Yatsen Announces Completion of First Tranche in Previously Announced Private Placement and Hillhouse Participation

Rhea-AI Summary

Yatsen (NYSE:YSG) completed the first tranche of its previously announced RMB-denominated convertible senior notes and warrants private placement and confirmed Hillhouse as a co-investor alongside Trustar Capital and founder Jinfeng Huang.

The two equal tranches total approximately US$120 million, funding R&D, supply chain, overseas expansion, M&A and general corporate purposes.

Positive

• First tranche of two-part convertible notes and warrants Transaction closed on May 21, 2026
• Total aggregate principal of two equal tranches equivalent to approximately US$120 million
• Hillhouse joins as co-investor alongside Trustar Capital and founder Jinfeng Huang
• Stated use of proceeds includes R&D, global supply chain integration and overseas expansion

Negative

• Second tranche of notes still subject to closing conditions and expected later in 2026

News Market Reaction – YSG

+9.13% 3.0x vol

15 alerts

+9.13% Session close to close

+19.0% Peak Tracked

-4.6% Trough Tracked

$255.31M Market Cap

3.0x Rel. Volume

In the May 21 session, YSG gained 9.13%, reflecting a notable positive market reaction. Argus tracked a peak move of +19.0% during that session. Argus tracked a trough of -4.6% from its starting point during tracking. Our momentum scanner triggered 15 alerts that day, indicating notable trading interest and price volatility. Trading volume was elevated at 3.0x the daily average, suggesting notable buying interest.

Data tracked by StockTitan Argus on the day of publication.

Market Context

The stock moved +9.1% in the session following this news. A strong positive reaction aligns with the...

Analysis

The stock moved +9.1% in the session following this news. A strong positive reaction aligns with the earlier private placement disclosure, which previously saw a 10.47% gain on similar news. Investors have historically rewarded Yatsen for strengthening its balance sheet and funding R&D and overseas expansion. However, financing structures involving convertibles and warrants can later weigh on sentiment, so subsequent capital structure changes and execution on growth initiatives would remain key watchpoints.

Key Figures

Private placement size: ≈US$120 million Tranche count: 2 tranches First tranche closing date: May 21, 2026 +5 more

8 metrics

Private placement size ≈US$120 million Total aggregate principal of two equal tranches of notes

Tranche count 2 tranches Convertible senior notes issued in two equal tranches

First tranche closing date May 21, 2026 Closing of First Note and corresponding warrants

Share price $2.19 Pre-news current price for YSG

Daily move -6.01% Price change over previous 24 hours

Today’s volume 347,156 shares Compared with 20-day average volume of 130,685

52-week high $11.57 Pre-news 52-week high level

52-week low $2.15 Pre-news 52-week low level, near current price

Previous Private placement Reports

1 past event · Latest: Mar 11 (Positive)

Same Type Pattern 1 events

Date	Event	Sentiment	24h Move	Catalyst
Mar 11	Private placement terms	Positive	+10.5%	Announced US$120M convertible notes and warrants financing with founder participation.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Limited tag-specific history: the prior private placement announcement saw a positive share price reaction, contrasting with today’s decline.

Recent Company History

Recent news shows Yatsen progressing on both operations and capital structure. A March 2026 private placement of RMB-denominated convertible notes and warrants totaling about US$120 million previously prompted a double-digit gain. That financing was detailed in a 6-K, with proceeds earmarked for R&D, supply chain integration, overseas expansion and M&A. Today’s article advances that story by confirming completion of the first tranche and adding Hillhouse as a co-investor.

Key Terms

private placement, convertible senior notes, warrants

3 terms

private placement financial

"previously announced private placement of RMB-denominated convertible senior notes"

A private placement is a sale of securities directly to a selected group of investors, typically institutions or accredited investors, instead of through a public offering. It lets a company raise money faster and with fewer regulatory steps; for existing shareholders it matters because the newly issued shares, often sold at a discount, increase the share count and can dilute their ownership.

convertible senior notes financial

"private placement of RMB-denominated convertible senior notes and warrants"

Convertible senior notes are a type of loan that a company issues to investors, which can be turned into company shares later on. They are called "senior" because they are paid back before other debts if the company runs into trouble. This allows investors to earn interest like a loan but also have the chance to own part of the company if its value rises.

warrants financial

"convertible senior notes and warrants (the "Transaction")"

Warrants are special documents that give you the right to buy a company's stock at a set price before a certain date. They are often used as a way for companies to attract investors or raise money, and their value can increase if the company's stock price goes up.

View in glossary

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GUANGZHOU, China, May 21, 2026 /PRNewswire/ -- Yatsen Holding Limited ("Yatsen" or the "Company") (NYSE: YSG), a leading China-based beauty group, today announced the participation of Hillhouse in the Company's previously announced private placement of RMB-denominated convertible senior notes and warrants (the "Transaction"), and the completion of the first tranche of the Transaction.

