Document:

EX-10.12

 Exhibit 10.12 

SERIES B-3+ PREFERRED SHARE PURCHASE AGREEMENT 

This Series B-3+ Preferred Share Purchase Agreement (the “Agreement”) is made as of February 25,
2019 by and among: 
  

	1.	 Yatsen Holding Limited, an exempted company incorporated under the laws of the Cayman Islands (the
“Company”); 

  

	2.	 Yatsen (HK) Limited, a limited liability company incorporated under the laws of Hong Kong (the “HK
Company”); 

  

	3.	 Guangzhou Yatsen Ecommerce Co., Ltd.
(广州逸仙电子商务有限公司), a limited liability company incorporated under the laws of the PRC (the “Ecommerce
Company”); 

  

	4.	 Guangzhou Yatsen Cosmetics Co., Ltd.
(广州逸仙化妆品有限公司), a limited liability company incorporated under the laws of the PRC (the “Cosmetics
Company”); 

  

	5.	 Guangzhou Yatsen Pet Products Co., Ltd.
(广州逸仙宠物用品有限公司), a limited liability company incorporated under the laws of the PRC (“Yatsen Pet
Products”, together with the Ecommerce Company and the Cosmetics Company, the “PRC Companies”, and each, a “PRC Company”); 

 

	6.	 The persons listed on Schedule I-A hereto (each a
“Founder” and together, the “Founders”); 

  

	7.	 The entities as set forth on Schedule I-B (each a
“Founder Holdco” and together, the “Founder Holdcos”); and 

  

	8.	 The entities listed on Schedule I-C hereto (the
“Investors”, and each, a “Investor”). 

 Each of the foregoing parties is referred to herein
individually as a “Party” and collectively as the “Parties”. 
 RECITALS 

The Company desires to issue and sell to each Investor and each Investor, severally but not jointly, desires to purchase from the Company certain series B-3+ preferred shares, par value US$0.00001 each, of the Company (the “Series B-3+ Preferred Shares”), with such rights and privileges as set forth in the
Shareholders Agreement (as defined below) and the Restated Articles (as defined below) on the terms and conditions set forth in this Agreement. 
 NOW THE
PARTIES HEREBY AGREE AS FOLLOWS: 
  

	1.	 Subject to the terms and conditions of this Agreement, the Company hereby agrees to issue, allot and
sell to the Investors, and the Investors hereby, severally but not jointly, agree to purchase from the Company, a total of 87,075,383 authorized Series B-3+ Preferred shares (the “Purchased
Shares”), at a price of US$0.1740 per share, amounting to an aggregate purchase price of US$15,150,000 (the “Purchase Price”). 

  
 1 

	2.	 The purchase and sale of the Purchased Shares shall take place remotely via the exchange of documents
and signatures as soon as practical (but in any case within three (3) business days) after the fulfillment or otherwise waiver of the closing conditions under Section 4, or at such other time or place as the Company
and the Investors may mutually agree upon (the “Closing”). 

  

	3.	 At the Closing, the Company shall deliver to each Investor (i) a copy of the Company’s
register of members, updated to show such Investor as the holder of the applicable Purchased Shares, (ii) a share certificate registered in the name of such Investor representing the applicable Purchased Shares purchased by such Investor
hereunder, (iii) a compliance certificate dated as of the Closing signed by each Warrantor or a duly authorized representative of each Warrantor, as applicable, certifying that all of the conditions set forth in
Section 4 have been fulfilled, and (iv) Board, and if necessary, shareholders’ resolutions of the Company approving the Transaction Documents and the transactions contemplated herein. 

 

	4.	 The Closing is subject to the fulfillment of the following conditions, unless otherwise waived by the
Company and/or the Investors (as applicable) in writing: 

  

	 	(i)	 Representations and Warranties True and Correct. The representations and warranties made by the
Warrantors in Section 6, shall be true, correct and complete when made, and shall be true, correct and complete as of the date of the Closing with the same force and effect as if they had been made on and as of such date.

  

	 	(ii)	 Authorizations. All consents of any competent Governmental Authority or of any other Person that are
required to be obtained by any Party hereto (other than the Investor) in connection with the consummation of the transactions contemplated by this Agreement and other Transaction Documents shall have been duly obtained and effective as of the
Closing, and evidence thereof shall have been delivered to the Investor. 

  

	 	(iii)	 Proceedings and Documents. All corporate and other proceedings in connection with the transactions
contemplated hereby and all documents and instruments incident to such transactions shall have been duly completed and/or executed and delivered. 

  

	 	(iv)	 Laws. The offer and sale of the Purchased Shares and the Conversion Shares to the Investor pursuant to
this Agreement shall be exempt from the registration and prospectus delivery requirements of the Securities Act and shall not violate or breach or result in a violation or breach of any other applicable laws or regulations. 

 

	 	(v)	 Shareholders Agreement. The Investors, the Founders and certain other parties have entered into certain
Second Amended and Restated Shareholders Agreement in form and substance as set forth in Exhibit A (the “Shareholders Agreement”). 

  

	 	(vi)	 Restated Articles. The Third Amended and Restated Memorandum and Articles of Association in form and
substance as set forth in Exhibit B (the “Restated Articles”) shall have been duly adopted by the Company by special resolution. 

  

	 	(vii)	 Closing of Share Purchase. The closing under certain share repurchase agreement entered into between the
Company, Icecrystou Holding Limited, Zhen Partners Fund IV, L.P. and United Aspect Limited on February 25, 2019 (the “Repurchase Agreement”) has occurred simultaneously with the Closing. 

  
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	 	(viii)	 Closing Deliveries. The Warrantors shall have tendered delivery of all of the various items they are
required to deliver to the Investor at the Closing under Section 3. 

  

	 	(ix)	 No Material Adverse Effect. There shall have been no Material Adverse Effect on the financial
condition, business, prospects or operations of any Group Company since the Financial Statements Date. 

  

	5.	 Each Investor shall pay to the Company its applicable Purchase Price within three (3) business days
after the Closing. 

  

	6.	 Unless specifically indicated otherwise, the Warrantors severally and jointly represents and warrants to
the Investors that the statements contained in Schedule III, except as set forth in the Disclosure Schedule (the “Disclosure Schedule”) attached to this Agreement as Schedule IV (the contents of which shall also be
deemed to be representations and warranties hereunder), are correct and complete in all material respects as of the date of this Agreement and as of the Closing. For purposes of this Section 6, any reference to a
party’s “knowledge” means such party’s best knowledge after due and diligent inquiries of officers, directors, and other employees of such party reasonably believed to have knowledge of the matter in question.

  

	7.	 Each of the Warrantors hereby jointly and severally covenants to the Investors the issues listed on
Schedule V hereto. 

  

	8.	 Indemnity. 

 

	 	(i)	 Each Warrantor shall, jointly and severally, indemnify the Investors against any reduction in value of the
Company’s or the Group Companies’ assets, any increase in their liabilities, any dilution of the Investors’ interests in the Company or any diminution in the value of the Investors’ interests in the Company as a result of
(i) any breach or violation of any representation or warranty made by any Warrantor in the Transaction Documents and (ii) any breach by any Warrantor of any covenant or agreement contained herein and in any other Transaction Documents (the
forgoing losses, the “Indemnifiable Losses”). Notwithstanding the foregoing, the Founders and the Founder Holdcos shall not be liable for any Indemnifiable Losses until and unless the Group Companies have exhausted all available
funds in paying for the Indemnifiable Losses. 

  
 3 

	 	(ii)	 Notwithstanding anything contained in the Disclosure Schedule (as amended, if applicable), each Warrantor shall
jointly and severally indemnify at all times and hold harmless each of the Investors from and against any and all Indemnifiable Losses suffered by such Investor, directly or indirectly, as a result of, or based upon or arising from (i) any tax
Liability of any Group Company not reflected in the Financial Statements or arising out of any failure, by any Warrantor to comply with any applicable laws of the PRC or of any other applicable jurisdiction relating to tax, occurring or all taxable
periods ending on or before the Closing and the portion through the end of the Closing for any taxable period that includes (but does not end on) the Closing; (ii) any Group Company’s failure, occurring on or before the Closing, to obtain
and/or maintain the relevant license, permit or approval for its Business in accordance with applicable laws or regulations, (iii) any Liability incurred by HUANG Jinfeng
(黄锦峰) before and/or after the Closing, arising in respect of, by reference to or in consequence of any non-compliance with the non-competition obligation of HUANG Jinfeng (黄锦峰) to his former employer which occurs on or prior to the Closing, or (iv) any
Liability incurred by any Group Company or the Founders before and/or after the Closing, arising in respect of, by reference to or in consequence of any breach of, or liabilities, claims and disputes against any Group Company or the Founders, which
occurs on or prior to the Closing, from (A) the capital increase agreement
(《广州逸仙电子商务有限公司增资协议》) entered into among the Founders, the
Ecommerce Company and the Zhen Partners IV (HK) Limited on the date of August 1st, 2017, and (B) the capital increase agreement
(《广州逸仙电子商务有限公司增资协议》) and the joint venture contract (《广州逸仙电子商务有限公司中外合资经营企业合同》)
entered into among the Founders, the Ecommerce Company, the Zhen Partners IV(HK) Limited and the Hony Mezzanine (Shenzhen) Investment Management Center (Limited
Partnership)(弘毅夹层(深圳)投资管理中心(有限合伙)) on
October 9, 2017. 

  

	 	(iii)	 Notwithstanding anything to the contrary contained herein, the aggregate liabilities of the Warrantors pursuant
to this Section 8 for each of the Investors under the Transaction Documents shall not exceed the Purchase Price paid for the Purchased Shares being purchased by such Investor hereunder, provided further that, absent willful
misconduct which result or reasonably be expected to result in a Material Adverse Effect or fraud by any of the Founders, the aggregate liabilities of each Founder and his applicable Founder Holdco pursuant to this
Section 8 for certain Investor under the Transaction Documents shall not exceed an amount equal to the lower of (i) the Purchase Price paid for the Purchased Shares being purchased by such Investor hereunder; and
(ii) the value of the Ordinary Shares beneficially owned by such Founder in the Company, determined by the proceeds received by such Founder from disposal of such Ordinary Shares through arm’s length transaction in good faith. Any Founder
may elect to compensate the Investors for any Indemnifiable Loss suffered by the Investors by transferring the Ordinary Shares in whole or in part held by the relevant Founder Holdco to the Investors at no cost, provided that, the value for such
number of Ordinary Shares to be transferred shall equal the Indemnifiable Loss with such value to be determined by the Company’s auditor in good faith (including affirmative votes of the holders of at least fifty percent (50%) of the then
issued outstanding Ordinary Shares (on as-converted basis) held by all holders of the Preferred Shares). 

  

	9.	 CONFIDENTIALITY AND NON-DISCLOSURE.

  

	 	(i)	 Disclosure of Terms. The terms and conditions of the Transaction Documents and all exhibits and
schedules attached hereto and thereto (collectively, the “Financing Terms”), including their existence, shall be considered confidential information and shall not be disclosed by any Party hereto to any third party except in
accordance with the provisions set forth below; provided that such confidential information shall not include any information that is in the public domain other than caused by the breach of the confidentiality obligations hereunder.

  
 4 

	 	(ii)	 Press Releases. Any press release issued by any Group Company or their affiliates shall not disclose any
of the Financing Terms and the substance and form of such press release shall be approved in advance by the Investors. 

  

	 	(iii)	 Permitted Disclosures. Notwithstanding the foregoing, any Party may disclose any of the Financing Terms
to its current or bona fide prospective investor, employees, investment bankers, lenders, partners, accountants and attorneys, in each case only where such persons or entities are under appropriate nondisclosure obligations. 

 

	 	(iv)	 Legally Compelled Disclosure. In the event that any Party is requested or becomes legally compelled
(including without limitation, pursuant to securities laws and regulations) to disclose the existence of any Transaction Document or any of the exhibits and schedules attached hereto or thereto, or any of the Financing Terms hereof in contravention
of the provisions of this Section 9 such party (the “Disclosing Party”) shall provide the other parties (the “Non-Disclosing Parties”) with prompt
written notice of that fact and use all reasonable efforts to seek (with the cooperation and reasonable efforts of the other parties) a protective order, confidential treatment or other appropriate remedy. In such event, the Disclosing Party shall
furnish only that portion of the information which is legally required to be disclosed and shall exercise reasonable efforts to keep confidential such information to the extent reasonably requested by any
Non-Disclosing Party. 

  

	 	(v)	 Other Information. The provisions of this Section 9 shall be in addition to,
and not in substitution for, the provisions of any separate nondisclosure agreement executed by any of the parties with respect to the transactions contemplated hereby. 

 

	10.	 This Agreement shall become effective from the date hereof. 

 

	11.	 The terms and conditions of this Agreement including its existence, shall be considered confidential
information and shall not be disclosed by any party hereto to any third party except in accordance with the provisions set forth below; provided that such confidential information shall not include any information that is in the public domain other
than caused by the breach of the confidentiality obligations hereunder. 

  

	12.	 This Agreement shall be governed by and construed exclusively in accordance with the laws of Hong Kong
without giving effect to any choice of law that would cause the application of the laws of any jurisdiction other than Hong Kong to the rights and duties of the parties hereunder. 

 

	13.	 The representations, warranties, covenants and agreements made by the Warrantors herein shall survive
any due diligence investigation made by the Investors hereto and shall survive the Closing. 

  

	14.	 Except as otherwise expressly provided herein, the provisions hereof shall inure to the benefit of, and
be binding upon, the successors, permitted assigns, heirs, executors and administrators of the Parties hereto whose rights or obligations hereunder are affected by such amendments. Notwithstanding anything contrary in this Agreement, this Agreement
and the rights and obligations herein may be assigned or transferred by the Investors to their Affiliates. No Warrantor may assign its rights or delegate its obligations under this Agreement without the written consent of the Investors.

  
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	15.	 This Agreement may only be amended or modified with the prior written consent of the Company and the
Investors. 

  

	16.	 The Company shall bear all legal, accounting and other out of pocket fees, costs and expenses incurred
by Hillhouse in connection with the conduct of its industry, legal and financial due diligence and its negotiation, preparation, execution and completion of this Agreement and any other Transaction Documents hereunder and thereunder, which shall not
exceed US$25,000 (i) at the Closing, or (ii) in the event that the Closing has failed to occur due to fault of any Warrantor, within three (3) business days upon the demand of Hillhouse. 

 

	17.	 The rights and obligations of each Investor shall be several but not joint under this Agreement. For the
avoidance of doubt, each Investor’s purchase of the Purchased Shares and the Company’s issuance and sale of the Purchased Shares herein shall be independent transactions. 

 

	18.	 Any dispute, controversy, difference or claim arising out of or relating to this Agreement, including
the existence, validity, interpretation, performance, breach or termination thereof or any dispute regarding non-contractual obligations arising out of or relating to it shall be referred to and finally
resolved by arbitration administered by the Hong Kong International Arbitration Centre (the “HKIAC”) under the HKIAC Administered Arbitration Rules (the “Rules”) in force when the Notice of Arbitration (as defined
in the Rules) is submitted. 

  

	19.	 This Agreement may be executed and delivered by facsimile or another electronic form in any number of
counterparts and by the parties hereto on separate counterparts, each of which when executed and delivered (whether by facsimile or otherwise) shall constitute an original but all such counterparts shall together constitute one and the same
instrument. 

  

	20.	 The capitalized terms used in this Agreement shall have the meaning as ascribed to them in the
Schedule II hereto. 

 [SIGNATURES ON FOLLOWING PAGE] 

  
 6 

 IN WITNESS whereof this Agreement has been duly executed by the parties hereto the day and year first above
written. 
  

			
	GROUP COMPANIES:
	
	Yatsen Holding Limited
		
	By:	 	 /s/ Jinfeng Huang

	Name:	 	HUANG Jinfeng
	Title:	 	Director
	
	Yatsen (HK) Limited
		
	By:	 	 /s/ Jinfeng Huang

	Name:	 	HUANG Jinfeng
	Title:	 	Director

  
 [Signature Page to the
Series B-3+ Preferred Share Purchase Agreement - Yatsen Holding Limited] 

 IN WITNESS whereof this Agreement has been duly executed by the parties hereto the day and
year first above written. 
  

			
	GROUP COMPANIES:
	
	Guangzhou Yatsen Ecommerce Co., Ltd.
	(广州逸仙电子商务有限公司) (Seal)
		
	By:	 	 /s/ Jinfeng Huang

	Name:	 	HUANG Jinfeng (黄锦峰)
	Title:	 	Legal Representative
	
	Guangzhou Yatsen Cosmetic Co., Ltd.
	(广州逸仙化妆品有限公司) (Seal)
		
	By:	 	 /s/ Yuwen Chen

	Name:	 	CHEN Yuwen (陈宇文)
	Title:	 	Legal Representative
	
	Guangzhou Yatsen Pet Products Co., Ltd.
	(广州逸仙宠物用品有限公司) (Seal)
		
	By:	 	 /s/ Yuwen Chen

	Name:	 	CHEN Yuwen (陈宇文)
	Title:	 	Legal Representative

  
 [Signature Page to the
Series B-3+ Preferred Share Purchase Agreement - Yatsen Holding Limited] 

 IN WITNESS whereof this Agreement has been duly executed by the parties hereto the day and
year first above written. 
  

			
	FOUNDERS AND FOUNDER HOLDCOS:
	
	 /s/ Jinfeng Huang

	HUANG Jinfeng (黄锦峰)
	
	 /s/ Yuwen Chen

	CHEN Yuwen (陈宇文)
	
	 /s/ Jianhua Lyu

	LYU Jianhua (吕建华)
	
	Slumdunk Holding Limited
		
	By:	 	 /s/ Jinfeng Huang

	Name:	 	HUANG Jinfeng (黄锦峰)
	Title:	 	Director
	
	Maybe Cat Holding Limited
		
	By:	 	 /s/ Yuwen Chen

	Name:	 	CHEN Yuwen (陈宇文)
	Title:	 	Director
	
	Icecrystou Holding Limited
		
	By:	 	 /s/ Jianhua Lv

	Name:	 	LV Jianhua (吕建华)
	Title:	 	Director

  
 [Signature Page to the
Series B-3+ Preferred Share Purchase Agreement - Yatsen Holding Limited] 

 IN WITNESS whereof this Agreement has been duly executed by the parties hereto the day and year first above
written. 
  

			
	THE INVESTOR:
	
	Banyan Partners Fund III, L.P.
	By: Banyan Partners III Ltd., its general partner
		
	By:	 	 /s/ Anthony Wu

	Name:	 	Anthony Wu
	Title:	 	Authorized Signatory
	
	Banyan Partners Fund III-A, L.P.
	By: Banyan Partners III Ltd., its general partner
		
	By:	 	 /s/ Anthony Wu

	Name:	 	Anthony Wu
	Title:	 	Authorized Signatory

  
 [Signature Page to the
Series B-3+ Preferred Share Purchase Agreement - Yatsen Holding Limited] 

 IN WITNESS whereof this Agreement has been duly executed by the parties hereto the day and year first above
written. 
  

			
	THE INVESTOR:
	
	HH SPR-XIII Holdings Limited
		
	By:	 	 /s/ Colm John O’Connell

	Name:	 	Colm John O’Connell
	Title:	 	Authorized Signatory

  
 [Signature Page to the
Series B-3+ Preferred Share Purchase Agreement - Yatsen Holding Limited] 

 Schedule I-A 

List of Founders 
  

			
	 Founder
	  	 PRC ID Number

	HUANG Jinfeng (黄锦峰)	  	***
	LYU Jianhua (吕建华)	  	***
	CHEN Yuwen (陈宇文)	  	***

  
 Schedule I 

 Schedule I-B 

List of Founder Holdcos 
  

					
	 Name of the Company
	  	 Place of Incorporation
	  	 Ownership

	Slumdunk Holding Limited	  	British Virgin Islands	  	100% owned by HUANG Jinfeng (黄锦峰)
	Maybe Cat Holding Limited	  	British Virgin Islands	  	100% owned by CHEN Yuwen (陈宇文)
	Icecrystou Holding Limited	  	British Virgin Islands	  	100% owned by LV Jianhua (吕建华)

  
 Schedule I 

 Schedule I-C 

List of Purchasers 
  

							
	 Purchaser
	  	 Number of Purchased Shares
	  	Purchase Price	 
	 Banyan Partners Fund III, L.P.
	  	 29,312,505 Series B-3+

Preferred Shares
	  	US$	5,100,000	 
	 Banyan Partners Fund III-A, L.P.
	  	 5,172,795 Series B-3+

Preferred Shares
	  	US$	900,000	 
	 HH SPR-XIII Holdings Limited
	  	 52,590,083 Series B-3+

Preferred Shares
	  	US$	9,150,000	 

  
 Schedule I 

 Schedule II 

Definitions 

“Action” shall mean any notice, charge, claim, action, complaint, petition, investigation, appeal, suit, litigation,
grievance, inquiry or other proceeding, whether administrative, civil, regulatory or criminal, whether at law or in equity, or otherwise under any applicable law, and whether or not before any mediator, arbitrator or Governmental Authority. 

