Yatsen Holding Limited (NYSE:YSG) Q3 2022 Earnings Conference Call November 22, 2022 7:30 AM ET

Company Participants

Irene Lyu - Head, Strategic Investment and Capital Markets

Jinfeng Huang - Founder, Chairman and Chief Executive Officer

Donghao Yang - Chief Financial Officer

Conference Call Participants

Dustin Wei - Morgan Stanley

Olivia Tong - Raymond James

Operator

Ladies and gentlemen, good day, and welcome to the Yatsen's Third Quarter 2022 Earnings Conference Call. Today's conference is being recorded.

At this time, I would like to turn the conference over to Irene Lyu, Head of Strategic Investment and Capital Markets. Please go ahead.

Irene Lyu

Thank you, Operator. Please note that discussion today will contain forward-looking statements relating to the company's future performance, and are intended to qualify for the Safe Harbor from liability, as established by the U.S. Private Securities Litigation Reform Act. Such statements are not guarantees of future performance, and are subject to certain risks and uncertainties, assumptions, and other factors. Some of these risks are beyond the company's control, and could cause actual results to differ materially from those mentioned in today's press release and this discussion.

A general discussion of the risk factors that could affect Yatsen's business and financial results is included in certain filings of the company with the Securities and Exchange Commission. The company does not undertake any obligation to update this forward-looking information, except as required by law. During today's call, management will also discuss certain non-GAAP financial measures for comparison purposes only. Please see the earnings release issued earlier today for a definition of non-GAAP financial measures and a reconciliation of GAAP to non-GAAP financial results.

Joining us today on the call from Yatsen's senior management team are Mr. Jinfeng Huang, our Founder, Chairman and CEO; and Mr. Donghao Yang, our CFO and Director. Management will begin with prepared remarks, and the call will conclude with a Q&A session. As a reminder, this conference is being recorded. In addition, a webcast replay of this conference call will be available on Yatsen's Investor Relations Web site at ir.yatsenglobal.com.

I will now turn the call over to Mr. Jinfeng Huang. Please go ahead, sir.

Jinfeng Huang

Thank you, Irene, and thank you everyone for participating in Yatsen's third quarter 2022 earnings conference call today. We started the year by launching a five-year strategy outlining our plans to evolve our business and drive the long-term and sustainable growth. With this strategy target as our roadmap, the management team continued to fine-tune our business model. Although negatively impacted by the softening beauty market and the resurgence of COVID-19, our Skincare Brands recorded solid growth in the third quarter of 2022. We have also seen improvements in gross margin, net loss, and non-GAAP net loss on account of our cost optimization plan.