So-Young International Inc (SY) 2023 Q1 法說會逐字稿

Ladies and gentlemen, thank you for standing by for So-Young's first-quarter and 2023 earnings conference call. (Operator Instructions) As a reminder, today's conference call is being recorded.

女士們、先生們，感謝你們出席新氧第一季度和 2023 年收益電話會議。 （操作員說明）提醒一下，今天的電話會議正在錄音。

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

現在我想將會議轉交給今天電話會議的主持人 Vivian Xu 女士。請徐女士繼續。

Thank you, operator, and thank you, everyone, for joining So-Young's first-quarter 2023 earnings conference call.

謝謝運營商，也謝謝大家參加新氧2023年第一季度財報電話會議。

Please note that the discussion today will contain forward-looking statements made under the Safe Harbor provisions of the US 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.

請注意，今天的討論將包含根據 1995 年美國私人證券和訴訟改革法案的安全港條款做出的前瞻性陳述。前瞻性陳述受到風險和不確定性的影響，可能導致實際結果與我們當前的預期存在重大差異。

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 statements, except as required under applicable law.

潛在風險和不確定性包括但不限於我們向 SEC 公開提交的文件中概述的風險和不確定性，包括我們的 20-F 表格年度報告。除適用法律要求外，新氧不承擔任何更新任何前瞻性陳述的義務。

Joining today on the call is Mr. Xing Jin, our Co-Founder, Chairman, and CEO; and Mr. Nick Zhao, CFO. At this time, I would like to turn the call over to Mr. Xing Jin.

我們的聯合創始人、董事長兼首席執行官金星先生參加了今天的電話會議；和首席財務官趙尼克先生。這時我想把電話轉給金星先生。

(interpreted) Hello, everyone, and thank you for joining So-Young's first-quarter 2023 earnings call.

（翻譯）大家好，感謝您參加新氧2023年第一季度財報電話會議。

We kicked off 2023 with a strong financial performance as the effects of the pandemic recede and the gradual recovery of medical aesthetics industry gains momentum. Total revenue for the first quarter reached RMB310 million, a year-on-year increase of 3%, and exceeding the high end of our previous guidance range.

隨著疫情影響逐漸消退，醫美行業逐步復甦，我們以強勁的財務業績拉開了2023年的序幕。第一季度總收入達到人民幣3.1億元，同比增長3%，超過我們此前指引範圍的上限。

Strict cost control measures and operational efficiency improvements resulted in a 15% year-on-year decrease in operating expenses, while our non-GAAP net loss attributable to So-Young International Inc. narrowed significantly, decreasing by 94% year on year to RMB2.75 million.

嚴格的成本控制措施和運營效率提升，運營費用同比下降15%，新氧淨虧損大幅收窄，同比下降94%至275萬元。

I will now walk you through the progress we have made on So-Young Prime, our strategic priority this year.

現在我將向您介紹我們今年的戰略重點——新氧 Prime 所取得的進展。

As we have emphasized on our last earnings call, the medical aesthetics industry in China is undergoing numerous structural shifts. Users are becoming increasingly more sophisticated and discerning.

正如我們在上次財報電話會議上強調的那樣，中國的醫療美容行業正在經歷眾多結構性轉變。用戶變得越來越成熟和挑剔。

For example, middle-class female users, our major demographic group within the large medical aesthetic sectors. They are increasingly showing distinctive consumption habits that reflect this structural shift, such as more attention to safety; service quality; and cost for specific high-frequency procedures, such as anti-aging, skin care, and body sculpting.

比如中產女性用戶，我們在醫美大領域的主要人群。他們越來越多地表現出反映這種結構性轉變的獨特消費習慣，例如更加關注安全；服務質量;以及特定高頻手術的費用，例如抗衰老、皮膚護理和塑身。

Medical institutions and SMEs, on the other hand, face new challenges, such as higher user acquisition costs, constant CapEx requirements to upgrade equipment, and a lack of qualified doctors. This impacts their ability to expand.