Certain affiliates of Hillhouse have joined the investment vehicle for the Transaction (the "Purchaser") as a co-investor, alongside Trustar Capital and Mr. Jinfeng Huang, the Company's founder, Chairman and Chief Executive Officer. The Company and the Purchaser have entered into an amendment to the original note purchase agreement to reflect the expanded investor base.

The closing of the first tranche of the notes (the "First Note") and the corresponding warrants occurred on May 21, 2026. Subject to the satisfaction of applicable closing conditions, the second tranche of the notes is currently expected to be issued later this year. The total aggregate principal amount of the two equal tranches of notes remains unchanged at equivalent to approximately US$120 million. The Company continues to intend to use the net proceeds from the Transaction for product research and development, global supply chain integration, overseas market expansion, strategic mergers and acquisitions, and general corporate purposes.

Mr. Jinfeng Huang, Founder, Chairman and CEO of Yatsen, stated: "We are pleased to welcome Hillhouse's participation in the Transaction. As one of Yatsen's largest and longest-standing shareholders, Hillhouse has supported the Company since 2018. Their continued commitment, together with Trustar Capital and my personal participation, reflects strong confidence in Yatsen's long-term value and strategic direction. With the completion of the first tranche, we are better positioned to execute our growth strategy and create lasting value for shareholders over the long term."

The issuance of the securities under the Transaction has not been registered and is exempt from registration under the Securities Act of 1933, as amended. This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful.

About Yatsen Holding Limited

Yatsen Holding Limited (NYSE: YSG) is a leading China-based beauty group with the vision of becoming a world-class pioneer in beauty innovation. Founded in 2016, the Company has launched and acquired numerous color cosmetics and skincare brands including Perfect Diary, Little Ondine, Pink Bear, Galénic, DR.WU (its mainland China business), and Eve Lom.

For more information, please visit http://ir.yatsenglobal.com/.

Safe Harbor Statement

This announcement contains statements that may constitute "forward-looking" statements which are made pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "aims," "future," "intends," "plans," "believes," "estimates," "likely to," and similar statements. The Company may also make written or oral forward-looking statements in its periodic reports to the Securities and Exchange Commission ("SEC"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company's beliefs, plans, outlook and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company's growth strategies; its future business development, results of operations and financial condition; its ability to continue to roll out popular products and maintain popularity of existing products; its ability to anticipate and respond to changes in industry trends and consumer preferences and behavior in a timely manner; its ability to attract and retain new customers and to increase revenues generated from repeat customers; its expectations regarding demand for and market acceptance of its products and services; its ability to integrate newly-acquired businesses and brands; trends and competition in and relevant government policies and regulations relating to China's beauty market; changes in its revenues and certain cost or expense items; and general economic conditions globally and in China. Further information regarding these and other risks is included in the Company's filings with the SEC. All information provided in this press release is as of the date of this press release, and the Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

For investor and media inquiries, please contact:

Yatsen Holding Limited
Investor Relations
E-mail: ir@yatsenglobal.com

View original content:https://www.prnewswire.com/news-releases/yatsen-announces-completion-of-first-tranche-in-previously-announced-private-placement-and-hillhouse-participation-302778776.html

SOURCE Yatsen Holding Limited

FAQ

What did Yatsen (NYSE:YSG) announce about its private placement on May 21, 2026?

Yatsen announced completion of the first tranche of its RMB-denominated convertible senior notes and warrants private placement. According to Yatsen, the transaction totals approximately US$120 million across two equal tranches and supports its long-term growth strategy and shareholder value objectives.

How is Hillhouse participating in Yatsen (NYSE:YSG)'s May 2026 private placement?

Hillhouse affiliates joined the investment vehicle as co-investors in Yatsen’s private placement. According to Yatsen, Hillhouse participates alongside Trustar Capital and founder Jinfeng Huang, reflecting continued support from one of Yatsen’s largest and longest-standing shareholders since 2018.

What is the total size of Yatsen (NYSE:YSG)'s convertible notes and warrants Transaction?

The total aggregate principal of Yatsen’s convertible notes Transaction is equivalent to approximately US$120 million. According to Yatsen, this amount is split into two equal tranches of RMB-denominated convertible senior notes, each accompanied by corresponding warrants issued to the Purchaser.

When did Yatsen (NYSE:YSG) close the first tranche of its private placement?

Yatsen closed the first tranche of its convertible senior notes and warrants private placement on May 21, 2026. According to Yatsen, this “First Note” closing follows an amended note purchase agreement reflecting the expanded investor base including Hillhouse.

How will Yatsen (NYSE:YSG) use proceeds from its US$120 million private placement?

Yatsen plans to use net proceeds for product research and development, global supply chain integration, overseas market expansion and strategic mergers and acquisitions. According to Yatsen, remaining funds will support general corporate purposes, aligning the financing with its long-term growth initiatives.

What is the status of the second tranche in Yatsen (NYSE:YSG)'s private placement?

The second tranche of Yatsen’s convertible notes is expected to be issued later in 2026. According to Yatsen, this tranche remains subject to satisfaction of applicable closing conditions, while the total aggregate principal for both equal tranches stays at approximately US$120 million.