SoYoung Reports Record Q4 and Full-Year 2020 Financial Results with Mobile MAUs Reaching 8.9 Million, Up 142.3% Year-over-Year

On March 22, 2021 (Beijing Time), So-Young International Inc. (NASDAQ: SY), China’s largest internet-based medical aesthetics service platform, released its unaudited financial results for the fourth quarter and full year ended December 31, 2020.

Financial report data shows that in the fourth quarter of 2020, So-Young’s total revenue reached RMB 425 million, a year-on-year increase of 18.6%, marking the highest quarterly revenue since the company’s listing. The gross profit margin was 85.0%, an increase from 83.7% in the same period last year. Non-GAAP net profit amounted to RMB 62.2 million. The average monthly active users on mobile devices reached 8.9 million, a year-on-year increase of 142.3%. The number of paying medical institutions totaled 4,746, representing a year-on-year growth of 40.5%.

In 2020, a year impacted by the pandemic, New Oxygen Technology adhered to its user-centric strategy. By leveraging an authentic content ecosystem and technology-enabled tools to assist consumer decision-making, the company optimized the supply side through the careful selection of high-quality institutions, physicians, and products. This approach helped expand the reach of medical aesthetics consumption and drove counter-trend growth in its own performance. For the full year 2020, New Oxygen Technology reported total revenues of RMB 1.295 billion, representing a year-on-year increase of 12.4%. The year-on-year growth rate of average monthly active users exceeded 100% in each of the four quarters of 2020.

Amidst the trend of high gross margins and rapid growth in both user and institutional numbers, New Oxygen did not rest on short-term gains but instead continued to increase its investment to build core competencies in technology, brand, and talent. In 2020, New Oxygen’s R&D expenditure and personnel costs totaled RMB 230 million, accounting for approximately 18% of total revenue, representing a year-on-year increase of over 29%.

• Total revenue was RMB 424.6 million (USD 65.1 million), representing an 18.6% increase from RMB 358.2 million in the same period of 2019, in line with the company’s guidance.

  
  

• Net profit was RMB 37.7 million (USD 5.8 million).

  
  

• Non-GAAP net profit was RMB 62.2 million (USD 9.5 million).

• The average monthly active users (“MAU”) on SoYoung’s mobile platform reached 8.9 million, representing a 142.3% increase from 3.7 million in the same period of 2019.

  
  

• The number of paid medical institutions on the So-Young platform was 4,746, representing a 40.5% increase from 3,378 in the same period of 2019.

  
  

• The total number of paying users for appointment services was 194,769, and the total gross merchandise value (GMV) of medical aesthetic services facilitated by the So-Young platform amounted to RMB 969.3 million.

• Total revenue was RMB 1.295 billion (USD 198.5 million), representing a 12.4% increase from RMB 1.1516 billion in the same period of 2019.

  
  

• Net profit under non-GAAP was RMB 97 million (USD 14.9 million).

Jin Xing, Chairman and CEO of So-Young International Inc., stated, “Despite the challenges in 2020, we successfully concluded the year with robust performance in the fourth quarter, with revenue in line with the Company’s prior guidance. Throughout the year, we leveraged the platform’s high-quality content, technological capabilities, and the trust built over many years with users and medical aesthetic institutions to successfully implement several key initiatives. In the fourth quarter, user numbers maintained strong growth momentum, primarily driven by continuously enriched platform content and the launch of innovative services such as VR store tours and video consultations. The average monthly active users (MAU) on the mobile app reached 8.9 million this quarter, representing a year-over-year increase of 142.3%. The number of paying medical institutions on the So-Young platform stood at 4,746, a year-over-year increase of 40.5%.”

Jin Xing also stated, “Looking ahead to 2021, as our user base expands, we will continue to strengthen community content development to meet the diverse needs of our growing user base, particularly core medical aesthetics users. On the business front, we will further consolidate our strengths in traditional surgical procedures while seizing the significant opportunity presented by the rapid growth of non-surgical treatments this year. Finally, we will regularly upgrade our products and services to enhance user experience. Looking to the future, we will fully leverage our competitive advantages in content, technology, and user engagement, adopt a user-centric approach, deepen our integration into the industry value chain, and use medical aesthetics as an entry point to build the most trusted healthcare service platform.”

Yu Min, CFO of So-Young International Inc., stated, “In the fourth quarter of 2020, we achieved total revenues of RMB 424.6 million, representing an 18.6% year-over-year increase, primarily driven by the growth in the number of paying medical institutions on our platform. The gross margin for the quarter was 85.0%, remaining largely stable compared to 83.7% in the same period last year, reflecting the continuous optimization of our business model and effective cost control. We believe that focusing on enhancing the So-Young brand and establishing the So-Young ecosystem as synonymous with trust and high-quality user experience is crucial to consistently creating long-term value for our shareholders.”