So-Young Reports Unaudited Fourth Quarter and Fiscal Year 2023 Financial Results
Fourth Quarter 202 3 Financial Highlights
- Total revenues were
RMB390.6 million (US$55.0 million [1]), compared withRMB325.1 million in the corresponding period of 2022, in line with previous guidance. - Net income attributable to
So-Young International Inc. wasRMB17.5 million (US$2.5 million ), compared with net income attributable toSo-Young International Inc. ofRMB31.3 million in the same period of 2022. - Non-GAAP net income attributable to
So-Young International Inc. [2] wasRMB35 .3 million (US$5 .0 million), compared with non-GAAP net income attributable toSo-Young International Inc. ofRMB38 .8 million in the same period of 2022.
Fourth Quarter 2023 Operational Highlights
- Average mobile MAUs were 2.7 million, compared with 4.0 million in the fourth quarter of 2022.
- Number of medical service providers subscribing to information services on
So-Young's platform was 1,289, compared with 1,489 in the fourth quarter of 2022. - Total number of purchasing users through reservation services was 139.0 thousand and the aggregate value of medical aesthetic treatment transactions facilitated by
So-Young's platform wasRMB470.9 million .
Fiscal Year 2023 Financial Highlights
- Total revenues were
RMB1,498.0 million (US$211.0 million ) in the full year 2023, an increase of 19.1% fromRMB1,257.9 million in the prior year. - Net income attributable to
So-Young International Inc. wasRMB21.3 million (US$3.0 million ) in the full year 2023, compared with a net loss attributable toSo-Young International Inc. ofRMB65.6 million in the prior year. - Non-GAAP net income attributable to
So-Young International Inc. wasRMB57.6 million (US$8.1 million ) in the full year 2023, compared with a non-GAAP net loss attributable toSo-Young International Inc. ofRMB22.2 million in the prior year.
Share Repurchase Program and Special Cash Dividend
In
The Company's proposed repurchases may be effected from time to time in the open market at prevailing market prices, in privately negotiated transactions, in block trades and/or through other legally permissible means, depending on market conditions and in accordance with applicable rules and regulations. The Company's board of directors will review the share repurchase program periodically, and may authorize adjustment of its terms and size. The Company expects to fund the repurchases out of its cash balance.
The board of directors of the Company declared a special cash dividend of
Mr.
Mr.
[1] This press release contains translations of certain Renminbi (RMB) amounts into |
[2] Non-GAAP net income attributable to |
Fourth Quarter 202 3 Financial Results
Revenues
Total revenues were
-
Information services and other revenues were
RMB268.1 million (US$37.8 million ), an increase of 15.8% fromRMB231.5 million in the same period of 2022. The increase was primarily due to an increase in revenues generated bySo-Young Prime . -
Reservation services revenues were
RMB20.6 million (US$2.9 million ), a decrease of 20.7% fromRMB26.0 million in the same period of 2022. The decrease was primarily due to the operating strategy which gave higher subsidies to end users. -
Sales of medical products and maintenance services
[3]
revenues were
RMB101.9 million (US$14 .4 million), an increase of 50.6% fromRMB67.7 million in the same period of 2022, primarily due to an increase in sales of cosmetic injectables.
Cost of Revenues [4]
Cost of revenues was
-
Cost of services and others were
RMB94.1 million (US$13.3 million ), an increase of 73.6% fromRMB54.2 million in the fourth quarter of 2022. The increase was primarily due to an increase in costs associated withSo-Young Prime . -
Cost of medical products sold and maintenance services were
RMB43.6 million (US$6.1 million ), an increase of 28.1% fromRMB34.0 million in the fourth quarter of 2022. The increase was primarily due to an increase in costs associated with the sales of cosmetic injectables.
