Briefing: Plastic surgery app So-Young posts strong Q1 earnings, rising costs

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新氧科技上市首秀:一季度净赚4590万元,较去年同期涨50% – Sina Tech

What happened: Chinese plastic surgery app So-Young announced total revenue in the first quarter of RMB 206.1 million ($30.7 million), representing an 81% increase from the same period in 2018. Growth was mainly driven by a rise in its core information and reservation services provided to cosmetic surgery and beauty service providers. Net income rose 50% to RMB 45.9 million compared with RMB 30.6 million in Q1 2018. Users surged, with average monthly active users (MAU) rising 79% year on year to 1.92 million and purchasing users increasing 85% year on year to 127,000. However, cost of revenues also jumped, rising 146% year on year to RMB 36.4 million on expanding operational staff headcount. CEO Jin Xin said the company will continue to invest in content offerings, AI applications, value-added services, diversification of user acquisition channels, and expansion into relevant consumption healthcare verticals.

Why it’s important: China’s cosmetic medicine services industry is growing rapidly, especially with younger generations. The segment is expected to be worth RMB 360 billion by 2023 according to figures from research firm Frost & Sullivan. The huge market is intensifying competition between online plastic surgery platforms, hospitals, and suppliers to woo users. Rivals to So-Young, which made its debut on the US stock market in May, include well-funded Gengmei and Tencent-backed medical platform DXY.