Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2022 shares | |
Document Information | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2022 |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-38878 |
Entity Registrant Name | So-Young International Inc. |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | Tower E, Ronsin Technology Center |
Entity Address, Address Line Two | Chaoyang District |
Entity Address, City or Town | Beijing |
Entity Address, Country | CN |
Title of 12(b) Security | Class A ordinary shares |
Security Exchange Name | NASDAQ |
Trading Symbol | SY |
Entity Well Known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Accelerated Filer |
Entity Emerging Growth Company | false |
Document Accounting Standard | U.S. GAAP |
Entity Shell Company | false |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | FY |
Entity Central Index Key | 0001758530 |
Amendment Flag | false |
ICFR Auditor Attestation Flag | true |
Auditor Name | PricewaterhouseCoopers Zhong Tian LLP |
Auditor Firm ID | 1424 |
Auditor Location | Beijing, the People’s Republic of China |
Business Contact [Member] | |
Document Information | |
Entity Address, Address Line One | Tower E, Ronsin Technology Center |
Entity Address, City or Town | Beijing |
Entity Address, Country | CN |
Contact Personnel Name | Xing Jin |
Contact Personnel Email Address | ir@soyoung.com |
City Area Code | +86 (10) |
Local Phone Number | 8790-2012 |
Ordinary shares | |
Document Information | |
Entity Common Stock, Shares Outstanding | 80,843,320 |
Class A Ordinary Shares | |
Document Information | |
Entity Common Stock, Shares Outstanding | 68,843,320 |
Class B Ordinary shares | |
Document Information | |
Entity Common Stock, Shares Outstanding | 12,000,000 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Current assets: | |||
Cash and cash equivalents | ¥ 694,420 | $ 100,681 | ¥ 1,331,968 |
Restricted cash and term deposits | 14,908 | 2,161 | 15,119 |
Trade receivables | 36,006 | 5,220 | 54,829 |
Inventories, net | 120,480 | 17,468 | 91,812 |
Receivables from online payment platforms | 14,787 | 2,144 | 18,864 |
Amounts due from related parties | 33,382 | 4,840 | 14,038 |
Term deposits and short-term investments | 875,955 | 127,002 | 408,946 |
Prepayment and other current assets | 126,889 | 18,397 | 91,842 |
Total current assets | 1,916,827 | 277,913 | 2,027,418 |
Non-current assets: | |||
Long-term investments | 227,959 | 33,051 | 252,500 |
Intangible assets | 169,280 | 24,543 | 193,955 |
Goodwill | 540,693 | 78,393 | 540,693 |
Property and equipment, net | 116,184 | 16,845 | 124,576 |
Deferred tax assets | 64,739 | 9,386 | 47,520 |
Operating lease right-of-use assets | 62,898 | 9,119 | 95,609 |
Other non-current assets | 99,293 | 14,396 | 48,097 |
Total non-current assets | 1,281,046 | 185,733 | 1,302,950 |
Total assets | 3,197,873 | 463,646 | 3,330,368 |
Current liabilities (including amounts of the consolidated VIE and its subsidiaries without recourse to the primary beneficiaries of RMB406,691 and RMB381,235 as of December 31, 2021 and 2022, respectively): | |||
Taxes payable | 74,580 | 10,813 | 48,571 |
Contract liabilities | 110,159 | 15,972 | 139,155 |
Salary and welfare payables | 72,532 | 10,516 | 103,624 |
Amounts due to related parties | 5,895 | 855 | 681 |
Accrued expenses and other current liabilities | 224,589 | 32,561 | 376,841 |
Operating lease liabilities-current | 50,285 | 7,291 | 43,529 |
Total current liabilities | 538,040 | 78,008 | 712,401 |
Non-current liabilities (including amounts of the consolidated VIE and its subsidiaries without recourse to the primary beneficiaries of RMB46,821 and RMB17,880 as of December 31, 2021 and 2022, respectively): | |||
Operating lease liabilities-non current | 20,972 | 3,041 | 62,356 |
Deferred tax liabilities | 30,993 | 4,494 | 38,577 |
Total non-current liabilities | 51,965 | 7,535 | 100,933 |
Total liabilities | 590,005 | 85,543 | 813,334 |
Commitments and Contingencies | |||
Shareholders' equity: | |||
Treasury stock | (232,835) | (33,758) | (217,712) |
Additional paid-in capital | 3,043,971 | 441,334 | 2,999,562 |
Statutory reserves | 29,027 | 4,209 | 20,331 |
Accumulated deficit | (346,618) | (50,255) | (272,368) |
Accumulated other comprehensive (loss)/income | 4,107 | 595 | (83,891) |
Total So-Young International Inc. shareholders' equity | 2,497,925 | 362,163 | 2,446,189 |
Non-controlling interests | 109,943 | 15,940 | 70,845 |
Total shareholders' equity | 2,607,868 | 378,103 | 2,517,034 |
Total liabilities and shareholders' equity | 3,197,873 | 463,646 | 3,330,368 |
Class A Ordinary Shares | |||
Shareholders' equity: | |||
Ordinary shares | 236 | 33 | 230 |
Class B Ordinary shares | |||
Shareholders' equity: | |||
Ordinary shares | ¥ 37 | $ 5 | ¥ 37 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) shares | Dec. 31, 2021 CNY (¥) shares |
Current liabilities | ¥ 538,040 | ¥ 712,401 |
Non-current liabilities | ¥ 51,965 | 100,933 |
Ordinary shares authorized (in shares) | 850,000,000 | |
VIEs and VIEs Subsidiaries | ||
Current liabilities | ¥ | ¥ 625,639 | 746,642 |
Non-current liabilities | ¥ | 17,880 | 46,821 |
VIEs and VIEs Subsidiaries | Without recourse | ||
Current liabilities | ¥ | 381,235 | 406,691 |
Non-current liabilities | ¥ | ¥ 17,880 | ¥ 46,821 |
Class A Ordinary Shares | ||
Ordinary shares authorized (in shares) | 750,000,000 | 750,000,000 |
Ordinary shares issued (in shares) | 73,065,987 | 71,736,059 |
Ordinary shares outstanding (in shares) | 68,843,320 | 69,092,367 |
Class A Ordinary Shares | Ordinary shares | ||
Ordinary shares authorized (in shares) | 750,000,000 | 750,000,000 |
Ordinary shares issued (in shares) | 73,065,987 | 71,736,059 |
Ordinary shares outstanding (in shares) | 68,843,320 | 69,092,367 |
Class B Ordinary shares | ||
Ordinary shares authorized (in shares) | 20,000,000 | 20,000,000 |
Ordinary shares issued (in shares) | 12,000,000 | 12,000,000 |
Ordinary shares outstanding (in shares) | 12,000,000 | 12,000,000 |
Class B Ordinary shares | Ordinary shares | ||
Ordinary shares authorized (in shares) | 20,000,000 | 20,000,000 |
Ordinary shares issued (in shares) | 12,000,000 | 12,000,000 |
Ordinary shares outstanding (in shares) | 12,000,000 | 12,000,000 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 CNY (¥) ¥ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 CNY (¥) ¥ / shares shares | Dec. 31, 2020 CNY (¥) ¥ / shares shares | ||
Revenues | |||||
Total revenues | ¥ 1,257,874 | $ 182,375 | ¥ 1,692,463 | ¥ 1,294,988 | |
Cost of revenues | (393,292) | (57,022) | (327,889) | (212,206) | |
Gross profit | 864,582 | 125,353 | 1,364,574 | 1,082,782 | |
Operating expenses: | |||||
Sales and marketing expenses | (472,092) | (68,448) | (792,484) | (726,297) | |
General and administrative expenses | (260,208) | (37,727) | (252,214) | (183,987) | |
Research and development expenses | (235,087) | (34,084) | (286,567) | (229,192) | |
Impairment of goodwill and intangible assets | ¥ | (65,879) | ||||
Total operating expenses | (967,387) | (140,259) | (1,397,144) | (1,139,476) | |
Loss from operations | (102,805) | (14,906) | (32,570) | (56,694) | |
Other income/(expenses): | |||||
Investment income, net | 4,264 | 618 | 8,931 | 13,599 | |
Interest income | 28,883 | 4,188 | 19,328 | 39,669 | |
Exchange losses | (492) | (71) | (4,766) | (1,118) | |
Impairment of long-term investment | (7,945) | (1,152) | (17,850) | 0 | |
Share of losses of equity method investee | (17,223) | (2,497) | (1,522) | (4,279) | |
Others, net | 8,246 | 1,196 | 12,044 | 8,916 | |
Income/(loss) before tax | (87,072) | (12,624) | (16,405) | 93 | |
Income tax benefits/(expenses) | 20,965 | 3,040 | (21,231) | 4,784 | |
Net income/(loss) | (66,107) | (9,584) | (37,636) | 4,877 | |
Net loss attributable to non-controlling interests | 553 | 80 | 29,265 | 930 | |
Net income/(loss) attributable to So-Young International Inc. | (65,554) | (9,504) | (8,371) | 5,807 | |
Other comprehensive (loss)/income: | |||||
Foreign currency translation adjustment | 87,998 | 12,759 | (31,399) | (144,225) | |
Total other comprehensive (loss)/income | 87,998 | 12,759 | (31,399) | (144,225) | |
Total comprehensive (loss)/income: | 21,891 | 3,175 | (69,035) | (139,348) | |
Comprehensive loss attributable to non-controlling interests | 553 | 80 | 29,265 | 930 | |
Comprehensive (loss)/income attributable to So-Young International Inc. | ¥ 22,444 | $ 3,255 | ¥ (39,770) | ¥ (138,418) | |
Net earnings/(loss) per ordinary share | |||||
Weighted average number of ordinary shares used in computing earnings/(loss) per share, basic* | [1] | 82,665,269 | 82,665,269 | 81,680,504 | 81,534,991 |
Weighted average number of ordinary shares used in computing earnings/(loss) per share, diluted* | [1] | 82,665,269 | 82,665,269 | 81,680,504 | 83,781,406 |
Ordinary shares | |||||
Net earnings/(loss) per ordinary share | |||||
Net earnings/(loss) per ordinary share attributable to So-Young International Inc. - basic | (per share) | ¥ (0.79) | $ (0.11) | ¥ (0.10) | ¥ 0.07 | |
Net earnings/(loss) per ordinary share attributable to So-Young International Inc. - diluted | (per share) | (0.79) | (0.11) | (0.10) | 0.07 | |
American Depository Shares | |||||
Net earnings/(loss) per ordinary share | |||||
Net earnings/(loss) per ordinary share attributable to So-Young International Inc. - basic | (per share) | (0.61) | (0.09) | (0.08) | 0.05 | |
Net earnings/(loss) per ordinary share attributable to So-Young International Inc. - diluted | (per share) | ¥ (0.61) | $ (0.09) | ¥ (0.08) | ¥ 0.05 | |
Cost of revenues | |||||
Share-based compensation expenses included in: | |||||
Share-based compensation expenses | ¥ (8,282) | $ (1,201) | ¥ (18,768) | ¥ (18,327) | |
Sales and marketing expenses | |||||
Share-based compensation expenses included in: | |||||
Share-based compensation expenses | (6,781) | (983) | (9,808) | (6,711) | |
General and administrative expenses | |||||
Share-based compensation expenses included in: | |||||
Share-based compensation expenses | (19,021) | (2,758) | (56,705) | (46,001) | |
Research and development expenses | |||||
Share-based compensation expenses included in: | |||||
Share-based compensation expenses | (9,252) | (1,341) | (20,869) | (21,131) | |
Information services and others | |||||
Revenues | |||||
Total revenues | 888,475 | 128,817 | 1,304,455 | 962,089 | |
Reservation services | |||||
Revenues | |||||
Total revenues | 128,668 | 18,655 | 276,052 | ¥ 332,899 | |
Sales of equipment and maintenance services | |||||
Revenues | |||||
Total revenues | ¥ 240,731 | $ 34,903 | ¥ 111,956 | ||
[1] Both Class A and Class B ordinary shares are included in the calculation of the weighted average number of ordinary shares outstanding, basic and diluted. |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME(LOSS) (Parenthetical) | 12 Months Ended | ||
Dec. 31, 2022 item shares | Dec. 31, 2021 item shares | Dec. 31, 2020 item shares | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) | |||
Number of ADS represents 10 Class A ordinary shares | item | 13 | 13 | 13 |
Number of ordinary shares for each ADS | shares | 10 | 10 | 10 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY ¥ in Thousands, $ in Thousands | Total shareholder's equity attributable to shareholders of the company Adjustment CNY (¥) | Total shareholder's equity attributable to shareholders of the company CNY (¥) | Ordinary shares Class A Ordinary Shares CNY (¥) shares | Ordinary shares Class B Ordinary shares CNY (¥) shares | Treasury stock CNY (¥) shares | Additional paid-in capital CNY (¥) | Accumulated deficit Adjustment CNY (¥) | Accumulated deficit CNY (¥) | Statutory reserves CNY (¥) | Accumulated other comprehensive income/(loss) CNY (¥) | Non-controlling Interests CNY (¥) | Adjustment CNY (¥) | CNY (¥) shares | USD ($) shares |
Balance at beginning at Dec. 31, 2019 | ¥ 2,642,638 | ¥ 221 | ¥ 37 | ¥ 2,799,336 | ¥ (259,251) | ¥ 10,562 | ¥ 91,733 | ¥ 2,642,638 | ||||||
Balance at beginning (in shares) at Dec. 31, 2019 | shares | 68,621,718 | 12,000,000 | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net income (loss) | 5,807 | 5,807 | 5,807 | |||||||||||
Net income/(loss) | 4,877 | |||||||||||||
Share-based compensation expenses | 92,170 | 92,170 | 92,170 | |||||||||||
Issuance of Class A ordinary shares from exercise of share options | 765 | ¥ 3 | 762 | ¥ 765 | ||||||||||
Issuance of Class A ordinary shares from exercise of share options (in shares) | shares | 1,090,441 | 1,090,000 | 1,090,000 | |||||||||||
Foreign currency translation adjustment | (144,225) | (144,225) | ¥ (144,225) | |||||||||||
Balance at end at Dec. 31, 2020 | ¥ (784) | 2,596,371 | ¥ 224 | ¥ 37 | 2,892,268 | ¥ (784) | (254,228) | 10,562 | (52,492) | ¥ (784) | 2,596,371 | |||
Balance at end (in shares) at Dec. 31, 2020 | shares | 69,712,159 | 12,000,000 | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net income (loss) | (8,371) | (8,371) | (8,371) | |||||||||||
Net income/(loss) | (37,636) | |||||||||||||
Share-based compensation expenses | 106,150 | 106,150 | 106,150 | |||||||||||
Issuance of Class A ordinary shares from exercise of share options | 1,150 | ¥ 6 | 1,144 | ¥ 1,150 | ||||||||||
Issuance of Class A ordinary shares from exercise of share options (in shares) | shares | 1,773,900 | 1,774,000 | 1,774,000 | |||||||||||
Acquisition of subsidiary | ¥ 76,905 | ¥ 76,905 | ||||||||||||
Statutory reserves | (9,769) | 9,769 | ||||||||||||
Repurchase of Class A ordinary shares | (217,712) | ¥ (217,712) | (217,712) | |||||||||||
Repurchase of Class A ordinary shares (in shares) | shares | (2,643,692) | |||||||||||||
Reclassification of non-controlling interests in mezzanine equity and net loss attributable to non-controlling interest shareholders (see Note 6) | (6,060) | (6,060) | ||||||||||||
Foreign currency translation adjustment | (31,399) | (31,399) | (31,399) | |||||||||||
Balance at end at Dec. 31, 2021 | 2,446,189 | ¥ 230 | ¥ 37 | ¥ (217,712) | 2,999,562 | (272,368) | 20,331 | (83,891) | 70,845 | 2,517,034 | ||||
Balance at end (in shares) at Dec. 31, 2021 | shares | 71,486,059 | 12,000,000 | ||||||||||||
Treasury Stock, Value, Ending Balance at Dec. 31, 2021 | 217,712 | |||||||||||||
Treasury stock, ending balance (in shares) at Dec. 31, 2021 | shares | (2,643,692) | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Impact of adoption of credit loss guidance | 2,446,189 | |||||||||||||
Net income (loss) | (65,554) | $ (9,504) | ||||||||||||
Net income/(loss) | (65,554) | (65,554) | (553) | (66,107) | $ (9,584) | |||||||||
Share-based compensation expenses | 43,336 | 43,336 | 43,336 | |||||||||||
Issuance of Class A ordinary shares from exercise of share options | 1,079 | ¥ 6 | 1,073 | ¥ 1,079 | ||||||||||
Issuance of Class A ordinary shares from exercise of share options (in shares) | shares | 1,579,928 | 1,580,000 | 1,580,000 | |||||||||||
Statutory reserves | (8,696) | 8,696 | ||||||||||||
Repurchase of Class A ordinary shares | (15,123) | ¥ (15,123) | ¥ (15,123) | |||||||||||
Repurchase of Class A ordinary shares (in shares) | shares | (1,578,975) | |||||||||||||
Capital contribution from non-controlling interests | 661 | 661 | ||||||||||||
Change of the capital from non-controlling interest shareholder | 38,990 | 38,990 | ||||||||||||
Foreign currency translation adjustment | 87,998 | 87,998 | 87,998 | |||||||||||
Balance at end at Dec. 31, 2022 | ¥ 2,497,925 | ¥ 236 | ¥ 37 | ¥ (232,835) | ¥ 3,043,971 | ¥ (346,618) | ¥ 29,027 | ¥ 4,107 | ¥ 109,943 | 2,607,868 | $ 378,103 | |||
Balance at end (in shares) at Dec. 31, 2022 | shares | 73,065,987 | 12,000,000 | ||||||||||||
Treasury Stock, Value, Ending Balance at Dec. 31, 2022 | 232,835 | 33,758 | ||||||||||||
Treasury stock, ending balance (in shares) at Dec. 31, 2022 | shares | (4,222,667) | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Impact of adoption of credit loss guidance | ¥ 2,497,925 | $ 362,163 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Cash flows from operating activities: | ||||
Net income/(loss) | ¥ (66,107) | $ (9,584) | ¥ (37,636) | ¥ 4,877 |
Depreciation of property and equipment and amortization of intangible assets | 47,086 | 6,827 | 30,081 | 14,087 |
Inventory provision | (1,681) | (244) | ||
Impairment of amount due from related parties | 860 | |||
Impairment of long-term investment | 7,945 | 1,152 | 17,850 | 0 |
Impairment of property and equipment | 1,350 | 196 | 0 | 0 |
Impairment of other current assets | 5,421 | 786 | ||
Impairment of goodwill and intangible assets | 65,879 | |||
Loss on disposal of property and equipment | 5 | 1 | 244 | |
Expected credit losses | 13,224 | 1,917 | 15,498 | 6,305 |
Share-based compensation expenses | 43,336 | 6,283 | 106,150 | 92,170 |
Lease expense to reduce right-of-use assets | 38,588 | 5,595 | 33,668 | 31,990 |
Share of losses of equity method investee | 17,223 | 2,497 | 1,522 | 4,279 |
Exchange losses | 492 | 71 | 4,766 | 1,118 |
Deferred income tax | (24,803) | (3,596) | 1,652 | (21,364) |
Fair value change of short-term investments | 49 | 7 | 8,289 | (6,374) |
Changes in operating assets and liabilities: | ||||
Trade receivables | 13,564 | 1,967 | 14,580 | (32,596) |
Receivables from online payment platforms | 4,077 | 591 | (2,682) | (2,753) |
Prepayment and other current assets | (48,259) | (6,997) | (43,991) | 24,270 |
Inventories, net | (27,988) | (4,058) | 7,869 | |
Other non-current assets | (51,340) | (7,444) | (36,968) | (1,694) |
Contract liabilities | (28,996) | (4,204) | (28,306) | 41,459 |
Taxes payable | 27,243 | 3,950 | (13,010) | (4,875) |
Salary and welfare payables | (31,092) | (4,508) | (4,838) | (5,341) |
Amounts due to/(from) related parties | 3,898 | 565 | (307) | 5 |
Operating lease liabilities | (40,505) | (5,873) | (35,764) | (33,518) |
Accrued expenses and other liabilities | (15,603) | (2,262) | (21,119) | 67,135 |
Net cash provided by/(used in) operating activities | (112,873) | (16,365) | 84,287 | 179,180 |
Cash flows from investing activities: | ||||
Purchase of property and equipment and intangible assets | (15,707) | (2,277) | (45,056) | (36,962) |
Purchase of short-term investments and term deposits | (1,205,770) | (174,820) | (1,919,804) | (2,802,999) |
Proceeds from maturities of short-term investments and term deposits | 764,785 | 110,883 | 3,052,869 | 3,131,878 |
Cash paid for long-term investments, including prepayment for new investment | (102,945) | (125,000) | ||
Proceeds from disposal of property and equipment | 102 | 15 | 180 | 10 |
Acquisition of subsidiaries, net of cash acquired | (97,492) | (14,135) | (636,872) | (40,911) |
Loans advanced to related party (see Note 21) | (18,130) | (2,629) | (15,720) | (16,889) |
Proceeds from repayment of the loan advanced to related party | 7,170 | 14,718 | ||
Net cash provided by/(used in) investing activities | (572,212) | (82,963) | 339,822 | 123,845 |
Cash flows from financing activities: | ||||
Cash paid for repurchase of ordinary shares | (15,123) | (2,193) | (217,712) | |
Proceeds from capital injection of investee | 661 | 96 | ||
Repayment of short-term borrowing | (6,500) | |||
Proceeds from exercise of share options | 876 | 127 | 969 | 696 |
Net cash used in financing activities | (13,586) | (1,970) | (216,743) | (5,804) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 55,862 | 8,099 | (9,242) | (52,721) |
Net increase/(decrease) in cash, cash equivalents and restricted cash | (642,809) | (93,199) | 198,124 | 244,500 |
Cash, cash equivalents and restricted cash at the beginning of the year | 1,343,809 | 194,834 | 1,145,685 | 901,185 |
Cash, cash equivalents and restricted cash at the end of the year | 701,000 | 101,635 | 1,343,809 | 1,145,685 |
Supplemental disclosures of cash flow information: | ||||
Cash paid for income taxes | ¥ (11,360) | $ (1,647) | ¥ (31,170) | ¥ (24,070) |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) |
Reconciliation to amounts on consolidated balance sheets: | ||||
Cash and cash equivalents | ¥ 694,420 | $ 100,681 | ¥ 1,331,968 | ¥ 1,127,055 |
Restricted cash | 6,580 | 954 | 11,841 | 18,630 |
Total cash, cash equivalents and restricted cash | ¥ 701,000 | $ 101,635 | ¥ 1,343,809 | ¥ 1,145,685 |
Operations and principal activi
Operations and principal activities | 12 Months Ended |
Dec. 31, 2022 | |
Operations and principal activities | |
Operations and principal activities | 1. Operations and principal activities (a) Principal activities So-Young International Inc., (the “Company” or “So-Young”), is a leading online platform on consumption healthcare services focusing on discretionary medical treatments. The Company, through its consolidated subsidiaries and consolidated variable interest entities (“VIEs”) and the subsidiaries of the VIE (collectively referred to as the “Group”) is primarily engaged in the operation of the platform that enables users to both discover reliable content and share their own experience on medical aesthetics procedures, and leads users to reserve treatment services from medical aesthetic service providers for offline treatment in the People’s Republic of China (the “PRC” or “China”) and internationally. As of December 31, 2022, the Company’s major subsidiaries, consolidated VIEs and VIEs’ subsidiaries are as follows: Percentage of Place and year of direct or indirect incorporation or economic year of acquisition ownership Principal activities Subsidiaries So-Young Hong Kong Limited (“So-Young HK”) Hong Kong, 2014 100 % Investment holding So-Young High Tech Korea Co., Ltd. Korea, 2014 100 % Technology advisory services Beijing So-Young Wanwei Technology Consulting Co., Ltd. (“So-Young Wanwei”) the PRC, 2014 100 % Management consulting services So-Young (China) Network Technology Co., Ltd. (“So-Young China”) the PRC, 2018 100 % Management consulting services Wuhan Zeqi Technology Co., Ltd. (“Wuhan Zeqi”) the PRC, 2021 100 % Investment holding Wuhan Miracle Laser Systems, Inc. (“Wuhan Miracle”) the PRC, 2021 87.60 % Production, sales and agency of equipment Wuhan Haoweilai Technology Co., Ltd. (“Wuhan Haoweilai”) the PRC, 2021 87.60 % Production, sales and agency of equipment Shanghai Jiading Tonghua Micro Finance Co., Ltd. (“Tonghua Micro Finance”) the PRC, 2021 100 % Micro finance services VIEs Beijing So-Young Technology Co., Ltd. (“Beijing So-Young”) the PRC, 2013 100 % Internet information and technology advisory services Beijing Chiyan Medical Beauty Consulting Co., Ltd. (“Chiyan Beijing”) the PRC, 2019 100 % Internet information and technology advisory services VIE’s Subsidiaries Beijing So-Young Souyang Investment and Management Co., Ltd. the PRC, 2016 100 % Management consulting services Beijing Meifenbao Technology Co., Ltd. the PRC, 2016 100 % Technology advisory services Beijing So-Young Qingyang Medical Instrument Co., Ltd. the PRC, 2017 100 % Sales of medical equipment Beijing Shengshi Meiyan Culture Co., Ltd. the PRC, 2018 100 % Internet culture services Jinbaoxin Shenzhen Insurance Brokers Co., Ltd. (“Jinbaoxin”) the PRC, 2020 100 % Technology advisory services Shanghai Leya Health Technology Co., Ltd. (“Leya”) the PRC, 2020 63.37 % Technology advisory services Hainan Yixian Daka Technology Co., Ltd. (“Yixian Daka”) the PRC, 2021 100 % Technology advisory services Hainan So-Young Medical Technology Co., Ltd the PRC, 2021 100 % Sales and agency of equipment 1. Operations and principal activities (Continued) (a) Principal activities (Continued) Initial Public Offering In May 2019, the Company completed its IPO on the Nasdaq Global Market and the underwriters subsequently exercised their over-allotment option in May 2019. In the offering, 14,950,000 American depositary shares (“ADSs”), representing 11,500,000 Class A Ordinary shares, were issued and sold to the public at a price of US$13.80 per ADS. The net proceeds to the Company from the IPO, after deducting commission and offering expenses, were approximately US$187.5 million (RMB1,267 million). Upon the completion of IPO, 66,613,419 Class A ordinary shares with one vote per share and 12,000,000 Class B ordinary shares with thirty votes per share were issued upon re-designation of ordinary shares and the conversion of all redeemable convertible preferred shares. In addition, the authorized share capital of the Company was US$425 divided into 850,000,000 shares, comprising (i) 750,000,000 Class A ordinary shares of a par value of US$0.0005 each, (ii) 20,000,000 Class B ordinary shares of a par value of US$0.0005 each and (iii) 80,000,000 shares of a par value of US$0.0005 each of such class or classes (however designated) as the board of directors may determine in accordance with the amended and restated memorandum and articles of association. (b) VIE arrangements between the Company’s PRC subsidiaries As of December 31, 2022, the Company, through the wholly foreign-owned enterprise (“WFOE”), entered into the following contractual arrangements with the VIEs and its shareholders that enabled the Company to (1) have power to direct the activities that most significantly affect the economic performance of the VIEs, and (2) bear the risks and enjoy the rewards normally associated with ownership of the VIEs. Accordingly, the Company is the ultimate primary beneficiary of the VIEs. Consequently, the financial results of the VIEs were included in the Group’s consolidated financial statements. i) Contracts that give the Company effective control of the VIEs Exclusive Call Option Agreement. Powers of Attorney. 1. Operations and principal activities (Continued) (b) VIE arrangements between the Company’s PRC subsidiaries (Continued) i) Contracts that give the Company effective control of the VIEs (Continued) Equity Interest Pledge Agreement. Spousal Consent Letter. ii) Contracts that enable the Company to receive substantially all of the economic benefits from the VIE Exclusive business cooperation agreements. iii) Risks in relation to VIE structure The Company believes that the contractual arrangements between the WFOE and its VIEs and its respective shareholders are in compliance with PRC laws and regulations and are legally enforceable. However, uncertainties in the PRC legal system could limit the WFOE’s ability to enforce the contractual arrangements. If the legal structure and contractual arrangements were found to be in violation of the PRC laws and regulations, the PRC government could: ● revoke the business and operating licenses of the Company’s PRC subsidiaries and the VIEs; ● discontinue or restrict the operations of any related-party transactions between the Company’s PRC subsidiaries and the VIEs; ● limit the Group’s business expansion in China; ● impose fines or other requirements with which the Company’s PRC subsidiaries and the VIEs may not be able to comply; ● take other regulatory or enforcement actions against the Group that could be harmful to the Group’s business; or ● require the Company or the Company’s PRC subsidiaries or the VIEs to restructure the relevant ownership structure or operations. 1. Operations and principal activities (Continued) (b) VIE arrangements between the Company’s PRC subsidiaries (Continued) iii) Risks in relation to VIE structure (continued) The Company’s ability to conduct its business may be negatively affected if the PRC government were to carry out any of the aforementioned actions. As a result, the Company may not be able to consolidate its VIEs in its consolidated financial statements as it may lose the ability to exert effective control over the VIEs and its shareholders and it may lose the ability to receive economic benefits from the VIEs, if any. In the opinion of management, the likelihood of loss in respect of the Group’s current ownership structure or the contractual arrangements with its VIEs is remote. The nominee shareholders of VIE are also the beneficiary owners of the Company. The interests of the VIE’s nominee shareholders may differ from the interests of the Company as a whole. The Company cannot assert that when conflicts of interest arise, the VIE shareholders will act in the best interests of the Company or that conflicts of interests will be resolved in the Company’s favor. Currently, the Company does not have existing arrangements to address potential conflicts of interest the VIE shareholders may encounter in their capacity as beneficial owners and directors of the VIEs, on the one hand, and as beneficial owners and directors of the Company, on the other hand. The Company relies on the VIE shareholders, as directors and executive officers of the Company, to fulfill their fiduciary duties and abide by laws of the PRC and Cayman Islands and act in the best interest of the Company. If the Company cannot resolve any conflicts of interest or disputes between the Company and the VIE shareholders, the Company would have to rely on legal proceedings, which could result in disruption of its business, and there is substantial uncertainty as to the outcome of any such legal proceedings.Furthermore, the enforceability, and therefore the benefits, of the contractual agreements between the Company and the VIE depend on these individuals enforcing the contracts. There is a risk that the benefits of ownership between the Company and the VIE may not be aligned in the future. Given the significance and importance of the VIEs, there would be a significant negative impact to the Company if these contracts were not enforced. The current shareholders of VIEs have no current interest in seeking to act contrary to the contractual arrangements. However, to further protect the investors’ interest from any risk that shareholders of VIEs may act contrary to the contractual arrangements, the Company, through WFOE, entered into an irrevocable power of attorney with all of the shareholders of VIEs. Through the power of attorney, all shareholders of VIEs have entrusted WFOE as its proxy to exercise their rights as the shareholders of VIEs with respect to an aggregate of 100% of the equity interests in VIEs. The Ministry of Commerce of the People’s Republic of China, or MOFCOM, published a discussion draft of the proposed Foreign Investment Law in January 2015, or the 2015 Draft FIL. Among other things, the 2015 Draft FIL adopts the principle of “substance over form” in determining whether an entity is a domestic enterprise or a foreign-invested enterprise, or a FIE, by introducing the concept of “de facto control”. Specifically, entities established in China but “controlled” by foreign investors will be treated as FIEs, whereas an entity set up in a foreign jurisdiction would nonetheless be, upon market entry clearance by the MOFCOM, treated as a PRC domestic investor provided that the entity is “controlled” by PRC entities and/or citizens. In this context, “control” is broadly defined in the 2015 Draft FIL to cover the scenario of having the power to exert decisive influence, via contractual or trust arrangements, over the subject entity’s operations, financial matters or other key aspects of business operations. The Group is currently operating under the “variable interest entity” structure, or VIE structure, may be deemed as FIEs according to the 2015 Draft FIL and thus subject to the foreign investment restrictions in the PRC. On December 26, 2018, the Standing Committee of the National People’s Congress of the PRC published a discussion draft of the proposed Foreign Enterprise Investment Law, or the 2018 Draft FEIL, the updated version of which was reviewed and discussed by the National People’s Congress of the PRC on March 11, 2019. The 2018 Draft FEIL does not explicitly stipulate contractual arrangements as a form of foreign investment, nor does it include the concept of “de facto control”. However, the draft law contains a catch-all provision under the definition of “foreign investment” that will include investments made by foreign investors in China through means stipulated by laws or administrative regulations or other methods prescribed by the State Council. Based on the 2018 Draft FEIL, it is likely that prospective laws, administrative regulations or provisions of the State Council may deem contractual arrangements as a way of foreign investment. 1. Operations and principal activities (Continued) (b) VIE arrangements between the Company’s PRC subsidiaries (Continued) iii) Risks in relation to VIE structure (continued) There is substantial uncertainty with respect to the final content, interpretation, adoption timeline and effective date of the 2015 Draft FIL and/or the 2018 Draft FEIL. In the event that the Group’s variable interest entity contractual arrangements under which the Group operates its business were not treated as a domestic investment and its operations are classified in the “restricted” or “prohibited” industry in the “negative list” under the 2015 Draft FIL or the 2018 Draft FEIL when officially enacted, the Group might be required to obtain market entry clearance. If the restrictions and prohibitions on FIE included in the Draft FIE Law are enacted and enforced in their current form, the Group’s ability to use the contractual arrangements with its VIEs and the Group’s ability to conduct business through the VIEs could be severely limited. For example, the National People’s Congress approved the Foreign Investment Law on March 15, 2019 and the State Council approved the Regulation on Implementing the Foreign Investment Law (the “Implementation Regulations”) on December 26, 2019, effective from January 1, 2020. The MOFCOM and the State Administration for Market Regulation jointly issued the Measures for Reporting of Foreign Investment Information on December 30, 2019, effective from January 1, 2020 and replaced the Interim Administrative Measures for the Record-filing of the Establishment and Modification of Foreign-invested Enterprises. The Foreign Investment Law and the Implementation Regulations do not touch the relevant concepts and regulatory regimes that were historically suggested for the regulation of VIE structures, and thus this regulatory topic remains unclear under the Foreign Investment Law. Since the Foreign Investment Law and the Implementation Regulations are new, there are substantial uncertainties exist with respect to its implementation and interpretation and it is also possible that variable interest entities will be deemed as foreign invested enterprises and be subject to restrictions in the future. Such restrictions may cause interruptions to our operations, products and services and may incur additional compliance cost, which may in turn materially and adversely affect the Group’s business, financial condition and results of operations. 