- General
- November 3, 2020
- 5 minutes read
China’s Yatsen Files For US IPO
“New York Stock Exchange” by Mike_fleming is licensed under CC BY 2.0 Yatsen Holding, the parent company of Chinese cosmetics brand Perfect Diary,…
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| “New York Stock Exchange” by Mike_fleming is licensed under CC BY 2.0 |
Yatsen Holding, the parent company of Chinese cosmetics brand Perfect Diary, has submitted a formal filing to go public with the US Securities and Exchanges Commission (SEC). The company is looking to list American Depositary Shares on the New York Stock Exchange under the symbol “YSG”. Yatsen is best-known for its Perfect Diary cosmetics brand which has grown to be one of China’s biggest in just four years after its founding.
Yatsen is one of the fastest-growing cosmetic brands from China, currently with 200 physical stores across the country in addition to a very strong online business. The company has three major brands; Perfect Diary, Little Ondine, and Abby’s Choice.
In 2019, Yatsen recorded the equivalent of $446 million in revenue, nearly five times its revenue in the previous year. The company had net income of $11.1 million in 2019 but has, however, reported a net loss of $170 million in the first nine months of this year on revenues of $481.9 million. It seems the coronavirus pandemic heavily weighed on Yatsen’s physical retail business as China widely shut down stores to curb the spread of the pandemic in the earlier months of this year.
Yatsen says it intends to use the funds raised from its IPO to fund its expansion. The company’s IPO is being managed by major American and Chinese investment banks including Goldman Sachs, Morgan Stanley, and China International Capital Corporation (CICC).
