Document:

EX-10.10

 Exhibit 10.10 

SERIES B PREFERRED SHARE PURCHASE AGREEMENT 

THIS SERIES B PREFERRED SHARE PURCHASE AGREEMENT (this “Agreement”) is made as of September 5, 2018 by and among: 

 

	 	(1)	 Mangrove Bay Ecommerce Holding (Cayman), an exempted company incorporated under the laws of the Cayman Islands
(the “Company”); 

  

	 	(2)	 Mangrove Bay Ecommerce (Hong Kong) Limited, a limited liability company incorporated under the laws of Hong
Kong Special Administrative Region of China (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”, together with the Ecommerce Company, the “Domestic Companies”, and each, a “Domestic Company”). 

  

	 	(5)	 the persons and the companies listed on Schedule I-A hereto
(such persons, the “Founders”, and each, a “Founder”; and such companies, the “Founder HoldCos”, and each, a “Founder HoldCo”); and 

 

	 	(6)	 The investors listed on Schedule I-B hereto (the
“Investors”, and each, an “Investor”). 

 The Company, the HK Company, the Domestic
Companies, the WFOE (as defined below) and the subsidiaries and branches (controlled by ownership or contractual commitment or otherwise, including but not limited to the Cosmetics Company) of any of the foregoing are hereinafter referred to as the
“Group Companies”, and each, a “Group Company”. The Company, the HK Company, the Domestic Companies, the Founders, the Founder HoldCos, and the Investors may hereinafter be collectively referred to as the
“Parties”, and each, a “Party”. 
 RECITALS 

A.    The Company is the sole shareholder of the HK Company. The HK Company contemplates to acquire 100% equity interest
in the Ecommerce Company, and the HK Company will establish a wholly foreign owned enterprise in the PRC (the “WFOE”). The Group Companies are engaged in the business of cosmetics E-commerce
(the “Principal Business”); 
 B.    Pursuant to certain loan agreement dated as of May 29, 2018
entered into by and among Banyan Partners Fund III, L.P. (“Banyan Fund III”), Banyan Partners Fund III-A, L.P. (“Banyan Fund III-A”,
together with Banyan Fund III, “Banyan”), the Founders and the Company, Banyan provided a loan to the Company for an aggregate principal amount of US$5,000,000 on the terms and conditions contained therein (the
“Loan”); and 

  
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 C.    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-1 preferred shares, par value US$0.00001 each, of the Company (the “Series
B-1 Preferred Shares”) and certain series B-2 preferred shares, par value US$0.00001 each, of the Company (the “Series
B-2 Preferred Shares”, together with the Series B-1 Preferred Shares, the “Series B Preferred Shares”), with such rights and privileges as set
forth in the Shareholders Agreement (as defined below) and the Amended and Restated Memorandum and Articles of Association of the Company, in form and substance as set forth in Exhibit A (the “Restated Articles”) at the
Closing (as defined below), on the terms and conditions set forth in this Agreement. 
 THE PARTIES HEREBY AGREE AS FOLLOWS: 

SECTION 1 
 ISSUANCE OF
SERIES B PREFERRED SHARES 
 1.1    Issuance of Series B Preferred Shares. Subject to the terms and
conditions hereof and in consideration of the Purchase Price set forth below, the Company hereby agrees to issue and sell to the Investors, and the Investors hereby, severally but not jointly, agree to purchase from the Company a total of (i)
14,503,820 Series B-1 Preferred Shares at a price of US$0.0622 per share, amounting to an aggregate purchase price of US$902,500 (the “Series B-1 Purchase
Price”), and (ii) 171,289,239 Series B-2 Preferred Shares at a price of US$0.0655 per share, amounting to an aggregate purchase price of US$11,219,443 (the “Series B-2 Purchase Price”, together with the Series B-1 Purchase Price, the “Purchase Price”). The Series B Preferred Shares to be purchased and
sold pursuant to this Agreement shall be collectively hereinafter referred to as the “Purchased Shares”, and the ordinary shares, par value US$0.00001 each, of the Company (the “Ordinary Shares”) issuable upon
conversion of the Purchased Shares will be collectively hereinafter referred to as the “Conversion Shares”. 
 SECTION 2

 CLOSING 

2.1    The Closing. The closing of the subscription and issuance of the Series B Preferred Shares hereunder
shall take place remotely via the exchange of documents and signatures on a date specified by the Parties as soon as practical after satisfaction or otherwise waiver of the conditions as set forth in Section 6 and Section 7 (but in any
event within three (3) business days thereafter, except for the conditions to be satisfied at the Closing), or at such other time and place as mutually agreed by the Parties (the “Closing”, and such date, the “Closing
Date”). 
 2.2    Deliveries. 

(a)    At the Closing, the Company shall deliver to each Investor, in addition to any item the delivery of which is made an
express closing condition pursuant to Section 6 hereof, a certificate representing the number of the Purchased Shares that such Investor is purchasing against such Investor’s payment of the Purchase Price therefor. 

  
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 (b)    At the Closing, each Investor shall pay to the Company its
portion of Purchase Price as set forth opposite the name of such Investor in Schedule I-B in the following manner: 

(i)    with respect to such portion of Purchase Price payable by Zhen Partners Fund IV, L.P. (“Zhen
Fund”) and United Aspect Limited (“Hony Capital”) and such portion of Purchase Price in the amount of US$4,250,000 payable by Banyan Fund III and such portion of Purchase Price in the amount of US$750,000 payable by Banyan
Fund III-A, by transferring immediately available funds to the bank account designated by the Company; and 

(ii)    with respect to such portion of Purchase Price in the amount of US$4,250,000 payable by Banyan Fund III and such
portion of Purchase Price in the amount of US$750,000 payable by Banyan Fund III-A, by cancellation of the Loan. 

SECTION 3 

REPRESENTATIONS AND WARRANTIES OF THE INVESTOR 

Each Investor hereby, severally but not jointly, represents and warrants to the Company as follows: 

3.1    Authorization. Such Investor has all requisite power, authority and capacity to enter into the Transaction
Agreements (as defined below) to which it is a party. This Agreement has been duly authorized, executed and delivered by such Investor. The Transaction Agreements, when executed and delivered by such Investor, will constitute valid and legally
binding obligations 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. 

3.2    Purchase for Own Account. Such Investor is acquiring the Purchased Shares solely for investment for such
Investor’s own account not as a nominee or agent, and not with a view to the resale or distribution of any part thereof, and that such Investor has no present intention of selling, granting any participation in, or otherwise distributing the
same. 
 SECTION 4 

REPRESENTATIONS AND WARRANTIES OF THE WARRANTORS 

Each of the Company, the HK Company, the Domestic Companies, the Founders and the Founder HoldCos (together with the Company, the HK Company,
the Domestic Companies and the Founders, the “Warrantors”, and each a “Warrantor”) hereby, jointly and severally, represents and warrants to each Investor, except as set forth in the Disclosure Schedule (the
“Disclosure Schedule”) attached hereto as Exhibit I (which shall be deemed to be representations and warranties of the Warrantors) as of the date hereof, and as of the Closing Date, as follows. 

4.1    Organization, Good Standing and Qualification. Each Group Company is duly organized, validly existing and in
good standing (or equivalent status in the relevant jurisdiction) under, or by virtue of, the laws of the jurisdiction of its incorporation or establishment, and has all requisite corporate power and authority to own its properties and assets and to
carry on its business as now conducted and as proposed to be conducted and to perform each of its obligations hereunder and under any agreement contemplated hereunder to which it is a party, the lack of which could result in a material adverse
effect to the Group Companies taken as a whole. Each Group Company is duly qualified to transact business and is in good standing in each jurisdiction. 

  
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 4.2    Capitalization. Immediately prior to the Closing, the
authorized share capital of the Company consists of the following: 
 (a)    Ordinary Shares. A total of
4,363,824,941 authorized Ordinary Shares, of which 773,926,180 Ordinary Shares are outstanding and issued. 