1. Operations and principal activities (Continued) (b) VIE arrangements between the Company’s PRC subsidiaries (Continued) iii) Risks in relation to VIE structure (Continued) The following consolidated financial information of the VIEs and its subsidiaries taken as a whole as of December 31, 2021 and 2022 and for the years ended December 31, 2020, 2021 and 2022 was included in the consolidated financial statements of the Group. Transactions between the VIEs and its subsidiaries are eliminated in the financial information presented below: As of December 31, 2021 2022 RMB RMB Assets Current assets: Cash and cash equivalents 255,655 170,263 Restricted cash and term deposits 15,119 14,461 Trade receivables 33,817 20,468 Inventories, net 51 9,738 Receivables from online payment platforms 13,476 11,378 Amounts due from Group companies 116,817 125,165 Amounts due from related parties 14,038 33,297 Prepayment and other current assets 75,772 36,126 Total current assets 524,745 420,896 Non-current assets: Investment in subsidiaries 35,082 34,691 Long-term investments 152,082 134,959 Intangible assets 35,877 31,671 Goodwill 684 684 Property and equipment, net 23,060 24,407 Deferred tax assets 32,554 26,083 Operating lease right-of-use assets 57,512 35,189 Other non-current assets 9,486 12,777 Total non-current assets 346,337 300,461 Total assets 871,082 721,357 Liabilities Current liabilities: Taxes payable 35,821 49,301 Contract liabilities 99,427 76,242 Salary and welfare payables 47,702 31,928 Amounts due to Group companies 339,951 244,404 Amounts due to related parties 681 5,895 Accrued expenses and other current liabilities 194,791 186,898 Operating lease liabilities-current 28,269 30,971 Total current liabilities 746,642 625,639 Non-current liabilities: Operating lease liabilities-non current 39,390 11,507 Deferred tax liabilities 7,431 6,373 Total non-current liabilities 46,821 17,880 Total liabilities 793,463 643,519 1. Operations and principal activities (Continued) (b) VIE arrangements between the Company’s PRC subsidiaries (Continued) iii) Risks in relation to VIE structure (Continued) For the Year Ended December 31, 2020 2021 2022 RMB RMB RMB Third-party revenues 1,294,888 1,573,161 992,705 Inter-company revenues — 358 12,203 Total revenues 1,294,888 1,573,519 1,004,908 Third-party costs (182,736) (221,286) (236,094) Inter-company costs (365,678) (607,016) (253,929) Total costs (548,414) (828,302) (490,023) Total operating expenses (762,995) (822,210) (533,684) Income /(loss) from non-operations 4,281 (7,557) (7,288) Loss before income tax expense (12,240) (84,550) (26,087) Income tax (expense)/benefits (11,433) (23,524) 1,969 Net loss (23,673) (108,074) (24,118) Net loss attributable to non-controlling interests 930 28,533 2,328 Net loss attributable to So-Young International Inc. (22,743) (79,541) (21,790) For the Year Ended December 31, 2020 2021 2022 RMB RMB RMB Net cash used in Group companies (148,574) (846,063) (302,028) Others operating activities 428,307 538,711 278,354 Net cash provided by/(used in) operating activities 279,733 (307,352) (23,674) Purchase of short-term investments (354,235) (40,000) (40,500) Proceeds from maturities of short-term investments 403,000 110,000 36,000 Acquisitions of subsidiaries, net of cash acquired — (902) — Loans to Group companies — (164,000) (37,000) Repayments from Group companies — 82,006 — Other investing activities (196,768) (26,244) (33,444) Net cash used in investing activities (148,003) (39,140) (74,944) Borrowings under loan from Group companies — 289,903 63,548 Repayments to borrowings under loan from Group companies — (68,677) (56,252) Other financing activities (6,500) — 661 Net cash (used in)/provided by financing activities (6,500) 221,226 7,957 Net increase/(decrease) in cash, cash equivalents and restricted cash 125,230 (125,266) (90,661) In accordance with various contractual agreements, the Company has the power to direct the activities of the VIEs and can have assets transferred out of the VIEs. Therefore, the Company considers that there are no assets in the respective VIEs that can be used only to settle obligations of the respective VIEs, except for the registered capital of the VIEs amounting to approximately RMB4,547 and RMB4,547 as of December 31, 2021 and 2022, respectively. As the respective VIEs and its subsidiaries are incorporated as limited liability companies under the PRC Company Law, creditors do not have recourse to the general credit of the Company for the liabilities of the respective VIEs. There is currently no contractual arrangement that would require the Company to provide additional financial support to the VIEs. As the Group is conducting certain businesses in the PRC through the VIEs, the Group may provide additional financial support on a discretionary basis in the future, which could expose the Group to a loss. The VIEs have paid RMB125.1 million, RMB826.5 million and RMB264.0 million of service fee to the WFOE for the years ended December 31, 2020, 2021 and 2022, respectively. There is no VIE in the Group where the Company or any subsidiary has a variable interest but is not the primary beneficiary. 1. Operations and principal activities (Continued) (b) VIE arrangements between the Company’s PRC subsidiaries (Continued) Liquidity The Group had net income of RMB4,877, and net loss of RMB37,636 and RMB66,107 for the years ended December 31, 2020, 2021 and 2022, respectively. Net cash provided by operating activities was RMB179,180 and RMB84,287 for the years ended December 31, 2020 and 2021, respectively, and net cash used in operating activities was RMB112,873 for the year ended December 31, 2022. Accumulated deficit was RMB272,368 and RMB346,618 as of December 31, 2021 and 2022, respectively. The Group assesses its liquidity by its ability to generate cash from operating activities and attract investors’ investments. Historically, the Group has relied principally on both operational sources of cash and non-operational sources of financing from investors to fund its operations and business development. The Group’s ability to continue as a going concern is dependent on management’s ability to successfully execute its business plan, which includes revenues while controlling operating expenses, as well as, generating operational cash flows and continuing to gain support from outside sources of financing. Based on the cash flows projection from operating activities and existing balance of cash and cash equivalents and restricted cash, management is of the opinion that the Group has sufficient funds for sustainable operation and it will be able to meet its payment obligations from operations for the next twelve months from the issuance of the consolidated financial statements. Based on the above considerations, the Group’s consolidated financial statements have been prepared on a going concern basis, which contemplate the realization of assets and liquidation of liabilities during the normal course of operations. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies (a) Basis of presentation and consolidation The consolidated financial statements of the Group have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Significant accounting policies followed by the Group in the preparation of the accompanying consolidated financial statements are summarized below. (b) Principles of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries, the VIEs and subsidiaries of the VIEs for which the Company are the primary beneficiary. Subsidiaries are those entities in which the Company, directly or indirectly, controls more than one half of the voting power, has the power to appoint or remove the majority of the members of the board of directors, or to cast a majority of votes at the meeting of the board of directors, or has the power to govern the financial and operating policies of the investee under a statute or agreement among the shareholders or equity holders. A consolidated VIE is an entity in which the Company, or its subsidiary, through contractual arrangements, has the power to direct the activities that most significantly impact the entity’s economic performance, bears the risks of and enjoys the rewards normally associated with ownership of the entity, and therefore the Company or its subsidiary is the primary beneficiary of the entity. All transactions and balances among the Company, its subsidiaries, the consolidated VIE and subsidiaries of the VIE have been eliminated upon consolidation. 2. Summary of Significant Accounting Policies (Continued) (c) Use of estimates The preparation of the Group’s consolidated financial statements in conformity with the U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities at the balance sheet date and reported revenues and expenses during the reported years in the consolidated financial statements and accompanying notes. Significant accounting estimates include, but are not limited to, valuation of acquired intangible assets and property and equipment, impairment of goodwill and definite-lived intangible asset and useful lives of intangible assets. Actual results could differ from those estimates and such differences may be material to the consolidated financial statements. (d) Functional currency and foreign currency translation The Group uses Renminbi (“RMB”) as its reporting currency. The functional currency of the Company and its overseas subsidiaries which incorporated in the Cayman Islands and Hong Kong is United States dollars (“US$” or “USD”). The functional currency of the Company’s subsidiary incorporated in Korea is Korea Won. The functional currency of the Group’s PRC entities is RMB. In the consolidated financial statements, the financial information of the Company and other entities located outside of the PRC have been translated into RMB. Assets and liabilities are translated at the exchange rates on the balance sheet date, equity amounts are translated at historical exchange rates, and revenues, expenses, gains and losses are translated using the average rate for the period. Translation adjustments are reported as foreign currency translation adjustments and are shown as a component of other comprehensive income/(loss) in the consolidated statements of comprehensive income/(loss). Foreign currency transactions denominated in currencies other than the functional currency are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency using the applicable exchange rates at the balance sheet dates. Net gains and losses resulting from foreign exchange transactions are included in exchange losses in the consolidated statements of comprehensive income/(loss). (e) Convenience translation Translations of balances in the consolidated balance sheets, consolidated statements of comprehensive income/(loss) and consolidated statements of cash flows from RMB into USD as of and for the year ended December 31, 2022 are solely for the convenience of the reader and were calculated at the rate of US$1.00 = RMB6.8972, representing the exchange rate set forth in the H.10 statistical release of the Federal Reserve Board on December 30, 2022. No representation is made that the RMB amounts represent or could have been, or could be, converted, realized or settled into USD at that rate on December 31, 2022, or at any other rate. (f) Fair value measurements Fair value reflects the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. 2. Summary of Significant Accounting Policies (Continued) (f) Fair value measurements (Continued) The Group applies a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Accounting guidance specifies a hierarchy of valuation techniques, which is based on whether the inputs into the valuation techniques are observable or unobservable. The hierarchy is as follows: Level 1—Valuation techniques in which all significant inputs are unadjusted quoted prices from active markets for assets or liabilities that are identical to the assets or liabilities being measured. Level 2—Valuation techniques in which significant inputs include quoted prices from active markets for assets or liabilities that are similar to the assets or liabilities being measured and/or quoted prices for assets or liabilities that are identical or similar to the assets or liabilities being measured from markets that are not active. Also, model-derived valuations in which all significant inputs and significant value drivers are observable in active markets are Level 2 valuation techniques. Level 3—Valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Unobservable inputs are valuation technique inputs that reflect the Group’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. Accounting guidance also describes three main approaches to measure the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. When available, the Group uses quoted market prices to determine the fair value of an asset or liability. If quoted market prices are not available, the Group will measure fair value using valuation techniques that use, when possible, current market-based or independently sourced market parameters, such as interest rates and currency rates. See Note 20 Fair Value Measurement for additional information. (g) Cash and cash equivalents Cash and cash equivalents consist of cash on hand and demand deposits which have original maturities of three months or less and are readily convertible to known amount of cash. (h) Restricted cash Cash that is restricted as to withdrawal or for use or pledged as security is reported separately on the face of the consolidated balance sheets as restricted cash. Restricted cash represents cash received from medical aesthetic service providers and reserved in a bank supervised account for purchasing the services of the Company and the guarantee deposit. (i) Term deposits Term deposits represent time deposits placed with banks with original maturities of more than three months. Interest earned is recorded as interest income in the consolidated statements of comprehensive income/(loss) during the years presented. The Group’s term deposits were nil and RMB875,955 as of December 31, 2021 and 2022, respectively. 2. Summary of Significant Accounting Policies (Continued) (j) Trade receivables and other receivables The Group’s trade receivables and other receivables including loans are measured at amortized cost and reported on the consolidated balance sheets at outstanding principal adjusted for any write-offs and the allowance for credit losses. Starting from January 1, 2020, the Group adopted ASU 2016-13 and estimated the allowance for credit losses to reflect the Group’s estimated expected losses. The Group assesses the allowance for credit losses, mainly based on the past collection experience as well as consideration of current and future economic conditions and changes in the Group’s customer collection trends. Interest income from these instruments is using the effective interest rate method if applicable. (k) Current Expected Credit losses Starting from January 1, 2020, the Group adopted ASU No. 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASC Topic 326”), which amends previously issued guidance regarding the impairment of financial instruments by creating an impairment model that is based on expected losses rather than incurred losses. The Group used a modified retrospective approach with a cumulative effect increases of approximately RMB784 thousands recorded in accumulated deficit. The Group’s trade receivables, prepayment and other current assets, other non-current assets, cash and cash equivalents, restricted cash and term deposits are within the scope of ASC Topic 326. The Group’s expected credit loss of cash and cash equivalents, restricted cash and term deposits within the scope of ASC Topic 326 were immaterial. To estimate expected credit losses, the Group has identified the relevant risk characteristics of its customers and the related receivables and other receivables which include size, type of the services or the products the Group provides, or a combination of these characteristics. Receivables with similar risk characteristics have been grouped into pools. For each pool, the Group considers the past collection experience, current economic conditions, future economic conditions (external data and macroeconomic factors) and changes in the Group’s customer collection trends. This is assessed at each quarter based on the Group’s specific facts and circumstances. No significant impact of changes in the assumptions since adoption. The Group recorded a provision for current expected credit loss. Write-offs charged against the allowance are not material for the years ended December 31, 2021 and 2022, respectively. The following table sets out movements of the allowance for doubtful accounts for the years ended December 31, 2021 and 2022: For the Year Ended December 31, 2020 2021 2022 RMB RMB RMB Beginning balance 784 7,089 29,210 Allowance arisen from business combination — 6,623 — Additional allowance for credit losses, net of recoveries 6,305 15,498 13,224 Ending balance 7,089 29,210 42,434 2. Summary of Significant Accounting Policies (Continued) (l) Inventories Inventories are stated at the lower of cost and net realizable value. Cost of inventories is determined using the weighted average cost method. Adjustments are recorded to write down the cost of inventories to the estimated net realizable value due to slow-moving merchandise and damaged goods, which is dependent upon factors such as inventory aging, historical and forecasted consumer demand, and market conditions that impact pricing. In addition to the cost of materials and direct labor, an appropriate proportion of production overhead is included in the cost of inventories. Once inventory is written-down, a new, lower-cost basis for that inventory is established and subsequent changes in facts and circumstances do not result in the restoration or increase in that newly established cost basis. The Group classifies its inventories to raw materials, semi-finished products and finished products. Raw materials and semi-finished products include purchased materials, components and supplies to be used in production. Finished products include products manufactured by the Group and products purchased for resale. (m) Investments Short-term investments mainly include investments in financial instruments with a variable interest rate. In accordance with ASC 825—“Financial Instruments”, for investments in financial instruments with a variable interest rate indexed to time float, the Group elected the fair value method at the date of initial recognition and carried these investments at fair value. Changes in the fair value are reflected in the consolidated statements of comprehensive income/(loss) as other income/(expenses). The Company’s long-term investments consist of investments in privately held companies. In accordance with ASC 323 “Investments-Equity Method and Joint Ventures”, the Group applies the equity method of accounting to equity investments in common stock, over which it has significant influence but does not own majority equity interest or control. In January 2016, the FASB issued ASU No. 2016-01 Financial Instruments-Overall (Subtopic 825-10): “Recognition and Measurement of Financial Assets and Financial Liabilities”, which requires all equity investments to be measured at fair value with changes in the fair value recognized through non-operating income (other than those accounted for under equity method of accounting or those that result in consolidation of the investee). Effective January 1, 2018 with the adoption of ASU 2016-01, the Group has elected to use the measurement alternative to account for the equity investments, over which the Company does not have significant influence, or investments in shares that are not ordinary shares or in-substance ordinary shares and that do not have readily determinable fair value, and therefore carries these investments at cost adjusted for changes from observable transactions for identical or similar investments of the same investee, less impairment. In addition, the existing impairment model has been replaced with a new one-step qualitative impairment model. Management regularly evaluates the equity investments for impairment based on performance and financial position of the investees as well as other evidence of market value. Such evaluation includes, but not limited to, reviewing the investees’ cash position, recent financing, projected and historical financial performance, cash flow forecasts and financing needs. An impairment loss is recognized in the consolidated statements of comprehensive income/(loss) equal to the excess of the investment’s cost over its fair value at the balance sheet date of the reporting year for which the assessment is made. The fair value would then become the new cost basis of investment. Nil, RMB17,850 and RMB7,945 impairment losses were recognized for the years ended December 31, 2020, 2021 and 2022. 2. Summary of Significant Accounting Policies (Continued) (n) Business combination and goodwill The Group accounts for its business combinations using the acquisition method of accounting in accordance with ASC 805, Business Combinations. The cost of an acquisition is measured as the aggregate of the acquisition date fair values of the assets transferred and liabilities incurred by the Group to the sellers and equity instruments issued. Transaction costs directly attributable to the acquisition are expensed as incurred. Identifiable assets and liabilities acquired or assumed are measured separately at their fair values as of the acquisition date, irrespective of the extent of any non-controlling interests. The excess of (i) the total costs of acquisition, fair value of the non-controlling interests and acquisition date fair value of any previously held equity interest in the acquiree over (ii) the fair value of the identifiable net assets of the acquiree is recorded as goodwill. If the cost of acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognized directly in the consolidated statements of comprehensive income/(loss). A non-controlling interest is recognized to reflect the portion of a subsidiary’s equity which is not attributable, directly or indirectly, to the Company. When the non-controlling interest is contingently redeemable upon the occurrence of a conditional event, which is not solely within the control of the Company, the non-controlling interest is classified as mezzanine equity. Consolidated net income/(loss) on the consolidated statements of comprehensive income/(loss) includes the net loss attributable to non-controlling interests and mezzanine equity holders when applicable. Net loss attributable to mezzanine equity holders is included in net loss attributable to non-controlling interests on the consolidated statements of comprehensive income/(loss), while it is excluded from the consolidated statements of changes in shareholders’ equity. For the years ended December 31, 2020, 2021 and 2022, net loss attributable to non-controlling interests amounted to RMB930, RMB29,265 and RMB553, respectively. The cumulative results of operations attributable to non-controlling interests are also recorded as non-controlling interests in the Company’s consolidated balance sheets. Cash flows related to transactions with non-controlling interests are presented under financing activities in the consolidated statements of cash flows when applicable. Goodwill represents the excess of the total cost of the acquisition, the fair value of any non-controlling interests and the acquisition date fair value of any previously held equity interest in the acquiree over the fair value of the identifiable tangible and intangible assets acquired and liabilities assumed of the acquired entity as a result of the Company’s acquisitions of interests in its subsidiaries and the VIEs. Goodwill is not amortized but is tested for impairment on an annual basis, or more frequently if events or changes in circumstances indicate that it might be impaired. The Company has the option to assess qualitative factors first to determine whether it is necessary to perform the quantitative impairment test in accordance with ASC 350, Intangibles-Goodwill and Other: Goodwill (“ASC 350-20”). If the Company believes, as a result of the qualitative assessment, that it is more-likely-than-not that the fair value of the reporting unit is less than its carrying amount, the quantitative impairment test described above is required. Otherwise, no further testing is required. In the qualitative assessment, the Company considers primary factors such as industry and market considerations, overall financial performance of the reporting unit, and other specific information related to the operations. The quantitative goodwill impairment test, used to identify both the existence of impairment and the amount of impairment loss, compares the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying amount of a reporting unit is greater than zero and its fair value exceeds its carrying amount, goodwill of the reporting unit is considered not impaired. (o) Assets acquisition When the Company acquires other entities, if the assets acquired and liabilities assumed do not constitute a business, the transaction is accounted for as an asset acquisition. Assets are recognized based on the cost, which generally includes the transaction costs of the asset acquisition, and no gain or loss is recognized unless the fair value of noncash assets given as consideration differs from the assets’ carrying amounts on the Company’s books. The cost of a group of assets acquired in an asset acquisition is allocated to the individual assets acquired or liabilities assumed based on their relative fair value and does not give rise to goodwill. 2. Summary of Significant Accounting Policies (Continued) (p) Intangible assets Intangible assets mainly include those acquired through business combinations and purchased intangible assets. Intangible assets acquired through business combinations are recognized as assets separate from goodwill if they satisfy either the “contractual-legal” or “separability” criterion. Intangible assets arising from business combinations are recognized and measured at fair value upon acquisition. Purchased intangible assets are initially recognized and measured at cost upon acquisition. Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable.The impairment of intangible assets was nil, RMB17,379 and nil for the years ended December 31, 2020, 2021 and 2022, respectively. Separately identifiable intangible assets that have determinable lives continue to be amortized over their estimated useful lives using the straight-line method as follows: Developed technology 7-10 years License and in-process research and development intangible assets 10 years Software, trade names and others 3-10 years Customer relationship 8 years Supplier relationship 3 years (q) Property and equipment, net Property and equipment are stated at cost less accumulated depreciation and impairment, if any. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, which range as follows: Computers, electrical equipment and production machinery 1-5 years Office equipment, furniture and others 1-10 years Building 20 years Leasehold improvements shorter of remaining lease period or estimated useful life Expenditures for maintenance and repairs are expensed as incurred. The gain or loss on the disposal of property and equipment is the difference between the net sales proceeds and the carrying amount of the relevant assets and is recognized in the consolidated statements of comprehensive income/(loss). 2. Summary of Significant Accounting Policies (Continued) (r) Impairment of long-lived assets other than goodwill Long-lived assets are evaluated for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying value of an asset may not be fully recoverable or that the useful life is shorter than the Group had originally estimated. When these events occur, the Group evaluates the impairment for the long-lived assets by comparing the carrying value of the assets to an estimate of future undiscounted cash flows expected to be generated from the use of the assets and their eventual disposition. If the sum of the expected future undiscounted cash flow is less than the carrying value of the assets, the Group recognizes an impairment loss based on the excess of the carrying value of the assets over the fair value of the assets. (s) Leases The Group determines if an arrangement is a lease or contains a lease at lease inception. For operating leases, the Group recognizes a right-of-use (“ROU”) asset and a lease liability based on the present value of the lease payments over the lease term on the consolidated balance sheets at commencement date. As most of the Company’s leases do not provide an implicit rate, the Company estimates its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments, and in economic environments where the leased asset is located. Lease terms are determined after taking into account of rental escalation clauses, renewal options and/or termination options, if any. Lease expense is recorded in the consolidated statements of comprehensive income/(loss) on a straight-line basis over the lease term. The Group has elected to apply “the package” of practical expedients afforded under ASU No. 2016-02, Leases (Topic 842) (“ASC 842”). Short-term leases have not been recorded on the balance sheet. (t) Revenue recognition The Group adopted ASC Topic 606, “Revenue from Contracts with Customers” (ASC 606) for all years presented. According to ASC 606, revenue is recognized when control of the promised goods or services is transferred to the customers, in an amount that reflects the consideration the Group expects to be entitled to in exchange for those goods or services. We determine revenue recognition through the following steps: ● identification of the contract, or contracts, with a customer; ● identification of the performance obligations in the contract; ● determination of the transaction price, including the constraint on variable consideration; ● allocation of the transaction price to the performance obligations in the contract; and ● recognition of revenue when (or as) we satisfy a performance obligation 2. Summary of Significant Accounting Policies (Continued) (t) Revenue recognition (Continued) The Group’s revenues are mainly generated from information services, reservation services and sales of equipment and maintenance services. Refer to “Note 22 - Segment Information” for disaggregation of revenue. i) Information services The Group generates revenue from offering information services primarily to help medical aesthetic service providers better introduce their services and increase their customer base. The Group helps the service providers introduce their services through information display in main entrance banners and pop ups to increase exposure on the platform. The Group also places content of participating service providers on social platforms in the forms of pictures, videos or links. The Group generates its information service revenue primarily i) at a fixed fee per each day’s content display, ii) based on a contractual rate per unit of output, such as per click, etc., iii) at a fixed fee per each article posted on the Group’s social media accounts. These information services may be sold in combination as a bundled arrangement or separately on a stand-alone basis. Service providers can choose to sign up arrangements through the Group’s online information service system or sign-up off-line arrangements. Advance payment is required when signing up the arrangements. In the case of signing up on-line arrangements, the service providers are required to purchase So Young tokens (the “Token”) in the service provider account as the information service is priced in Tokens on the on-line platform. Tokens are the virtual currency of the Company’s platform. The Token will be locked in the individual service provider account when a service provider places an order on-line and will be deducted from the service provider account when service is performed. On a recurring basis, the Group offers free Tokens to service providers as certain percentage of purchased Tokens. The free Tokens have the same purchase power as the purchased Tokens, which represent an advance payment from customers. Tokens are interchangeable and not tied directly to any specific revenue transaction because the Tokens are fungible. As such, the Group values the Tokens based on an average pricing method to determine the transaction price for the specific information services provided to the service provider. The Tokens are not transferable or refundable and are generally consumed in three months after purchased or given for free. The value of expired Tokens has been immaterial. In the case of signing up off-line arrangements, the service providers are required to make cash advance payment for each individual contract. Contract consideration is determined and fixed in cash at the inception of contract. Revenue for the information services above is recognized in the period when information service is delivered as evidenced in a manner satisfying the types of engagements selected by the service providers, such as display of content, clicks on content and/or post of articles on the Group’s platform. Arrangements involving multiple performance obligations primarily consist of combinations of the above information services. For arrangements that include a combination of these services, the Company develops an estimate of the standalone selling price for these services in order to allocate any potential discount to all performance obligations in the arrangement. The Company believes the use of its estimation approach and allocation of the transaction price on a relative standalone selling price basis to each performance obligation results in revenue recognition in a manner consistent with the underlying economics of the transaction and the allocation principle included in ASC 606. The Group also provides other services, which are also presented under information service, primarily comprising medical aesthetic service displayed on So-Young Prime, etc. Revenue is recognized when these services are rendered. For the years ended December 31, 2020, 2021 and 2022, the revenue derived from other services was not significant. 2. Summary of Significant Accounting Policies (Continued) (t) Revenue recognition (Continued) i) Information services (Continued) Barter transactions The Company entered agreements with service providers whereby the Company provided information service as the consideration for sharing advertising space purchased by the service providers from other third-party providers. In general, the service provider would share certain percentage of the purchased advertising space with the Company. In exchange, the Company would provide the Tokens with the same value of the shared advertising space to the service provider based on the service provider’s purchase price with the third party and the shared percentage of the advertising space. Revenue from the barter transactions is recognized when information service is provided as discussed above and the expense related to the shared advertising space is recognized over the duration of display. The Group uses the fair value of the goods or services received when measuring the non-cash consideration for information service revenue earned. The Group will only measure the non-cash consideration indirectly by reference to the standalone selling price of the goods or services surrendered if the fair value of the goods or services received is not reasonably estimable. The Group recognized revenue from barter transactions amounted to RMB8,770, RMB3,411 and RMB551 for the years ended December 31, 2020, 2021 and 2022, respectively. The expenses recognized from barter transaction for the years ended December 31, 2020, 2021 and 2022 were RMB11,778, RMB4,516 and RMB1,269, respectively. ii) Reservation services The Group earns reservation service fees A primarily from medical aesthetic service providers when a medical or beauty treatment is performed for the platform users through reservation from the Group’s platform. Such fees are generally determined as an agreed percentage of the value of service actually provided by service providers. As per the Group’s agreements with service providers, it collects reservation service fees B for all services provided to a user during the lifetime as long as the user was brought to the particular service provider through the Group’s platform. This includes the situations where the user visits the service provider directly without online ordering, chooses treatment services at site that is different from the online reservation, adds more services during the time of visit, and visits the service provider for other treatments in the future. The service providers are obligated to report the completed transactions in above situations with the platform users to the Group. In the event that the service providers fail to report |
