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Yatsen Holding Limited (YSG) Q4 2020 Earnings Call Transcript

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YSG earnings call for the period ending December 31, 2020.

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Yatsen Holding Limited (YSG 8.51%)
Q4 2020 Earnings Call
Mar 11, 2021, 7:30 a.m. ET

Contents:

  • Prepared Remarks
  • Questions and Answers
  • Call Participants

Prepared Remarks:


Operator

Ladies and gentlemen, good day and welcome to the Yatsen fourth-quarter and full-year 2020 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 -- Head of Strategic Investment and Capital Markets

Thank you, operator. Please note that the session 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 the outcome of the 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.

For a definition of non-GAAP financial measures and the reconciliation of GAAP and non-GAAP financial results, please see the earnings release issued earlier today. Joining us today on the call from Yatsen senior management 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 website had at ir.yatsenglobal.com. I will now turn the call over to Mr.

Jinfeng Huang. Please go ahead.

Jinfeng Huang -- Founder, Chairman, and Chief Executive Officer

OK. Thank you, Irene. And thank you, everyone, for participating in Yatsen's inaugural earnings conference call today. So, 2020 was an exciting year for Yatsen as we make great strides across our business and achieved numerous ultimatums.

So, one of the most significant highlights for the year was our successful listing on the New York Stock Exchange on November 19 last year. So, marking the start of our new journey as a public company. So, on behalf of Yatsen's employees and myself, I would like to extend our sincerest gratitude and appreciation to all of your longtime and new shareholders who continue to support us. Today, for the first time as a public company, we are pleased to present you with our solid operating and financial performance for the fourth quarter and a full year of 2020.

So, throughout the year, we leverage our part of the process to further fortify our leading position in color cosmetics potency in millennial customers. So, Yatsen's firm commitment to put you -- to product innovation and development, enhancing brand portfolio and product offerings, and strengthening ties with customers through both online and offline channels, positioned us as a unique and competitive player in China's fast-growing beauty industry. So, as a result for the full year, we grew our total net revenues by 7.26% year over year to RMB 5.2 billion, and have increased our gross sales by 72.4% from RMB 3.5 billion in 2019, to RMB 6.1 billion in 2020. In an extension of the robust momentum we saw throughout the year, fourth-quarter total net revenue increased 71.7% year over year to RMB 2 billion.

And our gross sales climbed 73.3% year over year to RMB 2.3 billion. So, our quarter results are a testament to all of our ability to quickly grow our business as evidenced by the accelerated expansion of our flagship brand, Perfect Diary, and the rapid growth witnessed by all other brands including Little Ondine and Abby's Choice, soon after being introduced to our portfolio. For the strength across our brand portfolio demonstrated our ability to incubate and to scale brands and assured us that we are on the right track as we continue to press forward. This number also displays the effects -- the effectiveness of our disruptive B2C model, which enabled us to consistently deliver innovative products and the personalized services that deepen customer engagement.

So, the growing popularity of homegrown Chinese beauty brands is creating a great opportunity for us as all brands target gen Z and millennials, the golden cohort of China's beauty industry. So, our evolving product line is steadily gaining traction among young consumers and has seen substantial growth. So, in the fourth quarter, the number of B2C customers reached not a record high of 14.4 million and this number came in at 32.2 million for the full year. So, this represents an impressive year-over-year gain of 41% and 38% respectively.

So, color cosmetics are the foundation of our business and an abundant contributor to revenue. So, having said that, we further widened our product variety and offers during the fourth quarter with more emphasis on quality innovation and uniqueness. So, we deepen our wage in the skincare segment with the acquisition of Galenic and iconic premium French skincare brands from Pierre Fabre and the masstige Chinese skincare brand, which is the leading medical skincare brand known for its highly effective products, targeting various sensitivities in Asian skin. We also entered a strategic partnership with Sensient Technologies.

A partnership that is enhancing our R&D capabilities for innovative colors and new materials for color cosmetics. So, boosting quality control for raw materials and amplifying the use of technology to evolve with current challengers in the color cosmetics industry. So, leveraging our disruptive B2C model and core platform capabilities, we are working toward building a multi-brand portfolio that drives a broader part of the selection and adjusts the needs of more customers. With this vision in mind, I would like to review some of our recent activities and unpack upcoming initiatives for 2021 and beyond.

