So-Young International Inc. (Nasdaq: SY) (“So-Young” or the
“Company”), the largest and most vibrant social community in China
for consumers, professionals and service providers in the medical
aesthetics industry, today announced its unaudited financial
results for the first quarter ended March 31, 2022.
First Quarter 2022 Financial Highlights
- Total revenues were RMB300.3 million (US$47.4 million1), a
decrease of 16.5% from RMB359.6 million in the same period of 2021,
exceeding the high end of our previous guidance.
- Net loss attributable to So-Young International Inc. was
RMB66.8 million (US$10.5 million), compared with net loss
attributable to So-Young International Inc. of RMB45.0 million in
the first quarter of 2021.
- Non-GAAP net loss attributable to So-Young International Inc.2
was RMB48.3 million (US$7.6 million), compared with non-GAAP net
loss attributable to So-Young International Inc. of RMB26.1 million
in the same period of 2021.
First Quarter 2022 Operational Highlights
- Average mobile MAUs were 4.4 million, compared with 8.4 million
in the first quarter of 2021.
- Number of paying medical service providers on So-Young’s
platform were 5,254, an increase of 11.7% from 4,702 in the first
quarter of 2021.
- Number of medical service providers subscribing to information
services on So-Young’s platform were 1,891, compared with 2,191 in
the first quarter of 2021.
- Total number of users purchasing reservation services were
120.4 thousand and the aggregate value of medical aesthetic
treatment transactions facilitated by So-Young’s platform was
RMB341.5 million.
Mr. Xing Jin, Co-Founder and Chief Executive Officer of
So-Young, commented, “We started the new fiscal year by delivering
solid results amid the resurgence of COVID-19 cases across cities
in China and the challenging macro environment. We further
optimized community content and online infrastructure capacity
through technology and innovation to improve user experience and
branding digital support for medical service providers. As a
result, the number of paying medical service providers on our
platform were 5,254 in the first quarter of 2022, up 11.7% from
4,702 year-over-year.”
Mr. Jin continued, “During the quarter, we made some short
videos on user experience of non-surgical products to increase user
trust and user engagement. Meanwhile, we continued to build
So-Young authentic product in non-surgical business to acquire
consumer awareness. Going forward, we will continue to expand
product offerings, improve service quality, innovate our content,
and bring new value to reaffirm our leadership position.”
Mr. Min Yu, “Our growing consumer awareness helped drive the
solid results for the quarter amid macro challenges. With sustained
user trust and improving acquisition efficiency for medical service
providers across our platform, we have continued our revenue and
strong cash position that enable us to invest new business in
long-term growth. Looking ahead, we are confident of our growth
prospects and generate long-term value for our shareholders.”
First Quarter 2022 Financial Results
Revenues
Total revenues were RMB300.3 million (US$47.4 million), a
decrease of 16.5% from RMB359.6 million in the same period of 2021.
The decrease was primarily due to a decrease in average revenue per
paying medical service provider which was impacted from the
resurgence of COVID-19.
- Information services and other revenues were
RMB199.5 million (US$31.5 million), a decrease of 28.2% from
RMB277.8 million in the same period of 2021. The decrease was
primarily due to a decrease in average revenue per paying medical
service provider subscribing to information services.
- Reservation services revenues were
RMB42.4 million (US$6.7 million), a decrease of 48.2% from RMB81.8
million in the same period of 2021. The decrease was primarily due
to the impact from the resurgence of COVID-19 across the country
and adoption of new operating strategy which gave higher subsidies
to end users.
- Sales of equipment and maintenance
services revenues were RMB58.5 million (US$9.2
million), from Wuhan Miracle.
Cost of Revenues
Cost of revenues were RMB106.6 million (US$16.8 million), an
increase of 103.6% from RMB52.4 million in the first quarter of
2021. The increase was primarily due to the consolidation of the
costs of Wuhan Miracle. Cost of revenues included share-based
compensation expenses of RMB2.6 million (US$0.4 million) during the
first quarter of 2022, compared with RMB4.3 million in the
corresponding period of 2021.
Operating Expenses
Total operating expenses were RMB271.5 million (US$42.8
million), a decrease of 26.1% from RMB367.3 million in the first
quarter of 2021.