Concentration and Risks
Concentration and Risks | 12 Months Ended |
Dec. 31, 2022 | |
Concentration and Risks | |
Concentration and Risks | 3. Concentration and Risks (a) Foreign currency exchange rate risk In July 2005, the PRC government changed its decades-old policy of pegging the value of RMB to USD and RMB appreciated more than 20% against the USD over the following three years. Between July 2008 and June 2010, this appreciation halted and the exchange rate between RMB and USD remained within a narrow band. Since June 2010, RMB has fluctuated against USD, at times significantly and unpredictably. The appreciation of the RMB against the US$ was approximately 6.5% between December 31, 2019 and 2020. The appreciation of the RMB against the US$ was approximately 2.3% between December 31, 2020 and 2021. The depreciation of the RMB against the US$ was approximately 9.2% between December 31, 2021 and 2022. It is difficult to predict how market force or the PRC or U.S. government policy may impact the exchange rate between the RMB and the USD in the future. (b)Concentration of customers and suppliers There were no customers or suppliers from whom revenues or purchases individually represent greater than 10% of the total revenues or the total purchases of the Group for the years ended December 31, 2020, 2021 and 2022. (c)Concentration of credit risk The Group’s credit risk primarily arises from cash and cash equivalents, restricted cash and term deposits, trade receivables, loan receivables, receivables from online payment platforms, term deposits and short-term investments. The carrying amounts of these financial instruments represent the maximum amount of loss due to credit risk. The Group places its cash and cash equivalents, restricted cash and term deposits, and term deposits and short-term investments in the reputable financial institutions with high credit quality. As a further means of managing its credit risk, the Group holds its cash and cash equivalents and restricted cash and term deposits in a number of different financial institutions. As of December 31, 2021 and 2022, the Group held its cash and cash equivalents and restricted cash and term deposits in different financial institutions, and held approximately 36% and 41%, respectively, of its total cash and cash equivalents and restricted cash and term deposits in a single financial institution. Under PRC law, it is generally required that a commercial bank in the Chinese mainland that holds third party cash deposits protects the depositors’ rights over and interests in their deposited money; banks in the Chinese mainland are subject to a series of risk control regulatory standards; and bank regulatory authorities in the Chinese mainland are empowered to take over the operation and management of any Chinese mainland bank that faces a material credit crisis. Trade receivables are typically unsecured and are derived from revenue earned directly from customers. No single customer represented 10% or more of the Group’s revenues for the years ended December 31, 2020, 2021 and 2022. The Group has not experienced any significant recoverability issue with respect to its trade receivables. Loan receivables are the micro loans to medical aesthetic consumers. The Group started to provide this service in 2021. There were no single consumer represented 10% or more of the Group’s such revenue for the years ended December 31, 2021 and 2022. The risk with respect to loan receivables is mitigated by credit evaluations the Group performs on its customers and its ongoing monitoring processes of outstanding balances. |
Prepayment and Other Current As
Prepayment and Other Current Assets | 12 Months Ended |
Dec. 31, 2022 | |
Prepayment and Other Current Assets | |
Prepayment and Other Current Assets | 4. Prepayment and Other Current Assets The following is a summary of prepayment and other current assets: As of December 31, 2021 2022 RMB RMB Prepayments for services 31,988 25,711 Prepaid rental and other deposits 18,241 6,738 Prepayments to inventory suppliers 15,389 5,945 Loan receivables, net 15,074 65,937 Receivable from other online retail platforms 6,627 144 Receivable related to exercise of share options 310 110 Staff advances 432 185 Deductible VAT 422 5,362 Interest receivable 284 14,814 Others 3,075 1,943 Total 91,842 126,889 |
Inventories, Net
Inventories, Net | 12 Months Ended |
Dec. 31, 2022 | |
Inventories, Net | |
Inventories, net | 5. Inventories, Net Inventories, net consist of the following: As of December 31, 2021 2022 RMB RMB Finished products 69,332 81,190 Raw materials and semi-finished products 41,937 57,066 Inventories 111,269 138,256 Inventory provision (19,457) (17,776) Inventories, net 91,812 120,480 |
Business Combination
Business Combination | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination | |
Business combination | 6. Business Combination (a) Acquisition of Leya In October 2020, the Group completed the acquisition of Leya, a company which is primarily engaged in operations of one online dental clinic platform, by acquiring 63.37% of Leya’s equity interest and obtaining two out of three board seats of the Leya. The aggregate payment for the acquisition consists of a fixed payment of cash of RMB41.8 million (including loans assumed by the Group). The Group is obligated to acquire the remaining equity interest in three tranches in the following three years if certain pre-agreed performance conditions are met. The acquisition was accounted for as a business combination and RMB2,500 of developed technology and RMB18,000 of customer relationship were recognized as intangible assets at fair value on October 20, 2020. The Group’s obligation on satisfaction of pre-agreed performance conditions to purchase 36.63% common shares held by co-founders are considered a contingent redeemable non-controlling interest and classified in mezzanine equity measured at its fair value about RMB24,135. The Group made estimates and judgements in determining the fair value of intangible assets and non-controlling interest in mezzanine equity with the assistance from an independent valuation firm. The significant estimates and assumptions mainly include the projected revenue, projected operating results, probability to meet performance conditions, royalty rates, customer attrition rates, and discount rate. The Company determined discount rates to be used based on the risk inherent in the related activity’s current business model and industry comparisons. The consideration was allocated on the acquisition date as follows: RMB Useful lives (Years) Identifiable intangible assets acquired: Customer relationship 18,000 8 Developed technology 2,500 7 Cash and cash equivalents 887 Other assets 1,176 Goodwill 48,500 Other liabilities (5,131) Mezzanine equity (24,135) Total consideration 41,797 The excess of the purchase price over tangible assets, identifiable intangible assets and liabilities assumed was recorded as goodwill. The goodwill recognized is attributable primarily to expected synergies and the assembled workforce of Leya. The goodwill is not deductible for tax purposes. The amount of revenue and net loss of Leya from the acquisition date to December 31, 2020 were not material to the consolidated financial statements. Pro forma results of operations for Leya acquisition have not been presented because it was not material to the consolidated financial statements. Since October 20, 2021, the Group only has the right, but no longer has the obligation to purchase remaining shares of Leya from co-founders since Leya failed to meet the performance target by the end of the performance measurement period. Therefore, the Group classified non-controlling interests in mezzanine equity into non-controlling interests. 6. Business Combination (Continued) (b) Acquisition of Wuhan Miracle Wuhan Miracle is mainly engaged in the research and development, production, sales and agency of laser and other optoelectronic medical beauty equipment. In July 2021, the Group acquired an approximately 54.68% equity interests in Wuhan Miracle for an aggregated cash consideration of RMB512 million, including contingent consideration of RMB88 million measured at fair value, and Wuhan Miracle became a consolidated subsidiary of the Group. In connection with the transaction, the Group also entered into an agreement with the founder of Wuhan Miracle and shareholder A, pursuant to which the Group is obligated to purchase and the founder is obligated to sell additional 4.17% equity interests in Wuhan Miracle for a cash consideration of RMB39 million within three years and the Group is obligated to purchase and the shareholder A is obligated to sell 1% equity interest in Wuhan Miracle for a cash consideration of RMB9 million. The Group subsequently acquired additional 31.92% equity interests for an aggregated cash consideration of RMB299 million in the fourth quarter of 2021. In December 2022, the Group and the founder have agreed to terminate the unperformed part of the agreement. Thus, the Group effectively held 91.77% and 87.60% equity interests of Wuhan Miracle as of December 31, 2021 and 2022, respectively. The remaining payment for acquisition of Wuhan Miracle was RMB136 million and nil as of December 31, 2021 and 2022, respectively. The acquisition was accounted for as a business combination and RMB17 million of supplier relationship intangible assets, RMB27 million of in-process research and development and RMB70 million of developed technology intangible assets were recognized at fair value, RMB105 million of property and equipment was recognized at fair value and RMB100 million of inventories was recognized at fair value on acquisition date. The Group’s unconditional obligation to purchase 4 The Group made estimates and judgements in determining the fair value of intangible assets and property and equipment with the assistance from an independent valuation firm. The significant estimates and assumptions mainly include: (1) projected revenue, projected operating result and discount rate, which are related to the valuation of the fair value of the intangible assets; (2) sales price and market rental of comparable property and equipment, adjustment for differences between acquired property and equipment and comparable property and equipment, and capitalization rates, which are related to the valuation of the fair value of the building measured as the property and equipment;(3) sales price of comparable property and equipment, and adjustment for differences between acquired property and equipment and comparable property and equipment, which are related to the valuation of the fair value of the cars measured as the property and equipment and included in the nature of office equipment, furniture and others in Property and equipment, net; and (4) replacement cost which is related to the valuation of the fair value of the other property and equipment owned by Wuhan Miracle. The Group determined discount rates to be used based on the risk inherent in the related activity’s current business model and industry comparisons. The consideration was allocated on the acquisition date as follows: 6. Business Combination (Continued) (b) Acquisition of Wuhan Miracle (continued) RMB Useful lives (Years) Identifiable intangible assets acquired: Developed technology 70,000 10 Supplier relationship 17,000 3 In-process research and development intangible assets 27,000 10 Cash and cash equivalents 86,467 Short-term investment and term deposits 50,000 Trade receivables 25,244 Inventories, net 99,681 Other current assets 6,401 Property and equipment, net 104,878 20 Other non-current assets 8,278 Contract liabilities (32,006) Accrued liabilities and other liabilities (38,245) Deferred tax liabilities (28,872) Goodwill 540,009 Non-controlling interests (76,905) Total consideration 858,930 The excess of the purchase price over tangible assets, identifiable intangible assets and liabilities assumed was recorded as goodwill. The goodwill recognized is attributable primarily to expected synergies and the assembled workforce of Wuhan Miracle. The goodwill is not deductible for tax purposes. The amount of revenue and net loss of Wuhan Miracle from the acquisition date to December 31, 2021 were RMB111,956 and RMB9,366, respectively. Pro forma information of the acquisition The following unaudited pro forma information summarizes the results of operations for the years ended December 31, 2020 and 2021 of the Group as if the acquisition had occurred on January 1, 2020. The unaudited pro forma information includes: (i) amortization associated with estimates for the acquired intangible assets, depreciation associated with estimates for the acquired property and equipment and the cost associated with the estimates for the acquired inventories and corresponding deferred tax liabilities; (ii) removal of the transaction costs related to the acquisition; (iii) elimination of transaction between Wuhan Miracle and the Group and (iv) the associated tax impact on these unaudited pro forma adjustments. The following pro forma financial information is presented for informational purpose only and is not necessarily indicative of the results that would have occurred had the acquisition been completed on January 1, 2020, nor is it indicative of future operating results. For the Year Ended December 31, 2020 2021 RMB RMB Pro forma Revenue 1,474,996 1,821,657 Pro forma net income/(loss) 18,481 (39,955) |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill | |
Goodwill | 7. Goodwill Changes in the carrying amount of goodwill by segment for the years ended December 31, 2021 and 2022 were as follows: Wuhan So-Young Miracle Total RMB RMB RMB Balance as of December 31, 2020 48,500 — 48,500 Increase in goodwill related to acquisition 684 540,009 540,693 Impairment of goodwill (i) (48,500) — (48,500) Balance as of December 31, 2021 684 540,009 540,693 Increase in goodwill related to acquisition — — — Impairment of goodwill — — — Balance as of December 31, 2022 684 540,009 540,693 Gross goodwill balances were RMB589,193 and RMB589,193 as of December 31, 2021 and 2022, respectively. Accumulated impairment losses were RMB48,500 and RMB48,500 as of December 31, 2021 and 2022, respectively. (i) In the annual goodwill impairment assessment, the Group concluded that the carrying amounts of Leya reporting unit exceeded its respective fair value and fully impaired goodwill of RMB 48,500 related to Leya reporting unit for the year ended December 31, 2021. As of December 31 of each year, the Group tested goodwill for impairment at the reporting unit level. The Group performed impairment tests using the qualitative and quantitative methods. For the Wuhan Miracle reporting unit, management determined that a quantitative assessment was most appropriate. Impairment tests were conducted by quantitatively comparing the fair values of the reporting unit to its carrying amount, including goodwill. The Wuhan Miracle reporting unit estimated the fair value using a discounted cash flow model. Management’s cash flow projections for the Wuhan Miracle reporting unit included significant judgments and assumptions relating to the projected revenue, projected operating result, and the discount rate. Based on the goodwill impairment test, management determined that the estimated fair value of the Wuhan Miracle reporting unit exceeded its carrying value and, therefore, no impairment was recorded. The fair value determined using the discounted cash flow model is compared with comparable market data and reconciled, as necessary. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2022 | |
Property and Equipment, Net | |
Property and Equipment, Net | 9. Property and Equipment, Net Property and equipment, net as of December 31, 2021 and 2022 are as follows: As of December 31, 2021 2022 RMB RMB Building 99,166 99,166 Leasehold improvements 32,723 32,685 Office equipment, furniture and others 12,201 25,255 Production machinery 3,680 4,744 Computers and electrical equipment 8,370 7,652 Total 156,140 169,502 Accumulated depreciation (30,875) (51,279) Impairment of property and equipment (689) (2,039) Net book value 124,576 116,184 Depreciation expenses recognized for the years ended December 31, 2020, 2021 and 2022 were RMB9,258, RMB15,086 and RMB21,648, respectively. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
Intangible Assets | |
Intangible assets | 10. Intangible Assets Intangible assets and its related accumulated amortization as of December 31, 2021 and 2022 are as follows: As of December 31, 2021 Gross Net carrying Accumulated Impairment Carrying value amortization amount Amount RMB RMB RMB RMB License (i) 93,952 (9,411) — 84,541 Developed technology (ii) 72,500 (3,575) (2,071) 66,854 In-process research and development intangible assets (ii) 27,000 (1,191) — 25,809 Customer relationship (ii) 18,000 (2,692) (15,308) — Supplier relationship (ii) 17,000 (2,500) — 14,500 Software 2,760 (1,073) — 1,687 Trade names 716 (266) — 450 Others 210 (96) — 114 Total 232,138 (20,804) (17,379) 193,955 As of December 31, 2022 Gross Net carrying Accumulated Impairment Carrying value amortization amount Amount RMB RMB RMB RMB License (i) 93,952 (18,806) — 75,146 Developed technology (ii) 72,500 (10,593) (2,071) 59,836 In-process research and development intangible assets (ii) 27,000 (3,885) — 23,115 Customer relationship (ii) 18,000 (2,692) (15,308) — Supplier relationship (ii) 17,000 (8,154) — 8,846 Software 3,223 (1,644) — 1,579 Trade names 779 (341) — 438 Others 447 (127) — 320 Total 232,901 (46,242) (17,379) 169,280 (i) Micro-finance license was derived from the acquisition of Tonghua Micro Finance. In October 2021, the Company completed the acquisition of Tonghua Micro Finance. The transaction was accounted for as an asset acquisition as the acquiree company did not meet the criteria of a business and substantially all the fair value of the assets acquired were concentrated in a single asset. (ii) The impairment loss of intangible assets was nil, RMB17,379 and nil for the years ended December 31, 2020, 2021 and 2022, respectively. The impairment losses were resulted from a revision of long-term financial outlook of Leya, which indicates that the carrying value may not be recoverable. 10. Intangible assets (Continued) Amortization expense was RMB4,829, RMB14,995 and RMB25,438 for the years ended December 31, 2020, 2021 and 2022, respectively. The Company will record estimated amortization expenses of RMB25,308, RMB22,651, RMB19,365, RMB19,342 and RMB82,614 for the years ending December 31, 2023, 2024, 2025, 2026, 2027 and thereafter, respectively. |
Taxation
Taxation | 12 Months Ended |
Dec. 31, 2022 | |
Taxation | |
Taxation | 11. Taxation (a) Value-added tax (“VAT”) The Group’s subsidiaries, consolidated VIEs and VIEs’ subsidiaries incorporated in China are subject to statutory VAT rate of 6% for services rendered and 13% for products sales. The Group is also subject to urban construction tax at the rate of 7% or 5% or 1%, education surcharges at the rate of 3%, local education surcharges at the rate of 2% and other surcharges on VAT payments to the tax authorities according to PRC tax law, which are recorded in the cost of revenues in the consolidated statements of comprehensive income/(loss). (b) Income tax Composition of income tax The following table presents the composition of income tax (benefits)/expenses for the years ended December 31, 2020, 2021 and 2022: For the Year Ended December 31, 2020 2021 2022 RMB RMB RMB Current income tax expense 16,580 19,579 3,838 Deferred tax (benefits)/expenses (21,364) 1,652 (24,803) Income tax (benefits)/expenses (4,784) 21,231 (20,965) Cayman Islands Under the current laws of the Cayman Islands, the Company is not subject to tax on income or capital gain. Additionally, upon payments of dividends by the Company in the Cayman Islands to their shareholders, no Cayman Islands withholding tax will be imposed. Hong Kong Subsidiaries in Hong Kong are subject to 16.5% income tax rate for 2017. Under the current Hong Kong Inland Revenue Ordinance, from the year of assessment 2018/2019 onwards, the subsidiaries in Hong Kong are subject to profits tax at the rate of 8.25% on assessable profits up to HK$2,000, and 16.5% on any part of assessable profits over HK$2,000. The payments of dividends by these companies to their shareholders are not subject to any Hong Kong withholding tax. China Under the PRC Enterprise Income Tax Law, or EIT Law, the standard enterprise income tax rate (“EIT rate”) is 25%. Entities qualifying as High and New Technology Enterprises (“HNTEs”) enjoy a preferential tax rate of 15% subject to a requirement that they re-apply for HNTE status every three years. 11. Taxation (Continued) (b) Income tax (Continued) China (Continued) So-Young Wanwei was entitled as HNTE in 2018 and eligible for a preferential EIT rate of 15%, for the three-year period from 2018 to 2020 and extended to additional three-year period from 2021 to 2023, so long as it meets the HNTE criteria, however, as So-Young Wanwei qualified as “Software Company”, hence to enjoy income tax rate of 0% for the two-year period from 2019 to 2020, and enjoys income tax rate of 12.5% for the three-year period from 2021 to 2023. Wuhan Miracle and Wuhan Haoweilai were entitled as HNTE in 2020 and eligible for a preferential EIT rate of 15%, for the three-year period from 2020 to 2022. A qualified enterprise in encouraged industries registered in the Hainan Free Trade Port (“HFTP”) and engaged in substantive operations may enjoy a reduced EIT rate of 15%. Yixian Daka was recognized as a qualified enterprise engaged in encouraged industries registered in the Hainan Free Trade Port and engaged in substantive operations. All other PRC incorporated entities of the Group were subject to a 25% income tax rate for all the years presented. In general, all of the tax returns of the Company’s PRC entities in China remain subject to examination by the tax authorities for up to five years from the date of filing. The Company may also be subject to the examination of the tax filings in other jurisdictions, which are not material to the consolidated financial statements. The following table presents a reconciliation of the differences between the statutory income tax rate and the Group’s income tax (benefits)/expenses for the years ended December 31, 2020, 2021 and 2022: For the Year Ended December 31, 2020 2021 2022 RMB RMB RMB Income tax expenses at PRC statutory income tax rate-25% 34 (4,101) (21,767) Permanent differences (1) (8,629) 5,412 (3,899) Tax rate difference from tax holiday and statutory rate in other jurisdictions, tax refund and others (377) 5,701 3,413 Change in valuation allowance 4,188 14,219 1,288 Income tax (benefits)/expenses (4,784) 21,231 (20,965) (1) The permanent differences mainly consisted of additional deduction for research and development expenditures and non-deductible expenses. The per share effect of the tax holidays are as follows: For the Year Ended December 31, 2020 2021 2022 RMB RMB RMB Net gain/(loss) per ordinary share effect-basic 0.11 (0.07) (0.21) Net gain/(loss) per ordinary share effect-diluted 0.10 (0.07) (0.21) 11. Taxation (Continued) (c) Deferred tax assets and liabilities The following table presents the tax impact of significant temporary differences that give rise to the deferred tax assets as of December 31, 2021 and 2022: As of December 31, 2021 2022 RMB RMB Deferred tax assets Advertising and promotion expenses in excess of deduction limit 53,670 39,287 Payroll and expense accrued 4,909 3,551 Net operating tax loss carry forwards 25,200 47,288 Loss on equity investment 1,450 5,756 Impairment of long-term investments 5,463 5,493 Allowance for doubtful accounts, property and equipment and inventory 5,740 12,753 Others 1,015 1,826 Valuation allowance (49,927) (51,215) Total deferred tax assets, net 47,520 64,739 Deferred tax liabilities Assets arisen from business combination and assets acquisition 38,577 30,993 Total deferred tax liabilities 38,577 30,993 All deferred tax assets and liabilities within a single tax jurisdiction are offset and presented as a single amount in accordance with ASC 740-10-45-6 “Income Taxes - Overall - Other Presentation Matters.” The Group has classified all deferred tax assets and liabilities as non-current items on its consolidated balance sheet as of December 31, 2021 and 2022. The following table sets forth the movement of the valuation allowances for deferred tax assets for the periods presented: For the year ended December 31, 2020 2021 2022 RMB RMB RMB Balance as of January 1, (28,043) (35,708) (49,927) Change of valuation allowance (7,665) (14,219) (1,288) Balance as of December 31, (35,708) (49,927) (51,215) The increase of valuation allowance in 2020 was mainly related to deferred tax assets recognized from net operating tax loss carry forwards of Chiyan Beijing, as the Group did not believe that sufficient positive evidence exists to conclude that the recoverability of deferred tax assets is more likely than not to be realized. The increase of valuation allowance in 2021 was mainly related to deferred tax assets recognized from impairment losses of long-term investment and intangible asset, as the Group did not believe that sufficient positive evidence exists to conclude that the recoverability of deferred tax assets is more likely than not to be realized. The increase of valuation allowance in 2022 was mainly related to deferred tax assets recognized from the losses of long-term investment, the Group did not believe that sufficient positive evidence exists to conclude that the recoverability off deferred tax assets is more likely than not to be realized. 11. Taxation (Continued) (c) Deferred tax assets and liabilities (Continued) The tax losses of the Group expire over different time intervals depending on local jurisdiction. Certain entity’s expiration period for tax losses has been extended from five years to ten years due to new tax legislation released in 2018. As of December 31, 2022, certain entities of the Group had net operating tax loss carry forwards, if not utilized, would expire as follows: RMB Loss expiring in 2023 10,863 Loss expiring in 2024 12,067 Loss expiring in 2025 45,276 Loss expiring in 2026 30,096 Loss expiring in 2027 and thereafter 179,210 Total 277,512 (d) Withholding income tax The EIT Law also imposes a withholding income tax of 10% on dividends distributed by a FIE to its immediate holding company outside of China, if such immediate holding company is considered as a non-resident enterprise without any establishment or place within China or if the received dividends have no connection with the establishment or place of such immediate holding company within China, unless such immediate holding company’s jurisdiction of incorporation has a tax treaty with China that provides for a different withholding arrangement. Such withholding income tax was exempted under the Previous EIT Law. The Cayman Islands, where the Company incorporated, does not have such tax treaty with China. According to the arrangement between Mainland China and Hong Kong Special Administrative Region on the Avoidance of Double Taxation and Prevention of Fiscal Evasion in August 2006, dividends paid by a FIE in China to its immediate holding company in Hong Kong will be subject to withholding tax at a rate that may be lowered to 5% (if the foreign investor owns directly at least 25% of the shares of the FIE). The State Administration of Taxation (“SAT”) further promulgated Circular 601 on October 27, 2009, which provides that tax treaty benefits will be denied to “conduit” or shell companies without business substance and that a beneficial ownership analysis will be used based on a “substance-over-form” principle to determine whether or not to grant the tax treaty benefits. To the extent that subsidiaries and the VIE and subsidiaries of the VIE of the Group have undistributed earnings, the Company will accrue appropriate expected withholding tax associated with repatriation of such undistributed earnings. The Company did not provide for foreign withholding taxes on the undistributed earnings of foreign subsidiaries during the years presented on the basis of its intent to permanently reinvest its foreign subsidiaries’ earnings. |
Taxes Payable
Taxes Payable | 12 Months Ended |
Dec. 31, 2022 | |
Taxes Payable | |
Taxes Payable | 12. Taxes Payable The following is a summary of taxes payable as of December 31, 2021 and 2022: As of December 31, 2021 2022 RMB RMB VAT payable 12,831 34,480 Withholding individual income taxes for employees 8,114 7,862 Enterprise income taxes payable 26,690 30,666 Others 936 1,572 Total 48,571 74,580 |
Contract Balances
Contract Balances | 12 Months Ended |
Dec. 31, 2022 | |
Contract Balances | |
Contract Balances | 13. Contract Balances The following table provides information about trade receivables, contract assets, and contracts liabilities with customers: As of December 31, 2020 2021 2022 RMB RMB RMB Trade receivables 52,871 54,829 36,006 Contract liabilities 135,385 139,155 110,159 Contract assets related to the receipt of the consideration which is conditional on the fulfilment of the warranty service for sales of equipment. As of December 31, 2021 and 2022, the contract assets were nil. Trade receivables are recorded when the right to consideration becomes unconditional. Contract liabilities mainly relate to the payments received for information service and sales of equipment and maintenance services in advance of performance under the contract. As of December 31, 2021 and 2022, contract liabilities were RMB139,155 and RMB110,159, respectively. The Group’s information service and sales of equipment are provided in a relatively short period, as such the contract liabilities are generally recognized as revenue within three months. The Group’s maintenance services are generally provided over twelve months and the contract liabilities relate to the payments received for maintenance services are generally recognized as revenue within 12 months accordingly. Revenue recognized that was included in the contract liability balance at the beginning of the years ended December 31, 2020, 2021 and 2022 is RMB93,725, RMB135,385 and RMB118,960, respectively. As of December 31, 2021 and 2022, the Group does not have material unsatisfied performance obligations with the related contract of duration over one year. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Accrued Expenses and Other Current Liabilities | |