So, on the back of the success of our existing brands, we plan on introducing some more brands to self-incubation and acquisitions in target market segments where we see considerable room for growth. Our ideal portfolio will consist of diversified brands with varying marketing -- market positioning from mass market to high end as we seek to attract a wide spectrum of consumers. We are also proactively pursuing strategic investments acquisitions and collaboration both domestically and overseas. As announced earlier this month, we recently acquired the prestigious skincare brand Eve Lom from Manzanita Capital.

So, with the brand's multi-award-winning product range, our exceptional e-commerce capabilities and a demonstrated strong record of innovation, we are confident that we will further accelerate Eve Lom's growth in the global market. So, to close, before I hand it over to Donghao, China's beauty market has enormous potential waiting to be unleashed. So, our customer-centric value proposition, disruptive B2C business model, and a strong R&D capabilities, uniquely -- uniquely positioned Yatsen to play a leading role in the country's evolving beauty industry. So, looking ahead, we remain committed to redefining the landscape of Chinese beauty even as we engage and grow with the next generation of consumers to provide them with a new journey of beauty discovery.

So, thank you, everyone. With that, I would now turn the call over to CFO, Donghao Yang, to discuss our financial performance.

Donghao Yang -- Chief Executive Officer and Director

Thank you, David, and hello, everyone. We finished the fourth quarter of 2020 with a set of solid financial results. Our healthy and top-line growth reflects the strong performance we achieved across our brand portfolio and demonstrates the deep market appeal of our product, the success of our growth strategy, and our ability to skillfully execute our operational plans. In an effort to scale our brand and expand our portfolio, profitability was impacted during the quarter as a result of increased selling and marketing expenses as well as general and administrative expenses.

While our gross margin increased to 66.3% in the quarter, compared with 62.7% in the same period last year. 2020 was a pivotal year for Yatsen and the beauty industry as a whole, and our efforts in product innovation and development are paying off. As we move deeper into 2021, we remain committed to our strategy of further growing our product offering customer base and revenue, which we firmly believe will lay a solid foundation for profitability in the long run. Now, moving on to our quarterly financial highlights.

Before I get started, I would like to clarify that all financial numbers presented today are in RMB and all percent changes refer to year-over-year changes unless otherwise noted. Total net revenues for the fourth quarter of 2020 increased by 71.7% to RMB 2 billion, from RMB 1.1 billion for the fourth quarter of 2019, primarily attributable to the growth in sales volume of our beauty products driven by increases in the number of customers during the same period. Growth profit for the fourth quarter of 2020 increased by 81.6% to RMB 1.3 billion from RMB 716.3 million for the fourth quarter of 2019. Total operating expenses for the fourth quarter of 2020 were RMB 2.8 billion, compared to RMB 644.8 million for the fourth quarter of 2019.

As a percentage of total net revenues, total operating expenses increased to 144.5% from 56.5% in the prior-year period. Procurement expenses for the fourth quarter of 2020 were RMB 144.7 million, compared to RMB 113.2 million for the fourth quarter of 2009. The increase was primarily due to one, an increase in warehousing, shipping, and handling expenses, driven by the growth in sales volume of our beauty products during the same period. And two, share-based compensation expenses recognized upon the occurrence of IPO according to U.S.

GAAP. As a percentage of total net revenues, fulfillment expenses decreased to 7.4% from 9.9% in the prior-year period. Selling and marketing expenses for the fourth quarter of 2020 were RMB 1.4 billion, compared to RMB 446.3 million for the fourth quarter of 2019. The increase was primarily due to, one, an increase in advertising, marketing, and brand promotion costs; two, an increase in expenses incurred during the develop -- development of experience stores; and three, share-based compensation expenses recognized upon occurrence of IPO according to U.S.

GAAP. As a percentage of total net revenues, selling and marketing expenses were 70.3%, compared to 39.1% in the prior-year period. General and administrative expenses for the fourth quarter of 2020 were RMB 1.3 billion, compared to RMB 71.9 million for the fourth quarter of 2019. The increase was primarily due to, one, an increase in personnel costs; and two, recognized expenses upon the occurrence of IPO according to U.S.