- Sales and marketing expenses were
RMB127.2 million (US$20.1 million), a decrease of 47.5% from
RMB242.4 million in the first quarter of 2021. The decrease was
primarily due to a decrease in expenses associated with
branding and user acquisition activities. Sales and marketing
expenses for the first quarter of 2022 included share-based
compensation expenses of RMB3.4 million (US$0.5 million), compared
with RMB2.3 million in the corresponding period of 2021.
- General and administrative expenses were
RMB65.4 million (US$10.3 million), an increase of 18.5% from
RMB55.2 million in the first quarter of 2021. The increase was
primarily due to the consolidation of Wuhan Miracle and the
increase of payroll costs. General and administrative expenses for
the first quarter of 2022 included share-based compensation
expenses of RMB7.9 million (US$1.2 million), compared with RMB7.2
million in the corresponding period of 2021.
- Research and development expenses were
RMB78.9 million (US$12.5 million), an increase of 13.1% from
RMB69.8 million in the first quarter of 2021. The increase was
primarily attributable to an increase in payroll costs. Research
and development expenses for the first quarter of 2022 included
share-based compensation expenses of RMB4.6 million (US$0.7
million), compared with RMB5.1 million in the corresponding period
of 2021.
Income Tax Benefit/(Expenses)Income tax benefit
were RMB2.0 million (US$0.3 million), compared with income tax
benefit RMB4.3 million in the same period of 2021.
Net loss attributable to So-Young International
Inc.
Net loss attributable to So-Young International Inc. was RMB66.8
million (US$10.5 million), compared with a net loss attributable to
So-Young International Inc. of RMB45.0 million in the first quarter
of 2021.
Non-GAAP net (loss)/income attributable to So-Young
International Inc.
Non-GAAP net loss attributable to So-Young International Inc.,
which excludes the impact of share-based compensation expenses and
impairment of goodwill and intangible assets attributable to
So-Young International Inc., was RMB48.3 million (US$7.6 million),
compared with RMB26.1 million non-GAAP net loss attributable to
So-Young International Inc. in the same period of 2021.
Basic and Diluted Loss per ADS
Basic and diluted loss per ADS attributable to ordinary
shareholders were RMB0.62 (US$0.10) and RMB0.62 (US$0.10),
respectively, compared with basic and diluted earnings per ADS
attributable to ordinary shareholders of RMB0.42 and RMB0.42,
respectively, in the same period of 2021.
Cash and Cash Equivalents, Restricted Cash and Term
Deposits, Term Deposits and Short-Term Investments
As of March 31, 2022, cash and cash equivalents, restricted cash
and term deposits, term deposits and short-term investments were
RMB1,693.1 million (US$267.1 million), compared with
RMB1,756.0 million as of December 31, 2021.
Business Outlook
As a result of the uncertainties created by the
on-going COVID resurgence in China, we are unable to give revenue
guidance for the second quarter of 2022.
Non-GAAP Financial Measures
To supplement the financial measures prepared in
accordance with generally accepted accounting principles in the
United States, or GAAP, this press release presents non-GAAP
(loss)/income from operations and non-GAAP net (loss)/income
attributable to So-Young International Inc. by excluding
share-based compensation expenses and impairment of goodwill and
intangible assets from (loss)/income from operations and net
(loss)/income attributable to So-Young International Inc.,
respectively. The Company believes these non-GAAP financial
measures are important to help investors understand the Company’s
operating and financial performance, compare business trends among
different reporting periods on a consistent basis and assess the
Company’s core operating results, as they exclude certain expenses
that are not expected to result in cash payments. The use of the
above non-GAAP financial measures has certain limitations.
Share-based compensation expenses have been and will continue to be
incurred in the future. The impairment of goodwill and intangible
assets are non-cash in nature. All these are not reflected in the
presentation of the non-GAAP financial measures, but should be
considered in the overall evaluation of the Company’s results. The
Company compensates for these limitations by providing the relevant
disclosure of its share-based compensation expenses and impairment
of goodwill and intangible assets in the reconciliations to the
most directly comparable GAAP financial measures, which should be
considered when evaluating the Company’s performance. These
non-GAAP financial measures should be considered in addition to
financial measures prepared in accordance with GAAP, but should not
be considered a substitute for, or superior to, financial measures
prepared in accordance with GAAP. Reconciliation of each of these
non-GAAP financial measures to the most directly comparable GAAP
financial measure is set forth at the end of this release.
