Conference Call to Be Held at 7:30 A.M. U.S. Eastern Time on February 25,2025

GUANGZHOU,China,Feb. 25,2025 --Yatsen Holding Limited ("Yatsen" or the "Company") (NYSE: YSG),a leading China-based beauty group,today announced its unaudited financial results for the fourth quarter and full year ended December 31,2024.

Fourth Quarter and Full Year 2024 Highlights

Total net revenues for the fourth quarter of 2024 increased by 7.1% to RMB1.15 billion (US$157.3 million) from RMB1.07 billion for the prior year period. Total net revenues for the full year of 2024 decreased by 0.6% to RMB3.39 billion (US$464.9 million) from RMB3.41 billion for the prior year period.

Total net revenues from Skincare Brands[1] for the fourth quarter of 2024 were RMB554.8 million (US$76.0 million),remaining flat as compared with the prior year period. As a percentage of total net revenues,total net revenues from Skincare Brands for the fourth quarter of 2024 were 48.3%,as compared with 51.7% for the prior year period. Total net revenues from Skincare Brands for the full year of 2024 increased by 0.7% to RMB1.39 billion (US$190.9 million) from RMB1.38 billion for the prior year period. As a percentage of total net revenues,total net revenues from Skincare Brands for the full year of 2024 were 41.1%,as compared with 40.5% for the prior year period.

Gross margin for the fourth quarter of 2024 increased to 77.8% from 73.7% for the prior year period. Gross margin for the full year of 2024 increased to 77.1% from 73.6% for the prior year period.

Net loss for the fourth quarter of 2024 decreased by 23.4% to RMB378.8 million (US$51.9 million) from RMB494.5 million for the prior year period. Net loss for the full year of 2024 decreased by 5.3% to RMB710.2 million (US$97.3 million) from RMB750.2 million for the prior year period. Non-GAAP net income[2] for the fourth quarter of 2024 was RMB107.0 million (US14.7 million),as compared with non-GAAP net loss of RMB93.7 million for the prior year period. Non-GAAP net loss for the full year of 2024 decreased by 56.7% to RMB128.2 million (US$17.6 million) from RMB296.1 million for the prior year period.

Mr. Jinfeng Huang,Founder,Chairman and Chief Executive Officer of Yatsen,stated,"We are pleased to share our solid performance in the fourth quarter of 2024,despite the continued challenges in the beauty market. We achieved year-over-year growth in total net revenues for the fourth quarter,driven by the recovery of Perfect Diary as well as the combined growth of our three major skincare brands. In terms of profitability,we also made solid progress,narrowing our net loss margin while delivering non-GAAP net income for the quarter. This performance reflects the success of our strategic initiatives in product development,brand building,and cost optimization. As we move forward,we will remain committed to our strategic transformation plan and are confident in our ability to navigate the evolving market dynamics and drive sustainable growth."

Mr. Donghao Yang,Director and Chief Financial Officer of Yatsen,commented,"Our financial results for the fourth quarter and full year of 2024 demonstrate the effective execution of our strategic transformation. In the fourth quarter,we achieved a 7.1% year-over-year increase in net revenues,in line with our guidance. Our gross margin rose to 77.8%,up from 73.7% for the prior year period. While we recorded a net loss,primarily due to a goodwill impairment of RMB403.1 million,we achieved solid non-GAAP net income with a 9.3% margin.[3] For the full year 2024,our total net revenues declined by 0.6% year over year,reflecting overall stability. Meanwhile,our gross margin,net loss margin,and non-GAAP net loss margin all showed improvements compared with the prior year. Looking ahead,we will continue to enhance our operational efficiencies and strategically allocate resources to position the company for long-term success."

Fourth Quarter 2024 Financial Results

Net Revenues

Total net revenues for the fourth quarter of 2024 increased by 7.1% to RMB1.15 billion (US$157.3 million) from RMB1.07 billion for the prior year period. The increase was primarily due to a 16.4% year-over-year increase in net revenues from Color Cosmetics Brands.[4]

Gross Profit and Gross Margin

Gross profit for the fourth quarter of 2024 increased by 13.0% to RMB893.0 million (US$122.3 million) from RMB790.1 million for the prior year period. Gross margin for the fourth quarter of 2024 increased to 77.8% from 73.7% for the prior year period. The increase was primarily driven by an increase in sales of higher-gross-margin products.

