So-Young International Inc. (NASDAQ:SY) Q2 2020 Earnings Conference Call - Final Transcript

Aug 27, 2020 • 07:30 am ET

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So-Young International Inc. (NASDAQ:SY) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good morning, ladies and gentlemen, and thank you for standing by for So-Young's Second Quarter of 2020 Earnings Conference Call. [Operator Instructions] As a reminder, today's conference call is being recorded.

I will now like to turn the meeting over to your host for today's call, Ms. Vivian Xu. Please proceed, ma'am.

Executive
Vivian Xu

Thank you, operator, and thank you for joining So-Young's second quarter 2020 earnings conference call. Please note that the discussion today will contain forward-looking statements made under the safe harbor provisions of the U.S. Private Securities and 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.

Joining us today on call are Xing Jin, our Founder, Chairman and CEO; and Min Yu, our CFO.

At this time, I would like to turn the call over to Mr. Xing Jin.

Executive
Xing Jin

[Foreign Speech]

Executive
Vivian Xu

Thank you, everyone, for joining us for our second quarter 2020 earnings call.

Executive
Xing Jin

[Foreign Speech]

Executive
Vivian Xu

The overall impact of COVID-19 throughout the first half of 2020 tested our ability to adapt and drive engagement with our expanding community of users and medical aesthetics professionals.

With that in mind, I want to thank you for -- all the employees for their commitment and hard work during the second quarter as we increased our efforts on engagement, content, quality and provided technology-driven solutions to service stakeholders across our platform.

Executive
Xing Jin

[Foreign Speech]

Executive
Vivian Xu

While many sectors in China are recovering, particularly those relating to e-commerce, the recovery across the medical aesthetics and the wellness industry has been slower than expected.

According to consumption data on our platform as of June 2020, non-surgical treatments were recovering and have returned to pre-pandemic peak levels. While surgeries have only recovered to about 60% of the levels seen in the fourth quarter of last year.

Meanwhile, a resurgence of COVID-19 in some mainland cities have prompted some local governments to once again put restrictions on public and personal life, causing slower-than-expected resumption of online hospital and medical service activities.

Executive
Xing Jin

[Foreign Speech]

Executive
Vivian Xu

Despite ongoing weaker than normal consumer segment and the restriction on general mobility in parts of China as a result of the outbreak, we generated total revenue of RMB328 million, representing a 15% increase year-over-year from the second quarter of 2019. We also made significant progress in expanding our vibrant community of users and medical aesthetics professionals and driving traffic through our platform. We grew our community with average mobile MAUs increasing to 6.8 million, representing an increase of 174% year-over-year from 2.5 million during the same period of 2019. We also increased the number of paying medical service providers on our platform to 3,735, an increase of 18% from the second quarter of 2019.

Executive
Xing Jin

[Foreign