to Platform Distributor Customers | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net revenues | 678,873 | 359,629 | ¥ 56,830 | |
Others Channels | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net revenues | ¥ 531,153 | ¥ 101,431 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - CNY (¥) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Line Items] | ||||
Tax rate on taxable income | 16.50% | |||
Uniform income tax rate | 25.00% | 25.00% | 25.00% | |
Withholding tax percentage on dividend distributed by foreign investment enterprises | 10.00% | |||
Undistributed earnings and reserves available for distribution | ¥ 46,230,000 | ¥ 162,135,000 | ||
Unrecognized uncertain tax positions | ¥ 0 | ¥ 0 | ||
Hong Kong Tax Rate for Profits at 2 Million | ||||
Income Tax Disclosure [Line Items] | ||||
Tax rate on taxable income | 8.25% | |||
Hong Kong Tax Rate for Profits over 2 Million | ||||
Income Tax Disclosure [Line Items] | ||||
Tax rate on taxable income | 16.50% | |||
EIT Law | ||||
Income Tax Disclosure [Line Items] | ||||
Percentage of additional tax deduction for research and development activities | 75.00% | 50.00% | ||
China and Hong Kong Special Administrative Region | ||||
Income Tax Disclosure [Line Items] | ||||
Minimum required investment percentage to consider 5% withholding tax rate | 25.00% | |||
China and Hong Kong Special Administrative Region | Maximum | ||||
Income Tax Disclosure [Line Items] | ||||
Withholding tax percentage on dividend distributed by foreign investment enterprises | 5.00% |
Income Taxes - Summary of Compo
Income Taxes - Summary of Components of Current and Deferred Income Taxes (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Income Tax Disclosure [Abstract] | ||||
Income (loss) before income tax expense | ¥ (2,681,445) | $ (410,949) | ¥ 147,335 | ¥ (36,114) |
Current tax expense | 3,519 | 75,671 | 1,718 | |
Deferred income tax expenses (benefits) | 3,451 | 529 | (3,695) | 2,292 |
Total income tax expense | ¥ 6,970 | $ 1,068 | ¥ 71,976 | ¥ 4,010 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation Permanent Differences Rate (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
PRC statutory income tax rate | 25.00% | 25.00% | 25.00% |
Permanent differences | (17.00%) | 15.00% | (32.00%) |
Tax effect of different tax rate of different jurisdictions | 0.00% | (1.00%) | (1.00%) |
Tax effect of Super Deduction and others | (0.00%) | (2.00%) | (0.00%) |
Changes in valuation allowance | (8.00%) | 12.00% | (3.00%) |
Effective tax rates | 0.00% | 49.00% | (11.00%) |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Income Tax Disclosure [Abstract] | ||
Net operating loss carry forwards | ¥ 222,325 | ¥ 17,068 |
Inventory valuation allowance | 5,237 | 368 |
Accrued expenses and others | 11,000 | 5,474 |
Total deferred tax assets | 238,562 | 22,910 |
Less: valuation allowance | (237,965) | (18,677) |
Deferred tax assets, net | ¥ 597 | ¥ 4,233 |
Income Taxes - Movement of Valu
Income Taxes - Movement of Valuation Allowance (Details) - Valuation Allowance, Deferred Tax Asset - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Valuation And Qualifying Accounts Disclosure [Line Items] | ||
Balance at beginning of the year | ¥ 18,677 | ¥ 1,093 |
Additions | 219,288 | 17,584 |
Balance at end of the year | ¥ 237,965 | ¥ 18,677 |
Income Taxes - Schedule of De_2
Income Taxes - Schedule of Deferred Tax Liabilities (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Income Tax Disclosure [Abstract] | ||
Related to acquired intangible assets | ¥ 1,557 | ¥ 1,742 |
Ordinary Shares - Additional In
Ordinary Shares - Additional Information (Details) $ / shares in Units, ¥ in Thousands | Nov. 19, 2020CNY (¥)shares | Nov. 19, 2020USD ($)shares | Sep. 30, 2020shares | Apr. 30, 2020shares | Jul. 31, 2019shares | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019$ / sharesshares | Dec. 31, 2018shares | Feb. 25, 2019$ / sharesshares | Sep. 30, 2018$ / sharesshares | Sep. 05, 2018$ / sharesshares | Dec. 31, 2017shares | Sep. 30, 2016USD ($)$ / sharesshares |
Class Of Stock [Line Items] | ||||||||||||||
Ordinary shares authorized share capital | $ | $ 50,000 | |||||||||||||
Common stock, shares authorized | 4,044,840,121 | 10,000,000,000 | 4,044,840,121 | 4,251,747,715 | 4,278,473,823 | 4,363,824,941 | 5,000,000,000 | |||||||
Common stock, par value | $ / shares | $ 0.00001 | $ 0.00001 | $ 0.00001 | $ 0.00001 | ||||||||||
Ordinary shares repurchased | 7,713,574 | 62,388,247 | 62,388,247 | 17,197,032 | 14,503,820 | |||||||||
Net proceeds from issuance of ordinary shares | ¥ 4,380,213 | $ 671,297,000 | ||||||||||||
American Depositary Shares | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Net proceeds from issuance of ordinary shares | ¥ | ¥ 4,350,000 | |||||||||||||
American Depositary Shares | IPO | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Issuance of ordinary shares upon initial public offering, shares | 67,562,500 | 67,562,500 | ||||||||||||
Net proceeds from issuance of ordinary shares | $ | $ 664,700,000 | |||||||||||||
Founders | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Ordinary shares redesignated into preferred shares | 6,443,998 | 6,443,998 | ||||||||||||
Series Seed Preferred Shares | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Preferred stock, shares authorized | 191,378,675 | 200,000,000 | ||||||||||||