Operating Expenses

Total operating expenses for the fourth quarter of 2024 decreased by 3.5% to RMB1.28 billion (US$175.9 million) from RMB1.33 billion for the prior year period. As a percentage of total net revenues,total operating expenses for the fourth quarter of 2024 were 111.8%,as compared with 124.0% for the prior year period.

Fulfillment Expenses. Fulfillment expenses for the fourth quarter of 2024 were RMB63.5 million (US$8.7 million),as compared with RMB62.7 million for the prior year period. As a percentage of total net revenues,fulfillment expenses for the fourth quarter of 2024 decreased to 5.5% from 5.8% for the prior year period. The decrease was primarily due to an increase in the overall average selling price of the Company's products,as well as further improvements in logistics efficiency.

Selling and Marketing Expenses. Selling and marketing expenses for the fourth quarter of 2024 were RMB690.6 million (US$94.6 million),as compared with RMB717.4 million for the prior year period. As a percentage of total net revenues,selling and marketing expenses for the fourth quarter of 2024 decreased to 60.1% from 66.9% for the prior year period. The decrease was primarily due to the Company's more strategic marketing spending,combined with lower payroll expenses related to selling and marketing personnel.

General and Administrative Expenses. General and administrative expenses for the fourth quarter of 2024 were RMB100.1 million (US$13.7 million),as compared with RMB158.7 million for the prior year period. As a percentage of total net revenues,general and administrative expenses for the fourth quarter of 2024 decreased to 8.7% from 14.8% for the prior year period. The decrease was primarily attributable to lower payroll expenses resulting from a reduction in general and administrative headcount and lower share-based compensation expenses.

Research and Development Expenses. Research and development expenses for the fourth quarter of 2024 were RMB26.3 million (US$3.6 million),as compared with RMB36.9 million for the prior year period. As a percentage of total net revenues,research and development expenses for the fourth quarter of 2024 decreased to 2.3% from 3.4% for the prior year period. The decrease was primarily attributable to the Company's efforts to maintain research and development expenses at a reasonable level relative to total net revenues.

Impairment of Goodwill. Impairment of goodwill for the fourth quarter of 2024 was RMB403.1 million (US$55.2 million),as compared with RMB354.0 million in the prior year period. Impairment recorded in this quarter mainly represents the amount by which the carrying value of the Eve Lom reporting unit exceeded its fair value,based on the quantitative goodwill impairment test,primarily due to weaker operating results than expected.

Loss / Income from Operations

Loss from operations for the fourth quarter of 2024 was RMB390.7 million (US$53.5 million),as compared with RMB539.6 million for the prior year period. Operating loss margin was 34.0%,as compared with 50.3% for the prior year period.

Non-GAAP income from operations[5] for the fourth quarter of 2024 was RMB93.2 million (US$12.8 million),as compared with non-GAAP loss from operations of RMB125.9 million for the prior year period. Non-GAAP operating income margin[6] was 8.1%,as compared with non-GAAP operating loss margin of 11.7% for the prior year period.

Net Loss / Income

Net loss for the fourth quarter of 2024 was RMB378.8 million (US$51.9 million),as compared with RMB494.5 million for the prior year period. Net loss margin was 33.0%,as compared with 46.1% for the prior year period. Net loss attributable to Yatsen's ordinary shareholders per diluted ADS[7]for the fourth quarter of 2024 was RMB3.98 (US$0.55),as compared with RMB4.57 for the prior year period.

Non-GAAP net income for the fourth quarter of 2024 was RMB107.0 million (US$14.7 million),as compared with non-GAAP net loss of RMB93.7 million for the prior year period. Non-GAAP net income margin was 9.3%,as compared with non-GAAP net loss margin of 8.7% for the prior year period. Non-GAAP net income attributable to Yatsen's ordinary shareholders per diluted ADS[8] for the fourth quarter of 2024 was RMB0.99 (US$0.14),as compared with non-GAAP net loss attributable to Yatsen's ordinary shareholders per diluted ADS of RMB0.84 for the prior year period.

Full Year 2024 Financial Results

Total net revenues for the full year of 2024 decreased by 0.6% to RMB3.39 billion (US$464.9 million) from RMB3.41 billion for the prior year period,primarily attributable to the decline in net revenues from Color Cosmetics Brands,partially offset by the increase in net revenues from Skincare Brands.