Accrued Expenses and Other Current Liabilities | 14. Accrued Expenses and Other Current Liabilities The following is a summary of accrued expenses and other current liabilities as of December 31, 2021 and 2022: As of December 31, 2021 2022 RMB RMB Payment for acquisition of Wuhan Miracle (see Note 6) 136,482 — Deposits payable to service providers and others 68,248 55,198 Accrued service expenses 61,255 46,638 Advance payment from platform user 51,104 71,514 Payable to service providers 24,860 20,290 Payments for inventories 18,840 13,202 Product warranty 2,529 2,704 Accrued litigation liabilities (see Note 19) 2,162 3,611 Others 11,361 11,432 Total 376,841 224,589 Standard product warranty activities were as follows: Warranty RMB Balance as of July 22, 2021 3,043 Provided during the period 861 Utilized during the period (1,375) Balance as of December 31, 2021 2,529 Provided during the period 3,288 Utilized during the period (3,113) Balance as of December 31, 2022 2,704 |
Lease
Lease | 12 Months Ended |
Dec. 31, 2022 | |
Lease | |
Lease | 15. Lease The Group’s leasing activities primarily consist of operating leases for administrative offices. ASC 842 requires lessees to recognize ROU assets and lease liabilities on the balance sheet. The Group has elected an accounting policy to not recognize short-term leases (one year or less) on the balance sheet. The Group recorded ROU assets and lease liabilities as a lessee. As of December 31, 2021 and 2022, ROU assets were approximately RMB95,609 and RMB62,898, respectively. As of December 31, 2021 and 2022, lease liabilities were approximately RMB105,885 and RMB71,257, respectively. Supplemental cash flow information related to operating leases was as follows: For the year ended December 31, 2021 2022 RMB RMB Cash payments for operating leases 44,072 46,169 ROU assets obtained in exchange for operating lease liabilities 9,137 5,979 15. Lease (Continued) Future lease payments under operating leases as of December 31, 2022 were as follows: Operating leases RMB Year ending December 31, 2023 53,268 2024 18,967 2025 1,652 2026 803 2027 and thereafter — Total future lease payments 74,690 Less: Imputed interest (3,433) Total lease liability balance 71,257 The weighted-average remaining lease term was 2.42 and 1.59 years as of December 31, 2021 and 2022, respectively. The weighted-average discount rate used to determine the operating lease liability as of December 31, 2021 and 2022 was 5.90% and 5.85%, respectively. Operating lease expenses for the year ended December 31, 2020, 2021 and 2022 were RMB40,432, RMB41,976 and RMB44,252, respectively, which excluded expenses of short-term contracts. Short-term lease expenses for the year ended December 31, 2020, 2021 and 2022 were RMB6,586, RMB7,929 and RMB5,146, respectively. There were no material early terminated leases for the years ended December 31, 2021 and 2022, respectively. As of December 31, 2021 and 2022, no additional operating leases have not yet commenced. |
Ordinary Shares
Ordinary Shares | 12 Months Ended |
Dec. 31, 2022 | |
Ordinary Shares | |
Ordinary Shares | 16. Ordinary Shares In May 2019, the Company completed its IPO on the Nasdaq Global Market and the underwriters subsequently exercised their over-allotment option in May 2019. In the offering, 14,950,000 ADSs representing 11,500,000 Class A Ordinary shares, were issued and sold to the public at a price of US$13.80 per ADS. The net proceeds to the Company from the IPO, after deducting commission and offering expenses, were approximately US$187.5 million (RMB1,267 million). Upon the completion of IPO, 66,613,419 Class A ordinary shares with one vote per share and 12,000,000 Class B ordinary shares with thirty votes per share were issued upon re-designation of ordinary shares and the conversion of all redeemable convertible preferred shares. In addition, the authorized share capital of the Company was US$425 divided into 850,000,000 shares, comprising (i) 750,000,000 Class A ordinary shares of a par value of US$0.0005 each, (ii) 20,000,000 Class B ordinary shares of a par value of US$0.0005 each and (iii) 80,000,000 shares of a par value of US$0.0005 each of such class or classes (however designated) as the board of directors may determine in accordance with the amended and restated memorandum and articles of association. As of December 31, 2022, 750,000,000 Class A ordinary shares were authorized, 73,065,987 and 68,843,320 shares issued and outstanding, respectively; 20,000,000 Class B ordinary shares were authorized, 12,000,000 Class B ordinary shares were issued and outstanding |
Share-based Compensation
Share-based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Share-based Compensation | |
Share-based Compensation | 17. Share-based Compensation (a) Description of share option plan In April 2014, the Company established a share incentive plan (“2014 Incentive Plan”). The maximum number of shares that may be issued under 2014 Incentive Plan shall be 3,200,000. In January 2015, the maximum number of shares that may be issued under 2014 Incentive Plan were amended to be 5,117,613. The options are generally scheduled to be vested over four years and expire in four years. On April 1, 2018, the board of directors of the Company approved 2018 share incentive plan (the “2018 Plan”) to replace the 2014 Incentive Plan, under which, the Company has agreed to authorize up to 7,111,447 ordinary shares for the issuance of employee share options to the eligible directors, employees and consultants of the Company. Upon the approval of the 2018 Plan, the Group modified the expiration term of the options granted under the 2014 Incentive Plan from 4 years to 10 years. In accordance with ASC 718, “Compensation—Stock Compensation,” the modification is a probable-to-probable (Type I) modification. The Group recognized the portion of incremental value for those vested share options as expenses immediately; the portion of the incremental value for unvested share options will be recognized as expenses over the remaining vesting periods. The total incremental value for the modification is not significant. On January 10, 2019, the board of directors of the Company approved the Amended and Restated 2018 Share Plan (the “Amended 2018 Plan”) to replace the 2018 Plan. Those employees who have been granted shares under 2018 Plan were required to re-sign the shares agreement under the Amended 2018 Plan. Upon adoption of the Amended 2018 Plan, terms are modified that the vested options cannot be exercised until the completion of the Company’s IPO (“modified condition”). In accordance with ASC 718, “Compensation—Stock Compensation,” the modification is a probable-to-improbable (Type II) modification as IPO is a performance condition that the Company anticipates will not be satisfied until occurrence. For Type II modifications, no incremental fair value would be recognized unless and until vesting of the award under the modified conditions becomes probable. If the original service condition is satisfied, the award’s original grant-date fair value is recognized as an expense, over the requisite service period, regardless of whether the modified conditions are satisfied. Since the modified awards with both a service condition and a performance condition, the graded vesting method should be used, the cumulative amount of difference between the straight-line method and graded vesting method should be caught up when the vesting of the award under the modified conditions becomes probable, i.e., upon IPO. On March 27, 2019, the Company has adopted the Second Amended and Restated 2018 Share Plan (the “Second Amended 2018 Plan”) which supersedes all of the Company’s previously adopted share incentive plans, for the purpose of granting share-based compensation awards to employees and directors to incentivize their performance and align their interests with the Company. Under the Second Amended 2018 Plan, the maximum aggregate number of shares that may be issued pursuant to all awards is 7,700,000 ordinary shares plus an annual increase of 2% of the total outstanding share capital of the Company as of December 31 of the immediately preceding calendar year on the first day of each fiscal year, beginning in 2020, or such lesser number of Class A ordinary shares as determined by the board of directors of the Company, providing that the aggregate number of shares initially reserved and subsequently increased during the term of the Second Amended 2018 Plan shall not be more than 10% of the total outstanding ordinary shares of the Company on December 31 immediately preceding the most recent increase. In April 2021, the Company adopted the 2021 Share Incentive Plan (“2021 Plan”), to attract and retain the best available personnel, provide additional incentives to employees, directors and consultants, and promote the success of the business. The maximum number of shares that may be issued under the 2021 Plan shall initially be 1,734,760 ordinary shares, plus commencing with the fiscal year beginning January 1, 2022, an annual increase on the first day of each fiscal year during the term of the 2021 Plan, by an amount equal to 2% of the total number of shares issued and outstanding on an as-converted fully diluted basis on the last day of the immediately preceding fiscal year; or such lesser number of shares as determined by the board of directors of the Group. The awards granted under the 2021 Plan have a contractual term of ten years from the stated grant date and are generally scheduled to be vested in two to four years subject to a service condition or both a service condition and a performance condition as below: (i) 50% of options granted under the 2021 Plan will vest in equal tranche quarterly. 17. Share-based Compensation (Continued) (a) Description of share option plan (Continued) (ii) Some of employees who have been granted shares under Second Amended 2018 Plan re-signed the shares agreement under the 2021 Plan. Upon the adoption of the 2021 Plan, 50% of the unvested options are modified to change the vesting schedule to vest quarterly (“Modification A”) and the remaining 50% of unvested options are modified to add performance condition as described in the preceding paragraph (“Modification B”). In accordance with ASC 718, “Compensation-Stock Compensation,” the Modification A and Modification B are considered probable-to-probable (Type I) modifications as the Company expected that it is the probable that the employee can at least obtain the original number of options under the 2021 plan. Any incremental fair value together with remaining unrecognized share-based compensation expense will be recognized over the remaining requisite service period. In 2020, the Company has granted 2,665,028 share options with an exercise price of US$0.1 per share under the Second Amended 2018 Plan. These options granted are vest over a four-year period, with 25% of the awards vesting on the first anniversary, and the remaining 75% of the awards vesting on a yearly basis thereafter. In 2021, the Company has granted 1,047,828 share options with an exercise price of US $0.1 per share under the Second Amended 2018 Plan and the 2021 Plan. In 2022, the Company has granted 1,147,101 share options with an exercise price of US$0.1 per share under the Second Amended 2018 Plan and the 2021 Plan. 17. Share-based Compensation (Continued) (b) Valuation The Group uses binomial option pricing model to determine fair value of the share-based awards. The fair value of each option granted for the years ended December 31, 2020, 2021 and 2022 is estimated on the date of grant using the binomial option-pricing model with the following assumptions: For the year ended December 31, 2020 2021 2022 Expected volatility 47.00%-55.00% 46.48%-52.64% 47.30%-50.09% Expected dividends yield 0% 0% 0% Expected multiples 2.2-2.8 2.2-2.8 2.2-2.8 Risk-free interest rate 0.62%-1.77% 1.03%-1.61% 1.75%-4.07% Expected term (in years) 10 10 10 Fair value of underlying ordinary share (USD) 12.98-16.13 4.15-12.90 0.68-3.64 The expected volatility at the grant date and each option valuation date was estimated based on the annualized standard deviation of the daily return embedded in historical share prices of comparable peer companies with a time horizon close to the expected expiry of the term of the options. The Company has never declared or paid any cash dividends on its capital stock, and the Group does not anticipate any dividend payments in the foreseeable future. Expected term is the contract life of the options. The Group estimated the risk-free interest rate based on the yield to maturity of U.S. treasury bonds denominated in USD at the option valuation date. 17. Share-based Compensation (Continued) (c) Share options activities The following table presents a summary of the Company’s options activities for the years ended December 31, 2020, 2021 and 2022: Weighted average Number of Weighted average remaining Aggregate options exercise price contractual life Intrinsic Value (in thousands) US$ Years US$ (in thousands) Outstanding as of January 1, 2020 3,496 0.1 8.55 55,188 Granted 2,665 0.1 Exercised (1,090) 0.1 15,148 Forfeited (545) 0.1 Outstanding as of December 31, 2020 4,526 0.1 8.60 66,255 Granted 1,048 0.1 Exercised (1,774) 0.1 16,088 Forfeited (1,288) 0.1 Outstanding as of December 31, 2021 2,512 0.1 8.47 10,167 Granted 1,147 0.1 Exercised (1,580) 0.1 2,193 Forfeited (340) 0.1 Outstanding as of December 31, 2022 1,739 0.1 8.26 2,742 Vested and exercisable as of December 31, 2020 557 0.1 7.44 8,156 Vested and exercisable as of December 31, 2021 1,116 0.1 8.84 4,515 Vested and exercisable as of December 31, 2022 846 0.1 7.56 1,334 The weighted average grant date fair value of options granted for the years ended December 31, 2020, 2021 and 2022 was US$13.38, US$7.59 and US$4.42 per option, respectively. The total grant date fair value of options vested for the years ended December 31, 2020, 2021 and 2022 was RMB58,700, RMB141,845 and RMB74,266, respectively. It is the Company’s policy to issue new shares upon exercise of share options. The number of shares available for future grant under the Company’s Second Amended 2018 Plan was 753,653 As of December 31, 2020, 2021 and 2022, the total unrecognized compensation expenses related to the options were RMB216,971, RMB65,122 and RMB26,733, respectively. These amounts are expected to be recognized over a weighted average period of 2.73 years, 2.13 years and 1.47 years, respectively. |
Net Earnings(Loss) per Share
Net Earnings(Loss) per Share | 12 Months Ended |
Dec. 31, 2022 | |
Net (Loss)/Earnings per Share | |
Net (Loss)/Earnings per Share | 18. Net Earnings/(Loss) per Share Basic and diluted earnings /(loss) per share have been calculated in accordance with ASC260 for the years ended December 31, 2020, 2021 and 2022: For the Year ended December 31, 2020 2021 2022 RMB RMB RMB Numerator: Net income/(loss) 4,877 (37,636) (66,107) Net loss attributable to non-controlling interests 930 29,265 553 Net earnings/(loss) attributable to So-Young International Inc. 5,807 (8,371) (65,554) Denominator: Weighted average number of ordinary shares outstanding, basic 81,534,991 81,680,504 82,665,269 Weighted average number of ordinary shares outstanding, diluted 83,781,406 81,680,504 82,665,269 Net earnings/(loss) per share, basic 0.07 (0.10) (0.79) Net earnings/(loss) per share, diluted 0.07 (0.10) (0.79) Net earnings/(loss) per ADS, basic 0.05 (0.08) (0.61) Net earnings/(loss) per ADS, diluted 0.05 (0.08) (0.61) Basic and diluted earnings /(loss) per ordinary share are computed using the weighted average number of ordinary shares outstanding during the year. Both Class A and Class B ordinary shares are included in the calculation of the weighted average number of ordinary shares outstanding, basic and diluted. The Group did not include certain share options in the computation of diluted net loss per share for the years ended December 31, 2021 and 2022, because those share options were anti-dilutive. |
Commitment and Contingencies
Commitment and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitment and Contingencies | |
Commitment and Contingencies | 19. Commitments and Contingencies (a) Commitments Property management fee obligation The Group leases office space under non-cancelable operating lease agreements, which expire at various dates through December 2026. Future minimum payments under non-cancelable agreements for property management fees consist of the following as of December 31, 2022: As of December 31, 2022 RMB 2023 5,949 2024 2,011 2025 90 2026 90 2027 and thereafter — Total 8,140 19. Commitments and Contingencies (Continued) Purchase obligation As of December 31, 2022, future minimum payments under non-cancelable agreements for imported equipment from Wuhan Miracle is RMB 2.0 million (US $0.3 million), of which is due by 2023. (b) Litigation From time to time, the Group is involved in claims and legal proceedings that arise in the ordinary course of business. Based on currently available information, management does not believe that the ultimate outcome of any unresolved matters, individually and in the aggregate, is reasonably possible to have a material adverse effect on the Group’s financial position, results of operations or cash flows. However, litigation is subject to inherent uncertainties and the Group’s view of these matters may change in the future. The Group records a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. The Group reviews the need for any such liability on a regular basis. The Group’s accrued expense for litigation liabilities was RMB2,162 and RMB3,611 as of December 31, 2021 and 2022, respectively, and the Group recognized RMB4,022, RMB6,150 and RMB5,918 litigation expense for the years ended December 31, 2020, 2021 and 2022, respectively. The litigations are mainly in connection with infringement of intellectual property right, including rights of reputation and image rights. |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Measurement | |
Fair value measurement | 20. Fair Value Measurement (a) Assets and liabilities measured at fair value on a recurring basis The following table summarizes, for assets and liabilities measured at fair value on a recurring basis, the respective fair value and the classification by level of input within the fair value hierarchy as of December 31, 2021 and 2022: As of December 31, Financial instruments Fair value hierarchy 2021 2022 RMB RMB Short-term investments (Note 8) Level 2 408,946 — Contingent consideration (Note 6) Level 3 (88,000) — Short-term investments The short-term investments are comprised of investments in wealth management products issued by financial institutions. The Group estimates the fair value of investments in short-term investments using alternative pricing sources and models utilizing market observable inputs, and accordingly the Group classifies the valuation techniques that use these inputs as Level 2. The short-term investments usually have short original maturities of less than 1 year, the carrying value approximates to fair value. As of December 31, 2021 and 2022, gross unrealized gains of RMB161 and nil were recorded on short-term investments, respectively. Contingent consideration The Group’s estimated liability for contingent consideration represents potential payments for the acquisition of Wuhan Miracle (see Note 6) if certain defined goal is achieved before December 31, 2022. The contingent consideration is included in the accrued expenses and other current liabilities on the consolidated balance sheets. The Group estimated the fair value of contingent consideration including unobservable inputs of probability of successful achievement, and accordingly the Group classifies the valuation techniques that use these inputs as Level 3. As of December 31, 2021 and 2022, the contingent consideration balances were RMB88,000 and nil, respectively. Other financial instruments Other financial assets and liabilities of the Group primarily consist of cash and cash equivalents, restricted cash, term deposits, trade receivables, loan receivables, amounts due from/to related parties and receivables from online payment platforms. As of December 31, 2021 and 2022, the carrying values of these financial assets are approximated to the fair values due to their short-term nature. They are not measured at fair value in the Consolidated Balance Sheets, but for which the fair value is estimated for disclosure purposes. (b) Assets and liabilities measured at fair value on a nonrecurring basis Investments under the measurement alternative method and equity method are reviewed periodically for impairment using fair value measurement. As of December 31, 2020, 2021 and 2022, certain investments were measured using significant unobservable inputs (Level 3) and written down from their respective carrying values to fair values, considering the stage of development, the business plan, the financial condition, the sufficiency of funding and the operating performance of the investee companies, with impairment losses incurred and recorded in earnings for the years then ended. The Group recognized impairment losses of nil, RMB17,850 and RMB7,945 for those investments for the years ended December 31, 2020, 2021 and 2022, respectively. 20. Fair Value Measurement (Continued) (b) Assets and liabilities measured at fair value on a nonrecurring basis (Continued) The Group’s non-financial assets, such as intangible asset, goodwill, property and equipment and operating lease assets, are measured at fair value only if they are determined to be impaired. The inputs used to measure the estimated fair value of such assets are classified as Level 3 in the fair value hierarchy due to the significance of unobservable inputs used. For the years ended December 31, 2020, 2021 and 2022, the Group recognized nil, RMB17,379, and nil of impairment |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions | |
Related Party Transactions | 21. Related Party Transactions During the years ended December 31, 2020, 2021 and 2022, other than disclosed elsewhere, the Company mainly had the following related party transactions: Name of entity or individual Relationships with the Group Beijing Mevos Equity investment Chengdu Zhisu Equity investment Yicai Equity investment Xingying Equity investment Sharing New Medical Equity investment Beijing Souyang Equity investment Zhang Haipeng Director Wuhan Future Light Property Service Co., Ltd. (“Future Light”) Immediate family of subsidiary’s shareholder Wuhan Yinchuxing Technology Development Co., Ltd. (“Yinchuxing”) Immediate family of subsidiary’s shareholder Chutian Laser Group (“Chutian”) Immediate family of subsidiary’s shareholder Lv Li Subsidiary’s shareholder (a) The Group entered into the following transactions with related parties (i) Provision of service For the Year Ended December 31, 2020 2021 2022 RMB RMB RMB Yicai 528 — — Chengdu Zhisu 4,027 2,934 1,225 Xingying 1,127 1,802 836 21. Related Party Transactions (Continued) (a) The Group entered into the following transactions with related parties (Continued) (ii) Loan advanced to the related parties For the Year Ended December 31, 2020 2021 2022 RMB RMB RMB Sharing New Medical 16,889 13,720 18,130 Yicai — 2,000 — (iii) Repayment of the loan advanced to the related parties For the Year Ended December 31, 2020 2021 2022 RMB RMB RMB Chengdu Zhisu 5,000 — — Sharing New Medical 9,718 7,170 — (iv) Interest income from related parties For the Year Ended December 31, 2020 2021 2022 RMB RMB RMB Sharing New Medical 234 103 1,148 (v) Expense occurred to the related parties For the Year Ended December 31, 2020 2021 2022 RMB RMB RMB Beijing Mevos 1,472 976 1,637 Zhang Haipeng (1) 613 — — Future Light — 606 1,348 Beijing Souyang — — 582 Yinchuxing — — 407 Chutian — — 113 (vi) Provision of rental service For the Year Ended December 31, 2020 2021 2022 RMB RMB RMB Yicai 340 — — 21. Related Party Transactions (Continued) (b) Amount due from/ to related parties (i) Amount due from related parties As of December 31, 2021 2022 RMB RMB Chengdu Zhisu 241 323 Sharing New Medical (2) 13,797 32,974 Future light — 35 Yinchuxing — 50 (ii) Amount due to related parties As of December 31, 2021 2022 RMB RMB Chengdu Zhisu — 25 Xingying 33 128 Beijing Mevos 642 — Lv Li (3) — 5,700 Beijing Souyang — 42 (1) The Company entered into an agreement with Zhang Haipeng with a cash consideration of RMB 1,300 to engage him as spokesman for brand promotion from September 2019 to April 2020. The Company has paid in advance fully for the service and recognized advertising expense of RMB 613 for the year ended December 31, 2019. The remaining amount was recognized as expense in 2020. (2) The balance as of December 31, 2021 and 2022 represents a loan provided to Sharing New Medical with a term of one year and an annual interest rate of 4.35% . (3) The Company entered into an agreement with Lv Li with a cash consideration of RMB 5,700 to dispose the 63.37% equity interest of Leya. See Note 27 Subsequent Events for additional information. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2022 | |
Segment Information | |
Segment Information | 22. Segment Information The Group’s organizational structure is based on a number of factors that the CODM uses to evaluate, view and run its business operations which include, but are not limited to, customer base, homogeneity of products and technology. The Group’s operating segments are based on this organizational structure and information reviewed by the Group’s CODM to evaluate the operating segment results. In 2021, the Group acquired an approximately 91.77% equity interests in Wuhan Miracle, which is mainly engaged in the research and development, production, sales and agency of laser and other optoelectronic medical beauty equipment, and it became a consolidated subsidiary of the Group. As a result of this acquisition, the Group changed its internal organizational structure and separated its businesses into the So-Young segment and Wuhan Miracle segment. This change in segment reporting aligns with the manner in which the Group’s CODM currently receives and uses financial information to allocate resources and evaluate the performance of reporting segments. This change in segment presentation does not affect consolidated balance sheets, consolidated statements of comprehensive income/(loss) or consolidated statements of cash flows. 22. Segment Information (Continued) The following tables present a summary of the Group’s operating segment results for the years ended December 31, 2020, 2021 and 2022, The Group does not allocate any assets to its business segments as the Group’s CODM does not use this information to measure the performance of the operating segments: For the Year Ended December 31, 2020 2021 2022 RMB RMB RMB Revenues: So-Young 1,294,988 1,580,507 1,017,170 Wuhan Miracle — 111,956 242,339 Total 1,294,988 1,692,463 1,259,509 Elimination — — (1,635) Consolidated total revenues 1,294,988 1,692,463 1,257,874 Cost of revenues: So-Young (212,206) (249,767) (259,940) Wuhan Miracle — (78,142) (134,369) Total (212,206) (327,909) (394,309) Elimination — 20 1,017 Consolidated total cost of revenues (212,206) (327,889) (393,292) Gross profit: So-Young 1,082,782 1,330,740 757,230 Wuhan Miracle — 33,814 107,970 Total 1,082,782 1,364,554 865,200 Elimination — 20 (618) Consolidated gross profit 1,082,782 1,364,574 864,582 The following table set forth the breakdown of net revenues by type of good or service for the years ended December 31, 2020, 2021 and 2022: For the Year Ended December 31, 2020 2021 2022 RMB RMB RMB Information services and others 962,089 1,304,455 888,475 Reservation services 332,899 276,052 128,668 Sales of equipment and maintenance services — 111,956 240,731 Total revenues 1,294,988 1,692,463 1,257,874 The following table presents the depreciation expenses of property and equipment in cost of revenues by segment for the years ended December 31, 2020, 2021 and 2022: For the Year Ended December 31, 2020 2021 2022 RMB RMB RMB So-Young 1,996 2,559 3,676 Wuhan Miracle — 550 1,855 Total depreciation expenses of property and equipment 1,996 3,109 5,531 22. Segment Information (Continued) The following table presents the amortization expenses of intangible assets in cost of revenues by segment for the years ended December 31, 2020, 2021 and 2022: For the Year Ended December 31, 2020 2021 2022 RMB RMB RMB So-Young 4,723 7,907 9,649 Wuhan Miracle — 5,647 12,667 Total amortization expense of Intangible assets 4,723 13,554 22,316 |
Impact of the COVID-19
Impact of the COVID-19 | 12 Months Ended |
Dec. 31, 2022 | |
Impact of the COVID-19 | |
Impact of the COVID-19 | 23. Impact of the COVID-19 In early 2020, in response to intensifying efforts to contain the spread of COVID-19, the PRC government has implemented a series of strict measures, including travel restrictions, quarantines, and a temporary shutdown of businesses which reduced the capacity and efficiency of the Group’s operations and negatively affected the Group’s results of operations and financial conditions in the first quarter of 2020. The Group have gradually resumed normal operations in the second half of 2020 as the spread of COVID-19 was substantially controlled in China and the number of new cases in China remained relatively low since then to the end of 2020. In 2021, macroeconomy was gradually recovering in China and business activities largely resumed. However, there is still continuing adverse impact on the Group’s revenues as a result of the challenging macroeconomic environment and the COVID-19 pandemic resurgence in 2022. The extent to which the COVID-19 impacts the Group is still uncertain and depends on a number of factors, including the duration and severity of COVID-19, the effectiveness of the mass vaccination program and other actions taken to contain its spread. If the situation materially deteriorates in the PRC, the Group’s business, results of operations and financial condition could be materially and adversely affected. The Group will regularly assess and adopt measures to offset any challenges created by the ongoing pandemic. |
Restricted Net Assets
Restricted Net Assets | 12 Months Ended |
Dec. 31, 2022 | |
Restricted Net Assets | |
Restricted Net Assets | 24. Restricted Net Assets Relevant PRC laws and regulations permit payments of dividends by the Group’s entities incorporated in the PRC only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. In addition, the Company’s entities in the PRC are required to annually appropriate 10% of their net after-tax income to the statutory general reserve fund prior to payment of any dividends, unless such reserve funds have reached 50% of their respective registered capital. Furthermore, cash transfers from the Company’s PRC subsidiaries to their parent companies outside of China are subject to PRC government control of currency conversion. Shortages in the availability of foreign currency may restrict the ability of the PRC subsidiaries and consolidated affiliated entities to remit sufficient foreign currency to pay dividends or other payments to the Company, or otherwise satisfy their foreign currency denominated obligations. Due to restrictions on distribution of share capital and statutory reserves in the PRC, total restrictions placed on distribution of net assets of the Group’s PRC subsidiaries, the VIEs and VIE’s subsidiaries was RMB948,503 and RMB1,087,002 as of December 31, 2021 and 2022, respectively. Even though the Company currently does not require any dividends, loans or advances from the PRC entities for working capital and other funding purposes, the Company may in the future require additional cash resources from them due to changes in business conditions, to fund future acquisitions and development, or merely to declare and pay dividends or distributions to its shareholders. |
Additional Information-Parent C
Additional Information-Parent Company Only Condensed Financial Information | 12 Months Ended |
Dec. 31, 2022 | |
Additional Information-Parent Company Only Condensed Financial Information | |