(b)    Preferred Shares. A total of 200,000,000 authorized series seed preferred shares, par value US$0.00001 each
(the “Series Seed Preferred Shares”), all of which are issued and outstanding; a total of 66,667,000 authorized series a-1 preferred shares, par value US$0.00001 each (the “Series A-1 Preferred Shares”), all of which are issued and outstanding; a total of 183,715,000 authorized series a-2 preferred shares, par value US$0.00001 each (the
“Series A-2 Preferred Shares”), all of which are issued and outstanding; a total of 14,503,820 authorized series b-1 preferred shares, par value
US$0.00001 each (the “Series B-1 Preferred Shares”) , none of which are issued and outstanding; and a total of 171,289,239 authorized series b-2
preferred shares, par value US$0.00001 each (the “Series B-2 Preferred Shares”, together with the Series Seed Preferred Shares, the Series A-1 Preferred
Shares, the Series A-2 Preferred Shares and the Series B-1 Preferred Shares, the “Preferred Shares”), none of which are issued and outstanding. 

(c)     Options, Warrants, Reserved Shares. Except for (i) the conversion privileges of the Preferred Shares,
(ii) the preemptive rights provided in the shareholders agreement to be entered into at the Closing in form and substance as set forth in Exhibit B (the “Shareholders Agreement”), (iii) the repurchase rights provided in
the restricted share agreement to be entered into at the Closing in form and substance as set forth in Exhibit C (the “Restricted Share Agreement”), and (iv) up to 211,570,000 Ordinary Shares reserved under the
ESOP (as defined below) immediately prior to the Closing, there are no options, warrants, conversion privileges or other rights, or agreements with respect to the issuance thereof, presently outstanding to purchase any equity interest or registered
capital of any Group Company. Apart from the exceptions noted in the Transaction Documents (as defined below), no shares of any Group Company’s outstanding share capital, registered capital, or shares issuable upon exercise or exchange of any
outstanding options or other shares issuable by any Group Company, are subject to any encumbrance, preemptive rights, rights of first refusal or other rights to purchase such shares (whether in favor of such Group Company or any other person).
 
 (d)     Outstanding Security Holders. Schedule II attached hereto sets forth the capitalization
tables of the Company immediately prior to the Closing, and immediately after the Closing, in each case reflecting all then issued and outstanding shares of the Company (on a fully diluted basis). 

4.3    Subsidiaries. None of the Company, the HK Company and the Domestic Companies presently owns or controls,
directly or indirectly, any interest in any other corporation, partnership, trust, joint venture, association, or entity than a Group Company. No Group Company is obligated to make any investment in or capital contribution in or on behalf of any
other person. 

  
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 4.4    Authorization. All corporate actions on the part of each
Group Company, its officers, directors and shareholders/stockholders necessary for the authorization, execution and delivery of this Agreement, the Shareholders Agreement, the Restricted Share Agreement (as defined below) and any other agreement to
which it is a party and the execution of which is contemplated hereunder (collectively the “Transaction Agreements”, together with the Restated Articles, collectively, the “Transaction Documents”), and the
performance of all obligations of such Group Company hereunder and thereunder, and the authorization, issuance (or reservation for issuance), sale and delivery of the Purchased Shares have been taken or will be taken prior to the Closing. Each
Transaction Agreement, when executed and delivered, constitutes the valid and legally binding obligation of each of the Warrantors, enforceable against such Warrantor to the extent it is a party thereto, in accordance with its 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. 

4.5    Valid Issuance of Purchased Shares. The Purchased Shares, when issued, sold and delivered in accordance with
the terms of this Agreement, will be duly and validly issued, fully paid and non-assessable. The Conversion Shares have been duly and validly reserved for issuance and, upon issuance in accordance with the
terms of the Restated Articles, will be duly and validly issued, fully paid and non-assessable. 

4.6    Employee Matters. No Founder is obligated under any agreement that would in any material aspect interfere
with the use of his or her best efforts to carry out his duties for the respective Group Company. To the best knowledge of the Warrantors, the carrying on of each Group Company’s business by each Founder will not in any material aspect,
conflict with, or result in a material breach of the terms under, any contract under which any of such Founder is now obligated. 

4.7    Litigation. There is no material suit, legal proceeding, arbitration or government investigation
(“Action”) pending against 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. 
 4.8    Compliance with Laws. None of the Group Companies is in any
material aspect in violation of any applicable law in respect of the conduct of its principal business. All consents, approvals or filings with any governmental authority and any third party on the part of each Warrantor required in connection with
the consummation of the transactions contemplated hereunder shall have been obtained prior to and be effective as of the Closing. Each Group Company has all authority necessary for the conduct of its business as now being conducted by it, the lack
of which could result in a material adverse effect to the Group Companies taken as a whole. 
 4.9    Compliance with
Other Agreements. 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. 

  
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 4.10    Financial Statements. The Warrantors have delivered to
the Investors the management accounts of the Domestic Enterprise as of June 30, 2018 (the “Financial Statements” and June 30, 2018, the “Statement Date”). Such Financial Statements present fairly the
financial condition of the Domestic Enterprise at the date or dates therein indicated and the results of operations for the period or periods therein specified. 

4.11    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. 

4.12    Activities Since Statement 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. 
 4.13    Liability. Except as reflected in the Financial Statements, since the Statement Date, no
Group Company has any indebtedness for borrowed money not within the ordinary course of business, which 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. 
 4.14    Status of Proprietary Assets. 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. 

4.15    Disclosure. Each Warrantor has fully provided each Investor with all material information that such
Investor has requested for deciding whether to purchase the shares of the Company. No representation or warranty by any Warrantor in this Agreement and no information or materials provided by any Warrantor to the Investors in connection with the
negotiation or execution of this Agreement or any agreement contemplated hereby contains or will contain any untrue statement of a material fact, or omits or will omit to state any material 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. No financial forecasts or forward-looking statements in any business plans or other materials provided by any Warrantor to the Investors have been
prepared based on unreasonable assumptions in any material respect. 

  
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 SECTION 5 

COVENANTS OF WARRANTORS 

Each Warrantor hereby, jointly and severally, covenants to each Investor as follows: 

5.1    Use of Proceeds. Other than repayment of the Loan (if applicable) and payment of (i) special dividends
in the amount of US$742,500 to Maybe Cat Holding Limited and (ii) special dividends in the amount of US$160,000 to Icecrystou Holding Limited, the proceeds received from the issuance and sale of the Purchased Shares hereunder shall be used by
the Company solely for the development and operation of the Principal Business and capital and other general expenditure in accordance with the Shareholders Agreement and the Restated Articles. 

5.2    Availability of Ordinary Shares. At all times there shall be made available, free from any lien, for
issuance and delivery upon conversion of the Series B Preferred Shares such number of Ordinary Shares or other shares in the share capital of the Company as are from time to time issuable upon conversion of the Series B Preferred Shares, from time
to time, and the Warrantors will take all steps necessary to increase its authorized share capital to provide for sufficient number of Ordinary Shares issuable upon conversion of the Series B Preferred Shares. 

5.3    Establishment of ESOP. The Company agrees, as soon as practicable after the Closing, to take whatever
actions that are necessary to establish the employee equity incentive plan (the “ESOP”) duly approved in accordance with the Shareholders Agreement and the Restated Articles. 

5.4    Filing of Restated Articles. Within ten (10) business days after the Closing, the Company shall file,
and the Warrantors shall cause the Company to file the Restated Articles with the Registrar of Company of the Cayman Islands, and the evidence of which shall be delivered to the Investor. 