Gross profit for the full year of 2024 increased by 4.1% to RMB2.62 billion (US$358.6 million) from RMB2.51 billion for the prior year period. Gross margin for the full year of 2024 increased to 77.1% from 73.6% for the prior year period. The increase was primarily attributable toincreasing sales of higher-gross margin products.

Loss from operations for the full year of 2024 was RMB824.9 million (US$113.0 million),as compared with RMB913.4 million for the prior year period. Operating loss margin decreased to 24.3% from 26.7% for the prior year period.

Non-GAAP loss from operations for the full year of 2024 was RMB224.3 million (US$30.7 million),as compared with RMB427.5 million for the prior year period. Non-GAAP operating loss margin decreased to 6.6% from 12.5% for the prior year period.

Net loss for the full year of 2024 was RMB710.2 million (US$97.3 million),as compared with RMB750.2 million for the prior year period. Net loss margin decreased to 20.9% from 22.0% for the prior year period. Net loss attributable to Yatsen's ordinary shareholders per diluted ADS for the full year of 2024 was RMB6.99 (US$0.96),as compared with RMB6.81 for the prior year period.

Non-GAAP net loss for the full year of 2024 was RMB128.2 million (US$17.6 million),as compared with RMB296.1 million for the prior year period. Non-GAAP net loss margin decreased to 3.8% from 8.7% for the prior year period. Non-GAAP net loss attributable to Yatsen's ordinary shareholders per diluted ADS for the full year of 2024 was RMB1.26 (US$0.17),as compared with RMB2.66 for the prior year period.

Balance Sheet and Cash Flow

As of December 31,2024,the Company had cash,restricted cash and short-term investments of RMB1.36 billion (US$185.8 million),as compared with RMB2.08 billion as of December 31,2023.

Net cash generated from operating activities for the fourth quarter of 2024 was RMB202.2 million (US$27.7 million),as compared with RMB90.5 million for the prior year period. Net cash used in operating activities for the full year of 2024 was RMB243.7 million (US$33.4 million),as compared with RMB107.4 million for the prior year period.

Business Outlook

For the first quarter of 2025,the Company expects its total net revenues to be between RMB788.8 million and RMB866.2 million,representing a year-over-year increase of approximately 2% to 12%. These forecasts reflect the Company's current and preliminary views on the market and operational conditions,which are subject to change.

Exchange Rate

This announcement contains translations of certain Renminbi ("RMB") amounts into U.S. dollars ("US$") at specified rates solely for the convenience of the reader. Unless otherwise noted,all translations from RMB to US$ were made at a rate of RMB7.2993 to US$1.00,the exchange rate in effect as of December 31,as set forth in the H.10 statistical release of The Board of Governors of the Federal Reserve System. The Company makes no representation that any RMB or US$ amounts could have been,or could be,converted into US$ or RMB,as the case may be,at any particular rate,or at all.

[1] Include net revenues from Galénic,DR.WU (its mainland China business),Eve Lom and other skincare brands of the Company.

[2] Non-GAAP net income (loss) is a non-GAAP financial measure. Non-GAAP net income (loss) is defined as net income (loss) excluding (i) share-based compensation expenses,(ii) amortization of intangible assets resulting from assets and business acquisitions,(iii) revaluation of investments on the share of equity method investments,(iv) impairment of goodwill and (v) tax effects on non-GAAP adjustments.

[3] Non-GAAP net income (loss) margin is a non-GAAP financial measure,which is defined as non-GAAP net income (loss) as a percentage of total net revenues.

[4] Include Perfect Diary,Little Ondine,Pink Bear and other color cosmetics brands of the Company.

[5] Non-GAAP income (loss) from operations is a non-GAAP financial measure. Non-GAAP income (loss) from operations is defined as income (loss) from operations excluding (i) share-based compensation expenses,(ii) amortization of intangible assets resulting from assets and business acquisitions and (iii) impairment of goodwill.

[6] Non-GAAP operating income (loss) margin is a non-GAAP financial measure,which is defined as non-GAAP net income (loss) from operations as a percentage of total net revenues.

