Yatsen Global, Parent Company of Perfect Diary Sets Up First Factory in Guangzhou, Investment Exceeds 600 Milllion RMB

8月 15, 2023

Recently, Yatsen Global, the parent company of China’s cosmetics brand Perfect Diary and listed on the New York Stock Exchange, announced that its group’s first factory, Yatsen BioTech, has officially commenced operations. The group stated that this marks a significant step in their supply chain expansion.

This factory represents an investment exceeding 600 million RMB, spanning an area of 78,000 square meters. It integrates research and development, manufacturing, and quality control into a unified cosmetics production facility. It was collaboratively established by Yatsen Global and the South Korean cosmetics ODM company COSMAX. According to business information, COSMAX holds a 51% stake, while Yatsen Global holds a 49% stake.

Located by the Liuxi River in Guangzhou’s Conghua District, the factory benefits from the rare hydrogen-rich soda hot spring, one of only two such springs in the world, the other being in Switzerland. Leveraging its natural, high-quality water source, the factory maintains stringent water quality standards equivalent to the Chinese Pharmacopoeia and European Pharmacopoeia.

In terms of production lines, there are dozens of fully automated manufacturing, bottling, and packaging lines for cosmetics and skincare products. The group’s cosmetics brands include Perfect Diary, Little Ondine, Pinke Bear, while skincare brands encompass Abby’s Choice, DR.WU (Mainland China operations), Galénic, Eve Lom, among others.

The factory houses a 3,000-square-meter cosmetics quality testing center, divided into four sections: packaging materials, finished products, physical and chemical testing, and microbiology laboratories, with total equipment value surpassing millions.

Moreover, the warehouse space exceeds 10,000 square meters, accommodating over 20,000 pallets, and is equipped with an integrated inventory management system and logistics automation.

Huang Jinfeng, Founder, Chairman, and CEO of Yatsen Global, remarked that as Perfect Diary and its cosmetics brands continue to grow and user demands rise, the necessity arises for constructing a globally leading manufacturing facility, driving technology, environmental sustainability, and higher-quality cosmetics production.

Kyungsoo Lee, President of COSMAX, added that as the largest-scale factory in their worldwide network, its completion stands as another “milestone” in the sincere collaboration between both companies. The potential of the Chinese market is consistently favored, and together with Yatsen Global, they will fully leverage the factory’s professional strength, unleash innovative power, and provide higher-quality and more diverse cosmetics products to Chinese and global consumers.

According to Yatsen Global’s previously released financial data for the first quarter ending on March 31, 2023: due to a decline in cosmetic brand revenue, net income decreased by 14.1% year-on-year to 765.4 million RMB. Notably, skincare brand net income surged by 34.2% to 245.1 million RMB, accounting for 32.0% of the total revenue, up from the previous year’s 20.5%. Worth noting is that Yatsen Global achieved a turnaround from losses to profits, with a net profit of 50.7 million RMB (compared to a net loss of 291.4 million RMB in the same period last year), marking the company’s first profitable quarter since its listing.

| Source: Official WeChat Public Account

| Image Credit: Official WeChat Public Account

| Editor: LeZhi