So-Young Reports Unaudited First Quarter 2024 Financial Results
First Quarter 202 4 Financial Highlights
- Total revenues were
RMB318.3 million (US$44.1 million [1]), compared withRMB310.1 million in the corresponding period of 2023, exceeding the high end of guidance. - Net loss attributable to
So-Young International Inc. wasRMB21.2 million (US$2.9 million ), compared with net loss attributable toSo-Young International Inc. ofRMB11.9 million in the same period of 2023. - Non-GAAP net income attributable to
So-Young International Inc. [2] wasRMB4 .1 million (US$0 .6 million), compared with non-GAAP net loss attributable toSo-Young International Inc. ofRMB2 .8 million in the same period of 2023.
First Quarter 2024 Operational Highlights
- Average mobile MAUs were 2.0 million, compared with 3.4 million in the first quarter of 2023.
- Number of medical service providers subscribing to information services on
So-Young's platform was 1,160, compared with 1,419 in the first quarter of 2023. - Total number of purchasing users through reservation services was 132.8 thousand and the aggregate value of medical aesthetic treatment transactions facilitated by
So-Young's platform wasRMB367.1 million .
Mr. Xing Jin, Co-Founder and Chief Executive Officer of
Mr.
[1] This press release contains translations of certain Renminbi (RMB) amounts into
[2] Non-GAAP net income/(loss) attributable to |
First Quarter 2024 Financial Results
Revenues
Total revenues were
-
Information services and other revenues were
RMB208.7 million (US$28.9 million ), a decrease of 0.7% fromRMB210.3 million in the same period of 2023. The decrease was primarily due to a decrease in the number of medical service providers subscribing to information services onSo-Young's platform. -
Reservation services revenues were
RMB23.1 million (US$3.2 million ), a decrease of 22.3% fromRMB29.7 million in the same period of 2023. The decrease was primarily due to the policy change for commission rates and subsidies. -
Sales of medical products and maintenance services
[3]
were
RMB86.5 million (US$12 .0 million), an increase of 23.3% fromRMB70 .1 million in the same period of 2023, primarily due to an increase in sales of cosmetic products and medical equipment.
Cost of Revenues [4]
Cost of revenues was
-
Cost of services and others were
RMB74.2 million (US$10.3 million ), a decrease of 8.9% fromRMB81.5 million in the first quarter of 2023. The decrease was primarily due to a decrease in payroll cost. -
Cost of medical products sold and maintenance services were
RMB43.1 million (US$6.0 million ), an increase of 33.7% fromRMB32.2 million in the first quarter of 2023. The increase was primarily due to an increase in costs associated with the sales of cosmetic products and medical equipment.
[3] Since the second quarter 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 the first quarter of 2023 have also been retrospectively updated. The amount reclassified from information services and others to sales of medical products and maintenance services are [4] Since the second quarter 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 the first quarter of 2023 have also been retrospectively reclassified. |
Operating Expenses
Total operating expenses were
-
Sales and marketing expenses were
RMB113.3 million (US$15.7 million ), an increase of 0.7% fromRMB112.5 million in the first quarter of 2023. The increase was primarily due to an increase in payroll costs associated with the expansion of marketing employees. Sales and marketing expenses included share-based compensation expenses ofRMB0.1 million (US$0.0 million ), compared withRMB1.5 million in the corresponding period of 2023. -
General and administrative expenses were
RMB85.0 million (US$11.8 million ), an increase of 38.1% fromRMB61.5 million in the first quarter of 2023. 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 ofRMB24.5 million (US$3.4 million ), compared withRMB6.0 million in the corresponding period of 2023. -
Research and development expenses were
RMB39.6 million (US$5.5 million ), a decrease of 29.0% fromRMB55.8 million in the first quarter of 2023. The decrease was primarily attributable to improvements in staff efficiency. Research and development expenses included share-based compensation expenses ofRMB0.8 million (US$0.1 million ), compared withRMB0.9 million in the corresponding period of 2023.
Income Tax Benefits
Income tax benefits were
Net Loss Attributable to
Net loss attributable to
Non-GAAP Net Income/(Loss) Attributable to
Non-GAAP net income attributable to
Basic and Diluted Loss per ADS
Basic and diluted loss per ADS attributable to ordinary shareholders were
Cash and Cash Equivalents, Restricted Cash and Term Deposits, Term Deposits and Short-Term Investments
As of
Business Outlook
For the second quarter of 2024,
Non-GAAP Financial Measures
To supplement the financial measures prepared in accordance with generally accepted accounting principles in
Conference Call Information
International: |
+1-412-902-4272 |
Mainland |
4001-201203 |
US: |
+1-888-346-8982 |
|
+852-301-84992 |
Passcode: |
|
A telephone replay will be available two hours after the conclusion of the conference call through 23:59
International: |
+1-412-317-0088 |
US: |
+1-877-344-7529 |
Passcode: |
5402361 |
Additionally, a live and archived webcast of this conference call will be available at http://ir.soyoung.com.