[7] ADS refers to American depositary shares,each of which represents twenty Class A ordinary shares,effective from March 18,2024. Prior to that date,each ADS represented four Class A ordinary shares. Unless otherwise stated,the current ADS ratio has been applied retrospectively to all periods presented in this document.

[8] Non-GAAP net income (loss) attributable to ordinary shareholders per diluted ADS is a non-GAAP financial measure. Non-GAAP net income (loss) attributable to ordinary shareholders per diluted ADS is defined as non-GAAP net income (loss) attributable to ordinary shareholders divided by the weighted average number of diluted ADS outstanding for computing diluted earnings per ADS. Non-GAAP net income (loss) attributable to ordinary shareholders is defined as net income (loss) attributable to ordinary shareholders excluding (i) share-based compensation expenses,(iv) impairment of goodwill,(v) tax effects on non-GAAP adjustments and (vi) accretion to redeemable non-controlling interests.

Conference Call Information

The Company's management will hold a conference call on Tuesday,February 25,2025,at 7:30 A.M. U.S. Eastern Time or 8:30 P.M. Beijing Time to discuss its financial results and operating performance for the fourth quarter and full year 2024.

United States (toll free):

+1-888-346-8982

International:

+1-412-902-4272

Mainland China (toll free):

400-120-1203

Hong Kong,SAR (toll free):

800-905-945

Hong Kong,SAR:

+852-3018-4992

Conference ID:

5014463

The replay will be accessible through Tuesday,March 4,by dialing the following numbers:

United States:

+1-877-344-7529

International:

+1-412-317-0088

Replay Access Code:

5014463

A live and archived webcast of the conference call will also be available on the Company's investor relations website at http://ir.yatsenglobal.com.

About Yatsen Holding Limited

Yatsen Holding Limited (NYSE: YSG) is a leading China-based beauty group with the mission of creating an exciting new journey of beauty discovery for consumers around the world. Founded in 2016,the Company has launched and acquired numerous color cosmetics and skincare brands including Perfect Diary,Pink Bear,Galénic,Eve Lom and EANTiM. The Company's flagship brand,Perfect Diary,is one of the leading color cosmetics brands in China in terms of retail sales value. The Company primarily reaches and engages with customers directly both online and offline,with expansive presence across all major e-commerce,social and content platforms in China.

For more information,please visit http://ir.yatsenglobal.com.

Use of Non-GAAP Financial Measures

The Company uses non-GAAP income (loss) from operations,non-GAAP operating income (loss) margin,non-GAAP net income (loss),non-GAAP net income (loss) margin,non-GAAP net income (loss) attributable to ordinary shareholders and non-GAAP net income (loss) attributable to ordinary shareholders per diluted ADS,each a non-GAAP financial measure,in reviewing and assessing its operating performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. The Company presents these non-GAAP financial measures because they are used by the management to evaluate operating performance and formulate business plans. Non-GAAP financial measures help identify underlying trends in its business,provide further information about its results of operations,and enhance the overall understanding of its past performance and future prospects. The Company defines non-GAAP income (loss) from operations as income (loss) from operations excluding (i) share-based compensation expenses,(ii) amortization of intangible assets resulting from assets and business acquisitions and (iii) impairment of goodwill. Non-GAAPoperating income (loss) margin is non-GAAP income (loss) from operations as a percentage of total net revenues. The Company defines non-GAAP net income (loss) as net income (loss) excluding (i) share-based compensation expenses,(iv) impairment of goodwill and (v) tax effects on non-GAAP adjustments. Non-GAAP net income (loss) margin is non-GAAP net income (loss) as a percentage of total net revenues. The Company defines non-GAAP net income (loss) attributable to ordinary shareholders as net income (loss) attributable to ordinary shareholders excluding (i) share-based compensation expenses,(v) tax effects on non-GAAP adjustments and (vi) accretion to redeemable non-controlling interests. Non-GAAP net income (loss) attributable to ordinary shareholders per diluted ADS is computed using non-GAAP net income (loss) attributable to ordinary shareholders divided by weighted average number of diluted ADS outstanding for computing diluted earnings per ADS.

