Yatsen (YSG.US) Q2 skincare revenue surges over 40% and accounts for more than 70%, becoming the core growth engine

Zhitong Finance APP learned that on September 2, Yatsen Holding Ltd. (YSG.US) released its financial results for the second quarter of 2026. According to the announcement, the company’s revenue in the second quarter grew to 1.14 billion yuan, an increase of 5.1% year-on-year, marking the seventh consecutive quarter of year-on-year growth.

Among them, the three major skincare brands Galénic, DR.WU and EVE LOM delivered strong growth, boosting the skincare business by 40.4% year-on-year with revenues of 816 million yuan. The skincare segment’s revenue accounted for 71.5% of total revenue, setting a new high for contribution rate and becoming the main growth driver.

Meanwhile, the company continued to increase its investment in R&D. In the second quarter of 2026, the company’s R&D expenses were 37.25 million yuan, with an expense ratio consistently above 3%, ranking among the top tier in the industry. Since 2020, the company has invested more than 770 million yuan in R&D and innovation, maintaining an annual R&D expense ratio above 3% for four consecutive years.

Notably, in May this year, the first tranche of Yatsen’s USD 120 million convertible bonds was successfully issued, receiving joint investment from Centrin Capital and Hillhouse Capital, fully demonstrating strong confidence from leading institutions in the company’s long-term value and strategic layout. According to the announcement, the related funds raised will be used for product R&D, global supply chain integration, and overseas market expansion, which is expected to further drive the company’s sustainable business growth and solidify its core competitiveness.

Regarding this, Yatsen’s founder, Chairman and CEO Huang Jinfeng stated: “In the second quarter, the domestic beauty market showed strong resilience, with market growth picking up, but industry competition intensified and overall challenges remain. Against this backdrop, our business is still at a critical stage of strategic transformation. Our skincare business maintained strong growth momentum, with its single-quarter revenue contribution exceeding 70%. In contrast, the makeup business continues to face structural headwinds and we will proactively adjust resources to focus and further optimize our business structure. Looking ahead, the company will continue to adjust product portfolios and channel operations, while maintaining R&D investment to reinforce our pipeline of innovative products and achieve sustainable long-term growth.”