On August 26, 2021, during the second quarter of 2021 analyst call, Yatsen's Chairman, Founder, and CEO, defendant Jinfeng Huang, admitted that Yatsen's Perfect Diary business was (and had been) deteriorating, requiring Yatsen to "refocus and also to devote more resources to continue the growth trend of [Yatsen's] main brands." According to Huang, Yatsen had "move[d] too fast to reallocate [Yatsen's] talent into the skincare BU." On August 26, 2021, the price of Yatsen ADSs declined more than 17%.