YSG - Earnings call transcript Q1 2022

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Operator

Ladies and gentlemen, good day, and welcome to the Yatsen First Quarter 2022 Earnings Conference Call. Today’s conference call is being recorded. At this time, I would like to turn the conference over to Irene Lyu, Head of Strategic Investment and Capital Markets. Please go ahead.

Irene Lyu

Thank you, operator. liability discussion future contain to performance the harbor the to statements qualify that the safe company’s by the and from note today forward-looking will relating for U.S. Please established as are intended Private Securities Litigation Act. Reform future guarantees certain uncertainties, other Such and are and nor of are subject performance statements assumptions factors. not to risks

and Yatsen’s this not update filings and undertake and with general results Exchange of risks are business the Securities mentioned law. to obligation could of forward-looking to financial results certain actual information, from factors these affect is included beyond the does those and that any with A Some differ except today’s in in Commission. this the risk as release company The press cause discussion by company the company’s required discussion. materially could control

certain During financial also non-GAAP measures for today’s will call, purposes only. management discuss comparison

a results, issued GAAP definition measures of to of release earnings reconciliation the financial and non-GAAP earlier see financial non-GAAP For today. please

today Mr. on with call also are Founder, and CEO; call management remarks, Director begin with CFO. the conclude Chairman session. Q&A prepared a and Management Huang, team and Yatsen’s Mr. and will Jinfeng senior Yang, will our us our Donghao Joining from the

the ahead, call over As Yatsen’s go will turn be I to a investor ir.yatsenglobal.com. Please a available Mr. Huang. David. relations reminder: and call conference recorded, is now will on This Jinfeng being webcast replay website at

Jinfeng Huang

the you, thank quarter and Ari, participating Yatsen’s call you, for first Thank in conference of XXXX. everyone, for

virtual to Statistics, the from the lowest XXXX one the by beauty continuing the the recent in margins business into is And strategic growth spending XXX such revenues the highly China of quarter, first potential grew sustainable strong and quarter R&D, our are XXXX, the the in a its process quarter, restrictions it is in Bureau in differentiated, brands to major challenging and evolution declined the restrictions and of rates previous line X.X% a in of by cycles. resurgence entire in to quarter retail COVID-XX first backdrop, we reasonable spending deliver in market consumer year-over-year China. first of for we well higher are net March highly into According Against our with XX.X% turn weak growth. cities believe branding was toughest brands plan, perpetuating as of uncertainties environments committed also one recovery million, since cycle. economy strong a notwithstanding, across remain turbulence a Strong beauty our Shanghai. in with quarter pandemic Fundamentally, which one The portfolio clear widespread Therefore, that the effective XXXX. second to Yatsen drive evolution guidance. products this be our to years. led RMB of reinvested that began in with we brands National to market of industry. strategy due Market bolstering Chinese can simple: The second facing

the gross a of of X.X margin, tenacity list. signs Daily year-over-year and and only increase validations seeing already Diary’s our product points, Perfect but award in a China an we unprofitable One equities these Gen-Z our these the is brand Business was progress. and We improvement These included with on XX% also not brand on focusing on promotions. powerful some sign goals; of ongoing reducing building Perfect quarter-over-quarter during awards executed team to gains underscore and brand-building XXXX National of and Powder the resources talent in Loose basis. quarter, a allocating We such our reached first efforts, are [indiscernible] brand passion, quarter. and percentage needed first which gross relentlessly respectively, the achieved makeup Diary are team’s to Encouragingly, the achieve Thanks year and discounts our resilience margin won approach. by the the the and

our new while a awakening centered visuals March, with In DR.WU British in by and introduced the customer Not for combining with year. campaigns in million April, smell garden, and of sense generation. excitement the launched and its new breathtaking vision prior effective Eve Lom expanded to as the radiant product triple-action of and these to net ingredient, on representing skincare product’s D’ a from of branch new campaign XX.X% product of serum skin a botanical an core to of reputation series, the Muslin growing outdone, dermatologists in financial branch Galénic for in new XXX featuring are breathtakingfinary with the for energy beauty Excellence We our Cloths touch, credentials. robust new launched first revenues, with RMB matched revenues DR.WU’s results campaign precision the [reinterpretating] skincare around brand Starting new period. science repaired and total marks Secret year XX.X% a yet insistence highlighting net serum year-over-year The skincare May, brands, a the brands sight, for in reinforce branding an released have up acne’s by X.X% repairing elegant quarter, along efficacy products. of its anti-aging enhancing be

