So-Young Reports Unaudited Second Quarter 2024 Financial Results
Second Quarter 202 4 Financial Highlights
- Total revenues were
RMB407.4 million (US$56.1 million [1]), compared withRMB412.1 million in the corresponding period of 2023, exceeding the high end of guidance. - Net income attributable to
So-Young International Inc. wasRMB18.9 million (US$2.6 million ), compared with net loss attributable toSo-Young International Inc. ofRMB2.6 million in the same period of 2023. - Non-GAAP net income attributable to
So-Young International Inc. [2] wasRMB22.2 million (US$3.1 million ), compared with non-GAAP net income attributable toSo-Young International Inc. ofRMB15.5 million in the same period of 2023.
Second Quarter 2024 Operational Highlights
- Average mobile MAUs were 1.5 million, compared with 3.0 million in the second quarter of 2023.
- Number of medical service providers subscribing to information services on
So-Young's platform was 1,174, compared with 1,659 in the second quarter of 2023. - Total number of purchasing users through reservation services was 137.5 thousand and the aggregate value of medical aesthetic treatment transactions facilitated by
So-Young's platform wasRMB427.8 million .
Mr.
Mr.
[1] This press release contains translations of certain Renminbi (RMB) amounts into |
[2] Non-GAAP net income/(loss) attributable to |
Second Quarter 2024 Financial Results
Revenues
Total revenues were
-
Information services and other revenues were
RMB279.2 million (US$38.4 million ), a decrease of 6.6% fromRMB298.9 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
RMB22.4 million (US$3.1 million ), a decrease of 16.9% fromRMB26.9 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 were
RMB105.8 million (US$14.6 million ), an increase of 22.6% fromRMB86.3 million in the same period of 2023, primarily due to an increase in the order volumes for cosmetic products.
Cost of Revenues
Cost of revenues was
-
Cost of services and others were
RMB101.9 million (US$14.0 million ), a decrease of 4.4% fromRMB106.5 million in the second quarter of 2023. The decrease was primarily due to a decrease in the cost of services associated withSo-Young Prime . -
Cost of medical products sold and maintenance services were
RMB53.2 million (US$7.3 million ), an increase of 21.3% fromRMB43.9 million in the second quarter of 2023. The increase was primarily due to an increase in costs associated with the sales of cosmetic products.
Operating Expenses
Total operating expenses were
-
Sales and marketing expenses were
RMB132.3 million (US$18.2 million ), a decrease of 4.1% fromRMB137.9 million in the second quarter of 2023. The decrease was mainly due to a decrease in expenses associated with branding and user acquisition activities. Sales and marketing expenses included share-based compensation expenses ofRMB0.2 million (US$0.0 million ), compared withRMB0.8 million in the corresponding period of 2023. -
General and administrative expenses were
RMB70.8 million (US$9.7 million ), a decrease of 23.3% fromRMB92.3 million in the second quarter of 2023. The decrease was primarily due to decreases in share-based compensation expenses and professional consulting fees. General and administrative expenses included share-based compensation expenses ofRMB2.0 million (US$0.3 million ), compared withRMB15.5 million in the corresponding period of 2023. The decrease in share-based compensation expenses was due to the compensation costs of the restricted share units granted in 2023, which were fully recognized by the end of the first quarter of 2024. -
Research and development expenses were
RMB42.5 million (US$5.8 million ), a decrease of 18.5% fromRMB52.1 million in the second 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 withRMB1.3 million in the corresponding period of 2023.
