Core Viewpoint - So-Young International Inc. has received approval from Nasdaq to transfer its listing from The Nasdaq Global Market to The Nasdaq Capital Market due to non-compliance with minimum bid price requirements [1][2][3] Group 1: Listing Transfer - The transfer of the Company's American depositary shares (ADSs) is effective from February 27, 2025, and will not impact trading, as the ADSs will continue to trade under the symbol "SY" [1] - The Nasdaq Capital Market operates similarly to the Nasdaq Global Market, with specific financial and corporate governance requirements for continued listing [1] Group 2: Compliance Issues - On August 29, 2024, the Company was notified of non-compliance with Nasdaq Listing Rule 5450(a)(1) due to the closing bid price being below US$1.00 for 30 consecutive business days [2] - The Company was granted an additional 180 calendar days, until August 25, 2025, to regain compliance with the minimum bid price requirement [3] - To regain compliance, the closing bid price must meet or exceed US$1.00 for a minimum of 10 consecutive business days [3] Group 3: Company Overview - So-Young International Inc. is the largest social community in China for the medical aesthetics industry, providing reliable information and high-quality content to users [5] - The Company is well-positioned to expand within the medical aesthetic industry and into the growing consumption healthcare service market [5]

Financial Data and Key Metrics Changes - Total revenue for Q3 2024 reached RMB 332 million, exceeding guidance and showing an 11.2% year-over-year increase in net income to RMB 20.3 million, while non-GAAP net income surged 133.1% year-over-year to RMB 22.2 million [5][20] - Total revenues during the quarter were RMB 371.8 million, down 3.5% year-over-year, with medical products and maintenance services growing by 18.7% year-over-year [16][20] - The company maintained a robust cash position with total cash and equivalents of RMB 1.25 billion as of September 30, 2024 [20] Business Line Data and Key Metrics Changes - The chain of clinics expanded to 17 locations, with revenue growing 67% quarter-over-quarter and all new clinics generating positive operating cash flow [6][8] - Revenue from the sales of medical products and maintenance services reached RMB 89.3 million, up 18.7% year-over-year [7] - The POP business facilitated a GMV increase of over 60% from the previous month, with per capita in-store GTV increasing 22.9% year-over-year [12] Market Data and Key Metrics Changes - The Chinese medical aesthetic market is polarizing, with mass consumers seeking cost-effective services while higher-income consumers prefer premium offerings [7][27] - The company has partnered with over 970 institutions for injectables, with shipments of its product Elasty increasing by 22% year-over-year [10] Company Strategy and Development Direction - The company aims to create a multi-dimensional competitive advantage through upstream, middle, and downstream integration, focusing on becoming a leading medical aesthetic service provider [13] - Plans to expand the clinic network through a franchise model to accelerate growth and enhance brand influence [36][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in long-term growth driven by strategic initiatives integrating the aesthetic medical industry, despite current market uncertainties [22] - The company is optimistic about the growth potential of light medical aesthetic chain clinics and aims to enhance competitiveness through vertical integration and cost optimization [27] Other Important Information - The company has invested over RMB 1 billion in building its upstream supply chain and expanding product offerings over the past three years [13] - Customer retention rates were maintained at 60%, with overall customer satisfaction at 4.98 out of 5 [8] Q&A Session Summary Question: What new changes or trends are emerging in the medical aesthetics industry? - Management noted the rise of light medical aesthetic procedures and the dominance of small institutions, indicating significant room for standardization and consolidation in the market [26][27] Question: Has there been a strategic shift for POP following the chain expansion? - Management emphasized the importance of POP and its role in attracting and retaining users, while also enhancing the experience for institutions and consumers [32] Question: What are the considerations behind implementing a franchise model? - The franchise model aims to accelerate clinic network expansion while maintaining high service standards and cost efficiency [36][39] Question: How has the management achieved a lower expense ratio and improved profitability? - Management attributed profitability to business growth, optimized costs, and refined marketing strategies, resulting in a well-managed expense ratio of 60.5% [42] Question: What competitive advantages does So-Young have over traditional upstream companies? - Management highlighted the operational advantages of their ecosystem-based approach, successful product launches, and strong marketing capabilities [47][49]

