First Chinese online beauty company files for IPO in the U.S.

Market Monster
Nov 16, 2020

Chinese online beauty company $Yatsen(YSG.US)$ is planning to sell 58.75 million shares at a price point of $8.50 to $10.50, expected to raise $499 million to $619 million.

The company is the parent of popular cosmetics brand Perfect Diary.

Source: perfectdiary
  • Revenue for Yatsen was up 377% year-over-year in fiscal 2019. Net income in 2019 was $11.1 million.
  • Revenue for the first nine months of 2020 was $481.9 million, up 73.20% over the same period in 2019.
  • Perfect Diary saw gross merchandise volume of 100 million RMB on Tmall every month in 2019 and the first nine months in 2020.
  • In the first three quarters of 2018, 2019 and 2020, Yatsen’s e-commerce gross profit margin was 63.5%, 63.6% and 63.1% respectively, which remained stable overall.

Online beauty sales amount to a $38.8 billion market in China. China has 231.5 million millenials and 171.4 million members of Generation Z, many of whom turn to online stores first when shopping.

China has the largest e-commerce penetration in the beauty category at 31.4%. For the United States, the figure was 21.9% in 2019, compared to the global average of 15.9%.

$Yatsen(YSG.US)$ is available in moomoo to apply for an IPO subscription and is expected to be listed on the New York Stock Exchange on November 19.

Source: moomoo

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