So-Young(US:SY)2023-03-21 15:24Financial 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]