Yatsen Holding Limited

Ladies and gentlemen, good day and welcome to the Yatzen First Quarter 2026 Earnings Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Irene Liu, Vice President, Head of Strategic Investment and Capital Markets. Please go ahead.

Thank you, Operator. Please note that discussion today will contain four losing 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 factor that could affect Yasmin'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 forelooking 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 Yasen's senior management are Mr. Jinso 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 doing a recording. In addition, a webcast replay of this conference call will be available on Jackson's investor relations website at ir.jacksonglobal.com. I'll now turn the call over to Mr. Jinfeng Wang, Principal Head of.

Thank you, Irene. Hello, everyone, and thank you for joining our first quarter 2026 earnings conference call. Going into this year, We delivered top-line growth that met our previous guidance range and demonstrated ongoing resilience of our multi-brand strategy. Our financial and operational highlights this quarter further show that Yasen is navigating the market with a clear strategic vision. Looking at the market environment, according to the National Bureau of Statistics, ability retail sales grew by 5.9% year-over-year, in the third quarter of 2016, reflecting a stable yet highly competitive domestic utility market. Looking closely at the online channels, the combined sales across Tmall, Loin, and JG.com also recorded a single-digit year-over-year growth. Against this market backdrop, our strategic rebalancing has yielded highly encouraging results. Our total net revenues stayed on a steady growth trajectory, growing by 22.5% year-over-year for the first quarter. More importantly, this growth was primarily propelled by the sustained upward momentum of our skincare bread, which experienced another substantial year-over-year growth of 58.5%. So given by this favorable shift toward our skincare offering, Our growth margin continued its year-over-year expansion and reached a historical milestone of 18.2%, reinforcing the structural health of our business model. Throughout the first quarter, we remained strictly committed to our core strategic initiatives. Specifically, we continued to drive R&D-led product innovation, strengthen brand equity across our multi-brand portfolio, and position our business for long-term profitability optimization. In the following session, I would like to share our key progress across each of these three strategic pillars. Our first pillar is driving R&D-led innovation, which remains the ultimate engine behind our sustainable growth. In the first quarter, we consistently set up our R&D investments. With R&D expenses, as a percentage of total net revenues, increasing further to 3.9%. His ongoing commitment allowed us to broaden our scientific initiative. For instance, Dr. Wu launched the fourth Dr. Wu Acne Research Fund project in March, bringing online and offline dermatological experts to tackle a series of specialized research topics. In April, the brand marked another milestone with the release of the white paper on Chinese dermatological research and skin renewal. Leveraging 48 years of clinical effort, time, and skin insights, this publication officially defines a multi-ingredient, multi-target, and a full-layer skin renewal management framework, further solidifying the brand's authority in dermatology. On the product front, Our advanced R&D system has successfully powered a series of highly market-ready solutions. During the first quarter, Delany's new Couture Revelation Cellulary Reviving Cream was an instant hit, selling out soon after its debunk. Inducible expanded its successful PDRN series with the introduction of two new breakthrough products. the age-versa-old sodium DNA collagen hydro-luminous mask, and the age-versa-old anti-wrinkle collagen eye cream. Meanwhile, Yves Laurent also expanded its product portfolio by launching the Renewal Intensive Treatment, designed specifically for the dedicated eye area. These launches underscore our enhanced efficiency in extending existing series into new categories and broader efficacies. Our second pillar is strengthening brand equity through our portfolio, through expert-led communication, and strategic brand equity. In March, Glanick made a high-profile appearance at the AMWC the Aesthetic and Anti-Agent Medicine World Congress in Monaco. This world-class presentation further reinforced Galenic's scientific credentials and solidified its core consumer mile share in cellular-level anti-agent skincare. Furthermore, in April, Galenic announced the appointment of Fan Chenchen as a new brand ambassador, a move that has amplified its brand's resume and consumer awareness. Our third pillar is improving overall profitability. During the first quarter, our selling and marketing expenses as a percentage of total net revenues experienced an increase as a result of both the continued investment in building our core brand and the elevated industry-wide traffic acquisition cost on the Douyin platform. However, our commitment to long-term profitability optimization remains unwavering. More forward, we will dynamically adjust our channel mix, streamline our operational expenses, and unlock greater operational leverage for our fixed costs. This initiative will ensure that our top-line expansion efficiently translates into further margin improvement, paving the way of sustainable profit-centric growth. Finally, I would like to provide an important update regarding our recent financing transaction. Following our announcement on March 11, we are pleased to note that we successfully completed the first change of the private placement of convertible notes and warrants on May 21, 2026. In addition to myself and Chasta Capital, we are delighted to welcome Hugh House as a key participating investor in this offering. This successful closing serves as a powerful treatment attachment to our long-term investors' steady-fast confidence in Jackson's strategic direction and further value. Management shares this exact same confidence, and we are fully energized to deliver sustained value for our shareholders in the quarters to come. With that, I will now turn the call over to our CFO, Donghao Yang, to discuss our financial details.