Corporate Governance

Yatsen regards responsible governance as a core value of the Company. With our sound governance structure, we pay special attention to managing enterprise risk, defending our business ethics, improving the level of group governance, as well as promoting the sustainable and healthy development of the Company. While striving to achieve responsible governance, we are focused on the expectations and suggestions of our stakeholders regarding ESG matters, and incorporate sustainable development into our governance philosophy.

Yatsen strictly adheres to the laws and regulations of the place where it operates and the relevant laws and regulations pertaining to listed companies by the U.S. Securities and Exchange Commission and the New York Stock Exchange, and has established a scientific and efficient corporate governance structure with clear distinction and division of responsibilities.

Corporate Governance

Yatsen considers ethics to be the cornerstone of our business. We strictly abide by the relevant provisions of China’s Anti-Monopoly Law and the Fair Competition Law. We are constantly optimizing our anti-corruption management and reporting mechanisms, strengthening our compliance review and integrity education while encouraging our supply chain partners to uphold the highest business ethics standards. During the Reporting Period, the Company was not involved in any cases involving corruption, bribery, extortion, fraud, insider trading and money laundering.

Business Ethics

Yatsen recognizes the importance of intellectual property. We strictly follow the Trademark Law of the People’s Republic of China, the Patent Law of the People’s Republic of China, the Civil Code of the People’s Republic of China and other applicable laws and regulations of the place where we operate, and formulate internal systems such as the Trademark Protection Management Standards and the Patent File System Management Standards, in order to comprehensively strengthen the protection of intellectual property rights and enhance our competitiveness.

Intellectual Property Protection

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  • ·We continuously strive to enhance our risk management and internal control mechanisms to raise awareness of preventing compliance risks. By ensuring effective risk identification and management, we can sustain stable and uninterrupted operations.

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  • ·In 2023, we conducted self-assessments on internal control, covering 16 core business procedures, with 556 control items identified, increasing by 68 compared with 2022.

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  • ·In accordance with the rules and regulations where we are listed, we regularly disclose our financial results, operational achievements, strategic planning and other information, providing investors with timely access to our detailed updates. In 2023, we held 4 quarterly results meetings and about 120 investor communication meetings and roadshows.

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  • ·In 2023, we conducted training on business ethics in the forms of special training, orientation training, releasing integrity announcements, and signing the letter of commitment, with 100% employee coverage.

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  • ·As of the end of the Reporting Period, we had applied for 203 patents, with 169 granted. Meanwhile, we had 2,001 domestic and 2,314 international trademarks, with 175 copyrights registered.

 

Rules and Regulations