So-Young Reports Unaudited Third Quarter Financial Results
So-Young International Inc. (Nasdaq: SY) reported its third quarter 2021 financial results, achieving total revenues of RMB431.5 million (US$67.0 million), a 20.0% year-over-year increase. Net income surged 649.5% to RMB6.8 million (US$1.1 million), while non-GAAP net income rose 9.6% to RMB28.9 million (US$4.5 million). Despite a decline in average mobile MAUs to 8.0 million, the number of paying medical service providers grew 18.2% to 4,841. The Company anticipates fourth-quarter revenues between RMB430 million and RMB450 million, reflecting a potential increase of up to 6.0% compared to 2020.
- Total revenues grew to RMB431.5 million (US$67.0 million), a 20.0% increase year-over-year.
- Net income increased 649.5% to RMB6.8 million (US$1.1 million).
- Non-GAAP net income rose 9.6% to RMB28.9 million (US$4.5 million).
- Number of paying medical service providers grew 18.2% to 4,841.
- Average mobile MAUs declined to 8.0 million from 8.7 million year-over-year.
- Reservation services revenues decreased by 34.3% to RMB61.7 million (US$9.6 million) due to COVID-19 impacts.
BEIJING, Nov. 19, 2021 (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 third quarter ended September 30, 2021.
Third Quarter 2021 Financial Highlights
- Total revenues were RMB431.5 million (US
$67.0 million 1), an increase of20.0% from RMB359.6 million in the same period of 2020, in line with our previous guidance.
- Net income attributable to So-Young International Inc. was RMB6.8 million (US
$1.1 million ), an increase of649.5% from RMB0.9 million in the third quarter of 2020.
- Non-GAAP net income attributable to So-Young International Inc.2 was RMB28.9 million (US
$4.5 million ), an increase of9.6% from RMB26.4 million in the third quarter of 2020.
Third Quarter 2021 Operational Highlights
- Average mobile MAUs were 8.0 million, compared with 8.7 million in the third quarter of 2020.
- Number of paying medical service providers on So-Young’s platform were 4,841, an increase of
18.2% from 4,096 in the third quarter of 2020.
- Number of medical service providers subscribing to information services on So-Young’s platform were 2,242, compared with 2,146 in the third quarter of 2020.
- Total number of users purchasing reservation services were 174.2 thousand and the aggregate value of medical aesthetic treatment transactions facilitated by So-Young’s platform was RMB755.4 million.
Mr. Xing Jin, Co-Founder and Chief Executive Officer of So-Young, commented, “In the third quarter of 2021, we continued to execute our growth strategy and delivered solid performance despite the challenges and impact of COVID-19 in parts of China. Total revenues grew to RMB431.5 million, an increase of
Mr. Jin continued, “We made steady progress on our operations during the quarter. On the business front, our team worked tirelessly with institutions to increase brand endorsements on the platform and in an effort to improve conversion rates. On the non-surgical side, we worked to ensure consistent standardization of non-surgical procedures and services, improve our fulfilment services, and guarantee the authenticity of products on our platform for customers. Looking ahead, I’m confident that we are on track for rapid growth and building a competitive moat in the long term.”
Mr. Min Yu, Chief Financial Officer of So-Young, commented, “We achieved solid financial results with substantial profitability, which reflected the continuous optimization of our business model and effective cost control measures. Non-GAAP net income attributable to So-Young International Inc. was RMB28.9 million, an increase of
Third Quarter 2021 Financial Results
Revenues
Total revenues were RMB431.5 million (US
- Information services and other revenues were RMB369.7 million (US
$57.4 million ), an increase of39.2% from RMB265.7 million in the same period of 2020. Other revenues primarily consist of product sales revenue from Wuhan Miracle, which was RMB48.1 million (US$7.5 million ).
- Reservation services revenues were RMB61.7 million (US
$9.6 million ), a decrease of34.3% from RMB93.9 million in the same period of 2020. The decrease was primarily due to the resurgence of COVID-19 and the weaker-than-normal consumer sentiment which had a negative impact on our operations in several cities across the country.
Cost of Revenues
Cost of revenues were RMB89.6 million (US
Operating Expenses
Total operating expenses were RMB322.5 million (US
- Sales and marketing expenses were RMB190.7 million (US
$29.6 million ), a decrease of13.9% from RMB221.6 million in the third quarter of 2020. The decrease was primarily due to a decrease in expenses associated with branding and marketing activities. Sales and marketing expenses for the third quarter of 2021 included share-based compensation expenses of RMB2.2 million (US$0.3 million ), compared with RMB2.2 million in the corresponding period of 2020.
