Recently, Chinese beauty company Yatsen Holding Limited (Yatsen) released its latest financial results for Q2 2025. During the reporting period, the company recorded revenue of RMB 1.09 billion ($152.5 million), up 36.8% year-on-year, exceeding its previous performance guidance.
Both its color cosmetics and skincare businesses achieved growth. Skincare revenue surged 78.7% year-on-year to RMB 581.3 million ($81.3 million), accounting for 53.5% of total revenue, compared with 40.9% in the same period last year. color cosmetics brand revenue grew 8.8% year-on-year. Meanwhile, Non-GAAP profit reached RMB 11.5 million.
According to the report, Yatsen achieved double-digit growth across multiple metrics, including revenue, gross profit, and Non-GAAP net profit, with Non-GAAP net profit turning positive at RMB 11.5 million ($1.6 million). In the first half of this year, Yatsen’s flagship color cosmetics brand Perfect Diary ranked first on Taobao’s list of Chinese domestic beauty stores, while its premium brand Galénic repeatedly entered Douyin’s Beauty Top 20 ranking.
Behind Yatsen’s rapid and high-quality growth is its long-term “R&D-driven” strategy, supported by continuous R&D investment and a global scientific research system.
Financial data shows that in Q2 2025, Yatsen’s R&D expenses reached RMB 36.12 million ($5 million), up 21.7% year-on-year, with an R&D expense ratio of 3.3%. Since 2020, the company has invested over RMB 600 million ($84 million) in R&D, with its R&D expense ratio staying above 3% for three consecutive years, placing it firmly among the global industry leaders. Yatsen’s founder, chairman, and CEO David Huang (Huang Jinfen) stated in an interview: “Over the next five years, we will continue to allocate more than 3% of revenue to R&D, building stronger technological barriers.”
Mr. Huang said: “With the vision of becoming a world-class pioneer in beauty innovation, in Q2 2025 we remained focused on strategic execution. Leveraging enhanced R&D capabilities, we are committed to delivering high-quality products and building strong brand equity. Our core products—including Galénic Brightening Microcrystal Mask, Dr. Wu Revitalizing Toner Essence, and Perfect Diary Bright Soft-Focus Setting Powder—collectively drive sustained growth. Looking ahead, we will firmly execute our R&D-driven strategy, which we believe will further strengthen our leadership in the beauty industry.”
Yatsen’s director and CFO, Donghao Yang, added: “Driven by the 618 Shopping Festival, we achieved steady year-on-year growth in the second quarter. Specifically, color cosmetics brands returned to a growth trajectory, while skincare brands maintained strong performance. As operating leverage takes effect, coupled with ongoing optimization of efficiency and marketing spend, the company is steadily advancing toward its goal of profitable growth.”