另一方面，醫療機構和中小企業面臨著新的挑戰，例如更高的用戶獲取成本、不斷升級設備的資本支出要求以及缺乏合格的醫生。這會影響他們的擴張能力。

Prior to this structural shift taking hold, our focus was squarely on strengthening the numerous competitive advantages we have accumulated. This spanned from user acquisition, streamlined operations, and integrating upstream and downstream resources to ensuring the quality and authenticity of services and doctors. This competitive advantage enables us to build significant barriers to entry, tap into broader verticals within the industry, solve pain points, and offer a unique value proposition to both consumers and medical institutions.

在發生這種結構性轉變之前，我們的重點是加強我們積累的眾多競爭優勢。從獲取用戶、簡化運營、整合上下游資源到確保服務和醫生的質量和真實性。這種競爭優勢使我們能夠建立顯著的進入壁壘，進入行業內更廣泛的垂直領域，解決痛點，並為消費者和醫療機構提供獨特的價值主張。

We launched So-Young Prime late last year, our proprietary one-stop, non-surgical medical aesthetics solution. So-Young Prime covers every process from user acquisition to pricing and delivery in order to guarantee service quality and enhance the user experience. Our staff have their own service counters within our partner medical institutions.

去年年底，我們推出了 So-Young Prime，這是我們專有的一站式非手術醫學美容解決方案。新氧Prime覆蓋從用戶獲取到定價、交付的各個流程，保障服務質量，提升用戶體驗。我們的員工在我們的合作醫療機構內設有自己的服務櫃檯。

So-Young Prime was launched to widespread praise from consumers and has already generated repurchase rates significantly higher than any of the previous products launched on our platform. Medical institutions have been incredibly interested in signing on.

新氧Prime一經推出就受到了消費者的廣泛好評，复購率已經明顯高於我們平台上之前推出的任何產品。醫療機構對簽約非常感興趣。

By the end of the first quarter, we have partnered with over 130 institutions in more than 25 cities. During the first quarter, fulfilled orders through So-Young Prime increased by 88% sequentially. Going forward, our near-term goal is to further expand So-Young Prime's service network. This will solidify its position and strengthen its brand by focusing on populous SKUs, such as medical-grade laser, and injection treatments, and body sculpting.

截至一季度末，我們已與超過25個城市的130多家機構合作。第一季度，通過新氧 Prime 履行的訂單環比增長 88%。展望未來，我們的近期目標是進一步擴大新氧Prime的服務網絡。這將通過專注於醫療級激光、注射治療和塑身等熱門 SKU 來鞏固其地位並強化其品牌。

This will also expand our market share for these categories and generate more buzz within the industry. With so much potential, we are confident that So-Young Prime will be a key growth driver for us this year as it expanded into more cities.

這也將擴大我們在這些類別的市場份額，並在行業內引起更多關注。憑藉如此巨大的潛力，我們相信新氧Prime將在今年擴展到更多城市，成為我們的主要增長動力。

I will now move on to our pump business. With the effects of the pandemic receding and the Chinese New Year holiday period now behind us, the medical aesthetics industry have been undergoing a gradual yet uneven recovery. First- and second-tier cities are recovering at a faster pace than Tier 3 and below. Non-surgical procedures are also recovering at faster pace than surgical procedures.

我現在將繼續我們的泵業務。隨著疫情影響逐漸消退，春節假期結束，醫美行業正在經歷逐步但不平衡的複蘇。一二線城市的複蘇速度快於三線及以下城市。非手術治療的恢復速度也比手術治療快。

Medical institutions, as a result, remain cautious on increasing marketing spend during the first quarter. But they have gradually been increasing their activity as we get deeper into the second quarter. Non-surgical orders placed in April were 14% higher than the [measly] average last quarter.