Preferred stock, par value | $ / shares | $ 0.00001 | |||||||||||||
Temporary equity, shares issued | 200,000,000 | |||||||||||||
Temporary equity, increase in authorized shares | 68,832,245 | |||||||||||||
Temporary equity, par or stated value per share | $ / shares | $ 0.00001 | |||||||||||||
Series Seed Preferred Shares | Investors | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Temporary equity, shares issued | 62,388,247 | |||||||||||||
Series A-1 Preferred Shares | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Preferred stock, shares authorized | 66,667,000 | |||||||||||||
Preferred stock, par value | $ / shares | $ 0.00001 | |||||||||||||
Temporary equity, shares issued | 66,667,000 | |||||||||||||
Series A-2 Preferred Shares | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Preferred stock, shares authorized | 131,987,050 | 183,715,000 | ||||||||||||
Preferred stock, par value | $ / shares | $ 0.00001 | |||||||||||||
Temporary equity, shares issued | 145,038,000 | |||||||||||||
Series B-1 Preferred Shares | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Preferred stock, shares authorized | 14,503,820 | |||||||||||||
Preferred stock, par value | $ / shares | $ 0.00001 | |||||||||||||
Temporary equity, shares issued | 14,503,820 | |||||||||||||
Series B-2 Preferred Shares | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Preferred stock, shares authorized | 171,289,239 | |||||||||||||
Preferred stock, par value | $ / shares | $ 0.00001 | |||||||||||||
Temporary equity, shares issued | 171,289,239 | |||||||||||||
Series B-3 Preferred Shares | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Preferred stock, shares authorized | 85,351,118 | |||||||||||||
Preferred stock, par value | $ / shares | $ 0.00001 | |||||||||||||
Temporary equity, shares issued | 85,351,118 | 85,351,118 | ||||||||||||
Temporary equity, par or stated value per share | $ / shares | $ 0.00001 | $ 0.00001 | ||||||||||||
Series B-3+ Preferred Shares | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Preferred stock, shares authorized | 87,075,383 | |||||||||||||
Preferred stock, par value | $ / shares | $ 0.00001 | |||||||||||||
Preferred stock, shares issued | 87,075,383 | |||||||||||||
Temporary equity, shares issued | 87,075,383 | |||||||||||||
Temporary equity, par or stated value per share | $ / shares | $ 0.00001 | $ 0.00001 | ||||||||||||
Series C Preferred Shares | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Temporary equity, shares issued | 206,907,594 | 206,907,594 | ||||||||||||
Temporary equity, increase in authorized shares | 66,432,971 | |||||||||||||
Temporary equity, par or stated value per share | $ / shares | $ 0.00001 | $ 0.00001 | ||||||||||||
Issuance of ordinary shares upon initial public offering, shares | 39,859,783 | 26,573,188 | ||||||||||||
Series C Preferred Shares | Investors | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Temporary equity, shares issued | 7,713,574 | |||||||||||||
Class A Ordinary Shares | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Common stock, shares authorized | 3,130,264,924 | 6,000,000,000 | 3,130,264,924 | |||||||||||
Ordinary shares, voting rights | one vote per share | one vote per share | ||||||||||||
Common stock, shares issued | 1,736,321,157 | |||||||||||||
Ordinary shares, decrease in authorized shares | 392,306,730 | |||||||||||||
Class A Ordinary Shares | American Depositary Shares | IPO | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Issuance of ordinary shares upon initial public offering, shares | 270,250,000 | 270,250,000 | ||||||||||||
Class A Ordinary Shares | Share Incentive Plan Trust | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Common stock, shares issued | 149,363,572 | |||||||||||||
Class A Ordinary Shares | Options | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Issuances of shares due to exercise of share options | 15,518,385 | 15,518,385 | ||||||||||||
Class B Ordinary Shares | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Common stock, shares authorized | 914,575,197 | 960,852,606 | 914,575,197 | |||||||||||
Common stock, par value | $ / shares | $ 0.00001 | |||||||||||||
Ordinary shares, voting rights | ten votes per share | ten votes per share | ||||||||||||
Common stock, shares issued | 960,852,606 | 914,575,197 | ||||||||||||
Ordinary shares repurchased | 62,388,247 | 62,388,247 | ||||||||||||
Ordinary shares, increase in authorized shares | 46,277,409 | |||||||||||||
Class B Ordinary Shares | Share Incentive Plan Trust | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Common stock, shares issued | 21,356,415 | |||||||||||||
Class B Ordinary Shares | Founders | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Common stock, shares issued | 157,846,049 | 93,753,239 | ||||||||||||
Series D Preferred Shares | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Temporary equity, shares issued | 66,432,971 | |||||||||||||
Temporary equity, increase in authorized shares | 66,432,971 | |||||||||||||
Temporary equity, par or stated value per share | $ / shares | $ 0.00001 | |||||||||||||
Series E Preferred Shares | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Temporary equity, shares issued | 144,331,134 | |||||||||||||
Temporary equity, increase in authorized shares | 144,331,134 | |||||||||||||
Temporary equity, par or stated value per share | $ / shares | $ 0.00001 |
Convertible Redeemable Prefer_3