5.5    Priority Investment Right. Within ten (10) years after the date of this Agreement, in the event that
any Founder engages, invests, operates, or develops any new business or entities other than the Group Companies (the “New Project”), each Investor shall have right of first refusal to invest and participate in such New Project on
the same terms and conditions same as applicable to other investors of the New Project. 
 5.6    Business of the
Founder HoldCos, the Company and the HK Company. The business of the Founder HoldCos shall be restricted to the holding of shares or equity interest in the Company. Except as otherwise approved by the Board of Directors pursuant to the
Shareholders Agreement, the business of the Company and the HK Company shall be restricted to the holding of shares or equity interest in the HK Company or the WFOE, respectively. 

5.7    Business of the WFOE and the Domestic Companies. Prior to entering into any new
business other than those in the scope of the Principal Business, each Warrantor shall use its best efforts and take all necessary actions to implement and carry out the new business plan subject to approval from the Board of Directors pursuant to
the Shareholders Agreement. From the date of this Agreement until the Closing Date, the business of the Group Companies shall be limited to the Principal Business. 

  
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 From the date hereof until the Closing Date, without Banyan’s prior written approval,
the Domestic Companies shall not undertake any activities which may result in a material variation in excess of RMB 40,000,000 with respect to the non-operating debts/liabilities or the owners’ equity of
the Domestic Companies. 
 5.8    Use of Investors’ Name or Logo. Without the prior written consent of the
Investors, and whether or not the Investors are then the shareholders of the Company, none of the Group Companies, their shareholders (excluding the Investors), nor the Founders shall use, publish or reproduce the names of the Investors or any
similar names, trademarks or logos in any of their marketing, advertising or promotion materials or otherwise for any marketing, advertising or promotional purposes, except for the fact of the equity investments and shareholding in the Group
Companies by the Investors (and in any such case shall not disclose the aggregate or individual investment amounts, pricing or ownership percentage, or any of the term of the Transaction Documents). 

5.9    Employment Agreement and Confidentiality and Intellectual Property Rights Agreement. The Group Companies
shall cause all of their respective current employees to enter into employment agreements and confidentiality and intellectual property rights agreements in standard form in compliance with the applicable laws and regulations in material aspects.
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 in material aspects. 
 5.10    Accounting. As soon as practicable after Closing, the Group Companies
shall use commercially reasonable efforts to establish and maintain the accounting policies and financial system in compliance with all applicable laws and regulations in material respect. 

5.11    Permit and License. As soon as practicable, the Group Companies shall, and the Founders shall cause the
Group Companies to obtain all permits and licenses and any similar authority necessary in compliance with applicable laws in material respect for the conduct of their business as currently conducted and as proposed to be conducted. 

5.12    D&O Insurance. The Company shall obtain, upon the request of the Investors, at the cost no more than
the average market price of such insurance, for the directors nominated by the Investors insurance against liability for negligence, default, breach of duty or breach of trust incurred in the course of discharging their duties as director or officer
of the Company, including without limitation, director and officer liability insurance in an agreed insured amount. 

5.13    Regulatory Compliance. The Founders and each Group Company shall comply with all applicable laws and
regulations in the PRC in connection with the operations of the Group Companies in material respect. Each Warrantor shall 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 defined in Section 6.12)) as and when required by applicable laws and regulations. The Warrantors shall
procure each entity described above and its respective shareholders to be in compliance with such requirements and, subject to applicable laws and policies and upon resolutions of the Board of Directors, cause the profits, dividends and other
distributions from the WFOE (or any successor entity) to be repatriated to the Company. 

  
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 5.14    Deregistration of Subsidiaries. Within twelve
(12) months following the Closing, the Ecommerce Company shall complete the deregistration of two domestic subsidiaries, the Guangzhou Yatsen Pet Products Co., Ltd. (
广州逸仙宠物用品有限公司) and Guangzhou Yimeng Trading Co.,
Ltd.( 广州逸萌商贸有限公司). 

5.15    Completion of Acquisition of Ecommerce Company. Within three (3) months following the Closing, the HK
Company shall complete the Acquisition of the Ecommerce Company (as defined in the Section 6.11 below) in full compliance with the applicable laws and regulations, and shall deliver written record evidencing the completion of the aforesaid
transaction to the Investors. 
 5.16    Establishment of WFOE and Execution of Joinder. Within three
(3) months following the Closing, the Warrantors shall cause the WFOE to be duly established, and the WFOE, upon establishment, shall execute a Joinder to this Agreement and the Shareholders Agreement in the form attached hereto as Exhibit
G, under which the WFOE shall agree to be bound by and subject to the terms of this Agreement and the Shareholders Agreement. 

5.17    Business of Beijing Company. The Warrantor agrees that, without the prior written approval of the
Investors, Beijing Yitong Technology Co., Ltd. (北京逸同科技有限公司), 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. 

5.18    Filing of Domestic Non-special Purpose Cosmetic Products. Within
three (3) months following the Closing, the Group Companies shall duly file 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 competent authorities legally and appropriately, including but not limited to the products as listed in Exhibit E hereto. 

SECTION 6 
 CONDITIONS TO
INVESTORS’ OBLIGATIONS AT THE CLOSING 
 The obligation of each Investor to purchase such number of the Purchased Shares being
purchased by it under this Agreement at the Closing is subject to the fulfillment, to the satisfaction of such Investor, or waiver by such Investor, on or prior to the Closing, of the following conditions: 

6.1    Representations and Warranties True and Correct. The representations and warranties of the Warrantors
contained in Section 4 shall be true and correct in all material aspects when made, and shall be true and correct in all material aspects as of the Closing Date with the same force and effect as if they had been made on and as of such date
except for such representations and warranties only applicable on a particular date as set forth in Section 4. 

6.2    Performance of Obligations. Each Warrantor shall have performed and complied with all agreements,
obligations and conditions contained in this Agreement that are required to be performed or complied with by it on or before the Closing, and shall have obtained all approvals, consents, waivers and qualifications necessary to complete the
transactions contemplated hereby. 

  
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 6.3    Approvals, Consents and Waivers. Each Group Company shall
have obtained any and all approvals, consents and waivers necessary for consummation of the transactions contemplated by this Agreement, including, but not limited to, (i) all permits, authorizations, approvals, consents or permits of any
governmental authority or regulatory body, and (ii) the waiver by the existing shareholders of the Company of any preemptive rights and all similar rights in connection with the issuance of the Purchased Shares at the Closing. 

6.4    Proceedings and Documents. All corporate and other proceedings in connection with the transactions
contemplated hereby and all documents and instruments incident to such transactions to be passed, executed and/or delivered by the Group Companies shall be satisfactory in substance and form to such Investor. 

6.5    Adoption and Registration of Restated Articles. The Restated Articles shall have been duly adopted by
shareholders’ resolutions of the Company and such Investor shall have received an email confirmation from the Company’s registered officer evidencing that the Restated Articles have been duly filed with the Registrar of Companies of the
Cayman Islands. 
 6.6    Board of Directors of the Company. The Company’s Board shall have been constituted
in accordance with the Restated Articles and the Shareholders Agreement. A copy of the register of directors of the Company, certified by a director of the Company as true and complete as of the Closing Date, updated to reflect the person appointed
by Banyan as a director of the Company, shall have been delivered to such Investor. 
 6.7    Register of
Members. A copy of the Company’s register of members, certified by a director of the Company as true and complete as of the Closing Date, updated to show such Investor as the holder of such number of the Purchased Shares being purchased by
it under this Agreement shall have been delivered to such Investor. 
 6.8    Employment Agreement; Confidentiality
and Intellectual Property Rights Assignment Agreement; Non-Compete and Non-Solicitation Agreement. Each of the Founders and Key Employees listed in Exhibit D
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. 
 6.9    Shareholders
Agreement. The Company and all other parties (except for the Investors) to the Shareholders Agreement shall have executed and delivered to such Investor the Shareholders Agreement. 

6.10    Restricted Share Agreement. The Company and all other parties (except for the Investors) to the Restricted
Share Agreement shall have executed and delivered to such Investor the Restricted Share Agreement. 

