The conference call for Yasen's third quarter 2025 earnings discusses forward-looking statements, risks, and non-GAAP financial measures. Management, including the founder, chairman, CEO, and CFO, will provide remarks followed by a Q&A session. The call is being recorded, and a webcast will be available on the company's investor relations website.

The third quarter 2025 earnings call highlighted robust growth in the skincare category, driving overall revenue increase by 40.5% year-over-year. The company narrowed its net loss significantly, improved net loss margin from 17.9% to 7%, and prioritized profitability through margin optimization and marketing efficiency, while maintaining investment in innovation and hero products.

The company highlights robust Q3 performance with key brand successes, including The Lan's He 7 series, Wu's antique aging product, and Coly's makeup innovations. Emphasis on R&D, clinical validation, and strategic capital allocation underscores commitment to long-term growth and shareholder value.

In Q3 2025, net revenues surged 47.5% to $998.4 million, with gross profits up 61.9% to $780.5 million. Operating expenses increased 31.9% to $864.1 million, but as a percentage of revenues, they decreased, indicating improved efficiency. Selling and marketing expenses, despite a significant absolute increase, fell as a percentage of revenues due to optimized fulfillment costs and a higher skincare product mix. General and administrative expenses declined as a percentage of revenues, mainly due to lower share-based compensation. Research and development expenses rose, reflecting increased investment in headcount.

The company reported a reduction in operating and net losses compared to the prior year, with improved non-GAAP metrics. Despite a decrease in cash reserves, cash used in operations was lower, attributed to working capital adjustments. A positive outlook is forecasted for Q4 2025, anticipating revenue growth and improved operating cash flow.

A congratulatory note is given for exceeding revenue guidance, followed by inquiries regarding competition from foreign high-end brands during the Double 11 festival, and expectations for profitability in the fourth quarter and the following year.

The company's Double 11 performance met expectations, with strong momentum from new product launches. Despite competition from high-end brands, the company maintained a competitive edge through strategic pricing and promotion of new products, aiming for balanced growth and profitability.

Discussed efforts to sustain skincare business growth, focusing on key areas for the last quarter and next year. Also explored strategies to continuously improve profitability, highlighting potential areas of focus for the company.

The dialogue outlines strategies for boosting skincare brand growth through R&D innovation, portfolio expansion, and brand optimization. It emphasizes improving profitability via mix optimization, customer focus, and leveraging true branding expenses.

Discussion on anticipated company expenses and strategy against rising competition in online markets.

Discusses maintaining stable general expenses while investing in R&D and branding for long-term growth and operational leverage.

Focuses on leveraging past investments in R&D and branding to maintain competitive edge, emphasizing innovation, operational efficiency, and customer focus for long-term growth.

The Q&A session ended with an invitation to reach out directly for further questions, sharing contact details for investor relations in China and the US as per today's press release, concluding the presentation.