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So-Young International Inc. (SY)
| Previous close | 12.07 |
| Open | 12.00 |
| Bid | 13.23 x 800 |
| Ask | 13.23 x 1100 |
| Day's range | 11.93 - 14.16 |
| 52-week range | 8.03 - 16.95 |
| Volume | 2,064,707 |
| Avg. volume | 789,259 |
| Market cap | 1.413B |
| Beta (5Y monthly) | N/A |
| PE ratio (TTM) | N/A |
| EPS (TTM) | N/A |
| Earnings date | 25-Nov-2020 |
| Forward dividend & yield | N/A (N/A) |
| Ex-dividend date | N/A |
| 1y target est | 15.87 |
- GlobeNewswire
So-Young Reports Third Quarter 2020 Unaudited Financial Results
BEIJING, Nov. 25, 2020 (GLOBE NEWSWIRE) -- 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 three months ended September 30, 2020. Third Quarter 2020 Financial Highlights * Total revenues were RMB359.6 million (US$53.0 million1), an increase of 18.9% from RMB302.4 million in the same period of 2019, in line with our previous guidance. * Net income was RMB0.9 million (US$0.1 million), compared with a net income RMB31.6 million in the same period of 2019. * Non-GAAP net income2 was RMB26.4 million (US$3.9 million), compared with a non-GAAP net income of RMB40.5 million in the same period of 2019.Third Quarter 2020 Operational Highlights * Average mobile MAUs were 8.7 million, an increase of 153.7% from 3.4 million in the third quarter of 2019. * Total number of users purchasing reservation service were 251,928 and the aggregate value of medical aesthetic treatment transactions facilitated by So-Young’s platform was RMB1,110.1 million. * Number of paying medical service providers on So-Young’s platform were 4,096, an increase of 26.8% from 3,230 in the third quarter of 2019.Mr. Xing Jin, Co-Founder and Chief Executive Officer of So-Young, commented, “We are pleased to report solid results for the third quarter, as the pandemic situation became more effectively controlled in China and the medical aesthetics and wellness industry is recovering. We also made significant progress in expanding our vibrant community of users and medical aesthetic professionals, where our strategy for engagement was simple: improve users’ trust in our platform and try to facilitate rational decision-making by providing reliable doctors, multi-layer content, and supportive medical treatment plans. Our efforts yielded results and during the quarter, mobile MAUs increased to 8.7 million, up 153.7% year over year, while the number of paying medical service providers on our platform increased to 4,096, up 26.8% year-over-year.”Mr. Jin added, “During the quarter, one of our main initiatives for driving user growth and engagement was the release of our second version of the Emerald Doctor lists. This feature is becoming a standard of quality in the medical aesthetics industry. Monthly visits to the homepages of listed doctors were up 40%. In addition, we’re addressing user education and building a content ecosystem through our So-Young Ambassadors program that generated nearly 8,500 premium articles since launch, with 481,000 sign-ups. We also reinforced our reputation as the first choice of both users and medical professionals among medical aesthetics platforms, especially for non-surgical treatments. To do this, we focused on improving performance in customer service and the overall user experience. We believe we have the right strategy to maintain our leadership, through the excellence of our management, strategy, and innovative approach.” Mr. Min Yu, Chief Financial Officer of So-Young, also commented, “We are closely monitoring the recovery of the industry and consumer sentiment across our core target market and are pleased with our results during the third quarter as we position the Company to capitalize on the eventual post-pandemic recovery. We will continue to focus on streamlining resources to drive engagement, platform stickiness and traffic growth while generating real value-added support for medical professionals and merchants. We believe that focused investments in elevating the So-Young brand and making our ecosystem synonymous with trust and high-quality user experiences is critical for creating sustainable long-term growth.”Third Quarter 2020 Financial ResultsRevenuesTotal revenues were RMB359.6 million (US$53.0 million), an increase of 18.9% from RMB302.4 million in the same period of 2019. The increase was primarily due to increases in number of paying medical service providers which gradually recovered operation after the COVID-19 pandemic becomes better controlled in China. * Information services revenues were