Guangzhou-based Yatsen Holding Ltd., the owner of budget cosmetics and skincare brand Perfect Diary, posted a loss in the fourth quarter of 2020, despite a revenue jump.

In the three months through December, Yatsen reported a net loss of 1.53 billion yuan ($234.7 million), compared with a net profit of 46.2 million yuan in the same period of 2019, according to its latest earnings report.

The U-turn came as Yatsen increased its revenue by 71.7% year-on-year to 1.96 billion yuan, which the company said was largely the result of a solid expansion in customer base.

Yatsen said that it directly sold its products to 14.4 million customers in the fourth quarter, representing a year-on-year increase of 30.9%.

According to the financial report, Yatsen grew its marketing expenses to 1.38 billion yuan, compared with 446.3 million yuan in the fourth quarter of 2019. Meanwhile, spending on R&D nearly doubled to 25.6 million yuan from a year ago.

Last week, Yatsen, which went public in the U.S. last November, signed an agreement to acquire 35-year-old British skincare brand Eve Lom for an undisclosed sum. The deal came just six months after its acquisition of the skincare brand Galenic from French pharmaceutical and dermo-cosmetic group Pierre Fabre.

“With our acquisition of several distinct skincare brands, we are on track to offer our customers a full suite of products,” said Yatsen chairman and CEO Huang Jinfeng.

Contact reporter Ding Yi (yiding@caixin.com)

Related: Owner of Budget Makeup Brand Perfect Diary to Pretty Up Portfolio With Premium U.K. Skincare Line