on revenues decline rooted our tough environment a efficiency and first the is quarter. marketing transformation in marketing conditions, it. current brands, relentless the our brand the building, color our we key led is efforts optimize economy market in in are to While doing large Under cosmetic for to laser ROI focused

profitability with the for are improved operating year. last However, much brands cosmetic online with our profile business a now compared color

profile streamlining loyal profitability improved our product eyeliner, core brand zero group we strong and recognition concentrating Specifically, namely enjoys of Little by significantly the it where Ondine on operations customers. the category, among

to buy breakthrough and customers IP marketing appealing keep Bear, other strategy customers old combining we a an to attract reasonable level. to For with crossovers expense [indiscernible] new with reason the performance on product its Pink hand, a at developed age target good the

opportunities increasing Pink exploring Douyin online to are also we and third-party for off-line our as amid profitability several first seek revenue help and From the brand and environment. significantly our and both marketing across this quarter. expenses strategies Little We operating uplift Tmall enhancements distribution portfolio market maximizing selling difficult us Ondine levels for the reduce This efficiency incremental on marketing Bear. tailoring in the and

And expenses and X year-over-year. percentage decrease by percentage selling non-GAAP non-GAAP year-over-year a of marketing to XXX XX%, as total total marketing [RMB net a of million]. revenues, Our points selling our declined reached and expenses XX.X%

much to disruptions build on do marketing we moment, mitigating At to operationally also this adverse we can efficiency, continue offline progress. are we are focusing While our pursue stores. impact we improvements further on pandemic-related on in the of focused there’s the --

spending. quarter, reduced remained the stores in-store During traffic of and our open first due pandemic off-line were stores that shut many witnessed down while those restrictions, to

our expenses able believe We expect in this to optimize and in the first result. accrued possibly a to year. closure-related more and offline recorded as network will the a plan our a quarter We may we We situation of store Accordingly, worsen X certain persist stores business second on optimizations quarter. offline initiated put the of the this continue and number throughout May supply proactively size and promotional June our year. XX retail environment in has with the that and also creative our of the and supply ahead we orders footing To XX are the crucial partners to holidays worked team obtain find quarter, tirelessly second logistics chain solutions. impact and adverse to ensure this in our given chain. extends China sustainable critical dynamic logistics COVID-XX’s to

made we quarter. during logistics Additionally, our of given first optimization the footprint consumer to of demand chain expansions the the outlook weakening XXXX, size the reduced scope certain of for adjustments and the rest our supply

base, our within structure new our overhauled to growth also we our sustainable with cost organization elsewhere Looking objectives. align

updated During pool. first structure, management and quarter, structure optimized talent the compensation we comprehensively revamped our our our

at as of a our X,XXX ago. of total approximately end stands As head compared year the employees with X,XXX count XXXX a March result,

Our is the than XXXX. of in to we loss quarter approximately RMB our loss lower a XXX XXX prior the RMB XX.X% million quarter, of net achieved of first various million RMB the effect reduction year totaled net non-GAAP cost in RMB XX million, non-GAAP administrative the and initiatives optimization million fourth XXX.X general period. of Accumulated of expenses compared

second the economy. on the even become challenging to We environment impacts due more XXXX the of to COVID-XX operating quarter in expect of prolonged effect the

a We costs, focused optimizing of and on business will upgrading our market. remain to for evolving the control, aspects investing dynamically the those our continuing environment adapt can to we and future, while capabilities that

the [indiscernible] of of investment. We our be expenses R&D RMB As R&D in X% product of efforts, first the million total continues a quarter, representing to revenues. recorded area XX key in net differentiating

they we and to in look to partnerships number our become a on our working capabilities milestones and are of initiatives updates available. sharing new XXXX, R&D as strengthening exciting forward We on

year various first Diary on year. optimization, we particular, the we have extensive techniques of quarter’s since momentum, developed revenues, a Douyin and the After progress revenue We brands. behind have year-over-year by are upgrade to offline total previous channel demonstrating to by than more quarter testing In working sales across and XXX% grew made our largest on and Douyin ranked first of on live Douyin in net Tmall from XXXX, cosmetic over in Perfect color our channel also operations. our it third making ROI the maximize quarter, honed various during the third our our source. streaming Building last