“Affiliate” shall mean, in respect of a Person, any other Person that, directly or indirectly, through one or more
intermediaries, Controls, is Controlled by, or is under common Control with, such Person, and without limiting the generality of the foregoing, (a) in the case of a natural Person, shall include, without limitation, such Person’s spouse,
parents, children, siblings, mother-in-law and father-in-law and brothers and sisters-in-law, (b) in the case of the Investor, shall include (i) any controlling shareholder of such Investor, (ii) any entity or individual which has a
direct or indirect controlling interest in such controlling shareholder referred to in (i) above (including, any general partner or limited partner, or any fund manager thereof, if any) or any fund manager thereof; (iii) any Person that
directly or indirectly controls, is controlled by, under common control with, or is managed by such Investor, any controlling shareholder or any fund manager referred to in (i) and (ii) above, (iv) a child, brother, sister, parent, or
spouse of any individual referred to in (ii) above, and (v) any trust controlled by or held for the benefit of such persons referred to in (i) to (iv) above. For the avoidance of doubt, the Investor shall not be deemed to be an
Affiliate of any Group Company. 
 “Agreement” is defined in the introductory paragraph of this Agreement. 

“Board” shall mean the board of directors of the Company. 

“Business” shall mean the business of cosmetics E-commerce conducted by the Group
Companies. 
 “Business Day” or “business day” shall mean any day that is not a Saturday, Sunday,
legal holiday or a day on which banks are required to be closed in Cayman Islands, Hong Kong or the PRC. 
 “Business Plan”
shall mean the Company’s annual budget and business plan as adopted by the Company’s Board of Directors. 
 “Circular
37” shall mean the Notice on Relevant Issues Concerning Foreign Exchange Administration for Domestic Residents to Engage in Overseas Financing and Round Trip Investment via Overseas Special Purpose Companies (《国家外汇管理局关于境内居民通过境外特殊目的公司境外投融资及返程投资外汇管理有关问题的通知》
) issued by SAFE on July 4, 2014, and its amendment and interpretation promulgated by SAFE from time to time. 

“Closing” shall have the meaning ascribed to it in Section 2. 

“Company” is defined in introductory paragraph 1 of this Agreement. 

  
 Schedule II 

 “Compliance Laws” shall have the meaning ascribed to it in Schedule
III. 
 “Contract” shall mean, a contract, agreement, understanding, indenture, note, bond, loan, instrument, lease,
mortgage, franchise, license, commitment, purchase order, and other legally binding arrangement, whether written or oral. 

“Control” shall mean the power or authority, whether exercised or not, to direct the business, management and policies of a
Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise; provided, that such power or authority shall conclusively be presumed to exist upon possession of beneficial ownership or power to direct
the vote of more than fifty percent (50%) of the votes entitled to be cast at a meeting of the members or shareholders of such Person or power to control the composition of a majority of the board of directors of such Person The terms
“Controlling” and “Controlled” have meanings correlative to the foregoing. 
 “Conversion
Shares” shall mean Ordinary Shares issuable upon conversion of the Preferred Shares of the Company. 
 “Disclosing
Party” shall have the meaning ascribed to it in Section 9. 
 “Disclosure Schedule”
shall have the meaning ascribed to it in Section 6. 
 “Employee Share Option Plan” or
“ESOP” shall mean the employee share option plan of the Company to be adopted as soon as practicable after the Closing and such other arrangements, contracts, or plans as are recommended by management and approved by the Board, with
the written approval of the Majority Preferred Holders (as defined in the Shareholders Agreement and Restated M&A), in accordance with the Shareholders Agreement and Restated M&A. 

“Financial Statements” shall have the meaning ascribed to it in Schedule III. 

“Financial Statements Date” shall have the meaning ascribed to it in Schedule III. 

“Founder” and “Founders” are defined in introductory paragraph 6 of this Agreement. 

“Founder Holdco” is defined in introductory paragraph 7 of this Agreement. 

“Governmental Authority” shall mean any nation or government, or any federation, province or state or any other political
subdivision thereof; any entity, authority or body exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government, including any government authority, agency, department, board, commission or
instrumentality of the PRC, the Cayman Islands, Hong Kong or any other country, or any political subdivision thereof, any court, tribunal or arbitrator, and any self-regulatory organization. 

“Governmental Authorizations” shall have the meaning ascribed to it in Schedule III. 

“Group Companies” shall mean the Company, the HK Company, the PRC Companies, each Person (except individuals) Controlled by
the Company and their respective Subsidiaries from time to time (each a “Group Company”), unless the text specifically indicates otherwise. 

  
 Schedule II 

 “Hong Kong” means the Hong Kong Special Administrative Region of the
People’s Republic of China. 
 “Hillhouse” means HH SPR-XIII Holdings Limited,
an exempted company incorporated under the laws of the Cayman Islands. 
 “HK Company” is defined in the introductory
paragraph 2 of this Agreement. 
 “IAS” shall mean the applicable International Accounting Standards published by the
International Accounting Standards Board from time to time. 
 “Indemnifiable Loss” means, with respect to any Person, any
action, claim, cost, damage, deficiency, diminution in value, disbursement, expense, liability, loss, obligation, penalty, settlement, suit, or tax of any kind or nature, together with all interest, penalties, legal, accounting and other
professional fees and expenses reasonably incurred in the investigation, collection, prosecution and defense of claims and amounts paid in settlement, that may be imposed on or otherwise incurred or suffered by such Person, whether directly or
indirectly. 
 “Interested Party” shall have the meaning set forth in Schedule III. 

“Investor” or “Investors” is defined in introductory paragraph 8 of this Agreement. 

“Key Employee” shall mean the individuals listed in Exhibit G of Series B-3
Purchase Agreement. 
 “Liabilities” or “Liability” shall mean, with respect to any Person, all debts,
obligations, liabilities owed by such Person of any nature, whether accrued, absolute, contingent or otherwise, and whether due or to become due. 

“Lien” means any mortgage, pledge, claim, security interest, encumbrance, title defect, lien, charge, easement, adverse
claim, restrictive covenant, or other restriction or limitation of any kind whatsoever, including any restriction on the use, voting, transfer, receipt of income, or exercise of any attributes of ownership. 

“Material Adverse Effect” shall mean any (a) event, occurrence, fact, condition, change or development that has had,
has, or could reasonably be expected to have a material adverse effect on the business, properties, assets, employees, operations, results of operations, condition (financial or otherwise), prospects or liabilities of the Group Companies taken as a
whole, (b) material impairment of the ability of any Warrantor to perform the material obligations of such Person hereunder or under any other Transaction Documents, as applicable, or (c) material impairment of the validity or
enforceability of this Agreement or any other Transaction Document against any Group Company, Founder or Founder Holdco. 

“MOFCOM” shall have the meaning ascribed to it in Schedule III. 

“Non-Disclosing Parties” shall have the meaning ascribed to it in
Section 9. 

  
 Schedule II 

 “Ordinary Shares” shall mean the Company’s ordinary shares, par value
US$0.00001 per share. 
 “Person” means any individual, sole proprietorship, partnership, limited partnership, limited
liability company, firm, joint venture, estate, trust, unincorporated organization, association, corporation, institution, public benefit corporation, entity or governmental or regulatory authority or other enterprise or entity of any kind or
nature. 
 “PRC” shall mean the People’s Republic of China, but solely for purposes of this Agreement and the other
Transaction Documents, excluding the Hong Kong, the Macau Special Administrative Region and the Islands of Taiwan. 
 “PRC
Companies” and “PRC Company” are defined in introductory paragraph of this Agreement. 
 “PRC
GAAP” shall have the meaning set forth in Schedule III. 
 “Preferred Shares” shall mean collectively, the
Series Seed Preferred Shares, the Series A-1 Preferred Shares, the Series A-2 Preferred Shares, the Series B-1 Preferred Shares,
the Series B-2 Preferred Shares, the Series B-3 Preferred Shares and the Series B-3+ Preferred Shares of the Company. 

“Proprietary Rights” shall mean any and all worldwide, international, PRC, or foreign registered and unregistered patents,
all patent rights and all applications therefore and all reissues, re-examinations, continuations, continuations-in-part,
divisions, and patent term extensions thereof, inventions (whether patentable or not), discoveries, improvements, concepts, innovations, industrial models, registered and unregistered copyrights, copyright registrations and applications,
author’s rights, works of authorship (including artwork of any kind and software of all types in whatever medium, inclusive of computer programs, source code, object code and executable code, and related documentation), URLs, web sites, web
pages and any part thereof, technical information, know-how, trade secrets, drawings, designs, design protocols, specifications for parts and devices, quality assurance and control procedures, design tools,
manuals, research data concerning historic and current research and development efforts, including the results of successful and unsuccessful designs, databases and proprietary data, proprietary processes, proprietary rights, technology,
engineering, discoveries, formulae, algorithms, operational procedures, trade names, trade dress, registered and unregistered trademarks, domain names, service marks, mask works, and registrations and applications therefore, the goodwill of the
business symbolized or represented by the foregoing, customer lists and other proprietary information and common law rights. 

“Purchased Shares” shall have the meaning ascribed to it in Section 1. 

“Qualified IPO” shall mean a public offering of Ordinary Shares of the Company (or securities representing such Ordinary
Shares) with net proceeds (excluding underwriting discounts, commissions and stock transfer taxes applicable to a sale of securities to the Company) of at least US$50,000,000 and an implied pre-money valuation of US$300,000,000 or more, or in a
similar public offering of Ordinary Shares in a jurisdiction and on an internationally recognized securities exchange or inter-dealer quotation system outside of the United States, including The Stock Exchange of Hong Kong Limited, provided such
public offering is equivalent to the aforementioned in terms of offering proceeds and regulatory approval. 

  
 Schedule II 

 “Restated M&A” shall mean the Third Amended and Restated Memorandum and
Articles of Association of the Company in the form attached as Exhibit B hereto. 
 “Representatives” shall have the
meaning ascribed to it in Schedule III. 
 “RMB” shall mean the lawful currency of the PRC. 

“SAFE” shall have the meaning ascribed to it in Schedule III. 

“Securities Act” shall mean the U.S. Securities Act of 1933, as amended. 

“Series Seed Preferred Shares” shall mean the Company’s Series Seed Preferred Shares, par value US$0.00001 per share.

 “Series A-1 Preferred Shares” shall mean the Company’s Series A-1 Preferred Shares, par value US$0.00001 per share. 
 “Series
A-2 Preferred Shares” shall mean the Company’s Series A-2 Preferred Shares, par value US$0.00001 per share. 

“Series B-1 Preferred Shares” shall mean the Company’s Series B-1 Preferred Shares, par value US$0.00001 per share. 
 “Series
B-2 Preferred Shares” shall mean the Company’s Series B-2 Preferred Shares, par value US$0.00001 per share. 

“Series B-3 Preferred Shares” shall mean the Company’s Series B-3 Preferred Shares, par value US$0.00001 per share. 
 “Series
B-3+ Preferred Shares” shall mean the Company’s Series B-3+ Preferred Shares, par value US$0.00001 per share. 

“Series B-3 Purchase Agreement” shall mean certain Series B-3 Preferred Share Purchase Agreement dated as of September 30, 2018 (the “Series B-3 Purchase Agreement”), entered into by the Company, the HK Company,
the PRC Companies, the Founders, the Founder Holdcos and Hillhouse. 
 “Shares” shall mean all Preferred Shares and all
Ordinary Shares of the Company. 
 “Shareholders Agreement” shall mean the Second Amended and Restated Shareholders
Agreement among the Investors, the Company, the HK Company, the PRC Companies, the Founder Holdcos, the Founders and certain other parties thereto to be entered into on or prior to the Closing in substantially the form attached hereto as Exhibit
A. 
 “Subsidiary” or “subsidiary” shall mean, with respect to any subject entity (the
“subject entity”), (i) any company, partnership or other Person (x) more than 50% of whose shares or other interests entitled to vote in the election of directors or (y) more than a 50% interest in the profits or capital of such
entity are owned or controlled directly or indirectly by the subject entity or through one or more Subsidiaries of the subject entity, (ii) any entity whose assets, or portions thereof, are consolidated with the net earnings of the subject
entity and are recorded on the books of the subject entity for financial reporting purposes in accordance with IAS or U.S. GAAP, or (iii) any entity with respect to which the subject entity has the power to otherwise direct the business and
policies of that entity directly or indirectly through another subsidiary. Notwithstanding the above, as applied to the Company, the term “Subsidiary” or “subsidiary” includes the HK Company, the Ecommerce Company and the PRC
Companies. 

  
 Schedule II 

 “Tax” shall mean (i) in the PRC: (a) any national, provincial,
municipal, or local taxes, charges, fees, levies, or other assessments, including, without limitation, all net income (including enterprise income tax and individual income withholding tax), turnover (including value-added tax, business tax, and
consumption tax), resource (including urban and township land use tax), special purpose (including land value-added tax, urban maintenance and construction tax, and additional education fees), property (including urban real estate tax and land use
fees), documentation (including stamp duty and deed tax), filing, recording, tariffs (including import duty and import value-added tax), and estimated and provisional taxes, charges, fees, levies, or other assessments of any kind whatsoever,
(b) all interest, penalties (administrative, civil or criminal), or additional amounts imposed by any Governmental Authority in connection with any item described in clause (a) above, and (c) any form of transferee liability imposed
by any Governmental Authority in connection with any item described in clauses (a) and (b) above, and (ii) in any jurisdiction other than the PRC: all similar liabilities as described in clause (i)(a) and (i)(b) above. 

“Transaction Documents” shall mean this Agreement, the Shareholders Agreement, the Restated M&A, the exhibits attached to
any of the foregoing and any other document, certificate, and agreement delivered in connection with the transactions contemplated hereby and thereby. 

“US$” shall mean the lawful currency of the United States of America. 

“U.S. GAAP” shall mean the generally accepted accounting principles in the United States. 

“Warrantors” shall mean the Founders, the Founder Holdcos and the Group Companies. 

  
 Schedule II 

 Schedule III 

Representations and Warranties of The Warrantors. 

1.    Organization, Good Standing and Qualification. 

(a)    Each of the Company and the HK Company duly organized, validly existing and in good standing under, and by virtue
of, the laws of the place of its incorporation or establishment and has all requisite power and authority to own its properties and assets and to carry on its business as now conducted and as presently proposed to be conducted. Each of the Company
and the HK Company is qualified to do business and is in good standing in each jurisdiction where failure to be so qualified would have a Material Adverse Effect on its financial condition, business, prospects or operations. 

(b)    Each of the PRC Companies is a company duly organized and existing under the laws of the PRC, and has all powers
and all governmental licenses, permits, Governmental Authorizations, consents and approvals required to carry on its business as now conducted. Each of the PRC Companies has paid all such governmental fees, taxes and stamp duty required to be paid
by it under applicable PRC and other laws prior to or upon the Closing. Copies of the business license, articles of association, and other organizational documents of each of the PRC Companies, as amended to date, have been delivered to the
Investors and are true, correct and complete and are in full force and effect. 
 2.    Due Authorization. Each
Warrantor has all requisite power and authority to execute and deliver the Transaction Documents to which it/he is a party and to carry out and perform its obligations thereunder. All action on the part of each Warrantor (and as applicable, its
respective officers, directors and shareholders) necessary for the authorization, execution and delivery of each Transaction Document, the authorization, issuance, reservation for issuance and delivery of all of the Purchased Shares and the
Conversion Shares, and, as applicable, the performance of their respective obligations under each Transaction Document and all other agreements, instruments and documents executed and delivered in connection with the transactions contemplated
hereby, has been taken or will be taken prior to the Closing. The Transaction Documents are valid and binding obligations of each Group Company, enforceable in accordance with their respective terms, subject as to enforcement of remedies to
applicable bankruptcy, insolvency, moratorium, reorganization and similar laws affecting creditors’ rights generally and to general equitable principles. The Purchased Shares and the Conversion Shares are not subject to any preemptive rights,
rights of first refusal, or liens of any kind except for rights imposed under the Restated M&A and/or the Transaction Documents. 

3.    Capitalization. The authorized share capital of the Company will consist of the following immediately prior
to the Closing: 
 (a)    Ordinary Shares. A total of 4,251,747,715 authorized Ordinary Shares of which
764,442,722 shares are issued and outstanding. 

  
 Schedule III 

 (b)    Preferred Shares. A total of 748,252,285 authorized
Preferred Shares, (i) 191,378,675 of which are designated as Series Seed Preferred Shares with par value US$0.00001 each and all of which issued and outstanding; (ii) 66,667,000 of which are designated as Series
A-1 Preferred Shares with par value US$0.00001 each and all of which issued and outstanding; (iii) 131,987,050 of which are designated as Series A-2 Preferred Shares
with par value US$0.00001 each and all of which issued and outstanding; (iv) 14,503,820 of which are designated as Series B-1 Preferred Shares with par value US$0.00001 each and all of which issued and
outstanding; (v) 171,289,239 of which are designated as Series B-2 Preferred Shares with par value US$0.00001 each and all of which issued and outstanding; (vi) 85,351,118 of which are designated as Series B-3 Preferred Shares with par value US$0.00001 each and all of which issued and outstanding; (vii) 87,075,383 of which are designated as Series B-3+ Preferred Shares with par
value US$0.00001 each, but none of which are issued or outstanding. 
 (c)    Options, Warrants, Available
Shares. The Company has made available and free of any Liens (i) up to 87,075,383 Series B-3+ Preferred Shares for issuance and sale under this Agreement; (ii) 748,252,285 Ordinary Shares representing
the Conversion Shares, and (iii) 211,570,000 Ordinary Shares reserved for issuance under the Employee Share Option Plan. Other than with respect to the Purchased Shares, the Conversion Shares, and Employee Share Option Plan, there are no options,
warrants, conversion privileges or other rights or agreements outstanding or under which the Company is or may become obligated to issue any securities of any class or series except as set forth above and except for the rights imposed under the
Restated M&A and in the Transaction Documents. Apart from the exceptions noted in this Section 3, none of the Company’s outstanding shares, and no shares issuable upon exercise, conversion, or exchange of any
outstanding options or other shares issuable by the Company, are subject to any preemptive rights, rights of first refusal, or other rights to purchase such shares (whether in favor of the Company or any other Person), pursuant to any agreement or
commitment to which the Company is a party or of which the Company is aware, except for the rights imposed under the Restated M&A and in the Transaction Documents. 

(d)    Outstanding Security Holders. Section 3(d) of the Disclosure Schedule sets forth a
complete list of all outstanding shareholders, option holders and other security holders of the Company as of the date hereof. 

4.    Subsidiaries (General). The Company does not presently own or control, directly or indirectly, any interest
in any other corporation, partnership, trust, joint venture, association, or other Person, except for one hundred percent (100%) of the equity interests in the HK Company who directly owns one hundred percent (100%) of the equity interests in the
Ecommerce Company. The Company was formed solely to acquire and hold an equity interest in the HK Company and since its formation has not engaged in any business and has not incurred any liability except in the ordinary course of acquiring, managing
and disposing of its equity interest in the HK Company. The HK Company was formed solely to acquire and hold the equity interests in the Ecommerce Company and has no other business, except as contemplated by this Agreement, and has not incurred any
Liability other than annual filing, maintenance and other standard fees. Each of the PRC Companies (other than Yatsen Pet Products) is engaged primarily in the Business, and has no other activities outside its permitted business scope. All the
Proprietary Rights, business contracts and employees of Yatsen Pet Products have been transferred to Ecommerce Company prior to the Closing. Yatsen Pet Products has not engaged in any actual business activities. 

5.    PRC Companies. Except as disclosed in Section 5 of the Disclosure Schedule: 

(a)    The registered capital of the Ecommerce Company is fully paid as required under its articles of association and one
hundred percent (100%) of the equity interest of the Ecommerce Company is duly vested in the HK Company as the sole investor in and owner of the Ecommerce Company in accordance with applicable PRC rules and regulations. 

  
 Schedule III 

 (b)    The registered capital of the Cosmetic Company is fully paid as
required under its articles of association and one hundred percent (100%) of the equity interest of the Cosmetic Company is duly vested in the Ecommerce Company as the sole investor in and owner of the Cosmetic Company in accordance with applicable
PRC rules and regulations. 
 (c)    There are no outstanding rights, or commitments made by each of the PRC Companies
or any of its investors and owners, to issue, purchase or sell any equity interest in each of the PRC Companies. 

(d)    There are no bonds, debentures, notes or other indebtedness of any of the PRC Companies having the right to vote
(or convertible into, or exchangeable for, securities having the right to vote) on any matters on which holders of equity interests of each of the PRC Companies may vote. There are no voting trusts, shareholder agreements, proxies or other
agreements or understandings in effect with respect to the voting or transfer of any of the equity interests to which of any of the PRC Companies is a party or is otherwise bound. 

(e)    Each of the PRC Companies does not maintain any offices, branches or subsidiaries except for its registered office.