Convertible Redeemable Preferred Shares ("Preferred Shares") - Summary of Issuances of Convertible Redeemable Preferred Shares (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||||||
Dec. 31, 2020CNY (¥)shares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019CNY (¥)shares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018CNY (¥)shares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017CNY (¥)shares | Dec. 31, 2017USD ($)$ / sharesshares | Jul. 31, 2019shares | |
Series Seed | |||||||||
Temporary Equity [Line Items] | |||||||||
Issuance Date | Aug. 1, 2017 | Aug. 1, 2017 | |||||||
Temporary equity, shares issued | shares | 200,000,000 | 200,000,000 | |||||||
Issue Price per Share | $ / shares | $ 0.0050 | ||||||||
Net Proceeds from Issuance | ¥ 6,715 | $ 1,000 | |||||||
Series Seed | |||||||||
Temporary Equity [Line Items] | |||||||||
Issuance Date | Mar. 25, 2020 | Mar. 25, 2020 | |||||||
Temporary equity, shares issued | shares | 53,699,985 | 53,699,985 | |||||||
Issue Price per Share | $ / shares | $ 1.0615 | ||||||||
Net Proceeds from Issuance | ¥ 403,230 | $ 57,000 | |||||||
Series Seed | |||||||||
Temporary Equity [Line Items] | |||||||||
Issuance Date | Apr. 27, 2020 | Apr. 27, 2020 | |||||||
Temporary equity, shares issued | shares | 45,315,250 | 45,315,250 | |||||||
Issue Price per Share | $ / shares | $ 1.0615 | ||||||||
Net Proceeds from Issuance | ¥ 340,082 | $ 48,100 | |||||||
Series Seed | |||||||||
Temporary Equity [Line Items] | |||||||||
Issuance Date | Apr. 27, 2020 | Apr. 27, 2020 | |||||||
Temporary equity, shares issued | shares | 6,443,998 | 6,443,998 | |||||||
Issue Price per Share | $ / shares | $ 0.00001 | ||||||||
Series Seed | |||||||||
Temporary Equity [Line Items] | |||||||||
Issuance Date | Jul. 29, 2020 | Jul. 29, 2020 | |||||||
Temporary equity, shares issued | shares | 21,479,994 | 21,479,994 | |||||||
Issue Price per Share | $ / shares | $ 1.0615 | ||||||||
Net Proceeds from Issuance | ¥ 159,530 | $ 22,800 | |||||||
Series Seed | |||||||||
Temporary Equity [Line Items] | |||||||||
Issuance Date | Sep. 11, 2020 | Sep. 11, 2020 | |||||||
Temporary equity, shares issued | shares | 31,651,271 | 31,651,271 | |||||||
Issue Price per Share | $ / shares | $ 1.5009 | ||||||||
Net Proceeds from Issuance | ¥ 324,882 | $ 47,505 | |||||||
Series A-1 Preferred Shares | |||||||||
Temporary Equity [Line Items] | |||||||||
Issuance Date | Oct. 9, 2017 | Oct. 9, 2017 | |||||||
Temporary equity, shares issued | shares | 66,667,000 | 66,667,000 | |||||||
Issue Price per Share | $ / shares | $ 0.0150 | ||||||||
Net Proceeds from Issuance | ¥ 6,649 | $ 1,000 | |||||||
Series A-2 Preferred Shares | |||||||||
Temporary Equity [Line Items] | |||||||||
Issuance Date | Oct. 9, 2017 | Oct. 9, 2017 | |||||||
Temporary equity, shares issued | shares | 145,038,000 | 145,038,000 | |||||||
Issue Price per Share | $ / shares | $ 0.0207 | ||||||||
Net Proceeds from Issuance | ¥ 20,000 | $ 3,008 | |||||||
Series A-2 | |||||||||
Temporary Equity [Line Items] | |||||||||
Issuance Date | Oct. 9, 2017 | Oct. 9, 2017 | |||||||
Temporary equity, shares issued | shares | 38,677,000 | 38,677,000 | |||||||
Issue Price per Share | $ / shares | $ 0.0207 | ||||||||
Net Proceeds from Issuance | ¥ 5,333 | $ 802 | |||||||
Series A-2 | |||||||||
Temporary Equity [Line Items] | |||||||||
Issuance Date | Mar. 25, 2020 | Mar. 25, 2020 | |||||||
Temporary equity, shares issued | shares | 15,035,996 | 15,035,996 | |||||||
Issue Price per Share | $ / shares | $ 1.0615 | ||||||||
Net Proceeds from Issuance | ¥ 112,904 | $ 15,960 | |||||||
Series A-2 | |||||||||
Temporary Equity [Line Items] | |||||||||
Issuance Date | Apr. 27, 2020 | Apr. 27, 2020 | |||||||
Temporary equity, shares issued | shares | 27,923,992 | 27,923,992 | |||||||
Issue Price per Share | $ / shares | $ 1.1173 | ||||||||
Net Proceeds from Issuance | ¥ 220,593 | $ 31,200 | |||||||
Series B-1 Preferred Shares | |||||||||
Temporary Equity [Line Items] | |||||||||
Issuance Date | Sep. 5, 2018 | Sep. 5, 2018 | |||||||
Temporary equity, shares issued | shares | 14,503,820 | 14,503,820 | |||||||
Issue Price per Share | $ / shares | $ 0.0622 | ||||||||
Net Proceeds from Issuance | ¥ 6,158 | $ 902 | |||||||
Series B-2 Preferred Shares | |||||||||
Temporary Equity [Line Items] | |||||||||
Issuance Date | Sep. 5, 2018 | Sep. 5, 2018 | |||||||
Temporary equity, shares issued | shares | 171,289,239 | 171,289,239 | |||||||
Issue Price per Share | $ / shares | $ 0.0655 | ||||||||
Net Proceeds from Issuance | ¥ 76,594 | $ 11,220 | |||||||
Series B-3 Preferred Shares | |||||||||
Temporary Equity [Line Items] | |||||||||
Issuance Date | Oct. 22, 2018 | Oct. 22, 2018 | |||||||
Temporary equity, shares issued | shares | 85,351,118 | 85,351,118 | 85,351,118 | 85,351,118 | |||||
Issue Price per Share | $ / shares | $ 0.0820 | ||||||||
Net Proceeds from Issuance | ¥ 48,465 | $ 7,000 | |||||||
Series B-3+ Preferred Shares | |||||||||
Temporary Equity [Line Items] | |||||||||
Issuance Date | Feb. 25, 2019 | Feb. 25, 2019 | |||||||
Temporary equity, shares issued | shares | 87,075,383 | 87,075,383 | |||||||
Issue Price per Share | $ / shares | $ 0.1740 | ||||||||
Net Proceeds from Issuance | ¥ 101,704 | $ 15,150 | |||||||
Series C Preferred Shares | |||||||||
Temporary Equity [Line Items] | |||||||||
Issuance Date | Jul. 26, 2019 | Jul. 26, 2019 | |||||||