and promoting experiences, this least, campaign. launched Women’s corporate of socially their As empowerment. explore to the life is more the that jointly pleased through. innovate with identities a industries to to platform, nature are invited pursue not without and we On ahead adapt result, add integral limits their to citizens. women to will And our we and own We stay the from public as Day, Yatsen Yatsen be share Last their of continued sustainable and but of passionate is different Douyin about International [indiscernible] possibilities success welfare and fast-moving dreams. the women given responsible women diverse curve. our continually spending effort won’t encouraging we women’s

delivery addition, this delivery the a Perfect have on-time safe cooperating ensure the goods Diary outbreaks. continued and with transported In to our COVID transparency With of the and to in customers. to the code, efforts improved develop efficient logistics help goods ensure recent companies of code

in end, protect our we activities. refer place first business for social set practices, on full report putting governance In beauty, review For how of we we discover, environmental a be off our serves social which vital of to year minds. will as elevate and that To Yatsen mission and X-year plan. creates our inspires happiness May our an uncertainty, a corporate XXXX released best of detailed a world which Yatsen believe important annual report please comprehensive was new information are our inaugural XX. to adjusting on provides ESG ESG and and the This impact

Although With our the operating Thank delight high-quality financial remain the the current to conditions Donghao and we foreseeable discuss to narrow world challenging, plan customers market everyone. that, primary performance. to continue over beauty in with products. to evolve, and Yang, CFO, and around our will call our our you, I now turn loss China

Donghao Yang

Thank And hello, you, David. everyone.

increase from started, from in year-over-year in attributable to first XXX.X Total changes primarily unless XXXX to color decreased decreased profit the improve XX.X% all the XX.X% our net Before of amounts, was gross numbers year period. XXX.X I through by XX% the today decrease to XXXX as primarily the I prior cosmetics in for XX.X% continuous to quarter RMB billion quarter margin, sales the to period. by from year quarter XXXX first renminbi to from would XXXX year pricing prior for changes brands, by and RMB operating X.XX margin RMB our RMB by XX% clarify products the increase all of revenues otherwise period. in expenses from and brands. decrease as increasing decreased million from in noted. XXX prior the The financial efforts of through the in Gross year was period. of revenues in first well for The partially XXX.X that increased RMB skincare from X.XX the the our first to our XX.X% million Total for like are offset revenues net net percentage to Gross fourth get to million -- XX.X% million discounts RMB prior our including of higher-gross-margin billion attributable optimization presented promotions. quarter refer

XX.X expenses million period. million, operating RMB XXX.X%, of XXXX percentage quarter RMB XXXX XX.X with revenues, a with first as period. As total were total compared of in net year as compared the XX.X% Fulfillment the for first for in prior the the expenses of quarter were year prior

offset was from of year XXXX fixed in increased to quarter of net related X.X% period. period. the instituted assets with for the partially million, initiatives first X.X% cost-saving the As our first of the billion for by RMB a of year compared fulfillment XXXX. scale attributable expenses, during the total quarter RMB The to percentage XXX.X X.XX increase to of economies fulfillment marketing expenses prior in revenues, as of and Selling first decrease XXXX certain quarter in expenses prior the were a primarily fulfillment

stores. of As a of selling primarily experience of year The prior as net XX.X% were expenses by efficiency continuous partially revenues, General of compared with our in attributable related offset expenses period. from and XXXX XXX.X for million, efforts million for to XXX.X of XX.X% to the administrative in quarter first the the RMB our percentage year and quarter spending, decreased to marketing expenses RMB total the prior offline to decrease XXXX marketing closure the period. the first optimize certain was the

and expenses development expenses. of year compared percentage and net period. salaries XX.X was a the for to The in first attributable for period. prior first the from and share-based prior As XXXX total RMB Research increased XX.X% RMB the quarter increase in were quarter million to of increases revenues, in year administrative the the with compensation XX.X% of expenses primarily million, XX.X XXXX as general