因此，醫療機構對第一季度增加營銷支出仍持謹慎態度。但隨著第二季度的深入，他們的活動逐漸增加。 4 月份的非手術訂單比上季度的平均水平高出 14%。

For surgical procedures, the increase was 25%. With transactions on our platform accelerating, marketing spend by medical institutions is also significantly picking up in April.

對於外科手術，增加了 25%。隨著平台交易加速，醫療機構4月份的營銷支出也大幅回升。

With a recovery clearly in the way, we began to increase promotional campaigns across our platforms in March. Our focus was on SKUs that are in high demand, namely skin care and body sculpting. By optimizing the design of the so-called So-Young app, we now display recommendations for popular SKUs and popular doctors as well as offer discounts on surgical procedures.

隨著經濟明顯復甦，我們從三月份開始在平台上增加促銷活動。我們的重點是需求量很大的 SKU，即護膚品和塑身品。通過優化所謂的 So-Young 應用程序的設計，我們現在可以顯示熱門 SKU 和熱門醫生的推薦，並提供外科手術的折扣。

This incentivize users to return to the platform, increases engagement, and drive fulfilled orders and the GMV growth. With the summer holiday season rapidly approaching, we will expand the number of medical institutions we partner with to increase the supply of key SKUs and strengthen user engagement and stickiness.

這會激勵用戶返回平台，提高參與度，並推動訂單履行和 GMV 增長。隨著暑假的臨近，我們將擴大合作的醫療機構數量，增加重點SKU的供應，增強用戶的粘性和粘性。

After [10] years of rapid development, the scale and growth potential of the Chinese medical aesthetics industry remains enormous. The industry is standardizing at its growth, shifting from product-driven to technology-driven.

經過[10]年的快速發展，中國醫美行業的規模和增長潛力依然巨大。該行業的增長正在標準化，從產品驅動轉向技術驅動。

Our focus throughout 2023 will be on high-quality growth, empowering SME and medical institutions, and providing better products to consumers through services such as So-Young Prime. I am confident that this will strengthen our core competitiveness and improve our financial performance.

2023年我們的重點是高質量增長，賦能中小企業和醫療機構，通過新氧Prime等服務為消費者提供更好的產品。我相信這將增強我們的核心競爭力並改善我們的財務業績。

I will now turn the call over to our CFO, Nick, to review the financial results for the first quarter before taking your questions.

現在我將把電話轉給我們的首席財務官尼克，在回答你們的問題之前先回顧一下第一季度的財務業績。

Hello, this is Nick. The investments we made in our infrastructure capacity and service expansion during the challenging environment last year are beginning to pay off and are reflected in our financial performance this quarter. Total revenues during the quarter were RMB310.1 million, up 3.2% year over year, and exceeding the high end of our previous guidance. The increase was primarily due to an increase from the sales of equipment and maintenance services and other services.

你好，我是尼克。去年充滿挑戰的環境中，我們在基礎設施容量和服務擴展方面所做的投資已開始獲得回報，並反映在我們本季度的財務業績中。該季度總收入為人民幣 3.101 億元，同比增長 3.2%，超過我們之前指引的上限。增長主要是由於設備銷售和維護服務及其他服務的增長。

The revenue is composed of three main streams: information services, reservation services, and revenue from sales of equipment and maintenance services. Information services and other revenues were RMB217.8 million, up 9.2% year over year, primarily driven by an increase in other revenues from So-Young Prime.

收入主要由三個部分組成：信息服務、預訂服務以及設備和維護服務銷售收入。信息服務及其他收入為人民幣217.8百萬元，同比增長9.2%，主要是由於新氧Prime其他收入的增長所致。

As our CEO, Mr. Jin, outlined earlier, the industry's recovery has been uneven. Reservation services revenues continued to feel the impact of COVID-19 on surgical transactions, decreasing 29.9% year over year to RMB29.7 million, but has also begun to rebound in April. Sales of equipment and maintenance services, which were from Wuhan Miracle Laser Systems, Inc., were RMB62.6 million, up 7% year over year.