RMB265.7 million (US$39.1 million), an increase of 23.9% from RMB214.3 million in the same period of 2019. The increase was mainly due to increases in average revenue per paying medical service provider. Total number of paying medical service providers subscribing to information services on So-Young’s platform were 2,146. * Reservation services revenues were RMB93.9 million (US$13.8 million), an increase of 6.6% from RMB88.1 million in the same period of 2019. The increase was primarily due to an increase in the number of purchasing users. Costs of RevenuesCosts of revenues were RMB54.7 million (US$8.1 million), an increase of 1.6% from RMB53.9 million in the third quarter of 2019. Cost of revenues included share-based compensation expenses of RMB5.1 million (US$0.8 million) during the third quarter of 2020, compared with RMB1.6 million in the corresponding period of 2019.Operating ExpensesTotal operating expenses were RMB335.1 million (US$49.4 million), an increase of 46.6% from RMB228.5 million in the third quarter of 2019. * Sales and marketing expenses were RMB221.6 million (US$32.6 million), an increase of 41.5% from RMB156.6 million in the third quarter of 2019. The increase was primarily due to an increase in expenses associated with branding and user acquisition initiatives and payroll costs due to increased number of employees in the business development team. Sales and marketing expenses for the third quarter of 2020 included share-based compensation expenses of RMB2.2 million (US$0.3 million), compared with RMB1.1 million in the corresponding period of 2019. * General and administrative expenses were RMB50.3 million (US$7.4 million), an increase of 55.4% from RMB32.4 million in the third quarter of 2019. The increase was primarily due to an increase in payroll costs associated with the expansion of administrative employees. General and administrative expenses for the third quarter of 2020 included share-based compensation expenses of RMB12.2 million (US$1.8 million), compared with RMB6.4 million in the corresponding period of 2019. * Research and development expenses were RMB63.2 million (US$9.3 million), an increase of 59.7% from RMB39.5 million in the third quarter of 2019. The increase was primarily attributable to an increase in payroll costs. Research and development expenses for the third quarter of 2020 included share-based compensation expenses of RMB6.0 million (US$0.9 million). Income Tax (Expenses)/BenefitIncome tax benefit was RMB16.3 million (US$2.4 million), compared with a RMB2.9 million income tax expenses in the same period of 2019. The income tax benefit was derived from a change in the preferential income tax rate of one of So-Young's subsidiaries which resulted in a refund of RMB16.4 million (US$2.4 million) for tax paid in previous periods.Net incomeNet income was RMB0.9 million (US$0.1 million), compared with a net income RMB31.6 million in the third quarter of 2019.Non-GAAP net incomeNon-GAAP net income, which excludes the impact of share-based compensation expenses was RMB26.4 million (US$3.9 million), compared with RMB40.5 million non-GAAP net income in the same period of 2019.Basic and Diluted Earnings per ADSBasic and diluted income per ADS attributable to ordinary shareholders were RMB0.01 (US$0.0015) and RMB0.01 (US$0.0015), compared with basic and diluted earnings per ADS attributable to ordinary shareholders of RMB0.31 and RMB0.29 in the same period of 2019.Cash and Cash Equivalents, Restricted Cash and Term Deposits, Term Deposits and Short-Term InvestmentsAs of September 30, 2020, cash and cash equivalents, restricted cash and term deposits, term deposits and short-term investments were RMB2,809.7 million (US$413.8 million), compared with RMB2,844.0 million as of December 31, 2019.Business OutlookFor the fourth quarter of 2020, So-Young expects total revenues to be between RMB420 million (US$61.9 million) and RMB450 million (US$66.3 million), representing a 17.3% to 25.6% increase from the same period in 2019. The above outlook is based on the current market conditions and reflects the Company’s preliminary estimates of market and operating conditions, and customer demand, particularly in view of the potential continuing impact of the COVID-19, the effects of which are difficult to analyze and predict, which are all subject to change.Non-GAAP Financial MeasuresTo supplement the financial measures prepared in accordance with generally accepted accounting principles in the United States, or GAAP, this press release presents non-GAAP income