GAAP. As a percentage of total net revenues, general and administrative expenses were 65.6%, compared to 6.3% in the prior-year period. Research and development expenses for the fourth quarter of 2020 were RMB 25.6 million, compared to RMB 13.4 million for the fourth quarter of 2019. The increase was primarily due to, one, an increase in personnel costs; and two, recognized share-based compensation expenses upon occurrence of IPO according to U.S.

GAAP. As a percentage of total net revenues, research and development expenses were 1.3%, compared to 1.2% in the prior-year period. Loss from operations for the fourth quarter of 2020 was RMB 1.5 billion, compared to income from operations of RMB 71.5 million for the fourth quarter of 2019. Non-GAAP loss from operations for the fourth quarter of 2020 was RMB 290.1 million, compared to non-GAAP income from operations of RMB 90 million for the fourth quarter of 2019.

Net loss for the fourth quarter of 2020 was RMB 1.5 billion, compared to net income of RMB 46.2 million for the fourth quarter of 2019. Non-GAAP net loss for the fourth quarter of 2020 was two -- RMB 287.4 million, compared to non-GAAP net income of RMB 64.8 million for the fourth quarter of 2019. Net loss attributable to Yatsen's ordinary shareholders per diluted ADS for the fourth quarter of 2020 was RMB 4.04, compared to net income attributable to Yatsen's ordinary shareholders per diluted ADS of RMB 0.10 for the fourth quarter of 2019. Non-GAAP net loss attributable to Yatsen's ordinary shareholders per diluted ADS for the fourth quarter of 2020 was RMB 0.73, compared to non-GAAP net income attributable to Yatsen's ordinary shareholders per diluted ADS of RMB 0.16 for the fourth quarter of 2019.

As of December 31, 2020, the company has cash and cash equivalents and restricted cash of RMB 5.7 billion, compared to RMB 676.6 million as of December 31, 2019. For the quarter ended December 31, 2020, net cash used in operating activities was RMB 362.1 million. Looking at our business outlook for the first quarter of 2021, we expect our total net revenues to be between RMB 1.37 billion and RMB 1.42 billion, representing a year-over-year growth rate of approximately 35% to 40%. This forecast reflects our current and preliminary view on the markets and operational conditions, which are subject to change.

With that, I would now like to turn the call to Q&A.

Questions & Answers:


Operator

Yes. Thank you. We will now begin the question-and-answer session. [Operator instructions] At this time, we will pause momentarily to assemble the roster.

And the first question comes from Christine Cho with Goldman Sachs.

Christine Cho -- Goldman Sachs -- Analyst

David and Dong -- Donghao, congratulations on your first earnings call. I have two quick ques -- questions. One, could you give us some kind of your key assumptions behind your guidance for the next quarter? And secondly, I would love to get an update on the Perfect Diary skincare expansion plans, and also with all the acquisitions of Galenic and Eve Lom and some of the skincare brands, how do you see the skincare mix evolving in the long run? Thank you.

Donghao Yang -- Chief Executive Officer and Director

Christine, sorry, I -- I didn't quite get your first question. So you want us to provide some color behind the -- the Q1 guidance or what?

Christine Cho -- Goldman Sachs -- Analyst

Yes. Yes.

Donghao Yang -- Chief Executive Officer and Director

So, I'm sorry, what do you mean by color? Do you mean this -- the guidance -- is the guidance [Technical difficulty] 35% to 40%. I'm sorry, I got confused.

Christine Cho -- Goldman Sachs -- Analyst

Yes, is there some market conditions that you're looking at, what kind of gross you are looking at for the category as a whole? Something, you know, if the FX rate you mentioned at 6.52, but what are some of the things -- let me phrase it this way. What are some of the key factors that could be very important to looking into first quarter?

Donghao Yang -- Chief Executive Officer and Director

Well, again, you know, I think we're -- we -- we still continue to execute our, you know, strategies in terms of, you know, one, you know, our existing brand, you know, Perfect Diary, Little Ondine, and ABC. You know, we continue to grow those brands. And two, you know, we have, you know, acquired a, you know, a number of new brands. And, you know, and we're currently focusing on the integration of those new brands into our existing, you know, business and operations.

And but -- but, you know, in Q1, you know, the contribution, you know, in terms of revenue from those newly acquired brands is so very limited. But going into, you know, Q2 and Q3, Q4, the later part of this year, you know, we do expect, you know, increasing contributions, you know, from those new brands.