About
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the
For more information, please contact:
Investor Relations
Ms. Mona Qiao
Phone: +86-10-8790-2012
E-mail: ir@soyoung.com
Christensen
In
Mr. Julie Zhu
Phone: +86-10-5900-1548
E-mail: julie.zhu@christensencomms.com
In US
Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: linda.bergkamp@christensencomms.com
|
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UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
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(Amounts in thousands, except for share and per share data) |
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|
As of |
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|
|
|
|
|
|
2023 |
2024 |
2024 |
|||
|
RMB |
|
RMB |
|
US$ |
Assets |
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and cash equivalents |
426,119 |
|
448,036 |
|
62,052 |
Restricted cash and term deposits |
14,695 |
|
22,176 |
|
3,071 |
Trade receivables |
57,219 |
|
57,812 |
|
8,007 |
Inventories |
118,924 |
|
126,533 |
|
17,525 |
Receivables from online payment platforms |
23,158 |
|
31,386 |
|
4,347 |
Amounts due from related parties |
9,212 |
|
10,185 |
|
1,411 |
Term deposits and short-term investments |
900,823 |
|
874,890 |
|
121,171 |
Prepayment and other current assets |
171,774 |
|
177,620 |
|
24,600 |
Total current assets |
1,721,924 |
|
1,748,638 |
|
242,184 |
Non-current assets: |
|
|
|
|
|
Long-term investments |
261,016 |
|
256,020 |
|
35,458 |
Intangible assets |
145,253 |
|
139,142 |
|
19,271 |
|
540,693 |
|
540,693 |
|
74,885 |
Property and equipment, net |
116,782 |
|
113,159 |
|
15,672 |
Deferred tax assets |
78,034 |
|
79,621 |
|
11,027 |
Operating lease right-of-use assets |
118,408 |
|
122,035 |
|
16,902 |
Other non-current assets |
232,455 |
|
189,442 |
|
26,237 |
Total non-current assets |
1,492,641 |
|
1,440,112 |
|
199,452 |
Total assets |
3,214,565 |
|
3,188,750 |
|
441,636 |
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
Dividend payable |
— |
|
43,573 |
|
6,035 |
Short-term borrowings |
29,825 |
|
29,931 |
|
4,145 |
Taxes payable |
56,894 |
|
56,128 |
|
7,774 |
Contract liabilities |
103,374 |
|
97,798 |
|
13,545 |
Salary and welfare payables |
86,290 |
|
52,662 |
|
7,294 |
Amounts due to related parties |
388 |
|
164 |
|
23 |
Accrued expenses and other current |
233,913 |
|
237,337 |
|
32,868 |
Operating lease liabilities-current |
29,739 |
|
26,261 |
|
3,637 |
Total current liabilities |
540,423 |
|
543,854 |
|
75,321 |
Non-current liabilities: |
|
|
|
|
|
Operating lease liabilities-non current |
86,210 |
|
95,560 |
|
13,235 |
Deferred tax liabilities |
25,082 |
|
23,356 |
|
3,235 |
Other non-current liabilities |
1,536 |
|
1,855 |
|
257 |
Total non-current liabilities |
112,828 |
|
120,771 |
|
16,727 |
Total liabilities |
653,251 |
|
664,625 |
|
92,048 |
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Continued) (Amounts in thousands, except for share and per share data)
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Shareholders ' equity: |
|
|
|
|
|
|
|
(358,453) |
|
(359,089) |
|
(49,733) |
|
Class A ordinary shares ( |
238 |
|
250 |
|
35 |
|
Class B ordinary shares ( |
37 |
|
37 |
|
5 |
|
Additional paid-in capital |
3,080,433 |
|
3,062,378 |
|
424,134 |
|
Statutory reserves |
33,855 |
|
33,855 |
|
4,689 |
|
Accumulated deficit |
(330,166) |
|
(351,406) |
|
(48,669) |
|
Accumulated other comprehensive income |
18,185 |
|
19,861 |
|
2,751 |
|
|
2,444,129 |
|
2,405,886 |
|
333,212 |
|
Non-controlling interests |
117,185 |
|
118,239 |
|
16,376 |
|
Total shareholders' equity |
2,561,314 |
|
2,524,125 |
|
349,588 |
|
Total liabilities and shareholders ' equity |
3,214,565 |
|
3,188,750 |
|
441,636 |
|
|
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UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|
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(Amounts in thousands, except for share and per share data) |
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For the Three Months Ended |
|
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|
202 3 |
|
2023 |
|
202 4 |
|
202 4 |
|
|
RMB |
|
RMB |
|
RMB |
|
US$ |
|
|
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
Information services and others |
210,284 |
|
268,078 |
|
208,748 |
|