However,the non-GAAP financial measures have limitations as analytical tools as the non-GAAP financial measures are not presented in accordance with U.S. GAAP and may differ from the non-GAAP information used by other companies,including peer companies,and therefore their comparability may be limited. The Company compensates for these limitations by reconciling the non-GAAP financial measures to the nearest U.S. GAAP performance measure,all of which should be considered when evaluating performance. The Company encourages investors and others to review its financial information in its entirety and not rely on a single financial measure. Reconciliations of Yatsen's non-GAAP financial measure to the most comparable U.S. GAAP measure are included at the end of this press release.

Safe Harbor Statement

This announcement contains statements that may constitute "forward-looking" statements which are made pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "aims," "future," "intends," "plans," "believes," "estimates," "likely to," and similar statements. The Company may also make written or oral forward-looking statements in its periodic reports to the Securities and Exchange Commission ("SEC"),in its annual report to shareholders,in press releases and other written materials and in oral statements made by its officers,directors or employees to third parties. Statements that are not historical facts,including statements about the Company's beliefs,plans,outlook and expectations,are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement,including but not limited to the following: the Company's growth strategies; its future business development,results of operations and financial condition; its ability to continue to roll out popular products and maintain popularity of existing products; its ability to anticipate and respond to changes in industry trends and consumer preferences and behavior in a timely manner; its ability to attract and retain new customers and to increase revenues generated from repeat customers; its expectations regarding demand for and market acceptance of its products and services; its ability to integrate newly-acquired businesses and brands; trends and competition in and relevant government policies and regulations relating to China's beauty market; changes in its revenues and certain cost or expense items; and general economic conditions globally and in China. Further information regarding these and other risks is included in the Company's filings with the SEC. All information provided in this press release is as of the date of this press release,and the Company does not undertake any obligation to update any forward-looking statement,except as required under applicable law.

For investor and media inquiries,please contact:

In China:

Yatsen Holding Limited

Investor Relations

E-mail: ir@yatsenglobal.com

Piacente Financial Communications

Hui Fan

Tel: +86-10-6508-0677

E-mail: yatsen@thepiacentegroup.com

In the United States:

Piacente Financial Communications

Brandi Piacente

Tel: +1-212-481-2050

E-mail: yatsen@thepiacentegroup.com

YATSENHOLDING LIMITED

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(All amounts in thousands,except for share,per share data or otherwise noted)

December

31,

December

31,

2023

2024

2024

RMB'000

RMB'000

USD'000

Assets

Current assets

Cash and cash equivalents

836,888

817,395

111,983

Restricted cash

21,248

-

-

Short-term investments

1,218,481

539,130

73,861

Accounts receivable,net

198,851

214,558

29,394

Inventories,net

352,090

386,054

52,889

Prepayments and other current assets

303,841

381,404

52,252

Amounts due from related parties

20,200

9,113

1,248

Total current assets

2,951,599

2,347,654

321,627

Non-current assets

Investments

618,752

664,579

91,047

Property and equipment,net

64,878

74,373

10,189

Goodwill,net

556,567

155,029

21,239

Intangible assets,net

671,396

559,708

76,680

Deferred tax assets

1,375

1,381

189

Right-of-use assets,net

114,348

147,501

20,208

Other non-current assets

27,100

20,642

2,828

Total non-current assets

2,054,416

1,623,213

222,380

Total assets

5,006,015

3,970,867

544,007

Liabilities,redeemable non-controlling interests and shareholders' equity

Current liabilities

Accounts payable

105,691

72,090

9,876

Advances from customers

41,579

19,574

2,682

Accrued expenses and other liabilities

391,217

460,143

63,039

Amounts due to related parties

9,431

28,884

3,957

Income tax payables

17,946

20,088

2,752

Lease liabilities due within one year

45,464

39,409

5,399

Total current liabilities

611,328

640,188

87,705

Non-current liabilities

Deferred tax liabilities

111,591

103,306

14,153

Deferred income-non current

30,556

14,832

2,032

Lease liabilities

67,767

109,526

15,005

Total non-current liabilities

209,914

227,664

31,190

Total liabilities

821,242

867,852

118,895

Redeemable non-controlling interests

51,466

50,984

6,985

Shareholders' equity

Ordinary Shares (US$0.00001 par value; 10,000,000 ordinary shares authorized,

comprising of 6,000 Class A ordinary shares,960,852,606 Class B ordinary shares

and 3,039,147,394 shares each of such classes to be designated as of December 31,2023

and December 31,2024; 2,030,600,883 Class A shares and 666,572,880 Class B ordinary

shares issued as of December 31,2023,2,096,883 Class A shares and 600,880

Class B ordinary shares issued as of December 31,2024; 1,487,546,132 Class A ordinary

shares and 666,880 Class B ordinary shares outstanding as of December 31,

1,234,627,468 Class A ordinary shares and 600,880 Class B ordinary shares

outstanding as of December 31,2024)