[3] In the year of 2023, in light of the better monitoring business development of upstream supply chain, the Company grouped the revenue generated from sales of cosmetic injectables and sales of equipment and maintenance services into one line item, which is renamed as sales of medical products and maintenance services. |
The sale of cosmetic injectables was previously reported in line item of information services and others. The information services and others for prior periods and the year of 2022 have also been retrospectively updated. The amount reclassified from information services and others to sales of medical products and maintenance services are |
[4] In the year of 2023, the previous line item cost of revenues was separated into two line items, which are cost of medical products sold and maintenance services and cost of services and others. Cost of medical products sold and maintenance services primarily consists of expenditures relating to medical products and maintenance services, and the remaining cost of revenues is reclassified into cost of services and others. The cost of medical products sold and maintenance services and cost of services and others for prior periods and the year of 2022 have also been retrospectively reclassified. |
Operating Expenses
Total operating expenses were
-
Sales and marketing expenses were
RMB126.2 million (US$17.8 million ), an increase of 28.3% fromRMB98.4 million in the fourth quarter of 2022. The increase was primarily due to an increase in payroll costs and the expenses associated with branding and user acquisition activities. Sales and marketing expenses included share-based compensation expenses ofRMB2.8 million (US$0.4 million ), compared withRMB0.4 million in the corresponding period of 2022. -
General and administrative expenses were
RMB86.7 million (US$12.2 million ), an increase of 18.4% fromRMB73.2 million in the fourth quarter of 2022. The increase was due to an increase in payroll costs associated with the expansion of administrative employees to support our business upgrade and new strategic businesses. General and administrative expenses included share-based compensation expenses ofRMB13.2 million (US$1.9 million ), compared withRMB4.3 million in the corresponding period of 2022. -
Research and development expenses were
RMB45.0 million (US$6.3 million ), an increase of 9.6% fromRMB41.1 million in the fourth quarter of 2022. The increase was primarily attributable to an increase in payroll costs. Research and development expenses included share-based compensation expenses ofRMB1.6 million (US$0.2 million ), compared withRMB1.8 million in the corresponding period of 2022.
Income Tax Benefits
Income tax benefits were
Net Income Attributable to
Net income attributable to
Non-GAAP Net Income Attributable to
Non-GAAP net income attributable to
Basic and Diluted Earnings per ADS
Basic and diluted earnings per ADS attributable to ordinary shareholders were
Fiscal Year 20 23 Financial Results
Revenues
Total revenues were
-
Information services and other revenues were
RMB1,063.2 million (US$149.7 million ), an increase of 22.2% fromRMB870.1 million in fiscal year 2022. The increase was primarily due to an increase in revenues generated bySo-Young Prime . -
Reservation services revenues were
RMB101.3 million (US$14.3 million ), a decrease of 21.3% fromRMB128.7 million in fiscal year 2022. The decrease was primarily due to our operating strategy to provide higher subsidies to end users. -
Sales of medical products and maintenance services revenues were
RMB333.5 million (US$47.0 million ), an increase of 28.7% fromRMB259.1 million in fiscal year 2022, primarily due to an increase in sales of cosmetic injectables.
Cost of Revenues
Cost of revenues were
-
Cost of services and others were
RMB385.6 million (US$54.3 million ), an increase of 52.1% fromRMB253.5 million in fiscal year 2022. The increase was primarily due to an increase in costs associated withSo-Young Prime . -
Cost of medical products sold and maintenance services were
RMB158.8 million (US$22.4 million ), an increase of 13.6% fromRMB139.8 million in fiscal year 2022. The increase was primarily due to an increase in costs associated with the sales of cosmetic injectables.
Operating Expenses
Total operating expenses were
-
Sales and marketing expenses were
RMB520.5 million (US$73.3 million ), an increase of 10.2% fromRMB472.1 million in fiscal year 2022. The increase was primarily due to an increase in expenses associated with branding and user acquisition activities. Sales and marketing expenses for fiscal year 2023 included share-based compensation expenses ofRMB5.7 million (US$0.8 million ), compared toRMB6.8 million in fiscal year 2022. -
General and administrative expenses were
RMB290.8 million (US$41.0 million ), an increase of 11.7% fromRMB260.2 million in fiscal year 2022. The increase was due to an increase in payroll costs associated with the expansion of administrative employees to support our business upgrade and new strategic businesses. General and administrative expenses for 2023 included share-based compensation expenses ofRMB23.6 million (US$3.3 million ), compared toRMB19.0 million in fiscal year 2022. -
Research and development expenses were
RMB203.5 million (US$28.7 million ), a decrease of 13.4% fromRMB235.1 million in fiscal year 2022. The decrease was primarily attributable to improvements in staff efficiency. Research and development expenses for 2023 included share-based compensation expenses ofRMB5.3 million (US$0.7 million ), compared toRMB9.3 million in fiscal year 2022.
