07:01 AM EDT, 03/11/2026 (MT Newswires) -- Yatsen ( YSG ) said Wednesday it has entered into a definitive agreement to raise $120 million through the issuance of renminbi-denominated convertible senior notes in two equal tranches, along with warrants to purchase class A ordinary shares.

The notes will bear interest at a rate of 1.5% per year, payable semi-annually. Chairman and Chief Executive Jinfeng Huang and Trustar Capital are participating in the offering through an affiliated investment vehicle, the company said.

The first tranche is expected to be issued in or around March and will initially mature 364 days after issuance, automatically extending to five years upon receipt of a foreign debt registration certificate from China's National Development and Reform Commission, Yatsen ( YSG ) said. The second tranche is expected later in 2026 and will mature five years after the first tranche is issued.

The notes may be converted into Class A ordinary shares or American depositary shares, each representing 20 Class A ordinary shares, at a conversion price of $4.63.

Yatsen ( YSG ) will also issue warrants allowing holders to acquire Class A ordinary shares equal to one-tenth of the shares issued upon conversion of the corresponding note, at an exercise price of $0.50 per Class A share.

The company also said it plans to use the net proceeds for product research and development, global supply chain integration, overseas market expansion, strategic mergers and acquisitions and other corporate purposes.

Shares of Yatsen ( YSG ) were down almost 4% in Wednesday pre-bell trading.