173

173

24

Treasury shares

(864,568)

(1,276,330)

(174,856)

Additional paid-in capital

12,260,208

12,273,767

1,681,499

Statutory reserve

24,177

28,147

3,856

Accumulated deficit

(7,345,153)

(8,057,297)

(1,103,845)

Accumulated other comprehensive income

60,200

86,866

11,900

Total Yatsen Holding Limited shareholders' equity

4,135,037

3,055,326

418,578

Non-controlling interests

(1,730)

(3,295)

(451)

Total shareholders' equity

4,133,307

3,052,031

418,127

Total liabilities,redeemable non-controlling interests and shareholders' equity

5,007

YATSENHOLDING LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(All amounts in thousands,per share data or otherwise noted)

For the Three Months Ended December 31,

For the Year Ended December 31,

2023

2024

2024

2023

2024

2024

RMB'000

RMB'000

USD'000

RMB'000

RMB'000

USD'000

Total net revenues

1,072,691

1,148,522

157,347

3,414,774

3,393,414

464,896

Total cost of revenues

(282,548)

(255,536)

(35,008)

(901,455)

(776,236)

(106,344)

Gross profit

790,143

892,986

122,339

2,513,319

2,617,178

358,552

Operating expenses:

Fulfilment expenses

(62,741)

(63,517)

(8,702)

(229,021)

(216,540)

(29,666)

Selling and marketing expenses

(717,439)

(690,584)

(94,610)

(2,230,974)

(2,268,793)

(310,823)

General and administrative expenses

(158,716)

(100,122)

(13,717)

(500,942)

(444,373)

(60,879)

Research and development expenses

(36,851)

(26,345)

(3,609)

(111,698)

(109,287)

(14,972)

Impairment of goodwill

(354,039)

(403,076)

(55,221)

(354,221)

Total operating expenses

(1,329,786)

(1,283,644)

(175,859)

(3,426,674)

(3,442,069)

(471,561)

Loss from operations

(539,643)

(390,658)

(53,520)

(913,355)

(824,891)

(113,009)

Financial income

15,763

20,973

2,873

89,020

86,136

11,801

Foreign currency exchange gain (loss)

6,400

(22,129)

(3,032)

7,218

(20,399)

(2,795)

Income (loss) from equity method

investments,net

4,446

(8,104)

(1,110)

10,122

1,386

190

Other income,net

15,612

18,726

2,565

53,558

44,461

6,091

Loss before income tax expenses

(497,422)

(381,192)

(52,224)

(753,437)

(713,307)

(97,722)

Income tax benefits

2,896

2,388

327

3,210

3,086

423

Net loss

(494,526)

(378,804)

(51,897)

(750,227)

(710,221)

(97,299)

Net loss (income) attributable to non-

controlling interests and redeemable non-

controlling interests

4,011

(5,430)

(744)

5,439

2,047

280

Accretion to redeemable non-controlling

interests

-

-

-

(2,975)

-

-

Net loss attributable to Yatsen's

shareholders

(490,515)

(384,234)

(52,641)

(747,763)

(708,174)

(97,019)

Net loss attributable to ordinary

shareholders of Yatsen

(490,019)

Shares used in calculating loss per share

(1):

Weighted average number of Class A and

Class B ordinary shares:

Basic

2,146,881,745

1,930,413,426

1,426

2,195,818,231

2,025,131

2,131

Diluted

2,131

Net loss per Class A and Class B ordinary

share

Basic

(0.23)

(0.20)

(0.03)

(0.34)

(0.35)

(0.05)

Diluted

(0.23)

(0.20)

(0.03)

(0.34)

(0.35)

(0.05)

Net loss per ADS (20 ordinary shares

equal to 1 ADS) (2)

Basic

(4.57)

(3.98)

(0.55)

(6.81)

(6.99)

