Mission Statement, Vision, & Core Values of Yatsen Holding Limited (YSG)

You're looking at Yatsen Holding Limited (YSG) and trying to figure out if their strategic narrative-Mission, Vision, and Core Values-actually aligns with their financial pivot. The numbers from the Q3 2025 earnings report defintely suggest a significant shift: total net revenues jumped 47.5% year-over-year to approximately US$140.2 million, driven largely by an 83.2% surge in their Skincare Brands revenue. That's a massive move from color cosmetics to higher-margin skincare, so what does the company's stated purpose-'creating an exciting new journey of beauty discovery for consumers around the world'-actually mean for the bottom line, especially with a gross margin now at 78.2%? Does their focus on innovation and customer-centricity justify the projected Q4 revenue of up to RMB1.49 billion?

Yatsen Holding Limited (YSG) Overview

You're looking for a clear picture of Yatsen Holding Limited, a company that has been shaking up the beauty market, and the core takeaway is its successful pivot. Yatsen Holding, a leading China-based beauty group, has shifted its focus from color cosmetics to higher-margin, science-backed skincare, a move that is defintely paying off in their latest numbers.

Founded in 2016, Yatsen quickly established itself as a digital-first cosmetics provider. Their mission is simple: create an exciting new journey of beauty discovery for consumers globally. The company operates a multi-brand portfolio, including the flagship color cosmetics brand, Perfect Diary, alongside acquired premium skincare brands. For the trailing twelve months (TTM) ending September 30, 2025, the company's total revenue stood at approximately $0.52 Billion USD (RMB 4.07 billion), showing a clear upward trend in sales.

• Perfect Diary: Flagship color cosmetics brand.
• Skincare Brands: Galénic, DR.WU (mainland China), and Eve Lom.
• Current Strategy: Focus on R&D and premium skincare.

Q3 2025 Financial Performance: Skincare Drives Revenue

The financial results for the third quarter of 2025, reported on November 17, 2025, show a strong execution of their strategic shift. Total net revenues for Q3 2025 jumped to RMB998.4 million (approximately US$140.2 million), marking a remarkable 47.5% increase year-over-year. That's a huge surge, and it tells you exactly where the growth engine is: skincare.

Revenue from Skincare Brands was the primary driver, rocketing up by an impressive 83.2% year-over-year to RMB490.8 million (US$68.9 million). This category now accounts for 49.2% of the company's total net revenues, up from 39.6% in the prior year period, showing the pivot is nearly complete. Also, the gross margin improved to 78.2% from 75.9% a year ago, which is a great sign of better cost management and higher-margin product sales.

While the company still reported a net loss, it narrowed significantly by 41.9% to RMB70.4 million (US$9.9 million), and non-GAAP net loss narrowed by 32.8% to RMB51.5 million (US$7.2 million). Here's the quick math: nearly half of the revenue is now from the high-growth, high-margin skincare segment, which strengthens the balance sheet and reduces the loss. For Q4 2025, Yatsen projects total net revenues to be between RMB1.32 billion and RMB1.49 billion, a projected increase of 15% to 30% year-over-year.

Yatsen's Position as an Industry Leader

Yatsen Holding is not just another beauty company; they are establishing themselves as a leader in the evolution of the beauty industry, particularly in China. Their focus is moving beyond simple brand storytelling toward what they call 'scientific leadership' in beauty. This is an important distinction for a company operating in a highly competitive consumer market.

As of mid-2025, the company is positioned among the top ten Chinese beauty enterprises by R&D investment and scientific capability. This commitment to research and development (R&D) is what underpins the success of new products like the PDRN Serum from DR.WU and the No.3 VB Serum from Galénic. They are leveraging data and science to drive product innovation, which is the long-term play for sustainable growth in this sector. To be fair, this R&D focus is the key differentiator in a crowded field. To dig deeper into the company's foundational strategy and how it makes money, you should check out Yatsen Holding Limited (YSG): History, Ownership, Mission, How It Works & Makes Money.

Yatsen Holding Limited (YSG) Mission Statement

You want to know what drives Yatsen Holding Limited's (YSG) strategy, especially given their recent pivot and strong 2025 numbers. The direct takeaway is that their mission is a clear mandate for global expansion and customer-centric innovation, which is defintely paying off in their high-margin skincare segment. The mission statement is: creating an exciting new journey of beauty discovery for consumers around the world.