Additional Information-Parent Company Only Condensed Financial Information | 25. Additional Information—Parent Company Only Condensed Financial Information The Company performed a test on the restricted net assets of subsidiaries and VIE in accordance with Securities and Exchange Commission Regulation S-X Rule 4-08 (e) (3), “General Notes to Financial Statements” and concluded that the condensed financial information of the Company is required to be presented. The Company did not have significant capital and other commitments or guarantees as of December 31, 2022. 25. Additional Information—Parent Company Only Condensed Financial Information (Continued) (a) Condensed balance sheets of So-Young International Inc. As of December 31, 2021 2022 2022 RMB RMB US$ Note 2(e) Assets Current assets: Cash and cash equivalents 55,806 143,100 20,747 Amounts due from VIE companies 39,681 — — Amounts due from Group companies 1,457,100 1,671,880 242,400 Term deposits and short-term investments 318,881 208,938 30,293 Prepayment and other current assets 6,027 6,826 990 Total current assets 1,877,495 2,030,744 294,430 Non-current assets: Investment in subsidiaries and VIE companies 617,773 531,693 77,088 Long-term investments 7,418 — — Total non-current assets 625,191 531,693 77,088 Total assets 2,502,686 2,562,437 371,518 Liabilities Amounts due to VIE companies 35,529 39,786 5,768 Amounts due to Group companies 20,068 23,722 3,439 Accrued expenses and other current liabilities 900 1,004 148 Total liabilities 56,497 64,512 9,355 Shareholders’ deficit Treasury stock (217,712) (232,835) (33,758) Class A Ordinary shares (US$ 0.0005 par value; 750,000,000 shares authorized as of December 31, 2021 and December 31, 2022; 71,736,059 and 69,092,367 shares issued and outstanding as of December 31, 2021; 73,065,987 and 68,843,320 shares issued and outstanding as of December 31, 2022, respectively) 230 236 33 Class B Ordinary shares (US$ 0.0005 par value; 20,000,000 shares authorized as of December 31, 2021 and 2022; 12,000,000 shares issued and outstanding as of December 31, 2021 and 2022) 37 37 5 Additional paid-in capital 2,999,562 3,043,971 441,334 Statutory reserves 20,331 29,027 4,209 Accumulated deficit (272,368) (346,618) (50,255) Accumulated other comprehensive (loss)/income (83,891) 4,107 595 Total shareholders’ equity 2,446,189 2,497,925 362,163 Total liabilities and shareholders’ equity 2,502,686 2,562,437 371,518 25. Additional Information—Parent Company Only Condensed Financial Information (Continued) (b) Condensed statements of comprehensive (loss)/income of So-Young International Inc. For the Year Ended December 31, 2020 2021 2022 2022 RMB RMB RMB US$ Note 2(e) Operating expenses: General and administrative expenses (7,574) (9,556) (9,659) (1,400) Loss from operations (7,574) (9,556) (9,659) (1,400) Share of profit/(loss) of subsidiaries and VIE 763 (1,412) (55,104) (7,989) Income/(loss) from non-operations 12,618 2,597 (791) (115) Net income/(loss) 5,807 (8,371) (65,554) (9,504) Net income/(loss) 5,807 (8,371) (65,554) (9,504) Other comprehensive loss: Foreign currency translation adjustment (144,225) (31,399) 87,998 12,759 Total comprehensive (loss)/income (138,418) (39,770) 22,444 3,255 (c) Condensed statements of cash flows of So-Young International Inc. For the Year Ended December 31, 2020 2021 2022 2022 RMB RMB RMB US$ Note 2(e) Cash flows from operating activities: Net cash provided by/(used in) operating activities 43,212 12,117 (54,390) (7,886) Cash flows from investing activities: Purchase of short-term investments (402,913) (610,841) (201,348) (29,193) Proceeds from maturities of short-term investments 808,562 549,344 318,785 46,219 Loans to Group companies (823,116) (446,270) (82,766) (12,000) Repayments from Group companies 365,401 764,712 41,383 6,000 Other investing activities with external parties (8,266) — — — Net cash (used in)/provided by investing activities (60,332) 256,945 76,054 11,026 Cash flows from financing activities: Net cash provided by/(used in) financing activities 696 (216,743) (14,247) (2,065) Effect of exchange rate changes on cash and cash equivalents (51,506) (2,813) 79,877 11,581 Net (decrease)/increase in cash and cash equivalents (67,930) 49,506 87,294 12,656 Cash and cash equivalents at beginning of year 74,230 6,300 55,806 8,091 Cash and cash equivalents at end of year 6,300 55,806 143,100 20,747 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events. | |
Subsequent Events | 26. Subsequent Events In January 2023, the board of directors of the Company authorized an adjustment to the Company’s previously adopted Share Repurchase Program, increasing the aggregate value of shares (including in the form of ADS) that the Company is authorized to repurchase under the program from US$15 million to US$25 million. As of the date of this annual report, the Company has repurchased approximately 7.4 million ADSs (equivalent to 5.7 million ordinary shares) for approximately US$15.2 million (RMB104.9 million) under this program. In March 2023, the disposal of Leya was completed with a total consideration of RMB5.7 million (US$0.8 million). In March 2023, the modification of the exercise price of the outstanding share options granted under the Second Amended and Restated 2018 Share Plan and the 2021 Share Incentive Plan was approved by the Board of Directors. The exercise price is reduced from US$0.1 to US$0.01 and will also be applied to the share options granted under the 2023 Share Incentive Plan. The modification does not have a significant impact on the Group’s consolidated financial statements. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Summary of Significant Accounting Policies | |
Basis of presentation and consolidation | (a) Basis of presentation and consolidation The consolidated financial statements of the Group have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Significant accounting policies followed by the Group in the preparation of the accompanying consolidated financial statements are summarized below. |
Principles of consolidation | (b) Principles of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries, the VIEs and subsidiaries of the VIEs for which the Company are the primary beneficiary. Subsidiaries are those entities in which the Company, directly or indirectly, controls more than one half of the voting power, has the power to appoint or remove the majority of the members of the board of directors, or to cast a majority of votes at the meeting of the board of directors, or has the power to govern the financial and operating policies of the investee under a statute or agreement among the shareholders or equity holders. A consolidated VIE is an entity in which the Company, or its subsidiary, through contractual arrangements, has the power to direct the activities that most significantly impact the entity’s economic performance, bears the risks of and enjoys the rewards normally associated with ownership of the entity, and therefore the Company or its subsidiary is the primary beneficiary of the entity. All transactions and balances among the Company, its subsidiaries, the consolidated VIE and subsidiaries of the VIE have been eliminated upon consolidation. |
Use of estimates | (c) Use of estimates The preparation of the Group’s consolidated financial statements in conformity with the U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities at the balance sheet date and reported revenues and expenses during the reported years in the consolidated financial statements and accompanying notes. Significant accounting estimates include, but are not limited to, valuation of acquired intangible assets and property and equipment, impairment of goodwill and definite-lived intangible asset and useful lives of intangible assets. Actual results could differ from those estimates and such differences may be material to the consolidated financial statements. |
Functional currency and foreign currency translation | (d) Functional currency and foreign currency translation The Group uses Renminbi (“RMB”) as its reporting currency. The functional currency of the Company and its overseas subsidiaries which incorporated in the Cayman Islands and Hong Kong is United States dollars (“US$” or “USD”). The functional currency of the Company’s subsidiary incorporated in Korea is Korea Won. The functional currency of the Group’s PRC entities is RMB. In the consolidated financial statements, the financial information of the Company and other entities located outside of the PRC have been translated into RMB. Assets and liabilities are translated at the exchange rates on the balance sheet date, equity amounts are translated at historical exchange rates, and revenues, expenses, gains and losses are translated using the average rate for the period. Translation adjustments are reported as foreign currency translation adjustments and are shown as a component of other comprehensive income/(loss) in the consolidated statements of comprehensive income/(loss). Foreign currency transactions denominated in currencies other than the functional currency are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency using the applicable exchange rates at the balance sheet dates. Net gains and losses resulting from foreign exchange transactions are included in exchange losses in the consolidated statements of comprehensive income/(loss). |
Convenience translation | (e) Convenience translation Translations of balances in the consolidated balance sheets, consolidated statements of comprehensive income/(loss) and consolidated statements of cash flows from RMB into USD as of and for the year ended December 31, 2022 are solely for the convenience of the reader and were calculated at the rate of US$1.00 = RMB6.8972, representing the exchange rate set forth in the H.10 statistical release of the Federal Reserve Board on December 30, 2022. No representation is made that the RMB amounts represent or could have been, or could be, converted, realized or settled into USD at that rate on December 31, 2022, or at any other rate. |
Fair value measurements | (f) Fair value measurements Fair value reflects the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. (f) Fair value measurements (Continued) The Group applies a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Accounting guidance specifies a hierarchy of valuation techniques, which is based on whether the inputs into the valuation techniques are observable or unobservable. The hierarchy is as follows: Level 1—Valuation techniques in which all significant inputs are unadjusted quoted prices from active markets for assets or liabilities that are identical to the assets or liabilities being measured. Level 2—Valuation techniques in which significant inputs include quoted prices from active markets for assets or liabilities that are similar to the assets or liabilities being measured and/or quoted prices for assets or liabilities that are identical or similar to the assets or liabilities being measured from markets that are not active. Also, model-derived valuations in which all significant inputs and significant value drivers are observable in active markets are Level 2 valuation techniques. Level 3—Valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Unobservable inputs are valuation technique inputs that reflect the Group’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. Accounting guidance also describes three main approaches to measure the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. When available, the Group uses quoted market prices to determine the fair value of an asset or liability. If quoted market prices are not available, the Group will measure fair value using valuation techniques that use, when possible, current market-based or independently sourced market parameters, such as interest rates and currency rates. See Note 20 Fair Value Measurement for additional information. |
Cash and cash equivalents | (g) Cash and cash equivalents Cash and cash equivalents consist of cash on hand and demand deposits which have original maturities of three months or less and are readily convertible to known amount of cash. |
Restricted cash | (h) Restricted cash Cash that is restricted as to withdrawal or for use or pledged as security is reported separately on the face of the consolidated balance sheets as restricted cash. Restricted cash represents cash received from medical aesthetic service providers and reserved in a bank supervised account for purchasing the services of the Company and the guarantee deposit. |
Term deposits | (i) Term deposits Term deposits represent time deposits placed with banks with original maturities of more than three months. Interest earned is recorded as interest income in the consolidated statements of comprehensive income/(loss) during the years presented. The Group’s term deposits were nil and RMB875,955 as of December 31, 2021 and 2022, respectively. |
Trade receivables and other receivables | (j) Trade receivables and other receivables The Group’s trade receivables and other receivables including loans are measured at amortized cost and reported on the consolidated balance sheets at outstanding principal adjusted for any write-offs and the allowance for credit losses. Starting from January 1, 2020, the Group adopted ASU 2016-13 and estimated the allowance for credit losses to reflect the Group’s estimated expected losses. The Group assesses the allowance for credit losses, mainly based on the past collection experience as well as consideration of current and future economic conditions and changes in the Group’s customer collection trends. Interest income from these instruments is using the effective interest rate method if applicable. |
Current Expected Credit losses | (k) Current Expected Credit losses Starting from January 1, 2020, the Group adopted ASU No. 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASC Topic 326”), which amends previously issued guidance regarding the impairment of financial instruments by creating an impairment model that is based on expected losses rather than incurred losses. The Group used a modified retrospective approach with a cumulative effect increases of approximately RMB784 thousands recorded in accumulated deficit. The Group’s trade receivables, prepayment and other current assets, other non-current assets, cash and cash equivalents, restricted cash and term deposits are within the scope of ASC Topic 326. The Group’s expected credit loss of cash and cash equivalents, restricted cash and term deposits within the scope of ASC Topic 326 were immaterial. To estimate expected credit losses, the Group has identified the relevant risk characteristics of its customers and the related receivables and other receivables which include size, type of the services or the products the Group provides, or a combination of these characteristics. Receivables with similar risk characteristics have been grouped into pools. For each pool, the Group considers the past collection experience, current economic conditions, future economic conditions (external data and macroeconomic factors) and changes in the Group’s customer collection trends. This is assessed at each quarter based on the Group’s specific facts and circumstances. No significant impact of changes in the assumptions since adoption. The Group recorded a provision for current expected credit loss. Write-offs charged against the allowance are not material for the years ended December 31, 2021 and 2022, respectively. The following table sets out movements of the allowance for doubtful accounts for the years ended December 31, 2021 and 2022: For the Year Ended December 31, 2020 2021 2022 RMB RMB RMB Beginning balance 784 7,089 29,210 Allowance arisen from business combination — 6,623 — Additional allowance for credit losses, net of recoveries 6,305 15,498 13,224 Ending balance 7,089 29,210 42,434 |
Inventories | (l) Inventories Inventories are stated at the lower of cost and net realizable value. Cost of inventories is determined using the weighted average cost method. Adjustments are recorded to write down the cost of inventories to the estimated net realizable value due to slow-moving merchandise and damaged goods, which is dependent upon factors such as inventory aging, historical and forecasted consumer demand, and market conditions that impact pricing. In addition to the cost of materials and direct labor, an appropriate proportion of production overhead is included in the cost of inventories. Once inventory is written-down, a new, lower-cost basis for that inventory is established and subsequent changes in facts and circumstances do not result in the restoration or increase in that newly established cost basis. The Group classifies its inventories to raw materials, semi-finished products and finished products. Raw materials and semi-finished products include purchased materials, components and supplies to be used in production. Finished products include products manufactured by the Group and products purchased for resale. |
Investments | (m) Investments Short-term investments mainly include investments in financial instruments with a variable interest rate. In accordance with ASC 825—“Financial Instruments”, for investments in financial instruments with a variable interest rate indexed to time float, the Group elected the fair value method at the date of initial recognition and carried these investments at fair value. Changes in the fair value are reflected in the consolidated statements of comprehensive income/(loss) as other income/(expenses). The Company’s long-term investments consist of investments in privately held companies. In accordance with ASC 323 “Investments-Equity Method and Joint Ventures”, the Group applies the equity method of accounting to equity investments in common stock, over which it has significant influence but does not own majority equity interest or control. In January 2016, the FASB issued ASU No. 2016-01 Financial Instruments-Overall (Subtopic 825-10): “Recognition and Measurement of Financial Assets and Financial Liabilities”, which requires all equity investments to be measured at fair value with changes in the fair value recognized through non-operating income (other than those accounted for under equity method of accounting or those that result in consolidation of the investee). Effective January 1, 2018 with the adoption of ASU 2016-01, the Group has elected to use the measurement alternative to account for the equity investments, over which the Company does not have significant influence, or investments in shares that are not ordinary shares or in-substance ordinary shares and that do not have readily determinable fair value, and therefore carries these investments at cost adjusted for changes from observable transactions for identical or similar investments of the same investee, less impairment. In addition, the existing impairment model has been replaced with a new one-step qualitative impairment model. Management regularly evaluates the equity investments for impairment based on performance and financial position of the investees as well as other evidence of market value. Such evaluation includes, but not limited to, reviewing the investees’ cash position, recent financing, projected and historical financial performance, cash flow forecasts and financing needs. An impairment loss is recognized in the consolidated statements of comprehensive income/(loss) equal to the excess of the investment’s cost over its fair value at the balance sheet date of the reporting year for which the assessment is made. The fair value would then become the new cost basis of investment. Nil, RMB17,850 and RMB7,945 impairment losses were recognized for the years ended December 31, 2020, 2021 and 2022. |
Business combination and goodwill | (n) Business combination and goodwill The Group accounts for its business combinations using the acquisition method of accounting in accordance with ASC 805, Business Combinations. The cost of an acquisition is measured as the aggregate of the acquisition date fair values of the assets transferred and liabilities incurred by the Group to the sellers and equity instruments issued. Transaction costs directly attributable to the acquisition are expensed as incurred. Identifiable assets and liabilities acquired or assumed are measured separately at their fair values as of the acquisition date, irrespective of the extent of any non-controlling interests. The excess of (i) the total costs of acquisition, fair value of the non-controlling interests and acquisition date fair value of any previously held equity interest in the acquiree over (ii) the fair value of the identifiable net assets of the acquiree is recorded as goodwill. If the cost of acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognized directly in the consolidated statements of comprehensive income/(loss). A non-controlling interest is recognized to reflect the portion of a subsidiary’s equity which is not attributable, directly or indirectly, to the Company. When the non-controlling interest is contingently redeemable upon the occurrence of a conditional event, which is not solely within the control of the Company, the non-controlling interest is classified as mezzanine equity. Consolidated net income/(loss) on the consolidated statements of comprehensive income/(loss) includes the net loss attributable to non-controlling interests and mezzanine equity holders when applicable. Net loss attributable to mezzanine equity holders is included in net loss attributable to non-controlling interests on the consolidated statements of comprehensive income/(loss), while it is excluded from the consolidated statements of changes in shareholders’ equity. For the years ended December 31, 2020, 2021 and 2022, net loss attributable to non-controlling interests amounted to RMB930, RMB29,265 and RMB553, respectively. The cumulative results of operations attributable to non-controlling interests are also recorded as non-controlling interests in the Company’s consolidated balance sheets. Cash flows related to transactions with non-controlling interests are presented under financing activities in the consolidated statements of cash flows when applicable. Goodwill represents the excess of the total cost of the acquisition, the fair value of any non-controlling interests and the acquisition date fair value of any previously held equity interest in the acquiree over the fair value of the identifiable tangible and intangible assets acquired and liabilities assumed of the acquired entity as a result of the Company’s acquisitions of interests in its subsidiaries and the VIEs. Goodwill is not amortized but is tested for impairment on an annual basis, or more frequently if events or changes in circumstances indicate that it might be impaired. The Company has the option to assess qualitative factors first to determine whether it is necessary to perform the quantitative impairment test in accordance with ASC 350, Intangibles-Goodwill and Other: Goodwill (“ASC 350-20”). If the Company believes, as a result of the qualitative assessment, that it is more-likely-than-not that the fair value of the reporting unit is less than its carrying amount, the quantitative impairment test described above is required. Otherwise, no further testing is required. In the qualitative assessment, the Company considers primary factors such as industry and market considerations, overall financial performance of the reporting unit, and other specific information related to the operations. The quantitative goodwill impairment test, used to identify both the existence of impairment and the amount of impairment loss, compares the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying amount of a reporting unit is greater than zero and its fair value exceeds its carrying amount, goodwill of the reporting unit is considered not impaired. |
Assets acquisition | (o) Assets acquisition When the Company acquires other entities, if the assets acquired and liabilities assumed do not constitute a business, the transaction is accounted for as an asset acquisition. Assets are recognized based on the cost, which generally includes the transaction costs of the asset acquisition, and no gain or loss is recognized unless the fair value of noncash assets given as consideration differs from the assets’ carrying amounts on the Company’s books. The cost of a group of assets acquired in an asset acquisition is allocated to the individual assets acquired or liabilities assumed based on their relative fair value and does not give rise to goodwill. |
Intangible assets | (p) Intangible assets Intangible assets mainly include those acquired through business combinations and purchased intangible assets. Intangible assets acquired through business combinations are recognized as assets separate from goodwill if they satisfy either the “contractual-legal” or “separability” criterion. Intangible assets arising from business combinations are recognized and measured at fair value upon acquisition. Purchased intangible assets are initially recognized and measured at cost upon acquisition. Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable.The impairment of intangible assets was nil, RMB17,379 and nil for the years ended December 31, 2020, 2021 and 2022, respectively. Separately identifiable intangible assets that have determinable lives continue to be amortized over their estimated useful lives using the straight-line method as follows: Developed technology 7-10 years License and in-process research and development intangible assets 10 years Software, trade names and others 3-10 years Customer relationship 8 years Supplier relationship 3 years |
Property and equipment, net | (q) Property and equipment, net Property and equipment are stated at cost less accumulated depreciation and impairment, if any. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, which range as follows: Computers, electrical equipment and production machinery 1-5 years Office equipment, furniture and others 1-10 years Building 20 years Leasehold improvements shorter of remaining lease period or estimated useful life Expenditures for maintenance and repairs are expensed as incurred. The gain or loss on the disposal of property and equipment is the difference between the net sales proceeds and the carrying amount of the relevant assets and is recognized in the consolidated statements of comprehensive income/(loss). |
Impairment of long-lived assets other than goodwill | (r) Impairment of long-lived assets other than goodwill Long-lived assets are evaluated for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying value of an asset may not be fully recoverable or that the useful life is shorter than the Group had originally estimated. When these events occur, the Group evaluates the impairment for the long-lived assets by comparing the carrying value of the assets to an estimate of future undiscounted cash flows expected to be generated from the use of the assets and their eventual disposition. If the sum of the expected future undiscounted cash flow is less than the carrying value of the assets, the Group recognizes an impairment loss based on the excess of the carrying value of the assets over the fair value of the assets. |
Leases | (s) Leases The Group determines if an arrangement is a lease or contains a lease at lease inception. For operating leases, the Group recognizes a right-of-use (“ROU”) asset and a lease liability based on the present value of the lease payments over the lease term on the consolidated balance sheets at commencement date. As most of the Company’s leases do not provide an implicit rate, the Company estimates its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments, and in economic environments where the leased asset is located. Lease terms are determined after taking into account of rental escalation clauses, renewal options and/or termination options, if any. Lease expense is recorded in the consolidated statements of comprehensive income/(loss) on a straight-line basis over the lease term. The Group has elected to apply “the package” of practical expedients afforded under ASU No. 2016-02, Leases (Topic 842) (“ASC 842”). Short-term leases have not been recorded on the balance sheet. |
Revenue recognition | (t) Revenue recognition The Group adopted ASC Topic 606, “Revenue from Contracts with Customers” (ASC 606) for all years presented. According to ASC 606, revenue is recognized when control of the promised goods or services is transferred to the customers, in an amount that reflects the consideration the Group expects to be entitled to in exchange for those goods or services. We determine revenue recognition through the following steps: ● identification of the contract, or contracts, with a customer; ● identification of the performance obligations in the contract; ● determination of the transaction price, including the constraint on variable consideration; ● allocation of the transaction price to the performance obligations in the contract; and ● recognition of revenue when (or as) we satisfy a performance obligation The Group’s revenues are mainly generated from information services, reservation services and sales of equipment and maintenance services. Refer to “Note 22 - Segment Information” for disaggregation of revenue. i) Information services The Group generates revenue from offering information services primarily to help medical aesthetic service providers better introduce their services and increase their customer base. The Group helps the service providers introduce their services through information display in main entrance banners and pop ups to increase exposure on the platform. The Group also places content of participating service providers on social platforms in the forms of pictures, videos or links. The Group generates its information service revenue primarily i) at a fixed fee per each day’s content display, ii) based on a contractual rate per unit of output, such as per click, etc., iii) at a fixed fee per each article posted on the Group’s social media accounts. These information services may be sold in combination as a bundled arrangement or separately on a stand-alone basis. Service providers can choose to sign up arrangements through the Group’s online information service system or sign-up off-line arrangements. Advance payment is required when signing up the arrangements. In the case of signing up on-line arrangements, the service providers are required to purchase So Young tokens (the “Token”) in the service provider account as the information service is priced in Tokens on the on-line platform. Tokens are the virtual currency of the Company’s platform. The Token will be locked in the individual service provider account when a service provider places an order on-line and will be deducted from the service provider account when service is performed. On a recurring basis, the Group offers free Tokens to service providers as certain percentage of purchased Tokens. The free Tokens have the same purchase power as the purchased Tokens, which represent an advance payment from customers. Tokens are interchangeable and not tied directly to any specific revenue transaction because the Tokens are fungible. As such, the Group values the Tokens based on an average pricing method to determine the transaction price for the specific information services provided to the service provider. The Tokens are not transferable or refundable and are generally consumed in three months after purchased or given for free. The value of expired Tokens has been immaterial. In the case of signing up off-line arrangements, the service providers are required to make cash advance payment for each individual contract. Contract consideration is determined and fixed in cash at the inception of contract. Revenue for the information services above is recognized in the period when information service is delivered as evidenced in a manner satisfying the types of engagements selected by the service providers, such as display of content, clicks on content and/or post of articles on the Group’s platform. Arrangements involving multiple performance obligations primarily consist of combinations of the above information services. For arrangements that include a combination of these services, the Company develops an estimate of the standalone selling price for these services in order to allocate any potential discount to all performance obligations in the arrangement. The Company believes the use of its estimation approach and allocation of the transaction price on a relative standalone selling price basis to each performance obligation results in revenue recognition in a manner consistent with the underlying economics of the transaction and the allocation principle included in ASC 606. The Group also provides other services, which are also presented under information service, primarily comprising medical aesthetic service displayed on So-Young Prime, etc. Revenue is recognized when these services are rendered. For the years ended December 31, 2020, 2021 and 2022, the revenue derived from other services was not significant. Barter transactions The Company entered agreements with service providers whereby the Company provided information service as the consideration for sharing advertising space purchased by the service providers from other third-party providers. In general, the service provider would share certain percentage of the purchased advertising space with the Company. In exchange, the Company would provide the Tokens with the same value of the shared advertising space to the service provider based on the service provider’s purchase price with the third party and the shared percentage of the advertising space. Revenue from the barter transactions is recognized when information service is provided as discussed above and the expense related to the shared advertising space is recognized over the duration of display. The Group uses the fair value of the goods or services received when measuring the non-cash consideration for information service revenue earned. The Group will only measure the non-cash consideration indirectly by reference to the standalone selling price of the goods or services surrendered if the fair value of the goods or services received is not reasonably estimable. The Group recognized revenue from barter transactions amounted to RMB8,770, RMB3,411 and RMB551 for the years ended December 31, 2020, 2021 and 2022, respectively. The expenses recognized from barter transaction for the years ended December 31, 2020, 2021 and 2022 were RMB11,778, RMB4,516 and RMB1,269, respectively. ii) Reservation services The Group earns reservation service fees A primarily from medical