Temporary equity, shares issued | shares | 206,907,594 | 206,907,594 | 206,907,594 | ||||||
Issue Price per Share | $ / shares | $ 0.5644 | ||||||||
Net Proceeds from Issuance | ¥ 789,872 | $ 114,814 | |||||||
Series C | |||||||||
Temporary Equity [Line Items] | |||||||||
Issuance Date | Apr. 27, 2020 | Apr. 27, 2020 | |||||||
Temporary equity, shares issued | shares | 26,573,188 | 26,573,188 | |||||||
Issue Price per Share | $ / shares | $ 0.5644 | ||||||||
Net Proceeds from Issuance | ¥ 105,911 | $ 14,999 | |||||||
Series C | |||||||||
Temporary Equity [Line Items] | |||||||||
Issuance Date | Sep. 11, 2020 | Sep. 11, 2020 | |||||||
Temporary equity, shares issued | shares | 39,859,783 | 39,859,783 | |||||||
Issue Price per Share | $ / shares | $ 0.5644 | ||||||||
Net Proceeds from Issuance | ¥ 153,866 | $ 22,499 | |||||||
Series D Preferred Shares | |||||||||
Temporary Equity [Line Items] | |||||||||
Issuance Date | Mar. 25, 2020 | Mar. 25, 2020 | |||||||
Temporary equity, shares issued | shares | 66,432,971 | 66,432,971 | |||||||
Issue Price per Share | $ / shares | $ 1.1173 | ||||||||
Net Proceeds from Issuance | ¥ 508,411 | $ 71,868 | |||||||
Series E Preferred Shares | |||||||||
Temporary Equity [Line Items] | |||||||||
Issuance Date | Sep. 11, 2020 | Sep. 11, 2020 | |||||||
Temporary equity, shares issued | shares | 144,331,134 | 144,331,134 | |||||||
Issue Price per Share | $ / shares | $ 1.5799 | ||||||||
Net Proceeds from Issuance | ¥ 1,543,323 | $ 225,668 |
Convertible Redeemable Prefer_4
Convertible Redeemable Preferred Shares ("Preferred Shares") - Additional Information (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Apr. 30, 2020CNY (¥)shares | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2020USD ($)shares | Dec. 31, 2019CNY (¥)shares | Dec. 31, 2018CNY (¥)shares | Nov. 19, 2020CNY (¥) | Jul. 31, 2019shares | |
Temporary Equity [Line Items] | |||||||
Simple interest rate on preferred shares annually | 10.00% | 10.00% | 10.00% | ||||
Dividends on Preferred and Ordinary Shares declared | ¥ | ¥ 0 | ||||||
Liquidation preference as percentage of issuance price | 100.00% | 100.00% | |||||
Accretion of Preferred Shares | ¥ | ¥ 242,209,000 | ¥ 59,200,000 | ¥ 3,465,000 | ||||
Conversion of preferred shares to ordinary shares | 1,301,189,200 | 1,301,189,200 | |||||
Deemed dividend | ¥ | ¥ 1,054,220,000 | ¥ 61,239,000 | ¥ 3,521,000 | ||||
Number of shares repurchased | 132,718,241 | 132,718,241 | 60,349,275 | ||||
Book value of repurchased shares | ¥ | ¥ 14,379,000 | ¥ 8,676,000 | |||||
Ordinary shares re-designated into Preferred Shares | 6,443,998 | 472,303,564 | 472,303,564 | 293,982,977 | 271,144,177 | ||
Fair value of newly issued Preferred Shares | ¥ | ¥ 35,142,000 | ||||||
Share-based compensation | 1,852,000 | ¥ 1,900,588,000 | $ 291,278 | ¥ 74,995,000 | ¥ 14,031,000 | ||
Ordinary Shares | |||||||
Temporary Equity [Line Items] | |||||||
Conversion of preferred shares to ordinary shares | 1,301,189,200 | 1,301,189,200 | |||||
Fair value of Ordinary Share repurchased | ¥ | ¥ 33,290,000 | ||||||
Junior Preferred Shares | |||||||
Temporary Equity [Line Items] | |||||||
Accretion of Preferred Shares | ¥ | ¥ 75,620,000 | ¥ 2,181,000 | ¥ 4,000 | ||||
Temporary equity, shares issued | 390,032,725 | ||||||
Number of shares repurchased | 132,718,241 | 132,718,241 | 60,349,275 | ||||
Book value of repurchased shares | ¥ | ¥ 14,379,000 | ¥ 8,676,000 | |||||
Total consideration of repurchased shares | ¥ | ¥ 1,068,599,000 | 69,915,000 | |||||
Number of shares issued | 132,718,241 | 132,718,241 | |||||
Total consideration for shares issued | ¥ | ¥ 1,068,599,000 | ||||||
Ordinary shares re-designated into Preferred Shares | 195,106,488 | 195,106,488 | |||||
Series B-1 Preferred Shares | |||||||
Temporary Equity [Line Items] | |||||||
Interest rate on preferred shares compounded annually | 10.00% | 10.00% | |||||
Temporary equity, shares issued | 14,503,820 | ||||||
Series B-2 Preferred Shares | |||||||
Temporary Equity [Line Items] | |||||||
Interest rate on preferred shares compounded annually | 10.00% | 10.00% | |||||
Temporary equity, shares issued | 171,289,239 | ||||||
Series B-3 Preferred Shares | |||||||
Temporary Equity [Line Items] | |||||||
Interest rate on preferred shares compounded annually | 10.00% | 10.00% | |||||
Accretion of Preferred Shares | ¥ | ¥ 4,810,000 | ¥ 4,920,000 | ¥ 894,000 | ||||
Temporary equity, shares issued | 85,351,118 | 85,351,118 | |||||
Ordinary shares re-designated into Preferred Shares | 85,351,118 | ||||||
Series B-3+ Preferred Shares | |||||||
Temporary Equity [Line Items] | |||||||
Interest rate on preferred shares compounded annually | 10.00% | 10.00% | |||||
Accretion of Preferred Shares | ¥ | ¥ 10,072,000 | ¥ 8,796,000 | |||||
Temporary equity, shares issued | 87,075,383 | ||||||
Number of shares issued | 60,349,275 | ||||||
Total consideration for shares issued | ¥ | ¥ 69,915,000 | ||||||
Ordinary shares re-designated into Preferred Shares | 87,075,383 | ||||||
Series C Preferred Shares | |||||||
Temporary Equity [Line Items] | |||||||
Simple interest rate on preferred shares annually | 10.00% | 10.00% | |||||
Accretion of Preferred Shares | ¥ | ¥ 76,015,000 | ¥ 34,678,000 | |||||
Temporary equity, shares issued | 206,907,594 | 206,907,594 | |||||
Ordinary shares re-designated into Preferred Shares | 66,432,971 | 66,432,971 | 206,907,594 | ||||
Series D Preferred Shares | |||||||