Income Tax Benefits
Income tax benefits were
Net Income/(Loss) Attributable to
Net income attributable to
Non-GAAP Net Income/(Loss) Attributable to
Non-GAAP net income attributable to
Basic and Diluted Earnings/(Loss) per ADS
Basic and diluted earnings per ADS attributable to ordinary shareholders were
Cash and Cash Equivalents, Restricted Cash and Term Deposits, Term Deposits and Short-Term Investments
As of
Business Outlook
For the first quarter of 2024,
Non-GAAP Financial Measures
To supplement the financial measures prepared in accordance with generally accepted accounting principles in
Conference Call Information
International: |
+1-412-902-4272 |
Mainland China: |
4001-201203 |
US: |
+1-888-346-8982 |
|
+852-301-84992 |
Passcode: |
|
A telephone replay will be available two hours after the conclusion of the conference call through 23:59 U.
International: |
+1-412-317-0088 |
US: |
+1-877-344-7529 |
Passcode: |
5107574 |
Additionally, a live and archived webcast of this conference call will be available at http://ir.soyoung.com.
About
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the
For more information, please contact:
Investor Relations
Ms. Vivian Xu
Phone: +86-10-8790-2012
E-mail: ir@soyoung.com
Christensen
In
Ms. Julie Zhu
Phone: +86-10-5900-1548
E-mail: julie.zhu@christensencomms.com
In US
Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: linda.bergkamp@christensencomms.com
|
|||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||
(Amounts in thousands, except for share and per share data) |
|||||
|
|||||
|
As of |
||||
|
|
|
|
|
|
2022 |
2023 |
2023 |
|||
|
RMB |
|
RMB |
|
US$ |
Assets |
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and cash equivalents |
694,420 |
|
426,119 |
|
60,018 |
Restricted cash and term deposits |
14,908 |
|
14,695 |
|
2,070 |
Trade receivables |
36,006 |
|
57,219 |
|
8,059 |
Inventories, net |
120,480 |
|
118,924 |
|
16,750 |
Receivables from online payment platforms |
14,787 |
|
23,158 |
|
3,262 |
Amounts due from related parties |
33,382 |
|
9,212 |
|
1,297 |
Term deposits and short-term investments |
875,955 |
|
900,823 |
|
126,878 |
Prepayment and other current assets |
126,889 |
|
171,774 |
|
24,194 |
Total current assets |
1,916,827 |
|
1,721,924 |
|
242,528 |
Non-current assets: |
|
|
|
|
|
Long-term investments |
227,959 |
|
261,016 |
|
36,763 |
Intangible assets |
169,280 |
|
145,253 |
|
20,458 |
|
540,693 |
|
540,693 |
|
76,155 |
Property and equipment, net |
116,184 |
|
116,782 |
|
16,448 |
Deferred tax assets |
64,739 |
|
78,034 |
|
10,991 |
Operating lease right-of-use assets |
62,898 |
|
118,408 |
|
16,677 |
Other non-current assets |
99,293 |
|
232,455 |
|
32,741 |
Total non-current assets |
1,281,046 |
|
1,492,641 |
|
210,233 |
Total assets |
3,197,873 |
|
3,214,565 |
|
452,761 |
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
Short-term borrowings |
— |
|
29,825 |
|
4,201 |
Taxes payable |
74,580 |
|
56,894 |
|
8,013 |
Contract liabilities |
110,159 |
|
103,374 |
|
14,560 |
Salary and welfare payables |
72,532 |
|
86,290 |
|
12,154 |
Amounts due to related parties |
5,895 |
|
388 |
|
55 |
Accrued expenses and other current |
224,589 |
|
233,913 |
|
32,945 |
Operating lease liabilities-current |
50,285 |
|
29,739 |
|
4,189 |
Total current liabilities |
538,040 |
|
540,423 |
|
76,117 |
Non-current liabilities: |
|
|
|
|
|
Operating lease liabilities-non current |
20,972 |
|
86,210 |
|
12,142 |
Deferred tax liabilities |
30,993 |
|
25,082 |
|
3,533 |
Other non-current liabilities |
— |
|
1,536 |
|
216 |
Total non-current liabilities |
51,965 |
|
112,828 |
|
15,891 |
Total liabilities |
590,005 |
|