Core Viewpoint - So-Young International Inc. reported its third-quarter financial results for 2024, showing resilience in its business despite a slight decline in total revenues compared to the previous year. The company highlighted growth in medical products and maintenance services as key drivers of net income growth [1][2][4]. Financial Highlights - Total revenues for Q3 2024 were RMB371.8 million (US$53.0 million), a decrease of 3.5% from RMB385.3 million in Q3 2023 [2][4]. - Net income attributable to So-Young was RMB20.3 million (US$2.9 million), up from RMB18.3 million in the same period of 2023, marking a year-over-year increase [2][8]. - Non-GAAP net income attributable to So-Young was RMB22.2 million (US$3.2 million), significantly up from RMB9.5 million in Q3 2023, reflecting a growth rate of 133.1% [2][8]. Operational Highlights - Average mobile monthly active users (MAUs) were 1.4 million, down from 3.1 million in Q3 2023 [3]. - The number of medical service providers subscribing to So-Young's platform decreased to 1,322 from 1,397 in the same period last year [3]. - The total number of purchasing users through reservation services was 114.9 thousand, with an aggregate value of medical aesthetic treatment transactions facilitated by So-Young's platform reaching RMB346.0 million [3]. Revenue Breakdown - Information services and other revenues were RMB263.0 million (US$37.5 million), down 8.0% from RMB285.9 million in Q3 2023, primarily due to a decrease in the number of medical service providers [4]. - Reservation services revenues were RMB19.6 million (US$2.8 million), a decrease of 18.9% from RMB24.1 million in the same period of 2023, attributed to reduced consumer spending [4]. - Sales of medical products and maintenance services increased by 18.7% year-over-year to RMB89.3 million (US$12.7 million), driven by higher order volumes for cosmetic products and medical equipment [4]. Cost and Expenses - Cost of revenues was RMB142.2 million (US$20.3 million), a slight decrease of 0.3% from RMB142.6 million in Q3 2023 [5]. - Total operating expenses were RMB225.0 million (US$32.1 million), down 8.1% from RMB244.7 million in Q3 2023, with significant reductions in sales and marketing expenses [6][8]. - General and administrative expenses increased by 39.1% to RMB69.9 million (US$10.0 million), primarily due to higher share-based compensation expenses [8]. Earnings Per Share - Basic and diluted earnings per American Depositary Share (ADS) attributable to ordinary shareholders were RMB0.20 (US$0.03), compared to RMB0.18 in the same period of 2023 [9]. Business Outlook - For Q4 2024, So-Young expects total revenues to be between RMB350.0 million (US$49.9 million) and RMB370.0 million (US$52.7 million), representing a decrease of 10.4% to 5.3% from the same period in 2023 [9].

Core Points - So-Young International Inc. will report its financial results for Q3 2024 on November 20, 2024, before U.S. markets open [1] - The company is the largest social community in China for the medical aesthetics industry, providing reliable information and a platform for consumers, professionals, and service providers [4] Financial Reporting - The earnings conference call is scheduled for November 20, 2024, at 7:00 AM U.S. Eastern Time [2] - Dial-in details for the conference call include international and regional numbers, with a passcode for access [2] Company Overview - So-Young offers high-quality content and social functions, curating vetted medical aesthetic service providers [4] - The company is positioned to expand within the medical aesthetic industry and the growing consumption healthcare service market [4]

Financial Data and Key Metrics Changes - Total revenue for Q2 2024 was RMB407.4 million, exceeding the high-end of guidance, but down 1.1% year-over-year [13] - Non-GAAP net profit was RMB22.2 million, representing a 43.1% year-over-year increase [4] - Net income attributable to So-Young was RMB18.9 million, compared to a net loss of RMB2.6 million in the same period last year [15] - Basic and diluted earnings per ADS were RMB0.18, compared to losses of RMB0.02 in the same period of 2023 [15] Business Line Data and Key Metrics Changes - Revenue from medical products and maintenance services reached RMB106 million, up 22.6% year-over-year [4] - Information services and other revenues were RMB279.2 million, down 6.6% year-over-year [13] - Reservation services revenues decreased 16.9% year-over-year to RMB22.4 million [13] - GMV for medical aesthetic products and services reached RMB428 million, with over 230,000 verified orders, up around 70% and 80% respectively [7] Market Data and Key Metrics Changes - The number of verified customers increased by 85% quarter-over-quarter, with a repeat purchase rate exceeding 50% [8] - The use of private domains reached 810,000, up 14% quarter-over-quarter [7] - Shipments of the True Lift device exceeded 40,000 units, up 76% quarter-over-quarter and 130% year-over-year [10] Company Strategy and Development Direction - The company is focusing on vertical integration across the aesthetic medical industry to enhance operational efficiency and align with consumer needs [5][12] - Plans to begin franchising clinics in the second half of the year to rapidly expand footprint [9] - The strategy includes leveraging high-quality institutional partners and refining operations to strengthen competitive advantage in the mid-to-high-end market [6][12] Management Comments on Operating Environment and Future Outlook - Management noted a slowdown in consumer spending but highlighted ongoing growth in the medical aesthetic market [20] - The company anticipates that leading chains will dominate the market over the next four to five years, creating new opportunities for growth [21] - Despite macroeconomic challenges, the company remains confident in its long-term growth potential [11][17] Other Important Information - Total operating expenses were RMB245.6 million, down 13% year-over-year [14] - Cash and cash equivalents, along with term deposits, totaled RMB1.25 billion as of June 30, 2024 [16] - The company expects total revenues for Q3 2024 to be between RMB350 million and RMB370 million [16] Q&A Session Summary Question: Overall trend and consumer behavior in H2 2024 - Management acknowledged a slowdown in consumer confidence but noted that the medical aesthetic market continues to grow, driven by demand for minimally invasive services [20] Question: Outlook for the POP business - The POP business is crucial for growth, focusing on both standardized and non-standardized treatments to meet diverse consumer needs [24] Question: Factors affecting clinic chain expansion - Management identified site selection, staff recruitment, and marketing costs as key factors but noted improvements in opening efficiency [28] Question: Differentiation in the upstream sector - The company leverages its unique ecosystem to create synergies and enhance market competitiveness, setting it apart from traditional manufacturers [36] Question: Expected trend for gross margins - Management expects gross margins to be impacted in the short term due to the expansion of clinics and medical product sales, but improvements are anticipated as operations mature [40]