(0.96)

Diluted

(4.57)

(3.98)

(0.55)

(6.81)

(6.99)

(0.96)

For the Three Months Ended December31,

2023

2024

2024

2023

2024

2024

Share-based compensation expenses are

included in the operating expenses as

follows:

RMB'000

RMB'000

USD'000

RMB'000

RMB'000

USD'000

Fulfilment expenses

256

237

32

2,055

387

53

Selling and marketing expenses

3,298

2,259

309

23,518

(42)

(6)

General and administrative expenses

39,688

17,443

2,390

46,902

89,941

12,322

Research and development expenses

1,241

356

49

5,027

888

122

Total

44,483

20,295

2,780

77,502

91,174

12,491

(1) Authorized share capital is re-classified and re-designated into Class A ordinary shares and Class B ordinary shares,with each Class A ordinary share being entitled to one vote and each Class B ordinary share being entitled to twenty votes on all matters thatare subject to shareholder vote.

(2) Effective from March 18,the Company changed its ADS to Class A Ordinary Share ratio from one ADS representing four ordinary shares to one ADS representing twenty ordinary shares. The historical and present income (loss) per ADS have beenadjusted retroactively for all periods presented to reflect this change.

YATSENHOLDING LIMITED

UNAUDITEDRECONCILIATIONSOF GAAP AND NON-GAAP RESULTS

(All amounts in thousands,

2023

2024

2024

2023

2024

2024

RMB'000

RMB'000

USD'000

RMB'000

RMB'000

USD'000

Loss from operations

(539,643)

(390,658)

(53,520)

(913,355)

(824,891)

(113,009)

Share-based compensation expenses

44,483

20,295

2,780

77,502

91,174

12,491

Impairment of goodwill

354,039

403,076

55,221

354,221

Amortization of intangible assets

resultingfrom assets and business

acquisitions

15,231

60,447

8,281

54,297

106,385

14,575

Non-GAAP (loss) income from

operations

(125,890)

93,160

12,762

(427,517)

(224,256)

(30,722)

Net loss

(494,526)

(378,804)

(51,897)

(750,227)

(710,221)

(97,299)

Share-based compensation expenses

44,221

Amortization of intangible assets

resulting from assets and business

acquisitions

15,575

Revaluation of investments on the

share of equity method investments

(10,337)

7,386

1,012

(22,324)

(10,019)

(1,373)

Tax effects on non-GAAP

adjustments

(2,635)

(5,421)

(743)

(9,356)

(8,644)

(1,184)

Non-GAAP net (loss) income

(93,745)

106,979

14,654

(296,069)

(128,249)

(17,569)

Net loss attributable to Yatsen's

shareholders

(490,515)

(384,234)

(52,641)

(747,763)

(708,174)

(97,019)

Share-based compensation expenses

44,221

Amortization of intangible assets

resulting from assets and business

acquisitions

14,945

60,079

8,231

53,214

104,853

14,365

Revaluation of investments on the

share of equity method investments

(10,393)

(739)

(9,533)

(1,169)

Accretion to redeemable non-

controlling interests

-

-

-

2,975

-

-

Non-GAAP net (loss) income

attributable to Yatsen's

shareholders

(90,020)

101,209

13,864

(291,713)

(127,623)

(17,484)

Shares used in calculating loss per

share:

Weighted average number of Class A

and Class B ordinary shares:

Basic

2,745

2,049,750,667

2,131

Non-GAAP net (loss) income

attributable to ordinary

shareholders per Class A and

Class B ordinary share

Basic

(0.04)

0.05

0.01

(0.13)

(0.06)

(0.01)

Diluted

(0.04)

0.05

0.01

(0.13)

(0.06)

(0.01)

Non-GAAP net (loss) income

attributable to ordinary

shareholders per ADS (20

ordinary shares equal to 1 ADS)

(1)

Basic

(0.84)

1.05

0.14

(2.66)

(1.26)

(0.17)

Diluted

(0.84)

0.99

0.14

(2.66)

(1.26)

(0.17)

(1) Effective from March 18,the Company changed its ADS to Class A Ordinary Share ratio from one ADS representing four ordinary shares to one ADS representing twenty ordinary shares. The historical and present income (loss) per ADS have been adjusted retroactively for all periods presented to reflect this change.