正如我們的首席執行官金先生之前所概述的那樣，該行業的複蘇並不均衡。預約服務收入繼續受到COVID-19對手術交易的影響，同比下降29.9%至人民幣2,970萬元，但也於4月份開始反彈。武漢奇蹟激光系統股份有限公司的設備及維護服務銷售額為人民幣6,260萬元，同比增長7%。

Cost of revenues were RMB113.7 million, up 6.7% year over year. The increase was primarily due to investments made in service providers to enhance operational efficiency and improve the quality of services. Total operating expenses were RMB229.8 million, down 15.4% year over year.

收入成本為人民幣113.7百萬元，同比增長6.7%。這一增長主要是由於對服務提供商進行的投資，以提高運營效率和提高服務質量。總營業費用為人民幣229.8百萬元，同比下降15.4%。

Sales and marketing expenses were RMB112.5 million, down 11.6% year over year, primarily due to the increase in expenses associated with branding and user acquisition activities. G&A expenses were RMB61.5 million, down 5.9% year over year due to operational efficiency improvements. R&D expenses were RMB55.8 million, down 29.3% year over year, primarily due to a decrease in payroll costs.

銷售及營銷費用為人民幣112.5百萬元，同比下降11.6%，主要是由於品牌和用戶獲取活動相關費用增加。由於運營效率提高，一般及行政費用為人民幣 6150 萬元，同比下降 5.9%。研發費用為人民幣5,580萬元，同比下降29.3%，主要是由於工資成本下降。

Income tax benefits were RMB4.3 million compared with income tax benefits of RMB2.0 million in the first quarter of 2022. Net loss attributable to So-Young International Inc. were RMB11.9 million compared with a net loss of RMB66.8 million during the same period last year.

所得稅優惠為人民幣430萬元，而2022年第一季度所得稅優惠為人民幣200萬元。新氧國際應占淨虧損為人民幣1190萬元，而去年同期淨虧損為人民幣6680萬元。

With revenue growing once again, our non-GAAP net loss attributable to So-Young International Inc. narrowed significantly to RMB 2.8 million, a decrease of 94.3% year over year. This compares with RMB48.3 million in the same period of 2022.

隨著收入再次增長，歸屬於新氧國際的非美國通用會計準則淨虧損大幅收窄至人民幣280萬元，同比下降94.3%。相比之下，2022 年同期為 4830 萬元人民幣。

Basic and diluted loss per ADS attributable to ordinary shareholders were RMB0.12 and RMB0.12, respectively, compared with basic and diluted losses per ADS attributable to ordinary shareholders of RMB0.62 and RMB0.62, respectively, during the same period of 2022. We have ample cash on hand with a total cash and cash equivalents, restricted cash, and term deposits, and short-term investments of RMB1.5 billion as of March 31, 2023, compared with RMB1.6 billion as of December 31, 2022.

歸屬於普通股股東的每份美國存託憑證基本和攤薄虧損分別為人民幣0.12元和人民幣0.12元，而2022年同期歸屬於普通股股東的每份美國存託股基本和稀釋虧損分別為人民幣0.62元和人民幣0.62元。我們手頭現金充裕，截至2023年3月31日，現金和現金等價物、受限制現金、定期存款和短期投資總額為人民幣15億元，而截至2023年3月31日為人民幣16億元截至 2022 年 12 月 31 日。

Looking ahead, we will continue to carefully monitor and control our expenditures and improve our operational efficiency as we navigate this period of recovery and leverage our ample cash position to strategically invest in our future.

展望未來，我們將在這段復甦時期繼續仔細監控和控制我們的支出，提高我們的運營效率，並利用我們充足的現金狀況對我們的未來進行戰略投資。

For the second quarter of 2023, we expect total revenues to be between RMB380 million and RMB400 million. The above outlook is based on the company's preliminary estimates of market and operating conditions and the customer demand.

