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Jun 8, 2020 · ikanchai
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May 21, 2020 · zhitongcaijing
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May 21, 2020 · zhitongcaijing

Canaccord Genuity Remains a Buy on So-Young

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May 21, 2020 · zhitongcaijing
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May 21, 2020 · zhitongcaijing

So-Young Gets a Buy Rating from Needham

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May 20, 2020 · JRJ
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May 20, 2020 · So Young
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May 20, 2020 · JRJ
News EO
May 18, 2020
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News EO
May 18, 2020

So-Young Reports Q1 2020 Results – Monthly Active Users Up 116.8%

► Information services are the most significant income, occupying 69% of the total. ► Marketing campaigns and user acquisition initiatives expenses increased a lot. On May 18, So-Young International (SY:NASDAQ) released its first-quarter financial report for 2020. The data shows that, as of March 31, 2020, its revenue was CNY 182.6 million (USD 25.68 million), exceeding the company’s expectations of CNY 160 million (USD 22.50 million) to CNY 180 million (USD 25.32 million). At the same time, it was higher than Bloomberg’s expectation of CNY 176 million (USD 24.75 million). The first quarter’s net loss increased year-on-year. The number was CNY 35.9 million (USD 5.05 million), compared with a net income of CNY 45.9 million (USD 6.46 million) in the same period for 2019. Users and medical service providers gathered more on this cosmetic surgery platform. Average mobile MAUs (Monthly Active Users) were 4.17 million, an increase of 116.8% from 1.92 million in the same period of 2019. The number of paying medical service providers on So-Young’s platform was 3,295, a year-on-year increase of 22.0%. The number of medical service providers subscribing to information services on So -Young was 1,862, representing a slight increase from 1,853 at the same time in 2019. Mr. Xing Jin, Co-Founder and Chief Executive Officer of So-Young, commented, “Our strategic focus on enhancing engagement expanded our vibrant community of users and medical aesthetic professionals. We are using a series of creative and incentivizing promotion plans, working more closely with medical aesthetic influencers to generate valuable content.” According to the report, information services are it’s most significant revenue resource, occupying 69% of the total, a decrease of 12% year-on-year. Another reservation service obtains 30.94% of the total, the total number of users purchasing reservation services was 77.5 thousand. Sales and marketing expenses increased by 45% year-on-year, consisting of 58.69% of total operating expenses. The increase was primarily due to the rise in costs associated with marketing campaigns and user acquisition initiatives. As for other parts of costs, they all increased due to personal related expenses and the hiring to support product development. According to iiMedia data (in Chinese), since 2015, the market scale of China’s medical cosmetology has been overgrowing. Now China has become the world's third-largest medical and beauty market. It is expected that by 2020, the scale of China’s cosmetology industry will reach 315 billion. Mr. Min Yu, Chief Financial Officer of So-Young said, “We believe that our strategic investments and expenditure in the first quarter will significantly improve the stickiness of our platform. Further, we wish to enhance the quality of our rich content portfolio and better leverage synergies created across our community. We are well-positioned to capitalize on a rebound in macroeconomic conditions, and the drivers of our long-term business growth remain very strong.”

