SoYoung Reports Q3 2020 Financial Results: Facilitated Transaction Value Exceeds RMB 1.1 Billion, Accelerating the Internal Circulation of the Aesthetic Medicine Industry

Nov 26, 2020 09:05 CST Updated 09:05

On November 25, 2020 (Beijing Time), New Oxygen Technology (NASDAQ: SY) released its financial report for the third quarter of 2020.

Financial report data shows that as of September 30, 2020, So-Young Inc.'s total revenue in the third quarter was RMB 359.6 million, a year-on-year increase of 18.9%. The non-GAAP net profit was RMB 26.4 million. The average monthly active users on So-Young's mobile platform reached 8.7 million, a year-on-year increase of 153.7%. The total number of paying users who booked services was 251,928, and the number of paying medical institutions was 4,096, a year-on-year increase of 26.8%. During this quarter, the total transaction value of medical aesthetic services facilitated by the So-Young platform exceeded RMB 1.1 billion. In the post-pandemic era, So-Young Technology has efficiently linked the supply and demand sides through precise user operations, merchant screening, and empowerment strategies, driving the acceleration of the internal circulation of the medical aesthetics industry.

Jin Xing, Chairman and CEO of New Oxygen Technology, stated: “As COVID-19 prevention and control in China have become normalized, the medical aesthetics and health industries have gradually recovered, enabling us to achieve robust performance in the third quarter. To solidify our position as the preferred platform for users and medical aesthetics professionals, we continue to enhance user fulfillment experiences and the overall user experience. We believe that through excellent management, strategic layout, and business innovation, we will further strengthen New Oxygen’s industry-leading position.”

Multi-tiered Content Supply and the Construction of a Trustworthy Ecosystem Mechanism Drive Rapid Growth in User Base

SoYoung’s robust growth in the third quarter was driven by strong performance within its leading “Media + Community + E-commerce” strategic framework. Notably, its rich content ecosystem, trustworthy screening system, and ecosystem-building mechanisms are accelerating user acquisition for SoYoung. Financial report data shows that in Q3 2020, SoYoung’s mobile average monthly active users (MAUs) reached 8.7 million, representing a year-on-year increase of 153.7%.

Currently, SoYoung’s original content new media matrix comprises six WeChat official accounts, 20 Weibo accounts, and 15 video columns. In the third quarter of 2020, the monthly peak view count across all platforms within SoYoung’s new media matrix exceeded 1.7 billion, representing a year-on-year increase of over 200%. The SoYoung community provides information and decision-making support throughout the entire patient journey—pre-procedure, intra-procedure, and post-procedure—for medical aesthetic services. Notably, “Beauty Diaries,” in which users personally author and authentically share their experiences and reflections on undergoing medical aesthetic treatments, have accumulated more than 3.5 million entries.

By recommending reliable physicians, providing multi-tiered content, and offering decision support systems, SoYoung is achieving significant growth in user base and engagement. Since July this year, SoYoung has integrated industry resources to curate the “Emerald Doctor List,” which screens for high-quality physicians using rigorous standards. The monthly page views for the profile pages of listed physicians increased by 40% compared to pre-listing levels, while live-streaming metrics for listed physicians in cities such as Beijing, Shenyang, and Xi’an reached up to 21.5 times their pre-listing figures. During the same period, SoYoung launched the “SoYoung Experience Officer” program, which focuses on experiencing and sharing high-quality medical aesthetic services. As of October this year, the program had attracted 481,000 registrations and generated nearly 8,500 high-quality articles.

Furthermore, AI technology plays an indispensable role in building SoYoung’s user service ecosystem, enhancing service experience and decision-making efficiency. Taking AI mini-programs as an example, SoYoung has developed more than ten tools, including Magic Mirror for facial analysis, skin detection, and post-operative communication, covering key stages throughout the medical aesthetics journey—pre-treatment, during treatment, and post-treatment—thereby promoting the digitalization of medical aesthetics services. In the first three quarters of 2020, the cumulative usage of SoYoung’s AI mini-programs exceeded 870 million times.

Surging Demand and Enhanced Transaction Capabilities Drive the Recovery of the Medical Aesthetics Industry

The flourishing of a user-centric community ecosystem has significantly spurred an explosion in user demand and enhanced the platform’s transaction capabilities. Financial report data shows that in Q3 2020, the total gross merchandise value (GMV) of medical aesthetic services facilitated by the New Oxygen platform reached RMB 1.1101 billion. During this year’s New Oxygen “11.11 Medical Aesthetics Carnival,” from October 14 to 24:00 on November 11, the platform’s total online GMV surged by 213% year-on-year. Furthermore, the surge in domestic consumer demand for medical aesthetics was also evident on the New Oxygen platform. Compared to the same period in 2019, during the “11.11 Medical Aesthetics Carnival,” the average daily number of users searching for hair transplant services increased by 665% year-on-year, while the average daily number of users adding private plastic surgery procedures to their shopping carts rose by 449% year-on-year.

Enhanced transaction capabilities have attracted more consumers and institutions to join the medical aesthetics transaction ecosystem built by So-Young. Financial report data shows that in Q3 2020, the total number of paying users for appointment services on the So-Young platform exceeded 250,000, with 4,096 paying medical institutions, representing a 26.8% year-over-year increase from the same period in 2019.

Yu Min, CFO of So-Young International, stated, “We have closely monitored the industry recovery and consumer confidence in our core target markets. In the third quarter, we capitalized on the post-pandemic rebound and are satisfied with our performance. We will continue to dedicate ourselves to optimizing resources to enhance user engagement, platform stickiness, and traffic growth, thereby providing genuine value-added support to medical aesthetics professionals and institutions. We believe that focusing on strengthening the So-Young brand and establishing the So-Young ecosystem as synonymous with trust and high-quality user experience is crucial for long-term sustainable growth.”

SoYoung’s unique medical aesthetics ecosystem platform model links medical aesthetics service providers on one hand and aggregates the most concentrated base of medical aesthetics consumers in China on the other, driving continuous improvements in industry efficiency. In the post-pandemic era, leading platform-based enterprises are playing an increasingly active role in boosting consumer demand and promoting the internal circulation of the industrial economy.