from operations and non-GAAP net income by excluding share-based compensation expenses from income from operations and net income, 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 and 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 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.Conference Call Information So-Young’s management will hold an earnings conference call on Wednesday, November 25, 2020, at 7:00 AM U.S. Eastern Time (8:00 PM on the same day, Beijing/Hong Kong Time). Participants can register for the conference call by navigating to https://apac.directeventreg.com/registration/event/2689544.Once preregistration has been completed, participants will receive dial-in numbers, an event passcode, and a unique registrant ID.To join the conference, please dial the number you receive, enter the event passcode followed by your unique registrant ID, and you will be joined to the conference instantly.A telephone replay will be available two hours after the conclusion of the conference call through 7:59 AM U.S. Eastern Time, December 3, 2020. The dial-in details are:International: +61-2-8199-0299 US:+1-646-254-3697 Passcode:2689544 Additionally, a live and archived webcast of this conference call will be available at http://ir.soyoung.com.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 Statement This 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 third 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-YoungInvestor Relations Ms. Vivian XU Phone: +86-10-8790-2012 E-mail: ir@soyoung.comChristensenIn China Mr. Eric Yuan Phone: +86-10-5900-1548 E-mail: Eyuan@christensenir.comIn US Ms. Linda Bergkamp Phone: +1-480-614-3004 Email: lbergkamp@christensenir.com____________________________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 RMB6.7896 to US$1.00, which was the U.S. dollars middle rate announced by the Board of Governors of the Federal Reserve System of the United States on September 30, 2020.2 Non-GAAP net income is defined as net income excluding share-based compensation expenses. See “Reconciliation of GAAP and Non-GAAP Results” at the end of this press release. SO-YOUNG INTERNATIONAL INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands, except for share and per share data) As of December 31, 2019 September 30, 2020 September 30, 2020 RMB RMB US$ Assets Current assets: Cash and cash equivalents884,676 552,153 81,323 Restricted cash and term deposits16,509 25,176 3,709 Trade receivables26,110 46,110 6,791 Receivables from online payment platforms13,429 15,416 2,271 Amounts due from related parties5,815 8,186 1,206 Term deposits and short-term investments1,942,860 2,232,412 328,799 Prepayment and other current assets67,628 51,427 7,574 Total current assets2,957,027 2,930,880 431,673 Non-current assets: Long-term investments45,980 41,235 6,073 Intangible assets726 41,166 6,063 Property and equipment, net32,341 32,181 4,740 Deferred tax assets35,208 37,708 5,554 Operating lease right-of-use assets144,488 127,885 18,835 Prepayment for long-term investment- 14,380 2,118 Other non-current assets14,184 14,737 2,171 Total non-current assets272,927 309,292 45,554 Total assets3,229,954 3,240,172 477,227 Liabilities Current liabilities: Taxes payable65,605 39,289 5,788 Contract liabilities93,725 116,627 17,177 Salary and welfare payables100,676 77,880 11,470 Amounts due to related parties2,620 2,379 350 Accrued expenses and other current liabilities166,088 228,912 33,716 Operating lease liabilities-current37,799 39,696 5,847 Total current liabilities466,513 504,783 74,348 Non-current liabilities: Operating lease liabilities-non current120,803 102,124 15,041 Deferred tax liabilities- 8,797 1,296 Total non-current liabilities120,803 110,921 16,337 Total liabilities587,316 615,704 90,685 Shareholders’ equity: Class A Ordinary shares (US$ 0.0005 par value; 750,000,000 shares authorized as of December 31, 2019 and September 30, 2020; 69,371,718 and 70,130,618 shares issued and outstanding as of December 31, 2019 and September 30, 2020, respectively)221 224 33 Class B Ordinary shares (US$ 0.0005 par value; 20,000,000 shares authorized as of December 31, 2019 and September 30, 2020; 12,000,000 shares issued and outstanding as of December 31, 2019 and September 30, 2020)37 37 5 Additional paid-in capital2,799,336 2,867,740 422,372 Statutory reserves10,562 10,562 1,556 Accumulated deficit(259,251) (292,875) (43,136) Accumulated other comprehensive income91,733 38,780 5,712 Total shareholders’ equity2,642,638 2,624,468 386,542 Total liabilities and shareholders’ equity3,229,954 3,240,172 477,227 SO-YOUNG INTERNATIONAL INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) (Amounts in thousands, except for share and per share data) For the Three Months Ended For the Nine Months Ended September 30, 2019 September 30, 2020 September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2020 RMB RMB US$ RMB RMB US$ Revenues Information services214,349 265,654 39,127 568,905 626,178 92,226 Reservation services88,076 93,925 13,833 224,558 244,175 35,963 Total revenues302,425 359,579 52,960 793,463 870,353 128,189 Cost of revenues(53,899) (54,743) (8,063) (140,119) (148,586) (21,884) Gross profit 248,526 304,836 44,897 653,344 721,767 106,305 Operating expenses: Sales and marketing expenses(156,583) (221,620) (32,641) (337,881) (515,919) (75,987) General and administrative expenses(32,359) (50,295) (7,408) (124,492) (134,099) (19,751) Research and development expenses(39,545) (63,150) (9,301) (122,559) (158,272) (23,311) Total operating expenses(228,487) (335,065) (49,350) (584,932) (808,290) (119,049) Income/(loss) from operations20,039 (30,229) (4,453) 68,412 (86,523) (12,744) Other income/(expenses): Investment income1,082 4,680 689 4,554 10,469 1,542 Interest income15,685 7,539 1,110 31,528 32,916 4,848 Exchange losses(5,694) (551) (81) (3,676) (515) (76) Share of losses of equity method investee- (1,330) (196) - (4,477) (659) Others, net3,425 4,535 668 26,687 (2,491) (367) Income/(loss) before tax34,537 (15,356) (2,263) 127,505 (50,621) (7,456) Income tax (expenses)/benefit(2,937) 16,259 2,395 (20,726) 17,781 2,619 Net income/(loss)31,600 903 132 106,779 (32,840) (4,837) Accretions of convertible redeemable preferred shares to redemption value- - - (50,219) - - Net income/(loss) attributable to ordinary shareholders of the Company31,600 903 132 56,560 (32,840) (4,837) SO-YOUNG INTERNATIONAL INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) (Continued) (Amounts in thousands, except for share and per share data) For the Three Months Ended For the Nine Months Ended September 30, 2019 September 30, 2020 September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2020 RMB RMB US$ RMB RMB US$ Net income/(loss) per ordinary share Net earnings/(loss) per ordinary share attributable to ordinary shareholder - basic0.40 0.01 0.00 1.07 (0.13) (0.02) Net earnings/(loss) per ordinary share attributable to ordinary shareholder - diluted0.38 0.01 0.00 1.00 (0.13) (0.02) Net earnings/(loss) per ADS attributable to ordinary shareholders - basic (13 ADS represents 10 Class A ordinary shares)0.31 0.01 0.00 0.82 (0.10) (0.01) Net earnings/(loss) per ADS attributable to ordinary shareholders - diluted (13 ADS represents 10 Class A ordinary shares)0.29 0.01 0.00 0.77 (0.10) (0.01) Weighted average number of ordinary shares used in computing earnings/(loss) per share, basic*78,613,419 81,629,610 81,629,610 52,800,398 81,411,972 81,411,972 Weighted average number of ordinary shares used in computing earnings/(loss) per share, diluted*82,888,045 84,069,327 84,069,327 56,764,774 82,954,264 82,954,264 Share-based compensation expenses included in: Cost of revenues(1,591) (5,091) (750) (8,700) (13,287) (1,957) Sales and marketing expenses(1,097) (2,225) (328) (6,110) (4,528) (667) General and administrative expenses(6,415) (12,155) (1,790) (56,505) (34,690) (5,109) Research and development expenses208 (6,021) (887) (16,467) (15,188) (2,237) * 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 For the Nine Months Ended September 30, 2019 September 30, 2020 September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2020 RMB RMB US$ RMB RMB US$ GAAP income/(loss) from operations20,039 (30,229) (4,453) 68,412 (86,523) (12,744) Add back: Shared-based compensation expenses8,895 25,492 3,755 87,782 67,693 9,970 Non-GAAP income/(loss) from operations28,934 (4,737) (698) 156,194 (18,830) (2,774) GAAP Net income/(loss)31,600 903 132 106,779 (32,840) (4,837) Add back: Shared-based compensation expenses8,895 25,492 3,755 87,782 67,693 9,970 Non-GAAP net income40,495 26,395 3,887 194,561 34,853 5,133
- GlobeNewswire
So-Young to Report Third Quarter 2020 Financial Results on November 25, 2020