News EO
Mar 24, 2020
report
News EO
Mar 24, 2020

So-Young Publishes 2019 Q4 Financial Report – Net Profits Up by 71.4%

On March 23, So-Young (SY:NASDAQ) published financial results for the fourth quarter of 2019. The report shows that, as of December 31, 2019, the company's fourth quarter total revenue was CNY 358.2 million (USD 50.51 million), an increase of 95.7% YoY; net profit was CNY 69.9 million (9.86 million), an increase of 71.4% YoY; non-GAAP net profit was CNY  86.4 million (USD 12.18 million), an increase of 86.5% YoY. So-Young was founded in 2013 and went public on May 2 in 2019, focusing on providing medical cosmetology and beauty related content. The home page displays the most popular medical aesthetic choices, including facial contouring, eyes, nose and mouth alterations. And users can share their experiences on medical aesthetics, most will put photos of  'before' the medical beauty program and 'after' it. Some doctors also introduce their own programs and share beauty information to attract users. Driven by these active medical service providers and beauty seekers on So-Young platform, this Internet platform is showing a strong performance. In the fourth quarter, So-Young's average number of active mobile monthly users was 3.67 million, a YoY increase of 120.1%; the total number of user purchases was 188,300, a YoY increase of 50.7%; subscribers to the information services increased from 1644 to 2138. As a result, the total value of the medical beauty transactions promoted in the fourth quarter was nearly CNY 1 billion (USD 140 million), a YoY increase of 66.6%. Mr. Jin Xing, Chairman and Chief Executive Officer of New Oxygen Technology said (in Chinese), "We have made several strategic adjustments to further strengthen our vibrant and growing community of medical beauty users and professionals. These measures have contributed to a 95.7% year-on-year increase in company revenue, exceeding our forecast limit." According to Deloitte's China medical cosmetology report (in Chinese), the size of the Chinese medical cosmetology market in 2017 reached CNY 192.5 billion (USD 27.14 billion), and it is expected to reach CNY 481 billion(USD 67.82 billion) in 2022. Huge market-driven service providers are stepping into this emerging market while some problems exist. For companies in 2017, channel marketing expenses accounted for more than 50% of the revenue, which squeezed profit margins. For users, safety is their first priority while medical accidents still happen and after-sales services need improving. According to statistics from the National Consumers Association, from 2015 to 2019, China's medical and aesthetic industry-related complaints increased by nearly 13 times, and in 2019, the medical and aesthetic industry complaints increased by 6,138, which is nearly 13 times the number of complaints in 2015. Industry regulations need to be stricter to protect consumers.

Announcements
Mar 24, 2020 · U.S. SECURITIES AND EXCHANGE COMMISSION
Announcements
Mar 24, 2020 · U.S. SECURITIES AND EXCHANGE COMMISSION

So-Young Reports Fourth Quarter 2019 Unaudited Financial Results

Announcement: Click here
Analysis EO
Dec 12, 2019
report
Analysis EO
Dec 12, 2019

‘Medical Aesthetic Platform’ So-Young Faces Dilemma: Sell Adds or Retain Trust?

“The plastic surgery industry in China is indeed filled with sketchy practices, and there is plenty of news coverage about people ruining their lives getting surgery from unlicensed doctors. Apps like So-Young allow me to review the past cases and customer reviews on each surgeon & clinic, so I can make a wiser choice and avoid unqualified surgeons,” a user of the medical aesthetic platform told EqualOcean.   The same individual spent over CNY 75,000 on the medical aesthetic services marketplace. He did multiple appointments for Botox, hyaluronic acid and face sculpting injections, one facial liposuction, an upper lip thinning surgery and buccal pads deletion surgery, all while tracking the hundreds of clinics exposures on the platform. There were 172,500 purchasing users like him in the third-quarter of 2019, the medical aesthetic services marketplace revealed in its third-quarter filings.  So-Young (SY: NASDAQ) peaked new heights in the third quarter of 2019. Total revenues were CNY 302.4 million, a YoY increase of 79.6%, and the average mobile Monthly Active Users (MAUs) were 3.42 million, a YoY increase of 143.8% – meaning now the company has entered a new stage where its aggressive growth has started to cool down due to the limited addressable market size. The company could still retain its eye-catching gross margins at around 85%. Critical Indicators for So-Young So-Young's business relies on the accumulation of two crucial numbers: mobile MAUs and the number of clinics shown on the app. While accumulating the revenues generated from the paying users, the firm has been trying to optimize the promotion services fees collected from the hundreds of small and mid-sized clinics around the mainland. At the same time, it has been advertising on mass media to hold its ‘most-trusted medical aesthetic information provider’ position against its competitors, including Gengmei (更美), a Sequoia-backed private medical aesthetic information services firm. The company spent CNY 156.6 million on its sales and marketing operations in the third quarter of 2019, more than half of its total revenues in the same period. Considering the proliferation of similar apps and dynamic sector conditions, we expect that the marketing expenses will be the major obstacle for the company in the foreseeable future. We defined Gross Bookings as "Aggregate value of medical aesthetic treatment transactions facilitated by So-Young’s platform." The firm achieved over CNY 90 million increase in its Gross Booking Values from Q3 to Q4 of 2019, although the average number of purchasing users decreased in absolute terms from 201,500 to 172,500 in the same period. Purchasing users are defined as people who made verified transactions with the service providers; the average transaction by each purchasing user increased from CNY 4433 to CNY 5659 from the third quarter of 2019 to the fourth. Most of those purchasing users use the app at most once or so, due to the nature of having cosmetic surgery.  Yet, the revenues are mainly comprised of information services, which are the fees collected by placing information about medical aesthetic service providers' on So-Young's platform: advertisement. And ads’ contribution to the firm's total revenues has been increasing, dangerously so. So-Young generated 40.5% of its revenues from information services in 2016, 67.4% in 2018, and around 71% far in 2019. “Medical service providers who use our information services are obliged to comply with relevant laws and regulations and ensure the credibility and reliability of all information provided to us and distributed on our platform,” says the firm in its prospectus. Yet, considering that the majority of these medical service providers are small and mid-sized clinics, it is less likely for all of them to deliver exactly what they’ve promised, and one case may hurt the entire brand image of the company, ultimately resulting in user loss. The company is not likely to keep increasing its revenue more from adds to service providers, and at the same time achieving its mission to become "the most-trusted tech company in the consumer healthcare industry" This business model will probably prove cancerous for the firm in the long term. Although it has been decreasing since the third quarter of 2018, the cost of acquiring new users is still high for So-Young. New players are entering the industry aggressively, and the technical barriers to entry are not so high. There is a little possibility for So-Young to successfully keep decreasing its user acquisition costs in the near term. What's Next for the Beauty Priest "I personally have a very specific 'beauty goal' and sometimes I don’t know if surgery can achieve my very particular goal, but the app helps me to see what surgeries I am able or unable to pursue... I can refer to other people's cases, before-vs-afters, and predict what I actually need and what I don’t, without getting persuaded to do surgeries or treatments that I personally don’t desperately need, only because the salesperson at a clinic recommend them to me," said the user to EqualOcean.  He and thousands of others are assuming that the platform is not in itself a manipulator of users. And the app is increasing its bet on advertising revenues, risking its brand recognition and new user acquisition. Thus, revenue composition will be one of the fundamental factors deciding the company's integrity over time. Besides all the above, the company is still in its expanding stage, serving the growing crop of upper-middle-income citizens. It is the most recognized-platform by far, in a business field where the winner takes the most – but not necessarily all.