aesthetic service providers when a medical or beauty treatment is performed for the platform users through reservation from the Group’s platform. Such fees are generally determined as an agreed percentage of the value of service actually provided by service providers. As per the Group’s agreements with service providers, it collects reservation service fees B for all services provided to a user during the lifetime as long as the user was brought to the particular service provider through the Group’s platform. This includes the situations where the user visits the service provider directly without online ordering, chooses treatment services at site that is different from the online reservation, adds more services during the time of visit, and visits the service provider for other treatments in the future. The service providers are obligated to report the completed transactions in above situations with the platform users to the Group. In the event that the service providers fail to report such transaction to the Group on time, the Group would charge the service providers a penalty in addition to the commission. Starting from September 2021, the Group does not charge reservation service fees B from the majority of the medical aesthetic service providers. In order to list available services and related prices on the Group’s online marketplace, service providers are required to sign an agreement with the Group and pay a non-refundable upfront fee to the Group. However, the agreement does not have binding effect as the service provider can cancel the agreement without any penalty. Although the upfront fee is not a material amount, it provides the service provider a renewal right to make optional purchase of the Group’s reservation service. The agreement is in substance a day-to-day contract with performance obligation of facilitating each successful sales of service provided by service providers to the platform users. That is, each facilitation is a distinct performance obligation. Commissions for the reservation service are in the form of a fixed fee per transaction or an agreed percentage of the value of service actually provided by the service providers. The consideration for each sales facilitation service is determined when the contract is placed. Following ASC 606-10-32-40, the Company recognizes revenue for each completed transaction based on the value of service actually provided by the service providers as reservation service fee relates specifically to the facilitation for that transaction. The Group does not control the underlying service provided by the service providers before they are provided to users, as the Group is not responsible for fulfilling the promise to provide the service to users and has no inventory risk before the service is provided. In addition, the Group has no discretion in establishing prices of the service provided by service providers. Commission revenues are recognized on a net basis at the point of a successful transaction, which is when the user accepts the service. The Group provides various incentives to the users to reserve service on the marketplace. These incentive programs mainly include loyalty program (So-Young points) and coupons, which are both redeemed mainly to reduce the transaction price. The Company has considered the guidance under ASC 606 to account for these incentives and determined to record them as a reduction to the revenue upon redemption. iii) Sales of equipment and maintenance services The Group’s sales of equipment and maintenance services revenue generates from Wuhan Miracle, which was acquired by the Group in July 2021. Wuhan Miracle sells its equipment, including self-produced products and third-party produced products, to offline medical aesthetic service providers and hospitals (the “customers”). For the third-party produced equipment, the Group obtains control of the products before they are transferred to the customers. The Group is primarily responsible for fulfilling the promise to provide quality products to the customers and undertakes warranty responsibility directly. Therefore, the Group is considered the principle according to ASC 606 and concludes it is appropriate to record revenue as the gross amount of product sales net of value-added taxes. The Group recognizes revenue on equipment sales to customers when delivery and acceptance occurs, which is defined as receipt by the Company of an executed form that the installation process is complete. iv) Warranty The Group offers a standard one-year warranty with its equipment sales. The warranty period is starting from the date when products are sold to the customer. The customers cannot separately purchase the standard warranty and the standard warranty doesn’t provide the customer with additional service other than assurance that the product will function as expected. Therefore, these warranties are accounted for in accordance with ASC 460 Guarantees. At the time revenue is recognized, the Group accrues a warranty reserve, which includes the Group’s best estimate of warranty costs. The reserves established are regularly monitored based upon historical experience and any actual claims charged against the reserve. The warranty reserve is expected to be incurred within the next 12 months and recorded as “Accrued expenses and other current liabilities” on the Group’s consolidated balance sheets. Warranty expenses are recorded as a component of cost of revenues. Refer to “Note 14 - Accrued expenses and other current liabilities” for detail. The Group also offers extended warranty for an additional fee, which is accounted for as a separate performance obligation under ASC 606. Revenue related to extended warranty is recognized on a straight-line basis over the term as maintenance service because the Group is providing continuous service and the customer simultaneously receives and consumes the benefits provided by the Group’s performance as the services are performed. |
Cost of revenues | (u) Cost of revenues Cost of revenues consists primarily of payroll costs, share-based compensation expenses, cost of inventory, servers and bandwidth costs, depreciation expenses, payment processing fee paid to third party online platform, tax related surcharges, rental expenses and other direct costs related to the operation of business. These costs are charged to the consolidated statements of comprehensive income/(loss) as incurred. |
Sales and marketing expenses | (v) Sales and marketing expenses Sales and marketing expenses consist primarily of marketing expenses, user acquisition activities expenses, payroll costs, share-based compensation expenses, and rental expenses related to the Group’s sales and marketing departments. For the years ended December 31, 2020, 2021 and 2022, advertising expenses were RMB555,260, RMB570,347 and RMB254,893, respectively. |
General and administrative expenses | (w) General and administrative expenses General and administrative expenses consist of payroll costs, share-based compensation expenses and related expenses for employees involved in general corporate functions, including accounting, finance, tax, legal and human resources; and costs associated with use by these functions of facilities and equipment, such as depreciation expenses, rental, professional service fees and other general corporate related expenses. |
Research and development expenses | (x) Research and development expenses Research and development expenses mainly consist of payroll costs, share-based compensation expenses, rental expenses incurred associated with research and development departments. For those platforms of applications, the Group expenses all costs incurred for the preliminary project stage and post implementation-operation stage of development, and costs associated with repair or maintenance of the existing platform. Costs incurred in the application development stage are capitalized and amortized over the estimated useful life. Since the amount of the Group’s research and development expenses qualifying for capitalization has been immaterial, as a result, all website and software development costs have been expensed in “Research and development expenses” as incurred. |
Share-based compensation | (y) Share-based compensation Share-based compensation expenses arise from share-based awards, including share options for the purchase of ordinary shares. The Group applies ASC 718, “Compensation—Stock Compensation”, or ASC 718, to account for the options granted to certain directors, executives and employees. For share options for the purchase of ordinary shares granted to employees determined to be equity classified awards, the related share-based compensation expenses are recognized in the consolidated financial statements based on their grant date fair values. The Group estimates the fair value of share options using the binomial valuation model, which requires inputs such as the fair value of the Company’s ordinary shares, risk-free interest rate, expected dividend yield, expected life and expected volatility. Employees’ share-based compensation awards are measured at the grant date fair value of the awards and recognized as expenses (a) immediately at the grant date if no vesting conditions are required; or (b) for share options granted with only service conditions, using the straight-line vesting method, net of actual forfeitures, over the vesting period; or (c) for share options granted with service conditions and performance condition, the share-based compensation expenses are recorded when the performance condition is considered probable using the graded vesting method. |
Employee benefits | (z) Employee benefits PRC Contribution Plan Full time employees of the Group in the PRC participate in a government mandated defined contribution plan, pursuant to which certain pension benefits, medical care, employee housing fund and other welfare benefits are provided to the employees. Chinese labor regulations require that the PRC subsidiaries and the VIE of the Group make contributions to the government for these benefits based on certain percentages of the employees’ salaries, up to a maximum amount specified by the local government. The Group has no legal obligation for the benefits beyond the contributions made. The total amounts of such employee benefit expenses, which were expensed as incurred, were approximately RMB46,910, RMB115,951 and RMB108,057 for the years ended December 31, 2020, 2021 and 2022, respectively. |
Taxation | (aa) Taxation Income taxes Current income taxes are provided on the basis of income/(loss) for financial reporting purposes, adjusted for income and expense items which are not assessable or deductible for income tax purposes, in accordance with the regulations of the relevant tax jurisdictions. Deferred income taxes are provided using the liability method. Under this method, deferred income taxes are recognized for the tax consequences of temporary differences by applying enacted statutory rates applicable to future years to differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. The tax base of an asset or liability is the amount attributed to that asset or liability for tax purposes. The effect on deferred taxes of a change in tax rates is recognized in the consolidated statements of comprehensive income/(loss) in the period of change. A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more likely than not that some portion of, or all of the deferred tax assets will not be realized. Uncertain tax positions In order to assess uncertain tax positions, the Group applies a more-likely-than not threshold and a two-step approach for the tax position measurement and financial statement recognition. Under the two-step approach, the first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. The Group recognizes interest and penalties, if any, under accrued expenses and other current liabilities on its consolidated balance sheets and under other expenses in its consolidated statements of comprehensive income/(loss). The Group did not have any significant unrecognized uncertain tax positions as of December 31, 2021 and 2022 nor did the Group recognize any related interest and penalties. |
Related parties | (ab) Related parties Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject to common control or common significant influence. Related parties may be individual or corporation entities. |
Net earnings/(loss) per share | (ac) Net earnings/(loss) per share Net earnings/(loss) per ordinary share is computed in accordance with ASC 260, “Earnings per Share”. The two-class method is used for computing earnings per ordinary share in the event the Group has net income available for distribution. Under the two-class method, net income is allocated between ordinary shares and other participating securities based on their participating rights. Class A ordinary share and Class B ordinary share have the same rights in dividend. Therefore, basic and diluted loss per share is the same for both classes of ordinary shares. Net losses are not allocated to other participating securities as they are not obligated to share the losses based on their contractual terms. Basic net earnings/(loss) per ordinary share is computed by dividing net income/(loss) attributable to So-Young International Inc., considering the accretions of convertible redeemable preferred shares, by the weighted average number of ordinary shares outstanding during the year. Diluted net earnings/(loss) per ordinary share is calculated by dividing net income/(loss) attributable to So-Young International Inc., as adjusted for the effect of dilutive ordinary equivalent shares, if any, by the weighted average number of ordinary and dilutive ordinary equivalent shares outstanding during the years. Ordinary equivalent shares consist of ordinary shares issuable upon the exercise of share options using the treasury stock method. Ordinary equivalent shares are not included in the denominator of the diluted net earnings/(loss) per share calculation when inclusion of such share would be anti-dilutive. |
Treasury stock | (ad) Treasury stock The Group accounts for treasury stock using the cost method. Under this method, the cost incurred to purchase the shares is recorded in the treasury stock account on the consolidated balance sheets. At retirement or cancellation of the treasury stock, the ordinary shares account is charged only for the aggregate par value of the shares. The excess of the acquisition cost of treasury stock over the aggregate par value is allocated between additional paid-in capital and retained earnings. On May 7, 2021, the board of directors of the Company authorized a share repurchase program under which the Company is authorized to repurchase up to an aggregate value of US$70 million of its shares (including in the form of ADS) during the 12-month period beginning from May 7,2021. As of December 31, 2021, the Company has repurchased approximately 3,436,800 ADSs (equivalent to 2,643,692 ordinary shares) for approximately US$34.0 million (RMB217.7 million) under this program. On November 18, 2022, the board of directors of the Company authorized a share repurchase program under which the Company is authorized to repurchase up to an aggregate value of US$15 million of its shares (including in the form of ADS) during the 12-month period beginning from November 18, 2022. As of December 31, 2022, the Company has repurchased approximately 2,052,667 ADSs (equivalent to 1,578,975 ordinary shares) for approximately US$2.2 million (RMB15.1 million) under this program. |
Statutory reserves | (ae) Statutory reserves The Company’s subsidiaries, the VIEs and subsidiaries of the VIEs established in the PRC are required to make appropriations to certain non-distributable reserve funds. In accordance with China’s Company Laws, the Company’s VIEs and its subsidiaries registered as Chinese domestic company make appropriations from their after-tax profit (as determined under the accounting principles generally acceptable in the People’s Republic of China (“PRC GAAP”)) to non-distributable reserve funds including (i) statutory surplus fund and (ii) discretionary surplus fund. The appropriation to the statutory surplus fund must be 10% of the annual after-tax profits calculated in accordance with PRC GAAP. Appropriation is not required if the statutory surplus fund has reached 50% of the registered capital of the respective company. Appropriation to the discretionary surplus fund is made at the discretion of the respective company. Pursuant to the laws applicable to China’s Foreign Investment Enterprises, the Company’s subsidiaries registered as wholly owned foreign investment enterprise in China make appropriations from their annual after-tax profit (as determined under PRC GAAP) to reserve funds including (i) general reserve fund, (ii) enterprise expansion fund and (iii) staff bonus and welfare fund. The appropriation to the general reserve fund must be at least 10% of the after-tax profits calculated in accordance with PRC GAAP. Appropriation is not required if the general reserve fund has reached 50% of the registered capital of the respective company. Appropriations to the other two reserve funds are at the respective companies’ discretion. The Group did not make any appropriations to its any reserve fund for the years ended December 31, 2020 as all subsidiaries were in accumulated loss position. The Group have made RMB9,769 and RMB8,696 appropriations to its statutory reserve fund for the years ended December 31, 2021 and 2022. |
Comprehensive income/(loss) | (af) Comprehensive income/(loss) Comprehensive income/(loss) consists of two components, net income/(loss) and other comprehensive income/(loss). Other comprehensive income/(loss) refers to gains and losses that are recorded as an element of shareholders’ equity but are excluded from net income. The Group’s other comprehensive income/(loss) consists of foreign currency translation adjustment from its subsidiaries not using the RMB as their functional currency. |
Segment reporting | (ag) Segment reporting Operating segments are defined as components of an enterprise engaging in business activities for which separate financial information is available that is regularly evaluated by the Group’s chief operating decision makers (“CODM”). Based on the criteria established by ASC 280 “Segment Reporting”, the Group’s CODM has been identified as the Chief Executive Officer. The operating segments are based on this organizational structure and information reviewed by the Group’s CODM to evaluate the operating segment results. The Group only had one operating and reportable segment The Group’s long-lived assets are substantially all located in the PRC and substantially all the Group’s revenues are derived from within the PRC, therefore, no geographical segments are presented. |
Recently issued accounting pronouncements | (ah) Recently issued accounting pronouncements The accounting standards that the Group adopted beginning January 1, 2022 did not have a significant impact on the Group’s consolidated financial statements. |
Operations and principal acti_2
Operations and principal activities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Operations and principal activities | |
Schedule of major subsidiaries, consolidated VIE and the subsidiaries of VIE | As of December 31, 2022, the Company’s major subsidiaries, consolidated VIEs and VIEs’ subsidiaries are as follows: Percentage of Place and year of direct or indirect incorporation or economic year of acquisition ownership Principal activities Subsidiaries So-Young Hong Kong Limited (“So-Young HK”) Hong Kong, 2014 100 % Investment holding So-Young High Tech Korea Co., Ltd. Korea, 2014 100 % Technology advisory services Beijing So-Young Wanwei Technology Consulting Co., Ltd. (“So-Young Wanwei”) the PRC, 2014 100 % Management consulting services So-Young (China) Network Technology Co., Ltd. (“So-Young China”) the PRC, 2018 100 % Management consulting services Wuhan Zeqi Technology Co., Ltd. (“Wuhan Zeqi”) the PRC, 2021 100 % Investment holding Wuhan Miracle Laser Systems, Inc. (“Wuhan Miracle”) the PRC, 2021 87.60 % Production, sales and agency of equipment Wuhan Haoweilai Technology Co., Ltd. (“Wuhan Haoweilai”) the PRC, 2021 87.60 % Production, sales and agency of equipment Shanghai Jiading Tonghua Micro Finance Co., Ltd. (“Tonghua Micro Finance”) the PRC, 2021 100 % Micro finance services VIEs Beijing So-Young Technology Co., Ltd. (“Beijing So-Young”) the PRC, 2013 100 % Internet information and technology advisory services Beijing Chiyan Medical Beauty Consulting Co., Ltd. (“Chiyan Beijing”) the PRC, 2019 100 % Internet information and technology advisory services VIE’s Subsidiaries Beijing So-Young Souyang Investment and Management Co., Ltd. the PRC, 2016 100 % Management consulting services Beijing Meifenbao Technology Co., Ltd. the PRC, 2016 100 % Technology advisory services Beijing So-Young Qingyang Medical Instrument Co., Ltd. the PRC, 2017 100 % Sales of medical equipment Beijing Shengshi Meiyan Culture Co., Ltd. the PRC, 2018 100 % Internet culture services Jinbaoxin Shenzhen Insurance Brokers Co., Ltd. (“Jinbaoxin”) the PRC, 2020 100 % Technology advisory services Shanghai Leya Health Technology Co., Ltd. (“Leya”) the PRC, 2020 63.37 % Technology advisory services Hainan Yixian Daka Technology Co., Ltd. (“Yixian Daka”) the PRC, 2021 100 % Technology advisory services Hainan So-Young Medical Technology Co., Ltd the PRC, 2021 100 % Sales and agency of equipment |
Schedule of consolidated financial information of the VIE and its subsidiaries and included in the consolidated financial statements of the Group | As of December 31, 2021 2022 RMB RMB Assets Current assets: Cash and cash equivalents 255,655 170,263 Restricted cash and term deposits 15,119 14,461 Trade receivables 33,817 20,468 Inventories, net 51 9,738 Receivables from online payment platforms 13,476 11,378 Amounts due from Group companies 116,817 125,165 Amounts due from related parties 14,038 33,297 Prepayment and other current assets 75,772 36,126 Total current assets 524,745 420,896 Non-current assets: Investment in subsidiaries 35,082 34,691 Long-term investments 152,082 134,959 Intangible assets 35,877 31,671 Goodwill 684 684 Property and equipment, net 23,060 24,407 Deferred tax assets 32,554 26,083 Operating lease right-of-use assets 57,512 35,189 Other non-current assets 9,486 12,777 Total non-current assets 346,337 300,461 Total assets 871,082 721,357 Liabilities Current liabilities: Taxes payable 35,821 49,301 Contract liabilities 99,427 76,242 Salary and welfare payables 47,702 31,928 Amounts due to Group companies 339,951 244,404 Amounts due to related parties 681 5,895 Accrued expenses and other current liabilities 194,791 186,898 Operating lease liabilities-current 28,269 30,971 Total current liabilities 746,642 625,639 Non-current liabilities: Operating lease liabilities-non current 39,390 11,507 Deferred tax liabilities 7,431 6,373 Total non-current liabilities 46,821 17,880 Total liabilities 793,463 643,519 For the Year Ended December 31, 2020 2021 2022 RMB RMB RMB Third-party revenues 1,294,888 1,573,161 992,705 Inter-company revenues — 358 12,203 Total revenues 1,294,888 1,573,519 1,004,908 Third-party costs (182,736) (221,286) (236,094) Inter-company costs (365,678) (607,016) (253,929) Total costs (548,414) (828,302) (490,023) Total operating expenses (762,995) (822,210) (533,684) Income /(loss) from non-operations 4,281 (7,557) (7,288) Loss before income tax expense (12,240) (84,550) (26,087) Income tax (expense)/benefits (11,433) (23,524) 1,969 Net loss (23,673) (108,074) (24,118) Net loss attributable to non-controlling interests 930 28,533 2,328 Net loss attributable to So-Young International Inc. (22,743) (79,541) (21,790) For the Year Ended December 31, 2020 2021 2022 RMB RMB RMB Net cash used in Group companies (148,574) (846,063) (302,028) Others operating activities 428,307 538,711 278,354 Net cash provided by/(used in) operating activities 279,733 (307,352) (23,674) Purchase of short-term investments (354,235) (40,000) (40,500) Proceeds from maturities of short-term investments 403,000 110,000 36,000 Acquisitions of subsidiaries, net of cash acquired — (902) — Loans to Group companies — (164,000) (37,000) Repayments from Group companies — 82,006 — Other investing activities (196,768) (26,244) (33,444) Net cash used in investing activities (148,003) (39,140) (74,944) Borrowings under loan from Group companies — 289,903 63,548 Repayments to borrowings under loan from Group companies — (68,677) (56,252) Other financing activities (6,500) — 661 Net cash (used in)/provided by financing activities (6,500) 221,226 7,957 Net increase/(decrease) in cash, cash equivalents and restricted cash 125,230 (125,266) (90,661) |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Summary of Significant Accounting Policies | |
Schedule of estimated useful lives of intangible assets | Developed technology 7-10 years License and in-process research and development intangible assets 10 years Software, trade names and others 3-10 years Customer relationship 8 years Supplier relationship 3 years |
Schedule of estimated useful lives | Computers, electrical equipment and production machinery 1-5 years Office equipment, furniture and others 1-10 years Building 20 years Leasehold improvements shorter of remaining lease period or estimated useful life |
Summary of movements of the allowance for doubtful accounts | For the Year Ended December 31, 2020 2021 2022 RMB RMB RMB Beginning balance 784 7,089 29,210 Allowance arisen from business combination — 6,623 — Additional allowance for credit losses, net of recoveries 6,305 15,498 13,224 Ending balance 7,089 29,210 42,434 |
Prepayment and Other Current _2
Prepayment and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Prepayment and Other Current Assets | |
Schedule of prepayment and other current assets | As of December 31, 2021 2022 RMB RMB Prepayments for services 31,988 25,711 Prepaid rental and other deposits 18,241 6,738 Prepayments to inventory suppliers 15,389 5,945 Loan receivables, net 15,074 65,937 Receivable from other online retail platforms 6,627 144 Receivable related to exercise of share options 310 110 Staff advances 432 185 Deductible VAT 422 5,362 Interest receivable 284 14,814 Others 3,075 1,943 Total 91,842 126,889 |
Inventories, Net (Tables)
Inventories, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventories, Net | |
Summary of Inventories, net | As of December 31, 2021 2022 RMB RMB Finished products 69,332 81,190 Raw materials and semi-finished products 41,937 57,066 Inventories 111,269 138,256 Inventory provision (19,457) (17,776) Inventories, net 91,812 120,480 |
Business Combination (Tables)
Business Combination (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Business combination | |
Summary of Pro forma information of the acquisition | For the Year Ended December 31, 2020 2021 RMB RMB Pro forma Revenue 1,474,996 1,821,657 Pro forma net income/(loss) 18,481 (39,955) |
Leya | |
Business combination | |
Summary of estimated aggregate fair values of assets acquired and liabilities assumed as of the acquisition date | RMB Useful lives (Years) Identifiable intangible assets acquired: Customer relationship 18,000 8 Developed technology 2,500 7 Cash and cash equivalents 887 Other assets 1,176 Goodwill 48,500 Other liabilities (5,131) Mezzanine equity (24,135) Total consideration 41,797 |
Wuhan Miracle | |
Business combination | |
Summary of estimated aggregate fair values of assets acquired and liabilities assumed as of the acquisition date | RMB Useful lives (Years) Identifiable intangible assets acquired: Developed technology 70,000 10 Supplier relationship 17,000 3 In-process research and development intangible assets 27,000 10 Cash and cash equivalents 86,467 Short-term investment and term deposits 50,000 Trade receivables 25,244 Inventories, net 99,681 Other current assets 6,401 Property and equipment, net 104,878 20 Other non-current assets 8,278 Contract liabilities (32,006) Accrued liabilities and other liabilities (38,245) Deferred tax liabilities (28,872) Goodwill 540,009 Non-controlling interests (76,905) Total consideration 858,930 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill | |
Schedule of goodwill | Wuhan So-Young Miracle Total RMB RMB RMB Balance as of December 31, 2020 48,500 — 48,500 Increase in goodwill related to acquisition 684 540,009 540,693 Impairment of goodwill (i) (48,500) — (48,500) Balance as of December 31, 2021 684 540,009 540,693 Increase in goodwill related to acquisition — — — Impairment of goodwill — — — Balance as of December 31, 2022 684 540,009 540,693 (i) In the annual goodwill impairment assessment, the Group concluded that the carrying amounts of Leya reporting unit exceeded its respective fair value and fully impaired goodwill of RMB 48,500 related to Leya reporting unit for the year ended December 31, 2021. |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investments | |
Schedule of long-term investments | Equity investments without readily determinable Equity method fair values investments Total RMB RMB RMB Balance as of January 1, 2021 156,904 9,196 166,100 Additions 93,350 12,596 105,946 Share of losses of equity method investees — (1,522) (1,522) Impairment (17,850) — (17,850) Foreign exchange adjustment (174) — (174) Balance as of December 31, 2021 232,230 20,270 252,500 Share of losses of equity method investees — (17,124) (17,124) Impairment (8,103) — (8,103) Foreign exchange adjustment 686 — 686 Balance as of December 31, 2022 224,813 3,146 227,959 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property and Equipment, Net | |
Schedule of property and equipment, net | As of December 31, 2021 2022 RMB RMB Building 99,166 99,166 Leasehold improvements 32,723 32,685 Office equipment, furniture and others 12,201 25,255 Production machinery 3,680 4,744 Computers and electrical equipment 8,370 7,652 Total 156,140 169,502 Accumulated depreciation (30,875) (51,279) Impairment of property and equipment (689) (2,039) Net book value 124,576 116,184 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Intangible Assets | |
Schedule of Intangible Assets and Related Accumulated Amortization | Intangible assets and its related accumulated amortization as of December 31, 2021 and 2022 are as follows: As of December 31, 2021 Gross Net carrying Accumulated Impairment Carrying value amortization amount Amount RMB RMB RMB RMB License (i) 93,952 (9,411) — 84,541 Developed technology (ii) 72,500 (3,575) (2,071) 66,854 In-process research and development intangible assets (ii) 27,000 (1,191) — 25,809 Customer relationship (ii) 18,000 (2,692) (15,308) — Supplier relationship (ii) 17,000 (2,500) — 14,500 Software 2,760 (1,073) — 1,687 Trade names 716 (266) — 450 Others 210 (96) — 114 Total 232,138 (20,804) (17,379) 193,955 As of December 31, 2022 Gross Net carrying Accumulated Impairment Carrying value amortization amount Amount RMB RMB RMB RMB License (i) 93,952 (18,806) — 75,146 Developed technology (ii) 72,500 (10,593) (2,071) 59,836 In-process research and development intangible assets (ii) 27,000 (3,885) — 23,115 Customer relationship (ii) 18,000 (2,692) (15,308) — Supplier relationship (ii) 17,000 (8,154) — 8,846 Software 3,223 (1,644) — 1,579 Trade names 779 (341) — 438 Others 447 (127) — 320 Total 232,901 (46,242) (17,379) 169,280 (i) Micro-finance license was derived from the acquisition of Tonghua Micro Finance. In October 2021, the Company completed the acquisition of Tonghua Micro Finance. The transaction was accounted for as an asset acquisition as the acquiree company did not meet the criteria of a business and substantially all the fair value of the assets acquired were concentrated in a single asset. (ii) |
Taxation (Tables)
Taxation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Taxation | |
Schedule of composition of income tax (benefits)/expenses | For the Year Ended December 31, 2020 2021 2022 RMB RMB RMB Current income tax expense 16,580 19,579 3,838 Deferred tax (benefits)/expenses (21,364) 1,652 (24,803) Income tax (benefits)/expenses (4,784) 21,231 (20,965) |
Schedule of reconciliation of differences between statutory income tax rate and income tax expenses (benefits) | For the Year Ended December 31, 2020 2021 2022 RMB RMB RMB Income tax expenses at PRC statutory income tax rate-25% 34 (4,101) (21,767) Permanent differences (1) (8,629) 5,412 (3,899) Tax rate difference from tax holiday and statutory rate in other jurisdictions, tax refund and others (377) 5,701 3,413 Change in valuation allowance 4,188 14,219 1,288 Income tax (benefits)/expenses (4,784) 21,231 (20,965) (1) The permanent differences mainly consisted of additional deduction for research and development expenditures and non-deductible expenses. |
Schedule of per share effect of tax holidays | For the Year Ended December 31, 2020 2021 2022 RMB RMB RMB Net gain/(loss) per ordinary share effect-basic 0.11 (0.07) (0.21) Net gain/(loss) per ordinary share effect-diluted 0.10 (0.07) (0.21) |
Schedule of significant temporary differences of deferred tax assets | As of December 31, 2021 2022 RMB RMB Deferred tax assets Advertising and promotion expenses in excess of deduction limit 53,670 39,287 Payroll and expense accrued 4,909 3,551 Net operating tax loss carry forwards 25,200 47,288 Loss on equity investment 1,450 5,756 Impairment of long-term investments 5,463 5,493 Allowance for doubtful accounts, property and equipment and inventory 5,740 12,753 Others 1,015 1,826 Valuation allowance (49,927) (51,215) Total deferred tax assets, net 47,520 64,739 Deferred tax liabilities Assets arisen from business combination and assets acquisition 38,577 30,993 Total deferred tax liabilities 38,577 30,993 |
