Yatsen Unveils Strategy for ADS Ratio Adjustment

Yatsen Holding Limited (NYSE: YSG), a prominent beauty group based in China, has revealed plans to adjust the ratio of its American depositary shares (ADSs) to its Class A ordinary shares (the “ADS Ratio”). Currently, one (1) ADS represents four (4) Class A ordinary shares, but this will change to one (1) ADS representing twenty (20) Class A ordinary shares.

For ADS holders, this modification in the ADS Ratio is equivalent to a one-for-five reverse ADS split. Yatsen will file a post-effective amendment to the ADS Registration Statement on Form F-6 with the Securities and Exchange Commission (SEC) to reflect this change, expecting it to be effective around March 18, 2024 (U.S. Eastern Time), pending the effectiveness of the post-effective amendment on or before that date.

Upon the effective date of the ADS Ratio change, ADS holders of record must exchange every five (5) existing ADSs for one (1) new ADS. Deutsche Bank Trust Company Americas, serving as the depositary bank for Yatsen’s ADS program, will facilitate this exchange.

No fractional new ADSs will be issued during this process. Instead, fractional entitlements to new ADSs will be aggregated and sold by the depositary bank. Net cash proceeds from the sale of fractional ADS entitlements will be distributed to applicable ADS holders after deduction of fees, taxes, and expenses. Importantly, the change in the ADS Ratio will not impact the underlying Class A ordinary shares, and no Class A ordinary shares will be issued or canceled.

Yatsen’s ADSs will continue to be traded on the New York Stock Exchange under the symbol “YSG.” The anticipated result of the ADS Ratio change is a proportionate increase in the ADS trading price. However, the company cannot guarantee that the ADS trading price post-change will be equal to or greater than five times the ADS trading price before the adjustment.

This announcement contains forward-looking statements made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements involve inherent risks and uncertainties, and actual results may differ materially from those expressed. Factors contributing to such differences include the company’s growth strategies, business development, market trends, and regulatory changes. Yatsen does not undertake any obligation to update forward-looking statements, except as required by applicable law.

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