6.11    Acquisition of Ecommerce Company. The HK Company shall have entered into a share purchase agreement with
the shareholders of the Ecommerce Company, pursuant to which the HK Company agrees to purchase, and such shareholders agree to sell, 100% equity interest in the Ecommerce Company (the “Acquisition of Ecommerce Company”). 

  
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 6.12    Circular 37 Registrations. Each of the Founders shall
have duly completed and obtained the foreign exchange registration with the competent local branch of the State Administration of Foreign Exchange (“SAFE”) in respect of his direct and indirect record and beneficial ownership of any
equity securities in the Company and each other Group Company as required under the applicable SAFE rules and regulations (including but not limited to the Notice Regarding Certain Administrative Measures on Offshore Investment and Financing and
Round-trip Investments by PRC Residents Through Special Purpose Vehicles by PRC Residents issued by the SAFE on July 4, 2014 (the “Circular 37”)). 

6.13    Termination of Prior Onshore Investment Agreements. All the Prior Onshore Investment Agreements shall have
been duly terminated in the form and substance satisfactory to the Investors. For purpose of this Section 6.16, the Prior Onshore Investment Agreements shall mean (i) 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 (ii) 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 the date of October 9th, 2017. Management Rights Letters. 

6.14    Each of Banyan and Zhen Fund shall have received from the Company a management rights letter in the form attached
hereto as Exhibit F duly executed by the Company. 
 6.15    No Material Adverse Change. There shall have
not been any material adverse change in the business, affairs, prospects, operations, properties, assets or condition of the Group Companies taken as a whole since the date hereof.  

6.16    Compliance Certificate. At the Closing, the Warrantors shall deliver to such Investor a certificate, dated
as of the Closing Date, certifying that all the conditions specified in this Section 6 have been fulfilled. 
 SECTION 7 

CONDITIONS TO WARRANTORS’ OBLIGATIONS AT THE CLOSING 

The obligations of the Company to issue the Series B Preferred Shares under this Agreement are subject to the fulfillment, or waiver by the
Company, at or before the Closing of the following conditions: 
 7.1    Representations and Warranties True and
Correct. The representations and warranties made by each Investor in Section 3 hereof shall be true and correct and complete in all material aspects when made, and shall be true and correct and complete in all material aspects as of the
date hereof and as of the Closing Date as with the same force and effect as if they had been made on and as of such dates, subject to changes contemplated by this Agreement. 

7.2    Performance of Obligations. Each Investor shall have performed and complied with all agreements, obligations
and conditions contained in this Agreement that are required to be performed or complied with by such Investor on or before the Closing. 

  
 11 

 7.3    Shareholders Agreement. Each Investor shall have executed
and delivered to the Company the Shareholders Agreement. 
 7.4    Restricted Share Agreement. Each Investor
shall have executed and delivered to the Company the Restricted Share Agreement. 
 SECTION 8 

MISCELLANEOUS 

8.1    Indemnity. 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, including without limitation claims by tax authorities against the Company for all taxable periods ending on or before the Closing (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. 

Notwithstanding anything to the contrary contained herein, the aggregate liabilities of the Warrantors pursuant to this Section 8.1 for
any Investor under the Transaction Documents shall not exceed the Purchase Price paid for the Purchased Shares being purchased by such Investor hereunder, provided further that the aggregate liabilities of each Founder and his applicable Founder
HoldCo pursuant to this Section 8.1 for any Investor under the Transaction Documents shall not exceed an amount equal to the lower of (i) (X) with respect to Banyan, the Purchase Price paid for the Purchased Shares being purchased by such
Investor hereunder; and (Y) with respect to Zhen Fund and Hony Capital, the Purchase Price for the Purchased Shares being purchased by such Investor hereunder plus the respective total investment amount paid by such Investor to the Group
Companies as a whole prior to the execution of this Agreement; 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 an 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). 

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

  
 12 

 8.3    Successors and Assigns. Except as otherwise expressly
provided herein, the provisions hereof shall inure to the benefit of, and be binding upon, the successors, assigns, heirs, executors and administrators of the parties hereto whose rights or obligations hereunder are affected by such amendments. 

8.4    Entire Agreement. The Transaction Documents, and 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 nondisclosure agreements executed by the parties hereto prior to the date hereof, which agreements shall continue in full force and effect until
terminated in accordance with their respective terms. 
 8.5    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, upon delivery;
(b) when sent by facsimile at the number set forth in Exhibit H hereto, upon receipt of confirmation of error-free transmission; (c) when sent by e-email on the same day as it was sent
to the e-mail address provided by the intended recipient, and it shall not be necessary for the receipt of the e-mail to be acknowledged by the recipient; (d) seven
(7) business days after deposit in the mail as air mail or certified mail, receipt requested, postage prepaid and addressed to the other Party as set forth in Exhibit H; or (e) three (3) business days after deposit with an
overnight delivery service, postage prepaid, addressed to the parties as set forth in Exhibit H with next-business-day delivery guaranteed, provided that
the sending party receives a confirmation of delivery from the delivery service provider. 
 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. A Party may change or supplement the addresses given above, or designate additional addresses, for purposes of this Section 8.5 by giving, the other Party written notice of the new address in the manner set forth above. 

8.6    Amendments and Waivers. Any term of this Agreement may be amended only with the written consent of the
Investors, the Founders and the Company. 
 8.7    Delays or Omissions. No delay or omission to exercise any
right, power or remedy accruing to any Party hereto, upon any breach or default of any other Party hereto under this Agreement, shall impair any such right, power or remedy of such former 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 of default thereafter occurring. 

8.8    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. Unless otherwise expressly provided herein, all references to Sections and Exhibits herein are to Sections and Exhibits of this Agreement. 

  
 13 

 8.9    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. 

8.10    Severability. If any provision of this Agreement is found to be invalid or unenforceable, then such
provision shall be construed, to the extent feasible, so as to render the provision enforceable and to provide for the consummation of the transactions contemplated hereby on substantially the same terms as originally set forth herein, and if no
feasible interpretation would save such provision, it shall be severed from the remainder of this Agreement, which shall remain in full force and effect unless the severed provision is essential to the rights or benefits intended by the parties. In
such event, the parties shall use commercially reasonable efforts to negotiate, in good faith, a substitute, valid and enforceable provision or agreement which most closely effects the parties’ intent in entering into this Agreement. 

8.11    Confidentiality and Non-Disclosure. 

(a)    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. 

(b)    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. 

(c)    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. 

(d)    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 8.11 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.

 (e)    Other Information. The provisions of this Section 8.11 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. 

  
 14 

 8.12    Further Assurances. Each Party shall from time to time
and at all times hereafter make, do, execute, or cause or procure to be made, done and executed such further acts, deeds, conveyances, consents and assurances without further consideration, which may reasonably be required to effect the transactions
contemplated by this Agreement. 
 8.13    Dispute Resolution. Any dispute, controversy or, claim or difference
of any kind whatsoever arising out of, relating to or in connection with this Agreement, including the existence, validity, interpretation, performance, breach or termination thereof, the validity, scope and enforceability of this arbitration
provision and any dispute regarding no-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”) in accordance with the HKIAC Administered Arbitration Rules in force at the time of the commencement of the arbitration. 

8.14    Expenses. The Company shall bear all legal, accounting and other out of pocket fees, costs and expenses
incurred by Banyan 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 RMB300,000 (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 Banyan. 

8.15    Termination. This Agreement may be terminated by the Company or an Investor by written notice to the other
parties of this Agreement, if the Closing has not occurred within six (6) months after the date of this Agreement, provided the terminating party does not materially breach this Agreement. Such termination under this Section 8.15 shall be
without prejudice to any claims for damages or other remedies that the parties may have under this Agreement or applicable law. For the avoidance of doubt, termination of this Agreement by an Investor shall solely apply to the rights and obligations
under this Agreement with respect to such Investor and shall no event affect the rights and obligations under this Agreement with respect to other Investors. 