 (f)    The incorporation documents relating to each of the PRC Companies are valid and have been duly approved or
issued (as applicable) by the appropriate PRC authorities and are valid and in full force. 
 (g)    All consents,
approvals, Governmental Authorizations, permits or licenses required under PRC laws for the due and proper establishment and operation of each of the PRC Companies as currently operated, or contemplated to be operated, have been duly obtained from
the appropriate PRC authorities and are in full force and effect. 
 (h)    All filings and registrations with the PRC
authorities required in respect of each of the PRC Companies and its operations, including the registrations with the Ministry of Commerce (“MOFCOM”), the State Administration for Market Regulations, the State Administration for
Foreign Exchange (“SAFE”), tax bureau, customs authorities, product registration authorities and health regulatory authorities, as applicable, have been duly completed in accordance with the relevant rules and regulations, including
all required registrations conducted pursuant to Circular 37. 
 (i)    None of the PRC Companies has received any
letter or notice from any relevant authority notifying each of the PRC Companies of the revocation of any Governmental Authorizations, permits or licenses issued to it for non-compliance or the need for
compliance or remedial actions in respect of the activities carried out directly or indirectly by each of the PRC Companies. 

(j)    Each of the PRC Companies has been conducting and will conduct its business activities within the permitted scope
of business or is otherwise operating its business in full compliance with all relevant legal requirements, including producing, processing and/or distributing products with all requisite licenses, permits and approvals granted by competent PRC
authorities. 

  
 Schedule III 

 (k)    No Group Company has any reason to believe that any Governmental
Authorizations, licenses or permits requisite for the conduct of any part of each of the PRC Companies’ business which are subject to periodic renewal will not be granted or renewed by the relevant PRC authorities.
Section 5(k) of the Disclosure Schedule lists all lines of business in which each of the PRC Companies participate or are engaged. 

(l)    All applicable laws and regulations with respect to the opening and operation of foreign exchange accounts and
foreign exchange activities of each of the PRC Companies have been fully complied with, and all requisite approvals from the SAFE in relation thereto have been duly obtained. 

(m)    With regard to employment and staff or labour management, each of the PRC Companies has complied with all
applicable PRC laws and regulations, including laws and regulations pertaining to welfare funds, social benefits, medical benefits, insurance, retirement benefits, pensions or the like. 

(n)    There are no outstanding stock options with respect to each of the PRC Companies. The name of each director and
officer of each of the PRC Companies on the date hereof, and the position held by each, are listed in Section 5(n) of the Disclosure Schedule. 

(o)    There are no other companies, partnerships, joint ventures, associations or other entities in which each of the PRC
Companies owns, of record or beneficially, any direct or indirect equity or other interest or any right (contingent or otherwise) to acquire the same. 

(p)    Except as set forth in Section 5(p) of the Disclosure Schedule, each of the PRC Companies
owns free and clear from all encumbrances and third party rights all properties and assets, including Proprietary Rights, necessary for its operations as presently conducted and as proposed to be conducted. 

6.    Valid Issuance of Purchased Shares.  

(a)    The Purchased Shares, when issued, sold and delivered in accordance with the terms of this Agreement, will be duly
authorized and validly issued, fully paid, non-assessable, and free of any Liens. The Conversion Shares have been duly and validly made available for issuance and, upon issuance will be duly and validly
issued, fully paid, non-assessable and free of any Liens upon issuance. 

(b)    All presently outstanding Ordinary Shares of the Company are duly and validly issued, fully paid and non-assessable and free of any Liens, and such Ordinary Shares, and all outstanding shares, options and other securities of the Company, have been issued in full compliance with the requirements of all applicable
securities laws and regulations, including the Securities Act, and all other antifraud and other provisions of applicable securities laws and regulations. 

7.    Financial Statements. The Company has provided the unaudited consolidated balance sheets, cash flow
statements and income statements of the PRC Companies as of and for the twelve-month period ended December 31, 2018 (“Financial Statements Date”) (all such financial statements being collectively referred to herein as the
“Financial Statements”). Such Financial Statements (a) accord with the books and records of the respective PRC Company, (b) are true, correct and complete and present fairly the financial condition and state of affairs of
the respective PRC Company at the date or dates therein indicated and the results of operations for the period or periods therein specified, and (c) have been prepared in accordance with the generally accepted accounting principles in the PRC
(“PRC GAAP”) applied on a consistent basis, except, as to the unaudited financial statements, for the omission of notes thereto and normal year-end audit adjustments. 

  
 Schedule III 

 8.    Liabilities. Except as described in
Section 8 of the Disclosure Schedule, no Group Company has any indebtedness for borrowed money, that it has directly or indirectly created, incurred, assumed, or guaranteed, or with respect to which the Group Company has
otherwise become directly or indirectly liable and none of the Group Companies is unable to pay its debts as and when such debts fall due or is subject to any insolvency proceedings or has had a receiver, liquidator or administrator appointed over
its assets. 
 9.    Title to Properties and Assets. Each Group Company has good and marketable title to all
respective properties and assets, in each case such property and assets are subject to no Liens. With respect to the property and assets it leases, each Group Company is in compliance with such leases and holds valid leasehold interests in such
assets free of any Liens. 
 10.    Activities since Financial Statements Date. Since the Statement Date, with
respect to any Group Company, there has not been any material change in the assets, liabilities, financial condition or operating results, except for changes in the ordinary course of business and changes necessary to consummate the restructuring of
the Group Companies as disclosed to the Investors. 
 11.    Intellectual Property; Status of Proprietary Rights.
Each Group Company (i) has independently developed and owns free and clear of all material claims, security interests, liens or other encumbrances, or (ii) has a valid right or license to use, all Proprietary Assets (as defined below),
including without limitation all Registered Intellectual Property (as defined below), necessary, material and appropriate for the Business and to the best knowledge of the Company, without any conflict with or infringement of the rights of others in
any material respect. For purpose of this Agreement, (i) “Proprietary Assets” shall mean all patents, patent applications, trademarks, service marks, trade names, domain names, copyrights, copyright registrations and applications
and all other rights corresponding thereto, inventions, databases and all rights therein, all computer software including all source code, object code, firmware, development tools, files, records and data, including all media on which any of the
foregoing is stored, formulas, designs, business methods, trade secrets, confidential and proprietary information, proprietary rights, know-how and processes, and all documentation related to any of the
foregoing; and (ii) “Registered Intellectual Property” means all Proprietary Assets of any Group Company, wherever located, that has been filed with or recorded by any government authority. 

12.    Contracts. 

(a)    Material Contracts and Obligations. All agreements, contracts, leases, licenses, instruments, commitments
(oral or written), indebtedness, liabilities and other obligations to which any Group Company is a party or by which it is bound that (i) are material to the conduct and operations of its business and properties; (ii) involve any of the
officers, consultants, directors, employees or shareholders of any Group Company; or (iii) obligate any Group Company to share, license or develop any product or technology are listed in Section 12 of the Disclosure
Schedule and have been provided to each of the Investors and their counsel. For purposes of this Section 12 “material” shall mean any agreement, contract, indebtedness, Liability, arrangement or other
obligation either (i) having an aggregate value, cost, Liability or amount of RMB4,000,000 or more, or (ii) not terminable upon no more than thirty (30) days’ notice without penalty or obligation. 

  
 Schedule III 

 (b)    Validity and Status. All the material contracts listed on
Section 12 of the Disclosure Schedule are legally valid and binding, in full force and effect, and enforceable in accordance with their respective terms against the parties thereto, and will not violate any applicable laws.
There is no existing default or breach by any party thereto and no Group Company has received any notice or claim or allegation of default or breach thereof from any party thereto, and the various transfers of assets, shares, equity interests,
capital, personnel, contracts and Proprietary Rights. 
 13.    Litigation. To the best knowledge of the
Warrantors, there is no Action pending or currently threatened against any Founder, any Founder Holdco, any Group Company, any Group Company’s activities, properties or assets or against any registered general managers or registered
supervisors, director or Key Employee of any Group Company in connection with such officer’s, director’s or Key Employee’s relationship with, or actions taken on behalf of, any Group Company. No Group Company is a party to or subject
to the provisions of any material order, writ, injunction, judgment or decree of any court or government agency and there is no material Action by any Group Company currently pending. 

14.    Governmental Consents. All consents, approvals, orders, authorizations or registrations, qualifications,
designations, declarations or filings with any Governmental Authority (“Governmental Authorizations”) on the part of each Group Company required in connection with the execution, delivery and performance of the Transaction Documents
and the consummation of the transactions contemplated herein have been obtained and are currently effective and in consummating such transactions, the Group Companies are in full compliance with the “Provisions for Foreign Investors to Merge
and Acquire Domestic Enterprises” promulgated by MOFCOM et.al. on August 8, 2006, amended on June 22, 2009 and amended from time to time. The offer, sale and issuance of the Purchased Shares and the Conversion Shares, in conformity
with the terms of this Agreement, are exempt from the registration and prospectus delivery requirements of the Securities Act and all other applicable securities laws and regulations. 

15.    Compliance with Other Instruments. No Group Company is in any material violation of any term of its
constitutional documents (the “Constitutional Documents”). The execution, delivery and due performance of and compliance with the Transaction Documents and the consummation of the transactions contemplated thereunder will not result
in any such violation under any Constitutional Documents or any other material agreements. 
 16.    Registration
Rights. Except as provided in the Shareholders Agreement, no Group Company has granted or agreed to grant any Person or entity any registration rights with respect to any of the securities of any Group Company. 

17.    Tax Matters. The Group Companies have paid or made provision for the payment of all taxes that have become
due pursuant to the applicable laws. There have been no examinations or audits of any tax returns or reports by any applicable governmental agency. 

  
 Schedule III 

 18.    Obligations of Management. Each Key Employee of each Group
Company is identified in Section 18 of the Disclosure Schedule and except for the part-time employees specified in Section 18 of the Disclosure Schedule, each such Key Employee is currently
devoting one hundred percent (100%) of his or her working time to the conduct of the business of a Group Company. To the best knowledge of the Warrantors, no Warrantor is aware that any such Key Employee is planning to work less than full time at a
Group Company in the future. To the best knowledge of the Warrantors and except as disclosed in Section 18 of the Disclosure Schedule, no such Key Employee directly or indirectly holds any interest in or is currently
working for a competitive enterprise, whether or not such Person is or will be compensated by such enterprise. 

19.    Employment Agreement, Invention Assignment and Confidentiality Agreement. Each of the Founders and Key
Employees shall have entered into a standard form employment agreement containing provisions of confidentiality, intellectual property rights assignment, non-compete and
non-solicitation obligations of the employee. 
 20.    Interested Party
Transactions. Except as disclosed in Section 20 of the Disclosure Schedule, no Founder, shareholder, officer, employee or director of a Group Company or any Affiliate of any such Person (each of the foregoing, an
“Interested Party”) has any agreement, understanding, or proposed transaction with, or is indebted to, any Group Company, nor is any Group Company indebted (or committed to make loans or extend or guarantee credit) to any of them.
Except as disclosed in Section 20 of the Disclosure Schedule, no Interested Party has any direct or indirect ownership interest in any firm or corporation with which a Group Company is affiliated or with which a Group
Company has a business relationship, or any firm or corporation that competes with a Group Company, except that any of the foregoing Persons may have less than one percent (1%) of record ownership interest in the Company or own less than one percent
(1%) of shares in publicly traded companies that may compete with a Group Company. No Affiliate of any officer or director of a Group Company is directly or indirectly interested in any material contract with a Group Company. No Interested Party has
had, either directly or indirectly, any interest in: (a) any Person which purchases from or sells, licenses or furnishes to a Group Company any goods, property, intellectual or other property rights or services; or (b) any contract or
agreement to which a Group Company is a party or by which it may be bound or affected. 
 21.    Disclosure. No
representation or warranty by any Warrantor in this Agreement or in any written statement or certificate furnished or to be furnished to the Investors pursuant to any Transaction Document contains or will contain any untrue statement of fact or
omits or will omit to state any fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances in which they are made, not misleading in any way. Each of the Warrantors has fully provided the
Investors with all the information that the Investors have requested for deciding whether to purchase the Purchased Shares and all information that could reasonably be expected to enable the Investors to make such decision. 

22.    Exempt Offering. The offer, sale and issuance of the Purchased Shares under this Agreement are exempt from
the registration requirements of the Act and from the registration or qualification requirements of any other applicable securities laws of any Governmental Authority, and the issuance of the Conversion Shares in accordance with the Restated
M&A, will be exempt from such registration or qualification requirements. 

  
 Schedule III 

 23.    Suppliers. Section 23 of
the Disclosure Schedule is a correct list of top ten (10) suppliers (by attributed expenses) (with related or affiliated Persons aggregated for purposes hereof) of the Group Companies for the year ending on December 31, 2018, together with
the aggregate amount of revenues received or expenses paid to such business partners during such periods. To the Knowledge of the Warrantors, each such supplier can provide sufficient and timely supplies of goods and services in order to meet the
requirements of the Group Companies’ Business consistent with prior practice. No Group Company has experienced or been notified of any shortage in goods or services provided by its suppliers or other providers and has no reason to believe that
any Person listed on Section 23 of the Disclosure Schedule would not continue to provide to, or purchase from, or cooperate with, respectively, or that it would otherwise alter its business relationship with, the Group
Companies at any time after the Closing on terms substantially similar to those in effect on the date hereof, in any case. There is not currently any dispute pending between any of the Group Companies and any Person listed on
Section 23 of the Disclosure Schedule. 
 24.    Insurance. There is no claim pending
under the insurance policies and bonds maintained by each Group Company as to which coverage has been questioned, denied or disputed. All premiums due and payable under all such policies and bonds have been timely paid, and each Group Company is
otherwise in compliance in all respects with the terms of such policies and bonds. All such policies and bonds are in full force and effect. 

25.    Anti-Bribery, Anti-Corruption, Anti-Money Laundering and Sanctions. Each Group Company and other Warrantors
and their Affiliates and their respective directors, officers, managers, employees, independent contractors, representatives, agents and other Persons acting on their behalf (collectively, “Representatives”) are and have been in
compliance with all applicable laws relating to anti-bribery, anti-corruption, anti-money laundering, record keeping and internal control laws (collectively, the “Compliance Laws”). Without limiting the foregoing, neither any Group
Company nor, any Representative has, directly or indirectly, offered, authorized, promised, condoned, participated in, consummated, or received notice of any allegation of, (a) the making of any gift or payment of anything of value to any
Public Official by any Person to obtain any improper advantage, affect or influence any act or decision of any such Public Official, or assist any Group Company in obtaining or retaining business for, or with, or directing business to, any Person;
(b) the taking of any action by any Person which (i) would violate the U.S. Foreign Corrupt Practices Act, as amended (“FCPA”), if taken by an entity subject to the FCPA, (ii) would violate the U.K. Bribery Act, if
taken by an entity subject to the U.K. Bribery Act, or (iii) could reasonably be expected to constitute a violation of any applicable Compliance Law; (c) the making of any false or fictitious entries in the books or records of any Group
Company by any Person; or (d) the using of any assets of any Group Company for the establishment of any unlawful or unrecorded fund of monies or other assets, or the making of any unlawful or undisclosed payment. 

  
 Schedule III 

 Schedule IV 

Disclosure Schedule 

  
 Schedule IV 

 Schedule V 

Covenants of the Warrantors 

Each of the Warrantors hereby jointly and severally covenants to the Investors as follows: 

1.    Use of Proceeds. In accordance with the budget and business plan approved by the Board in accordance with
Section 9 of the Shareholders Agreement, the Company shall use the proceeds from the issuance and sale of the Purchased Shares for capital expenditure, business expansion and working capital of the Company and its
subsidiaries, save as otherwise stipulated in this Agreement. Unless otherwise agreed to in writing by the Board (including the affirmative vote of the director appointed by the Investors, if applicable), no proceeds from the sale of the Purchased
Shares shall be used (i) in the purchase of any securities, (ii) in the investment of any other entities, (iii) in the payment of any debt of the Company or its subsidiaries, or (iv) in the repurchase or cancellation of
securities held by any shareholder of the Company (except the repurchase transactions stipulated Repurchase Agreement). The Company shall invest such proceeds in the Ecommerce Company, including increasing its registered capital. 

2.    Filing of the Restated M&A. The Company shall, and the Founders and the Founder Holdcos shall
cause the Company to obtain the duly filed and stamped Restated M&A within ten (10) days following the Closing and the evidence of which shall be delivered to the Investors. 

3.    Additional Covenants. Except as required by this Agreement or the Shareholders Agreement, no resolution of
the directors, owners, members, joint venture parties, or shareholders of any Group Company shall be passed, nor shall any contract or commitment be entered into prior to the Closing without the written consent of the Investors, except that the
Group Companies may carry on their respective businesses in the same manner as heretofore and may pass resolutions and enter into contracts and commitments in the ordinary course of business and consistent with their past practice. 

4.    Notice of Certain Events. If at any time before the Closing, any Warrantor comes to know of any material fact
or event which: 
 (a)    is in any way inconsistent with any of the representations and warranties of the Warrantors in
this Agreement; 
 (b)    suggests that any fact warranted by the Warrantors hereunder may not be as warranted or may be
misleading; or 
 (c)    might affect the willingness of a prudent investor to purchase the Purchased Shares on the
terms contained in the Transaction Documents or the amount of the consideration a prudent investor would be prepared to pay for the Purchased Shares, then the Warrantors shall immediately notify the Investors in writing, describing the fact or event
in reasonable detail.  

  
 Schedule V 

 5.    Use of Investors’ Name or Logo. Without
the prior written consent of the Investors, none of the parties shall use, publish, reproduce, or refer to the name of any of the Investors, their Affiliates and/or controlling persons (with respect to Hillhouse, such names shall include but not
limited to “Hillhouse”, “高瓴”, “Gaoling”, “Gao Ling”, “Lei Zhang”,
“张磊”; with respect to Banyan, such names shall include but not limited to “高榕”, “高榕资本”, “Banyan”, “Banyan Capital”, “Gaorong”, “Gaorong Capital”), or any similar name, trademark or logo in any discussion, documents or materials,
including without limitation for marketing or other purposes. 
 6.    Corporate Opportunity. The Group
Company hereby acknowledge that the Investors and their Affiliates (including investment funds, persons or accounts under the management of the Investor or their Affiliates) engage in hedge fund investment and private equity investment businesses.
The Investors and their Affiliates shall have the right to, and shall have no duty hereunder to refrain from, continue to carry on its normal course of business activities as professional investors. The Investors and their Affiliates may from time
to time have information on or knowledge of a business opportunity that a Group Company is financially able to undertake, is from its nature in the line or lines of one or more Group Company’s existing or prospective business and is a practical
advantage to it, and is one in which a Group Company has an interest or reasonable expectancy (the “Business Opportunity”). Such Business Opportunity may or may not be within the knowledge of the director appointed by the Investors.
The parties hereto agree, and shall procure that each of the Group Companies agrees, irrevocably that the director appointed by the Investors shall not be under any duty to disclose any Business Opportunity to the Company or any other Group Company,
or permit any Group Company to participate in any Business Opportunity, or to otherwise take advantage of any Business Opportunity, and hereby waives, to the extent permitted by law, any claim based on the corporate opportunity doctrine or otherwise
that could limit the Investors’ ability to benefit from information related to an actual or potential Business Opportunity or that would require the Investors or the director appointed by the Investors to disclose any such information to any
Group Company or offer any Business Opportunity to any Group Company. 
 7.    Tax Basis. The Warrantors hereby
undertake that all (but not less than all) the proceeds from the issuance and sale of the Purchased Shares shall be contributed into the Company, the HK Company and thereafter into the Ecommerce Company as registered capital, otherwise the
Warrantors shall indemnify the Investors against taxes or duties, in connection with the Investors’ sale of their respective shares, levied or imposed on the Investors by the relevant PRC tax authorities as the result of the tax base for such
shares determined by the relevant PRC tax authorities being less than the Purchase Price paid by the Investors solely due to the breach of the Warrantors’ obligations under this Section 7. 

8.    Employment Agreement, Proprietary Rights and Confidentiality Agreement. The Group Companies shall cause all
of their respective current employees to enter into employment agreements and proprietary rights and confidentiality agreement in standard form in compliance with the applicable laws and regulations. The Group Companies shall further cause all of
their respective future employees to enter into employment agreements and confidentiality and intellectual property rights agreements in standard form in compliance with the applicable laws and regulations. 

  
 Schedule V 

 9.    Regulatory Compliance. Each Warrantor shall comply with all
applicable laws and regulations in the PRC, including but not limited to applicable laws and regulations in connection with the operations of the Group Companies. Each Warrantor shall use its best efforts to cause all shareholders of each Group
Company, and any successor entity or controlled affiliate of any Group Company to, timely complete all required registrations and other procedures with applicable governmental authorities (including without limitation SAFE) as and when required by
applicable laws and regulations. The Warrantors shall ensure that, each entity described above and its respective shareholders are in compliance with such requirements and that,
to the extent permitted by applicable law, there is no barrier to repatriation of profits, dividends and other distributions from Ecommerce Company (or any successor entity) to the HK Company. 