Temporary Equity [Line Items] | |||||||
Simple interest rate on preferred shares annually | 10.00% | 10.00% | |||||
Accretion of Preferred Shares | ¥ | ¥ 36,442,000 | ||||||
Temporary equity, shares issued | 66,432,971 | 66,432,971 | |||||
Ordinary shares re-designated into Preferred Shares | 66,432,971 | 66,432,971 | |||||
Series E Preferred Shares | |||||||
Temporary Equity [Line Items] | |||||||
Simple interest rate on preferred shares annually | 10.00% | 10.00% | |||||
Accretion of Preferred Shares | ¥ | ¥ 30,819,000 | ||||||
Temporary equity, shares issued | 144,331,134 | 144,331,134 | |||||
Ordinary shares re-designated into Preferred Shares | 144,331,134 | 144,331,134 | |||||
Series Seed Ordinary Shares | |||||||
Temporary Equity [Line Items] | |||||||
Temporary equity, shares issued | 200,000 | 200,000 | |||||
Series A-1 Ordinary Shares | |||||||
Temporary Equity [Line Items] | |||||||
Temporary equity, shares issued | 66,667 | 66,667 |
Convertible Redeemable Prefer_5
Convertible Redeemable Preferred Shares ("Preferred Shares") - Preferred Shares Activities (Details) - CNY (¥) ¥ in Thousands | 1 Months Ended | 12 Months Ended | ||
Apr. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Temporary Equity [Line Items] | ||||
Beginning Balance | ¥ 1,129,987 | ¥ 187,887 | ¥ 46,698 | |
Beginning Balance, Shares | 955,159,879 | 721,526,177 | 450,382,000 | |
Repurchase of preferred shares | ¥ (14,379) | ¥ (8,676) | ||
Repurchase of preferred shares, Shares | (132,718,241) | (60,349,275) | ||
Issuance of preferred shares, net of issuance costs | ¥ 4,176,359 | ¥ 891,576 | ¥ 131,217 | |
Issue of preferred shares, net of issuance costs, shares | 6,443,998 | 472,303,564 | 293,982,977 | 271,144,177 |
Redesignation of founder’s ordinary shares to preferred shares | ¥ 35,142 | |||
Redesignation of ordinary shares to temporary shares | 6,443,998 | |||
Accretion on preferred shares to redemption value | ¥ 242,209 | ¥ 59,200 | ¥ 3,465 | |
Modification of preferred shares | 3,521 | |||
Derecognition of a forward liability | 2,986 | |||
Redeemable convertible preferred shares converted in to Class A ordinary shares upon the completion of the IPO | ¥ (5,569,318) | |||
Redeemable convertible preferred shares converted into Class A ordinary shares upon the completion of the IPO, Shares | (1,301,189,200) | |||
Ending Balance | ¥ 0 | ¥ 1,129,987 | ¥ 187,887 | |
Ending Balance, Shares | 0 | 955,159,879 | 721,526,177 | |
Junior Preferred Shares | ||||
Temporary Equity [Line Items] | ||||
Beginning Balance | ¥ 46,714 | ¥ 53,209 | ¥ 46,698 | |
Beginning Balance, Shares | 390,032,725 | 450,382,000 | 450,382,000 | |
Repurchase of preferred shares | ¥ (14,379) | ¥ (8,676) | ||
Repurchase of preferred shares, Shares | (132,718,241) | (60,349,275) | ||
Issuance of preferred shares, net of issuance costs | ¥ 1,561,221 | |||
Issue of preferred shares, net of issuance costs, shares | 195,106,488 | |||
Redesignation of founder’s ordinary shares to preferred shares | ¥ 35,142 | |||
Redesignation of ordinary shares to temporary shares | 6,443,998 | |||
Accretion on preferred shares to redemption value | ¥ 75,620 | ¥ 2,181 | ¥ 4 | |
Modification of preferred shares | 3,521 | |||
Derecognition of a forward liability | 2,986 | |||
Redeemable convertible preferred shares converted in to Class A ordinary shares upon the completion of the IPO | ¥ (1,704,318) | |||
Redeemable convertible preferred shares converted into Class A ordinary shares upon the completion of the IPO, Shares | (458,864,970) | |||
Ending Balance | ¥ 0 | ¥ 46,714 | ¥ 53,209 | |
Ending Balance, Shares | 0 | 390,032,725 | 450,382,000 | |
Series B-1 and B-2 Preferred Shares | ||||
Temporary Equity [Line Items] | ||||
Beginning Balance | ¥ 93,944 | ¥ 85,319 | ||
Beginning Balance, Shares | 185,793,059 | 185,793,059 | ||
Issuance of preferred shares, net of issuance costs | ¥ 82,752 | |||
Issue of preferred shares, net of issuance costs, shares | 185,793,059 | |||
Accretion on preferred shares to redemption value | ¥ 8,431 | ¥ 8,625 | ¥ 2,567 | |
Redeemable convertible preferred shares converted in to Class A ordinary shares upon the completion of the IPO | ¥ (102,375) | |||
Redeemable convertible preferred shares converted into Class A ordinary shares upon the completion of the IPO, Shares | (185,793,059) | |||
Ending Balance | ¥ 0 | ¥ 93,944 | ¥ 85,319 | |
Ending Balance, Shares | 0 | 185,793,059 | 185,793,059 | |
Series B-3 Preferred Shares | ||||
Temporary Equity [Line Items] | ||||
Beginning Balance | ¥ 54,279 | ¥ 49,359 | ||
Beginning Balance, Shares | 85,351,118 | 85,351,118 | ||
Issuance of preferred shares, net of issuance costs | ¥ 48,465 | |||
Issue of preferred shares, net of issuance costs, shares | 85,351,118 | |||
Accretion on preferred shares to redemption value | ¥ 4,810 | ¥ 4,920 | ¥ 894 | |
Redeemable convertible preferred shares converted in to Class A ordinary shares upon the completion of the IPO | ¥ (59,089) | |||
Redeemable convertible preferred shares converted into Class A ordinary shares upon the completion of the IPO, Shares | (85,351,118) | |||
Ending Balance | ¥ 0 | ¥ 54,279 | ¥ 49,359 | |
Ending Balance, Shares | 0 | 85,351,118 | 85,351,118 | |
Series B-3+ Preferred Shares | ||||
Temporary Equity [Line Items] | ||||
Beginning Balance | ¥ 110,500 | |||
Beginning Balance, Shares | 87,075,383 | |||
Issuance of preferred shares, net of issuance costs | ¥ 101,704 | |||