2023年第二季度，我們預計總收入在人民幣3.8億元至人民幣4億元之間。上述展望是基於公司對市場和經營狀況以及客戶需求的初步估計。

Please be reminded that all amounts quoted here are in RMB. Please also refer to our earnings release for detailed information of our comparative financial performances on a year-over-year basis. This concludes our key remarks.

請注意，此處引用的所有金額均以人民幣為單位。另請參閱我們的收益發布，了解我們同比財務業績的詳細信息。我們的重要講話到此結束。

I will now turn the call to the operator and open the call for QA. Thanks.

我現在將把電話轉給接線員並打開質量檢查電話。謝謝。

Thanks. We will now begin the question-and-answer session. (Operator Instructions) Thomas Chong, Jefferies.

謝謝。我們現在開始問答環節。 （操作員說明）Thomas Chong，Jefferies。

(spoken in Chinese) Thanks, management, for taking my question. What do you expect the market trends to be in the second quarter and also second half? Thank you.

（中文） 謝謝領導回答我的問題。您預計第二季度和下半年的市場趨勢如何？謝謝。

(interpreted) Consumption across the board is steadily improving with consumption of medical aesthetics products gradually recovering as well. We launched a number of initiatives to attract additional users. This includes optimizing products on our platform for popular SKUs that have ample supply, package together complementary products to improve operational efficiency, and shorten the time it takes for consumer to make a decision during sales periods.

(解讀)消費全面穩定好轉，醫美產品消費逐步恢復。我們推出了一系列舉措來吸引更多用戶。這包括針對供應充足的熱門SKU優化我們平台上的產品，將互補的產品組合在一起以提高運營效率，並縮短消費者在銷售期間做出決定的時間。

The number of users placing orders in GMV during the quarter increased 23% and 27% sequentially, respectively. Orders placed on our platform in April also increased when compared to the average during the first quarter.

本季度 GMV 下單用戶數環比分別增長 23% 和 27%。與第一季度的平均水平相比，四月份我們平台上的訂單也有所增加。

As we discussed in the last quarter, medical institutions remain cautious on increasing marketing spend. During this quarter, the majority of marketing budget allocation came from top-tier medical institutions. With [the amount you're covering], average marketing spend and the number of medical institutions have both gradually increased in April when we compared with average last quarter.

正如我們在上季度討論的那樣，醫療機構對增加營銷支出仍持謹慎態度。本季度，大部分營銷預算分配來自於頂級醫療機構。從[您所覆蓋的金額]來看，與上季度平均水平相比，4月份的平均營銷支出和醫療機構數量都在逐漸增加。

And over the long term, we expect the behavior of users to structurally change with an increasing focus being placed on the consumer experience and cost benefit. Both users and medical institutions will change their consumption behavior, which we will strategically be adapting to. Thanks.

從長遠來看，我們預計用戶的行為會發生結構性變化，人們越來越關註消費者體驗和成本效益。用戶和醫療機構的消費行為都會改變，我們會戰略性地去適應。謝謝。

Are you ready for the question? Thank you. Nelson Cheung, Citibank.

你準備好回答這個問題了嗎？謝謝。張納爾遜，花旗銀行。

(spoken in Chinese) So let me translate myself. Can management share with us the progress of So-Young Prime in Q1 and the outlook for the full year? Thank you.

（用中文發言）那我自己翻譯一下吧。管理層能否與我們分享新氧第一季度的進展以及全年的展望？謝謝。

(interpreted) So-Young Prime is the focus this year. While expanding scale. we are, at the same time, working on enhancing the user experience, standardizing service processes, and strengthening the delivery of service offline. This will ensure a high-end consumer experience.

（解說）So-Young Prime是今年的焦點。同時擴大規模。同時，我們也在努力提升用戶體驗，規範服務流程，加強線下服務交付。這將確保高端的消費者體驗。

On the product end, we partnered with doctors and experts to develop and upgrade the services and bundle them together to offer an easy-to-use and cost-effective one-stop solution. For example, we jointly developed innovative anti-aging products that are exclusive to our platform.