10.    SAFE Registration. The Group Companies, the Founders and the Founder Holdcos shall complete, update and
maintain his/her registration with SAFE as required under Circular 37 in respect of his/her direct and indirect record and beneficial ownership of any shares or equity interest in the Company and each other Group Company on a timely and continuous
basis after the Closing. The Company shall promptly deliver to the Investors and its counsel’s satisfactory evidence for completion of such registration. 

11.    Permit and License. As soon as practicable after the Closing, the PRC Companies shall, and the Warrantors
shall cause the PRC Companies to, obtain all the permits and licenses and any similar authority necessary in full compliance with applicable laws for the conduct of their business as currently conducted and as proposed to be conducted, including but
not limited to filings of all the domestic non-special purpose cosmetic products produced by any Group Company or any third party entrusted by the Group Companies with the provincial Food and Drug
Administrations or any other Governmental Authorities with competent jurisdiction after the Closing. To the extent permitted by the applicable laws, each of the Group Companies and the Founders shall procure each of the Group Companies to,
(1) use its best efforts to maintain in a timely manner all requisite consents and permits for conducting the Business in compliance with all applicable laws, and (2) if so required by any applicable laws, obtain additional consents and
permits necessary for conducting the Business as soon as possible but in any event no later than the time limit required by the applicable PRC laws or the competent Government Authorities. 

12.    Intellectual Property Protection. The Group Companies shall establish and maintain appropriate intellectual
inspection system to protect the Proprietary Rights of the Group Companies. The Group Companies shall, and the Founders shall cause the Group Companies to fully comply with the laws and regulations in respect of the protection of the Proprietary
Rights and refrain from infringing the Proprietary Rights of other parties. 
 13.    Availability of Ordinary
Shares. The Company hereby covenants that at all times there shall be made available, free of any liens, for issuance and delivery upon conversion of the Purchased Shares such number of Ordinary Shares or other shares of share capital of the
Company as are from time to time issuable upon conversion of the Purchased Shares. 
 14.    Business of the Company
and the HK Company The business of the Company shall be restricted to the holding of shares or equity interest in the HK Company. The business of the HK Company shall be restricted to the holding of shares or equity interest in the
Ecommerce Company.  
 15.    Business of the PRC Companies. Prior to entering into any new
business other than those in the scope of the Business, each Warrantor shall use its best efforts and take all necessary actions to implement and carry out the new business plan approved by a majority of the Board in accordance with
Section 9 of the Shareholders Agreement, including, without limitation, hiring employees, renting office space, employing legal and technical consultants and undertaking other customary business activities. From the Closing
and until the new business plan is duly amended in accordance with all necessary procedures, the business of the PRC Companies shall be limited to the Business. 

  
 Schedule V 

 16.    Employee Matters. The PRC Companies shall comply with all
applicable PRC labor laws and regulations, including without limitation, laws and regulations pertaining to welfare funds, social benefits, medical benefits, insurance, retirement benefits, and pensions, especially, the PRC Companies shall
(i) as soon as practicable after the Closing, obtain the Work Permit for Foreign Employee (外国人工作许可证) for the Hong Kong employee(s) of the PRC Companies; and (ii) upon the request of the Investors, the PRC Companies shall pay and supplement the deficiency with respect to non-payment or under-payment of social insurance and housing fund contributions whether occurred before or after the Closing. 

17.    Tax Matters. The PRC Companies shall comply with all applicable PRC tax laws and regulations, including
without limitation, laws and regulations pertaining to income tax and value added tax. 
 18.    Accrual
Accounting. As soon as practicable after Closing, the Group Companies shall establish and maintain the accounting policies and financial system in full compliance with all applicable laws and regulations and to the Investors’ satisfaction.

 19.    Full-time Commitment. Each Founder undertakes and covenants to the Investors that, as long as he/she is
and remains an employee of any of the Group Companies, he/she shall commit all of his/her efforts to furthering the Business of the Group Companies and shall not, without the prior written consent of the Investors, either on his/her own account or
through any of his/her Affiliates, or in conjunction with or on behalf of any other Person, (i) possess, directly or indirectly, the power to direct or cause the direction of the management and business operation of any entity whether
(A) through the ownership of any equity interest in such entity, or (B) by occupying half or more of the board seats of the entity; or (C) by contract or otherwise; or (ii) devote time to carry out the business operation of any
other entity. 
 20.    Priority Investment Right. Within ten (10) years after the Closing, in the event
that any Founder intends to engage, invest, operate or develop any new business other than the business operated by the Group Companies or any new entities other than the Group Companies (the “New Business”), such Founder shall be
obligated to deliver the Investors a written notice stating the details of the New Business, and the Investors shall have the propriety rights on a pro rata basis to invest and participate in such New Business under the same terms and
conditions as applicable to other investors of the New Business. 
 21.    Executory Period Covenants. 

(d)    Access. Between the date hereof and the Closing, the Warrantors shall permit the Investors, or any
representative thereof, to (a) visit and inspect the properties of the Group Companies, (b) inspect the contracts, books of account, records, ledgers, and other documents and data of the Group Companies, (c) discuss the business,
affairs, finances and accounts of the Group Companies with officers and employees of the Group Companies, and (d) review such other information as the Investors reasonably request, in such a manner so as not to unreasonably interfere with their
normal operations, including but not limited to the Investors shall have received from the Company all documents and other materials requested by the Investors for the purpose of examining and determining the rights in and to any technology,
products and Proprietary Rights now used, proposed to be used in, or necessary to, the business as now conducted and proposed to be conducted by the Group Companies, and the status of its ownership rights in and to all such technology, products and
Proprietary Rights shall be satisfactory to the Investors in their sole discretion. 

  
 Schedule V 

 (e)    Covenants. Between the date hereof and the Closing, except
as the prior written consent of the Investors or the transactions contemplated under the Transaction Documents, each of the Group Companies shall (and the Warrantors shall cause each of the Group Companies to) (a) conduct its business in the
ordinary course consistent with past practice, as a going concern and in compliance with all applicable laws and all agreements, contracts, instruments and commitments (oral or written), (b) pay or perform its debts, taxes, and other obligations
when due, (c) maintain its assets in a condition comparable to their current condition, reasonable wear, tear and depreciation excepted, (d) use reasonable best efforts to preserve intact its current business organizations and keep
available the services of its current officers and employees and preserve its relationships with customers, suppliers and others having business dealings with it, (e) otherwise periodically report to the Investors concerning the status of its
business, operations and finance, and (f) take all actions reasonably necessary, to consummate the transactions contemplated by this Agreement promptly, including the taking of all reasonable acts necessary to cause all of the conditions
precedent of the Investors to be satisfied. 
 (f)    Information. From the date hereof until the Closing,
(a) the Warrantors shall promptly notify the Investors of any action, charge, claim, complaint, investigation. litigation, inquiry or other proceeding commenced or threatened in writing against any Warrantor, (b) the Warrantors shall
promptly notify the Investors of any breach, violation or non-compliance of any representation, warranty or covenant made by any Warrantors hereunder, and (c) the Warrantors will promptly provide the
Investors with copies of all correspondence and inquiries to and from, and all filings made with, any Governmental Authority with respect to the transactions contemplated hereby. 

(g)    Exclusivity. From the date hereof until the Closing or the termination date of this Agreement, other than
the transaction contemplated under the Series B-3 Purchase Agreement, the Warrantors shall not, and they shall not permit any of their representatives or any Group Company to, directly or indirectly solicit,
initiate or encourage any inquiries or proposals from, discuss or negotiate with, provide any non-public information to, or approve or authorize any transaction with any Person that would involve an investment
in, purchase of shares of, or acquisition of any Group Company or any material assets thereof or would be in substitution or an alternative for or would impede or interfere with the transactions contemplated hereby, unless with the prior written
consent of the Investors. The Warrantors shall, and shall cause their representatives and the other Group Companies to, immediately terminate all existing activities, discussions and negotiations with any third parties with respect to the foregoing,
other than the transaction contemplated under the Series B-3 Purchase Agreement, and if any of them hereafter receives any correspondence or communication that constitutes, or could reasonably be expected to
lead to, any such transaction they shall immediately give notice thereof (including the third party and the material terms of such transaction) to the Investors. 

  
 Schedule V 

 22.    Most Favored Investors. Without prejudice to the other
provisions herein or in the Transaction Documents, with respect to each Series B-1 Investor, Series B-2 Investor, Series B-3 Investor and Series B-3+ Investor, in the
event any Group Company grants, issues, or provides any existing shareholder (each, a “Relevant Person”) any right, interest, benefit, privilege or protection more favorable than those granted, and accruing, to such Series B-1
Investor, Series B-2 Investor, Series B-3 Investor or Series B-3+ Investor, such Group Company shall concurrently notify such Series B-1 Investor, Series B-2 Investor, Series B-3 Investor or Series B-3+ Investor of the same and grant, issue, or provide the same rights, interests, benefits, privileges and/or protections to such Series B-1 Investor, Series B-2 Investor, Series B-3 Investor or Series B-3+ Investor pari passu with such Relevant Person and each Party hereby agrees and consents to such changes or amendments to the Shareholders Agreement or the Restated Articles that are necessary in connection with
such grant, issuance and provision. Notwithstanding the foregoing, to avoid any doubt, the Series B-1 Investors, Series B-2 Investors and Series B-3 Investor shall not be entitled to the same rights, interests, benefits, privileges and/or protections of Series B-3+ Investors under Article 18 (Redemption) and Article
127 (Liquidation Preference) of the Company’s Restated Articles without the prior written consent of all the Series B-3+ Investors. 

23.    Other Issues in the Disclosure Schedule. As soon as practicable after the Closing and at any time upon the
request of the Investors, the relevant Group Companies, and the Founders shall, to the satisfaction of the Investors, resolve the issues in a practically reasonable manner, which are disclosed in the Disclosure Schedule or identified by the
Investors in the due diligence process but not expressly specified as a specific covenant under this Schedule V or a specific condition for the Closing under Section 4 of this Agreement. 

  
 Schedule V 

 Exhibit A 

Second Amended and Restated Shareholders Agreement 

  
 Exhibit A 

 Exhibit B 

Third Amended and Restated Memorandum and Articles of Association 

  
 Exhibit BEX-10.13

 Exhibit 10.13 

Execution Version 
  

 
 SERIES C PREFERRED SHARE
PURCHASE AGREEMENT 
 by and among 

YATSEN HOLDING LIMITED 

HH PDI HOLDINGS LIMITED 

CMC PANDORA HOLDINGS LIMITED 

ZHEN FUND COV LLC 
 VMG
PARTNERS IV, L.P. 
 VMG PARTNERS MENTORS CIRCLE IV, L.P. 

BANYAN PARTNERS FUND III, L.P. 

BANYAN PARTNERS FUND III-A, L.P. 

YELLOW BEE LIMITED 
 and

 THE OTHER PARTIES NAMED HEREIN 

July 26, 2019 
  

 

 SERIES C PREFERRED SHARE PURCHASE AGREEMENT 

This SERIES C PREFERRED SHARE PURCHASE AGREEMENT (this “Agreement”) is entered into on July 26, 2019 by and among: 

A.    Yatsen Holding Limited, an exempted company incorporated under the laws of the Cayman Islands (the
“Company”); 
 B.    Yatsen (HK) Limited, a limited liability company incorporated under
the laws of Hong Kong (the “HK Company”); 
 C.    The entities as set forth on Schedule A-1 (each, a “PRC Company” and collectively, the “PRC Companies”); 

D.    The Persons as set forth on Schedule A-2 (each, a
“Founder” and collectively, the “Founders”); 
 E.    The entities as set forth
on Schedule A-3 (each, a “Founder Holdco” and collectively, the “Founder Holdcos”); and 

F.    The entities as set forth on Schedule A-4 (the “Investors”, and each, an
“Investor”). 
 Each of the foregoing parties is referred to herein individually as a “Party” and
collectively as the “Parties”. 
 RECITALS: 

A.    Subject to the terms and conditions set forth in this Agreement, the Company desires to issue and sell to each
Investor certain Series C Preferred Shares and each Investor, severally but not jointly, desires to purchase such Series C Preferred Shares from the Company. 

B.    The Parties intend to enter into this Agreement and make the respective representations, warranties, covenants and
agreements set forth herein. 
 AGREEMENT 

NOW, THEREFORE, in consideration of the mutual promises, covenants and conditions hereinafter set forth, the Parties hereto agree as follows:

 1.    DEFINITIONS. 

1.1    Certain Defined Terms. As used in this Agreement, the following terms shall have the following respective
meanings: 
 “Action” shall mean any notice, charge, claim, action, complaint, petition, investigation, appeal, suit,
litigation, grievance, inquiry or other proceeding, whether administrative, civil, regulatory or criminal, whether at law or in equity, or otherwise under any applicable law, and whether or not before any mediator, arbitrator or Governmental
Authority. 

  
 1 

 “Affiliate” shall mean, in respect of a Person, any other Person that,
directly or indirectly, through one or more intermediaries, Controls, is Controlled by, or is under common Control with, such Person, and without limiting the generality of the foregoing, (a) in the case of a natural Person, shall include,
without limitation, such Person’s spouse, parents, children, siblings, mother-in-law and
father-in-law and brothers and sisters-in-law, (b) in the case of an Investor, shall
include (i) any Controlling shareholder of such Investor, (ii) any Person which has a direct or indirect Controlling interest in such Controlling shareholder referred to in (i) above (including, any general partner or limited partner,
or any fund manager thereof, if any) or any fund manager thereof; (iii) any Person that directly or indirectly Controls, is Controlled by, under common Control with, or is managed by such Investor, any Controlling shareholder or any fund
manager referred to in (i) and (ii) above, (iv) a child, brother, sister, parent, or spouse of any individual referred to in (ii) above, and (v) any trust Controlled by or held for the benefit of such Persons referred to in
(i) to (iv) above. For the avoidance of doubt, none of the Investors shall be deemed to be an Affiliate of any Group Company. 

“Agreement” shall have meaning ascribed to it in the preamble of this Agreement. 

“Banyan” shall mean Banyan Partners Fund III, L.P. and Banyan Partners Fund III-A.

 “Board” or “Board of Directors” shall mean the board of directors of the Company. 

“Business” shall mean the business of cosmetics E-commerce currently conducted and
proposed to be conducted by the Group Companies. 
 “Business Day” or “business day” shall mean any
day that is not a Saturday, Sunday, legal holiday or a day on which banks are required to be closed in Cayman Islands, Hong Kong or the PRC. 

“Business Plan” shall mean the Company’s consolidated annual budget and business plan as adopted by the Board of
Directors. 
 “Circular 37” shall mean the Notice on Relevant Issues Concerning Foreign Exchange Administration for
Domestic Residents to Engage in Overseas Financing and Round Trip Investment via Overseas Special Purpose Companies
(《国家外汇管理局关于境内居民通过境外特殊目的公司境外投融资及返程投资外汇管理有关问题的通知》
) issued by SAFE on July 4, 2014, and its amendment and interpretation promulgated by SAFE from time to time. 

“Class A Ordinary Shares” shall mean the class A ordinary shares of the Company with a par value of
US$0.00001 each. 
 “Class B Ordinary Shares” shall mean the class B ordinary shares of the Company with
a par value of US$0.00001 each. 
 “Closing” shall have the meaning ascribed to it in Section 2.2. 

“CMC” shall mean CMC Pandora Holdings Limited. 

  
 2 

 “Company” shall have the meaning ascribed to it in the preamble of this
Agreement. 
 “Compliance Laws” shall have the meaning ascribed to it in Section 3.25. 

“Contract” shall mean, a contract, agreement, understanding, indenture, note, bond, loan, instrument, lease, mortgage,
franchise, license, commitment, purchase order, and other legally binding arrangement, whether written or oral. 

“Control” shall mean the power or authority, whether exercised or not, to direct the business, management and policies of a
Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise; provided, that such power or authority shall conclusively be presumed to exist upon possession of beneficial ownership or power to direct
the vote of more than fifty percent (50%) of the votes entitled to be cast at a meeting of the members or shareholders of such Person or power to control the composition of a majority of the board of directors or the equivalent body of such Person
The terms “Controlling” and “Controlled” have meanings correlative to the foregoing. 
 “Control
Documents” means the following Contracts to be entered into prior to or on the Closing: (i) the Exclusive Business Cooperation Agreement
(独家业务合作协议) entered into by and between Ecommerce Company and the Domestic
Company, (ii) the Exclusive Option Agreement (独家购买权协议) entered into by
and among Ecommerce Company, the Domestic Company and all of the shareholders of the Domestic Company, (iii) the Proxy Agreement (委托协议) and Power of Attorney (授权委托书) entered
into by and the among Ecommerce Company, the Domestic Company and the shareholders of the Domestic Company, (iv) the Equity Pledge Agreement
(股权质押协议) entered into by and among Ecommerce Company, the Domestic Company and the
shareholders of the Domestic Company and (v) the Spousal Consent (配偶同意函) to be signed
by the spouse of each shareholder of the Domestic Company, each as amended from time to time. 
 “Conversion Shares”
shall mean Class A Ordinary Shares issuable upon conversion of the Preferred Shares. 
 “Disclosing Party” shall have
the meaning ascribed to it in Section 9.4. 
 “Disclosure Schedule” shall have the meaning ascribed to it in
Section 3. 
 “Employee Share Option Plan” or “ESOP” shall mean the employee share option plan of the
Company adopted by the shareholders resolutions of the Company on September 5, 2018 and such other arrangements, contracts, or plans as are recommended by management and approved by the Board, with the written approval of the Majority Preferred
Holders (as defined in the Shareholders Agreement and Restated M&A), in accordance with the Shareholders Agreement and Restated M&A. 

“Equity Securities” shall mean, with respect to any Person that is a legal entity, any and all shares of capital stock,
membership interests, units, profits interests, ownership interests, equity interests, registered capital, and other equity securities of such Person, and any right, warrant, option, call, commitment, conversion privilege, preemptive right or other
right to acquire any of the foregoing, or security convertible into, exchangeable or exercisable for any of the foregoing, or any Contract providing for the acquisition of any of the foregoing. 

“Financial Statements” shall have the meaning ascribed to it in Section 3.7. 

  
 3 

 “Financial Statements Date” shall have the meaning ascribed to it in
Section 3.7. 
 “Founder” and “Founders” shall have the meaning ascribed to it in the preamble of
this Agreement. 
 “Founder Holdco” shall have the meaning ascribed to it in the preamble of this Agreement. 

“Governmental Authority” shall mean any nation or government, or any federation, province or state or any other political
subdivision thereof; any entity, authority or body exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government, including any government authority, agency, department, board, commission or
instrumentality of the PRC, the Cayman Islands, Hong Kong or any other country, or any political subdivision thereof, any court, tribunal or arbitrator, and any self-regulatory organization. 

“Governmental Authorizations” shall have the meaning ascribed to it in Section 3.14. 

“Group Companies” shall mean, collectively, the Company, the HK Company, the PRC Companies, another Person (except
individuals) Controlled by the Company and their respective Subsidiaries from time to time (each a “Group Company”), unless the text specifically indicates otherwise. 

“Hong Kong” shall mean the Hong Kong Special Administrative Region of the People’s Republic of China. 

“Hillhouse” shall mean HH PDI Holdings Limited, an exempted company incorporated under the laws of the Cayman Islands. 

“HK Company” shall have the meaning ascribed to it in the preamble of this Agreement. 

“HKIAC Rules” shall have the meaning ascribed to it in Section 10.14(a). 

“IAS” shall mean the applicable International Accounting Standards published by the International Accounting Standards Board,
as amended from time to time. 
 “Indemnifiable Loss” shall mean, with respect to any Person, any action, claim, cost,
damage, deficiency, diminution in value, disbursement, expense, liability, loss, obligation, penalty, settlement, suit, or tax of any kind or nature, together with all interest, penalties, legal, accounting and other professional fees and expenses
reasonably incurred in the investigation, collection, prosecution and defense of claims and amounts paid in settlement, that may be imposed on or otherwise incurred or suffered by such Person, whether directly or indirectly. 

“Interested Party” shall have the meaning set forth in Section 3.20. 

“Investors” or “Investor” shall have the meaning ascribed to it in the preamble of this Agreement. 

“Key Employee” shall mean each individual listed in Exhibit F-1. 

  
 4 

 “Liabilities” or “Liability” shall mean, with respect to
any Person, all debts, obligations, liabilities owed by such Person of any nature, whether accrued, absolute, contingent or otherwise, and whether due or to become due. 

“Lien” means any mortgage, pledge, claim, security interest, encumbrance, title defect, lien, charge, easement, adverse
claim, restrictive covenant, or other restriction or limitation of any kind whatsoever, including any restriction on the use, voting, transfer, receipt of income, or exercise of any attributes of ownership. 