in as year our was by XX.X% capabilities. compared with X.XX, prior to Operating The period. from the increases in period. equipment the RMB RMB million decreased as year for in margin RMB period. by by prior year the was X.XX net compared shareholders was compared Non-GAAP Net ordinary million of and the reflecting margin of primarily first costs, XX.X% to loss XXXX percentage the of the RMB development attributable XXXX research loss for year prior the X% for for as XXX.X quarter with margin quarter period. year year RMB by first decreased Non-GAAP was quarter RMB with in X.X% as decreased and period. expenses period. enhancing loss first of commitment period. loss to was prior Yatsen’s operations development diluted in the for as for per in quarter revenues, million XXXX X.X% attributable decreased loss X.XX, in prior total for first Net year RMB to in in our the RMB million a from of period. diluted XX.X% the loss operations loss the X.X quarter prior with was the XX.X% prior loss XX.X% raw to materials, compensation compared in XXX.X expenses, XXX increase XX.X%, period. net RMB Non-GAAP period. operating with ordinary prior XXXX first the first from as Yatsen’s to share-based XXX year in attributable XXXX from million the of research ADS net the from million of personnel in Loss XXX.X RMB the million prior from ADS shareholders first quarter per XXX.X XX.X%, from As to increased XXXX the prior to Non-GAAP XXXX compared net of to with the XX.X%, year prior year XX.X% margin loss compared quarter Net XXX.X XX.X%, million XXX.X period. Non-GAAP RMB XX.X% RMB was the and year

billion, XX, equivalents RMB XXXX. XX, March as investments cash company X.XX X.XX short-term and with December billion had compared as the of RMB of XXXX, of As cash,

quarter XXX.X RMB activities XX, first in the XXXX, compared with was million, period. operating cash year in ended net used XXX.X For as prior March RMB million the

current XX% to total demand second negative the color between net from views quarter continued of to to million This XX% now RMB preliminary the RMB and decline XXXX, the to I operational would offline million, approximately supply the are the For of primarily chain. that, softening the year-over-year fulfillment conditions, Operator? Q&A. and impact representing to which XXX.X company’s open cosmetics and its market due expects call change. company industry-wide be forecast of revenues on continued XXX.X on a capabilities stores, like reflects With order COVID-XX experience subject online to and and

Operator

the [Operator For question first Instructions] of if with Instructions] Dustin your in Wei question on benefit [Operator all English. today’s from participants call, comes immediately question in you ask to your to management wish Stanley. please Morgan The repeat Chinese,

Dustin Wei

ROI, My management like and supply think, the loss impact to stick the if perspective, want from COVID March, XXXX first coming store from third of brands. reduction key David do And target sort profits. consumer we a product small also, guess market headwind get just making bit the highlights to also little turnaround improvement is could you easing any based both like the Like and this have quantify COVID. the some that still like And for question if the offline is the to the I from for to from the in a is maybe on bigger sales, question to to could situation April, little I management May? disruption. of much I or some or for question more chain actually check delivery see Second like but better provide wish

of some of on. as Douyin just that environment detailed about key for you for weakness, the the initiatives but highlight? Especially focused wonder the thoughts competitive that the are if You I what’s I and like macro it and anything but elaborate just you remarks, to -- key think prepared mentioned, the in talked well you current current in you as your what’s initiatives more channel? brands can the sort

Donghao Yang

the want first on our the to take of impact you operations? question, the do COVID-XX on David,

Jinfeng Huang

Sure.

I then in you beauty -- the and XX.X% industry. and can at think, see retailers the the growth and another also the we look XX.X% clearly beauty declined in numbers and the decline the if that by retails of April, also industries the total

impacts about see April that think like our COVID. the I offline And business, think around sign the the offline. and been the of specifically, for stores our [XX%] has online for we of is important I by in very COVID like our impacted that including

that area, new in so and the mean, of our negative because online, customer for supply impact, the our For -- and the for coverage. I also also -- the product launch and chain, Shanghai then impact, logistics disturbance has

So about so to hedge -- going more if and we have And brands. COVID. also been risk look ahead are new or then we we shifting are the resources we growth And model. what more of to on very our focused the into

question, I our And first, brand have which kind answer the what skincare. initiatives for portfolios taken of in we so can strengthening third is

I think fast. and Galénic growing right are really now DR.WU

and unique I focused which DR.WU, brand For very dermatologists has the brand equity brand. distinctive think is a on

the is product -- base. see from Serum, strong. bigger bigger launched has the expand to a the for And serum, customer Snow this into of momentum pretty the we covering so into expanded of to And serum And year, group which brand the DR.WU Algae repair Galénic, product, launched benefit VC space. the helps we has important very a more, the which brand triple-active just the which is

the products we for brand this so become we future. important supporting Lom. take And foresee pillar And one a very with growth X results for for Tmall, X the or products initial on strong, will of is year, both in relaunch of based most brands Eve the actually new initiatives the Douyin launch the

the brand now expanding brand. -- skincare more to been been a luxury brand print like the from equity has to has brand So right

well which consumers. So is the the campaigns launched, we has very by been the, received just

into think, DR.WU, will company. about resources I whole Eve brands expansion, looking then Galénic, -- I and skincare for gross profitability So devote the we Lom. margin. And high And the the believe also those forward more have