Operator

Thank -- thank you.

Donghao Yang -- Chief Executive Officer and Director

Wait, we thought that the -- the -- the second question the answer.

Christine Cho -- Goldman Sachs -- Analyst

Yeah, yeah.

Donghao Yang -- Chief Executive Officer and Director

Go ahead. Go ahead.

Jinfeng Huang -- Founder, Chairman, and Chief Executive Officer

So for the -- for the Perfect Diary skincare expansion, I think -- because right now, we are rolling out the -- the -- the skincare products in our -- our offline stores. And also we have some main -- the product line coming in the middle of this year. So -- so I believe -- so we see our con -- consistent commitment in expanding the skincare, especially we leveraged the -- the various lux brand equity. So we-- we believe the long-term-wise then that -- that the skincare will contribute a portion of the Perfect Diary's the -- the growth there.

And just to build on the -- the -- for the -- for the Q1 like the kind of the specialization and also well. If you look at the -- for our existing brand and most of the new product launches, you should be modeling Q1. And so there would be more new products and even new brands coming out to be launched after the Q1. Yup, that's it.

Christine Cho -- Goldman Sachs -- Analyst

Thank you.

Operator

OK. Thank you. And the next question comes from Dustin Wei with Morgan Stanley.

Dustin Wei -- Morgan Stanley -- Analyst

Thanks, management, for the question opportunity. So I think -- I think my first question is still related to the guidance of the 35% to 40% year on year. I kind of think of that, you know, first-quarter '20 even for the online business was, you know, slightly or -- or -- or, you know, meaningfully impacted by COVID. So there's sort of a little low base effect there.

And yet, we have this guidance. So not sure if we can talk about the breakdown by brand or some of dynamic for online-offline, like, for example, if we think like 35% to 40% sales growth for the full com -- full company, then what's the growth that we should look for for the Perfect Diary for example, or what's the growth for online? Just try to -- try to get a sense about that. Management is a little bit too conservative or this is a reasonable guidance? And then if -- if we are kind of looking for slightly slower growth, is that some of the strategy change here that management think for the existing brands? Company will need to focus more on the profitability or -- or sort of lower loss ratio and then focus more on the newer brands. So that's sort of related to I guess the first-quarter guidance and some of the potential strategies change.

I guess the second question is that when we think about the more premium brand like Galenic or Eve Lom, are -- are they the brands that are going to be generating the profitable growth or they -- company will use the similar sort of methodology to really drive the very strong sales growth in that, but this brand yet in the short term will be loss making? Third question is related to our I guess the balance sheet and the cash. So I -- I think for 2021 if we assume company we still have some loss and the working capital needed for expanding the business and the potential M&A, so what -- what kind of the cash consumption or cash burn that you wish to look for for -- for the end of 2021? Thank you very much.

Donghao Yang -- Chief Executive Officer and Director

Well, thank you for the -- for the question. Let me first try to take some of your questions. So first of all, in the last year, actually Q1 was not a low base, especially in -- in our business. Maybe some of the other businesses, you know, they saw the impact of the COVID-19 a bit earlier.

But for us, you know, Q1 last year, we saw, you know, 120% year-over-year growth. So it was a very strong quarter in our minds. So the -- the impact from COVID-19 started to hit us actually from Q2 and even until maybe in some part of the China today. Cause, as you know, in the last few months in some parts of the country, especially in -- in the -- in the northern part of the country, you know, COVID-19 came back.

And in some of the cities, you know, offline stores were -- were -- were closed again and some of our stores were -- were -- were impacted too. So we're not trying to be conservative in providing the guidance. But again, as we mentioned earlier, in Q1, you know, some of the new products for existing brands like Perfect Diary and Little Ondine, you know, will not be months until Q2. And the contribution to our revenue from the newly acquired brands, you know, will not -- will not present themselves -- will not sell themselves in our financials, you know, starting from Q2.

You know, currently, you know, we are busy, you know, trying to integrate Galenic and -- and the other Chinese brands into our operations and we haven't even closed -- actually closed. We find the SP8 for Eve Lom, that's why, you know, we had to -- to close the deal, but it will take us another couple of weeks, you know, to actually close the deal. And the, you know, consolidation of Eve Lom numbers into our financials, you know, will start only, you know, from the beginning of Q2. So, we believe that the growth rate of our overall business will start to come back or pick up, you know, starting from Q2 compared to Q1.