8.16    Several but Not Joint Obligations. Each Investor’s obligations under this Agreement are several and
not joint. 
 8.17    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 B 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 8.17. 
 8.19    Effect. This Agreement shall take effect upon execution
by the Parties. 
 [REMAINDER OF THIS PAGE LEFT INTENTIONALLY BLANK] 

  
 15 

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

			
	GROUP COMPANIES:
	
	Mangrove Bay Ecommerce Holding (Cayman)
		
	By:	 	 /s/ Jinfeng Huang

	Name:	 	HUANG Jinfeng (黄锦峰)
	Title:	 	Director
	
	Mangrove Bay Ecommerce (Hong Kong) Limited
		
	By:	 	 /s/ Jinfeng Huang

	Name:	 	HUANG Jinfeng (黄锦峰)
	Title:	 	Director
	
	Guangzhou Yatsen Ecommerce Co., Ltd.
	(广州逸仙电子商务有限公司)
	(Chop)
		
	By:	 	 /s/ Jinfeng Huang

	Name:	 	HUANG Jinfeng (黄锦峰)
	Title:	 	Director
	
	Guangzhou Yatsen Cosmetics Co., Ltd.
	(广州逸仙化妆品有限公司)
	(Chop)
		
	By:	 	 /s/ Jinfeng Huang

	Name:	 	HUANG Jinfeng (黄锦峰)
	Title:	 	Director

 Mangrove Bay Ecommerce Holding (Cayman) Series B Financing 

Signature Page to Series B Preferred Share Purchase Agreement 

 IN WITNESS WHEREOF, the Parties 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

 Mangrove Bay Ecommerce Holding (Cayman) Series B Financing 

Signature Page to Series B Preferred Share Purchase Agreement 

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

			
	INVESTORS:
	
	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

 Mangrove Bay Ecommerce Holding (Cayman) Series B Financing 

Signature Page to Series B Preferred Share Purchase Agreement 

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

			
	INVESTORS:
	
	Zhen Partners Fund IV, L.P.
		
	By:	 	 /s/ Authorized Signatory

	Name:	 	Authorized Signatory
	Title:	 	

 Mangrove Bay Ecommerce Holding (Cayman) Series B Financing 

Signature Page to Series B Preferred Share Purchase Agreement 

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

			
	INVESTORS:
	
	United Aspect Limited
		
	By:	 	 /s/ Authorized Signatory

	Name:	 	Authorized Signatory
	Title:	 	

 Mangrove Bay Ecommerce Holding (Cayman) Series B Financing 

Signature Page to Series B Preferred Share Purchase Agreement 

 SCHEDULE I-A 

LIST OF FOUNDERS AND FOUNDER HOLDCOS 
  

							
	 Founder
	  	 PRC ID Number
	  	 Founder HoldCo
	  	 Shareholding in

Founder HoldCo

	 HUANG Jinfeng

(黄锦峰)
	  	***	  	Slumdunk Holding Limited	  	100%
	 LYU Jianhua

(吕建华)
	  	***	  	Icecrystou Holding Limited	  	100%
	 CHEN Yuwen

(陈宇文)
	  	***	  	Maybe Cat Holding Limited	  	100%

 SCHEDULE I-B 

LIST OF INVESTORS 
  

							
	 Investor
	  	 Number of Purchased Shares
	  	Purchase Price	 
	 Banyan Partners Fund III, L.P.
	  	 12,328,247 Series B-1 Preferred Shares;

118,059,186 Series B-2 Preferred Shares
	  	US$	8,500,000	 
	 Banyan Partners Fund III-A, L.P.
	  	 2,175,573 Series B-1 Preferred Shares;

20,833,974 Series B-2 Preferred Shares
	  	US$	1,500,000	 
	 Zhen Partners Fund IV, L.P.
	  	 15,267,179 Series B-2 Preferred Shares
	  	US$	1,000,000	 
	 United Aspect Limited
	  	 17,128,900 Series B-2 Preferred Shares
	  	US$	1,121,943	 

 SCHEDULE II 

CAPITALIZATION TABLE OF THE COMPANY 

 EXHIBIT A 

FORM OF RESTATED ARTICLES 

 EXHIBIT B 

FORM OF SHAREHOLDERS AGREEMENT 

 EXHIBIT C 

FORM OF RESTRICTED SHARE AGREEMENT 

 EXHIBIT D 

LIST OF KEY EMPLOYEES 

 EXHIBIT E 

LIST OF NON-SPECIAL PURPOSE COSMETIC PRODUCTS TO BE FILED 

 EXHIBIT F 

MANAGEMENT RIGHTS LETTER 

 EXHIBIT G 

JOINDER 
 This Joinder
(the “Joinder”) is made as of             , by                  (the “Joining
Party”). 
 RECITALS 
 On
                , 2018, the Company, the HK Company, the Domestic Companies, the Founders, the Founder Holdcos, the Banyan Partners Fund III, L.P., the Banyan
Partners Fund III-A, L.P., the Zhen Partners Fund IV, L.P. and United Aspect Limited entered into a Series B Preferred Shares Purchase Agreement (the “Share Purchase Agreement”). 

On                 , 2018, the Company, the HK Company,
the Domestic Companies, the Founders, the Founder Holdcos, the Banyan Partners Fund III, L.P., the Banyan Partners Fund III-A, L.P., the Zhen Partners Fund IV, L.P. and United Aspect Limited (collectively with the Banyan Partners Fund III, L.P., the
Banyan Partners Fund III-A, L.P. and the Zhen Partners Fund IV, L.P., the “Investors” and each an “Investor”) entered into a Shareholders Agreement (the “Shareholders Agreement”, collectively with the Share Purchase
Agreement, the “Transaction Documents”). 
 The Joining Party wishes to enter into the Share Purchase Agreement and the
Shareholders Agreement as a party of such agreements. 
 THIS JOINDER WITNESSES as follows: 

1. Interpretation. Capitalized terms not otherwise defined in this Joinder shall have the meanings given to them in the Transaction Documents. 

2. Covenant; Enforceability. The Joining Party hereby ratifies and accedes to the terms of, agrees to be bound by, and assumes all rights or
obligations, which shall have been granted to or have been undertaken by the “WFOE” under the terms and conditions of the Transaction Documents, as if the Joining Party had been an original party to the Transaction Documents. Each of the
Company, HK Company, the Domestic Companies, the Founders, the Founder Holdcos and the Investors shall be entitled to enforce the Transaction Documents against the Joining Party, and the Joining Party shall be entitled to all rights and benefits of
WFOE under the Transaction Documents, in each case as if such Joining Party had been an original party to the Transaction Documents since the date hereof. 

3. Counterparts. This Joinder may be signed in any number of counterparts which together shall form one and the same agreement. 

4. Governing Law; Dispute Resolution. This Joinder shall be governed by and construed exclusively in accordance with the Hong Kong laws, without regard
to principles of conflicts of law thereunder. In the event of any dispute under this Joinder, such dispute shall be resolved pursuant to Section 8.13 of the Share Purchase Agreement, which is incorporated by reference herein. 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 

 IN WITNESS WHEREOF this Joinder has been executed by the undersigned on the date set forth
above. 
  