BEIJING, Nov. 16, 2020 (GLOBE NEWSWIRE) -- 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 that it will report its financial results for the third quarter ended September 30, 2020, before U.S. markets open on November 25, 2020. So-Young's management will hold an earnings conference call on Wednesday, November 25, 2020, at 7:00 AM U.S. Eastern Time (8:00 PM on the same day, Beijing/Hong Kong Time).Due to the outbreak of COVID-19, operator assisted conference calls are not available at the moment. All participants must preregister online prior to the call to receive the dial-in details.Conference Call PreregistrationParticipants can register for the conference call by navigating to https://apac.directeventreg.com/registration/event/2689544. Once preregistration has been completed, participants will receive dial-in numbers, an event passcode, and a unique registrant ID.To join the conference, please dial the number you receive, enter the event passcode followed by your unique registrant ID, and you will be joined to the conference instantly.A telephone replay will be available two hours after the conclusion of the conference call through 7:59 AM U.S. Eastern Time, December 3, 2020. The dial-in details are:International:+61-2-8199-0299 US: +1-646-254-3697 Passcode:2689544 Additionally, a live and archived webcast of this conference call will be available at http://ir.soyoung.com. About So-YoungSo-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.For more information, please contact:So-YoungInvestor Relations Ms. Vivian XU Phone: +86-10-8790-2012 E-mail: ir@soyoung.comChristensenIn China Mr. Eric Yuan Phone: +86-10-5900-1548 E-mail: Eyuan@christensenir.comIn US Ms. Linda Bergkamp Phone: +1-480-614-3004 Email: lbergkamp@christensenir.com
- GlobeNewswire
So-Young Reports Second Quarter 2020 Unaudited Financial Results
BEIJING, Aug. 27, 2020 (GLOBE NEWSWIRE) -- 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 three months ended June 30, 2020. Second Quarter 2020 Financial Highlights * Total revenues were RMB328.2 million (US$46.5 million1), an increase of 15.2% from RMB285.0 million in the same period of 2019, in line with our previous guidance. * Net income was RMB2.1 million (US$0.3 million), compared with a net income RMB29.3 million in the same period of 2019. * Non-GAAP net income2 was RMB30.1 million (US$4.3 million), compared with a non-GAAP net income of RMB102.2 million in the same period of 2019.Second Quarter 2020 Operational Highlights * Average mobile MAUs were 6.8 million, an increase of 173.7% from 2.5 million in the second quarter of 2019. * Total number of users purchasing reservation service were 170,553 and the aggregate value of medical aesthetic treatment transactions facilitated by So-Young’s platform was RMB939.6 million. * Number of paying medical service providers on So-Young’s platform were 3,735, an increase of 18.3% from 3,157 in the second quarter of 2019.Recent Updates * In May, So-Young launched the So-Young Charity Fund and the first phase sized up to RMB10 million in total. Together with the China Plastic and Aesthetic Association, the Company continued to provide support for doctors, information, funds, education, psychological counseling among other support for people who have been injured by medical accidents or congenital deformities.Mr. Xing Jin, Co-Founder and Chief Executive Officer of So-Young, commented, “Despite ongoing weaker-than-normal consumer sentiment and restrictions on general mobility in parts of China as a result of the outbreak of COVID-19, we made significant progress in expanding our vibrant community of users and medical aesthetic professionals and driving traffic through our platform. We grew our community to an average of mobile MAUs of 6.8 million, an increase of 173.7% year-over-year from 2.5 million during the same period of 2019.”Mr. Jin added, “We focused on two core initiatives to drive our user growth and engagement during the quarter. First, we made great progress in increasing the trust between users and our platform by rolling out the preferred doctor lists, what we call “Emerald Doctor Lists.” Second, we expanded our community of users and medical aesthetic professionals through consistent content upgrades, including optimizing our live video diagnosis service and launching the “So-Young Ambassador” project, which generated a warm response within our community. Looking ahead, as our platform continues to provide an open, diversified and trustworthy ecosystem for our users and medical aesthetic professionals, we firmly believe that we can further increase our market share in the medical aesthetics industry over the long term.”