Issue of preferred shares, net of issuance costs, shares | 87,075,383 | |||
Accretion on preferred shares to redemption value | ¥ 10,072 | ¥ 8,796 | ||
Redeemable convertible preferred shares converted in to Class A ordinary shares upon the completion of the IPO | ¥ (120,572) | |||
Redeemable convertible preferred shares converted into Class A ordinary shares upon the completion of the IPO, Shares | (87,075,383) | |||
Ending Balance | ¥ 0 | ¥ 110,500 | ||
Ending Balance, Shares | 0 | 87,075,383 | ||
Series C Preferred Shares | ||||
Temporary Equity [Line Items] | ||||
Beginning Balance | ¥ 824,550 | |||
Beginning Balance, Shares | 206,907,594 | |||
Issuance of preferred shares, net of issuance costs | ¥ 563,404 | ¥ 789,872 | ||
Issue of preferred shares, net of issuance costs, shares | 66,432,971 | 206,907,594 | ||
Accretion on preferred shares to redemption value | ¥ 76,015 | ¥ 34,678 | ||
Redeemable convertible preferred shares converted in to Class A ordinary shares upon the completion of the IPO | ¥ (1,463,969) | |||
Redeemable convertible preferred shares converted into Class A ordinary shares upon the completion of the IPO, Shares | (273,340,565) | |||
Ending Balance | ¥ 0 | ¥ 824,550 | ||
Ending Balance, Shares | 0 | 206,907,594 | ||
Series D Preferred Shares | ||||
Temporary Equity [Line Items] | ||||
Issuance of preferred shares, net of issuance costs | ¥ 508,411 | |||
Issue of preferred shares, net of issuance costs, shares | 66,432,971 | |||
Accretion on preferred shares to redemption value | ¥ 36,442 | |||
Redeemable convertible preferred shares converted in to Class A ordinary shares upon the completion of the IPO | ¥ (544,853) | |||
Redeemable convertible preferred shares converted into Class A ordinary shares upon the completion of the IPO, Shares | (66,432,971) | |||
Ending Balance | ¥ 0 | |||
Ending Balance, Shares | 0 | |||
Series E Preferred Shares | ||||
Temporary Equity [Line Items] | ||||
Issuance of preferred shares, net of issuance costs | ¥ 1,543,323 | |||
Issue of preferred shares, net of issuance costs, shares | 144,331,134 | |||
Accretion on preferred shares to redemption value | ¥ 30,819 | |||
Redeemable convertible preferred shares converted in to Class A ordinary shares upon the completion of the IPO | ¥ (1,574,142) | |||
Redeemable convertible preferred shares converted into Class A ordinary shares upon the completion of the IPO, Shares | (144,331,134) | |||
Ending Balance | ¥ 0 | |||
Ending Balance, Shares | 0 |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Share-Based Compensation Expenses (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Apr. 30, 2020CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based compensation expenses | ¥ 1,852 | ¥ 1,900,588 | $ 291,278 | ¥ 74,995 | ¥ 14,031 |
Share-based Compensation of Founders’ Restricted Shares | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based compensation expenses | 1,030,178 | 50,837 | 9,793 | ||
Related to Repurchase of Founders’ Ordinary Shares | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based compensation expenses | 146,294 | ¥ 24,158 | ¥ 4,238 | ||
Related to Issuances of Preferred Shares to Investors | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based compensation expenses | 303,627 | ||||
Related to Redesignation of Founder’s Ordinary Shares to Preferred Shares | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based compensation expenses | 1,852 | ||||
Related to Accelerated Vesting of Share Options | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based compensation expenses | 138,729 | ||||
Related to Vesting of Share Options | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based compensation expenses | ¥ 279,908 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2020CNY (¥)shares | Aug. 31, 2020CNY (¥)shares | Apr. 30, 2020CNY (¥)shares | Jul. 31, 2019shares | Nov. 30, 2017shares | Aug. 31, 2017 | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2020USD ($)shares | Dec. 31, 2019CNY (¥)shares | Dec. 31, 2018CNY (¥)shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Share-based compensation expenses | ¥ 1,852 | ¥ 1,900,588 | $ 291,278 | ¥ 74,995 | ¥ 14,031 | |||||
Ordinary shares repurchased | 7,713,574 | 62,388,247 | 62,388,247 | 17,197,032 | 14,503,820 | |||||
Repurchased of ordinary shares, consideration | ¥ | ¥ 483,622 | ¥ 41,062 | ¥ 6,161 | |||||||
Number of options accelerated to vest immediately | 15,518,385 | 15,518,385 | ||||||||
Number of share options, granted | 136,230,857 | 136,230,857 | 62,896,041 | 67,404,501 | ||||||
Unrecognized compensation expenses related to stock options | ¥ | ¥ 733,074 | |||||||||
Unrecognized compensation expenses period for recognition | 1 year 10 months 20 days | 1 year 10 months 20 days | ||||||||
Share Incentive Plan Trust | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Share-based compensation fair value of modified option | ¥ | ¥ 0 | |||||||||
Related to Vesting of Share Options | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Maximum term of option | 10 years | 10 years | ||||||||
Maximum aggregate number of Ordinary Shares authorized | 249,234,508 | |||||||||
Series C Preferred Shares | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Shares issued | 39,859,783 | 26,573,188 | ||||||||
Deemed share-based expense | ¥ | ¥ 303,627 | |||||||||
