So-Young International Inc. (NASDAQ:SY) Q2 2023 Earnings Conference Call August 21, 2023 7:30 AM ET Company Participants Vivian XU - IR Xing Jin - Co-Founder, Chairman and CEO Hui Zhao - CFO Conference Call Participants Thomas Chong - Jefferies Chloe Wei - CICC Operator Ladies and gentlemen, thank you for standing by for So-Young's Second Quarter 2023 Earnings Conference Call. [Operator Instructions] As a reminder, today's conference call is being recorded. I would now like to turn the meeting over to your ...

So-Young International Inc. (NASDAQ:SY) Q1 2023 Earnings Conference Call May 22, 2023 7:30 AM ET Company Participants Vivian Xu - IR Xing Jin - Co-Founder, Chairman & CEO Hui Zhao - CFO Conference Call Participants Thomas Chong - Jefferies Nelson Cheung - Citi Chloe Wei - CICC Jessie Xu - Credit Suisse Operator Ladies and gentlemen, thank you for standing by for So-Young's First Quarter 2023 Earnings Conference Call. [Operator Instructions] As a reminder, today's conference call is being recorded. I would n ...

Revenue and Financial Performance - Consolidated affiliated entities contributed 100.0%, 93.0%, and 79.9% of total revenues for the years ended December 31, 2020, 2021, and 2022, respectively [18]. - Total revenue for the year ended December 31 was RMB 1,257,874, with third-party revenues from services and sales amounting to RMB 992,705 [39]. - The net loss attributable to So-Young International Inc. for the year was RMB 65,554, reflecting a significant decrease compared to previous periods [39]. - Total revenue for the year ended December 31, 2020, was RMB 1,294,988 thousand, with third-party revenues from services and sales contributing RMB 1,294,888 thousand [40]. - Total revenues decreased by 25.7% to RMB1,257.9 million (US$182.4 million) in 2022, following a 30.7% increase from RMB1,295.0 million in 2020 to RMB1,692.5 million in 2021 [56]. - Gross profit decreased by 36.6% to RMB864.6 million (US$125.4 million) in 2022, down from RMB1,364.6 million in 2021, with gross margin declining from 80.6% in 2021 to 68.7% in 2022 [56]. Regulatory and Compliance Risks - The PCAOB was unable to inspect registered public accounting firms in mainland China and Hong Kong, impacting the company's compliance under the Holding Foreign Companies Accountable Act [23]. - The company faces risks related to regulatory approvals, anti-monopoly actions, and cybersecurity oversight in mainland China, which could adversely affect operations and ADS value [21]. - Uncertainties in the legal system of mainland China could limit the enforceability of contractual arrangements with consolidated affiliated entities [20]. - The PRC Enterprise Income Tax Law imposes a withholding income tax of 10% on dividends distributed by foreign-invested enterprises to their immediate holding companies outside of China [29]. - The company may be subject to consumer claims and regulatory investigations, which could adversely affect its brand and financial condition [57]. - The evolving regulatory environment in China poses challenges for obtaining necessary approvals and licenses, which could adversely affect operations [124]. Operational Challenges - The company faces challenges in managing future growth and increasing service utilization among existing and new users [54]. - The online medical aesthetic service industry is rapidly evolving, making it difficult to evaluate future prospects and requiring continuous adaptation to competition [53]. - The company is vulnerable to health epidemics and natural disasters, which could disrupt operations and adversely affect results [85]. - The company acknowledges that negative perceptions of the medical aesthetic industry could impact consumer confidence and demand for its services [79]. - The company has not obtained certain licenses required for specific business operations, which may affect future revenue streams [35]. Financial Position and Cash Flow - The company reported total operating expenses of RMB 967,387 for the year, indicating a substantial operational cost structure [39]. - The total costs incurred by the company were RMB 393,292, highlighting the financial burden of operational activities [39]. - The company had cash and cash equivalents of RMB 694,420 thousand, which indicates a strong liquidity position [42]. - The company reported a net cash used in operating activities of RMB (112,873) thousand for the year ended December 31, 2022 [46]. - The company reported a significant amount of inventories, net at RMB 91,812 thousand, indicating stock levels [44]. Market and Competitive Landscape - The online medical aesthetic service market in China is experiencing significant growth, but competition is intensifying, which may lead to downward pressure on average fee rates for services [118]. - The company faces significant competition from both established players and new entrants in the online medical aesthetic service industry, which may hinder growth and market share [115]. - The company recognizes risks associated with the acquisition of Wuhan Miracle, including integration challenges and potential failure to achieve anticipated benefits [71]. Data Security and Privacy - The Data Security Law took effect in September 2021, establishing security review procedures for data-related activities that may affect national security [91]. - The Personal Information Protection Law, effective November 1, 2021, integrates rules for personal information rights and privacy protection, requiring ongoing updates to privacy policies [95]. - The company is subject to increased scrutiny regarding data security and privacy compliance, which could raise operational costs and risks [90]. - The company collects personal data, including contact information and browsing history, to enhance its big data analytical capabilities for targeted services [137]. Shareholder and Management Considerations - Retaining key management and employees is crucial for the company's success, as their loss could materially affect operations [150]. - The company has granted options for 770,152 ordinary shares under the 2018 Share Plan as of February 28, 2023, with a maximum aggregate number of shares set at 7,700,000 plus an annual increase of 2% [167]. - Under the 2021 Share Incentive Plan, 880,345 awards have been granted and outstanding as of February 28, 2023, with a maximum initial issuance of 1,734,760 shares [169]. Legal and Taxation Issues - The PRC tax authorities may scrutinize contractual arrangements, leading to additional tax liabilities that could adversely affect financial conditions [192]. - The newly enacted PRC Foreign Investment Law introduces uncertainties regarding the interpretation of contractual arrangements, which may affect corporate governance and operations [198]. - The company may lose access to material assets held by consolidated affiliated entities if they undergo bankruptcy or liquidation, impacting business operations [195].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 For the month of April 2023 Commission File Number: 001-38878 So-Young International Inc. Tower E, Ronsin Technology Center Chaoyang District, Beijing People's Republic of China (Address of principal executive offices) Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20- ...