- General and administrative expenses were RMB54.7 million (US
$8.5 million ), an increase of8.7% from RMB50.3 million in the third quarter of 2020. The increase was primarily due to the consolidation of the general and administrative expenses of Wuhan Miracle. General and administrative expenses for the third quarter of 2021 included share-based compensation expenses of RMB10.0 million (US$1.6 million ), compared with RMB12.2 million in the corresponding period of 2020.
- Research and development expenses were RMB77.1 million (US
$12.0 million ), an increase of22.1% from RMB63.2 million in the third quarter of 2020. The increase was primarily due to the consolidation of the research and development expenses of Wuhan Miracle. Research and development expenses for the third quarter of 2021 included share-based compensation expenses of RMB5.1 million (US$0.8 million ), compared with RMB6.0 million in the corresponding period of 2020.
Income Tax Benefit/Expenses
Income tax expenses was RMB4.3 million (US
Net income attributable to So-Young International Inc.
Net income attributable to So-Young International Inc. was RM6.8 million (US
Non-GAAP net income attributable to So-Young International Inc.
Non-GAAP net income attributable to So-Young International Inc., which excludes the impact of share-based compensation expenses, was RMB28.9 million (US
Basic and Diluted Earnings per ADS
Basic and diluted income per ADS attributable to ordinary shareholders were RMB0.06 (US
Cash and Cash Equivalents, Restricted Cash and Term Deposits, Term Deposits and Short-Term Investments
As of September 30, 2021, cash and cash equivalents, restricted cash and term deposits, term deposits and short-term investments were RMB1,835.3 million (US
Business Outlook
For the fourth quarter of 2021, So-Young expects its total revenues to be between RMB430 million (US
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 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 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 Friday, November 19, 2021, 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/7179806.
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, November 26, 2021. The dial-in details are:
| International: | +61-2-8199-0299 |
| US: | +1-646-254-3697 |
| Passcode: | 7179806 |
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-Young
Investor Relations
Ms. Vivian Xu
Phone: +86-10-8790-2012
E-mail: ir@soyoung.com
Christensen
In China
Mr. Eric Yuan
Phone: +86-10-5900-1548
E-mail: Eyuan@christensenir.com
In US
Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: 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, 2020 | September 30, 2021 | September 30, 2021 | |||
| RMB | RMB | US$ | |||
| Assets | |||||
| Current assets: | |||||
| Cash and cash equivalents | 1,127,055 | 1,576,173 | 244,618 | ||
| Restricted cash and term deposits | 21,865 | 24,865 | 3,859 | ||
| Trade receivables | 52,871 | 90,271 | 14,010 | ||
| Inventory | - | 91,250 | 14,162 | ||
| Receivables from online payment platforms | 16,182 | 18,086 | 2,807 | ||
| Amounts due from related parties | 7,764 | 455 | 71 | ||
| Term deposits and short-term investments | 1,527,088 | 234,288 | 36,361 | ||
| Prepayment and other current assets | 43,190 | 95,472 | 14,817 | ||
| Total current assets | 2,796,015 | 2,130,860 | 330,705 | ||
| Non-current assets: | |||||
| Long-term investments | 166,100 | 253,373 | 39,323 | ||
| Intangible assets | 60,029 | 166,727 | 25,875 | ||
| Goodwill | 48,500 | 589,193 | 91,441 | ||
| Property and equipment, net | 29,830 | 126,582 | 19,645 | ||
| Deferred tax assets | 55,520 | 60,072 | 9,323 | ||
| Operating lease right-of-use assets | 120,140 | 101,438 | 15,743 | ||
| Other non-current assets | 15,878 | 168,144 | 26,096 | ||
| Total non-current assets | 495,997 | 1,465,529 | 227,446 | ||
| Total assets | 3,292,012 | 3,596,389 | 558,151 | ||
| Liabilities | |||||
