So-Young(SY)2024-05-28 20:13Financial 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]