Ordinary Shares | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Vesting period | 4 years | 4 years | ||||||||
Shares granted | 93,753,239 | 157,846,049 | ||||||||
Shares vested | 7,713,574 | |||||||||
Shares subject to service conditions | 150,132,475 | |||||||||
Ordinary shares repurchased | 62,388,247 | 62,388,247 | 17,197,032 | 14,503,820 | ||||||
Repurchased of ordinary shares, consideration | ¥ | ¥ 4 | ¥ 1 | ¥ 1 | |||||||
Shares issued | 270,250,000 | 270,250,000 | ||||||||
Ordinary Shares | Share Incentive Plan Trust | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Shares issued | 170,719,987 | |||||||||
Share-based Compensation of Founders’ Restricted Shares | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Unvested shares Forfeited, | 23,677,500 | |||||||||
Share-based compensation expenses | ¥ | ¥ 1,030,178 | 50,837 | 9,793 | |||||||
Related to Repurchase of Founders’ Ordinary Shares | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Share-based compensation expenses | ¥ | 146,294 | 24,158 | 4,238 | |||||||
Accelerated Vesting of Share Options | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Share-based compensation expenses | ¥ | 138,729 | |||||||||
Number of options accelerated to vest immediately | 15,518,385 | |||||||||
Share-based compensation fair value of modified option | ¥ | ¥ 138,729 | |||||||||
Options | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Share-based compensation expenses | ¥ | ¥ 279,908 | |||||||||
Founder's Share Options | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Vesting period | 4 years | |||||||||
Tranche One | Share-based Compensation of Founders’ Restricted Shares | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Vesting, percentage | 25.00% | |||||||||
Tranche One | Options | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Vesting, percentage | 25.00% | 25.00% | ||||||||
Vesting period | 4 years | 4 years | ||||||||
Tranche Two | Share-based Compensation of Founders’ Restricted Shares | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Vesting, percentage | 75.00% | |||||||||
Vesting period | 3 years | |||||||||
Tranche Two | Options | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Vesting, percentage | 100.00% | 100.00% | ||||||||
Vesting period | 1 year | 1 year | ||||||||
Share-Based Payment Arrangement, Tranche Three | Options | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Vesting, percentage | 21.43% | 21.43% | ||||||||
Vesting period | 4 years | 4 years | ||||||||
Share-Based Payment Arrangement, Tranche Four | Options | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Vesting, percentage | 7.14% | 7.14% | ||||||||
Vesting period | 2 years | 2 years |
Share-Based Compensation - Move
Share-Based Compensation - Movement in Number of Share Options Granted and Related Weighted Average Exercise Prices (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Number of options, Beginning balance | 68,589,097 | 67,404,501 | |
Number of options, Granted | 136,230,857 | 62,896,041 | 67,404,501 |
Number of options, Cancelled | (1,849,265) | ||
Number of options, Forfeited | (1,544,428) | (3,414,045) | |
Number of options, Modified from options to restricted shares | (58,297,400) | ||
Number of options, Accelerated vesting and exercised | (15,518,385) | ||
Number of options, Ending balance | 185,907,876 | 68,589,097 | 67,404,501 |
Number of options, Exercisable | 34,430,751 | ||
Weighted average exercise price, Beginning balance | $ 0.0073 | $ 0.0065 | |
Weighted average exercise price, Granted | 0.2960 | 0.0080 | $ 0.0065 |
Weighted average exercise price, Cancelled | 0.0006 | ||
Weighted average exercise price, Forfeited | 0.2062 | 0.0065 | |
Weighted average exercise price, Modified from options to restricted shares | 0.0073 | ||
Weighted average exercise price, Ending balance | $ 0.2179 | $ 0.0073 | $ 0.0065 |
Weighted average remaining contractual life, balance | 13 years 8 months 23 days | 4 years 6 months 29 days | 5 years 14 days |
Aggregate intrinsic value, As of December 31, 2020 | $ 749,602 | ||
Aggregate intrinsic value, Exercisable as of December 31, 2020 | $ 145,977 |
Share-Based Compensation - Sc_2
Share-Based Compensation - Schedule of Key Assumptions Used to Determine Fair Value of Share Options (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Weighted average fair value per option granted | $ 7.3798 | $ 1.0360 | $ 0.0854 |
Weighted average exercise price | $ 2.0418 | $ 0.0554 | $ 0.0434 |
Risk-free interest rate, Minimum | 0.48% | 1.90% | 2.90% |
Risk-free interest rate, Maximum | 1.01% | 2.80% | 3.10% |
Expected volatility, Minimum | 50.90% | 45.00% | 42.50% |
Expected volatility, Maximum | 55.90% | 48.00% | 45.80% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Minimum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected term, Minimum | 10 years | 4 years | 5 years |
Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected term, Minimum | 16 years | 7 years | 7 years |
Share-Based Compensation - Sc_3
Share-Based Compensation - Schedule of Share-Based Compensation Expenses Included in Statements of Income and Comprehensive Income (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Apr. 30, 2020CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based compensation expenses | ¥ 1,852 | ¥ 1,900,588 | $ 291,278 | ¥ 74,995 | ¥ 14,031 |
Fulfilment Expenses | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based compensation expenses | 2,947 | ||||
