NEW YORK, Nov. 17, 2022 (GLOBE NEWSWIRE) — Pomerantz LLP is investigating claims on behalf of investors in Yatsen Holding Limited (“Yatsen” or the “Company”) YSG. Those investors are advised to contact Robert S. Willoughby at newaction@pomlaw.com or 888-476-6529, extension 7980.

The investigation concerns whether Yatsen and certain of its officers and/or directors have engaged in securities fraud or other illegal business practices.

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On or about November 19, 2020, Yatsen completed its initial public offering of 58.75 million American Depositary Shares (“ADSs”) at a price of $10.50 per ADS. On August 26, 2021, Yatsen acknowledged during a conference call that business with the company’s Perfect Diary brand had deteriorated, forcing Yatsen to “refocus and allocate more resources to continue the growth trend [its] main brands.”

As a result of this news, Yatsen’s ADS price fell $1.03 per share, or 17.64%, to close at $4.81 per share on August 26, 2021.

Then, on November 17, 2021, Yatsen reported its financial results for the third quarter of 2021. Among other things, Yatsen admitted to witnessing a “soft industry environment for color cosmetics.” During the related conference call, the company explained that the “significant slowdown in general consumer and color cosmetics spending in China” is an “industry trend” related in part to the ongoing COVID-19 pandemic. Yatsen also acknowledged that gross sales of the company’s color cosmetics brands declined by a mid-single-digit amount, due in part to the “rebalancing” of the company’s Little Ondine brand.

As a result of this news, Yatsen’s ADS price fell $0.59 per ADS, or 17.93%, to close at $2.70 per ADS on November 17, 2021.

Finally, on March 10, 2021, Yatsen reported its fourth quarter and full year 2021 financial results and acknowledged that its disappointing results were due to a slowdown in sales of its leading brands, including Perfect Diary, Little Ondine and Pink Bear.

On…