YSG.US Q3 revenue reached Rmb677mn, with R&D expenses accounting for 3.7%
1min read Zhitong Finance App learned that on November 20, YSG (NYSE) released its 2024 third-quarter financial report. According to the announcement, the Company achieved revenue of RMB677 million in the third quarter, of which the net revenue of its three skincare brands, Clarisonic, Darcey, and EVE LOM grew by 10.5% YoY, contributing to the stable growth of its skincare business, achieving revenue of RMB268 million, up 3.6% YoY. The revenue of the skincare segment accounted for 39.6% of the total revenue, achieving 10 consecutive quarters above 30% of the total revenue. Thanks to the optimization of revenue structure, the Company achieved a gross margin of 75.9%, up 4.5 percentage points YoY. According to the earnings guidance, the Company is expected to achieve YoY growth in total revenue in the fourth quarter.
As a new generation of Chinese cosmetics group, YSG always regards R&D capability as the core strategy for its future growth and product differentiation, persisting in high R&D investment and improving product technology content. According to the financial report, the Company invested RMB25.34 million in R&D in the third quarter, accounting for 3.7% of revenue, and its R&D expense ratio continued to be at the first-tier level in the world. The R&D expense in the first three quarters of 2024 exceeded RMB80 million.
Under the pressure of overall consumption in the third quarter of the cosmetics industry, YSG deepened its strategic transformation, focusing on quality improvement and efficiency enhancement, and its self-sustaining ability steadily strengthened, with its losses continuing to narrow, showing strong development resilience. Looking ahead to future development, YSG founder, chairman, and CEO Huang Jinfeng said: "The Company adheres to the long-term value orientation, deepens its core business, and is currently optimizing resource investment in an orderly manner to improve operating efficiency. At the same time, we continue to increase R&D investment to drive product iteration with technological innovation and meet the upgrading of market demand. Regardless of changes in the external environment, we always focus on excellent products and user experience, believing that such persistence will drive future growth and create greater value for users."