			
	JOINING PARTY:
		
	By:	 	  

	Name:	 	
	Title:	 	Legal Representative

 EXHIBIT H 

NOTICES 

 EXHIBIT I 

DISCLOSURE SCHEDULEEX-10.11

 Exhibit 10.11 

 
  

SERIES B-3 PREFERRED SHARE PURCHASE AGREEMENT 

by and among 
 MANGROVE BAY
ECOMMERCE HOLDING (CAYMAN) 
 HH SPR-XIII Holdings Limited 

and 
 THE OTHER PARTIES NAMED
HEREIN 
 September 30, 2018 
  

 

 SERIES B-3 PREFERRED SHARE PURCHASE AGREEMENT

 This SERIES B-3 PREFERRED SHARE PURCHASE AGREEMENT (this “Agreement”) is
entered into on September 30, 2018 by and among: 
 A.    Mangrove Bay Ecommerce Holding (Cayman), an
exempted company incorporated under the laws of the Cayman Islands (the “Company”); 

B.    Mangrove Bay Ecommerce (Hong Kong) Limited, a limited liability company incorporated under the laws of
Hong Kong (the “HK Company”); 
 C.    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”); 
 D.    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”); 
 E.    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”); 
 F.    Guangzhou Yimeng Trading Co., Ltd. (广州逸萌商贸有限公司), a limited liability company incorporated under the laws of the PRC (“Yimeng Trading”,
together with the Ecommerce Company, the Cosmetics Company and Yatsen Pet Products, the “PRC Companies”, and each, a “PRC Company”); 

G.    The Persons as set forth on Schedule A-1 (each a
“Founder” and together, the “Founders”); 
 H.    The entities as set forth on
Schedule A-2 (each a “Founder Holdco” and together, the “Founder Holdcos”); and 

I.    The entity as set forth on Schedule A-3 (the “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 the
Investor certain Series B-3 Preferred Shares and the Investor desires to purchase such Series B-3 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 

 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. 
 “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 2.2. 

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

“Compliance Laws” shall have the meaning ascribed to it in Section 3.25. 

  
 2 

 “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 9.4. 
 “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 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. 

“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. 

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

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

“Founder Holdco” is defined in introductory paragraph H. 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. 

  
 3 

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

“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 B. 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
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. 

“Indemnification Agreement” shall mean the Indemnification Agreement between the Company, the Investor and the director
appointed by the Investor to be entered into on or prior to the Closing in substantially the form attached hereto as Exhibit E. 

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

“Investor” is defined in introductory paragraph I. of this Agreement. 

“Key Employee” shall mean the individuals listed in Exhibit G. 

“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 Investor on or prior
to the Closing, which shall be in substantially the form attached hereto as Exhibit D. 

  
 4 

 “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(h). 

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

 “Ordinary Shares” shall mean the Company’s ordinary shares, par value US$0.00001 per share. 

“Original Purchase Price” shall mean the per share price of US$0.0820 at which the Investor has agreed to purchase, and the
Company has agreed to sell and issue, the Series B-3 Preferred Shares under this Agreement. 

“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 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 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. 

  
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 “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$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. 

“Restated M&A” shall mean the Second Amended and Restated Memorandum and Articles of Association of the Company in the
form attached as Exhibit A hereto. 
 “Restructuring” shall have the meaning ascribed to it in Section 5.18.

 “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(h). 

“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. 
 “Shares” shall mean all
Preferred Shares and all Ordinary Shares of the Company. 
 “Shareholders Agreement” shall mean the Amended and Restated
Shareholders Agreement among the Investor, 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. 

  
 6 

 “Restricted Share Agreement” shall mean the Amended and Restated Restricted
Share Agreement among the Investor, 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 (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. 

“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 Indemnification Agreement, 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. 

1.2    Warrantor Obligations. Where this Agreement or any 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. 

  
 7 

 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	 	Founders
			
		 	 Schedule A-2
  

Schedule A-3
  

Schedule B
	 	 Founder Holdcos
  

Investor
  

Capitalization Table

			
		 	Schedule C	 	Disclosure Schedule
			
		 	Schedule D	 	Notices
			
		 	Exhibit A	 	Second 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	 	Indemnification Agreement
			
		 	Exhibit F	 	Employment Agreement and Confidentiality, Non-Competition and Proprietary Rights Agreement
			
		 	Exhibit G	 	List of Key Employees
			
		 	Exhibit H	 	List of Non-Special Purpose Cosmetic Products to be Filed
			
		 	Exhibit I	 	List of Domain Name and We-Media Account

  

	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 Investor, and the Investor shall purchase from the Company at the Original Purchase Price, up to an aggregate of 85,351,118 Series B-3 Preferred Shares in the amount set forth opposite
the name of the Investor in Schedule A-3 (the “Purchased Shares”). The Investor shall pay the purchase price set forth opposite the name of the Investor in Schedule A-3 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 Investor 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
Investor 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 the Investor: 

(a)    (i) a certified true copy of the register of members of the Company as at the date of the Closing reflecting the
Investor’s ownership of the Purchased Shares, and (ii) a certified true copy of the register of directors of the Company as at the date of the Closing, reflecting the appointment of the director designated by the Investor as contemplated
by Section 5.11 hereof, certified by the registered agent of the Company to be a true and complete copy thereof; 

  
 8 

 (b)    a certified true copy of the share certificate to the Investor
representing the Purchased Shares purchased by the Investor, with the original (duly signed and sealed for and on behalf of the Company) to be delivered to the 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 

(e)    Board, and if necessary, 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 Investor 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 Investor
and are true, correct and complete and are in full force and effect. 

  
 9 

 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 Transaction Documents. 
 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 4,278,473,823 authorized Ordinary Shares of which 773,926,180 shares are
issued and outstanding. 
 (b)    Preferred Shares. A total of 721,526,177 authorized Preferred Shares, (i)
200,000,000 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) 183,715,000 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, 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 85,351,118 Series B-3 Preferred Shares for issuance and sale under this Agreement; (ii) 721,526,177 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 3.3, 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. 

  
 10 

 (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. 

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 and Yimeng Trading) 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 and Yimeng Trading have been transferred to Ecommerce Company prior to the Closing. Yatsen Pet Products and Yimeng Trading have not engaged in any actual
business activities. 
 3.5    PRC Companies. Except as disclosed in Section 3.5 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. 

(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. 

  
 11 

 (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 of Industry and Commerce, 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. 
 (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 3.5(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 3.5(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 3.5(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. 

  
 12 

 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. 

(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, 2017, and (2) unaudited consolidated balance sheets, cash flow statements and income statements of the PRC Companies as of and
for the monthly period ended August 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. 

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 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 Investor. 

  
 13 

 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. 

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 Investor and its counsel. 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. 

(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, 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 

 3.14    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. 

3.15    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. 
 3.16    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. 

3.17    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. 

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 Person is or will be compensated by such
enterprise. 
 3.19    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. 
 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. 

  
 15 

 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 Investor 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 Investor with all the information that
the Investor has requested for deciding whether to purchase the Purchased Shares and all information that could reasonably be expected to enable the Investor to make such decision. 

3.22    Exempt Offering. Based in part on the representations and warranties of the Investor 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 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 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, 2017, respectively, and for the monthly period ending on the 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 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 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, “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. 

  
 16 

	4.	 REPRESENTATIONS AND WARRANTIES OF INVESTOR. 

The Investor 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, when executed and delivered by the Investor, will constitute a valid and legally binding obligation of the 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, the 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 INVESTOR’S OBLIGATIONS AT THE CLOSING. 

The obligations of the Investor to purchase the Purchased Shares at the Closing is, unless otherwise waived in writing by the Investor, subject
to the fulfillment to the satisfaction of the 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. 

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 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. 

  
 17 

 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 the Investor, and the 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 action 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 the Investor. 

5.6    Transaction Documents. Each of the parties to the Transaction Documents, other than the Investor,
shall have executed and delivered such Transaction Documents to the 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 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. 

5.9    Business Plan and Budget. The Company shall have delivered to the Investor prior to the Closing a detailed
business plan and budget with respect to the Group Companies for the year 2018 and 2019 to the Investor’s satisfaction. 

5.10    No Litigation. No Action shall have been threatened or instituted against any Warrantor or the 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    Board. The Company shall deliver (or cause to be delivered) a certified true copy of the Company’s
updated register of directors of the company reflecting the appointment of the director designated by the Investor (the “Hillhouse Director”) to the Company’s board of directors. 

5.12    Employment Agreement and Confidentiality, Non-Competition and
Proprietary Rights Agreement. Each Key Employee of the Group Companies 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 F and the Company shall have delivered to the Investor copies of the same. 