That's all right -- all right. This Q1, growth rate year over year is representative of, you know, the -- the growth rate for the full year. So, your second question, you know, I -- I'll -- OK.

Irene Lyu -- Head of Strategic Investment and Capital Markets

Yeah. And then -- yeah. And that's it for your second question, I think it's relating to, you know, the strategy for new brands and existing brands. So, actually, when we are determining a brand strategy, the company will actually look at the brand development stage and cycle instead of whether the brand is new or existing.

So, for example, you know, for our first brand, Perfect Diary, if we identify good growth opportunities in the new category or new offering will not hesitate to implement a growth strategy by investing -- continue to invest in sales and marketing to further view the brand equity and increase customer awareness. So, basically, when we look at our brand portfolio in the long term, we are going to launch more brands through a combination of self-incubation and also M&A. But even for M&A, it's not only a pure, you know, aggregating all revenues together to increase the overall group-level sales. But rather, we're very good at growing the brand that we acquire.

Basically, growing the top line, increase the market share. So, basically in the long term, we are still very -- right now, we're still there focusing on top-line growth regardless of whether it's new, existing. But rather, at a -- looking at the grand stage and also growing [Inaudible]

Donghao Yang -- Chief Executive Officer and Director

Yeah. Your third question is actually regarding our cash burn this -- this year. All right, I can only talk about our operating cash, you know, flow because you can never plan ahead of time, you know, your next acquisition activity. So, this year as we -- we explained to, you know, our investors, you know, it's still -- it's going to be another loss-making year because our current focus is on top-line growth.

So, it's going to be another -- a negative operating, you know, cash flow year for us. But hopefully, next year, you know, we're going to be able to break-even in our bottom line. And so, you know, our -- our, you know, cash flow situation.

Dustin Wei -- Morgan Stanley -- Analyst

Got it. Thank you very much.

Operator

[Operator instructions] And the next question comes from Louise Li with Bank of America Securities.

Louise Li -- Bank of America Securities -- Analyst

Hi, David. Hi, Donghao. Thank you for taking my question. My first question is since we did the fourth-quarter guidance, so for the full year, can we use it -- so -- so, we are expecting accelerating growth in the -- from Q2 through -- through -- through the end of the year, right? So, how should we look at the full-year growth rates and if it's going to accelerate from the second quarter? So, what is the key growth driver behind this? Is it should -- it should like our flagship -- flagship brand Perfect Diary or our newly developed -- self-developed brands like Little Odine and Abby's Choice, or the key growth -- or the key contribution from that growth should come from the newly acquired brands? So, this is my first question.

My second question is actually, could you give us more color on the newly acquired brands, particularly the Eve Lom. So, how big is it as for now? So, what is our strategy to grow the newly acquired brands? I -- I believe that most of this acquired brands are skincare. So, are we trying to capture the sales from the skincare brands from the existing customer base, or are we -- we -- we actually target -- target to extend the customer base on to -- to the new customers. Because clearly, they have a different brand positioning, the Eve Lom and Galenic are more premium.

So -- so, what is our strategy? Thank you.

Jinfeng Huang -- Founder, Chairman, and Chief Executive Officer

Thank you for your question. For your first question, you know, we do not provide full-year guidance, you know, for our top-line growth. But I said earlier -- as I said earlier, you know, starting from Q2, you know, we may see some, you know, pick up on our growth rate because, you know, as I've pointed earlier, you know, first of all, you know, Q1 last year was -- was a very strong quarter. And Q1 this year, you know, our business, especially offline business still got hit by the COVID-19 situations in some parts of the country.

And two, you know, our newly acquired brands, you know, haven't started contributing to our top line. Starting from Q2, you know, we're going to see some of that. And -- and three, you know, when you look at, you know, our existing brands, you know, we do have plans to launch new, you know, products or product categories. For example, Perfect Diary, you know, we're going to be launching, you know, for example, male products in the -- in Q2 or Q3 this year.

So, those will be the drivers for the -- for our top-line growth for the, you know, remaining three quarters of the year. Your second question, yeah, you're absolutely right. You know, the newly acquired brands are -- are mostly skincare brands like Galenic, Eve Lom, and -- and another Chinese brand. And, you know, two of these brands at least, Eve Lom and Galenic are actually positioned as, you know, prestige brands.