“We continued to focus our resources on enhancing our community’s stickiness and elevating the So-Young brand to expand our addressable market,” commented Mr. Min Yu, Chief Financial Officer of So-Young. “In terms of commercialization, we officially launched a membership service for small-to-medium service providers during the quarter. Combined with our existing services and aligned operations, we are confident that we will be able to maintain our healthy growth momentum and generate long-term value for our shareholders.”Second Quarter 2020 Financial ResultsRevenuesTotal revenues were RMB328.2 million (US$46.5 million), an increase of 15.2% from RMB285.0 million in the same period of 2019. The increase was primarily due to increases in number of paying medical service providers which gradually recovered operation after the COVID-19 pandemic becomes better controlled in China. * Information services revenues were RMB234.5 million (US$33.2 million), an increase of 10.6% from RMB212.0 million in the same period of 2019. The increase was mainly due to increases in average revenue per medical service provider. Total number of medical service providers subscribing to information services on So-Young’s platform were 2,056. * Reservation services revenues were RMB93.7 million (US$13.3 million), an increase of 28.4% from RMB73.0 million in the same period of 2019. The increase was primarily due to successful conducting the 6.6 Shopping Festival in June, which captured most users with interests in medical aesthetic consumption. Costs of RevenuesCosts of revenues were RMB50.7 million (US$7.2 million), an increase of 1.9% from RMB49.8 million in the second quarter of 2019. Cost of revenues included share-based compensation expenses of RMB6.0 million (US$0.8 million) during the second quarter of 2020, compared with RMB6.8 million in the corresponding period of 2019.Operating ExpensesTotal operating expenses were RMB287.4 million (US$40.7 million), an increase of 27.8% from RMB224.8 million in the second quarter of 2019. * Sales and marketing expenses were RMB185.2 million (US$26.2 million), an increase of 75.0% from RMB105.8 million in the second quarter of 2019. The increase was primarily due to an increase in expenses associated with marketing campaigns and user acquisition initiatives. Sales and marketing expenses for the second quarter of 2020 included share-based compensation expenses of RMB1.6 million (US$0.2 million), compared with RMB4.5 million in the corresponding period of 2019. * General and administrative expenses were RMB49.8 million (US$7.1 million), a decrease of 25.9% from RMB67.3 million in the second quarter of 2019. General and administrative expenses for the second quarter of 2020 included share-based compensation expenses of RMB14.2 million (US$2.0 million), compared with RMB45.4 million in the corresponding period of 2019. The decrease in share-based compensation expenses was primarily due to recognition of share-based compensation expenses during the second quarter of 2019 related to historical employee options granted, which were contingent upon the completion of the Company’s initial public offering. * Research and development expenses were RMB52.3 million (US$7.4 million), an increase of 1.3% from RMB51.7 million in the second quarter of 2019. The increase was primarily a result of costs associated with increased hiring to support product development, which is in line with the Company’s strategy of strengthening its technology and big data analysis capabilities. Research and development expenses for the second quarter of 2020 included share-based compensation expenses of RMB6.2 million (US$0.9 million), compared with RMB16.1 million in the corresponding period of 2019. Income Tax ExpensesIncome tax expense was RMB2.8 million (US$0.4 million), compared with a RMB10.8 million income tax expense in the same period of 2019, primarily due to the decrease in taxable income during the second quarter of 2020.Net incomeNet income was RMB2.1 million (US$0.3 million), compared with a net income RMB29.3 million in the second quarter of 2019.Non-GAAP net incomeNon-GAAP net income, which excludes the impact of share-based compensation expenses was RMB30.1 million (US$4.3 million), compared with RMB102.2 million non-GAAP net income in the same period of 2019.Basic and Diluted Earnings per ADSBasic and diluted income per ADS attributable to ordinary shareholders were RMB0.02 (US$0.00) and RMB0.02 (US$0.00), compared with basic and diluted earnings per ADS attributable to ordinary shareholders of RMB0.22 and RMB0.21 in the same period of 2019.Cash and Cash Equivalents, Restricted Cash and Term Deposits and Short-Term InvestmentsAs of June 30, 2020, the Company had cash and cash equivalents, restricted cash and term deposits and short-term