“Management Rights Letter” shall mean the management rights letter to be executed by the Company and the applicable Investor
on or prior to the Closing, which shall be in substantially the form attached hereto as Exhibit D. 
 “Material Adverse
Effect” shall mean any (a) event, occurrence, fact, condition, change or development that has had, has, or could reasonably be expected to have a material adverse effect on the business, properties, assets, employees, operations,
results of operations, condition (financial or otherwise), prospects or liabilities of the Group Companies taken as a whole, (b) material impairment of the ability of any Warrantor to perform the material obligations of such Person hereunder or
under any other Transaction Documents, as applicable, or (c) material impairment of the validity or enforceability of this Agreement or any other Transaction Document against any Group Company, Founder or Founder Holdco. 

“MOFCOM” shall have the meaning ascribed to it in Section 3.5(g). 

“Non-Disclosing Parties” shall have the meaning ascribed to it in Section 9.4.

 “Ordinary Shares” shall mean, collectively, the Class A Ordinary Shares and the Class B Ordinary Shares. 

“Original Purchase Price” shall mean the per share price of US$0.5644 at which the Investors have agreed to purchase, and the
Company has agreed to sell and issue, the Series C Preferred Shares under this Agreement. 
 “Person” shall mean any
individual, sole proprietorship, partnership, limited partnership, limited liability company, firm, joint venture, estate, trust, unincorporated organization, association, corporation, institution, public benefit corporation, entity or governmental
or regulatory authority or other enterprise or entity of any kind or nature. 
 “PRC” shall mean the People’s Republic
of China, but solely for purposes of this Agreement and the other Transaction Documents, excluding Hong Kong, the Macau Special Administrative Region and the Islands of Taiwan. 

“PRC Companies” and “PRC Company” shall have the meaning ascribed to it in the preamble of this Agreement.

 “PRC GAAP” shall have the meaning set forth in Section 3.7. 

“Preferred Shares” shall mean, collectively, the Series Seed Preferred Shares, the Series
A-1 Preferred Shares, the Series A-2 Preferred Shares, the Series B-1 Preferred Shares, the Series
B-2 Preferred Shares, the Series B-3 Preferred Shares, the Series B-3+ Preferred Shares and the Series C Preferred Shares. 

  
 5 

 “Prior Financing Documents” shall mean, collectively, the transaction
documents entered into by and among the Company, any other Warrantor and any holder of Preferred Shares in connection with the issuance and allotment of any Preferred Shares to such holder prior to the date hereof. 

“Proprietary Rights” shall mean any and all worldwide, international, PRC, or foreign registered and unregistered patents,
all patent rights and all applications therefore and all reissues, re-examinations, continuations, continuations-in-part,
divisions, and patent term extensions thereof, inventions (whether patentable or not), discoveries, improvements, concepts, innovations, industrial models, registered and unregistered copyrights, copyright registrations and applications,
author’s rights, works of authorship (including artwork of any kind and software of all types in whatever medium, inclusive of computer programs, source code, object code and executable code, and related documentation), URLs, web sites, web
pages and any part thereof, technical information, know-how, trade secrets, drawings, designs, design protocols, specifications for parts and devices, quality assurance and control procedures, design tools,
manuals, research data concerning historic and current research and development efforts, including the results of successful and unsuccessful designs, databases and proprietary data, proprietary processes, proprietary rights, technology,
engineering, discoveries, formulae, algorithms, operational procedures, trade names, trade dress, registered and unregistered trademarks, domain names, service marks, mask works, and registrations and applications therefore, the goodwill of the
business symbolized or represented by the foregoing, customer lists and other proprietary information and common law rights. 

“Purchased Shares” shall have the meaning ascribed to it in Section 2.1. 

“Qualified IPO” shall mean a public offering of Ordinary Shares of the Company (or securities representing such Ordinary
Shares) with net proceeds (excluding underwriting discounts, commissions and stock transfer taxes applicable to a sale of securities to the Company) of at least US$145,440,000 and an implied pre-money valuation of US$1,454,400,000 or more in the
United States of America, or in a similar public offering of Ordinary Shares in a jurisdiction and on an internationally recognized securities exchange or inter-dealer quotation system outside of the United States of America, including The Stock
Exchange of Hong Kong Limited, provided that such public offering is equivalent to the aforementioned in terms of valuation and offering proceeds. 

“Restated M&A” shall mean the Fourth Amended and Restated Memorandum and Articles of Association of the Company in the
form attached as Exhibit A hereto. 
 “Representatives” shall have the meaning ascribed to it in Section 3.25.

 “RMB” shall mean the lawful currency of the PRC. 

“SAFE” shall have the meaning ascribed to it in Section 3.5(g). 

“Securities Act” shall mean the U.S. Securities Act of 1933, as amended. 

“Senior Management” shall mean each individual listed in Exhibit F-2. 

“Series Seed Preferred Shares” shall mean the Company’s series seed preferred shares, par value US$0.00001 per share.

  
 6 

 “Series A-1 Preferred Shares” shall
mean the Company’s series A-1 preferred shares, par value US$0.00001 per share. 

“Series A-2 Preferred Shares” shall mean the Company’s series A-2 preferred shares, par value US$0.00001 per share. 
 “Series
B-1 Preferred Shares” shall mean the Company’s series B-1 preferred shares, par value US$0.00001 per share. 

“Series B-2 Preferred Shares” shall mean the Company’s series B-2 preferred shares, par value US$0.00001 per share. 
 “Series
B-3 Preferred Shares” shall mean the Company’s series B-3 preferred shares, par value US$0.00001 per share. 

“Series B-3+ Preferred Shares” shall mean the Company’s series B-3+ preferred shares, par value US$0.00001 per share. 
 “Series C Preferred Shares”
shall mean the Company’s series C preferred shares, par value US$0.00001 per share. 
 “Shares” shall mean,
collectively, the Preferred Shares and the Ordinary Shares. 
 “Shareholders Agreement” shall mean the Third Amended and
Restated Shareholders Agreement among the Investors, the Company, the HK Company, the PRC Companies, the Founder Holdcos, the Founders and certain other parties thereto to be entered into on or prior to the Closing in substantially the form attached
hereto as Exhibit B. 
 “Restricted Share Agreement” shall mean the Second Amended and Restated Restricted Share
Agreement among the Investors, the Company, the Founder Holdcos, the Founders and certain other parties thereto to be entered into as of the Closing in substantially the form attached hereto as Exhibit C. 

“Subsidiary” or “subsidiary” shall mean, with respect to any subject entity (the “subject
entity”), (i) any company, partnership or other Person (x) more than 50% of whose shares or other interests entitled to vote in the election of directors or (y) more than a 50% interest in the profits or capital of such entity are
owned or controlled directly or indirectly by the subject entity or through one or more Subsidiaries of the subject entity, (ii) any entity whose assets, or portions thereof, are consolidated with the net earnings of the subject entity and are
recorded on the books of the subject entity for financial reporting purposes in accordance with IAS or U.S. GAAP or PRC GAAP, or (iii) any entity with respect to which the subject entity has the power to otherwise direct the business and
policies of that entity directly or indirectly through another subsidiary. Notwithstanding the above, as applied to the Company, the term “Subsidiary” or “subsidiary” includes the HK Company, the Ecommerce Company and the PRC
Companies. 

  
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 “Tax” shall mean (i) in the PRC: (a) any national, provincial,
municipal, or local taxes, charges, fees, levies, or other assessments, including, without limitation, all net income (including enterprise income tax and individual income withholding tax), turnover (including value-added tax, business tax, and
consumption tax), resource (including urban and township land use tax), special purpose (including land value-added tax, urban maintenance and construction tax, and additional education fees), property (including urban real estate tax and land use
fees), documentation (including stamp duty and deed tax), filing, recording, tariffs (including import duty and import value-added tax), and estimated and provisional taxes, charges, fees, levies, or other assessments of any kind whatsoever,
(b) all interest, penalties (administrative, civil or criminal), or additional amounts imposed by any Governmental Authority in connection with any item described in clause (a) above, and (c) any form of transferee liability imposed
by any Governmental Authority in connection with any item described in clauses (a) and (b) above, and (ii) in any jurisdiction other than the PRC: all similar liabilities as described in clause (i)(a) and (i)(b) above. 

“Transaction Documents” shall mean this Agreement, the Shareholders Agreement, the Restated M&A, the Restricted Share
Agreement, the Management Rights Letter, the Control Documents, the exhibits attached to any of the foregoing and any other document, certificate, and agreement delivered in connection with the transactions contemplated hereby and thereby. 

“US$” shall mean the lawful currency of the United States of America. 

“U.S. GAAP” shall mean the generally accepted accounting principles in the United States. 

“VMG” means VMG Partners IV, L.P. and VMG Partners Mentors Circle IV, L.P.. 

“Warrantors” shall mean the Founders, the Founder Holdcos and the Group Companies. 

“Zhen Fund” means Zhen Fund COV LLC. 

1.2    Warrantor Obligations. Where this Agreement or any other Transaction Document places an obligation on any
Warrantor, each other Warrantor shall use its best efforts to cause the obligated Warrantor to perform such obligation. 

1.3    Exhibits and Schedules. The following annex, schedule and exhibits are a part of this Agreement and hereby
are deemed incorporated herein by reference: 
  

			
	Schedule A-1	  	PRC Companies
		
	Schedule A-2	  	Founders
		
	 Schedule A-3
  

Schedule A-4
  

Schedule B
	  	 Founder Holdcos
  

Investors
  

Capitalization Table

		
	Schedule C	  	Disclosure Schedule
		
	Schedule D	  	Notices
		
	Exhibit A	  	Fourth Amended and Restated Memorandum of Articles of Association of the Company
		
	Exhibit B	  	Shareholders Agreement
		
	Exhibit C	  	Restricted Share Agreement
		
	Exhibit D	  	Management Rights Letter
		
	Exhibit E	  	Employment Agreement and Confidentiality, Non-Competition and Proprietary Rights Agreement
		
	Exhibit F-1	  	List of Key Employees
		
	Exhibit F-2	  	List of Senior Management

  
 8 

 2.    AGREEMENT TO PURCHASE AND SELL SHARES AT THE CLOSING. 

2.1    Agreement to Purchase and Sell. Subject to the terms and conditions hereof, at the Closing, the Company shall
issue and sell to the Investors, and the Investors, severally but not jointly, shall purchase from the Company at the Original Purchase Price, up to an aggregate of 206,907,594 Series C Preferred Shares in the amount set forth opposite the name of
each Investor in Schedule A-4 (the “Purchased Shares”). Each of the Investors shall pay the purchase price set forth opposite the name of such Investor in Schedule A-4 for its Purchased Shares by wire transfer of immediately available funds to the bank account designated in writing by the Company and delivered to the Investors at least five (5) Business Days prior to
the Closing. 
 2.2    Closing. Subject to the fulfillment of the conditions to the closing as set forth in
Section 5 and Section 6, the purchase and sale of the Purchased Shares shall take place remotely via the exchange of documents and signatures, on a date specified by the Parties, or at such other time and place as the Company and the
Investors may mutually agree upon, which date shall be no later than three (3) Business Days after the satisfaction or waiver of each condition to the closing as set forth in Section 5 and Section 6 (the “Closing”).
The Company’s shareholding structure immediately prior and after the Closing shall be as set forth in the Company’s capitalization table attached hereto as Schedule B. 

2.3    Deliveries. At the Closing, the Company shall deliver the following items to each of the Investors: 

(a)    a certified true copy of the register of members of the Company as at the date of the Closing reflecting such
Investor’s ownership of the respective Purchased Shares, certified by the registered agent of the Company to be a true and complete copy thereof; 

(b)    a certified true copy of the share certificate to such Investor representing the Purchased Shares purchased by such
Investor, with the original (duly signed and sealed for and on behalf of the Company) to be delivered to such Investor within ten (10) Business Days after the Closing; 

(c)    a compliance certificate dated as of the Closing signed by each Warrantor or a duly authorized representative of
each Warrantor, as applicable, certifying that all of the conditions set forth in Section 5 have been fulfilled, and attaching and certifying as true and complete a copy of the Company’s Restated M&A as in effect as of the Closing;

 (d)    a certificate of good standing issued by the Registrar of Companies of the Cayman Islands dated no earlier
than ten (10) Business Days prior to the Closing certifying that the Company has been duly incorporated, has paid all required fees and taxes, and is validly existing and in good standing under the laws of the Cayman Islands; and 

  
 9 

 (e)    the resolutions of the Board, and if necessary, the
shareholders’ resolutions of the applicable Group Companies approving the Transaction Documents and the transactions contemplated herein. 
  

	3.	 REPRESENTATIONS AND WARRANTIES OF THE WARRANTORS. 

Unless specifically indicated otherwise, the Warrantors hereby jointly and severally represent and warrant to the Investors that the statements
in this Section 3, except as set forth in the Disclosure Schedule (the “Disclosure Schedule”) attached to this Agreement as Schedule C (the contents of which shall also be deemed to be representations and warranties
hereunder), are all true, correct and complete as of the date hereof and the date of the Closing. For purposes of this Section 3, any reference to a party’s “knowledge” means such party’s best knowledge after due and
diligent inquiries of officers, directors, and other employees of such party reasonably believed to have knowledge of the matter in question. 

3.1    Organization, Good Standing and Qualification. 

(a)    Each of the Company and the HK Company duly organized, validly existing and in good standing under, and by virtue
of, the laws of the place of its incorporation or establishment and has all requisite power and authority to own its properties and assets and to carry on its business as now conducted and as presently proposed to be conducted. Each of the Company
and the HK Company is qualified to do business and is in good standing in each jurisdiction where failure to be so qualified would have a Material Adverse Effect on its financial condition, business, prospects or operations. 

(b)    Each of the PRC Companies is a company duly organized and existing under the laws of the PRC, and has all powers
and all governmental licenses, permits, Governmental Authorizations, consents and approvals required to carry on its business as now conducted. Each of the PRC Companies has paid all such governmental fees, taxes and stamp duty required to be paid
by it under applicable PRC and other laws prior to or upon the Closing. Copies of the business license, articles of association, and other organizational documents of each of the PRC Companies, as amended to date, have been delivered to the
Investors and are true, correct and complete and are in full force and effect. 
 3.2    Due Authorization. Each
Warrantor has all requisite power and authority to execute and deliver the Transaction Documents to which it/he is a party and to carry out and perform its obligations thereunder. All action on the part of each Warrantor (and as applicable, its
respective officers, directors and shareholders) necessary for the authorization, execution and delivery of each Transaction Document, the authorization, issuance, reservation for issuance and delivery of all of the Purchased Shares and the
Conversion Shares, and, as applicable, the performance of their respective obligations under each Transaction Document and all other agreements, instruments and documents executed and delivered in connection with the transactions contemplated
hereby, has been taken or will be taken prior to the Closing. The Transaction Documents are valid and binding obligations of each Group Company, enforceable in accordance with their respective terms, subject as to enforcement of remedies to
applicable bankruptcy, insolvency, moratorium, reorganization and similar laws affecting creditors’ rights generally and to general equitable principles. The Purchased Shares and the Conversion Shares are not subject to any preemptive rights,
rights of first refusal, or liens of any kind except for rights imposed under the Restated M&A and/or the other Transaction Documents. 

  
 10 

 3.3    Capitalization. The authorized share capital of the
Company will consist of the following immediately prior to the Closing: 
 (a)    Ordinary Shares. A total of
4,044,840,121 authorized Ordinary Shares, (i) 3,130,264,924 of which are designated as Class A Ordinary Shares with par value US$0.00001 each and all of which issued and outstanding; (ii) 914,575,197 of which are designated as
Class B Ordinary Shares with par value US$0.00001 each and all of which issued and outstanding. 

(b)    Preferred Shares. A total of 955,159,879 authorized Preferred Shares, (i) 191,378,675 of which are
designated as Series Seed Preferred Shares with par value US$0.00001 each and all of which issued and outstanding; (ii) 66,667,000 of which are designated as Series A-1 Preferred Shares with par value
US$0.00001 each and all of which issued and outstanding; (iii) 131,987,050 of which are designated as Series A-2 Preferred Shares with par value US$0.00001 each and all of which issued and outstanding; (iv)
14,503,820 of which are designated as Series B-1 Preferred Shares with par value US$0.00001 each and all of which issued and outstanding; (v) 171,289,239 of which are designated as Series B-2 Preferred Shares with par value US$0.00001 each and all of which issued and outstanding; (vi) 85,351,118 of which are designated as Series B-3 Preferred Shares with par
value US$0.00001 each and all of which issued and outstanding, (vii) 87,075,383 of which are designated as Series B-3+ Preferred Shares with par value US$0.00001 each and all of which issued and outstanding,
and (viii) 206,907,594 of which are designated as Series C Preferred Shares with par value US$0.00001, but none of which are issued or outstanding. 

(c)    Options, Warrants, Available Shares. The Company has made available and free of any Liens (i) up to
206,907,594 Series C Preferred Shares for issuance and sale under this Agreement; (ii) 955,159,879 Class A Ordinary Shares representing the Conversion Shares, and (iii) 278,264,322 Class A Ordinary Shares reserved for issuance under the
Employee Share Option Plan. Other than with respect to the Purchased Shares, the Conversion Shares, and Employee Share Option Plan, there are no options, warrants, conversion privileges or other rights or agreements outstanding or under which the
Company is or may become obligated to issue any securities of any class or series except as set forth above and except for the rights imposed under the Transaction Documents. Apart from the exceptions noted in this Section 3.3, none of the
Company’s outstanding shares, and no shares issuable upon exercise, conversion, or exchange of any outstanding options or other shares issuable by the Company, are subject to any preemptive rights, rights of first refusal, or other rights to
purchase such shares (whether in favor of the Company or any other Person), pursuant to any agreement or commitment to which the Company is a party or of which the Company is aware, except for the rights imposed under the Transaction Documents. 

(d)    Outstanding Security Holders. Section 3.3(d) of the Disclosure Schedule sets forth a complete list of
all outstanding shareholders, option holders and other security holders of the Company as of the date hereof. 

  
 11 

 3.4    Subsidiaries (General). The Company does not presently own
or control, directly or indirectly, any interest in any other corporation, partnership, trust, joint venture, association, or other Person, except for one hundred percent (100%) of the equity interests in the HK Company who directly owns one hundred
percent (100%) of the equity interests in the Ecommerce Company. The Company was formed solely to acquire and hold an equity interest in the HK Company and since its formation has not engaged in any business and has not incurred any liability except
in the ordinary course of acquiring, managing and disposing of its equity interest in the HK Company. The HK Company was formed solely to acquire and hold the equity interests in the Ecommerce Company and has no other business, except as
contemplated by this Agreement, and has not incurred any Liability other than annual filing, maintenance and other standard fees. Each of the PRC Companies (other than Yatsen Pet Products) is engaged primarily in the Business, and has no other
activities outside its permitted business scope. All the Proprietary Rights, business contracts and employees of Yatsen Pet Products have been transferred to Ecommerce Company prior to the Closing. Yatsen Pet Products has not engaged in any actual
business activities. Section 3.4 of the Disclosure Schedule sets forth the accurate and complete corporate chart of the Group Companies and other Persons in which any Group Company or any Founder, directly or indirectly, holds any Equity
Securities, indicating the ownership and Control relationship, the nature of the legal entity each Person constitutes and the jurisdiction in which each Person was incorporated. 

3.5    PRC Companies. Section 3.5 of the Disclosure Schedule sets forth all Equity Securities of each Group
Company other than the Company, together with an accurate and complete list of the record and beneficiary owners of such Equity Securities. Except as disclosed in Section 3.5 of the Disclosure Schedule: 

(a)    Except as disclosed in Section 3.5(a) of the Disclosure Schedule, the registered capital of each PRC Company
is fully paid as required under its articles of association in accordance with applicable PRC rules and regulations. 

(b)    There are no outstanding rights, resolutions or commitments made by each of the PRC Companies or any of its
investors and owners, to issue, purchase or sell any Equity Securities in each of the PRC Companies. 
 (c)    There are
no bonds, debentures, notes or other indebtedness of any of the PRC Companies having the right to vote (or convertible into, or exchangeable for, securities having the right to vote) on any matters on which holders of equity interests of each of the
PRC Companies may vote. There are no voting trusts, shareholder agreements, proxies or other agreements or understandings in effect with respect to the voting or transfer of any of the equity interests to which of any of the PRC Companies is a party
or is otherwise bound. 
 (d)    Except as disclosed in Section 3.5(d) of the Disclosure Schedule, each of the PRC
Companies does not maintain any offices, branches or subsidiaries except for its registered office. 
 (e)    The
incorporation documents relating to each of the PRC Companies are valid and have been duly approved or issued (as applicable) by the appropriate PRC Governmental Authorities and are valid and in full force. 

(f)    All consents, approvals, Governmental Authorizations, permits or licenses required under PRC laws for the due and
proper establishment and operation of each of the PRC Companies as currently operated, or contemplated to be operated, have been duly obtained from the appropriate PRC Governmental Authorities and are in full force and effect. 