Donghao Yang

be we number year, but situation of this turn but to were even able Dustin, next it’s depend on improves. the still how to aiming that Yes. are full to on break And year or the I our think the that of Well, by the question think virus. profitable your will the year, over for depends chances if achieve end I we two: Well, goals, situation will actually COVID-XX

Dustin Wei

so obviously May brand I is very terms go on many guess, of do brand one so on the men in Diary This product have way share important colors marketing on changes also Diary Perfect brand? current brand? and, year new could Diary the just itself focus Perfect for you you Perfect follow-up I to what’s through some launch,

Jinfeng Huang

Sure.

are is the really at but for ease I Diary to drivers of at same brand’s to number we think, the thing a most Perfect the so looking -- time, improve profitability. sales the growth important decline,

are So a things few we now. there are doing right

For improve with own now are one have then And we we thing also initiative we top And brand also and direct then the then Douyin. in second more right products. our momentum relationship KOLs. continuing working stronger take are the new continuing And launch to we capabilities. also is so going to streaming live

[indiscernible] the So just series period. launched we as part of the [X/XX] right promotion now

on based pretty our the media, our the is operation customers. think, on received social well I product core by --

distribution third we expand going is major to retailer do are third-party our chains. at The beauty offline thing to

is to improve stores improve for other Perfect really we So want eventually -- hand, network bottom on the so the Diary’s I want to line will thing the whole the -- the brand, highlight year. optimizing throughout we another offline which

Operator

Christine next with Sachs. from The comes question Goldman Cho

Christine Cho

So I have X quick questions.

the first next for as also we drivers share quite to gains? in the some I need half, So What the the operating that I about how question. to think, we path are you the own remains should as half challenging key and think re-acceleration watch recovery second but year? that, the see think our still market environment in second industry That’s well mentioned of

selling elaborate you the marketing plans this your versus first year can look a half on you more of and at half? if Secondly, for second little spend bit

Jinfeng Huang

in conditions big -- indicator key reflecting to is And the whole decline is how see factors I rate. think, the for be health number of still key the the very the third quarter of we the pretty going in the in growth industry. decision quarter of whole -- become a Right one one the the will now industry, fourth April. year-on-year about

So industry said chain the at of because now, the supply about the we to right cautious a think -- I need for if having which manufacturers, look that, big very the lot be impact whole those Shanghai, all very of I in policy. the strict OEM/ODMs a COVID-XX of Shanghai areas, suppliers located -- partners the mean, had of impact been strong we very have

-- be the in if will industry product, in that the new supply this of all year. players the second So a innovations half very for this big challenge product existing or

So about now. right that’s what we COVID think the

Operator

voluntary So any follow-up?

Irene Lyu

Yes. And forward. sales for changes that asked, and the the expense question Christine marketing second going about

have earlier. currently, a year we we at to of reduction and the a percentage quarter, marketing So expense look point X sales if this compared

was we of the And going of the resurgence us and but reduction, offline to COVID-XX. the is as store. help expenses stores then of onetime portfolio. for the brands continue Number there the expenses ROI, ongoing actually related is the of and optimization revenue. of optimization the actual to some marketing number in partially couple of offset due reduce then expenses offline our And this, it which help a some will drivers forward, So ongoing traffic a think one all the percentage by secondly reduce higher, as our will to sales closure are of

marketing. So those will for main drivers be and the sales forward X going

Operator

Lin CICC. Kian [ph] from comes from question Next

Unidentified Analyst

shopping capabilities is leverage on Yatsen the strategies. price we’ve how showing the increased what marketing for results the growth, our is seen this the have will applied June updates some such And be company’s My strategies And do that also will the in And are and R&D, strategies on results? could XX development as pursuit question management XXXX year? the we My OpenLab on company’s festival how so KOLs? growing and that question top future? in give second competition sustainable in product see the investments established the first how management R&D in much

Jinfeng Huang

also June brand for event. one, promotion, promotion the first product we for for to of the the XX upgrade think, preparation our initiatives one some launch the big and take I new key is about for

new Ondine, all launched Bear, So few Pink a Perfect our Little very in brands. May, Diary, important we basically SKUs for of

So are those new forward looking for performance initiatives’ promotion the we event. to

rate other equity hand, discount the we’re competition brand XX, and because also strong. at we see now, you the our that On right has event promotion strengthening really clearly become look the also price of June if the

So can concern or the maintain a that the only we to gross to we can for that brand so address risk that growth. way is -- mitigate margin equity sustainable strengthening healthy

So doing that we -- to guidance so what promotion, so a relatively for giving happen that why wider June the having promotion, but we XX said that’s are are for what now is we the going think that’s are right big there range very uncertainty about mid-year of the this year.