About So-Young International
Inc.So-Young International Inc. (Nasdaq: SY) (“So-Young”
or the “Company”) is the largest and most vibrant social community
in China for consumers, professionals and service providers in the
medical aesthetics industry. The Company presents users with
reliable information through offering high quality and trustworthy
content together with a multitude of social functions on its
platform, as well as by curating medical aesthetic service
providers that are carefully selected and vetted. Leveraging
So-Young’s strong brand image, extensive audience reach, trust from
its users, highly engaging social community and data insights, the
Company is well-positioned to expand both along the medical
aesthetic industry value chain and into the massive, fast-growing
consumption healthcare service market.
Safe Harbor StatementThis
announcement contains forward-looking statements. These statements
are made under the “safe harbor” provisions of the U.S. Private
Securities Litigation Reform Act of 1995. These forward-looking
statements can be identified by terminology such as “will,”
“expects,” “anticipates,” “future,” “intends,” “plans,” “believes,”
“estimates,” “confident” and similar statements. Among other
things, the Financial Guidance and quotations from management in
this announcement, as well as So-Young’s strategic and operational
plans, contain forward-looking statements. So-Young may also make
written or oral forward-looking statements in its periodic reports
to the U.S. Securities and Exchange Commission, in its annual
report to shareholders, in press releases and other written
materials and in oral statements made by its officers, directors or
employees to fourth parties. Statements that are not historical
facts, including but not limited to statements about So-Young’s
beliefs and expectations, are forward-looking statements. Forward
looking statements involve inherent risks and uncertainties. A
number of factors could cause actual results to differ materially
from those contained in any forward-looking statement, including
but not limited to the following: So-Young’s strategies; So-Young’s
future business development, financial condition and results of
operations; So-Young’s ability to retain and increase the number of
users and medical service providers, and expand its service
offerings; competition in the online medical aesthetic service
industry; changes in So-Young’s revenues, costs or expenditures;
Chinese governmental policies and regulations relating to the
online medical aesthetic service industry, general economic and
business conditions globally and in China; the impact of the
COVID-19 pandemic to So-Young’s business operations and the economy
in China and elsewhere generally; and assumptions underlying or
related to any of the foregoing. Further information regarding
these and other risks is included in the Company’s filings with the
Securities and Exchange Commission. All information provided in
this press release and in the attachments is as of the date of the
press release, and So-Young undertakes no duty to update such
information, except as required under applicable law.
For more information, please
contact:
So-Young
Investor RelationsMs. Vivian
XuPhone: +86-10-8790-2012E-mail: ir@soyoung.com
Christensen