This mission isn't just a feel-good phrase; it's the strategic compass guiding their brand acquisitions, R&D spending, and direct-to-consumer (DTC) model. It's what connects the mass-market appeal of Perfect Diary with the premium positioning of Eve Lom and Galénic. A mission statement like this is crucial because it informs every capital allocation decision, from investing in a new product line to optimizing their supply chain for better gross margins. We are seeing the results of this focus in their financial performance, which is a key reason why you should be Exploring Yatsen Holding Limited (YSG) Investor Profile: Who's Buying and Why?

Core Component 1: Creating an Exciting New Journey of Discovery

This first component is about product innovation and brand storytelling-it's the 'exciting' part of the mission. For Yatsen Holding Limited, this means consistently launching new products that capture consumer imagination and staying ahead of fast-moving beauty trends in China and globally. It's a high-stakes game of keeping the product pipeline fresh.

The company's commitment to this is measurable in their investment in research and development (R&D). For the second quarter of 2025, R&D expenses stood at 3.3% of total net revenues, a significant spend that fuels new launches. This focus is why their skincare brands, like DR.WU, successfully launched products such as the PDRN Serum in 2025, contributing to the segment's massive growth.

• Launch new hero products like Galénic's No.3 VB Serum.
• Provide products that enhance self-expression and confidence.
• Invest in R&D to maintain a robust product pipeline.

Core Component 2: Empowering Consumers Around the World

Empowerment in the beauty space translates to accessibility, education, and choice. This is where Yatsen Holding Limited's multi-brand strategy shines, offering a spectrum of products from the affordable Pink Bear to the clinical-grade DR.WU. They are giving consumers the tools to define their own beauty goals, not dictating them.

The strategic shift toward higher-margin, premium skincare brands is a direct result of empowering consumers who seek efficacy and quality. Here's the quick math: in the second quarter of 2025, net revenues from Skincare Brands surged by 78.7% year-over-year to RMB581.3 million (US$81.1 million). This segment now represents 53.5% of total net revenues, up sharply from 40.9% a year prior, showing consumers are voting with their wallets for these higher-quality, empowering products.

Core Component 3: Building a Global Beauty Platform for High-Quality Delivery

The final component is the structural ambition: building a 'global beauty platform' that can consistently deliver. This requires operational excellence, a strong portfolio of brands, and a dedication to quality that drives profitability. The platform approach allows Yatsen Holding Limited to reach customers directly both online and offline, a crucial capability in the Chinese market.

We see the financial results of this operational discipline in their gross margin, which increased to 78.2% in the third quarter of 2025, up from 75.9% in the prior year period. This improvement is driven by the greater contribution of their higher-gross-margin skincare products. Also, the company's total net revenues for Q3 2025 grew by a significant 47.5% to RMB998.4 million (US$140.2 million), demonstrating the platform's ability to scale and execute. This platform is what lets them manage a diverse portfolio like Perfect Diary, Little Ondine, and Eve Lom effectively.

Yatsen Holding Limited (YSG) Vision Statement

You're looking for the forward-looking strategy, the North Star, for Yatsen Holding Limited, and honestly, their formal mission-creating an exciting new journey of beauty discovery for consumers around the world-is a great starting point, but the real vision is found in their actions and financials. I've spent two decades dissecting companies like this, and what Yatsen is doing right now tells you more than any corporate boilerplate.

The core of their near-term vision, as of late 2025, is a strategic pivot: moving aggressively from a color cosmetics focus to a high-margin, science-backed skincare powerhouse. This shift is defintely the critical driver behind their recent financial performance, where they are actively narrowing their net loss and strengthening their gross margin.

Creating an Exciting New Journey of Beauty Discovery

This mission isn't just about selling lipstick; it's about customer-centricity (prioritizing customer needs) and leveraging a direct-to-consumer (DTC) model to own the entire journey. Their core value of customer satisfaction is tied directly to their ability to use platforms like social media to gather real-time data and launch products quickly. It's a fast-fashion model applied to beauty.

In the third quarter of 2025, this focus translated to a massive 47.5% year-over-year increase in total net revenues, which hit RMB 998.4 million (approximately US$140.2 million). That's a huge jump, and it shows the discovery model is working. The company is spending money to make money, but the gross margin is holding strong at 78.2%, which is a sign of good product-mix management and cost control. That's a solid margin in this industry.

Building a Resilient, Multi-Brand Portfolio

The second pillar of their vision is building a brand portfolio that can withstand market fluctuations-a resilient mix of color cosmetics (like Perfect Diary) and premium skincare (like Galénic, DR.WU, and Eve Lom). The strategy is clear: acquire established, high-margin skincare brands to balance the high-volume, lower-margin color cosmetics business.