Announcements
Dec 5, 2019 · xueqiu
Research
Sep 2, 2019 · The above information is fromTiger Brokers, with source link: www.itiger.com. Please contact this company if full report is needed.
Research
Sep 2, 2019 · The above information is fromTiger Brokers, with source link: www.itiger.com. Please contact this company if full report is needed.

新氧(SY.O):New medical beauty platform spawned by "facial beauty economy"

News EO
Aug 29, 2019
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News EO
Aug 29, 2019

So-Young Publishes Q2 Results, Shares Plummet Nearly 20%

So-Young (新氧) (SY: NASDAQ) published Q2 results: the company could maintain its high margins after the IPO with 82.5% in Q2. The total number of paying users were 201,500, an increase of 118.8% from 92,100 in the second quarter of 2018, yet the number of paying medical service providers on So-Young’s platform was 3,157, an increase of 39.4% from 2,265 in the second quarter of 2018, that is a slower growth compere to the previous periods.   The company have not faced with a significant regulatory or branding crisis during the period, except one to two insignificant branding cases, and could expand its operational scope. The aggregate value of medical aesthetic treatment transactions facilitated by So-Young’s platform was CNY 892.9 million, an increase of 81.9% from CNY 491.0 million in the second quarter of 2018. The growth in operational capacity and surging paying users should not be regarded as an increasing market share of So-Young; instead, we are estimating that the market has been expanding during the period since parallel operational jumps observed in the company's competitors Gengmei (更美) and Yuemei, as well.  As expected, the company's most significant expenses are marketing-related, So-Young poured CNY 105 million into marketing; however, did not specify the details in the report.​​​​ The market size of China's Medical Aesthetic sector is set to reach CNY 481 billion in 2022, Deloitte estimates. 