In ChinaMr. Eric YuanPhone: +86-10-5900-1548E-mail:
Eyuan@christensenir.com
In USMs. Linda BergkampPhone: +1-480-614-3004Email:
lbergkamp@christensenir.com
SO-YOUNG INTERNATIONAL
INC.UNAUDITED CONDENSED CONSOLIDATED BALANCE
SHEETS(Amounts in thousands, except for share and
per share data)
|
As of |
|
December 31, |
|
March 31, |
|
March 31, |
2021 |
2022 |
2022 |
|
RMB |
|
RMB |
|
US$ |
Assets |
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and cash equivalents |
1,331,968 |
|
1,564,352 |
|
246,770 |
Restricted cash and term
deposits |
15,119 |
|
17,922 |
|
2,827 |
Trade receivables |
54,829 |
|
42,126 |
|
6,645 |
Inventories, net |
91,812 |
|
89,065 |
|
14,050 |
Receivables from online
payment platforms |
18,864 |
|
17,225 |
|
2,717 |
Amounts due from related
parties |
14,038 |
|
28,139 |
|
4,439 |
Term deposits and short-term
investments |
408,946 |
|
110,854 |
|
17,487 |
Prepayment and other current
assets |
91,842 |
|
83,791 |
|
13,218 |
Total current
assets |
2,027,418 |
|
1,953,474 |
|
308,153 |
Non-current assets: |
|
|
|
|
|
Long-term investments |
252,500 |
|
251,398 |
|
39,657 |
Intangible assets |
193,955 |
|
187,818 |
|
29,628 |
Goodwill |
540,693 |
|
540,693 |
|
85,292 |
Property and equipment,
net |
124,576 |
|
122,779 |
|
19,368 |
Deferred tax assets |
47,520 |
|
47,524 |
|
7,497 |
Operating lease right-of-use
assets |
95,609 |
|
88,813 |
|
14,010 |
Other non-current assets |
48,097 |
|
57,694 |
|
9,101 |
Total non-current
assets |
1,302,950 |
|
1,296,719 |
|
204,553 |
Total
assets |
3,330,368 |
|
3,250,193 |
|
512,706 |
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
Taxes payable |
48,571 |
|
50,250 |
|
7,927 |
Contract liabilities |
139,155 |
|
139,321 |
|
21,977 |
Salary and welfare
payables |
103,624 |
|
73,442 |
|
11,585 |
Amounts due to related
parties |
681 |
|
57 |
|
9 |
Accrued expenses and other
current liabilities |
376,841 |
|
385,434 |
|
60,801 |
Operating lease
liabilities-current |
43,529 |
|
48,115 |
|
7,590 |
Total current
liabilities |
712,401 |
|
696,619 |
|
109,889 |
Non-current liabilities: |
|
|
|
|
|
Operating lease
liabilities-non current |
62,356 |
|
52,496 |
|
8,281 |
Deferred tax liabilities |
38,577 |
|
36,770 |
|
5,800 |
Total non-current
liabilities |
100,933 |
|
89,266 |
|
14,081 |
Total
liabilities |
813,334 |
|
785,885 |
|
123,970 |
|
|
|
|
|
|
SO-YOUNG INTERNATIONAL
INC.UNAUDITED CONDENSED CONSOLIDATED BALANCE
SHEETS(Amounts in thousands, except for share and
per share data)
Shareholders’
equity: |
|
|
|
|
|
Treasury stock |
(217,712 |
) |
|
(217,712 |
) |
|
(34,343 |
) |
Class A Ordinary shares (US$ 0.0005 par value;
750,000,000 shares authorized as of December 31, 2021 and
March 31, 2022; 71,736,059 and 69,092,367 shares issued and
outstanding as of December 31, 2021, 71,808,181 and 69,164,489
shares issued and outstanding as of March 31, 2022,
respectively) |
230 |
|
|
230 |
|
|
36 |
|
Class B Ordinary shares (US$ 0.0005 par value; 20,000,000
shares authorized as of December 31, 2021 and March 31, 2022;
12,000,000 shares issued and outstanding as of December 31,
2021 and March 31, 2022) |
37 |
|
|
37 |
|
|
6 |
|
Additional paid-in
capital |
2,999,562 |
|
|
3,018,184 |
|
|
476,107 |
|
Statutory reserves |
20,331 |
|
|
20,331 |
|
|
3,207 |
|
Accumulated deficit |
(272,368 |
) |
|
(339,209 |
) |
|
(53,509 |
) |