(g)    All filings and registrations with the PRC Governmental Authorities required in respect of each Founder, each of
the PRC Companies and its operations, including the registrations with the Ministry of Commerce of the PRC (“MOFCOM”), the State Administration for Market Regulation (or its predecessor), the State Administration for Foreign
Exchange of the PRC (“SAFE”), tax bureau, customs authorities, product registration authorities and health regulatory authorities, as applicable, have been duly completed in accordance with the relevant laws, rules and regulations,
including all required registrations conducted pursuant to Circular 37. 

  
 12 

 (h)    None of the PRC Companies has received any letter or notice from
any relevant Governmental Authority notifying it of the suspension, non-renewal or revocation of any Governmental Authorizations, permits or licenses issued to it for
non-compliance or other reason or the need for compliance or remedial actions in respect of the activities carried out directly or indirectly by each of the PRC Companies. 

(i)    Each of the PRC Companies has been conducting and will conduct its business activities within the permitted scope
of business or is otherwise operating its business in full compliance with all relevant legal requirements, including producing, processing and/or distributing products with all requisite licenses, permits and approvals granted by or filings with
the competent PRC Governmental Authorities. 
 (j)    No Group Company has any reason to believe that any Governmental
Authorizations, licenses or permits requisite for the conduct of any part of each of the PRC Companies’ business which are subject to periodic renewal will not be granted or renewed by the relevant PRC authorities. Section 3.5(j) of the
Disclosure Schedule lists all lines of business in which each of the PRC Companies participate or are engaged. 

(k)    All applicable laws and regulations with respect to the opening and operation of foreign exchange accounts and
foreign exchange activities of each of the PRC Companies have been fully complied with, and all requisite approvals from the SAFE in relation thereto have been duly obtained. 

(l)    Except as disclosed in Section 3.5(l) of the Disclosure Schedule, with regard to employment and staff or
labour management, each of the PRC Companies has complied with all applicable PRC laws and regulations, including laws and regulations pertaining to welfare funds, statutory social insurances and the housing fund or the like. 

(m)    There are no outstanding stock options or similar plan with respect to each of the PRC Companies. The name of each
director and officer of each of the PRC Companies on the date hereof, and the position held by each, are listed in Section 3.5(m) of the Disclosure Schedule. 

(n)    There are no other companies, partnerships, joint ventures, associations or other Persons in which any Founder or
PRC Company owns, of record or beneficially, any direct or indirect equity or other interest or any right (contingent or otherwise) to acquire the same. 

(o)    Each of the PRC Companies owns free and clear from all Liens all properties and assets, including Proprietary
Rights, necessary for its operations as presently conducted and as proposed to be conducted. 
 3.6    Valid Issuance
of Purchased Shares. 
 (a)    The Purchased Shares, when issued, sold and delivered in accordance with the terms of
this Agreement, will be duly authorized and validly issued, fully paid, non-assessable, and free of any Liens. The Conversion Shares have been duly and validly made available for issuance and, upon issuance
will be duly and validly issued, fully paid, non-assessable and free of any Liens upon issuance. 

  
 13 

 (b)    All presently outstanding Ordinary Shares of the Company are duly
and validly issued, fully paid and non-assessable and free of any Liens, and such Ordinary Shares, and all outstanding shares, options and other securities of the Company, have been issued in full compliance
with the requirements of all applicable securities laws and regulations, including the Securities Act, and all other antifraud and other provisions of applicable securities laws and regulations. 

3.7    Financial Statements. The Company has provided the unaudited consolidated balance sheets, cash flow
statements and income statements of the PRC Companies as of and for the twelve-month period ended December 31, 2018, and (2) unaudited consolidated balance sheets, cash flow statements and income statements of the PRC Companies as of and
for the four-month period ended April 30, 2019 (the “Financial Statements Date”) (all such financial statements being collectively referred to herein as the “Financial Statements”). Such Financial Statements
(a) accord with the books and records of the respective PRC Company, (b) are true, correct and complete and present fairly the financial condition and state of affairs of the respective PRC Company at the date or dates therein indicated
and the results of operations for the period or periods therein specified, and (c) have been prepared in accordance with the generally accepted accounting principles in the PRC (“PRC GAAP”) applied on a consistent basis,
except, as to the unaudited financial statements, for the omission of notes thereto and normal year-end audit adjustments that are not expected to be material. 

3.8    Liabilities. Except as described in Section 3.8 of the Disclosure Schedule, no Group Company has any
indebtedness for borrowed money, that it has directly or indirectly created, incurred, assumed, or guaranteed, or with respect to which the Group Company has otherwise become directly or indirectly liable and none of the Group Companies is unable to
pay its debts as and when such debts fall due or is subject to any insolvency proceedings or has had a receiver, liquidator or administrator appointed over its assets. 

3.9    Title to Properties and Assets. Each Group Company has good and marketable title to all respective
properties and assets, in each case such property and assets are subject to no Liens. With respect to the property and assets it leases, each Group Company is in compliance with such leases and holds valid leasehold interests in such assets free of
any Liens. 
 3.10    Activities since Financial Statements Date. Since the Financial Statement Date, with
respect to any Group Company, there has not been any material change in the assets, liabilities, financial condition or operating results, except for changes in the ordinary course of business consistent with past practice. 

3.11    Intellectual Property; Status of Proprietary Rights. Each Group Company (i) has independently
developed and owns free and clear of all material claims, security interests, liens or other encumbrances, or (ii) has a valid right or license to use, all Proprietary Assets (as defined below), including without limitation all Registered
Intellectual Property (as defined below), necessary, material and appropriate for the Business and to the best knowledge of the Company, without any conflict with or infringement of the rights of others in any material respect. For purpose of this
Agreement, (i) “Proprietary Assets” shall mean all patents, patent applications, trademarks, service marks, trade names, domain names, copyrights, copyright registrations and applications and all other rights corresponding thereto,
inventions, databases and all rights therein, all computer software including all source code, object code, firmware, development tools, files, records and data, including all media on which any of the foregoing is stored, formulas, designs,
business methods, trade secrets, confidential and proprietary information, proprietary rights, know-how and processes, and all documentation related to any of the foregoing; and (ii) “Registered
Intellectual Property” means all Proprietary Assets of any Group Company, wherever located, that has been filed with or recorded by any government authority.  

  
 14 

 3.12    Contracts. 

(a)    Material Contracts and Obligations. All agreements, contracts, leases, licenses, instruments, commitments
(oral or written), indebtedness, liabilities and other obligations to which any Group Company is a party or by which it is bound that (i) are material to the conduct and operations of its business and properties; (ii) involve any of the
officers, consultants, directors, employees or shareholders of any Group Company; or (iii) obligate any Group Company to share, license or develop any product or technology are listed in Section 3.12 of the Disclosure Schedule and have
been provided to the Investors and their counsels. For purposes of this Section 3.12, “material” shall mean any agreement, contract, indebtedness, Liability, arrangement or other obligation either (i) having an aggregate
value, cost, Liability or amount of RMB4,000,000 or more, or (ii) not terminable upon no more than thirty (30) days’ notice without penalty or obligation, or (iii) relating to the leased stores with a monthly rental of RMB300,000
or more and leased warehouses. 
 (b)    Validity and Status. All the material contracts listed on
Section 3.12 of the Disclosure Schedule are legally valid and binding, in full force and effect, and enforceable in accordance with their respective terms against the parties thereto, and will not violate any applicable laws. There is no
existing default or breach by any party thereto and no Group Company has received any notice or claim or allegation of default or breach thereof from any party thereto, and the various transfers of assets, shares, equity interests, capital,
personnel, contracts and Proprietary Rights. 
 3.13    Litigation. To the best knowledge of the Warrantors,
except as described in Section 3.13 of the Disclosure Schedule, there is no Action pending or currently threatened against or brought by any Founder, any Founder Holdco, any Group Company, any Group Company’s activities, properties or
assets or against or brought by any registered general managers or registered supervisors, director or Key Employee of any Group Company in connection with such officer’s, director’s or Key Employee’s relationship with, or actions
taken on behalf of, any Group Company. No Group Company is a party to or subject to the provisions of any material order, writ, injunction, judgment or decree of any court or government agency and there is no material Action by any Group Company
currently pending. 
 3.14    Governmental Consents. All consents, approvals, licenses, permits, orders,
authorizations or registrations, qualifications, designations, declarations or filings with any Governmental Authority (the “Governmental Authorizations”) on the part of each Group Company required in connection with the execution,
delivery and performance of the Transaction Documents and the consummation of the transactions contemplated thereby have been obtained and are currently effective and in consummating such transactions, the Group Companies are in full compliance with
the “Provisions for Foreign Investors to Merge and Acquire Domestic Enterprises” promulgated by MOFCOM et.al. on August 8, 2006, amended on June 22, 2009 and amended from time to time. The offer, sale and issuance of the
Purchased Shares and the Conversion Shares, in conformity with the terms of this Agreement, are exempt from the registration and prospectus delivery requirements of the Securities Act and all other applicable securities laws and regulations. 

3.15    Compliance with Other Instruments. No Group Company is in any material violation of any term of its
constitutional documents (the “Constitutional Documents”) or the applicable laws and regulations. The execution, delivery and due performance of and compliance with the Transaction Documents and the consummation of the transactions
contemplated thereunder will not result in any violation under any Constitutional Documents or any other material agreements. 

  
 15 

 3.16    Registration Rights. Except as provided in the
Shareholders Agreement, no Group Company has granted or agreed to grant any Person any registration rights with respect to any of the securities of any Group Company. 

3.17    Tax Matters. The Group Companies have paid or made sufficient provision for the payment of all taxes in
full that have become due pursuant to the applicable laws. There have been no examinations or audits of any tax returns or reports by any applicable Governmental Authority. 

3.18    Obligations of Management. Each Key Employee of each Group Company is identified in Section 3.18 of
the Disclosure Schedule and except for the part-time employees specified in Section 3.18 of the Disclosure Schedule, each such Key Employee is currently devoting one hundred percent (100%) of his or her working time to the conduct of the
business of a Group Company. To the best knowledge of the Warrantors, no Warrantor is aware that any such Key Employee is planning to work less than full time at a Group Company in the future. To the best knowledge of the Warrantors and except as
disclosed in Section 3.18 of the Disclosure Schedule, no such Key Employee directly or indirectly holds any interest in or is currently working for a competitive enterprise, whether or not such Key Employee is or will be compensated by such
enterprise. 
 3.19    Employment Agreement, Invention Assignment and Confidentiality Agreement. Each of the
Founders and Senior Management shall have entered into a standard form employment agreement containing provisions of confidentiality, intellectual property rights assignment, non-compete and non-solicitation obligations of the employee. 
 3.20    Interested Party
Transactions. Except as disclosed in Section 3.20 of the Disclosure Schedule, no Founder, shareholder, officer, employee or director of a Group Company or any Affiliate of any such Person (each of the foregoing, an “Interested
Party”) has any agreement, understanding, or proposed transaction with, or is indebted to, any Group Company, nor is any Group Company indebted (or committed to make loans or extend or guarantee credit) to any of them. Except as disclosed
in Section 3.20 of the Disclosure Schedule, no Interested Party has any direct or indirect ownership interest in any firm or corporation with which a Group Company is affiliated or with which a Group Company has a business relationship, or any
firm or corporation that competes with a Group Company, except that any of the foregoing Persons may have less than one percent (1%) of record ownership interest in the Company or own less than one percent (1%) of shares in publicly traded companies
that may compete with a Group Company. No Affiliate of any officer or director of a Group Company is directly or indirectly interested in any material contract with a Group Company. No Interested Party has had, either directly or indirectly, any
interest in: (a) any Person which purchases from or sells, licenses or furnishes to a Group Company any goods, property, intellectual or other property rights or services; or (b) any contract or agreement to which a Group Company is a
party or by which it may be bound or affected. 
 3.21    Disclosure. No representation or warranty by any
Warrantor in this Agreement or in any written statement or certificate furnished or to be furnished to the Investors pursuant to any Transaction Document contains or will contain any untrue statement of fact or omits or will omit to state any fact
required to be stated therein or necessary in order to make the statements therein, in light of the circumstances in which they are made, not misleading in any way. Each of the Warrantors has fully provided each Investor with all the information
that such Investor has requested for deciding whether to purchase the Purchased Shares and all information that could reasonably be expected to enable such Investor to make such decision. 

  
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 3.22    Exempt Offering. Based in part on the representations and
warranties of the Investors set forth in Section 4 below, the offer, sale and issuance of the Purchased Shares under this Agreement are exempt from the registration requirements of the Securities Act and from the registration or qualification
requirements of any other applicable securities laws of any Governmental Authority, and the issuance of the Conversion Shares in accordance with the Restated M&A, will be exempt from such registration or qualification requirements. 

3.23    Suppliers. Section 3.23 of the Disclosure Schedule is a correct list of top five
(5) suppliers (by attributed expenses) (with related or affiliated Persons aggregated for purposes hereof) of the Group Companies for the year of 2018 and the first quarter of 2019, respectively, and for the monthly period ending on the
Financial Statement Date, together with the aggregate amount of revenues received or expenses paid to such business partners during such periods. To the knowledge of the Warrantors, each such supplier can provide sufficient and timely supplies of
goods and services in order to meet the requirements of the Group Companies’ Business consistent with past practice. No Group Company has experienced or been notified of any shortage in goods or services provided by its suppliers or other
providers and has no reason to believe that any Person listed on Section 3.23 of the Disclosure Schedule would not continue to provide to, or purchase from, or cooperate with, respectively, or that it would otherwise alter its business
relationship with, the Group Companies at any time after the Closing on terms substantially similar to those in effect on the date hereof, in any case. There is not currently any dispute pending between any of the Group Companies and any Person
listed on Section 3.23 of the Disclosure Schedule. 
 3.24    Insurance. There is no claim pending under the
insurance policies and bonds maintained by each Group Company as to which coverage has been questioned, denied or disputed. All premiums due and payable under all such policies and bonds have been timely paid, and each Group Company is otherwise in
compliance in all respects with the terms of such policies and bonds. All such policies and bonds are in full force and effect. 

3.25    Anti-Bribery, Anti-Corruption, Anti-Money Laundering and Sanctions. Each Group Company and other Warrantors
and their Affiliates and their respective directors, officers, managers, employees, independent contractors, representatives, agents and other Persons acting on their behalf (collectively, the “Representatives”) are and have been in
compliance with all applicable laws relating to anti-bribery, anti-corruption, anti-money laundering, record keeping and internal control laws (collectively, the “Compliance Laws”). Without limiting the foregoing, neither any Group
Company nor, any Representative has, directly or indirectly, offered, authorized, promised, condoned, participated in, consummated, or received notice of any allegation of, (a) the making of any gift or payment of anything of value to any
public official by any Person to obtain any improper advantage, affect or influence any act or decision of any such public official, or assist any Group Company in obtaining or retaining business for, or with, or directing business to,
any Person; (b) the taking of any action by any Person which (i) would violate the U.S. Foreign Corrupt Practices Act, as amended (the “FCPA”), if taken by an entity subject to the FCPA, (ii) would violate the U.K.
Bribery Act, if taken by an entity subject to the U.K. Bribery Act, or (iii) could reasonably be expected to constitute a violation of any applicable Compliance Law; (c) the making of any false or fictitious entries in the books or records
of any Group Company by any Person; or (d) the using of any assets of any Group Company for the establishment of any unlawful or unrecorded fund of monies or other assets, or the making of any unlawful or undisclosed payment. 

  
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 3.26    Financing Matters. 

(a)    All of the transactions of the Group Companies, including without limitation all receivables and payments are made
through the bank account of the applicable Group Company. No personal bank account of any employees, directors or officers of any Group Company has been mingled with the corporate assets or corporate account of any Group Company during its operation
of business and each Group Company has not used any personal bank accounts of any of its employees, directors or officers thereof during its operation of business. 

(b)    The proceeds generated from prior financing pursuant to the Prior Financing Documents by the Group Companies have
been used in compliance with all applicable laws and the applicable Prior Financing Documents in all respects. 

4.    REPRESENTATIONS AND WARRANTIES OF INVESTORS. 

Each of the Investors, severally and not jointly, hereby represents and warrants to the Company as follows as of the date hereof and as of the
Closing: 
 4.1    Authorization. It has full power and authority to enter into this Agreement and the other
Transaction Documents, and each of the Transaction Documents to which it is a party, when executed and delivered by such Investor, will constitute a valid and legally binding obligation of such Investor, subject as to enforcement of remedies, to
applicable bankruptcy, insolvency, moratorium, reorganization and similar laws affecting creditors’ rights generally and to general equitable principles. 

4.2    Purchase for Own Account. It is, or will be acquiring the Purchased Shares and the Conversion Shares for its
own account, not as a nominee or agent, and not with a view to or in connection with the sale or distribution of any part thereof. By executing this Agreement, such Investor further represents that it does not have any contract, undertaking,
agreement or arrangement with any Person to sell, transfer or grant participation to such Person or any third Person, with respect to any Purchased Shares or Conversion Shares, other than, with respect to any Investor that is an investment fund,
agreements or arrangements governing the acquisition, management and disposition of fund assets or interests in general fund assets with participants in the fund. 

5.    CONDITIONS TO INVESTORS’ OBLIGATIONS AT THE CLOSING. 

The obligations of each of the Investors to purchase the Purchased Shares at the Closing is, unless otherwise waived in writing by such
Investor, subject to the fulfillment to the satisfaction of such Investor on or prior to the Closing of the following conditions: 

5.1    Representations and Warranties Correct. Each of the representations and warranties of the Warrantors
contained in Section 3 shall have been true and complete as of the date hereof till and as of the Closing with the same effect as though such representations and warranties had been made on each such date and as of the date
of the Closing, except in either case for those representations and warranties that address matters only as of a particular date, which representations will have been true and complete as of such particular date. 

5.2    Performance of Obligations. Each Warrantor shall have performed and complied with all agreements,
obligations and conditions contained in this Agreement and other Transaction Documents that are required or contemplated to be performed or complied with by it on or before the Closing. 

  
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 5.3    Authorizations. All consents of any competent Governmental
Authority or of any other Person that are required to be obtained by any Party hereto (other than the Investors) in connection with the consummation of the transactions contemplated by this Agreement and other Transaction Documents shall have been
duly obtained and effective as of the Closing, and evidence thereof shall have been delivered to such Investor. 

5.4    Proceedings and Documents. All corporate and other proceedings in connection with the transactions
contemplated hereby and all documents and instruments incident to such transactions shall be satisfactory in substance and form to such Investor, and such Investor shall have received all such counterpart originals or certified or other copies of
such documents as they may request. 
 5.5    Group Company’s Charter Documents. The Restated M&A, in
the forms attached hereto as Exhibit A, shall have been duly adopted by all necessary actions of the Board and shareholders of the Company, and such adoption shall have become effective prior to the Closing with no alternation or amendment as
of the Closing. The charter documents of each of the other Group Companies shall be satisfactory in substance and form to such Investor. 

5.6    Transaction Documents. Each of the parties to the Transaction Documents, other than the Investors,
shall have executed and delivered such Transaction Documents to such Investor. 
 5.7    Consents and Waivers.
Each Warrantor shall have obtained any and all consents and waivers necessary or appropriate for consummation of the transactions contemplated by this Agreement. 

5.8    Laws. The offer and sale of the Purchased Shares and the Conversion Shares to such Investor pursuant to this
Agreement shall be exempt from the registration and prospectus delivery requirements of the Securities Act and shall not violate or breach or result in a violation or breach of any other applicable laws or regulations. 

5.9    Business Plan and Budget. The Company shall have delivered to such Investor prior to the Closing a detailed
business plan and budget with respect to the Group Companies for the year 2019 to such Investor’s satisfaction. 

5.10    No Litigation. No Action shall have been threatened or instituted by or against any Warrantor or such
Investor seeking to enjoin, challenge the validity of, or assert any Liability against any of them on account of, any transactions contemplated by this Agreement or the other Transaction Documents. 

5.11    Observer. The appointment of the Observers (as defined in the Shareholders Agreement) shall be duly
approved by the resolutions of the Board and shareholders of the Company. 
 5.12    Employment Agreement and
Confidentiality, Non-Competition and Proprietary Rights Agreement. Each Key Employee and Senior Management shall have entered into an employment agreement, and a confidentiality, non-competition and Proprietary Rights agreement with the applicable Group Company, each in the form attached hereto as Exhibit E and the Company shall have delivered to such Investor copies of the same. 

  
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 5.13    Closing Deliveries. The Warrantors shall have tendered
delivery of all of the various items they are required to deliver to such Investor at the Closing under Section 2.3. 

5.14    Due Diligence. Such Investor shall have completed the legal, financial and business due diligence
investigation on the Group Companies to its satisfaction. 
 5.15    Approval by Investment Committee. Such
Investor shall have received approvals by its investment committee for entering into the Transaction Documents and consummating the transactions contemplated thereby. 

5.16    No Material Adverse Effect. There shall have been no Material Adverse Effect on the financial condition,
business, prospects or operations of any Group Company since the Financial Statements Date. 
 5.17    Execution of
Control Documents. Each of the Control Documents shall have been duly executed by all parties thereto and become effective immediately prior to the Closing with copies thereof provided to such Investor. 