And they would be very difficult for us to sell them to our existing customer base of Perfect Diary because they're just in totally different market segments. But again, I think, you know, we have built our core capabilities in terms of our supply chain, R&D capabilities, and data-driven product capability. And also, you know, marketing through social media. So, you know, by leveraging those core, you know, operational capabilities, you know, we believe that we will be successful in, you know, launching or relaunching those newly acquired brands.

Operator

OK. Thank you. And the next question comes from Kevin Zhang with Aristotle Research.

Kevin Zhang -- Aristotle Research -- Analyst

Thank you for taking my questions, Huang [Foreign language], Yang [Foreign language], and Irene. Congratulations on a very strong earnings results. I have two quick questions. The first one is that things YSG have already built a -- a brand portfolio with different categories and price positioning.

So, how do we make best use of our very large user base to cross-sell. Because we, you know, we have very large online follower base and membership. So, what is our multi-brand operation strategy? The second question is about the newly acquired brands, Galenic and Eve Lom. So, what is our strategy on the post-acquisition integration? How to deal with their existing team and overseas distributors' network? Thank you.

Donghao Yang -- Chief Executive Officer and Director

So, thank you for the question. So, going back to the first one, how -- so when we're expanding into the multi-brands and I -- I guess the -- so, we -- we -- we can leverage like our existing like customer base and also our organization capabilities. So, going back to the link sale card, I believe -- so, for the new brands we acquired, so the growth usually coming from two parts. One part is about like we can leverage existing like the -- the capacity for customer base to -- to either test the product or to -- to test the brand positioning or to launch and design new products.

So, that's the -- a benefit that we can get. And also, another thing that we -- we are good at is actually to accelerate the growth of the brand we acquired in -- in the -- in the -- based on occupancy business model. So, going back to your -- your -- your --

Irene Lyu -- Head of Strategic Investment and Capital Markets

Do you mind repeating your second question?

Kevin Zhang -- Aristotle Research -- Analyst

Sure. No problem. So, since we have acquired Galenic and Eve Lom, these two overseas brands. So, what is our strategy on the post-acquisition integration? For example, how to deal with their existing team, R&D resources, as well as the overseas distributors.

Jinfeng Huang -- Founder, Chairman, and Chief Executive Officer

Well, I think that's a very important question about the division. Because the integration plays a -- a very important part when we need to expand the brand portfolios. So, right now, the -- there -- there are -- are few steps we're taking. One of the most important thing is actually we are not 100% buyout.

It's more like a joint venture with the existing shareholder which can help us to smooth the transfer of the -- the -- that operation. So, for our partners, they're helping us to -- to remain and then keep the existing distribution network and they're helping us on the R&D and product innovation and even keeping the -- the key employees and upfront, and etc. So, this joint venture is very important to -- to make sure that the position is like -- the -- is like -- is like a joint effort of both parties like strategies. So, that's a very important thing.

Another things is the -- so, right now, we internally, we are growing our organization capabilities in the M&A team. So, we -- we have new talent coming from -- coming from -- coming from the external team and also professional services team. And if they are very good at the -- executing the -- the integration policy of the acquisition. So, to date, with the external help, and also the internal teams like the commitment, we are getting better and better in executing those acquisitions to date.

Thank you so much.

Operator

Thank you. And as this does conclude the question-and-answer session, I would like to turn the conference back over to management for any closing comments.

Irene Lyu -- Head of Strategic Investment and Capital Markets

Thank you, operator. So, thank you once again for joining us today. If you have any further questions, please feel free to contact us at Yatsen directly or TPG Investor Relations. Our contact information for IR in both China and the U.S.

can be found on today's press -- press release. Have a great day. Thank you.

Operator

[Operator signoff]

Duration: 40 minutes

Call participants:

Irene Lyu -- Head of Strategic Investment and Capital Markets

Jinfeng Huang -- Founder, Chairman, and Chief Executive Officer

Donghao Yang -- Chief Executive Officer and Director

Christine Cho -- Goldman Sachs -- Analyst

Dustin Wei -- Morgan Stanley -- Analyst

Louise Li -- Bank of America Securities -- Analyst

Kevin Zhang -- Aristotle Research -- Analyst

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