Accumulated other
comprehensive loss |
(83,891 |
) |
|
(88,040 |
) |
|
(13,888 |
) |
Total So-Young
International Inc. shareholders’ equity |
2,446,189 |
|
|
2,393,821 |
|
|
377,616 |
|
|
|
|
|
|
|
Non-controlling interests |
70,845 |
|
|
70,487 |
|
|
11,120 |
|
|
|
|
|
|
|
Total shareholders’
equity |
2,517,034 |
|
|
2,464,308 |
|
|
388,736 |
|
|
|
|
|
|
|
Total liabilities and shareholders’ equity |
3,330,368 |
|
|
3,250,193 |
|
|
512,706 |
|
SO-YOUNG INTERNATIONAL
INC.UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS(Amounts in thousands, except for share
and per share data)
|
For the Three Months Ended |
|
March 31, 2021 |
|
December 31, 2021 |
|
March 31, 2022 |
|
March 31, 2022 |
|
|
RMB |
|
RMB |
|
RMB |
|
US$ |
|
|
|
|
|
|
|
|
|
|
Revenues |
|
|
|
|
|
|
|
|
Information services and others |
277,833 |
|
|
344,315 |
|
|
199,531 |
|
|
31,475 |
|
|
Reservation services |
81,812 |
|
|
41,372 |
|
|
42,353 |
|
|
6,681 |
|
|
Sales of equipment and
maintenance services |
- |
|
|
63,836 |
|
|
58,462 |
|
|
9,223 |
|
|
Total
revenues |
359,645 |
|
|
449,523 |
|
|
300,346 |
|
|
47,379 |
|
|
Cost of revenues |
(52,354 |
) |
|
(127,090 |
) |
|
(106,583 |
) |
|
(16,813 |
) |
|
Gross
profit |
307,291 |
|
|
322,433 |
|
|
193,763 |
|
|
30,566 |
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
Sales and marketing
expenses |
(242,358 |
) |
|
(152,656 |
) |
|
(127,213 |
) |
|
(20,067 |
) |
|
General and administrative
expenses |
(55,177 |
) |
|
(85,852 |
) |
|
(65,392 |
) |
|
(10,315 |
) |
|
Research and development
expenses |
(69,803 |
) |
|
(67,519 |
) |
|
(78,934 |
) |
|
(12,452 |
) |
|
Impairment of goodwill and
intangible assets |
- |
|
|
(65,879 |
) |
|
- |
|
|
- |
|
|
Total operating
expenses |
(367,338 |
) |
|
(371,906 |
) |
|
(271,539 |
) |
|
(42,834 |
) |
|
Loss
from operations |
(60,047 |
) |
|
(49,473 |
) |
|
(77,776 |
) |
|
(12,268 |
) |
|
Other
income/(expenses): |
|
|
|
|
|
|
|
|
Investment income |
2,668 |
|
|
927 |
|
|
2,436 |
|
|
384 |
|
|
Interest income |
6,000 |
|
|
3,654 |
|
|
3,199 |
|
|
505 |
|
|
Exchange (losses)/gain |
(4,711 |
) |
|
33 |
|
|
61 |
|
|
10 |
|
|
Share of gain/(losses) of
equity method investee |
79 |
|
|
(746 |
) |
|
(1,069 |
) |
|
(169 |
) |
|
Others, net |
5,405 |
|
|
2,208 |
|
|
3,956 |
|
|
624 |
|
|
Loss before
tax |
(50,606 |
) |
|
(43,397 |
) |
|
(69,193 |
) |
|
(10,914 |
) |
|
Income tax
benefit/(expenses) |
4,334 |
|
|
(10,145 |
) |
|
2,001 |
|
|
316 |
|
|
Net loss |
(46,272 |
) |
|
(53,542 |
) |
|
(67,192 |
) |
|
(10,598 |
) |
|
Net loss attributable to
noncontrolling interests |
1,275 |
|
|
25,806 |
|
|
351 |
|
|
55 |
|
|
Net loss attributable
to So-Young International Inc. |
(44,997 |
) |
|
(27,736 |
) |
|
(66,841 |
) |
|
(10,543 |
) |
|
SO-YOUNG INTERNATIONAL
INC.UNAUDITED CONDENSED CONSOLIDATED STATEMENTS
OF OPERATIONS
(Continued)(Amounts in thousands, except
for share and per share data)
|
For the Three Months Ended |
|
March 31, 2021 |
|
December 31, 2021 |
|
March 31, 2022 |
|
March 31, 2022 |
|
|
RMB |
|
RMB |
|
RMB |
|
US$ |
|
|
|
|
|
|
|
|
|
|
Net loss per ordinary
share |
|
|
|
|
|
|
|
|
Net loss per ordinary share attributable to ordinary shareholder -
basic |
(0.55 |
) |
|
(0.34 |
) |
|
(0.81 |
) |
|
(0.13 |
) |
|
Net loss per ordinary share
attributable to ordinary shareholder - diluted |
(0.55 |
) |