5.18    Loan Agreements. The Founders and the relevant Group Companies shall enter into the loan agreements in
substance and form satisfactory to such Investor with copies thereof provided to such Investor. 
 5.19    ESOP.
The amendment to the ESOP, to increase the amount of the reserved shares thereunder, shall be duly approved by the shareholders’ resolutions of the Company. 

6.    CONDITIONS TO COMPANY’S OBLIGATIONS AT THE CLOSING. 

The obligation of the Company to issue and sell the Purchased Shares to each of the Investors at the Closing, unless otherwise waived in
writing by the Company, is subject to the fulfillment to such Investor’s satisfaction on or prior to the Closing of the following conditions: 

6.1    Representations and Warranties Correct. The representations and warranties made by such Investor in
Section 4 hereof shall be true and correct and complete with respect to the subjects covered therein when made, and shall be true and correct and complete as of the date of the Closing with the same force and effect as if they had been made on
and as of such date, subject to changes contemplated by this Agreement. 
 6.2    Performance of Obligations.
Such Investor shall have performed and complied with all agreements, obligations and conditions contained in this Agreement that are required or contemplated to be performed or complied with by it on or before the Closing. 

7.    COVENANTS OF THE WARRANTORS. 

Each of the Warrantors hereby jointly and severally covenants to the Investors as follows: 

7.1    Use of Proceeds. In accordance with the budget and business plan approved by the Board or the shareholders
of the Company, as applicable, in accordance with the Transaction Documents, the Company shall use the proceeds from the issuance and sale of the Purchased Shares for capital expenditure, business expansion and working capital of the Group
Companies, save as otherwise stipulated in this Agreement. Unless otherwise agreed to in writing by the Board (including the affirmative vote of the Requisite Investor Directors (as defined in the Shareholders Agreement)), no proceeds from the sale
of the Purchased Shares shall be used (i) in the purchase of any Equity Securities, (ii) in the investment of any other Person, (iii) in the payment of any debt of any Group Company, or (iv) in the repurchase or cancellation of
securities held by any shareholder of the Company. The Company shall, and the other Warrantors shall cause the Company to, invest such proceeds in the Ecommerce Company, including increasing its registered capital, as soon as possible after the
Closing. 

  
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 7.2    Filing of the Restated M&A. The Company shall,
and the Founders and the Founder Holdcos shall cause the Company to obtain the duly filed and stamped Restated M&A within ten (10) days following the Closing and the evidence of which shall be delivered to the Investors. 

7.3    Additional Covenants. Except as required by this Agreement or the Shareholders Agreement, no resolution of
the directors, owners, members, joint venture parties, or shareholders of any Group Company shall be passed, nor shall any contract or commitment be entered into prior to the Closing without the written consent of the Investors, except that the
Group Companies may carry on their respective businesses in the same manner as heretofore and may pass resolutions and enter into contracts and commitments in the ordinary course of business and consistent with their past practice. 

7.4    Notice of Certain Events. If at any time before the Closing, any Warrantor comes to know of any material
fact or event which: 
 (a)    is in any way inconsistent with any of the representations and warranties of the
Warrantors in this Agreement; 
 (b)    suggests that any fact warranted by the Warrantors hereunder may not be as
warranted or may be misleading; or 
 (c)    might affect the willingness of a prudent investor to purchase the
Purchased Shares on the terms contained in the Transaction Documents or the amount of the consideration a prudent investor would be prepared to pay for the Purchased Shares, then the Warrantors shall immediately notify the Investors in writing,
describing the fact or event in reasonable detail.  
 7.5    Use of Investors’ Name
or Logo. Without the prior written consent of Hillhouse, none of the parties shall use, publish, reproduce, or refer to the name of Hillhouse, its affiliates and/or controlling persons, or the name “Hillhouse”, “高瓴”, “Gaoling”, “Gao Ling”, “Lei Zhang”, “张磊” or any similar name, trademark or logo in any discussion, documents or materials, including without limitation for
marketing or other purposes. Without the prior written consent of Banyan, none of the parties shall use, publish, reproduce, or refer to the name of Banyan, its Affiliates and/or Controlling persons, or the name “Banyan Capital”,
“高榕”, “Gaorong”, “banyanvc”, “gaorongvc”, or any similar name, trademark
or logo in any discussion, documents or materials, including without limitation for marketing or other purposes. Without the prior written consent of CMC, none of the parties shall use, publish, reproduce, or refer to the name of CMC, its Affiliates
and/or controlling persons, or the name “CMC”, “华人文化产业投资基金”, “China Media Capital” or any similar name, trademark or logo in any discussion, documents or materials, including without limitation for marketing or other purposes. Without the
prior written consent of VMG, none of the parties shall use, publish, reproduce, or refer to the name of VMG, its Affiliates and/or Controlling persons, or the name “VMG” or any similar name, trademark or logo in any discussion, documents
or materials, including without limitation for marketing or other purposes. 

  
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 7.6    Corporate Opportunity. The Group Company hereby
acknowledge that the Investors and their Affiliates (including investment funds, persons or accounts under the management of the Investors or their Affiliates) engage in hedge fund investment and private equity investment businesses. The Investors
and their Affiliates shall have the right to, and shall have no duty hereunder to refrain from, continue to carry on its normal course of business activities as professional investors. The Investors and their Affiliates may from time to time have
information on or knowledge of a business opportunity that a Group Company is financially able to undertake, is from its nature in the line or lines of one or more Group Company’s existing or prospective business and is a practical advantage to
it, and is one in which a Group Company has an interest or reasonable expectancy (the “Business Opportunity”). Such Business Opportunity may or may not be within the knowledge of the Directors appointed by the Investors (if
applicable) (the “Investor Directors”). The parties hereto agree, and shall procure that each of the Group Companies agrees, irrevocably that the Investor Directors shall not be under any duty to disclose any Business Opportunity to
the Company or any other Group Company, or permit any Group Company to participate in any Business Opportunity, or to otherwise take advantage of any Business Opportunity, and hereby waives, to the extent permitted by law, any claim based on the
corporate opportunity doctrine or otherwise that could limit the Investors’ ability to benefit from information related to an actual or potential Business Opportunity or that would require the Investors or the Investor Directors to disclose any
such information to any Group Company or offer any Business Opportunity to any Group Company. 
 7.7    Tax
Basis. The Warrantors hereby undertake that all (but not less than all) the proceeds from the issuance and sale of the Purchased Shares shall be contributed into the Company, the HK Company and thereafter into the Ecommerce Company as registered
capital, otherwise the Warrantors shall indemnify each of the Investors against taxes or duties, in connection with such Investor’s sale of their respective shares, levied or imposed on such Investor by the relevant PRC tax authorities as the
result of the tax base for such shares determined by the relevant PRC tax authorities being less than the Purchase Price paid by such Investor solely due to the breach of the Warrantors’ obligations under this Section 7.7. 

7.8    Employment Agreement, Proprietary Rights and Confidentiality Agreement. The Group Companies shall cause all
of their respective current employees to enter into employment agreements and proprietary rights and confidentiality agreement in standard form in compliance with the applicable laws and regulations. The Group Companies shall further cause all of
their respective future employees to enter into employment agreements and confidentiality and intellectual property rights agreements in standard form in compliance with the applicable laws and regulations. 

7.9    Regulatory Compliance. Each Warrantor shall comply with all applicable laws and regulations in the PRC,
including but not limited to applicable laws and regulations in connection with the operations of the Group Companies and foreign exchanges Each Warrantor shall use its best efforts to cause all shareholders of each Group Company, and any successor
entity or controlled Affiliate of any Group Company to, timely complete all required registrations and other procedures with applicable governmental authorities (including without limitation SAFE) as and when required by applicable laws and
regulations. The Warrantors shall ensure that, each entity described above and its respective shareholders are in compliance with such requirements and that, to the extent permitted by applicable law, there is no
barrier to repatriation of profits, dividends and other distributions from Ecommerce Company (or any successor entity) to the HK Company. 

  
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 7.10    Restructuring of Yitong. The Warrantors
agree that, without the prior written approval of the Investors, Beijing Yitong Technology Co., Ltd. (北京逸同科技有限公司) (“Yitong Technology”), a company newly established by the Founders in Beijing for the purpose of the Circular 37 registration, will not take any business or operation
after its establishment. As soon as practicable after the Closing, upon the written request by the Investors, the Warrantors shall use their best efforts to cause (i) the Founders execute a share transfer agreement under which the Founders
shall transfer all of the equities of Yitong Technology to applicable Group Company; (ii) the completion of the deregistration procedures of Yitong Technology; or (iii) Yitong Technology and applicable Group Company execute certain control
documents satisfactory in substance and form to the Investors. 
 7.11    SAFE Registration. The Group
Companies, the Founders and the Founder Holdcos shall complete, update and maintain his/her registration with SAFE as required under Circular 37 in respect of his/her direct and indirect record and beneficial ownership of any shares or equity
interest in the Company and each other Group Company on a timely and continuous basis after the Closing. The Company shall promptly deliver to the Investors and their counsels’ satisfactory evidence for completion of such registration. 

7.12    Permit and License. As soon as practicable after the Closing, the PRC Companies shall, and the Warrantors
shall cause the PRC Companies to, obtain and maintain all of the necessary Governmental Authorizations in full compliance with applicable laws for the conduct of their business as currently conducted and as proposed to be conducted, including but
not limited to filings of all the domestic non-special purpose cosmetic products produced by any Group Company or any third party entrusted by the Group Companies with the provincial Food and Drug
Administrations or any other Governmental Authorities with competent jurisdiction after the Closing. The Domestic Company, shall, and the other Warrantors shall procure it to, as soon as possible after the Closing and if practicable, apply for the
Permit of Audiovisual Internet Dissemination (信息网络传播视听许可), the
applicable Value-Added Telecommunication Operation License and any other license or permits for the business it proposes to conduct. To the extent permitted by the applicable laws, each of the Group Companies and the Founders shall procure each of
the Group Companies to, (1) use its best efforts to maintain in a timely manner all requisite consents and permits for conducting the Business in compliance with all applicable laws, and (2) if so required by any applicable laws, obtain
additional consents and permits necessary for conducting the Business as soon as possible but in any event no later than the time limit required by the applicable PRC laws or the competent Government Authorities. 

7.13    Intellectual Property Protection. The Group Companies shall establish and maintain appropriate intellectual
inspection system to protect the Proprietary Rights of the Group Companies. The Group Companies shall, and the Founders shall cause the Group Companies to fully comply with the laws and regulations in respect of the protection of the Proprietary
Rights and refrain from infringing the Proprietary Rights of other parties. Ecommerce Company shall, and the other Warrantors shall procure Ecommerce Company to, use its best efforts to obtain as soon as possible and maintain the registration of the
core trademarks used in the Business (including without limitation, the marks of “perfect diary”, “完美日记” and the combination of the foregoing) in the appropriate goods and services (including without limitation, cosmetics, cosmetics tools and advertisement). The Group Companies shall take all
necessary or desirable actions to protect their trademarks, including initiating trademark petitions against any trademark applications filed by any third party for a trademark identical or similar to the Group Companies’ trademarks.

  
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 7.14    Availability of Ordinary Shares. The Company hereby
covenants that at all times there shall be made available, free of any Liens, for issuance and delivery upon conversion of the Purchased Shares such number of Ordinary Shares or other shares of share capital of the Company as are from time to time
issuable upon conversion of the Purchased Shares. 
 7.15    Business of the Company and the HK Company
The business of the Company shall be restricted to the holding of shares or equity interest in the HK Company. The business of the HK Company shall be restricted to the holding of shares or equity interest in the Ecommerce Company.  

7.16    Business of the PRC Companies. Prior to entering into any new business other than those in
the scope of the Business, each Warrantor shall use its best efforts and take all necessary actions to implement and carry out the new business plan approved by a majority of the Board in accordance with Section 9 of the Shareholders Agreement,
including, without limitation, hiring employees, renting office space, employing legal and technical consultants and undertaking other customary business activities. From the Closing and until the new business plan is duly amended in accordance with
all necessary procedures, the business of the PRC Companies shall be limited to the Business. 
 7.17    Employee
Matters. Upon the request of the Investors and if notified by the competent Governmental Authorities, the PRC Companies shall pay and supplement the deficiency with respect to non-payment or underpayment
of the social insurances and/or the housing fund whether occurred before or after the Closing. 
 7.18    Tax
Matters. The PRC Companies shall comply with all applicable PRC tax laws and regulations, including without limitation, laws and regulations pertaining to income tax and value added tax. 

7.19    Accrual Accounting. The Group Companies shall establish and maintain the accounting policies and the
financial system in full compliance with all applicable laws and regulations and to the Investors’ reasonable satisfaction. 

7.20    Contracts Administration Plan. Within six (6) months after the Closing, the Group Companies shall
establish and maintain an effective Contracts administration plan to regulate the Contracts documentation, approval and performance satisfactory to the Investors, which shall include without limitation that each Contract shall be duly documented and
kept by the PRC Companies. Each Group Company shall ensure all Contracts to which it is a party will be duly documented and kept in accordance with such Contract administration plan. 

7.21    Full-time Commitment. Each Founder undertakes and covenants to the Investors that, as long as he/she is and
remains an employee of any of the Group Companies, he/she shall commit all of his/her efforts to furthering the Business of the Group Companies and shall not, without the prior written consent of the Investors, either on his/her own account or
through any of his/her Affiliates, or in conjunction with or on behalf of any other Person, (i) possess, directly or indirectly, the power to direct or cause the direction of the management and business operation of any entity whether
(A) through the ownership of any equity interest in such entity, or (B) by occupying half or more of the board seats of the entity; or (C) by contract or otherwise; or (ii) devote time to carry out the business operation of any
other entity. 
 7.22    Filing of Lease Agreements. As soon as practicable after the Closing, each of the PRC
Companies shall, and the Founders shall procure the PRC Companies to, use their best efforts to duly register all the real property lease agreements to which such PRC Company is a party with the competent Governmental Authorities. 

  
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 7.23    De-registration of Yatsen
Pet Products. As soon as practicable after the Closing but in any event no later than six (6) months after the Closing, the Ecommerce Company shall have completed all the deregistration procedures of Yatsen Pet Products and shall provide to
the Investors the deregistration completion notices issued by competent PRC administration for industry and commerce regarding the deregistration of Yatsen Pet Products. 

7.24    SAMR Registration. As soon as practicable but in any event no later than three (3) months after the
Closing, the Group Companies shall have completed registration procedures with respect to the Resignation of Zhang Zhantu with competent local administration for market regulation, and relevant evidences of such registration shall have been
delivered to the Investor to its satisfactory. 
 7.25    Registration of Share Pledge. Within one (1) month
after the Closing, all of the shareholders of the Domestic Company shall have duly filed with competent local administration for market regulation the share pledge of their Equity Securities in the Domestic Company to Ecommerce Company as
contemplated by the Control Documents. Within two (2) months after the Closing, such share pledge shall be duly registered and the Company shall provide the proof thereof to the Investors. 

7.26    Executory Period Covenants. 

(a)    Access. Between the date hereof and the Closing, the Warrantors shall permit the Investors, or any
representative thereof, to (a) visit and inspect the properties of the Group Companies, (b) inspect the contracts, books of account, records, ledgers, and other documents and data of the Group Companies, (c) discuss the business,
affairs, finances and accounts of the Group Companies with officers and employees of the Group Companies, and (d) review such other information as the Investors reasonably request, in such a manner so as not to unreasonably interfere with their
normal operations, including but not limited to the Investors shall have received from the Company all documents and other materials requested by the Investors for the purpose of examining and determining the rights in and to any technology,
products and Proprietary Rights now used, proposed to be used in, or necessary to, the business as now conducted and proposed to be conducted by the Group Companies, and the status of its ownership rights in and to all such technology, products and
Proprietary Rights shall be satisfactory to each Investor in its sole discretion. 
 (b)    Covenants. Between
the date hereof and the Closing, except as the prior written consent of the Investors or the transactions contemplated under the Transaction Documents, each of the Group Companies shall (and the Warrantors shall cause each of the Group Companies
to) (a) conduct its business in the ordinary course consistent with past practice, as a going concern and in compliance with all applicable laws and all agreements, contracts, instruments and commitments (oral or written), (b) pay or perform
its debts, taxes, and other obligations when due, (c) maintain its assets in a condition comparable to their current condition, reasonable wear, tear and depreciation excepted, (d) use reasonable best efforts to preserve intact its current
business organizations and keep available the services of its current officers and employees and preserve its relationships with customers, suppliers and others having business dealings with it, (e) otherwise periodically report to the
Investors concerning the status of its business, operations and finance, and (f) take all actions reasonably necessary, to consummate the transactions contemplated by this Agreement promptly, including the taking of all reasonable acts
necessary to cause all of the conditions precedent of the Investors to be satisfied. 

  
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 (c)    Information. From the date hereof until the Closing,
(a) the Warrantors shall promptly notify the Investors of any action, charge, claim, complaint, investigation. litigation, inquiry or other proceeding commenced or threatened in writing against any Warrantor, (b) the Warrantors shall
promptly notify the Investors of any breach, violation or non-compliance of any representation, warranty or covenant made by any Warrantors hereunder, and (c) the Warrantors will promptly provide the
Investors with copies of all correspondence and inquiries to and from, and all filings made with, any Governmental Authority with respect to the transactions contemplated hereby. 

(d)    Exclusivity. From the date hereof until the Closing or the termination date of this Agreement, the
Warrantors shall not, and they shall not permit any of their representatives or any Group Company to, directly or indirectly solicit, initiate or encourage any inquiries or proposals from, discuss or negotiate with, provide any non-public information to, or approve or authorize any transaction with any Person that would involve an investment in, purchase of shares of, or acquisition of any Group Company or any material assets thereof or
would be in substitution or an alternative for or would impede or interfere with the transactions contemplated hereby, unless with the prior written consent of the Investors. The Warrantors shall, and shall cause their representatives and the other
Group Companies to, immediately terminate all existing activities, discussions and negotiations with any third parties with respect to the foregoing and if any of them hereafter receives any correspondence or communication that constitutes, or could
reasonably be expected to lead to, any such transaction they shall immediately give notice thereof (including the third party and the material terms of such transaction) to the Investors. 

7.27    Most Favored Investors. In the event the Company has granted or will grant, in the prior or the next
financing of the Company, any other investors or shareholders any rights, privileges or protections more favorable than those granted to the Investors, the Investors, with respect to the Series C Preferred Shares held by them, shall be entitled to
the same rights, privileges or protections pari passu with the other investors or shareholders, and the Company shall take, and the Warrantors shall cause the Company to take, all necessary actions in order to effect the foregoing provisions of this
Section 7.27. 
 7.28    Other Issues in the Disclosure Schedule. As soon as practicable after the Closing
and at any time upon the request of the Investors, the relevant Group Companies, and the Founders shall, to the satisfaction of the Investors, resolve the issues in a practically reasonable manner, which are disclosed in the Disclosure Schedule or
identified by the Investors in the due diligence process but not expressly specified as a specific covenant under Section 7 or a specific condition for the Closing under Section 5. 

8.    INDEMNITY. 

(a)    Each Warrantor shall, jointly and severally, indemnify each of the Investors against any reduction in value of the
Company’s or the Group Companies’ assets, any increase in their liabilities, any dilution of such Investor’s interests in the Company or any diminution in the value of such Investor’s interests in the Company as a result of
(i) any breach or violation of any representation or warranty made by any Warrantor in the Transaction Documents and (ii) any breach by any Warrantor of any covenant or agreement contained herein and in any other Transaction Documents (the
forgoing losses, the “Indemnifiable Losses”). Notwithstanding the foregoing, the Founders and the Founder Holdcos shall not be liable for any Indemnifiable Losses until and unless the Group Companies have exhausted all available
funds in paying for the Indemnifiable Losses. 