在產品端，我們與醫生和專家合作開發和升級服務，並將它們捆綁在一起，提供易於使用且經濟高效的一站式解決方案。例如，我們共同開發了我們平台獨有的創新抗衰老產品。

This include a unique procedure using the Peninsula Ultrasonic anti-aging cannon, which is specifically sought out by users. Leveraging our strong supply chain capabilities, we diversified our product offerings to strengthen user trust and choice.

其中包括使用半島超聲波抗衰老炮的獨特程序，這是用戶特別尋求的。憑藉我們強大的供應鏈能力，我們豐富了產品種類，以增強用戶的信任和選擇。

We thoroughly screen institutions to ensure they meet our high standards. We have trained medical teams and streamlined processes. As of the end of March, So-Young Prime has expanded to over 130 institutions in more than 25 cities.

我們對機構進行徹底篩選，以確保它們符合我們的高標準。我們訓練有素的醫療團隊並簡化了流程。截至3月底，新氧Prime已拓展至超過25個城市的130多家機構。

Its light asset model, improved user acquisition cost and operating efficiency, and improved solid user experience makes it a unique value proposition. Our fulfilled orders, through So-Young Prime, increased by 88% compared with last quarter, a trend that has continued into April.

其輕資產模式、改善的用戶獲取成本和運營效率以及改善的可靠用戶體驗使其成為獨特的價值主張。我們通過新氧 Prime 完成的訂單比上季度增加了 88%，這一趨勢一直持續到 4 月份。

This year, we will continue to expand its reach and service scope. So-Young Prime was developed with recent consumption trends in the large medical aesthetics market in mind. We are committed to maintaining our high-end user experience by helping the industry grow, leveraging our supply chain expertise. Thanks.

今年，我們將繼續擴大其覆蓋範圍和服務範圍。 So-Young Prime 是根據大型醫療美容市場的最新消費趨勢而開發的。我們致力於利用我們的供應鏈專業知識幫助行業發展，以維持我們的高端用戶體驗。謝謝。

Chloe Wei, CICC.

魏女士，中金公司。

(spoken in Chinese) So let me translate myself. Thanks, management, for taking my question; I have two. So the first one is about -- can management maybe give us some color on the marketing strategy and maybe guide us through how will the marketing spend look like in the rest of the year?

（用中文發言）那我自己翻譯一下吧。感謝管理層提出我的問題；我有兩個。因此，第一個問題是——管理層能否給我們一些關於營銷策略的信息，並指導我們了解今年剩餘時間的營銷支出情況？

And my second question is for Nick. So the numbers of advertisers have decreased on a quarterly basis. So how do you expect that trend in Q2 and the second half of the year? Thank you.

我的第二個問題是問尼克的。因此，廣告商的數量逐季減少。那麼您對第二季度和下半年的趨勢有何預期？謝謝。

(interpreted) As we mentioned last quarter, our focus is really on creating efficiency this year. The repurchase rate for online orders this quarter was 7 percentage points higher than two years ago. With recovery in the way, we'll be increasing marketing spend to educate users.

（解釋）正如我們上季度提到的，今年我們的重點實際上是創造效率。本季度網上訂單的複購率比兩年前高出7個百分點。隨著經濟復甦，我們將增加營銷支出來教育用戶。

We will support and advise medical institutions with their marketing spend. We will focus on platform operations this year to increase user engagement. We will also expand cooperation with other platforms to explore new user acquisition opportunities and content.

我們將為醫療機構的營銷支出提供支持和建議。今年我們將重點關注平台運營，提高用戶參與度。我們還將擴大與其他平台的合作，探索新的用戶獲取機會和內容。

Okay. With regards to the paying medical institutions, we believe that the reduction of paying medical institutions is the result of a cumulative impact of several factors. First of all, I think that Q1 -- the first impact is the seasonality impact. Our Q1 is traditionally slower in the marketing expenditures in our industry.