5.13    SAFE Registration. The Founders, who is a “domestic resident” (as defined in the SAFE rules and
regulations) shall have completed the foreign exchange initial registration with the competent local branch of the SAFE with respect to his direct and/or indirect record and beneficial ownership of any Equity Securities in the Company and each other
Group Company as required under the SAFE rules and regulations, and delivered evidence of such registration satisfactory to the Investor. 

  
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 5.14    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 2.3. 

5.15    Due Diligence. The Investor shall have completed the legal, financial and business due diligence
investigation of the Group Companies to its satisfaction. 
 5.16    Approval by Investment Committee. The
Investor shall have received approvals by its investment committee for entering into the transactions contemplated hereunder. 

5.17    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. 

5.18    Restructuring. The Group Companies shall have completed all aspects of the restructuring as follows to the
satisfaction of the Investor (collectively, the “Restructuring”): 
     (1)    The
Warrantors shall have completed the filing and registration procedures with respect to the Acquisition of Ecommerce Company with competent administration for industry and commerce and bureau of commerce and relevant evidences of such filing and
registration shall have been delivered to the Investor to its satisfactory. 
     (2)    HUANG
Jinfeng (黄锦峰) shall have initiated the dissolution and deregistration procedures of Yat-sen Partners L.P., and shall have provided to the Investor relevant evidences to its satisfactory. 

    (3)    The Investor shall have received the following evidences and documents with respect to the
restructuring of Yatsen Pet Products and Yimeng Trading (the “Restructuring of Yatsen Pet Products and Yimeng Trading”), in substance and form satisfactory to the Investor: (i) an assets and business transfer agreement between
Ecommerce Company, Yatsen Pet Products and Yimeng Trading, and/or other documents proving that all the Proprietary Rights, business contracts and employees of Yatsen Pet Products and Yimeng Trading shall have been transferred to Ecommerce Company at
a price of fair market value approved by the Board of the Company and the Investor; (ii) the shareholders resolutions of Yatsen Pet Products with respect to the dissolution and de-registration of Yatsen
Pet Products; (ii) the resolution by all the partners of Yimeng Trading with respect to the dissolution and de-registration of Yimeng Trading. 

5.19    Dissolution of Yitong L.P. and Yidao Consultant. The Investor shall have received the following documents,
each in substance and form satisfactory to the Investor: (i) the shareholders resolutions of Guangzhou Yidao Consultant Service Co., Ltd.
(广州逸道咨询服务有限责任公司, “Yidao
Consultant”) with respect to the dissolution and de-registration of Yidao Consultant; and (ii) the resolution by all the partners of Guangzhou Yitong Consultant Service L.P. (广州逸同咨询服务合伙企业, the “Yitong L.P.”) with
respect to the dissolution and de-registration of the Yitong L.P.. 

5.20    Resignation of Zhang Zhantu. Ecommerce Company shall have delivered to the Investor, (i) resignation
letters of Zhang Zhantu (张展图) to resign from the Cosmetic Company as a supervisor and from the Yatsen Pet
Products as a manager (collectively, the “Resignation of Zhang Zhantu”) respectively, and (ii) the shareholders resolutions of Cosmetic Company and Yatsen Pet Products respectively to approve the Resignation of Zhang Zhantu,
each in form and substance satisfactory to the Investor. 

  
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 5.21    Withdrawal of Unauthorized Trademark and Pictures. The
Group Companies shall have withdrawn all the trademark, logos, and pictures presented without proper authorization from their website (http://www.perfectdiary.com) and other marketing materials (if any). 

5.22    Transfer of domain name and We-Media Account. The domain names
(including but not limited to “iams-pet.com”, “iams-pet.com.cn” and “iams-pet.com.cn” and other
domain names and We-Media account as listed in Exhibit I hereto) shall have been transferred to and owned by the Ecommerce Company. 

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

The obligation of the Company to issue and sell the Purchased Shares to the Investor at the Closing, unless otherwise waived in writing by the
Company, is subject to the fulfillment to the 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 the 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. The
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 Investor as follows: 

7.1    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 Investor), 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. The Company shall invest such proceeds in the Ecommerce Company, including increasing its registered capital. 

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 Investor. 

  
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 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 Investor, 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 Investor in writing, describing the fact or event in reasonable detail.  
 7.5    Employee
Equity; Vesting. After the Closing, the Company (but not any other Group Company) may grant options to employees, advisors, officers, and directors of, and consultants to, the Company and its subsidiaries, but only pursuant to
Employee Share Option Plan, provided that the total number of shares issued or issuable under any such Employee Share Option Plan shall not exceed 211,570,000 Ordinary Shares (proportionally adjusted to reflect any share dividends, share splits, or
similar transactions). Except as approved by Majority Preferred Holders in accordance with Section 9 of the Shareholders Agreement, shares or share options to be issued under the Employee Share Option Plan shall be subject to a minimum four
(4) years vesting schedule no faster than the following: twenty-five percent (25%) of the options in respect of such employee will vest on the first anniversary of the grant date, thereafter, the remaining seventy-five percent (75%) of the
options in respect of such employee will vest annually in equal installments over the next three (3) years. To the extent practicable under the PRC laws, the Group Companies shall cause to be filed and registered with the competent local branch
of the SAFE of the PRC with respect to the establishment and adoption of the ESOP. 
 Except as otherwise approved by a majority of the
Board (including the affirmative vote of the director appointed by the Investor), the Company shall cause all future officers, directors, and employees of, and consultants to, the Company and its Subsidiaries who purchase, or receive options to
purchase, shares of the Company’s Ordinary Shares, to execute and deliver agreements in forms approved by the Board (including the affirmative vote of the director appointed by the Investor) providing for a right of repurchase in favor of the
Company on vested and unvested shares without cost upon termination of the employment with cause or unilateral termination of the employment by the optionees, a prohibition on the transfer of all shares prior to a Qualified IPO (unless otherwise
permitted under such Employee Share Option Plan) and a lockup or market standoff commitment after the Qualified IPO in respect of vested shares subject to the requirements that the underwriters or sponsors may have at such time. 

  
 21 

 7.6    Use of Investor’s Name or Logo. Without the prior
written consent of Hillhouse, none of the parties shall use, publish, reproduce, or refer to the name of the Investor, 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. 
 7.7    Corporate Opportunity. The Group Company hereby acknowledge that
the Investor and its Affiliates (including investment funds, persons or accounts under the management of the Investor or its Affiliates) engage in hedge fund investment and private equity investment businesses. The Investor and its 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 Investor and its 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 Hillhouse Director. The parties hereto agree, and shall procure that each of the
Group Companies agrees, irrevocably that the Hillhouse Director 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 Investor’s ability to benefit from information
related to an actual or potential Business Opportunity or that would require the Investor or the Hillhouse Director to disclose any such information to any Group Company or offer any Business Opportunity to any Group Company. 

7.8    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 Investor against taxes or duties, in connection with
the Investor’s sale of their respective shares, levied or imposed on the 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 the Investor solely due to the breach of the Warrantors’ obligations under this Section 7.8. 

7.9    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. 

7.10    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. 

  
 22 

 7.11    Restructuring of Yitong. The Warrantor agrees that,
without the prior written approval of the Investor, 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 Investor, 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 Investor. 
 7.12    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 Investor and its counsel’s satisfactory evidence for completion of such registration. 

7.13    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. 

7.14    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. 
 7.15    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. 
 7.16    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.  

  
 23 

 7.17    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. 

7.18    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 Investor, 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. 
 7.19    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. 

7.20    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 Investor’s satisfaction. 

7.21    Full-time Commitment. Each Founder undertakes and covenants to the Investor 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 Investor, 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. 

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

  
 24 

 7.24    De-registration of Yitong L.P. and Yitong Consultant. As
soon as practicable after the Closing but in any event no later than six (6) months after the Closing, Huang Jinfeng (黄锦峰) and Chen Yuwen (陈宇文) shall have completed all the
deregistration procedures of Yitong L.P. and Yitong Consultant respectively and shall provide to the Investor the de-registration completion notices issued by competent PRC administration for industry and
commerce regarding the de-registration of Yitong L.P. and Yitong Consultant respectively. 