  
 26 

 (b)    Notwithstanding anything contained in the Disclosure Schedule (as
amended, if applicable), each Warrantor shall jointly and severally indemnify at all times and hold harmless each of the Investors from and against any and all Indemnifiable Losses suffered by such Investor, directly or indirectly, as a result of,
or based upon or arising from (i) any tax Liability of any Group Company not reflected in the Financial Statements or arising out of any failure, by any Warrantor to comply with any applicable laws of the PRC or any other jurisdiction relating
to tax, occurring for all taxable periods ending on or before the Closing and the portion through the end of the Closing for any taxable period that includes (but does not end on) the Closing, (ii) any Group Company’s failure occurred on
or before the Closing to pay the social insurances or the housing funds for all of its employees in full and on time, and (iii) any Warrantor’s violation of any applicable laws relating to or in connection with foreign exchanges occurred
on or before the Closing. 
 (c)    Notwithstanding anything to the contrary contained herein, the aggregate liabilities
of the Warrantors pursuant to this Section 8 for each Investor under the Transaction Documents shall not exceed the Purchase Price paid for the Purchased Shares being purchased by such Investor hereunder, provided that, absent willful
misconduct which would result or reasonably be expected to result in a Material Adverse Effect or fraud by any of the Founders, the aggregate liabilities of each Founder and his applicable Founder Holdco pursuant to this Section 8 for each
Investor under the Transaction Documents shall not exceed an amount equal to the lower of (i) the Purchase Price paid for the Purchased Shares being purchased by such Investor hereunder; and (ii) the value of the Ordinary Shares
beneficially owned by such Founder in the Company, determined by the proceeds received by such Founder from disposal of such Ordinary Shares through arm’s length transaction in good faith. Any Founder may elect to compensate certain Investor
for any Indemnifiable Loss suffered by such Investor by transferring the Ordinary Shares in whole or in part held by the relevant Founder Holdco to such Investor at no cost, provided that, the value for such number of Ordinary Shares to be
transferred shall equal the Indemnifiable Loss with such value to be determined by the Company’s auditor in good faith (including affirmative votes of the holders of at least fifty percent (50%) of the then issued outstanding Ordinary Shares
(on as-converted basis) held by all holders of the Preferred Shares). 

9.    CONFIDENTIALITY AND NON-DISCLOSURE. 

9.1    Disclosure of Terms. The terms and conditions of the Transaction Documents and all exhibits and
schedules attached hereto and thereto (collectively, the “Financing Terms”), including their existence, shall be considered confidential information and shall not be disclosed by any Party hereto to any third party except in
accordance with the provisions set forth below; provided that such confidential information shall not include any information that is in the public domain other than caused by the breach of the confidentiality obligations hereunder. 

9.2    Press Releases. Any press release issued by any Group Company or their Affiliates shall not disclose any of
the Financing Terms and the substance and form of such press release shall be approved in advance by the Investors. 

9.3    Permitted Disclosures. Notwithstanding the foregoing, any Party may disclose any of the Financing
Terms to its current or bona fide prospective investor, employees, investment bankers, lenders, partners, accountants and attorneys, in each case only where such persons or entities are under appropriate nondisclosure obligations. 

  
 27 

 9.4    Legally Compelled Disclosure. In the event that any Party
is requested or becomes legally compelled (including without limitation, pursuant to securities laws and regulations) to disclose the existence of any Transaction Document or any of the exhibits and schedules attached hereto or thereto, or any of
the Financing Terms hereof in contravention of the provisions of this Section 9.4 such party (the “Disclosing Party”) shall provide the other parties (the “Non-Disclosing
Parties”) with prompt written notice of that fact and use all reasonable efforts to seek (with the cooperation and reasonable efforts of the other parties) a protective order, confidential treatment or other appropriate remedy. In such
event, the Disclosing Party shall furnish only that portion of the information which is legally required to be disclosed and shall exercise reasonable efforts to keep confidential such information to the extent reasonably requested by any Non-Disclosing Party. 
 9.5    Other Information. The provisions of this
Section 9 shall be in addition to, and not in substitution for, the provisions of any separate nondisclosure agreement executed by any of the parties with respect to the transactions contemplated hereby. 

10.    MISCELLANEOUS. 

10.1    Governing Law. This Agreement shall be governed in all respects by the laws of the Hong Kong without regard
to conflicts of law principles. 
 10.2    Survival of Representations and Warranties and Covenants. The
representations, warranties, covenants and agreements made by the Warrantors herein shall survive any due diligence investigation made by the Investors hereto and shall survive the Closing. 

10.3    Successors and Assigns. Except as otherwise expressly provided herein, the provisions hereof shall inure to
the benefit of, and be binding upon, the successors, permitted assigns, heirs, executors and administrators of the Parties hereto whose rights or obligations hereunder are affected by such amendments. Notwithstanding anything contrary in this
Agreement, this Agreement and the rights and obligations herein may be assigned or transferred by any Investor to its Affiliates. No Warrantor may assign its rights or delegate its obligations under this Agreement without the written consent of the
Investors. 
 10.4    Entire Agreement. This Agreement, the Shareholders Agreement, and any other Transaction
Documents together with all the schedules and exhibits hereto and thereto, which are hereby expressly incorporated herein by this reference, constitute the entire understanding and agreement between the Parties with regard to the subjects hereof and
thereof; provided, however, that nothing in this Agreement or related agreements shall be deemed to terminate or supersede the provisions of any confidentiality and non-disclosure agreements
executed by the Parties hereto prior to the date of this Agreement, all of which agreements shall continue in full force and effect until terminated in accordance with their respective terms. 

10.5    Notices. Except as may be otherwise provided herein, all notices, requests, waivers and other
communications made pursuant to this Agreement shall be in writing and shall be conclusively deemed to have been duly given (a) when hand delivered to the other party; (b) when sent by facsimile at the number set forth below, upon a
successful transmission report being generated by the sender’s machine; (c) when sent by email, upon the date of successful transmission, provided that the sending Party has received a system message indicating successful transmission or
has not received a system message within twenty-four (24) hours indicating failure of delivery or return of email; or (d) three (3) Business Days after deposit with an internationally-recognized overnight delivery service, postage prepaid,
addressed to the Parties as set forth below with next-business-day delivery guaranteed, provided that the sending Party receives a confirmation of delivery from the delivery service provider. 

  
 28 

 Each Person making a communication hereunder by facsimile shall promptly confirm by
telephone to the Person to whom such communication was addressed each communication made by it by facsimile pursuant hereto but the absence of such confirmation shall not affect the validity of any such communication. The address of each Party are
set forth in Schedule D and a Party may change or supplement the addresses given above, or designate additional addresses, for purposes of this Section 10.5 by giving the other Party written notice of the new address in the manner set
forth above. 
 10.6    Amendments and Waivers. This Agreement may only be amended or modified with the prior
written consent of the Company and the Investors. 
 10.7    Delays or Omissions. No delay or omission to
exercise any right, power or remedy accruing to any Party upon any breach or default of any other Party hereto under this Agreement, shall impair any such right, power or remedy of the aggrieved Party nor shall it be construed to be a waiver of any
such breach or default, or an acquiescence therein, or of any similar breach or default thereafter occurring; nor shall any waiver of any other breach or default theretofore or thereafter occurring. Any waiver, permit, consent or approval of any
kind or character on the part of any Party of any breach or default under this Agreement or any waiver on the part of any Party of any provisions or conditions of this Agreement, must be in writing and shall be effective only to the extent
specifically set forth in such writing. All remedies, either under this Agreement, or by law or otherwise afforded to the Parties shall be cumulative and not alternative. 

10.8    Professional Fees. The Company shall bear all legal, accounting and other out of pocket fees, costs and
expenses incurred by Hillhouse and CMC in connection with the conduct of their industry, legal and financial due diligence and its negotiation, preparation, execution and completion of this Agreement and any other Transaction Documents hereunder and
thereunder, which shall not exceed US$200,000 in total (with respect to Hillhouse, US$150,000; with respect to CMC, US$50,000) at the Closing. 

10.9    Finder’s Fees. Except as set forth in the Disclosure Schedule by the Company, each party
(a) represents and warrants to the other Party hereto that it has not retained any finder or broker in connection with the transactions contemplated by this Agreement, and (b) hereby agrees to indemnify and to hold harmless the other Party
hereto from and against any Liability for any commission or compensation in the nature of a finder’s fee of any broker or other Person or firm (and the costs and expenses of defending against such Liability or asserted Liability) for which the
indemnifying party or any of its employees or representatives are responsible. 
 10.10    Interpretation; Titles and
Subtitles. This Agreement shall be construed according to its fair language. The rule of construction to the effect that ambiguities are to be resolved against the drafting Party shall not be employed in interpreting this Agreement. The titles
of the sections and subsections of this Agreement are for convenience of reference only and are not to be considered in construing this Agreement. 

  
 29 

 10.11    Counterparts. This Agreement may be executed in one or
more counterparts and may be delivered by electronic PDF or facsimile transmission, all of which shall be considered one and the same agreement and each of which shall be deemed an original, but all of which together shall constitute one instrument.

 10.12    Severability. Should any provision of this Agreement be determined to be illegal or unenforceable,
such determination shall not affect the remaining provisions of this Agreement. 
 10.13    Pronouns and etc. For
all purposes of this Agreement, except as otherwise expressly provided, (a) the defined terms shall have the meanings assigned to them in its definition and include the plural as well as the singular, and pronouns of either gender or neuter
shall include, as appropriate, the other pronoun forms; (b) all references in this Agreement to designated “Sections” and other subdivisions are to the designated Sections and other subdivisions of the body of this Agreement unless
explicitly stated otherwise, and all references in this Agreement to designated exhibits and schedules are to the exhibits and schedules attached to this Agreement unless explicitly stated otherwise, (c) the words “herein”,
“hereof”, and “hereunder” and other words of similar import refer to this Agreement as a whole and not to any particular Section or other subdivision, (d) any reference in this Agreement to any “Party” or any other
Person shall be construed so as to include its successors in title, permitted assigns and permitted transferees, and (e) any reference in this Agreement to any agreement or instrument is a reference to that agreement or instrument as amended or
novated. 
 10.14    Dispute Resolution. 

(a)    In the event the Parties are unable to settle a dispute between them regarding this Agreement, such dispute shall be
referred to and finally settled by arbitration at the Hong Kong International Arbitration Centre (“HKIAC”) in accordance with HKIAC Administered Arbitration Rules (“HKIAC Rules ”) in effect, which rules are deemed
to be incorporated by reference into this subsection (a), subject to the following: (i) the arbitration tribunal shall consist of three (3) arbitrators to be appointed according to the HKIAC Rules; and (ii) the language of the
arbitration shall be English. 
 (b)    Notwithstanding anything in this Agreement or in the HKIAC Rules or otherwise,
the arbitration tribunal shall not have the power to award injunctive relief or any other equitable remedy of any kind against the Investors unless such award both (x) is expressly appealable to and subject to de novo review by the courts of
Hong Kong, and (y) would not, if upheld, have the effect of impairing, restricting, or imposing any conditions on the right or ability of the Investors or their Affiliates to conduct their respective business operations or to make or dispose of
any other investments. The prevailing party shall be entitled to reasonable attorney’s fees, costs and necessary disbursements in addition to any other relief to which such party may be entitled. 

10.15    Termination of Agreement. This Agreement may be terminated prior to the Closing (a) by mutual
written consent of the Parties, (b) by the Investors or the Company if the Closing has not been consummated by July 28, 2019, (c) by the Investors, by written notice to the Company if there has been a material misrepresentation or material
breach of a covenant or agreement contained in this Agreement on the part of the Warrantors, and such breach, if curable, has not been cured within fourteen (14) days of such notice stating the reason and intention to so terminate, or
(d) by the Investors if, due to change of applicable laws, the consummation of the transactions contemplated hereunder would become prohibited under applicable laws. If this Agreement is terminated pursuant to the provision of
Section 10.15, this Agreement will be of no further force or effect, provided that no party shall be relieved of any Liability for a breach of this Agreement or for any misrepresentation hereunder, nor shall such termination be deemed to
constitute a waiver of any available remedy (including specific performance if available) for any such breach or misrepresentation. 

  
 30 

 10.16    Survival. The provisions of
Section 1, Section 7.5, Section 8, Section 9, Section 10.1, Section 10.5,
Section 10.14 and Section 10.16 shall survive the expiration or early termination of this Agreement. 

[Signature Page Follows] 

  
 31 

 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the date first
above written. 
  

			
	GROUP COMPANIES:
	
	Yatsen Holding Limited
		
	By:	 	 /s/ Jinfeng Huang

	Name:	 	HUANG Jinfeng (黄锦峰)
	Title:	 	Director
	
	Yatsen (HK) Limited
		
	By:	 	 /s/ Jinfeng Huang

	Name:	 	HUANG Jinfeng (黄锦峰)
	Title:	 	Director

  
 [Signature Page to the
Series C Preferred Share Purchase Agreement - Yatsen Holding Limited] 

 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the date first
above written. 
  

			
	GROUP COMPANIES:
	
	Guangzhou Yatsen Ecommerce Co., Ltd.
	(广州逸仙电子商务有限公司) (Seal)
		
	By:	 	 /s/ Jinfeng Huang

	Name:	 	HUANG Jinfeng (黄锦峰)
	Title:	 	Legal Representative
	
	Guangzhou Yatsen Cosmetic Co., Ltd.
	(广州逸仙化妆品有限公司) (Seal)
		
	By:	 	 /s/ Yuwen Chen

	Name:	 	CHEN Yuwen (陈宇文)
	Title:	 	Legal Representative
	
	Huizhi Weimei (Guangzhou) Commercial and Trading Co., Ltd.
	(汇智为美(广州)商贸有限公司) (Seal)
		
	By:	 	 /s/ Jinfeng Huang

	Name:	 	HUANG Jinfeng (黄锦峰)
	Title:	 	Legal Representative
	
	Perfect Diary Cosmetics (Guangzhou) Co., Ltd.
(完美日记化妆品(广州)有限公司
) (Seal)
		
	By:	 	 /s/ Jinfeng Huang

	Name:	 	HUANG Jinfeng (黄锦峰)
	Title:	 	Legal Representative

  
 [Signature Page to the
Series C Preferred Share Purchase Agreement - Yatsen Holding Limited] 

 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the date first
above written. 
  

			
	GROUP COMPANIES:
	
	Guangzhou Yatsen Pet Products Co., Ltd.
	(广州逸仙宠物用品有限公司) (Seal)
		
	By:	 	 /s/ Yuwen Chen

	Name:	 	CHEN Yuwen (陈宇文)
	Title:	 	Legal Representative
	
	Perfect Diary Technology (Guangzhou) Co., Ltd.
(完美日记科技(广州)有限公司
) (Seal)
		
	By:	 	 /s/ Jinfeng Huang

	Name:	 	HUANG Jinfeng (黄锦峰)
	Title:	 	Legal Representative
	
	Yiyan (Shanghai) Cosmetics Co., Ltd. (逸妍(上海)化妆品有限公司) (Seal)
		
	By:	 	 /s/ Jianhua Lyu

	Name:	 	LYU Jianhua (吕建华)
	Title:	 	Legal Representative
	
	Guangzhou Yatsen Logistics Co., Ltd. (广州逸仙物流有限公司) (Seal)
		
	By:	 	 /s/ Jianhua Lyu

	Name:	 	LYU Jianhua (吕建华)
	Title:	 	Legal Representative

  
 [Signature Page to the
Series C Preferred Share Purchase Agreement - Yatsen Holding Limited] 

 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the date first
above written. 
  

			
	GROUP COMPANIES:
	
	Guangzhou Yiyan Cosmetics Co., Ltd. (广州逸妍化妆品有限公司) (Seal)
		
	By:	 	 /s/ Jianhua Lyu

	Name:	 	LYU Jianhua (吕建华)
	Title:	 	Legal Representative

  
 [Signature Page to the
Series C Preferred Share Purchase Agreement - Yatsen Holding Limited] 

 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the date first above written. 

 

			
	FOUNDERS AND FOUNDER HOLDCOS:
	
	 /s/ Jinfeng Huang

	HUANG Jinfeng (黄锦峰)
	
	 /s/ Yuwen Chen

	CHEN Yuwen (陈宇文)
	
	 /s/ Jianhua Lyu

	LYU Jianhua (吕建华)
	
	Slumdunk Holding Limited
		
	By:	 	 /s/ Jinfeng Huang

	Name:	 	HUANG Jinfeng (黄锦峰)
	Title:	 	Director
	
	Maybe Cat Holding Limited
		
	By:	 	 /s/ Yuwen Chen

	Name:	 	CHEN Yuwen (陈宇文)
	Title:	 	Director
	
	Icecrystou Holding Limited
		
	By:	 	 /s/ Jianhua Lyu

	Name:	 	LYU Jianhua (吕建华)
	Title:	 	Director

  
 [Signature Page to the
Series C Preferred Share Purchase Agreement - Yatsen Holding Limited] 

 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the date first above written. 

 

			
	THE INVESTOR:
	
	HH PDI Holdings Limited
		
	By:	 	 /s/ Colm John O’s Connell

	Name:	 	Colm John O’Connell
	Title:	 	Authorized Signatory

  
 [Signature Page to the
Series C Preferred Share Purchase Agreement - Yatsen Holding Limited] 

 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the date first above written. 

 

			
	THE INVESTOR:
	
	CMC Pandora Holdings Limited
		
	By:	 	 /s/ Xian Chen

	Name:	 	Chen Xian
	Title:	 	Director

  
 [Signature Page to the
Series C Preferred Share Purchase Agreement - Yatsen Holding Limited] 

 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the date first above written. 

 

			
	THE INVESTOR:
	
	Zhen Fund COV LLC
		
	By:	 	 /s/ Authorized Signatory

	Name:	 	Authorized Signatory
	Title:	 	

  
 [Signature Page to the
Series C Preferred Share Purchase Agreement - Yatsen Holding Limited] 

 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the date first above written. 

 

			
	THE INVESTOR:
	
	VMG Partners IV, L.P.
	By:	 	 /s/ Authorized Signatory

	Name:	 	Authorized Signatory
	Title:	 	
	
	VMG Partners Mentors Circle IV, L.P.
		
	By:	 	 /s/ Authorized Signatory

	Name:	 	Authorized Signatory
	Title:	 	

  
 [Signature Page to the
Series C Preferred Share Purchase Agreement - Yatsen Holding Limited] 

 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the date first above written. 

 

			
	THE INVESTOR:
	
	Banyan Partners Fund III, L.P.
	By:	 	Banyan Partners III Ltd., its general partner
		
	By:	 	 /s/ Anthony Wu

	Name:	 	Anthony Wu
	Title:	 	Authorized Signatory
	
	Banyan Partners Fund III-A, L.P.
	By:	 	Banyan Partners III Ltd., its general partner
		
	By:	 	 /s/ Anthony Wu

	Name:	 	Anthony Wu
	Title:	 	Authorized Signatory

  
 [Signature Page to the
Series C Preferred Share Purchase Agreement - Yatsen Holding Limited] 

 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the date first above written. 

 

			
	THE INVESTOR:
	
	Yellow Bee Limited
		
	By:	 	 /s/ Jinfeng Huang

	Name:	 	HUANG Jinfeng (黄锦峰)
	Title:	 	Director

  
 [Signature Page to the
Series C Preferred Share Purchase Agreement - Yatsen Holding Limited] 

 Schedule A-1 

PRC Companies 

 Schedule A-2 

Founders 
  

			
	 Name of Founders
	  	 PRC ID

	 HUANG Jinfeng

(黄锦峰)
	  	***
	 CHEN Yuwen

(陈宇文)
	  	***
	 LYU Jianhua

(吕建华)
	  	***

 Schedule A-3 

Founder Holdcos 
  

					
	 Name of the Company
	  	 Place of Incorporation
	  	 Ownership

	Slumdunk Holding Limited	  	British Virgin Islands	  	100% owned by HUANG Jinfeng (黄锦峰)
	Maybe Cat Holding Limited	  	British Virgin Islands	  	100% owned by CHEN Yuwen (陈宇文)
	Icecrystou Holding Limited	  	British Virgin Islands	  	100% owned by LYU Jianhua (吕建华)

 Schedule A-4 

Investors 
  

									
	 Name
	  	No. of Series C 
Preferred Shares	 	  	Total Purchase Price	 
	 HH PDI Holdings Limited
	  	 	77,234,740	 	  	US$	43,595,022	 
	 CMC Pandora Holdings Limited
	  	 	38,976,108	 	  	US$	22,000,000	 
	 Zhen Fund COV LLC
	  	 	31,889,543	 	  	US$	18,000,000	 
	 VMG Partners IV, L.P.
	  	 	25,902,281	 	  	US$	14,620,500	 
	 VMG Partners Mentors Circle IV, L.P.
	  	 	672,338	 	  	US$	379,500	 
	 Banyan Partners Fund III, L.P.
	  	 	22,880,011	 	  	US$	12,914,585	 
	 Banyan Partners Fund III-A, L.P.
	  	 	4,037,649	 	  	US$	2,279,044	 
	 Yellow Bee Limited
	  	 	5,314,924	 	  	US$	3,000,000	 
	 Total
	  	 	206,907,594	 	  	US$	116,788,651	 

 Schedule B 

Capitalization Table 

Fully Diluted Capitalization Immediately Prior to the Closing: 

 Schedule B 

Capitalization Table 

Fully Diluted Capitalization Immediately after the Closing: 

 Schedule C 

Disclosure Schedule 

 Schedule D 

Notices 

 Exhibit A 

Fourth Amended and Restated 

Memorandum and Articles of Association of the Company 

 Exhibit B 

Shareholders Agreement 

 Exhibit C 

Restricted Share Agreement 

 Exhibit D 

Management Rights Letter 

 Exhibit E 

Employment Agreement and Confidentiality, Non-Competition and Proprietary Rights Agreement 

 Exhibit F-1 

LIST OF KEY EMPLOYEES 

 Exhibit F-2 

LIST OF SENIOR MANAGEMENT

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