Income Tax Benefits
Income tax benefits were
Net Income/(Loss) Attributable to
Net income attributable to
Non-GAAP Net Income 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 third 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: |
3725692 |
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
Ms. Dee Wang
Phone: +86-10-5900-1548
E-mail: dee.wang@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 |
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|
RMB |
|
RMB |
|
US$ |
Assets |
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and cash equivalents |
426,119 |
|
456,927 |
|
62,875 |
Restricted cash and term deposits |
14,695 |
|
83,224 |
|
11,452 |
Trade receivables |
57,219 |
|
81,585 |
|
11,226 |
Inventories |
118,924 |
|
143,374 |
|
19,729 |
Receivables from online payment platforms |
23,158 |
|
20,819 |
|
2,865 |
Amounts due from related parties |
9,212 |
|
10,292 |
|
1,416 |
Term deposits and short-term investments |
900,823 |
|
704,979 |
|
97,008 |
Prepayment and other current assets |
171,774 |
|
237,267 |
|
32,649 |
Total current assets |
1,721,924 |
|
1,738,467 |
|
239,220 |
Non-current assets: |
|
|
|
|
|
Long-term investments |
261,016 |
|
278,546 |
|
38,329 |
Intangible assets |
145,253 |
|
133,104 |
|
18,316 |
|
540,693 |
|
540,693 |
|
74,402 |
Property and equipment, net |
116,782 |
|
137,162 |
|
18,874 |
Deferred tax assets |
78,034 |
|
80,626 |
|
11,095 |
Operating lease right-of-use assets |
118,408 |
|
139,885 |
|
19,249 |
Other non-current assets |
232,455 |
|
183,546 |
|
25,257 |
Total non-current assets |
1,492,641 |
|
1,493,562 |
|
205,522 |
Total assets |
3,214,565 |
|
3,232,029 |
|
444,742 |
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
Short-term borrowings |
29,825 |
|
39,713 |
|
5,465 |
Taxes payable |
56,894 |
|
57,567 |
|
7,921 |
Contract liabilities |
103,374 |
|
95,656 |
|
13,163 |
Salary and welfare payables |
86,290 |
|
79,716 |
|
10,969 |
Amounts due to related parties |
388 |
|
138 |
|
19 |
Accrued expenses and other current |
233,913 |
|
249,175 |
|
34,287 |
Operating lease liabilities-current |
29,739 |
|
27,482 |
|
3,782 |
Total current liabilities |
540,423 |
|
549,447 |
|
75,606 |
Non-current liabilities: |
|
|
|
|
|
Operating lease liabilities-non current |
86,210 |
|
114,478 |
|
15,753 |
Deferred tax liabilities |
25,082 |
|
21,342 |
|
2,937 |
Other non-current liabilities |
1,536 |
|
1,610 |
|
222 |
Total non-current liabilities |
112,828 |
|
137,430 |
|
18,912 |
Total liabilities |
653,251 |
|
686,877 |
|
94,518 |
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders ' equity: |
|
|
|
|
|
|
(358,453) |
|
(365,451) |
|
(50,288) |
Class A ordinary shares ( |
238 |
|
251 |
|
35 |
Class B ordinary shares (US$ 0.0005 par value; 20,000,000 |
37 |
|
37 |
|
5 |
Additional paid-in capital |
3,080,433 |
|
3,065,650 |
|
421,847 |
Statutory reserves |
33,855 |
|
33,855 |
|
4,659 |
Accumulated deficit |
(330,166) |
|
(332,465) |
|
(45,749) |
Accumulated other comprehensive income |
18,185 |
|
23,934 |
|
3,293 |
|
2,444,129 |
|
2,425,811 |
|
333,802 |
Non-controlling interests |
117,185 |
|
119,341 |
|
16,422 |
Total shareholders' equity |
2,561,314 |
|
2,545,152 |
|
350,224 |
Total liabilities and shareholders ' equity |
3,214,565 |
|
3,232,029 |
|
444,742 |
|
||||||||||||
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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For the Six Months Ended |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RMB |
|
RMB |
|
US$ |
|
RMB |
|
RMB |
|
US$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues : |
|
|
|
|
|
|
|
|
|
|
|
|
Information services and others |
298,879 |
|
279,216 |
|
38,421 |
|
509,163 |
|
487,964 |
|
67,146 |
|
Reservation services |
26,903 |
|
22,356 |
|
3,076 |
|
56,584 |
|
45,420 |
|
6,250 |
|
Sales of medical products and maintenance services |
86,284 |
|
105,808 |
|
14,560 |
|
156,422 |
|
192,278 |
|
26,458 |
|
Total revenues |
412,066 |
|
407,380 |
|
56,057 |
|
722,169 |
|
725,662 |
|
99,854 |
|
Cost of revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of services and others |
(106,519) |
|
(101,853) |
|
(14,015) |
|
(188,019) |
|
(176,075) |
|
(24,229) |
|
Cost of medical products sold and maintenance services |
(43,859) |
|
(53,198) |
|
(7,320) |
|
(76,080) |
|
(96,291) |
|
(13,250) |
|
Total cost of revenues |
(150,378) |
|
(155,051) |
|
(21,335) |
|
(264,099) |
|
(272,366) |
|
(37,479) |
|
Gross profit |
261,688 |
|
252,329 |
|
34,722 |
|
458,070 |
|
453,296 |
|