News EO
Jul 16, 2019
report
News EO
Jul 16, 2019

Post So-Young: Medical Aesthetic Platform GengMei is Said to Seek US or HK IPO

GengMei (更美), China's largest medical aesthetic platform after So-Young (Nasdaq: SY), is going to go public in the US or HK within the Q4 of 2019, Chinese media speculated. As of May 2019, So-Young and GengMei are dominating China's entire medical aesthetic industry with 25 million and 15 million Monthly Active Users (MAU) respectively, according to the analytics from YiGuan (易观), yet another app intelligence platform of China. The company has denied the rumours claiming "GengMei is already a profit-generating company and we're not in a hurry to raise money from an IPO." "GengMei has not yet settled its underwriters, because the company is still a loss-making one, and not ready for being a publicly-traded company, So-Young's IPO is not a good example for the investors, as well." said the people who leaked the information for the Chinese media. "No foreign investment bank would be willing to pick up." the people speculated. Meanwhile, SoYoung stock plunged 9% amid information pollution of GengMei's IPO, proving the fact that the business models of China's medical aesthetic platforms are significantly vulnerable. On July 15, a local media named "Beijing News" (新京报) publicised that So-Young's platform has been promoting unlicensed products and that there are fake and fabricated comments promoted by the platform. The news sent the stock in So-Young more than 9% lower from around USD 16.9 to 15.1 USD per American depositary share, because the incident destroys the most fundamental value of the platform. In fact, the risks associated with the company's brand value was explicitly disclosed in So-Young's "Form F-1".  "We may be subject to consumer claims, regulatory or professional investigations and litigations regarding the medical information and services offered on our platform, which could materially and adversely affect our brand, reputation, and results of operations."  The medical aesthetic market is expected to grow 25% annually and be worth CNY 300 billion by 2020. What's more, China Association of Plastics and Aesthetics has revealed that it believes 70% of the country’s Botox and hyaluronic acid, a type of dermal filler, to be either counterfeit or smuggled into China illegally, The Paper reported. (Check out this article for in-depth analysis of China's medical aesthetic market) China's plastic surgery and the medical aesthetic industry is dominated by small and medium-sized enterprises, and users are bound to use the platforms, such as So-Young and GengMei to reach clear information. If the platform itself promotes false information, it would not be serving for its core values. However, these platforms' main revenue generation source is collecting service fees from the medical aesthetics clinics and exposure them for the public, which creates a massive conflict of interest in the business model of So-Young.

News EO
Jun 2, 2019
report
News EO
Jun 2, 2019

So-Young posts a 50% jump in net income, but where is the firm really heading?

On the evening of May 30, So-Young (新氧) announced the financial results for the first quarter of 2019 since the company went public on Nasdaq in May under "SY." Financial reports show a year of rapid expansion for one of China’s largest medial aesthetic players. Its profits jumped more than 50% from USD 4.3 million to USD 6.8 million, and operational expenses almost doubled, totalling USD 19.6 million.  So-Young is one of China's online marketplaces where consumers can discover, review, discuss and book medical aesthetic services. The company’s platform has logged 1.9 million MAU. (Find more about So-Young in this in-depth coverage) MAU and the number of partnership hospitals are the most significant indicators of a medical aesthetic platform's business prospects. So-Young has performed convincingly in this regard. For instance, So-Young has reported an increase of 78.7% in MAUs on mobile devices. With its nearly 2 million MAU, the company has surpassed its competitors in the number of users by a considerable margin. What's more, the Q1 report revealed that the total number of paying customers on So-Young reached 127,300 in the first quarter of this year, a year-on-year increase of 84.9%. Moreover, medical service providers subscribing to information services on So-Young’s platform numbered 1,853 in the first quarter of 2019. So-Young’s overall expansion in its operational capacity is a remarkable success for the company. This is because, as an intermediary between, medical aesthetic providers and consumers, the efficiency of the platform is tied to its overall penetration. Higher penetration creates a unique value proposition for the company. As of the fourth quarter of 2018, three platforms dominated the Chinese medical aesthetic market; they were So-Young, Gengmei (更美) and Yuemei (悦美). Amongst them, So-Young is the only one that has pulled off a US float, thanks to its number of orders, user traffic and penetration rate.  Despite a bright prospect, So-Young needs to be concerned about a few things. First, Gengmei, Yuemei and several others may be catching up, albeit slowly, and this is something that should have put So-Young’s management and investors on alert. Gengmei, Yuemei and several others may slowly be catching up, and it is the first thing to be closely followed by the So-Young investor. Second, one of So-Young's avenues of monetization is for medical service providers to pay “service fees” in return for getting better placements and thus visibility on the platform. This raises the possibility of creating a conflict of interest.  So-Young's business looks secure and stable as of the first quarter of 2019. However, it is important to remember that its business model is still not characterized by a high barrier to entry, and may contain risks from a regulatory and branding perspective. So while So-Young’s strong financial performance might have given its investors a cause for celebration, they’d better not take this temporary success story at its face value. The industry, let alone the company itself, is risky and merits closer scrutiny and due diligence investigation.

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