28,911 |
|
Reservation services |
29,681 |
|
20,589 |
|
23,064 |
|
3,194 |
|
Sales of medical products and maintenance services |
70,138 |
|
101,899 |
|
86,470 |
|
11,976 |
|
Total revenues |
310,103 |
|
390,566 |
|
318,282 |
|
44,081 |
|
Cost of revenues: |
|
|
|
|
|
|
|
|
Cost of services and others |
(81,500) |
|
(94,079) |
|
(74,222) |
|
(10,280) |
|
Cost of medical products sold and maintenance services |
(32,221) |
|
(43,555) |
|
(43,093) |
|
(5,968) |
|
Total cost of revenues |
(113,721) |
|
(137,634) |
|
(117,315) |
|
(16,248) |
|
Gross profit |
196,382 |
|
252,932 |
|
200,967 |
|
27,833 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
Sales and marketing expenses |
(112,511) |
|
(126,175) |
|
(113,256) |
|
(15,686) |
|
General and administrative expenses |
(61,514) |
|
(86,668) |
|
(84,953) |
|
(11,766) |
|
Research and development expenses |
(55,793) |
|
(44,993) |
|
(39,591) |
|
(5,483) |
|
Total operating expenses |
(229,818) |
|
(257,836) |
|
(237,800) |
|
(32,935) |
|
Loss from operations |
(33,436) |
|
(4,904) |
|
(36,833) |
|
(5,102) |
|
Other income/(expenses): |
|
|
|
|
|
|
|
|
Investment income, net |
6,852 |
|
1,135 |
|
2,099 |
|
291 |
|
Interest income, net |
11,927 |
|
10,820 |
|
12,313 |
|
1,705 |
|
Exchange gains |
425 |
|
389 |
|
394 |
|
55 |
|
Impairment of long-term investment |
— |
|
(444) |
|
— |
|
— |
|
Share of losses of equity method investee |
(3,171) |
|
(2,031) |
|
(3,996) |
|
(553) |
|
Others, net |
2,025 |
|
3,424 |
|
3,280 |
|
454 |
|
(Loss)/income before tax |
(15,378) |
|
8,389 |
|
(22,743) |
|
(3,150) |
|
Income tax benefits |
4,264 |
|
10,835 |
|
2,557 |
|
354 |
|
Net (loss)/income |
(11,114) |
|
19,224 |
|
(20,186) |
|
(2,796) |
|
Net income attributable to noncontrolling interests |
(834) |
|
(1,723) |
|
(1,054) |
|
(146) |
|
Net (loss)/income attributable to |
(11,948) |
|
17,501 |
|
(21,240) |
|
(2,942) |
|
|
|
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UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Continued) |
|
|||||||
(Amounts in thousands, except for share and per share data) |
|
|||||||
|
|
|||||||
|
For the Three Months Ended |
|
||||||
|
202 3 |
|
2023 |
|
202 4 |
|
202 4 |
|
|
RMB |
|
RMB |
|
RMB |
|
US$ |
|
|
|
|
|
|
|
|
|
|
Net (loss)/earnings per ordinary share |
|
|
|
|
|
|
|
|
Net (loss)/earnings per ordinary share attributable to ordinary shareholder - basic |
(0.15) |
|
0.23 |
|
(0.27) |
|
(0.04) |
|
Net (loss)/earnings per ordinary share attributable to ordinary shareholder - diluted |
(0.15) |
|
0.23 |
|
(0.27) |
|
(0.04) |
|
Net (loss)/earnings per ADS attributable to ordinary shareholders - basic (13 ADS represents |
(0.12) |
|
0.18 |
|
(0.21) |
|
(0.03) |
|
Net (loss)/earnings per ADS attributable to ordinary shareholders - diluted (
13 ADS |
(0.12) |
|
0.18 |
|
(0.21) |
|
(0.03) |
|
Weighted average number of ordinary shares used in computing earnings/(loss) per share, |
79,850,312 |
|
76,584,151 |
|
79,551,454 |
|
79,551,454 |
|
Weighted average number of ordinary shares used in computing earnings/(loss) per share, diluted* |
79,850,312 |
|
77,011,890 |
|
79,551,454 |
|
79,551,454 |
|
|
|
|
|
|
|
|
|
|
Share-based compensation expenses included in: |
|
|
|
|
|
|
|
|
Cost of revenues |
(805) |
|
(165) |
|
55 |
|
8 |
|
Sales and marketing expenses |
(1,494) |
|
(2,830) |
|
(53) |
|
(7) |
|
General and administrative expenses |
(6,018) |
|
(13,190) |
|
(24,453) |
|
(3,387) |
|
Research and development expenses |
(877) |
|
(1,615) |
|
(843) |
|
(117) |
|
|
|
|
|
|
|
|
|
|
* 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 |
|
||||||
|
202 3 |
|
2023 |
|
202 4 |
|
202 4 |
|
|
RMB |
|
RMB |
|
RMB |
|
US$ |
|
|
|
|
|
|
|
|
|
|
GAAP loss from operations |
(33,436) |
|
(4,904) |
|
(36,833) |
|
(5,102) |
|
Add back: Share-based compensation expenses |
9,194 |
|
17,800 |
|
25,294 |
|
3,503 |
|
Non-GAAP (loss)/income from operations |
(24,242) |
|
12,896 |
|
(11,539) |
|
(1,599) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net (loss)/income attributable to |
(11,948) |
|
17,501 |
|
(21,240) |
|
(2,942) |
|
Add back: Share-based compensation expenses |
9,194 |
|
17,800 |
|
25,294 |
|
3,503 |
|
Non-GAAP net (loss)/income attributable to |
(2,754) |
|
35,301 |
|
4,054 |
|
561 |
|
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