Yatsen announces $120M private placement; Trustar and CEO Jinfeng Huang to invest in convertible notes

Yatsen Holding (YSG [https://seekingalpha.com/symbol/YSG]) has secured a $120 million strategic investment [https://seekingalpha.com/pr/20432494-yatsen-announces-private-placement-of-convertible-notes-and-warrants] through a definitive agreement with an investment vehicle (the "Purchaser") affiliated with Trustar Capital and the company’s founder, CEO Jinfeng Huang.

According to the agreement, the purchaser will invest in RMB-denominated convertible senior notes totaling about US$120 million, issued in two parts: the first note and the second note, along with warrants for Class A ordinary shares.

Huang will personally invest alongside Trustar Capital as a co-investor through the purchaser.

The first note is expected to be issued around March 2026, with the second note is expected to be issued later this year.

The board has approved the transaction, and the funds will be used for research and development, supply chain integration, overseas expansion, strategic mergers, and other corporate needs to support growth.

This transaction strengthens the alliance between Trustar Capital and Yatsen (YSG [https://seekingalpha.com/symbol/YSG]). Trustar will use its network to help Yatsen (YSG [https://seekingalpha.com/symbol/YSG]) enhance its position in the beauty industry and support its global expansion through expertise in acquisitions and integrations.

The notes will have an interest rate of 1.5% per year, payable semi-annually.

The first note will initially last for 364 days from when it is issued but will automatically extend to five years if the company gets a foreign debt registration certificate from the National Development and Reform Commission of China ((NDRC certificate)).

If the second note is issued after closing conditions are met, including receipt of the NDRC certificate, it will mature five years after the first note's issue date.

After 364 days, the notes may be converted into the company's Class A shares or American depositary shares (ADSs). The conversion price is set at $4.63, which is a 20% premium over the average price of the ADSs during the five trading days before the note purchase agreement.

The company will also issue warrants that allow holders to buy additional Class A shares for $0.50 per share.

The note holders can request the company to buy back all or part of the notes for cash after three years at a repurchase price that includes a 4% return.

The company will also provide registration rights for shares convertible from the notes axnd warrants.

MORE ON YATSEN HOLDING

* Yatsen Holding Limited (YSG) Q4 2025 Earnings Call Transcript [https://seekingalpha.com/article/4876994-yatsen-holding-limited-ysg-q4-2025-earnings-call-transcript]
* Yatsen Holding Limited 2025 Q4 - Results - Earnings Call Presentation [https://seekingalpha.com/article/4877015-yatsen-holding-limited-2025-q4-results-earnings-call-presentation]
* Yatsen Holding Non-GAAP EPADS of $0.07, revenue of $197.3M; introduces Q1 outlook [https://seekingalpha.com/news/4559134-yatsen-holding-non-gaap-epads-of-007-revenue-of-1973m-introduces-q1-outlook]
* Seeking Alpha’s Quant Rating on Yatsen Holding [https://seekingalpha.com/symbol/YSG/ratings/quant-ratings]
* Historical earnings data for Yatsen Holding [https://seekingalpha.com/symbol/YSG/earnings]