653,251 |
|
92,008 |
|
|
|||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Continued) |
|
|||||
(Amounts in thousands, except for share and per share data) |
|
|||||
|
|
|||||
Shareholders ' equity: |
|
|
|
|
|
|
|
(232,835) |
|
(358,453) |
|
(50,487) |
|
Class A Ordinary shares ( |
236 |
|
238 |
|
34 |
|
Class B Ordinary shares (US$ 0.0005 par value; 20,000,000 |
37 |
|
37 |
|
5 |
|
Additional paid-in capital |
3,043,971 |
|
3,080,433 |
|
433,870 |
|
Statutory reserves |
29,027 |
|
33,855 |
|
4,768 |
|
Accumulated deficit |
(346,618) |
|
(330,166) |
|
(46,503) |
|
Accumulated other comprehensive income |
4,107 |
|
18,185 |
|
2,561 |
|
|
2,497,925 |
|
2,444,129 |
|
344,248 |
|
Non-controlling interests |
109,943 |
|
117,185 |
|
16,505 |
|
Total shareholders' equity |
2,607,868 |
|
2,561,314 |
|
360,753 |
|
Total liabilities and shareholders ' equity |
3,197,873 |
|
3,214,565 |
|
452,761 |
|
|
||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||
(Amounts in thousands, except for share and per share data) |
||||||||||||
|
||||||||||||
|
For the Three Months Ended |
|
For the Fiscal Year Ended |
|||||||||
|
December |
|
D
e
cember |
|
D
e
cember |
|
December |
|
D
e
cember |
|
D
e
cember |
|
|
RMB |
|
RMB |
|
US$ |
|
RMB |
|
RMB |
|
US$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues : |
|
|
|
|
|
|
|
|
|
|
|
|
Information services and others |
231,517 |
|
268,078 |
|
37,758 |
|
870,140 |
|
1,063,178 |
|
149,745 |
|
Reservation services |
25,966 |
|
20,589 |
|
2,900 |
|
128,668 |
|
101,313 |
|
14,270 |
|
Sales of medical products and maintenance services |
67,663 |
|
101,899 |
|
14,352 |
|
259,066 |
|
333,538 |
|
46,978 |
|
Total revenues |
325,146 |
|
390,566 |
|
55,010 |
|
1,257,874 |
|
1,498,029 |
|
210,993 |
|
Cost of revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of services and others |
(54,203) |
|
(94,079) |
|
(13,251) |
|
(253,531) |
|
(385,582) |
|
(54,308) |
|
Cost of medical products sold and maintenance services |
(33,999) |
|
(43,555) |
|
(6,135) |
|
(139,761) |
|
(158,754) |
|
(22,360) |
|
Total cost of revenues |
(88,202) |
|
(137,634) |
|
(19,386) |
|
(393,292) |
|
(544,336) |
|
(76,668) |
|
Gross profit |
236,944 |
|
252,932 |
|
35,624 |
|
864,582 |
|
953,693 |
|
134,325 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing expenses |
(98,358) |
|
(126,175) |
|
(17,771) |
|
(472,092) |
|
(520,451) |
|
(73,304) |
|
General and administrative expenses |
(73,175) |
|
(86,668) |
|
(12,207) |
|
(260,208) |
|
(290,765) |
|
(40,953) |
|
Research and development expenses |
(41,066) |
|
(44,993) |
|
(6,337) |
|
(235,087) |
|
(203,524) |
|
(28,666) |
|
Total operating expenses |
(212,599) |
|
(257,836) |
|
(36,315) |
|
(967,387) |
|
(1,014,740) |
|
(142,923) |
|
Income/(loss) from operations |
24,345 |
|
(4,904) |
|
(691) |
|
(102,805) |
|
(61,047) |
|
(8,598) |
|
Other income/(expenses): |
|
|
|
|
|
|
|
|
|
|
|
|
Investment income , net |
267 |
|
1,135 |
|
160 |
|
4,264 |
|
12,004 |
|
1,691 |
|
Interest income |
10,276 |
|
10,820 |
|
1,524 |
|
28,883 |
|
48,843 |
|
6,879 |
|
Exchange gains/(loss es) |
23 |
|
389 |
|
55 |
|
(492) |
|
(662) |
|
(93) |
|
Impairment of long-term investment |
- |
|
(444) |
|
(63) |
|
(7,945) |
|
(444) |
|
(63) |
|
Share of losses of equity method investee |
(6,215) |
|
(2,031) |
|
(286) |
|
(17,223) |
|
(12,723) |
|
(1,792) |
|
Others, net |
646 |
|
3,424 |
|
482 |
|
8,246 |
|
21,898 |
|
3,084 |
|
I ncome /(loss) before tax |
29,342 |
|
8,389 |
|
1,181 |
|
(87,072) |
|
7,869 |
|
1,108 |
|
Income tax benefits |
2,423 |
|
10,835 |
|
1,526 |
|
20,965 |
|
18,075 |
|
2,546 |
|
Net income /(loss) |
31,765 |
|
19,224 |
|