Financial Data and Key Metrics Changes - For Q4 2022, total revenue was RMB 325.1 million, down 27.7% from RMB 449.5 million in Q4 2021, primarily due to COVID-19 impacts and a slowdown in the consumer market [12][15] - Non-GAAP net income for Q4 2022 was RMB 38.8 million, compared to RMB 62.9 million in the same period of 2021 [14][15] - Full year 2022 total revenues were RMB 1.26 billion, down 25.7% year-over-year [15] - Net loss for the full year 2022 was RMB 65.6 million, compared to a net loss of RMB 8.4 million in 2021 [15][16] - As of December 31, 2022, cash and cash equivalents totaled RMB 1.6 billion, down from RMB 1.8 billion a year earlier [16] Business Line Data and Key Metrics Changes - Information services and other revenues in Q4 2022 were RMB 233.9 million, down 32.1% year-over-year [13] - Reservation services revenue decreased by 37.2% year-over-year to RMB 26.0 million [13] - Sales of equipment and maintenance services revenue were RMB 65.3 million, slightly up from RMB 63.8 million in Q4 2021 [13] Market Data and Key Metrics Changes - The user base for medical aesthetics in China is expanding, particularly among the urban middle class, with increased demand for premium services [5][6] - The recovery of user orders in Tier 1 and Tier 2 cities has rebounded to levels seen in 2021, while orders in Tier 3 and Tier 4 cities have only recovered to 2022 levels [20][21] Company Strategy and Development Direction - The company plans to strengthen its community business and enhance user trust and engagement [8][9] - So-Young Prime, a self-operated service platform for non-surgical medical aesthetics, aims to improve service quality and user experience [6][9] - The company is focusing on expanding its market penetration and optimizing its supply chain to drive repeat purchases [9][10] Management Comments on Operating Environment and Future Outlook - Management holds a cautiously optimistic outlook for 2023, depending on the recovery pace of the overall consumption environment and the medical aesthetics market [20] - The company anticipates that the medical aesthetics market will continue to grow, particularly for light medical aesthetics services [10][25] - Management emphasized the importance of integrating supply chain capabilities to enhance service delivery and create competitive barriers [25][26] Other Important Information - The company has observed evolving consumer demands, with a focus on quality, safety, and rational pricing among middle-class medical aesthetics consumers [28] - The company aims to leverage its community e-commerce business to improve the efficiency of the medical aesthetics industry [26] Q&A Session Summary Question: Can you share about your marketing strategies and expected user base in 2023? - Management plans to ramp up marketing strategies while emphasizing efficiency and accuracy, focusing on private domain operations to increase user engagement and repurchase rates [17][18] Question: What is management's view on the recovery stage of the medical aesthetics industry in 2023? - Management sees a cautiously optimistic outlook, with rapid recovery in Tier 1 and Tier 2 cities, while institutions remain cautious in their marketing spending [20][21] Question: Could you revisit your thoughts on business volume in the short to medium term and the competitive landscape? - The growth driver will be the expansion of the non-surgical market, with plans to enhance service delivery and improve user penetration rates [23][24]

So-Young International Inc. (NASDAQ:SY) Q3 2022 Results Conference Call November 18, 2022 7:00 AM ET Company Participants Vivian Xu - IR Xing Jin - Co-Founder, Chairman & CEO Conference Call Participants Chloe Wei - CICC Nelson Cheung - Citi Ingrid Zhang - UBS Leo Chiang - Deutsche Bank Thomas Chong - Jefferies Operator Good morning, ladies and gentlemen, and thank you for standing by for So-Young's Third Quarter 2022 Earnings Conference Call. [Operator Instructions] As a reminder, today's conference is bei ...

So-Young International Inc. (NASDAQ:SY) Q2 2022 Earnings Conference Call August 16, 2022 7:30 AM ET Company Participants Vivian Xu – Investor Relations Min Yu – Chief Financial Officer and Director Conference Call Participants Thomas Chong – Jefferies Nelson Cheung – Citi Leo Chiang – Deutsche Bank Chloe Huang – CICC Operator Good morning, ladies and gentlemen, and thank you for standing by for So-Young's Second Quarter 2022 Earnings Conference Call. At this time all participants are in a listen-only mode. ...

So-Young International Inc. (NASDAQ:SY) Q3 2021 Results Conference Call November 19, 2021 7:00 AM ET Company Participants Vivian XU - IR Xing Jin - CEO Min Yu - CFO Conference Call Participants Thomas Chong - Jefferies Nelson Cheung - Citi Vincent Yu - Needham & Company Leo Chiang - Deutsche Bank Shiqi Ge - CICC Operator Good morning, ladies and gentlemen, and thank you for standing by for So-Young's Third Quarter 2021 Earnings Conference Call. [Operator Instructions] As a reminder, today's conference is be ...