| Current liabilities: | |||||
| Taxes payable | 60,070 | 62,481 | 9,696 | ||
| Contract liabilities | 135,385 | 162,449 | 25,212 | ||
| Salary and welfare payables | 95,758 | 131,306 | 20,378 | ||
| Amounts due to related parties | 2,404 | 739 | 115 | ||
| Accrued expenses and other current liabilities | 237,785 | 557,270 | 86,487 | ||
| Operating lease liabilities-current | 39,468 | 41,476 | 6,437 | ||
| Total current liabilities | 570,870 | 955,721 | 148,325 | ||
| Non-current liabilities: | |||||
| Operating lease liabilities-non current | 93,044 | 72,016 | 11,177 | ||
| Deferred tax liabilities | 8,522 | 30,461 | 4,727 | ||
| Total non-current liabilities | 101,566 | 102,477 | 15,904 | ||
| Total liabilities | 672,436 | 1,058,198 | 164,229 | ||
| Mezzanine equity | |||||
| Redeemable non-controlling interests | 23,205 | 19,461 | 3,020 | ||
| Total mezzanine equity | 23,205 | 19,461 | 3,020 | ||
SO-YOUNG INTERNATIONAL INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Continued)
(All amounts in thousands, except for share and per share data, unless otherwise noted)
| Shareholders’ equity: | ||||||||
| Treasury stock | - | (217,712 | ) | (33,788 | ) | |||
| Class A Ordinary shares (US | 224 | 229 | 36 | |||||
| Class B Ordinary shares (US | 37 | 37 | 6 | |||||
| Additional paid-in capital | 2,892,268 | 2,950,370 | 457,890 | |||||
| Statutory reserves | 10,562 | 10,562 | 1,639 | |||||
| Accumulated deficit | (254,228 | ) | (234,863 | ) | (36,450 | ) | ||
| Accumulated other comprehensive loss | (52,492 | ) | (67,080 | ) | (10,410 | ) | ||
| Total So-Young International Inc. shareholders’ equity | 2,596,371 | 2,441,543 | 378,923 | |||||
| Non-controlling interests | - | 77,187 | 11,979 | |||||
| Total shareholders’ equity | 2,596,371 | 2,518,730 | 390,902 | |||||
| Total liabilities, mezzanine equity and shareholders’ equity | 3,292,012 | 3,596,389 | 558,151 | |||||
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 | For the Nine Months Ended | ||||||||||||||||
| September 30, 2020 | September 30, 2021 | September 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2021 | ||||||||||||
| RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||||
| Revenues | |||||||||||||||||
| Information services and others | 265,654 | 369,713 | 57,378 | 626,178 | 1,008,260 | 156,479 | |||||||||||
| Reservation services | 93,925 | 61,737 | 9,582 | 244,175 | 234,680 | 36,423 | |||||||||||
| Total revenues | 359,579 | 431,450 | 66,960 | 870,353 | 1,242,940 | 192,902 | |||||||||||
| Cost of revenues | (54,743 | ) | (89,638 | ) | (13,912 | ) | (148,586 | ) | (200,799 | ) | (31,164 | ) | |||||
| Gross profit | 304,836 | 341,812 | 53,048 | 721,767 | 1,042,141 | 161,738 | |||||||||||
| Operating expenses: | |||||||||||||||||
| Sales and marketing expenses | (221,620 | ) | (190,740 | ) | (29,602 | ) | (515,919 | ) | (639,828 | ) | (99,300 | ) | |||||
| General and administrative expenses | (50,295 | ) | (54,691 | ) | (8,488 | ) | (134,099 | ) | (166,362 | ) | (25,819 | ) | |||||
| Research and development expenses | (63,150 | ) | (77,113 | ) | (11,968 | ) | (158,272 | ) | (219,048 | ) | (33,996 | ) | |||||
| Total operating expenses | (335,065 | ) | (322,544 | ) | (50,058 | ) | (808,290 | ) | (1,025,238 | ) | (159,115 | ) | |||||
| (Loss)/income from operations | (30,229 | ) | 19,268 | 2,990 | (86,523 | ) | 16,903 | 2,623 | |||||||||
| Other income/(expenses): | |||||||||||||||||
| Investment income | 4,680 | 2,272 | 353 | 10,469 | 8,004 | 1,242 | |||||||||||
| Interest income | 7,539 | 4,903 | 761 | 32,916 | 15,674 | 2,433 | |||||||||||
| Exchange losses | (551 | ) | (446 | ) | (69 | ) | (515 | ) | (4,799 | ) | (745 | ) | |||||
| Impairment of long-term investment | - | (17,850 | ) | (2,770 | ) | - | (17,850 | ) | (2,770 | ) | |||||||
| Share of losses of equity method investee | (1,330 | ) | (909 | ) | (141 | ) | (4,477 | ) | (776 | ) | (120 | ) | |||||