R&D. the question, the about second For

the initiatives developed at or the on the the if OpenLab improving patents. R&D but looking some are other new technologies we can see hand, we on based just There have the launched at are are products you you’re expenses, number, and looking strategy. we there you’re that If yes, -- of that

with past the you efficacy. technology is the triple-active a with high if look product DR.WU create protect of it Serum, and we the also within we patent and very competition. we some the co-developed the the we Technology product and Pierre something the owned. also the a ensure Snow is for actually performance co-developed And inside Fabre Huazhong product University. And in Algae a -- the, that serum example, anti uniquely Science the For And we repair barrier will we the years; ingredients at is

launched be patents than and newly technology So into our we more forward, products. there can more that, R&D, now looking develop putting we will see through

items improve and market that to will focused efforts also So the in the a skincare the more we gross and reflecting products areas. have competitiveness helping see the on been rate. in And our the margin coming there can especially half in R&D repurchase new be more and year, healthier

Operator

question James. Tong with next The from Olivia comes Raymond

Devin Weinstein

Weinstein Devin is on Olivia. This for

guidance. ask more First, to about little bit a the wanted I

with where of optimizing your you of what lean kind other you little in be, see long-term substantial of hoping the QX slight of of can terms in terms So goal expenses, if and in other comment plan get actions lockdowns your but out And bit to the so of my COVID in a productivity. around sequential head you and areas comps count your the a more bit QX, in I midpoint going next well only a you’ve is And second guidance bring some personnel. the other to the slowdown where and cost ending curious earlier comments also presumably the could quarter reducing the more you color and on terms the the head stand the expecting the half. than second for done context. some like your you second bit get environment. around demand think the on rightsizing I’m to stack, quite X-year you more some you’re of rate; then increase of to will the into -- where you or positioning, any think at just your but a and specifically expenses half. just taking easier impact that count sounds was I a more work as the category needs It operating pent-up question greater the implies then COGS appreciate on environment, improvement, gave be a

Jinfeng Huang

if April, skincare. decline a the has higher industry color the decline the think cosmetics has -- in we beauty said bigger a rate separate you like skincare. and cosmetics Color first I versus question of

the now mitigating from believe we skincare of of reason progression and the gradually beauty the giving sector our industry the industry skincare guidance -- estimation growth of skincare are So also looking for the be the we QX. and the brands right impact will our of this Because the QX and QX -- resuming is COVID forward.

why to resources that’s So be Having business. makeup. said growing the would are which devoting we believe the helping fundamentally skincare become for profitable that, we a more brands, business

have sure, -- been So right few for months. Ondine the declining Diary Perfect now past in we and Little

be will for is declining reflecting of expense. that gradually sales both doing in sales key we ROI are and means which brands, we raising are the this the the One reasons marketing, bar, and marketing the

for the higher in the marketing, normal optimization the if you if QX once we brands. the focus So at The still looking because, our situation optimizing #X will coming most sales hand, marketing our also also the that on a and and we also thing and resuming come from effort important think repurchase are there is the and on. ROI right rate we’re the we see opportunity continued components forward now, we -- offline the look and sales to marketing a few about strategy, other will and

those all be the sales and decrease to factors marketing. will in So contributing

optimize that projects component. On some to once talent the other thing G&A us revenue we -- we optimization our the continue is that performance. the reflect we will of forward, one see are for see rooms still the there total moving are continuous also hand, to G&A the are effort optimize the because will there will And for percentage

Operator

back additional conference the like or I comments. would session. that closing turn the concludes to management any And for to over question-and-answer

Irene Lyu

once joining again us today. Thank you for

If or investor you free relations. any TPG please further directly contact feel at us to Yatsen have questions,

for You day. release. and in today’s information both China a IR you can and press U.S. our have contact great find in the Thank

Operator

The conference concluded. has

Thank disconnect. you. now may You

Yatsen Holding Limited (YSG) 24 May 222022 Q1 Earnings call transcript