7.25    De-registration of Offshore Entities. As soon as practicable but in any event no later than six
(6) months after the Closing, HUANG Jinfeng (黄锦峰) shall have completed the dissolution and deregistration
procedures of Yat-sen Partners L.P. and immediately after the completion of deregistration of Yat-sen Partners L.P., HUANG Jinfeng (黄锦峰) shall initiate the deregistration of Mangrove Bay Investment Management Co. Ltd and in any event no later than
twelve (12) months after the Closing, the deregistration of both Yat-sen Partners L.P. and Mangrove Bay Investment Management Co. Ltd shall have been completed. HUANG Jinfeng (黄锦峰) shall have provided to the Investor relevant evidences regarding the dissolution and de-registration of Mangrove Bay Investment Management Co. Ltd and Yat-sen Partners L.P. respectively to its satisfactory. The Warrantors shall procure that neither Mangrove
Bay Investment Management Co. Ltd nor Yat-sen Partners L.P. take any activities or engage in any business or operation after the Closing except for the dissolution and deregistration. 

7.26    SAIC 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 industry and commerce, and relevant evidences of such registration shall have been
delivered to the Investor to its satisfactory. 
 7.27    Execution of the New Form of OEM Contracts. As soon as
practicable after the Closing, the Group Companies shall renew the form of OEM Contracts in form and substance satisfactory to the Investor (the “New Form of OEM Contracts”), among other matters, which shall provide that the Group
Companies shall own all the intellectual property rights with respect to all the cosmetic products and corresponding manufacturing method, that is material to the operation of the Group Company in the discretion of the Company; the New Form of OEM
Contracts shall be used and executed by the Group Companies with their manufacturers, which shall replace the previous contracts with respect to the cosmetic products produced by any Group Company. 

7.28    Filing of Domestic Non-special Purpose Cosmetic Products. Within
three (3) months following the Closing, the Group Companies shall duly file 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 competent authorities legally and appropriately, including but not limited to the products as listed in Exhibit H hereto. 

7.29    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 Investor a written notice stating the details of the New Business, and the Investor 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. 

  
 25 

 7.30    Executory Period Covenants. 

(a)    Access. Between the date hereof and the Closing, the Warrantors shall permit the Investor, 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 Investor reasonably request, in such a manner so as not to unreasonably interfere with their
normal operations, including but not limited to the Investor shall have received from the Company all documents and other materials requested by the Investor 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 Investor in its sole discretion. 
 (b)    Covenants. Between the
date hereof and the Closing, except as the prior written consent of the Investor 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 Investor
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 Investor to be satisfied. 
 (c)    Information. From the date hereof
until the Closing, (a) the Warrantors shall promptly notify the Investor 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 Investor 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 Investor 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, other than
the transaction contemplated under the Series B 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 Investor. 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 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 Investor. 

  
 26 

 7.31    Right of Participation in the Next Financing. In addition
to and without prejudice to the Right of Participation the Investor is entitled to under the Shareholders Agreement, the Investor shall have the right of first refusal, but not the obligation, to purchase all or any part of the New Securities (as
defined in the Shareholders Agreement) that the Company may issue after the date of this Agreement, for the price and upon the terms and conditions no less favorable than those as set forth in the Hillhouse Special Participation Notice (as defined
in the Shareholders Agreement) delivered by the Company (the “Special Participation Right”) in accordance with Section 3 of the Shareholders Agreement. And as a result of the exercise of such Special Participation Right, the
Investor will own and hold in aggregate up to ten percent (10%) of all of the Equity Securities of the Company (calculated on a fully diluted and as-converted basis) immediately after the issuance of the New
Securities and the Investor’s exercise of the Special Participation Right. 
 7.32    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 Investor, the
Investor, with respect to the Series B-3 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 7.32. 

7.33    Other Issues in the Disclosure Schedule. As soon as practicable after the Closing and at any time upon the
request of the Investor, the relevant Group Companies, and the Founders shall, to the satisfaction of the Investor, resolve the issues in a practically reasonable manner, which are disclosed in the Disclosure Schedule or identified by the Investor
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 the Investor against any reduction in value of the
Company’s or the Group Companies’ assets, any increase in their liabilities, any dilution of the Investor’s interests in the Company or any diminution in the value of the 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. 

  
 27 

 (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 the Investor 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. 
 (c)    Notwithstanding anything
to the contrary contained herein, the aggregate liabilities of the Warrantors pursuant to this Section 8 for the Investor under the Transaction Documents shall not exceed the Purchase Price paid for the Purchased Shares being purchased by the
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 the 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 the 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 Investor for any Indemnifiable Loss suffered by the Investor by transferring the Ordinary Shares in whole or in part held by the relevant Founder Holdco to the 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. 

  
 28 

 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 Investor. 

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. 

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 Investor 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 the Investor to its Affiliates. No Warrantor may assign its rights or delegate its obligations under this Agreement without the written consent of the
Investor. 
 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. 

  
 29 

 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. 
 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 Investor. 
 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 Banyan 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$80,000 (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 the Investor. 

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. 

  
 30 

 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. 

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 Investor 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 Investor or its Affiliates to conduct its 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. 

  
 31 

 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 Investor if the Closing has not been consummated by October 15, 2018, (c) by the Investor, 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 Investor 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. 

10.16    Survival. The provisions of Section 1,
Section 7.6, Section 8, Section 9, Section 10.1, Section 10.14 and Section 10.16 shall
survive the expiration or early termination of this Agreement. 
 [Signature Page Follows] 

  
 32 

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

			
	GROUP COMPANIES:
	
	Mangrove Bay Ecommerce Holding (Cayman)
		
	By:	 	 /s/ Jinfeng Huang

	Name:	 	HUANG Jinfeng (黄锦峰)
	Title:	 	Director
	
	Mangrove Bay Ecommerce (Hong Kong) Limited
		
	By:	 	 /s/ Jinfeng Huang

	Name:	 	HUANG Jinfeng (黄锦峰)
	Title:	 	Director

  
 [Signature Page to the
Series B-3 Preferred Share Purchase Agreement –Mangrove Bay Ecommerce Holding (Cayman)] 

 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/ Jinfeng Huang

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

  
 [Signature Page to the
Series B-3 Preferred Share Purchase Agreement - Mangrove Bay Ecommerce Holding (Cayman)] 

 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
	
	Guangzhou Yimeng Trading Co., Ltd.
	(广州逸萌商贸有限公司) (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 - Mangrove Bay Ecommerce Holding (Cayman)] 

 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 Lv

	LV 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 - Mangrove Bay Ecommerce Holding (Cayman)] 

 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the date 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 - Mangrove Bay Ecommerce Holding (Cayman)] 

 Schedule A-1 

Founders 
  

			
	 Name of Founders
	  	 PRC ID

	 HUANG Jinfeng

(黄锦峰)
	  	***
	 CHEN Yuwen

(陈宇文)
	  	***
	 LV Jianhua

(吕建华)
	  	***

 Schedule A-2 

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 A-3 

Investor 
  

									
	 Name
	  	No. of Series B-3
Preferred Shares	 	  	Total Purchase Price	 
	 HH SPR-XIII Holdings Limited
	  	 	85,351,118	 	  	US$	7,000,000	 
	 Total
	  	 	85,351,118	 	  	US$	7,000,000	 

 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 

Second 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 

Indemnification Agreement 

 Exhibit F 

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

 Exhibit G 

LIST OF KEY EMPLOYEES 

 EXHIBIT H 

LIST OF NON-SPECIAL PURPOSE COSMETIC PRODUCTS TO BE FILED 

 EXHIBIT I 

LIST OF DOMAIN NAME AND WE-MEDIA ACCOUNT

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