Schedule of movement of valuation allowance for deferred tax assets | For the year ended December 31, 2020 2021 2022 RMB RMB RMB Balance as of January 1, (28,043) (35,708) (49,927) Change of valuation allowance (7,665) (14,219) (1,288) Balance as of December 31, (35,708) (49,927) (51,215) |
Schedule of net operating tax loss carry forwards, if not utilized, would expire | RMB Loss expiring in 2023 10,863 Loss expiring in 2024 12,067 Loss expiring in 2025 45,276 Loss expiring in 2026 30,096 Loss expiring in 2027 and thereafter 179,210 Total 277,512 |
Taxes Payable (Tables)
Taxes Payable (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Taxes Payable | |
Summary of taxes payable | As of December 31, 2021 2022 RMB RMB VAT payable 12,831 34,480 Withholding individual income taxes for employees 8,114 7,862 Enterprise income taxes payable 26,690 30,666 Others 936 1,572 Total 48,571 74,580 |
Contract Balances (Tables)
Contract Balances (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Contract Balances | |
Summary of trade receivables, contract assets, and contract liabilities with customers | As of December 31, 2020 2021 2022 RMB RMB RMB Trade receivables 52,871 54,829 36,006 Contract liabilities 135,385 139,155 110,159 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accrued Expenses and Other Current Liabilities | |
Schedule of accrued expenses and other current liabilities | As of December 31, 2021 2022 RMB RMB Payment for acquisition of Wuhan Miracle (see Note 6) 136,482 — Deposits payable to service providers and others 68,248 55,198 Accrued service expenses 61,255 46,638 Advance payment from platform user 51,104 71,514 Payable to service providers 24,860 20,290 Payments for inventories 18,840 13,202 Product warranty 2,529 2,704 Accrued litigation liabilities (see Note 19) 2,162 3,611 Others 11,361 11,432 Total 376,841 224,589 |
Schedule of standard product warranty activities | Warranty RMB Balance as of July 22, 2021 3,043 Provided during the period 861 Utilized during the period (1,375) Balance as of December 31, 2021 2,529 Provided during the period 3,288 Utilized during the period (3,113) Balance as of December 31, 2022 2,704 |
Lease (Tables)
Lease (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Lease | |
Schedule of cash flow information related to operating leases | For the year ended December 31, 2021 2022 RMB RMB Cash payments for operating leases 44,072 46,169 ROU assets obtained in exchange for operating lease liabilities 9,137 5,979 |
Schedule of future lease payment under operating leases | Operating leases RMB Year ending December 31, 2023 53,268 2024 18,967 2025 1,652 2026 803 2027 and thereafter — Total future lease payments 74,690 Less: Imputed interest (3,433) Total lease liability balance 71,257 |
Share-based Compensation (Table
Share-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-based Compensation | |
Schedule of fair value assumption of each option granted | For the year ended December 31, 2020 2021 2022 Expected volatility 47.00%-55.00% 46.48%-52.64% 47.30%-50.09% Expected dividends yield 0% 0% 0% Expected multiples 2.2-2.8 2.2-2.8 2.2-2.8 Risk-free interest rate 0.62%-1.77% 1.03%-1.61% 1.75%-4.07% Expected term (in years) 10 10 10 Fair value of underlying ordinary share (USD) 12.98-16.13 4.15-12.90 0.68-3.64 |
Schedule of company's options activities | The following table presents a summary of the Company’s options activities for the years ended December 31, 2020, 2021 and 2022: Weighted average Number of Weighted average remaining Aggregate options exercise price contractual life Intrinsic Value (in thousands) US$ Years US$ (in thousands) Outstanding as of January 1, 2020 3,496 0.1 8.55 55,188 Granted 2,665 0.1 Exercised (1,090) 0.1 15,148 Forfeited (545) 0.1 Outstanding as of December 31, 2020 4,526 0.1 8.60 66,255 Granted 1,048 0.1 Exercised (1,774) 0.1 16,088 Forfeited (1,288) 0.1 Outstanding as of December 31, 2021 2,512 0.1 8.47 10,167 Granted 1,147 0.1 Exercised (1,580) 0.1 2,193 Forfeited (340) 0.1 Outstanding as of December 31, 2022 1,739 0.1 8.26 2,742 Vested and exercisable as of December 31, 2020 557 0.1 7.44 8,156 Vested and exercisable as of December 31, 2021 1,116 0.1 8.84 4,515 Vested and exercisable as of December 31, 2022 846 0.1 7.56 1,334 |
Net Earnings(Loss) per Share (T
Net Earnings(Loss) per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Net (Loss)/Earnings per Share | |
Schedule of basic and diluted loss per ordinary share | For the Year ended December 31, 2020 2021 2022 RMB RMB RMB Numerator: Net income/(loss) 4,877 (37,636) (66,107) Net loss attributable to non-controlling interests 930 29,265 553 Net earnings/(loss) attributable to So-Young International Inc. 5,807 (8,371) (65,554) Denominator: Weighted average number of ordinary shares outstanding, basic 81,534,991 81,680,504 82,665,269 Weighted average number of ordinary shares outstanding, diluted 83,781,406 81,680,504 82,665,269 Net earnings/(loss) per share, basic 0.07 (0.10) (0.79) Net earnings/(loss) per share, diluted 0.07 (0.10) (0.79) Net earnings/(loss) per ADS, basic 0.05 (0.08) (0.61) Net earnings/(loss) per ADS, diluted 0.05 (0.08) (0.61) |
Commitment and Contingencies (T
Commitment and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Loss Contingencies [Line Items] | |
Schedule of future lease payment under operating leases | Operating leases RMB Year ending December 31, 2023 53,268 2024 18,967 2025 1,652 2026 803 2027 and thereafter — Total future lease payments 74,690 Less: Imputed interest (3,433) Total lease liability balance 71,257 |
Bandwidth And Property Management Fees | Leases Office Space | |
Loss Contingencies [Line Items] | |
Schedule of future lease payment under operating leases | As of December 31, 2022 RMB 2023 5,949 2024 2,011 2025 90 2026 90 2027 and thereafter — Total 8,140 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Measurement | |
Summarizes, for assets and liabilities measured at fair value on a recurring basis | The following table summarizes, for assets and liabilities measured at fair value on a recurring basis, the respective fair value and the classification by level of input within the fair value hierarchy as of December 31, 2021 and 2022: As of December 31, Financial instruments Fair value hierarchy 2021 2022 RMB RMB Short-term investments (Note 8) Level 2 408,946 — Contingent consideration (Note 6) Level 3 (88,000) — |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions | |
Schedule of material related party transactions | (i) Provision of service For the Year Ended December 31, 2020 2021 2022 RMB RMB RMB Yicai 528 — — Chengdu Zhisu 4,027 2,934 1,225 Xingying 1,127 1,802 836 21. Related Party Transactions (Continued) (a) The Group entered into the following transactions with related parties (Continued) (ii) Loan advanced to the related parties For the Year Ended December 31, 2020 2021 2022 RMB RMB RMB Sharing New Medical 16,889 13,720 18,130 Yicai — 2,000 — (iii) Repayment of the loan advanced to the related parties For the Year Ended December 31, 2020 2021 2022 RMB RMB RMB Chengdu Zhisu 5,000 — — Sharing New Medical 9,718 7,170 — (iv) Interest income from related parties For the Year Ended December 31, 2020 2021 2022 RMB RMB RMB Sharing New Medical 234 103 1,148 (v) Expense occurred to the related parties For the Year Ended December 31, 2020 2021 2022 RMB RMB RMB Beijing Mevos 1,472 976 1,637 Zhang Haipeng (1) 613 — — Future Light — 606 1,348 Beijing Souyang — — 582 Yinchuxing — — 407 Chutian — — 113 (vi) Provision of rental service For the Year Ended December 31, 2020 2021 2022 RMB RMB RMB Yicai 340 — — |
Schedule of amount due from/ to related parties | (b) Amount due from/ to related parties (i) Amount due from related parties As of December 31, 2021 2022 RMB RMB Chengdu Zhisu 241 323 Sharing New Medical (2) 13,797 32,974 Future light — 35 Yinchuxing — 50 (ii) Amount due to related parties As of December 31, 2021 2022 RMB RMB Chengdu Zhisu — 25 Xingying 33 128 Beijing Mevos 642 — Lv Li (3) — 5,700 Beijing Souyang — 42 (1) The Company entered into an agreement with Zhang Haipeng with a cash consideration of RMB 1,300 to engage him as spokesman for brand promotion from September 2019 to April 2020. The Company has paid in advance fully for the service and recognized advertising expense of RMB 613 for the year ended December 31, 2019. The remaining amount was recognized as expense in 2020. (2) The balance as of December 31, 2021 and 2022 represents a loan provided to Sharing New Medical with a term of one year and an annual interest rate of 4.35% . (3) The Company entered into an agreement with Lv Li with a cash consideration of RMB 5,700 to dispose the 63.37% equity interest of Leya. See Note 27 Subsequent Events for additional information. |
Segment Information - (Tables)
Segment Information - (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Information | |
Summary of the Group's operating segment results | The following tables present a summary of the Group’s operating segment results for the years ended December 31, 2020, 2021 and 2022, The Group does not allocate any assets to its business segments as the Group’s CODM does not use this information to measure the performance of the operating segments: For the Year Ended December 31, 2020 2021 2022 RMB RMB RMB Revenues: So-Young 1,294,988 1,580,507 1,017,170 Wuhan Miracle — 111,956 242,339 Total 1,294,988 1,692,463 1,259,509 Elimination — — (1,635) Consolidated total revenues 1,294,988 1,692,463 1,257,874 Cost of revenues: So-Young (212,206) (249,767) (259,940) Wuhan Miracle — (78,142) (134,369) Total (212,206) (327,909) (394,309) Elimination — 20 1,017 Consolidated total cost of revenues (212,206) (327,889) (393,292) Gross profit: So-Young 1,082,782 1,330,740 757,230 Wuhan Miracle — 33,814 107,970 Total 1,082,782 1,364,554 865,200 Elimination — 20 (618) Consolidated gross profit 1,082,782 1,364,574 864,582 |
Summary of net revenues by type of good or service | The following table set forth the breakdown of net revenues by type of good or service for the years ended December 31, 2020, 2021 and 2022: For the Year Ended December 31, 2020 2021 2022 RMB RMB RMB Information services and others 962,089 1,304,455 888,475 Reservation services 332,899 276,052 128,668 Sales of equipment and maintenance services — 111,956 240,731 Total revenues 1,294,988 1,692,463 1,257,874 |
Summary of depreciation expenses of property and equipment in cost of revenues by segment | The following table presents the depreciation expenses of property and equipment in cost of revenues by segment for the years ended December 31, 2020, 2021 and 2022: For the Year Ended December 31, 2020 2021 2022 RMB RMB RMB So-Young 1,996 2,559 3,676 Wuhan Miracle — 550 1,855 Total depreciation expenses of property and equipment 1,996 3,109 5,531 |
Summary of amortization expenses of intangible assets in cost of revenues by segment | The following table presents the amortization expenses of intangible assets in cost of revenues by segment for the years ended December 31, 2020, 2021 and 2022: For the Year Ended December 31, 2020 2021 2022 RMB RMB RMB So-Young 4,723 7,907 9,649 Wuhan Miracle — 5,647 12,667 Total amortization expense of Intangible assets 4,723 13,554 22,316 |
Additional Information-Parent_2
Additional Information-Parent Company Only Condensed Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Additional Information-Parent Company Only Condensed Financial Information | |
Schedule of Condensed balance sheets of So-Young International Inc. | As of December 31, 2021 2022 2022 RMB RMB US$ Note 2(e) Assets Current assets: Cash and cash equivalents 55,806 143,100 20,747 Amounts due from VIE companies 39,681 — — Amounts due from Group companies 1,457,100 1,671,880 242,400 Term deposits and short-term investments 318,881 208,938 30,293 Prepayment and other current assets 6,027 6,826 990 Total current assets 1,877,495 2,030,744 294,430 Non-current assets: Investment in subsidiaries and VIE companies 617,773 531,693 77,088 Long-term investments 7,418 — — Total non-current assets 625,191 531,693 77,088 Total assets 2,502,686 2,562,437 371,518 Liabilities Amounts due to VIE companies 35,529 39,786 5,768 Amounts due to Group companies 20,068 23,722 3,439 Accrued expenses and other current liabilities 900 1,004 148 Total liabilities 56,497 64,512 9,355 Shareholders’ deficit Treasury stock (217,712) (232,835) (33,758) Class A Ordinary shares (US$ 0.0005 par value; 750,000,000 shares authorized as of December 31, 2021 and December 31, 2022; 71,736,059 and 69,092,367 shares issued and outstanding as of December 31, 2021; 73,065,987 and 68,843,320 shares issued and outstanding as of December 31, 2022, respectively) 230 236 33 Class B Ordinary shares (US$ 0.0005 par value; 20,000,000 shares authorized as of December 31, 2021 and 2022; 12,000,000 shares issued and outstanding as of December 31, 2021 and 2022) 37 37 5 Additional paid-in capital 2,999,562 3,043,971 441,334 Statutory reserves 20,331 29,027 4,209 Accumulated deficit (272,368) (346,618) (50,255) Accumulated other comprehensive (loss)/income (83,891) 4,107 595 Total shareholders’ equity 2,446,189 2,497,925 362,163 Total liabilities and shareholders’ equity 2,502,686 2,562,437 371,518 |
Schedule of Condensed statements of comprehensive (loss)/income of So-Young International Inc. | For the Year Ended December 31, 2020 2021 2022 2022 RMB RMB RMB US$ Note 2(e) Operating expenses: General and administrative expenses (7,574) (9,556) (9,659) (1,400) Loss from operations (7,574) (9,556) (9,659) (1,400) Share of profit/(loss) of subsidiaries and VIE 763 (1,412) (55,104) (7,989) Income/(loss) from non-operations 12,618 2,597 (791) (115) Net income/(loss) 5,807 (8,371) (65,554) (9,504) Net income/(loss) 5,807 (8,371) (65,554) (9,504) Other comprehensive loss: Foreign currency translation adjustment (144,225) (31,399) 87,998 12,759 Total comprehensive (loss)/income (138,418) (39,770) 22,444 3,255 |
Schedule of Condensed statements of cash flows of So-Young International Inc. | For the Year Ended December 31, 2020 2021 2022 2022 RMB RMB RMB US$ Note 2(e) Cash flows from operating activities: Net cash provided by/(used in) operating activities 43,212 12,117 (54,390) (7,886) Cash flows from investing activities: Purchase of short-term investments (402,913) (610,841) (201,348) (29,193) Proceeds from maturities of short-term investments 808,562 549,344 318,785 46,219 Loans to Group companies (823,116) (446,270) (82,766) (12,000) Repayments from Group companies 365,401 764,712 41,383 6,000 Other investing activities with external parties (8,266) — — — Net cash (used in)/provided by investing activities (60,332) 256,945 76,054 11,026 Cash flows from financing activities: Net cash provided by/(used in) financing activities 696 (216,743) (14,247) (2,065) Effect of exchange rate changes on cash and cash equivalents (51,506) (2,813) 79,877 11,581 Net (decrease)/increase in cash and cash equivalents (67,930) 49,506 87,294 12,656 Cash and cash equivalents at beginning of year 74,230 6,300 55,806 8,091 Cash and cash equivalents at end of year 6,300 55,806 143,100 20,747 |
Operations and principal acti_3
Operations and principal activities (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Subsidiaries | So-Young Hong Kong Limited ("So-Young HK") | |
Operations and principal activities | |
Percentage of direct or indirect economic ownership | 100% |
Subsidiaries | So-Young High Tech Korea Co., Ltd. | |
Operations and principal activities | |
Percentage of direct or indirect economic ownership | 100% |
Subsidiaries | Beijing So-Young Wanwei Technology Consulting Co., Ltd. ("So-Young Wanwei") | |
Operations and principal activities | |
Percentage of direct or indirect economic ownership | 100% |
Subsidiaries | So-Young (China) Network Technology Co., Ltd. | |
Operations and principal activities | |
Percentage of direct or indirect economic ownership | 100% |
Subsidiaries | Wuhan Zeqi Technology Co., Ltd. ("Wuhan Zeqi") | |
Operations and principal activities | |
Percentage of direct or indirect economic ownership | 100% |
Subsidiaries | Wuhan Haoweilai Technology Co., Ltd. ("Wuhan Haoweilai") | |
Operations and principal activities | |
Percentage of direct or indirect economic ownership | 87.60% |
Subsidiaries | Wuhan Miracle Laser Systems, Inc. ("Wuhan Miracle") | |
Operations and principal activities | |
Percentage of direct or indirect economic ownership | 87.60% |
Subsidiaries | Shanghai Jiading Tonghua Micro Finance Co., Ltd. ("Tonghua Micro Finance") | |
Operations and principal activities | |
Percentage of direct or indirect economic ownership | 100% |
VIEs and VIEs Subsidiaries | Beijing So-Young Technology Co., Ltd. ("Beijing So-Young") | |
Operations and principal activities | |
Percentage of direct or indirect economic ownership | 100% |
VIEs and VIEs Subsidiaries | Beijing Chiyan Medical Beauty Consulting Co., Ltd. ("Chiyan Beijing") | |
Operations and principal activities | |
Percentage of direct or indirect economic ownership | 100% |
VIEs and VIEs Subsidiaries | Beijing So-Young Souyang Investment and Management Co., Ltd. | |
Operations and principal activities | |
Percentage of direct or indirect economic ownership | 100% |
VIEs and VIEs Subsidiaries | Beijing Meifenbao Technology Co., Ltd. | |
Operations and principal activities | |
Percentage of direct or indirect economic ownership | 100% |
VIEs and VIEs Subsidiaries | Beijing So-Young Qingyang Medical Instrument Co., Ltd. | |
Operations and principal activities | |
Percentage of direct or indirect economic ownership | 100% |
VIEs and VIEs Subsidiaries | Beijing Shengshi Meiyan Culture Co., Ltd. | |
Operations and principal activities | |
Percentage of direct or indirect economic ownership | 100% |
VIEs and VIEs Subsidiaries | Jinbaoxin Shenzhen Insurance Brokers Co., Ltd. ("Jinbaoxin") | |
Operations and principal activities | |
Percentage of direct or indirect economic ownership | 100% |
VIEs and VIEs Subsidiaries | Shanghai Leya Health Technology Co., Ltd. ("Leya") | |
Operations and principal activities | |
Percentage of direct or indirect economic ownership | 63.37% |
VIEs and VIEs Subsidiaries | Hainan Yixian Daka Technology Co., Ltd | |
Operations and principal activities | |
Percentage of direct or indirect economic ownership | 100% |
VIEs and VIEs Subsidiaries | Hainan So-Young Medical Technology Co., Ltd | |
Operations and principal activities | |
Percentage of direct or indirect economic ownership | 100% |
Operations and principal acti_4
Operations and principal activities - Reorganization (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||
May 31, 2019 USD ($) Vote $ / shares shares | May 31, 2019 CNY (¥) Vote shares | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2022 CNY (¥) shares | Dec. 31, 2021 $ / shares | Dec. 31, 2021 CNY (¥) shares | |
Operations and principal activities | |||||||||
Authorized shares (in shares) | 850,000,000 | 850,000,000 | 850,000,000 | ||||||
Authorized share capital | $ | $ 425 | $ 425 | |||||||
VIEs and VIEs Subsidiaries | |||||||||
Operations and principal activities | |||||||||
Banking Regulation, Total Capital, Actual | ¥ | ¥ 4,547 | ¥ 4,547 | |||||||
Service fee paid to WOFE | ¥ | ¥ 264,000 | ¥ 826,500 | ¥ 125,100 | ||||||
IPO | |||||||||
Operations and principal activities | |||||||||
Proceeds from Issuance of Common Stock | $ 187,500 | ¥ 1,267,000 | |||||||
Common Class A [member] | |||||||||
Operations and principal activities | |||||||||
Authorized shares (in shares) | 750,000,000 | 750,000,000 | 750,000,000 | 750,000,000 | |||||
Par value (in dollars per share) | $ / shares | $ 0.0005 | $ 0.0005 | $ 0.0005 | ||||||
Stock Issued During Period, Shares, New Issues | 11,500,000 | 11,500,000 | |||||||
Number of shares redesignated | 66,613,419 | 66,613,419 | |||||||
Number of votes per share | Vote | 1 | 1 | |||||||
Common Class A [member] | IPO | |||||||||
Operations and principal activities | |||||||||
Stock Issued During Period, Shares, New Issues | 11,500,000 | 11,500,000 | |||||||
Common Class B [Member] | |||||||||
Operations and principal activities | |||||||||
Authorized shares (in shares) | 20,000,000 | 20,000,000 | 20,000,000 | 20,000,000 | |||||
Par value (in dollars per share) | $ / shares | $ 0.0005 | $ 0.0005 | $ 0.0005 | ||||||
Number of shares redesignated | 12,000,000 | 12,000,000 | |||||||
Number of votes per share | Vote | 30 | 30 | |||||||
Ordinary shares, undesignated | |||||||||
Operations and principal activities | |||||||||
Authorized shares (in shares) | 80,000,000 | 80,000,000 | 80,000,000 | ||||||
Par value (in dollars per share) | $ / shares | $ 0.0005 | $ 0.0005 | |||||||
ADS | IPO | |||||||||
Operations and principal activities | |||||||||
Stock Issued During Period, Shares, New Issues | 14,950,000 | 14,950,000 | |||||||
Share Price | $ / shares | $ 13.80 |
Operations and principal acti_5
Operations and principal activities - Agreements (Details) - VIEs and VIEs Subsidiaries - CNY (¥) ¥ / shares in Units, ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operations and principal activities | |||
Proxy equity interests (as a percent) | 100% | ||
Exclusive Call Option Agreement | |||
Operations and principal activities | |||
Purchase price | ¥ 0.01 | ||
Equity Interest Pledge Agreement | |||
Operations and principal activities | |||
Percentage of equity interest pledged from the shareholders | 100% | ||
Exclusive business cooperation agreements | |||
Operations and principal activities | |||
Service fee | ¥ 251,739 | ¥ 584,914 | ¥ 339,623 |
Operations and principal acti_6
Operations and principal activities - Consolidated financial statements (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) |
Current assets: | ||||
Cash and cash equivalents | ¥ 694,420 | $ 100,681 | ¥ 1,331,968 | ¥ 1,127,055 |
Restricted cash and term deposits | 14,908 | 2,161 | 15,119 | |
Trade receivables | 36,006 | 5,220 | 54,829 | 52,871 |
Inventories, net | 120,480 | 17,468 | 91,812 | |
Receivables from online payment platforms | 14,787 | 2,144 | 18,864 | |
Amounts due from related parties | 33,382 | 4,840 | 14,038 | |
Prepayment and other current assets | 126,889 | 18,397 | 91,842 | |
Total current assets | 1,916,827 | 277,913 | 2,027,418 | |
Non-current assets: | ||||
Long-term investments | 227,959 | 33,051 | 252,500 | 166,100 |
Intangible assets | 169,280 | 24,543 | 193,955 | |
Goodwill | 540,693 | 78,393 | 540,693 | 48,500 |
Property and equipment, net | 116,184 | 16,845 | 124,576 | |
Deferred tax assets | 64,739 | 9,386 | 47,520 | |
Operating lease right-of-use assets | 62,898 | 9,119 | 95,609 | |
Other non-current assets | 99,293 | 14,396 | 48,097 | |
Total non-current assets | 1,281,046 | 185,733 | 1,302,950 | |
Total assets | 3,197,873 | 463,646 | 3,330,368 | |
Current liabilities: | ||||
Taxes payable | 74,580 | 10,813 | 48,571 | |
Contract liabilities | 110,159 | 15,972 | 139,155 | ¥ 135,385 |
Salary and welfare payables | 72,532 | 10,516 | 103,624 | |
Amounts due to related parties | 5,895 | 855 | 681 | |
Accrued expenses and other current liabilities | 224,589 | 32,561 | 376,841 | |
Operating lease liabilities-current | 50,285 | 7,291 | 43,529 | |
Total current liabilities | 538,040 | 78,008 | 712,401 | |
Non-current liabilities: | ||||
Operating lease liabilities-non current | 20,972 | 3,041 | 62,356 | |
Deferred tax liabilities | 30,993 | 4,494 | 38,577 | |
Total non-current liabilities | 51,965 | 7,535 | 100,933 | |
Total liabilities | 590,005 | $ 85,543 | 813,334 | |
VIEs and VIEs Subsidiaries | ||||
Current assets: | ||||
Cash and cash equivalents | 170,263 | 255,655 | ||
Restricted cash and term deposits | 14,461 | 15,119 | ||
Trade receivables | 20,468 | 33,817 | ||
Inventories, net | 9,738 | 51 | ||
Receivables from online payment platforms | 11,378 | 13,476 | ||
Amounts due from Group companies | 125,165 | 116,817 | ||
Amounts due from related parties | 33,297 | 14,038 | ||
Prepayment and other current assets | 36,126 | 75,772 | ||
Total current assets | 420,896 | 524,745 | ||
Non-current assets: | ||||
Investment in subsidiaries | 34,691 | 35,082 | ||
Long-term investments | 134,959 | 152,082 | ||
Intangible assets | 31,671 | 35,877 | ||
Goodwill | 684 | 684 | ||
Property and equipment, net | 24,407 | 23,060 | ||
Deferred tax assets | 26,083 | 32,554 | ||
Operating lease right-of-use assets | 35,189 | 57,512 | ||
Other non-current assets | 12,777 | 9,486 | ||
Total non-current assets | 300,461 | 346,337 | ||
Total assets | 721,357 | 871,082 | ||
Current liabilities: | ||||
Taxes payable | 49,301 | 35,821 | ||
Contract liabilities | 76,242 | 99,427 | ||
Salary and welfare payables | 31,928 | 47,702 | ||
Amounts due to Group companies | 244,404 | 339,951 | ||
Amounts due to related parties | 5,895 | 681 | ||
Accrued expenses and other current liabilities | 186,898 | 194,791 | ||
Operating lease liabilities-current | 30,971 | 28,269 | ||
Total current liabilities | 625,639 | 746,642 | ||
Non-current liabilities: | ||||
Operating lease liabilities-non current | 11,507 | 39,390 | ||
Deferred tax liabilities | 6,373 | 7,431 | ||
Total non-current liabilities | 17,880 | 46,821 | ||
Total liabilities | ¥ 643,519 | ¥ 793,463 |
Operations and principal acti_7
Operations and principal activities - Consolidated financial statements (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Operations and principal activities | ||||
Total revenues | ¥ 1,257,874 | $ 182,375 | ¥ 1,692,463 | ¥ 1,294,988 |
Total costs | (393,292) | (57,022) | (327,889) | (212,206) |
Total operating expenses | 967,387 | 140,259 | 1,397,144 | 1,139,476 |
Income /(loss) from non-operations | 8,246 | 1,196 | 12,044 | 8,916 |
Income/(loss) before income tax expense | (87,072) | (12,624) | (16,405) | 93 |
Income tax (expense)/benefits | (20,965) | (3,040) | 21,231 | (4,784) |
Net loss | (66,107) | (9,584) | (37,636) | 4,877 |
Net loss attributable to noncontrolling interests | (553) | (80) | (29,265) | (930) |
Net income (loss) | (65,554) | $ (9,504) | (8,371) | 5,807 |
VIEs and VIEs Subsidiaries | ||||
Operations and principal activities | ||||
Total revenues | 1,004,908 | 1,573,519 | 1,294,888 | |
Total costs | (490,023) | (828,302) | (548,414) | |
Total operating expenses | (533,684) | (822,210) | (762,995) | |
Income /(loss) from non-operations | (7,288) | (7,557) | 4,281 | |
Income/(loss) before income tax expense | (26,087) | (84,550) | (12,240) | |
Income tax (expense)/benefits | 1,969 | (23,524) | (11,433) | |
Net loss | (24,118) | (108,074) | (23,673) | |
Net loss attributable to noncontrolling interests | 2,328 | 28,533 | 930 | |
Net income (loss) | (21,790) | (79,541) | (22,743) | |
VIEs and VIEs Subsidiaries | Third-party | ||||
Operations and principal activities | ||||
Total revenues | 992,705 | 1,573,161 | 1,294,888 | |
Total costs | (236,094) | (221,286) | (182,736) | |
VIEs and VIEs Subsidiaries | Inter-company | ||||
Operations and principal activities | ||||
Total revenues | 12,203 | 358 | ||
Total costs | ¥ (253,929) | ¥ (607,016) | ¥ (365,678) |
Operations and principal acti_8
Operations and principal activities - Consolidated financial statements (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Operations and principal activities | ||||
Net cash provided by/(used in) operating activities | ¥ (112,873) | $ (16,365) | ¥ 84,287 | ¥ 179,180 |
Acquisitions of subsidiaries, net of cash acquired | 97,492 | 14,135 | 636,872 | 40,911 |
Net cash used in investing activities | (572,212) | (82,963) | 339,822 | 123,845 |
Net cash provided by/(used in) financing activities | (13,586) | (1,970) | (216,743) | (5,804) |
Net increase/(decrease) in cash, cash equivalents and restricted cash | (642,809) | $ (93,199) | 198,124 | 244,500 |
VIEs and VIEs Subsidiaries | ||||
Operations and principal activities | ||||
Net cash used in Group companies | (302,028) | (846,063) | (148,574) | |
Others operating activities | 278,354 | 538,711 | 428,307 | |
Net cash provided by/(used in) operating activities | (23,674) | (307,352) | 279,733 | |
Purchase of short-term investments | (40,500) | (40,000) | (354,235) | |
Proceeds from maturities of short-term investments | 36,000 | 110,000 | 403,000 | |
Acquisitions of subsidiaries, net of cash acquired | (902) | |||
Loans to Group companies | (37,000) | (164,000) | ||
Repayments from Group companies | 82,006 | |||
Other investing activities | (33,444) | (26,244) | (196,768) | |
Net cash used in investing activities | (74,944) | (39,140) | (148,003) | |
Borrowings under loan from Group companies | 63,548 | 289,903 | ||
Repayments to borrowings under loan from Group companies | (56,252) | (68,677) | ||
Other financing activities | 661 | (6,500) | ||
Net cash provided by/(used in) financing activities | 7,957 | 221,226 | (6,500) | |
Net increase/(decrease) in cash, cash equivalents and restricted cash | ¥ (90,661) | ¥ (125,266) | ¥ 125,230 |
Operations and principal acti_9
Operations and principal activities - Liquidity (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2022 USD ($) | |
Operations and principal activities | |||||
Net cash provided by/(used in) operating activities | ¥ (112,873) | $ (16,365) | ¥ 84,287 | ¥ 179,180 | |
Accumulated deficit | ¥ (346,618) | ¥ (272,368) | $ (50,255) |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) $ / ¥ | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Summary of Significant Accounting Policies | ||||
Convenience translation rate | $ / ¥ | 6.8972 | |||
Term deposits | ¥ | ¥ 875,955 | ¥ 0 | ||
Impairment of long-term investment | ¥ 7,945 | $ 1,152 | ¥ 17,850 | ¥ 0 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Movements Allowance for Doubtful Accounts (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Impact of adoption | ¥ 784 | |||
Beginning balance | ¥ 29,210 | ¥ 7,089 | 784 | |
Allowance arisen from business combination | 6,623 | |||
Additional allowance for credit losses, net of recoveries | 13,224 | $ 1,917 | 15,498 | 6,305 |
Ending balance | ¥ 42,434 | ¥ 29,210 | ¥ 7,089 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Intangible assets (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Summary of Significant Accounting Policies | |||
Impairment of intangible assets | ¥ 0 | ¥ 17,379 | ¥ 0 |
License and in-process research and development intangible assets | |||
Summary of Significant Accounting Policies | |||
Estimated useful lives of intangible assets | 10 years | ||
Customer Relationship [Member] | |||
Summary of Significant Accounting Policies | |||
Estimated useful lives of intangible assets | 8 years | ||
Supplier relationship | |||
Summary of Significant Accounting Policies | |||
Estimated useful lives of intangible assets | 3 years | ||
Minimum | Developed technology | |||
Summary of Significant Accounting Policies | |||
Estimated useful lives of intangible assets | 7 years | ||
Minimum | Software, trade names and others | |||
Summary of Significant Accounting Policies | |||
Estimated useful lives of intangible assets | 3 years | ||
Maximum | Developed technology | |||
Summary of Significant Accounting Policies | |||
Estimated useful lives of intangible assets | 10 years | ||
Maximum | Software, trade names and others | |||
Summary of Significant Accounting Policies | |||
Estimated useful lives of intangible assets | 10 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Estimated useful lives (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Computers, electrical equipment and production machinery | Minimum | |
Summary of Significant Accounting Policies | |
Estimated useful lives | 1 year |
Computers, electrical equipment and production machinery | Maximum | |
Summary of Significant Accounting Policies | |
Estimated useful lives | 5 years |
Office equipment, furniture and others | Minimum | |
Summary of Significant Accounting Policies | |
Estimated useful lives | 1 year |
Office equipment, furniture and others | Maximum | |
Summary of Significant Accounting Policies | |
Estimated useful lives | 10 years |
Building | |
Summary of Significant Accounting Policies | |
Estimated useful lives | 20 years |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Barter Transaction (Details) - Barter Transactions - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Summary of Significant Accounting Policies | |||
Revenues | ¥ 551 | ¥ 3,411 | ¥ 8,770 |
Expenses | ¥ 1,269 | ¥ 4,516 | ¥ 11,778 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Additional Information (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||||
Dec. 31, 2022 CNY (¥) segment shares | Dec. 31, 2022 USD ($) segment shares | Dec. 31, 2021 CNY (¥) shares | Dec. 31, 2021 USD ($) shares | Dec. 31, 2020 CNY (¥) | Dec. 31, 2022 USD ($) | Nov. 18, 2022 USD ($) | May 07, 2021 USD ($) | |
Advertising expenses | ¥ 254,893 | ¥ 570,347 | ¥ 555,260 | |||||
Employee benefit expenses | ¥ 108,057 | 115,951 | 46,910 | |||||
Maximum percentage of the registered capital where appropriation is not required | 50% | 50% | ||||||
Minimum percentage, appropriation to the statutory surplus of the after-tax profits | 10% | 10% | ||||||
Appropriation From Profit and Loss, Statutory Reserves | ¥ 8,696 | 9,769 | ||||||
Net loss attributable to mezzanine equity holders | 553 | 29,265 | ¥ 930 | |||||
Goodwill impairment charges | 48,500 | |||||||
Shares repurchase, Authorized amount | $ | $ 15,000 | $ 70,000 | ||||||
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ||||||||
Operating lease right-of-use assets | 62,898 | 95,609 | $ 9,119 | |||||
Lease liabilities for operating leases | ¥ 71,257 | ¥ 105,885 | ||||||
Segment reporting | ||||||||
Number of operating segment | segment | 1 | 1 | ||||||
Number of reportable segment | segment | 1 | 1 | ||||||
Class A Ordinary Shares | ||||||||
Number of shares repurchased | shares | 1,578,975 | 1,578,975 | 2,643,692 | 2,643,692 | ||||
Value of shares repurchased | ¥ 15,100 | $ 2,200 | ¥ 217,700 | $ 34,000 | ||||