|
(0.34 |
) |
|
(0.81 |
) |
|
(0.13 |
) |
|
Net loss per ADS attributable
to ordinary shareholders - basic (13 ADS represents 10 Class A
ordinary shares) |
(0.42 |
) |
|
(0.26 |
) |
|
(0.62 |
) |
|
(0.10 |
) |
|
Net loss per ADS attributable
to ordinary shareholders - diluted (13 ADS represents 10 Class A
ordinary shares) |
(0.42 |
) |
|
(0.26 |
) |
|
(0.62 |
) |
|
(0.10 |
) |
|
Weighted average number of
ordinary shares used in computing earnings/(loss) per share,
basic* |
82,118,661 |
|
|
81,304,182 |
|
|
82,079,975 |
|
|
82,079,975 |
|
|
Weighted average number of
ordinary shares used in computing earnings/(loss) per share,
diluted* |
82,118,661 |
|
|
81,304,182 |
|
|
82,079,975 |
|
|
82,079,975 |
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation expenses included in: |
|
|
|
|
|
|
|
|
Cost of revenues |
(4,333 |
) |
|
(5,830 |
) |
|
(2,634 |
) |
|
(416 |
) |
|
Sales and marketing
expenses |
(2,294 |
) |
|
(3,719 |
) |
|
(3,436 |
) |
|
(542 |
) |
|
General and administrative
expenses |
(7,168 |
) |
|
(32,259 |
) |
|
(7,914 |
) |
|
(1,248 |
) |
|
Research and development
expenses |
(5,116 |
) |
|
(7,106 |
) |
|
(4,592 |
) |
|
(724 |
) |
|
* 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.
SO-YOUNG INTERNATIONAL
INC.Reconciliation of GAAP and Non-GAAP
Results(Amounts in thousands, except for share and
per share data)
|
For the Three Months Ended |
|
March 31, 2021 |
|
December 31, 2021 |
|
March 31, 2022 |
|
March 31, 2022 |
|
|
RMB |
|
RMB |
|
RMB |
|
US$ |
|
|
|
|
|
|
|
|
|
|
GAAP loss from operations |
(60,047 |
) |
|
(49,473 |
) |
|
(77,776 |
) |
|
(12,268 |
) |
|
Add back: Share-based
compensation expenses |
18,911 |
|
|
48,914 |
|
|
18,576 |
|
|
2,930 |
|
|
Add back: Impairment of
goodwill and intangible assets |
- |
|
|
65,879 |
|
|
- |
|
|
- |
|
|
Non-GAAP (loss)/income
from operations |
(41,136 |
) |
|
65,320 |
|
|
(59,200 |
) |
|
(9,338 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Net loss
attributable to So-Young International Inc. |
(44,997 |
) |
|
(27,736 |
) |
|
(66,841 |
) |
|
(10,543 |
) |
|
Add back: Share-based
compensation expenses |
18,911 |
|
|
48,914 |
|
|
18,576 |
|
|
2,930 |
|
|
Add back: Impairment of
goodwill and intangible assets attributable to |
- |
|
|
41,748 |
|
|
- |
|
|
- |
|
|
So-Young International Inc. |
|
|
Non-GAAP Net
(loss)/income attributable to So-Young International
Inc. |
(26,086 |
) |
|
62,926 |
|
|
(48,265 |
) |
|
(7,613 |
) |
|
___________________________________1 This press release contains
translations of certain Renminbi (RMB) amounts into U.S. dollars
(US$) solely for the convenience of the reader. Unless otherwise
specified, all translations of Renminbi amounts into U.S. dollar
amounts in this press release are made at RMB6.3393 to US$1.00,
which was the U.S. dollars middle rate announced by the Board of
Governors of the Federal Reserve System of the United States on
March 31, 2022.
2 Non-GAAP net income attributable to So-Young International
Inc. is defined as net income attributable to So-Young
International Inc. excluding share-based compensation expenses and
impairment of goodwill and intangible assets attributable to
So-Young International Inc. See “Reconciliation of GAAP and
Non-GAAP Results” at the end of this press release.
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