2,707 |
|
(66,107) |
|
25,944 |
|
3,654 |
|
Net (income) /loss attributable to noncontrolling interests |
(492) |
|
(1,723) |
|
(243) |
|
553 |
|
(4,664) |
|
(657) |
|
Net income
/(loss)
attributable to |
31,273 |
|
17,501 |
|
2,464 |
|
(65,554) |
|
21,280 |
|
2,997 |
|
|
||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Continued) |
||||||||||||
(Amounts in thousands, except for share and per share data) |
||||||||||||
|
||||||||||||
|
For the Three Months Ended |
|
For the Fiscal Year Ended |
|||||||||
|
December |
|
D
e
cember |
|
D
e
cember |
|
December |
|
D
e
cember |
|
D
e
cember |
|
|
RMB |
|
RMB |
|
US$ |
|
RMB |
|
RMB |
|
US$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings /(loss) per ordinary share |
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings /(loss) per ordinary share attributable to ordinary shareholder - basic |
0.38 |
|
0.23 |
|
0.03 |
|
(0.79) |
|
0.27 |
|
0.04 |
|
Net earnings
/(loss)
per ordinary share attributable to ordinary shareholder - |
0.38 |
|
0.23 |
|
0.03 |
|
(0.79) |
|
0.27 |
|
0.04 |
|
Net earnings
/(loss)
per ADS attributable to ordinary shareholders - basic (13 |
0.29 |
|
0.18 |
|
0.03 |
|
(0.61) |
|
0.21 |
|
0.03 |
|
Net earnings
/(loss)
per ADS attributable to ordinary shareholders - diluted (13 |
0.29 |
|
0.18 |
|
0.03 |
|
(0.61) |
|
0.21 |
|
0.03 |
|
Weighted average number of ordinary shares used in computing earnings/(loss) |
82,925,288 |
|
76,584,151 |
|
76,584,151 |
|
82,665,269 |
|
77,646,899 |
|
77,646,899 |
|
Weighted average number of ordinary shares used in computing earnings/(loss) |
83,083,826 |
|
77,011,890 |
|
77,011,890 |
|
82,665,269 |
|
78,054,950 |
|
78,054,950 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based compensation expenses included in: |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues |
(979) |
|
(165) |
|
(23) |
|
(8,282) |
|
(1,800) |
|
(254) |
|
Sales and marketing expenses |
(439) |
|
(2,830) |
|
(399) |
|
(6,781) |
|
(5,680) |
|
(800) |
|
General and administrative expenses |
(4,337) |
|
(13,190) |
|
(1,858) |
|
(19,021) |
|
(23,590) |
|
(3,323) |
|
Research and development expenses |
(1,754) |
|
(1,615) |
|
(227) |
|
(9,252) |
|
(5,251) |
|
(740) |
|
* Both Class A and Class B ordinary shares are included in the calculation of the weighted average number of ordinary shares outstanding, basic and diluted. |
|
||||||||||||
Reconciliation of GAAP and Non-GAAP Results |
||||||||||||
(Amounts in thousands, except for share and per share data) |
||||||||||||
|
||||||||||||
|
For the Three Months Ended |
|
For the Fiscal Year Ended |
|||||||||
|
December |
|
D
e
cember |
|
D
e
cember |
|
December |
|
D
e
cember |
|
D
e
cember |
|
|
RMB |
|
RMB |
|
US$ |
|
RMB |
|
RMB |
|
US$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP income /(loss) from operations |
24,345 |
|
(4,904) |
|
(691) |
|
(102,805) |
|
(61,047) |
|
(8,598) |
|
Add back: Share-based compensation expenses |
7,509 |
|
17,800 |
|
2,507 |
|
43,336 |
|
36,321 |
|
5,117 |
|
Non-GAAP income/(loss) from operations |
31,854 |
|
12,896 |
|
1,816 |
|
(59,469) |
|
(24,726) |
|
(3,481) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
net income
/(loss)
attributable to |
31,273 |
|
17,501 |
|
2,464 |
|
(65,554) |
|
21,280 |
|
2,997 |
|
Add back: Share-based compensation expenses |
7,509 |
|
17,800 |
|
2,507 |
|
43,336 |
|
36,321 |
|
5,117 |
|
Non-GAAP
net income/(loss) attributable to |
38,782 |
|
35,301 |
|
4,971 |
|
(22,218) |
|
57,601 |
|
8,114 |
|
View original content:https://www.prnewswire.com/news-releases/so-young-reports-unaudited-fourth-quarter-and-fiscal-year-2023-financial-results-302094341.html
SOURCE