Financial Performance - Total revenues for the second quarter of 2024 were RMB407.4 million (US$56.1 million), a slight decrease of 1.1% from RMB412.1 million in the same period of 2023, but exceeded the high end of guidance [2][5] - Net income attributable to So-Young International Inc. was RMB18.9 million (US$2.6 million), a significant recovery from a net loss of RMB2.6 million in the second quarter of 2023 [2][10] - Non-GAAP net income attributable to So-Young was RMB22.2 million (US$3.1 million), up from RMB15.5 million in the same period of 2023 [2][10] Operational Highlights - Average mobile monthly active users (MAUs) decreased to 1.5 million from 3.0 million in the second quarter of 2023 [3] - The number of medical service providers subscribing to information services on So-Young's platform fell to 1,174 from 1,659 in the same period of 2023 [3] - The total number of purchasing users through reservation services was 137.5 thousand, with an aggregate value of medical aesthetic treatment transactions facilitated by So-Young's platform reaching RMB427.8 million [3] Revenue Breakdown - Information services and other revenues were RMB279.2 million (US$38.4 million), down 6.6% from RMB298.9 million in the same period of 2023 [6] - Reservation services revenues decreased by 16.9% to RMB22.4 million (US$3.1 million) from RMB26.9 million in the same period of 2023 [6] - Sales of medical products and maintenance services increased by 22.6% to RMB105.8 million (US$14.6 million) from RMB86.3 million in the same period of 2023 [6] Cost and Expenses - Cost of revenues was RMB155.1 million (US$21.3 million), an increase of 3.1% from RMB150.4 million in the second quarter of 2023 [7] - Total operating expenses decreased by 13.0% to RMB245.6 million (US$33.8 million) from RMB282.4 million in the second quarter of 2023 [8] - General and administrative expenses saw a significant decrease of 23.3% to RMB70.8 million (US$9.7 million) from RMB92.3 million in the same period of 2023 [9] Business Outlook - For the third quarter of 2024, So-Young expects total revenues to be between RMB350.0 million (US$48.2 million) and RMB370.0 million (US$50.9 million), representing a decrease of 9.2% to 4.0% from the same period in 2023 [12]

Core Viewpoint - So-Young International Inc. will report its financial results for the second quarter of 2024 on August 23, 2024, before U.S. markets open [1] Group 1: Financial Reporting - The financial results will cover the period ended June 30, 2024 [1] - An earnings conference call is scheduled for August 23, 2024, at 7:30 AM U.S. Eastern Time [1] - Dial-in details for the conference call are provided for international, China, U.S., and Hong Kong participants [2] Group 2: Company Overview - So-Young International Inc. is the largest social community in China for the medical aesthetics industry [4] - The company offers reliable information and high-quality content, along with social functions on its platform [4] - So-Young is positioned to expand within the medical aesthetic industry and the growing consumption healthcare service market [4]

