So-Young International Inc. (NASDAQ:SY) Q1 2024 Earnings Conference Call May 28, 2024 7:30 AM ET

Company Participants

Mona Qiao - Investor Relations
Xing Jin - Co-Founder, Director and Chief Executive Officer
Hui Zhao - Chief Financial Officer

Conference Call Participants

Chloe Wei - CICC
Yibing Wang - Haitong
Joey Chan - Jefferies

Operator

Ladies and gentlemen, thank you for standing by for So-Young's First Quarter 2024 Earnings Conference Call. At this time all participants’ are in listen-only mode. After management give their prepared remarks, there will be an opportunity for question-and-answers. As a reminder today’s conference is being recorded.

I would now like to turn the conference over to your host for today's call, Ms. Mona Qiao. Please proceed, ma’am.

Mona Qiao

Thank you, operator, and thank you everyone for joining So-Young’s first quarter 2024 earnings conference call. Joining me today on the call is Mr. Xing Jin, our Co-Founder, Chairman, and CEO’ and Mr. Nick Zhao, CFO.

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 alternatives that may cause actual results to differ materially from our current expectations. Potential risks and alternatives include, but are not limited to those outlined in our public filings with SEC, including our annual report on Form 20-F. So-Young does not undertake any obligation to update any forward-looking statements, except as required under applicable law.

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

Xing Jin

[Foreign Language] [Interpreted]

Hello, everyone. Thank you for joining the call today. Our business performed well in the first quarter with total revenues reaching RMB318.3 million, exceeding the upper end of our guidance. At the same time, this marks the fourth time in five years that we achieved non-GAAP profitability in the first quarter. Our new businesses continue to grow rapidly with revenue from sales of medical products and maternity services increased 23.3% year-over-year. Our pipeline of upstream products continues to further diversify its offerings, while So-Young plant maintains healthy development.

We have made significant progress in the expansion of our chain of clinics. In the first quarter, we opened the PR operations at three clinics, all of which boost unit area efficiencies well above industry average at a notable price advantage. In the first quarter, the cumulative clients service -- by our clinics increased 77% quarter-over-quarter. We've also made steady headway of vertical integration from products to institutions, driving the destruction of pricing system and value allocation in the industry. This will provide consumers with medical, aesthetical services that are more cost efficient and help with sustainable development of medical and aesthetic practitioners. In terms of products, institutions and So-Young platform, as we made steady progress in these initiatives, we are confident in the growth opportunities for us going forward.