On March 6, Yatsen E-commerce (NYSE:YSG) released its fourth-quarter 2023 earnings report. According to the announcement, the company achieved revenue of 10700 million yuan, an increase of 6 over the same period last year7%, exceeding the upper limit of the previous guidance and returning to the growth trajectory. Among them, the skin care business grew steadily, and the Q4 revenue increased by 17% year-on-year6% up to 5500 million yuan, accounting for 51 percent of total revenue7%, the revenue contribution rate hit a record high, and the revenue structure was deeply optimized. With the continuous advancement of strategic transformation, Yatsen's e-commerce has achieved remarkable results in improving quality and efficiency. The company's gross margin improved to 73 in the fourth quarter7%, and the gross margin for the full year 2023 increased to 736%, a record annual gross profit.
Operating cash flow was positive in the quarter, thanks to the company's solid development. According to the financial report, the net cash generated by operating activities in the fourth quarter was about 90.5 million yuan. As of December 31, 2023, the Company had cash, restricted cash and short-term investments totaling 20800 million yuan, the company's management is full of confidence in the future development.
At the same time, with the vision of "Explorer of Health and Beauty in the Era of New Technology", Yatsen E-commerce continues to increase R&D investment and consolidate R&D innovation. According to the financial report, the annual R&D expenses of Yatsen e-commerce in 2023 will be 1100 million yuan, the annual R&D expense rate is 33%, the R&D expense rate ranks first in the world.
Looking forward to 2024, institutional analysts said that the current trend of the Matthew effect in the beauty industry is obvious, and beauty consumption will be concentrated in the leading parts of each leading belt, and functional product innovation with competitive barriers is the core competitiveness of the brand. Huang Jinfeng, Founder, Chairman and CEO of Yatsen E-commerce, said: "After investment and accumulation in recent years, the company has built a global R&D layout and accumulated first-mover advantages in product and channel innovation. ”
Edited by Yue Caizhou.
Proofreading by Liu Baoqing.