好的。關於付費醫療機構，我們認為付費醫療機構的減少是多種因素累積影響的結果。首先，我認為第一季度——第一個影響是季節性影響。傳統上，我們行業第一季度的營銷支出較慢。

Secondly, the challenging market situations in Q4 2022 resulted in a significant shrink in the marketing budget for our medical institutions. And thirdly, the infections after the open up of quarantine policy also caused a temporary and yet sharp reduction in users' visit to institutions, which lead to institutions' further reduction in marketing activities in Q1.

其次，2022年第四季度充滿挑戰的市場形勢導致我們的醫療機構營銷預算大幅縮減。第三，隔離政策開放後的感染也導致用戶對機構的訪問量暫時大幅減少，導致機構一季度的營銷活動進一步減少。

With the gradual market recovery, we have seen the rebalance of institution marketing activities. And we would expect a turning point in Q2 with regard to the number of paying medical institutions for our platform. Thank you.

隨著市場的逐步復甦，我們看到機構營銷活動重新平衡。我們預計第二季度我們平台的付費醫療機構數量將出現轉折點。謝謝。

Are you ready for the next question? Okay. Jessie Xu, Credit Suisse.

你準備好回答下一個問題了嗎？好的。 Jessie Xu，瑞士信貸。

(spoken in China) We are very glad to see the significant narrowing of net loss in the quarter on top of revenue growth. So first, can you help us to better understand the factors and reasons behind the net loss in 1Q? And also, how should we look at the bottom-line trend in the second quarter and also the second half of the year? Thank you.

（以中國發言）我們很高興看到本季度淨虧損在收入增長的基礎上大幅收窄。首先，您能否幫助我們更好地了解一季度淨虧損背後的因素和原因？另外，我們應該如何看待二季度和下半年的盈利趨勢？謝謝。

Thanks, Jessie. This is Nick. In the first quarter, our non-GAAP net loss attributable to So-Young International Inc. narrowed significantly compared with the same period last year with a year-on-year decrease of 94% to RMB2.75 million, as we described earlier. The first quarter is typically slow for the medical aesthetics market, as it coincide with the Chinese New Year. And it was impacted also by the rapid spread of COVID-19 after they opened up quarantine policy.

謝謝，傑西。這是尼克。正如我們之前所述，第一季度新氧應佔非美國通用會計準則淨虧損較去年同期大幅收窄，同比下降 94% 至人民幣 275 萬元。由於恰逢農曆新年，第一季度醫療美容市場通常表現緩慢。開放隔離政策後，它還受到了 COVID-19 迅速傳播的影響。

As a result, revenue in the first quarter were impacted as well. As the impact of the pandemic recedes, we are deploying more people and marketing resources as the market recovers. So during the second quarter and throughout 2023, we will focus on enhancing user experience and improve institutional operational efficiency to kick-start revenue growth. We will also strictly control costs and expenses while improving the operational efficiency going forward. Thank you.

因此，第一季度的收入也受到影響。隨著疫情影響的消退，隨著市場的複蘇，我們正在部署更多的人員和營銷資源。因此，在第二季度和整個2023年，我們將專注於增強用戶體驗並提高機構運營效率，以啟動收入增長。未來我們還將嚴格控製成本費用，提高運營效率。謝謝。

This concludes our question-and-answer session and the So-Young International, Inc. first-quarter 2023 earnings conference call. Thank you for attending today's presentation. You may now disconnect.

我們的問答環節和新氧國際有限公司 2023 年第一季度收益電話會議到此結束。感謝您參加今天的演講。您現在可以斷開連接。

Portions of this transcript that are marked (interpreted) were spoken by an interpreter present on the live call. The interpreter was provided by the company sponsoring this event.

該文字記錄中標記（翻譯）的部分是由現場通話中的口譯員說出的。口譯員由贊助本次活動的公司提供。