Selling and Marketing Expenses | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based compensation expenses | 54,332 | ||||
General and Administrative Expenses | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based compensation expenses | 1,841,409 | ¥ 74,995 | ¥ 14,031 | ||
Research and Development Expenses | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based compensation expenses | ¥ 1,900 |
Net Income (Loss) Per Share - S
Net Income (Loss) Per Share - Summary of Basic and Diluted Net Income (Loss) per share (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2018CNY (¥)¥ / sharesshares | |
Numerator: | ||||
Net income (loss) attributable to the Yatsen Holding Limited’s shareholders | ¥ (2,687,807) | $ (411,924) | ¥ 75,359 | ¥ (40,124) |
Accretion to preferred shares redemption value | (242,209) | (59,200) | (3,465) | |
Deemed dividend due to modification of preferred shares | (1,054,220) | (61,239) | (3,521) | |
Net income (loss) attributable to ordinary shareholders of Yatsen Holding Limited | ¥ (3,984,236) | $ (610,610) | ¥ (45,080) | ¥ (47,110) |
Denominator: | ||||
Denominator for basic and diluted calculation—weighted average number of ordinary shares outstanding | shares | 833,714,126 | 833,714,126 | 450,499,736 | 271,261,594 |
Net income (loss) per ordinary share | ||||
—Basic | (per share) | ¥ (4.78) | $ (0.73) | ¥ (0.10) | ¥ (0.17) |
—Diluted | (per share) | ¥ (4.78) | $ (0.73) | ¥ (0.10) | ¥ (0.17) |
Net Income (Loss) Per Share -_2
Net Income (Loss) Per Share - Summary of Antidilutive Securities Excluded from Computation of Net Income (Loss) per Share (Details) - shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Conversion of Preferred Shares | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of net income (loss) per share | 959,555,911 | 834,357,412 | 532,193,603 |
Related to Share Options | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of net income (loss) per share | 113,142,382 | 85,255,920 | 28,501,731 |
Related to Founders’ Restricted Shares | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of net income (loss) per share | 256,752,927 | 380,772,174 | 512,479,500 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Transactions with a Related Party (Details) - An Affiliated Company - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Purchases of Storage and Transportation Service | |||
Related Party Transaction [Line Items] | |||
Transactions with a related party | ¥ 15,183 | ||
Purchases of Inventories | |||
Related Party Transaction [Line Items] | |||
Transactions with a related party | ¥ 389 | ¥ 67 |
Related Party Transactions - _2
Related Party Transactions - Schedule of Balances Amount with Related Parties (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Related Party Transaction [Line Items] | |||
Amounts due from related parties | ¥ 14,370 | $ 2,202 | ¥ 664 |
Amounts due to related parties | 11,814 | $ 1,811 | |
Founders | |||
Related Party Transaction [Line Items] | |||
Amounts due from related parties | 13,050 | ¥ 664 | |
Affiliated Companies | |||
Related Party Transaction [Line Items] | |||
Amounts due from related parties | 1,320 | ||
An Affiliated Company | |||
Related Party Transaction [Line Items] | |||
Amounts due to related parties | ¥ 11,814 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - CNY (¥) | Dec. 31, 2020 | Dec. 31, 2019 |
Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Financial assets | ¥ 0 | |
Financial liabilities | 0 | |
Nonrecurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Financial assets | 0 | ¥ 0 |
Financial liabilities | ¥ 0 | ¥ 0 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Financial Instruments Measured or Disclosed at Fair Value on a Recurring Basis (Details) - Recurring - Short-Term Investments ¥ in Thousands | Dec. 31, 2019CNY (¥) |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Fair value of asset | ¥ 10,000 |
Level 2 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Fair value of asset | ¥ 10,000 |
Commitments And Contingencies_2
Commitments And Contingencies (Details) ¥ in Thousands | Dec. 31, 2020CNY (¥) |
Commitments And Contingencies Disclosure [Line Items] | |
Investments in joint venture and business acquisitions | ¥ 148,426 |
Commitment amount | 492,618 |
Property and Equipment | |
Commitments And Contingencies Disclosure [Line Items] | |
Commitment amount | ¥ 1,838 |
Commitments And Contingencies -
Commitments And Contingencies - Schedule of Operating Lease Commitments (Details) ¥ in Thousands | Dec. 31, 2020CNY (¥) |
Commitments And Contingencies Disclosure [Abstract] | |
Total | ¥ 23,254 |
Less Than 1 Year | 4,563 |
1 - 3 Years | 11,892 |
3 - 5 Years | ¥ 6,799 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) ¥ in Millions | 1 Months Ended |
Mar. 31, 2021CNY (¥) | |
Subsequent Event | Business of Eve Lom | |
Subsequent Event [Line Items] | |
Consideration paid for acquisition | ¥ 1,120 |
Restricted Net Assets - Additio
Restricted Net Assets - Additional Information (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Receivables [Abstract] | ||
Percentage of income after tax to reserve | 10.00% | |
Percentage of general reserve fund of registered capital | 50.00% | |
Group entities and VIEs subsidiary restricted amount | ¥ 697,078 | |
Percentage of restricted net assets of subsidiary exceeding consolidated net assets. | 25.00% | 25.00% |