So-Young International Inc. (NASDAQ:SY) Q1 2020 Earnings Conference Call - Final Transcript

May 18, 2020 • 07:30 am ET

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So-Young International Inc. (NASDAQ:SY) Q1 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by and welcome to So-Young First Quarter 2020 Earnings Conference Call. [Operator Instructions]

I would now like to hand the conference over to your first speaker today, Ms. Vivian Xu. Thank you. Please go ahead.

Executive
Vivian Xu

Thank you, operator. Hello everyone and thank you for joining us today. So-Young's first quarter 2020 earnings release was distributed earlier today and is available on our IR website at ir.soyoung.com. On the call today from So-Young, we have Mr. Xin Jin, Co-Founder and Chief Executive Officer; and Mr. Min Yu, Chief Financial Officer. They will both be available to answer your questions during the Q&A session that follows management prepared remarks. Please note that the discussion today will contain forward-looking statements made under the Safe Harbor provisions of the U.S. Private Securities and the Litigation Reform Act of 1995. Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from our current expectations. Potential risks and uncertainties include, but are not limited to those outlined in our public filings with the SEC, including our Annual Report on Form 20-F. So-Young does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

It's now my pleasure to introduce Mr. Xing Jin, who will read through his prepared remarks in Chinese first, in their entirety, before they are translated to English. After which, Mr. Min Yu will go over the financials. Sir [Phonetic], please go ahead.

Executive
Xing Jin

[Foreign Speech]

Thank you everyone for joining us for our first quarter 2020 earnings call. Before I begin, I want to convey our deepest sympathies to everyone who's loved ones have sadly been affected by this tragic pandemic. We also want to express our sincere gratitude and appreciation to all those helping in the fight against COVID-19 including our employees who have been working hard and doing their very best to limit the spread of the disease while courageously ensuring business continuity.

[Foreign Speech]

Despite the significant impact COVID-19 has had on our business, we delivered solid results during the quarter. We have taken the opportunity to implement strategic changes to ensure we are well-positioned for growth when more normal operating conditions resume in the second half of 2020. Total revenues were RMB183 million exceeding the high end of the company's previous guidance.

[Foreign Speech]

The macroeconomic environment as a result of the pandemic during the quarter has been challenging, as anticipated. But this has also given us an opportunity to accelerate the deployment of resources to enhance the user experience. We made efforts on expanding our vibrant community of users and medical aesthetics professionals. We grew our community significantly during the quarter with average mobile MAUs increasing to 4.2 million compared with 1.9 million during the same period of 2019, a increase of 117%.

[Foreign Speech]

Our core focus during the quarter was twofold. First, we expanded our community. And second, we further streamlined the delivery of high-quality content while driving greater