investments of RMB2,883.2 million (US$408.1 million), compared with RMB2,844.0 million as of December 31, 2019. The increase was primarily due to the cash generated from operating activities during the second quarter.Business OutlookFor the third quarter of 2020, So-Young expects total revenues to be between RMB340 million (US$48.1 million) and RMB370 million (US$52.4 million), representing a 12.4% to 22.3% increase from the same period in 2019. The above outlook is based on the current market conditions and reflects the Company’s preliminary estimates of market and operating conditions, and customer demand, particularly in view of the potential impact of the COVID-19, the effects of which are difficult to analyze and predict, which are all subject to change.Non-GAAP Financial MeasuresTo supplement the financial measures prepared in accordance with generally accepted accounting principles in the United States, or GAAP, this press release presents non-GAAP income from operations and non-GAAP net income by excluding share-based compensation expenses from income from operations and net income, 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 and 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 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.Conference Call Information So-Young’s management will hold an earnings conference call on Thursday, August 27, 2020, at 7:30 AM U.S. Eastern Time (7:30 PM on the same day, Beijing/Hong Kong Time). Participants can register for the conference call by navigating to http://apac.directeventreg.com/registration/event/1179314.Once preregistration has been completed, participants will receive dial-in numbers, an event passcode, and a unique registrant ID.To join the conference, please dial the number you receive, enter the event passcode followed by your unique registrant ID, and you will be joined to the conference instantly.A telephone replay will be available two hours after the conclusion of the conference call through 9:59 AM U.S. Eastern Time, September 4, 2020. The dial-in details are:International:+61-2-8199-0299 US:+1-646-254-3697 Passcode:1179314 Additionally, a live and archived webcast of this conference call will be available at http://ir.soyoung.com.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 Statement This 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 third 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-YoungInvestor Relations Ms. Vivian XU Phone: +86-10-8790-2012 E-mail: ir@soyoung.comChristensenIn China Mr. Eric Yuan Phone: +86-10-5900-1548 E-mail: Eyuan@christensenir.comIn US Ms. Linda Bergkamp Phone: +1-480-614-3004 Email: lbergkamp@christensenir.com As of December 31, 2019 June 30, 2020 June 30, 2020 RMB RMB US$ Assets Current assets: Cash and cash equivalents884,676 1,574,120 222,802 Restricted cash16,509 16,003 2,265 Trade receivables26,110 39,288 5,561 Receivables from online payment platforms13,429 16,359 2,315 Amounts due from related parties5,815 10,573 1,497 Term deposits and short-term investments1,942,860 1,293,093 183,025 Prepayment and other current assets67,628 49,326 6,983 Total current assets2,957,027 2,998,762 424,448 Non-current assets: Long-term investments45,980 42,878 6,069 Intangible assets726 42,289 5,986 Property and equipment, net32,341 31,838 4,506 Deferred tax assets35,208 37,708 5,337 Operating lease right-of-use assets144,488 135,398 19,164 Other non-current assets14,184 14,651 2,074 Total non-current assets272,927 304,762 43,136 Total assets3,229,954 3,303,524 467,584 Liabilities Current liabilities: Taxes payable65,605 39,145 5,541 Contract liabilities93,725 96,873 13,711 Salary and welfare payables100,676 90,414 12,796 Amounts due to related parties2,620 2,300 326 Accrued expenses and other current liabilities166,088 226,159 32,012 Operating lease liabilities-current37,799 44,276 6,267 Total current liabilities466,513 499,167 70,653 Non-current liabilities: Operating lease liabilities-non current120,803 111,383 15,765 Deferred tax liabilities- 9,072 1,284 Total non-current liabilities120,803 120,455 17,049 Total liabilities587,316 619,622 87,702 Shareholders’ equity: Class A Ordinary shares (US$ 0.0005 par value; 750,000,000 shares authorized as of December 31, 2019 and June 30, 2020; 69,371,718 and 69,962,924 shares issued and outstanding as of December 31, 2019 and June 30, 2020, respectively)221 224 32 Class B Ordinary shares (US$ 0.0005 par value; 20,000,000 shares authorized as of December 31, 2019 and June 30, 2020; 12,000,000 shares issued and outstanding