62,375 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing expenses |
(137,921) |
|
(132,308) |
|
(18,206) |
|
(250,432) |
|
(245,564) |
|
(33,791) |
|
General and administrative expenses |
(92,341) |
|
(70,799) |
|
(9,742) |
|
(153,855) |
|
(155,752) |
|
(21,432) |
|
Research and development expenses |
(52,141) |
|
(42,498) |
|
(5,848) |
|
(107,934) |
|
(82,089) |
|
(11,296) |
|
Total operating expenses |
(282,403) |
|
(245,605) |
|
(33,796) |
|
(512,221) |
|
(483,405) |
|
(66,519) |
|
(Loss)/Income from operations |
(20,715) |
|
6,724 |
|
926 |
|
(54,151) |
|
(30,109) |
|
(4,144) |
|
Other income/(expenses): |
|
|
|
|
|
|
|
|
|
|
|
|
Investment income, net |
3,370 |
|
788 |
|
108 |
|
10,222 |
|
2,887 |
|
397 |
|
Interest income, net |
13,966 |
|
11,718 |
|
1,612 |
|
25,893 |
|
24,031 |
|
3,307 |
|
Exchange (losses)/gains |
(1,579) |
|
16 |
|
2 |
|
(1,154) |
|
410 |
|
56 |
|
Share of losses of equity method investee |
(3,699) |
|
(3,733) |
|
(514) |
|
(6,870) |
|
(7,729) |
|
(1,064) |
|
Others, net |
6,562 |
|
2,039 |
|
281 |
|
8,587 |
|
5,319 |
|
732 |
|
( Loss )/Income before tax |
(2,095) |
|
17,552 |
|
2,415 |
|
(17,473) |
|
(5,191) |
|
(716) |
|
Income tax benefits |
785 |
|
2,571 |
|
354 |
|
5,049 |
|
5,128 |
|
706 |
|
Net ( loss )/income |
(1,310) |
|
20,123 |
|
2,769 |
|
(12,424) |
|
(63) |
|
(10) |
|
Net income attributable to noncontrolling interests |
(1,268) |
|
(1,182) |
|
(163) |
|
(2,102) |
|
(2,236) |
|
(308) |
|
Net
(
loss
)/income
attributable to |
(2,578) |
|
18,941 |
|
2,606 |
|
(14,526) |
|
(2,299) |
|
(318) |
|
|
||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Continued) |
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(Amounts in thousands, except for share and per share data) |
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|
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|
For the Three Months Ended |
|
For the Six Months Ended |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RMB |
|
RMB |
|
US$ |
|
RMB |
|
RMB |
|
US$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net ( loss )/earnings per ordinary share |
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)/earnings per ordinary share attributable to ordinary shareholder - |
(0.03) |
|
0.24 |
|
0.03 |
|
(0.18) |
|
(0.03) |
|
(0.00) |
|
Net (loss)/earnings per ordinary share attributable to ordinary shareholder - |
(0.03) |
|
0.24 |
|
0.03 |
|
(0.18) |
|
(0.03) |
|
(0.00) |
|
Net (loss)/earnings per ADS attributable to ordinary shareholders - basic (13 |
(0.02) |
|
0.18 |
|
0.02 |
|
(0.14) |
|
(0.02) |
|
(0.00) |
|
Net (loss)/earnings per ADS attributable to ordinary shareholders - diluted (13 |
(0.02) |
|
0.18 |
|
0.02 |
|
(0.14) |
|
(0.02) |
|
(0.00) |
|
Weighted average number of ordinary shares used in computing earnings/(loss) |
77,310,426 |
|
79,586,926 |
|
79,586,926 |
|
78,580,369 |
|
79,569,190 |
|
79,569,190 |
|
Weighted average number of ordinary shares used in computing earnings/(loss) |
77,310,426 |
|
79,899,412 |
|
79,899,412 |
|
78,580,369 |
|
79,569,190 |
|
79,569,190 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based compensation expenses included in: |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of services and others |
(412) |
|
(229) |
|
(32) |
|
(1,217) |
|
(174) |
|
(24) |
|
Sales and marketing expenses |
(823) |
|
(184) |
|
(25) |
|
(2,317) |
|
(237) |
|
(33) |
|
General and administrative expenses |
(15,546) |
|
(2,015) |
|
(277) |
|
(21,564) |
|
(26,468) |
|
(3,642) |
|
Research and development expenses |
(1,305) |
|
(817) |
|
(112) |
|
(2,182) |
|
(1,660) |
|
(228) |
|
|
||||||||||||
* 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 Six Months Ended |
|
||||||||
|
2023 |
|
2024 |
|
|
|
|
|
|
|
|
|
|
RMB |
|
RMB |
|
US$ |
|
RMB |
|
RMB |
|
US$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP (loss)/income from operations |
(20,715) |
|
6,724 |
|
926 |
|
(54,151) |
|
(30,109) |
|
(4,144) |
|
Add back: Share-based compensation expenses |
18,086 |
|
3,245 |
|
446 |
|
27,280 |
|
28,539 |
|
3,927 |
|
Non-GAAP (loss)/income from operations |
(2,629) |
|
9,969 |
|
1,372 |
|
(26,871) |
|
(1,570) |
|
(217) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
n
et
(
loss
)/income
attributable to |
(2,578) |
|
18,941 |
|
2,606 |
|
(14,526) |
|
(2,299) |
|
(318) |
|
Add back: Share-based compensation expenses |
18,086 |
|
3,245 |
|
446 |
|
27,280 |
|
28,539 |
|
3,927 |
|
Non-GAAP
n
et
income
attributable to |
15,508 |
|
22,186 |
|
3,052 |
|
12,754 |
|
26,240 |
|
3,609 |
|
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