| Others, net | 4,535 | 2,932 | 455 | (2,491 | ) | 9,836 | 1,527 | ||||||||||
| (Loss)/income before tax | (15,356 | ) | 10,170 | 1,579 | (50,621 | ) | 26,992 | 4,190 | |||||||||
| Income tax benefit/(expenses) | 16,259 | (4,298 | ) | (667 | ) | 17,781 | (11,086 | ) | (1,721 | ) | |||||||
| Net income/(loss) | 903 | 5,872 | 912 | (32,840 | ) | 15,906 | 2,469 | ||||||||||
| Net loss attributable to noncontrolling interests | - | 896 | 139 | - | 3,459 | 537 | |||||||||||
| Net income/(loss) attributable to So-Young International Inc. | 903 | 6,768 | 1,051 | (32,840 | ) | 19,365 | 3,006 | ||||||||||
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 | For the Nine Months Ended | ||||||||||||||||
| September 30, 2020 | September 30, 2021 | September 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2021 | ||||||||||||
| RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||||
| Net income/(loss) per ordinary share | |||||||||||||||||
| Net earnings/(loss) per ordinary share attributable to ordinary shareholder - basic | 0.01 | 0.08 | 0.01 | (0.13 | ) | 0.24 | 0.04 | ||||||||||
| Net earnings/(loss) per ordinary share attributable to ordinary shareholder - diluted | 0.01 | 0.08 | 0.01 | (0.13 | ) | 0.23 | 0.04 | ||||||||||
| Net earnings/(loss) per ADS attributable to ordinary shareholders - basic (13 ADS represents 10 Class A ordinary shares) | 0.01 | 0.06 | 0.01 | (0.10 | ) | 0.18 | 0.03 | ||||||||||
| Net earnings/(loss) per ADS attributable to ordinary shareholders - diluted (13 ADS represents 10 Class A ordinary shares) | 0.01 | 0.06 | 0.01 | (0.10 | ) | 0.18 | 0.03 | ||||||||||
| Weighted average number of ordinary shares used in computing earnings/(loss) per share, basic* | 81,629,610 | 80,895,891 | 80,895,891 | 81,411,972 | 81,805,945 | 81,805,945 | |||||||||||
| Weighted average number of ordinary shares used in computing earnings/(loss) per share, diluted* | 84,069,327 | 81,471,931 | 81,471,931 | 81,411,972 | 82,954,414 | 82,954,414 | |||||||||||
| Share-based compensation expenses included in: | |||||||||||||||||
| Cost of revenues | (5,091 | ) | (4,814 | ) | (747 | ) | (13,287 | ) | (12,938 | ) | (2,008 | ) | |||||
| Sales and marketing expenses | (2,225 | ) | (2,245 | ) | (348 | ) | (4,528 | ) | (6,089 | ) | (945 | ) | |||||
| General and administrative expenses | (12,155 | ) | (10,032 | ) | (1,557 | ) | (34,690 | ) | (24,446 | ) | (3,794 | ) | |||||
| Research and development expenses | (6,021 | ) | (5,083 | ) | (789 | ) | (15,188 | ) | (13,763 | ) | (2,136 | ) | |||||
* 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, 2020 | September 30, 2021 | September 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2021 | ||||||||
| RMB | RMB | US$ | RMB | RMB | US$ | ||||||||
| GAAP (loss)/income from operations | (30,229 | ) | 19,268 | 2,990 | (86,523 | ) | 16,903 | 2,623 | |||||
| Add back: Shared-based compensation expenses | 25,492 | 22,174 | 3,441 | 67,693 | 57,236 | 8,883 | |||||||
| Non-GAAP (loss)/income from operations | (4,737 | ) | 41,442 | 6,431 | (18,830 | ) | 74,139 | 11,506 | |||||
| GAAP Net income/(loss) attributable to So-Young International Inc. | 903 | 6,768 | 1,051 | (32,840 | ) | 19,365 | 3,006 | ||||||
| Add back: Shared-based compensation expenses | 25,492 | 22,174 | 3,441 | 67,693 | 57,236 | 8,883 | |||||||
| Non-GAAP Net income attributable to So-Young International Inc. | 26,395 | 28,942 | 4,492 | 34,853 | 76,601 | 11,889 | |||||||
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 RMB6.4434 to US
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. See “Reconciliation of GAAP and Non-GAAP Results” at the end of this press release.
FAQ
What were the total revenues for So-Young International Inc. in Q3 2021?
How much net income did So-Young report for the third quarter of 2021?
What is the expected revenue guidance for So-Young in Q4 2021?
How did So-Young's MAUs change in Q3 2021 compared to the previous year?