as of December 31, 2019 and June 30, 2020)37 37 5 Additional paid-in capital2,799,336 2,842,132 402,278 Statutory reserves10,562 10,562 1,495 Accumulated deficit(259,251) (293,778) (41,582) Accumulated other comprehensive income91,733 124,725 17,654 Total shareholders’ equity2,642,638 2,683,902 379,882 Total liabilities and shareholders’ equity3,229,954 3,303,524 467,584 For the Three Months Ended For the Six Months Ended June 30, 2019 June 30, 2020 June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2020 RMB RMB US$ RMB RMB US$ Revenues Information services212,004 234,512 33,193 354,556 360,524 51,029 Reservation services72,981 93,708 13,264 136,482 150,250 21,267 Total revenues284,985 328,220 46,457 491,038 510,774 72,296 Cost of revenues(49,803) (50,744) (7,182) (86,220) (93,843) (13,283) Gross profit 235,182 277,476 39,275 404,818 416,931 59,013 Operating expenses: Sales and marketing expenses(105,800) (185,182) (26,211) (181,298) (294,299) (41,655) General and administrative expenses(67,305) (49,849) (7,056) (92,133) (83,804) (11,862) Research and development expenses(51,669) (52,325) (7,406) (83,014) (95,122) (13,464) Total operating expenses(224,774) (287,356) (40,673) (356,445) (473,225) (66,981) Income/(loss) from operations10,408 (9,880) (1,398) 48,373 (56,294) (7,968) Other income/(expenses): Investment income1,192 2,814 398 3,472 5,789 819 Interest income10,392 11,785 1,668 15,843 25,377 3,592 Exchange (losses)/gains(4,278) (27) (4) 2,018 36 5 Share of losses of equity method investee- (1,395) (197) - (3,147) (445) Others, net22,322 1,619 229 23,262 (7,026) (994) Income/(loss) before tax40,036 4,916 696 92,968 (35,265) (4,991) Income tax (expenses)/benefit(10,762) (2,776) (393) (17,789) 1,522 215 Net income/(loss)29,274 2,140 303 75,179 (33,743) (4,776) Accretions of convertible redeemable preferred shares to redemption value(12,880) - - (50,219) - - Net income/(loss) attributable to ordinary shareholders of the Company16,394 2,140 303 24,960 (33,743) (4,776) For the Three Months Ended For the Six Months Ended June 30, 2019 June 30, 2020 June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2020 RMB RMB US$ RMB RMB US$ Net income/(loss) per ordinary share Net earnings/(loss) per ordinary share attributable to ordinary shareholder - basic0.29 0.03 0.00 0.63 (0.42) (0.06) Net earnings/(loss) per ordinary share attributable to ordinary shareholder - diluted0.27 0.03 0.00 0.57 (0.42) (0.06) Net earnings/(loss) per ADS attributable to ordinary shareholders - basic (13 ADS represents 10 Class A ordinary shares)0.22 0.02 0.00 0.48 (0.32) (0.05) Net earnings/(loss) per ADS attributable to ordinary shareholders - diluted (13 ADS represents 10 Class A ordinary shares)0.21 0.02 0.00 0.44 (0.32) (0.05) Weighted average number of ordinary shares used in computing earnings/(loss) per share, basic*56,496,834 81,489,978 81,489,978 39,893,887 81,303,153 81,303,153 Weighted average number of ordinary shares used in computing earnings/(loss) per share, diluted*60,744,127 83,677,136 83,677,136 43,703,139 81,303,153 81,303,153 Share-based compensation expenses included in: Cost of revenues(6,827) (5,986) (847) (7,109) (8,196) (1,160) Sales and marketing expenses(4,527) (1,583) (224) (5,013) (2,303) (326) General and administrative expenses(45,424) (14,198) (2,010) (50,090) (22,535) (3,190) Research and development expenses(16,144) (6,172) (874) (16,675) (9,167) (1,298) * 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. For the Three Months Ended For the Six Months Ended June 30, 2019 June 30, 2020 June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2020 RMB RMB US$ RMB RMB US$ GAAP income/(loss) from operations10,408 (9,880) (1,398) 48,373 (56,294) (7,968) Add back: Shared-based compensation expenses72,922 27,939 3,955 78,887 42,201 5,974 Non-GAAP income/(loss) from operations83,330 18,059 2,557 127,260 (14,093) (1,994) GAAP Net income/(loss)29,274 2,140 303 75,179 (33,743) (4,776) Add back: Shared-based compensation expenses72,922 27,939 3,955 78,887 42,201 5,974 Non-GAAP net income102,196 30,079 4,258 154,066 8,458 1,198 __________________________________________________________________________________________________________________________________________________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 RMB 7.0651 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 June 30, 2020.2 Non-GAAP net income is defined as net income excluding share-based compensation expenses. See “Reconciliation of GAAP and Non-GAAP Results” at the end of this press release.