The numbers here are the most compelling part of the story. Skincare brands are the engine of growth, with net revenues surging 83.2% year-over-year in Q3 2025 to RMB 490.8 million (about US$68.9 million). Here's the quick math: skincare now accounts for 49.2% of their total net revenues, up from 39.6% a year ago. That's a significant, deliberate re-weighting of the portfolio. This brand diversification is their hedge against the intense competition in the mass-market makeup space.

• Skincare revenue: Up 83.2% YOY.
• Skincare share of revenue: Now nearly 50%.
• Portfolio shift drives margin stability.

Accelerating Innovation and Sustainable Growth

Yatsen's vision for the future hinges on innovation, which they define by their core value of R&D investment. They aren't just rebranding; they are developing proprietary technology and scientific capability. They've invested over RMB 600 million in R&D since their NYSE listing, consistently maintaining R&D spending above 3% of annual revenue.

This investment is starting to pay off on the bottom line. The net loss for Q3 2025 narrowed by 41.9% to RMB 70.4 million (US$9.9 million). That's a huge improvement from the prior year. The company is projecting total net revenues for Q4 2025 to be between RMB 1.32 billion and RMB 1.49 billion, representing a growth of 15% to 30%. What this estimate hides is the continued pressure on selling and marketing expenses, which remain high, but the path to profitability is clearer than it was a year ago. They are using their cash and short-term investments, which stood at RMB 1.16 billion (US$162.6 million) as of September 30, 2025, to fund this growth and innovation pipeline.

Yatsen Holding Limited (YSG) Core Values

You're looking for the bedrock principles that drive Yatsen Holding Limited's (YSG) strategy, and honestly, the numbers tell the story better than any marketing slogan. The company's mission is clear: creating an exciting new journey of beauty discovery for consumers around the world. Their core values-Customer-Centricity, Innovation, and a sharp focus on Sustainable Growth-are the levers they use to execute that mission, especially as they pivot toward higher-margin products.

This isn't about vague corporate ideals; it's about where they put their money and how they've managed to narrow their net loss by 41.9% in the third quarter of 2025. That's a defintely a clear action, not just a goal.

Customer-Centricity

Customer-Centricity, or prioritizing customer needs and feedback, is the engine of Yatsen's shift. You see this value in their aggressive expansion of the Skincare Brands segment, which is where the premium, science-backed demand is strongest. The market is telling them what it wants, and they are listening.

The financial impact of this focus in Q3 2025 is stark: net revenues from Skincare Brands surged by an incredible 83.2% year-over-year, reaching RMB490.8 million (approximately US$68.9 million). Skincare now makes up 49.2% of total net revenues, a massive jump from the prior year, showing a successful pivot to meet evolving customer preference for efficacy and quality. Here's the quick math: nearly half their revenue now comes from the segment they've strategically prioritized.

• Skincare revenue up 83.2% year-over-year.
• Skincare now 49.2% of total net revenues.
• Focus on premium, high-efficacy brands like DR.WU and Galénic.

Innovation

Innovation isn't just a buzzword; it's the investment Yatsen makes to differentiate its products, which ultimately drives that higher gross margin. They know that in the competitive beauty space, you must continually introduce new and better products, so they've kept the pedal down on research and development (R&D).

In the third quarter of 2025, R&D expenses stood at RMB39.8 million, representing 4% of total net revenues, an increase from the prior year period. This investment directly fuels the launch of hero products like the PDRN Serum from DR.WU and the No.3 VB Serum from Galénic, which are critical for capturing market share and justifying premium pricing. This commitment to product science is what keeps their brands relevant.

Commitment to Sustainable Growth

A commitment to Sustainable Growth translates to a focus on operational efficiency and improved profitability, not just chasing top-line revenue at any cost. This is the value that speaks loudest to investors, and Yatsen has made real progress here in 2025.

Total net revenues for Q3 2025 were RMB998.4 million (US$140.2 million), a strong 47.5% increase. But more importantly, the gross margin improved to 78.2% from 75.9% in the prior year, driven by the shift to higher-gross-margin products. This focus on margin control and operational streamlining helped narrow the net loss to RMB70.4 million (US$9.9 million) in Q3 2025. Looking ahead, their Q4 net revenue guidance of between RMB1.32 billion and RMB1.49 billion projects a healthy growth rate of 15% to 30%, showing confidence in a profitable trajectory. For a deeper dive into the mechanics of this financial recovery, you should read Breaking Down Yatsen Holding Limited (YSG) Financial Health: Key Insights for Investors.