Financial Data and Key Metrics Changes - Total revenues for Q1 2024 reached RMB 318.3 million, up 2.6% year-over-year, exceeding guidance [14] - Revenue from sales of medical products and maternity services increased 23.3% year-over-year to RMB 86.5 million [14] - Net loss attributable to So-Young was RMB 21.2 million, compared to a net loss of RMB 11.9 million in the same period last year [17] - Non-GAAP net income attributable to So-Young was RMB 4.1 million, compared to a net non-GAAP net loss of RMB 2.8 million in the same period of 2023 [17] - Cash and cash equivalents totaled RMB 1.3 billion as of March 31, 2024, effectively flat compared to December 31, 2023 [17] Business Line Data and Key Metrics Changes - Information services and other revenues were RMB 208.7 million, a slight decrease of 0.7% year-over-year [14] - Reservation service revenues decreased 22.3% year-over-year to RMB 23.1 million, primarily due to policy changes [14] - Cumulative clients served by clinics increased 77% quarter-over-quarter [6] Market Data and Key Metrics Changes - The Chinese medical aesthetics market is gradually recovering, with retail sales of consumer goods increasing by 4.7% year-over-year in Q1 [21] - Sales of the Korea provides a role increased 80% year-over-year, establishing a mature distribution network covering 715 institutions [11] Company Strategy and Development Direction - The company plans to vertically integrate upstream supply chains, midstream operations, and downstream distribution channels to optimize costs and enhance efficiency [22] - Aiming to open 15 clinics in 2024, with a target of 100 to 150 clinics in the next three years [28] - Focus on establishing an industry platform to address structural issues in the medical aesthetics market [12] Management Comments on Operating Environment and Future Outlook - Management noted that the medical aesthetics user group is maturing, leading to more diversified user demands [21] - The company expects total revenues for Q2 2024 to be between RMB 380 million and RMB 400 million [18] - Management emphasized the importance of user satisfaction, which reached 98% from January to April [29] Other Important Information - Total operating expenses were RMB 237.8 million, up 3.5% year-over-year [16] - G&A expenses increased by 38.1% year-over-year, primarily due to payroll costs associated with expanding administrative support [16] Q&A Session Summary Question: Full-year outlook and trends - Management indicated that the medical aesthetics market is recovering, and they will maintain strategies based on existing business while optimizing costs and enhancing efficiency [21][22] Question: Decline of traditional metrics and traffic competition - Management acknowledged intensified competition for traffic but emphasized engagement through community content and private domain operations [24] Question: Progress of So-Young Prime clinics - Management confirmed that the opening of new clinics is on track, with plans to reach 100 to 150 clinics in the next three years [28] Question: Upstream supply chain business progress and cash reserves usage - Management reported strong sales growth in the upstream supply chain and plans to use cash for expanding the industry platform and potential shareholder returns [31][34]

Financial Performance - Total revenues for the first quarter of 2024 were RMB318.3 million (US$44.1 million), representing a 2.6% increase from RMB310.1 million in the same period of 2023, exceeding the high end of guidance [2][6] - Net loss attributable to So-Young International Inc. was RMB21.2 million (US$2.9 million), compared to a net loss of RMB11.9 million in the first quarter of 2023 [2][13] - Non-GAAP net income attributable to So-Young was RMB4.1 million (US$0.6 million), a significant improvement from a non-GAAP net loss of RMB2.8 million in the same period of 2023 [2][13] Operational Highlights - Average mobile monthly active users (MAUs) decreased to 2.0 million from 3.4 million in the first quarter of 2023 [3] - The number of medical service providers subscribing to information services on So-Young's platform decreased to 1,160 from 1,419 in the first quarter of 2023 [3] - The total number of purchasing users through reservation services was 132.8 thousand, with an aggregate value of medical aesthetic treatment transactions facilitated by So-Young's platform amounting to RMB367.1 million [3] Revenue Breakdown - Revenue from information services and other sources was RMB208.7 million (US$28.9 million), a decrease of 0.7% from RMB210.3 million in the same period of 2023 [7] - Reservation services revenues were RMB23.1 million (US$3.2 million), down 22.3% from RMB29.7 million in the same period of 2023, primarily due to policy changes regarding commission rates and subsidies [7] - Sales of medical products and maintenance services reached RMB86.5 million (US$12.0 million), an increase of 23.3% from RMB70.1 million in the same period of 2023, driven by higher sales of cosmetic products and medical equipment [7][6] Cost and Expenses - Total operating expenses were RMB237.8 million (US$32.9 million), an increase of 3.5% from RMB229.8 million in the first quarter of 2023 [11] - Sales and marketing expenses increased to RMB113.3 million (US$15.7 million), primarily due to higher payroll costs associated with marketing expansion [12] - General and administrative expenses rose significantly by 38.1% to RMB85.0 million (US$11.8 million), attributed to increased payroll costs for administrative support [12] Business Outlook - For the second quarter of 2024, So-Young expects total revenues to be between RMB380.0 million (US$52.6 million) and RMB400.0 million (US$55.4 million), indicating a decrease of 7.8% to 2.9% compared to the same period in 2023 [15]

Core Viewpoint - So-Young International Inc. is set to report its financial results for Q1 2024 on May 28, 2024, and will hold an earnings conference call on the same day [1]. Company Overview - So-Young is recognized as the largest and most vibrant social community in China for the medical aesthetics industry, catering to consumers, professionals, and service providers [2]. - The company provides reliable information through high-quality content and a variety of social functions on its platform, while also curating a selection of vetted medical aesthetic service providers [2]. - So-Young is well-positioned to expand within the medical aesthetic industry value chain and into the rapidly growing consumption healthcare service market, leveraging its strong brand image, extensive audience reach, user trust, engaging community, and data insights [2].