American Depository Shares | ||||||||
Number of shares repurchased | shares | 2,052,667 | 2,052,667 | 3,436,800 | 3,436,800 |
Concentration and Risks (Detail
Concentration and Risks (Details) | 12 Months Ended | 36 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2008 | |
Concentration and Risks | ||||
Foreign currency exchange appreciation rate risk Percentage | 2.30% | 6.50% | ||
Foreign currency exchange depreciation rate risk Percentage | 9.20% | |||
Maximum percentage of cash and cash equivalents, restricted cash and term deposits in single institution | 41% | 36% | ||
Foreign currency exchange rate risk | Minimum | ||||
Concentration and Risks | ||||
Foreign currency exchange rate risk Percentage | 20% |
Prepayment and Other Current _3
Prepayment and Other Current Assets (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Prepayment and Other Current Assets | |||
Prepayments for services | ¥ 25,711 | ¥ 31,988 | |
Prepaid rental and other deposits | 6,738 | 18,241 | |
Prepayments to inventory suppliers | 5,945 | 15,389 | |
Loan receivables, net | 65,937 | 15,074 | |
Receivable from other online retail platform | 144 | 6,627 | |
Receivable related to exercise of share options | 110 | 310 | |
Staff advances | 185 | 432 | |
Deductible VAT | 5,362 | 422 | |
Interest receivable | 14,814 | 284 | |
Others | 1,943 | 3,075 | |
Total | ¥ 126,889 | $ 18,397 | ¥ 91,842 |
Inventories, Net (Details)
Inventories, Net (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Inventories, Net | |||
Finished products | ¥ 81,190 | ¥ 69,332 | |
Raw materials and semi-finished products | 57,066 | 41,937 | |
Inventories | 138,256 | 111,269 | |
Inventory provision | (17,776) | (19,457) | |
Inventories, net | ¥ 120,480 | $ 17,468 | ¥ 91,812 |
Business Combination (Details)
Business Combination (Details) - CNY (¥) ¥ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jul. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Oct. 31, 2020 | Oct. 20, 2020 | |
Business combination | |||||||
Percentage of contingent redeemable non-controlling interest | 36.63% | ||||||
Developed technology | |||||||
Business combination | |||||||
Intangible assets | ¥ 2,500 | ||||||
Leya | |||||||
Business combination | |||||||
Percentage of equity shares acquired | 63.37% | ||||||
Cash consideration | ¥ 41,800 | ||||||
Leya | Developed technology | |||||||
Business combination | |||||||
Intangible assets | ¥ 2,500 | ||||||
Wuhan Miracle | |||||||
Business combination | |||||||
Percentage of equity shares acquired | 54.68% | ||||||
Cash consideration | ¥ 512,000 | ¥ 299,000 | |||||
Contingent consideration at fair value | 88,000 | ||||||
Percentage of equity shares acquired subsequently | 31.92% | 31.92% | 31.92% | ||||
Total equity percentage acquired | 91.77% | 91.77% | 87.60% | 91.77% | |||
Remaining payment for acquisition | ¥ 0 | ¥ 136,000 | |||||
Property and equipment, net | 104,878 | ||||||
Inventories, net | 99,681 | ||||||
Revenue of acquiree since the acquisition date included in the comprehensive income/(loss) | ¥ 111,956 | ||||||
Net profit or loss of acquiree since the acquisition date included in the comprehensive income/(loss) | ¥ 9,366 | ||||||
Wuhan Miracle | Supplier relationship | |||||||
Business combination | |||||||
Intangible assets | 17,000 | ||||||
Wuhan Miracle | In-process research and development intangible assets | |||||||
Business combination | |||||||
Intangible assets | 27,000 | ||||||
Wuhan Miracle | Developed technology | |||||||
Business combination | |||||||
Intangible assets | ¥ 70,000 | ||||||
Wuhan Miracle | Founder of Wuhan Miracle | |||||||
Business combination | |||||||
Percentage of equity shares acquired | 4.17% | ||||||
Cash consideration | ¥ 39,000 | ||||||
Wuhan Miracle | Shareholder A | |||||||
Business combination | |||||||
Percentage of equity shares acquired | 1% | ||||||
Cash consideration | ¥ 9,000 |
Business Combination - Summary
Business Combination - Summary of Estimated Aggregate Fair values of Assets Acquired and Liabilities (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | |||||
Oct. 31, 2020 CNY (¥) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Oct. 20, 2020 CNY (¥) | |
Business combination | ||||||
Goodwill | ¥ 540,693 | $ 78,393 | ¥ 540,693 | ¥ 48,500 | ||
Mezzanine equity | ¥ (24,135) | |||||
Customer relationship | ||||||
Business combination | ||||||
Intangible assets | ¥ 18,000 | |||||
Developed technology | ||||||
Business combination | ||||||
Intangible assets | ¥ 2,500 | |||||
Leya | ||||||
Business combination | ||||||
Cash and cash equivalents | ¥ 887 | |||||
Other current assets | 1,176 | |||||
Goodwill | 48,500 | |||||
Other liabilities | (5,131) | |||||
Mezzanine equity | (24,135) | |||||
Total consideration | 41,797 | |||||
Leya | Customer relationship | ||||||
Business combination | ||||||
Intangible assets | ¥ 18,000 | |||||
Useful life of intangible assets | 8 years | |||||
Leya | Developed technology | ||||||
Business combination | ||||||
Intangible assets | ¥ 2,500 | |||||
Useful life of intangible assets | 7 years |
Business Combination - Acquisit
Business Combination - Acquisition of Wuhan Miracle - Summary of Estimated Aggregate Fair values of Assets Acquired and Liabilities (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | |||||
Jul. 31, 2021 CNY (¥) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Oct. 20, 2020 CNY (¥) | |
Business combination | ||||||
Goodwill | ¥ 540,693 | $ 78,393 | ¥ 540,693 | ¥ 48,500 | ||
Developed technology | ||||||
Business combination | ||||||
Intangible assets | ¥ 2,500 | |||||
Wuhan Miracle | ||||||
Business combination | ||||||
Cash and cash equivalents | ¥ 86,467 | |||||
Short-term investment and term deposits | 50,000 | |||||
Trade receivables | 25,244 | |||||
Inventories, net | 99,681 | |||||
Other current assets | 6,401 | |||||
Property and equipment, net | 104,878 | |||||
Other non-current assets | 8,278 | |||||
Contract liabilities | (32,006) | |||||
Accrued liabilities and other liabilities | (38,245) | |||||
Deferred tax liabilities | (28,872) | |||||
Goodwill | 540,009 | |||||
Non-controlling interests | (76,905) | |||||
Total consideration | ¥ 858,930 | |||||
Useful life of intangible assets | 20 years | |||||
Wuhan Miracle | Developed technology | ||||||
Business combination | ||||||
Intangible assets | ¥ 70,000 | |||||
Useful life of intangible assets | 10 years | |||||
Wuhan Miracle | Supplier relationship | ||||||
Business combination | ||||||
Intangible assets | ¥ 17,000 | |||||
Useful life of intangible assets | 3 years | |||||
Wuhan Miracle | In-process research and development intangible assets | ||||||
Business combination | ||||||
Intangible assets | ¥ 27,000 | |||||
Useful life of intangible assets | 10 years |
Business Combination - Pro form
Business Combination - Pro forma information of the acquisition (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Business Combination | ||
Pro forma Revenue | ¥ 1,821,657 | ¥ 1,474,996 |
Pro forma net income/(loss) | ¥ (39,955) | ¥ 18,481 |
Goodwill (Details)
Goodwill (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | |
Schedule of Goodwill | |||
Goodwill, Beginning Balance | ¥ 540,693 | ¥ 48,500 | |
Increase in goodwill related to acquisition | 540,693 | ||
Impairment of goodwill | (48,500) | ||
Goodwill, Ending Balance | 540,693 | $ 78,393 | 540,693 |
So-young | |||
Schedule of Goodwill | |||
Goodwill, Beginning Balance | 684 | 48,500 | |
Increase in goodwill related to acquisition | 684 | ||
Impairment of goodwill | (48,500) | ||
Goodwill, Ending Balance | 684 | 684 | |
Wuhan Miracle | |||
Schedule of Goodwill | |||
Goodwill, Beginning Balance | 540,009 | ||
Increase in goodwill related to acquisition | 540,009 | ||
Goodwill, Ending Balance | ¥ 540,009 | ¥ 540,009 |
Goodwill - Narrative (Details)
Goodwill - Narrative (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2022 | |
Goodwill | ||
Goodwill, gross | ¥ 589,193 | ¥ 589,193 |
Accumulated impairment loss of goodwill | 48,500 | ¥ 48,500 |
Impairment of goodwill | ¥ 48,500 |
Investments - Short-term Invest
Investments - Short-term Investments (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Investments | |||
Income from short term investments | ¥ 4,264 | ¥ 8,931 | ¥ 13,599 |
Investments - Long-term Investm
Investments - Long-term Investments (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Equity investments without readily determinable fair values | ||||
Opening balance | ¥ 232,230 | ¥ 156,904 | ||
Additions | 93,350 | |||
Impairment | (8,103) | (17,850) | ||
Foreign exchange adjustment | (686) | (174) | ||
Ending balance | 224,813 | 232,230 | ¥ 156,904 | |
Equity method investments | ||||
Opening balance | 20,270 | 9,196 | ||
Additions | 12,596 | |||
Share of losses of equity method investee | (17,223) | $ (2,497) | (1,522) | (4,279) |
Foreign exchange adjustment | (174) | |||
Ending balance | 3,146 | 20,270 | 9,196 | |
Opening balance | 252,500 | 166,100 | ||
Additions | 105,946 | |||
Impairment | (8,103) | (17,850) | ||
Share of losses of equity method investments | (17,124) | (1,522) | ||
Share of losses of equity method investee | (17,124) | |||
Foreign exchange adjustment | (686) | (174) | ||
Ending balance | ¥ 227,959 | $ 33,051 | ¥ 252,500 | ¥ 166,100 |
Investments - Equity investment
Investments - Equity investments without readily determinable fair values (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||||||||||
Sep. 30, 2021 CNY (¥) | Jul. 31, 2021 CNY (¥) | Jun. 30, 2021 CNY (¥) | Apr. 30, 2019 CNY (¥) | Oct. 31, 2016 CNY (¥) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2022 USD ($) | Feb. 28, 2021 CNY (¥) | Oct. 31, 2019 CNY (¥) | Sep. 30, 2019 CNY (¥) | Nov. 30, 2018 CNY (¥) | Oct. 31, 2018 CNY (¥) | Oct. 31, 2017 CNY (¥) | |
Investments | ||||||||||||||||
Total consideration | ¥ 224,813,000 | ¥ 232,230,000 | ¥ 156,904,000 | |||||||||||||
Long-term Investments | 227,959,000 | 252,500,000 | 166,100,000 | $ 33,051 | ||||||||||||
Impairment of long-term investment | ¥ 7,945,000 | $ 1,152 | ¥ 17,850,000 | ¥ 0 | ||||||||||||
Beijing Souyang Management Consulting Co., Ltd | ||||||||||||||||
Investments | ||||||||||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 23% | |||||||||||||||
Shanghai Xingying Medical Technology Co., Ltd | ||||||||||||||||
Investments | ||||||||||||||||
Percentage of equity interest held | 10% | |||||||||||||||
Total consideration | ¥ 4,000,000 | |||||||||||||||
Cash consideration | 1,000,000 | |||||||||||||||
Non-cash consideration for investment | ¥ 3,000,000 | |||||||||||||||
Shanghai Linkedcare Information Technology Co., Ltd | ||||||||||||||||
Investments | ||||||||||||||||
Percentage of equity interest held | 13.33% | 15.10% | ||||||||||||||
Cash consideration | ¥ 40,000,000 | ¥ 125,000,000 | ||||||||||||||
First BCC | ||||||||||||||||
Investments | ||||||||||||||||
Percentage of equity interest held | 1% | |||||||||||||||
Total consideration | ¥ 1,663,000 | |||||||||||||||
Chengdu Zhisu Medical Management Company Limited | ||||||||||||||||
Investments | ||||||||||||||||
Percentage of equity interest held | 16% | 16% | ||||||||||||||
Total consideration | ¥ 4,250,000 | ¥ 4,000,000 | ||||||||||||||
Beijing Mevos | ||||||||||||||||
Investments | ||||||||||||||||
Percentage of equity interest held | 11.11% | |||||||||||||||
Total consideration | ¥ 5,150,000 | |||||||||||||||
Yicai | ||||||||||||||||
Investments | ||||||||||||||||
Percentage of equity interest held | 35% | 35% | ||||||||||||||
Cash consideration | ¥ 350 | ¥ 17,500 | ||||||||||||||
Beijing Sharing New Medical Technology Company Limited | ||||||||||||||||
Investments | ||||||||||||||||
Total consideration | ¥ 7,596,000 | ¥ 13,475,000 | ||||||||||||||
Equity method investment ownership percentage | 49% | 49% | ||||||||||||||
Beauty Care Clinics Investment Co., Ltd | ||||||||||||||||
Investments | ||||||||||||||||
Percentage of equity interest held | 1.74% | |||||||||||||||
Cash consideration | ¥ 50,000,000 | |||||||||||||||
Ningbo Qizhi Nianhua Medical Treatment Technology Co., Ltd | ||||||||||||||||
Investments | ||||||||||||||||
Percentage of equity interest held | 7.50% | |||||||||||||||
Cash consideration | ¥ 3,000,000 | |||||||||||||||
Beijing Souyang Management Consulting Co., Ltd | ||||||||||||||||
Investments | ||||||||||||||||
Equity method investment ownership percentage | 77% | |||||||||||||||
Payments to Acquire Equity Method Investments | ¥ 5,000,000 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2022 USD ($) | |
Property and Equipment , Net | ||||
Property and Equipment, Gross | ¥ 169,502 | ¥ 156,140 | ||
Less: Accumulated depreciation | (51,279) | (30,875) | ||
Less: Impairment of property and equipment | (2,039) | (689) | ||
Net book value | 116,184 | 124,576 | $ 16,845 | |
Depreciation expenses | 21,648 | 15,086 | ¥ 9,258 | |
Building | ||||
Property and Equipment , Net | ||||
Property and Equipment, Gross | 99,166 | 99,166 | ||
Leasehold improvements | ||||
Property and Equipment , Net | ||||
Property and Equipment, Gross | 32,685 | 32,723 | ||
Production machinery | ||||
Property and Equipment , Net | ||||
Property and Equipment, Gross | 4,744 | 3,680 | ||
Computers and electrical equipment | ||||
Property and Equipment , Net | ||||
Property and Equipment, Gross | 7,652 | 8,370 | ||
Office equipment, furniture and others | ||||
Property and Equipment , Net | ||||
Property and Equipment, Gross | ¥ 25,255 | ¥ 12,201 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets and Related Accumulated Amortization (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Intangible assets | |||
Gross carrying value | ¥ 232,901 | ¥ 232,138 | |
Accumulated amortization | (46,242) | (20,804) | |
Impairment amount | (17,379) | (17,379) | |
Net Carrying Amount | 169,280 | $ 24,543 | 193,955 |
License | |||
Intangible assets | |||
Gross carrying value | 93,952 | 93,952 | |
Accumulated amortization | (18,806) | (9,411) | |
Net Carrying Amount | 75,146 | 84,541 | |
Customer relationship | |||
Intangible assets | |||
Gross carrying value | 18,000 | 18,000 | |
Accumulated amortization | (2,692) | (2,692) | |
Impairment amount | (15,308) | (15,308) | |
Supplier relationship | |||
Intangible assets | |||
Gross carrying value | 17,000 | 17,000 | |
Accumulated amortization | (8,154) | (2,500) | |
Net Carrying Amount | 8,846 | 14,500 | |
Developed technology | |||
Intangible assets | |||
Gross carrying value | 72,500 | 72,500 | |
Accumulated amortization | (10,593) | (3,575) | |
Impairment amount | (2,071) | (2,071) | |
Net Carrying Amount | 59,836 | 66,854 | |
In-process research and development intangible assets | |||
Intangible assets | |||
Gross carrying value | 27,000 | 27,000 | |
Accumulated amortization | (3,885) | (1,191) | |
Net Carrying Amount | 23,115 | 25,809 | |
Software | |||
Intangible assets | |||
Gross carrying value | 3,223 | 2,760 | |
Accumulated amortization | (1,644) | (1,073) | |
Net Carrying Amount | 1,579 | 1,687 | |
Trade names | |||
Intangible assets | |||
Gross carrying value | 779 | 716 | |
Accumulated amortization | (341) | (266) | |
Net Carrying Amount | 438 | 450 | |
Others | |||
Intangible assets | |||
Gross carrying value | 447 | 210 | |
Accumulated amortization | (127) | (96) | |
Net Carrying Amount | ¥ 320 | ¥ 114 |
Intangible Assets (Details)
Intangible Assets (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Intangible Assets | |||
Amortization expense | ¥ 25,438 | ¥ 14,995 | ¥ 4,829 |
Estimated amortization expenses 2023 | 25,308 | ||
Estimated amortization expenses 2024 | 22,651 | ||
Estimated amortization expenses 2025 | 19,365 | ||
Estimated amortization expenses 2026 | 19,342 | ||
Estimated amortization expenses five and thereafter | 82,614 | ||
Impairment of intangible assets | ¥ 0 | ¥ 17,379 | ¥ 0 |
Taxation - VAT (Details)
Taxation - VAT (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Taxation | |
Urban construction tax rate (7%) | 7% |
Urban construction tax rate (5%) | 5% |
Urban construction tax rate (1%) | 1% |
Education surcharges rate | 3% |
Local education surcharges rate | 2% |
Products | |
Taxation | |
Statutory VAT rate | 13% |
Services | |
Taxation | |
Statutory VAT rate | 6% |
Taxation - Composition of incom
Taxation - Composition of income tax (Details) ¥ in Thousands, $ in Thousands, $ in Thousands | 12 Months Ended | 24 Months Ended | 36 Months Ended | ||||||||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2022 HKD ($) | Dec. 31, 2020 | Dec. 31, 2023 | Dec. 31, 2022 | |
Composition of income tax (benefit)/expense | |||||||||||
Current income tax expense | ¥ | ¥ 3,838 | ¥ 19,579 | ¥ 16,580 | ||||||||
Deferred tax benefits | (24,803) | $ (3,596) | 1,652 | (21,364) | |||||||
Income tax expenses/(benefits) | ¥ (20,965) | $ (3,040) | ¥ 21,231 | ¥ (4,784) | |||||||
EIT rate for qualified enterprise in encouraged industries registered in the Hainan Free Trade Port ("HFTP") and engaged in substantive operations (in percent) | 15% | 15% | |||||||||
Hong Kong | |||||||||||
Composition of income tax (benefit)/expense | |||||||||||
Income tax rate | 16.50% | ||||||||||
Income tax rate up to assessable profits | 8.25% | ||||||||||
Threshold assessable profits | $ | $ 2,000 | ||||||||||
Income tax rate over assessable profits | 16.50% | ||||||||||
China | |||||||||||
Composition of income tax (benefit)/expense | |||||||||||
Standard enterprise income tax rate | 25% | 25% | 25% | ||||||||
Preferential tax rate | 15% | 15% | 15% | 15% | 15% | 0% | 15% | ||||
Preferential tax period | 3 years | 3 years | |||||||||
China | Forecast | |||||||||||
Composition of income tax (benefit)/expense | |||||||||||
Preferential tax rate | 12.50% |
Taxation - Reconciliation (Deta
Taxation - Reconciliation (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Taxation | ||||
Income tax expenses at PRC statutory income tax rate-25% | ¥ (21,767) | ¥ (4,101) | ¥ 34 | |
Permanent differences | (3,899) | 5,412 | (8,629) | |
Tax rate difference from tax holiday and statutory rate in other jurisdictions | 3,413 | 5,701 | (377) | |
Change in valuation allowance | 1,288 | 14,219 | 4,188 | |
Income tax expenses/(benefits) | ¥ (20,965) | $ (3,040) | ¥ 21,231 | ¥ (4,784) |
Taxation - Per share effect of
Taxation - Per share effect of tax holidays (Details) - ¥ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Taxation | |||
Net gain per ordinary share effect-basic | ¥ (0.21) | ¥ (0.07) | ¥ 0.11 |
Net gain per ordinary share effect-diluted | ¥ (0.21) | ¥ (0.07) | ¥ 0.10 |
Taxation - Deferred tax assets
Taxation - Deferred tax assets (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2019 CNY (¥) |
Deferred tax assets | |||||
Advertising and promotion expenses in excess of deduction limit | ¥ 39,287 | ¥ 53,670 | |||
Payroll and expense accrued | 3,551 | 4,909 | |||
Net operating tax loss carry forwards | 47,288 | 25,200 | |||
Share of loss on equity method investment | 5,756 | 1,450 | |||
Impairment of long-term investments | 5,493 | 5,463 | |||
Allowance for doubtful accounts and inventory | 12,753 | 5,740 | |||
Others | 1,826 | 1,015 | |||
Valuation allowance | (51,215) | (49,927) | ¥ (35,708) | ¥ (28,043) | |
Total deferred tax assets, net | 64,739 | 47,520 | |||
Deferred tax liabilities | |||||
Assets arisen from business combination and assets acquisition | 30,993 | 38,577 | |||
Total deferred tax liabilities | ¥ 30,993 | $ 4,494 | ¥ 38,577 |
Taxation - Movements (Details)
Taxation - Movements (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Taxation | |||
Balance at beginning of period | ¥ (49,927) | ¥ (35,708) | ¥ (28,043) |
Change of valuation allowance | (1,288) | (14,219) | (7,665) |
Balance at end of period | ¥ (51,215) | ¥ (49,927) | ¥ (35,708) |
Taxation - Tax losses (Details)
Taxation - Tax losses (Details) ¥ in Thousands | Dec. 31, 2022 CNY (¥) |
Taxation | |
Total | ¥ 277,512 |
Loss expiring in 2023 | |
Taxation | |
Total | 10,863 |
Loss expiring in 2024 | |
Taxation | |
Total | 12,067 |
Loss expiring in 2025 | |
Taxation | |
Total | 45,276 |
Loss expiring in 2027 and thereafter | |
Taxation | |
Total | 179,210 |
Loss expiring in 2026 | |
Taxation | |
Total | ¥ 30,096 |
Taxation - Withholding tax (Det
Taxation - Withholding tax (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Outside of China | |
Taxation | |
Withholding income tax rate on dividends distributed by a FIE | 10% |
Withholding income tax rate | 10% |
Hong Kong | |
Taxation | |
Withholding income tax rate on dividends distributed by a FIE | 5% |
Threshold of shares owned by foreign investors for 5% withholding tax rate (as a percent) | 25% |
Withholding income tax rate | 5% |
Taxes Payable (Details)
Taxes Payable (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Taxes Payable | |||
VAT payable | ¥ 34,480 | ¥ 12,831 | |
Withholding individual income taxes for employees | 7,862 | 8,114 | |
Enterprise income taxes payable | 30,666 | 26,690 | |
Others | 1,572 | 936 | |
Total | ¥ 74,580 | $ 10,813 | ¥ 48,571 |
Contract Balances (Details)
Contract Balances (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2022 USD ($) | |
Contract Balances | ||||
Trade receivables | ¥ 36,006 | ¥ 54,829 | ¥ 52,871 | $ 5,220 |
Contract liabilities | 110,159 | 139,155 | 135,385 | $ 15,972 |
Revenue recognized included in the contract liability | ¥ 118,960 | ¥ 135,385 | ¥ 93,725 | |
Revenue, Remaining Performance Obligation, Optional Exemption, Performance Obligation | true | true |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Accrued Expenses and Other Current Liabilities | |||
Payment for acquisition of Wuhan Miracle | ¥ 136,482 | ||
Accrued service expenses | ¥ 46,638 | 61,255 | |
Deposits payable to service providers | 55,198 | 68,248 | |
Advance payment from platform user | 71,514 | 51,104 | |
Payable to service providers | 20,290 | 24,860 | |
Payments for inventories | 13,202 | 18,840 | |
Product warranty | 2,704 | 2,529 | |
Accrued litigation liabilities (see Note 20) | 3,611 | 2,162 | |
Others | 11,432 | 11,361 | |
Total | ¥ 224,589 | $ 32,561 | ¥ 376,841 |
Accrued Expenses and Other Cu_4
Accrued Expenses and Other Current Liabilities - Standard product warranty activities (Details) - CNY (¥) ¥ in Thousands | 5 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Dec. 31, 2022 | |
Accrued Expenses and Other Current Liabilities | ||
Balance at Beginning | ¥ 3,043 | ¥ 2,529 |
Provided during the period | 861 | 3,288 |
Utilized during the period | (1,375) | (3,113) |
Balance at End | ¥ 2,529 | ¥ 2,704 |
Lease (Details)
Lease (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2022 USD ($) | |
Lease | ||||
Operating lease right-of-use assets | ¥ 62,898 | ¥ 95,609 | $ 9,119 | |
Operating lease liability | 71,257 | 105,885 | ||
Cash payments for operating leases | 46,169 | 44,072 | ||
ROU assets obtained in exchange for operating lease liabilities | ¥ 5,979 | ¥ 9,137 | ||
Weighted-average remaining lease term | 1 year 7 months 2 days | 2 years 5 months 1 day | 1 year 7 months 2 days | |
Weighted-average discount rate | 5.85% | 5.90% | 5.85% | |
Operating lease cost | ¥ 44,252 | ¥ 41,976 | ¥ 40,432 | |
Short-term lease cost | 5,146 | 7,929 | ¥ 6,586 | |
Right of use assets in relation to early terminated lease | ¥ 0 | ¥ 0 |
Lease - Future lease payments u
Lease - Future lease payments under operating leases as of December 31, 2021 (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Year ending December 31, | ||
2023 | ¥ 53,268 | |
2024 | 18,967 | |
2025 | 1,652 | |
2026 | 803 | |
Total future lease payments | 74,690 | |
Less: Imputed interest | (3,433) | |
Total lease liability balance | ¥ 71,257 | ¥ 105,885 |
Ordinary Shares (Details)
Ordinary Shares (Details) $ / shares in Units, $ in Thousands, ¥ in Millions | 1 Months Ended | |||
May 31, 2019 USD ($) Vote $ / shares shares | May 31, 2019 CNY (¥) Vote shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 $ / shares shares | |
Ordinary Shares | ||||
Authorized share capital | $ | $ 425 | $ 425 | ||
Ordinary shares authorized (in shares) | 850,000,000 | 850,000,000 | ||
Class A Ordinary Shares | ||||
Ordinary Shares | ||||
Ordinary shares authorized (in shares) | 750,000,000 | 750,000,000 | 750,000,000 | |
Issuance of Class A ordinary shares upon the completion of IPO, net of issuance cost (in shares) | 11,500,000 | 11,500,000 | ||
Ordinary shares issued (in shares) | 73,065,987 | 71,736,059 | ||
Ordinary shares outstanding (in shares) | 68,843,320 | 69,092,367 | ||
Number of votes per share | Vote | 1 | 1 | ||
Ordinary shares par value (in dollars per share) | $ / shares | $ 0.0005 | $ 0.0005 | $ 0.0005 | |
Number of shares redesignated | 66,613,419 | 66,613,419 | ||
Class B Ordinary shares | ||||
Ordinary Shares | ||||
Ordinary shares authorized (in shares) | 20,000,000 | 20,000,000 | 20,000,000 | |
Ordinary shares issued (in shares) | 12,000,000 | 12,000,000 | ||
Ordinary shares outstanding (in shares) | 12,000,000 | 12,000,000 | ||
Number of votes per share | Vote | 30 | 30 | ||
Ordinary shares par value (in dollars per share) | $ / shares | $ 0.0005 | $ 0.0005 | $ 0.0005 | |
Number of shares redesignated | 12,000,000 | 12,000,000 | ||
Ordinary shares, undesignated | ||||
Ordinary Shares | ||||
Ordinary shares authorized (in shares) | 80,000,000 | 80,000,000 | ||
Ordinary shares par value (in dollars per share) | $ / shares | $ 0.0005 | $ 0.0005 | ||
ADS | ||||
Ordinary Shares | ||||
Number of securities sold | 14,950,000 | 14,950,000 | ||
Sale price per shares | $ / shares | $ 13.80 | |||
IPO | ||||
Ordinary Shares | ||||
Net proceeds | $ 187,500 | ¥ 1,267 | ||
IPO | Class A Ordinary Shares | ||||
Ordinary Shares | ||||
Issuance of Class A ordinary shares upon the completion of IPO, net of issuance cost (in shares) | 11,500,000 | 11,500,000 | ||
IPO | ADS | ||||
Ordinary Shares | ||||
Issuance of Class A ordinary shares upon the completion of IPO, net of issuance cost (in shares) | 14,950,000 | 14,950,000 | ||
Ordinary shares | Class A Ordinary Shares | ||||
Ordinary Shares | ||||
Ordinary shares authorized (in shares) | 750,000,000 | 750,000,000 | ||
Ordinary shares issued (in shares) | 73,065,987 | 71,736,059 | ||
Ordinary shares outstanding (in shares) | 68,843,320 | 69,092,367 | ||
Ordinary shares par value (in dollars per share) | $ / shares | $ 0.0005 | $ 0.0005 | ||
Ordinary shares | Class B Ordinary shares | ||||
Ordinary Shares | ||||
Ordinary shares authorized (in shares) | 20,000,000 | 20,000,000 | ||
Ordinary shares issued (in shares) | 12,000,000 | 12,000,000 | ||
Ordinary shares outstanding (in shares) | 12,000,000 | 12,000,000 | ||
Ordinary shares par value (in dollars per share) | $ / shares | $ 0.0005 | $ 0.0005 |
Share-based Compensation (Detai
Share-based Compensation (Details) - $ / shares | 1 Months Ended | 12 Months Ended | |||||||
Apr. 01, 2021 | Mar. 27, 2019 | Apr. 01, 2018 | Mar. 31, 2018 | Jan. 31, 2015 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Apr. 30, 2014 | |
Share-based Compensation | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 1,147,000 | 1,048,000 | 2,665,000 | ||||||
Exercise price | $ 0.1 | $ 0.1 | $ 0.1 | ||||||
2014 Incentive Plan | |||||||||
Share-based Compensation | |||||||||
Number of shares authorized to issue | 3,200,000 | ||||||||
Vesting period | 4 years | ||||||||
Expiration period | 10 years | 4 years | 4 years | ||||||
2014 Incentive Plan | Maximum | |||||||||
Share-based Compensation | |||||||||
Number of shares authorized to issue | 5,117,613 | ||||||||
Second Amended 2018 Plan | |||||||||
Share-based Compensation | |||||||||
Number of shares authorized to issue | 7,700,000 | ||||||||
Threshold of increase in outstanding share capital (as a percent) | 2% | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 1,147,101 | 2,665,028 | |||||||
Vesting period | 4 years | ||||||||
Exercise price | $ 0.1 | $ 0.1 | |||||||
Vesting percentage in first year | 25% | ||||||||
Remaining vesting percentage in next years | 75% | ||||||||
Second Amended 2018 Plan | Maximum | |||||||||
Share-based Compensation | |||||||||
Threshold of increase in outstanding share capital (as a percent) | 10% | ||||||||
2018 Plan | |||||||||
Share-based Compensation | |||||||||
Number of shares authorized to issue | 7,111,447 | ||||||||
Plan 2021 | |||||||||
Share-based Compensation | |||||||||
Number of shares authorized to issue | 1,047,828 | ||||||||
Exercise price | $ 0.1 | ||||||||
Ordinary shares issued (in shares) | 1,734,760 | ||||||||
Percentage of total number of shares issued and outstanding | 2% | ||||||||
Options granted | 50% | ||||||||
Plan 2021 | Modification A | |||||||||
Share-based Compensation | |||||||||
Unvested options | 50% | ||||||||
Plan 2021 | Modification B | |||||||||
Share-based Compensation | |||||||||
Unvested options | 50% |
Share based compensation - Valu
Share based compensation - Valuation (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation | |||
Options granted | 1,147 | 1,048 | 2,665 |
Expected volatility, minimum | 47.30% | 46.48% | 47% |
Expected volatility, maximum | 50.09% | 52.64% | 55% |
Expected dividends yield | 0% | 0% | 0% |
Risk-free interest rate, minimum | 1.75% | 1.03% | 0.62% |
Risk-free interest rate, maximum | 4.07% | 1.61% | 1.77% |
Expected term (in years) | 10 years | 10 years | 10 years |
Maximum | |||
Share-based Compensation | |||
Expected multiples | 2.8 | 2.8 | 2.8 |
Fair value of underlying ordinary share (USD) | $ 3.64 | $ 12.90 | $ 16.13 |
Minimum | |||
Share-based Compensation | |||
Expected multiples | 2.2 | 2.2 | 2.2 |
Fair value of underlying ordinary share (USD) | $ 0.68 | $ 4.15 | $ 12.98 |
Share based compensation - Shar
Share based compensation - Share options activities (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||||||
Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2022 CNY (¥) shares | Dec. 31, 2021 USD ($) $ / shares shares | Dec. 31, 2021 CNY (¥) shares | Dec. 31, 2020 USD ($) $ / shares shares | Dec. 31, 2020 CNY (¥) shares | Dec. 31, 2019 USD ($) $ / shares shares | Dec. 31, 2022 CNY (¥) shares | Dec. 31, 2021 CNY (¥) shares | Dec. 31, 2020 CNY (¥) shares | |
Number of options: | ||||||||||
Outstanding number of shares at beginning | 2,512,000 | 2,512,000 | 4,526,000 | 4,526,000 | 3,496,000 | 3,496,000 | ||||
Granted | 1,147,000 | 1,147,000 | 1,048,000 | 1,048,000 | 2,665,000 | 2,665,000 | ||||
Exercised | (1,580,000) | (1,580,000) | (1,774,000) | (1,774,000) | (1,090,000) | (1,090,000) | ||||
Forfeited | (340,000) | (340,000) | (1,288,000) | (1,288,000) | (545,000) | (545,000) | ||||
Outstanding number of shares at ending | 1,739,000 | 1,739,000 | 2,512,000 | 2,512,000 | 4,526,000 | 4,526,000 | 3,496,000 | |||
Options, vested and exercisable | 846,000 | 1,116,000 | 557,000 | 846,000 | 1,116,000 | 557,000 | ||||
Weighted Average Exercise Price: | ||||||||||
Weighted average exercise price at beginning | $ / shares | $ 0.1 | $ 0.1 | $ 0.1 | |||||||
Granted | $ / shares | 0.1 | 0.1 | 0.1 | |||||||
Exercised | $ / shares | 0.1 | 0.1 | 0.1 | |||||||
Forfeited | $ / shares | 0.1 | 0.1 | 0.1 | |||||||
Weighted average exercise price at ending | $ / shares | 0.1 | 0.1 | 0.1 | $ 0.1 | ||||||
Weighted average exercise price, vested and exercisable | $ / shares | $ 0.1 | $ 0.1 | $ 0.1 | |||||||
Weighted Average Remaining Contractual Term and Aggregate Intrinsic Value: | ||||||||||
Weighted average contractual term outstanding | 8 years 3 months 3 days | 8 years 3 months 3 days | 8 years 5 months 19 days | 8 years 5 months 19 days | 8 years 7 months 6 days | 8 years 7 months 6 days | 8 years 6 months 18 days | |||
Weighted average contractual term, vested and exercisable | 7 years 6 months 21 days | 7 years 6 months 21 days | 8 years 10 months 2 days | 8 years 10 months 2 days | 7 years 5 months 8 days | 7 years 5 months 8 days | ||||
Aggregate intrinsic value outstanding | $ | $ 2,742 | $ 10,167 | $ 66,255 | $ 55,188 | ||||||
Aggregate intrinsic value exercised | $ | 2,193 | 16,088 | 15,148 | |||||||
Aggregate intrinsic value, vested and exercisable | $ | $ 1,334 | $ 4,515 | $ 8,156 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract] | ||||||||||
Weighted average grant date fair value of options granted | $ / shares | $ 4.42 | $ 7.59 | $ 13.38 | |||||||
Options granted | 1,147,000 | 1,147,000 | 1,048,000 | 1,048,000 | 2,665,000 | 2,665,000 | ||||
Grant date fair value of options vested | ¥ | ¥ 74,266 | ¥ 141,845 | ¥ 58,700 | |||||||
Total unrecognized compensation expenses | ¥ | ¥ 26,733 | ¥ 65,122 | ¥ 216,971 | |||||||
Unrecognized compensation cost expected to be recognized over a weighted average period | 1 year 5 months 19 days | 1 year 5 months 19 days | 2 years 1 month 17 days | 2 years 1 month 17 days | 2 years 8 months 23 days | 2 years 8 months 23 days | ||||
Second Amended 2018 Plan | ||||||||||
Number of options: | ||||||||||
Granted | 1,147,101 | 1,147,101 | 2,665,028 | 2,665,028 | ||||||
Weighted Average Exercise Price: | ||||||||||
Granted | $ / shares | $ 0.1 | $ 0.1 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract] | ||||||||||
Options granted | 1,147,101 | 1,147,101 | 2,665,028 | 2,665,028 | ||||||
Number of shares available for future grant | 620,124 | 620,124 | ||||||||
Plan 2021 | ||||||||||
Weighted Average Exercise Price: | ||||||||||
Granted | $ / shares | $ 0.1 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract] | ||||||||||
Number of shares available for future grant | 1,652,620,000 | 1,652,620,000 |
Net Earnings(Loss) per Share -
Net Earnings(Loss) per Share - Basic and diluted loss per ordinary share (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 CNY (¥) ¥ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 CNY (¥) ¥ / shares shares | Dec. 31, 2020 CNY (¥) ¥ / shares shares | ||
Net Income (Loss) Available to Common Stockholders, Basic [Abstract] | |||||
Net income/(loss) | ¥ (66,107) | $ (9,584) | ¥ (37,636) | ¥ 4,877 | |
Net loss attributable to non-controlling interests | ¥ | 553 | 29,265 | 930 | ||
Net earnings/(loss) attributable to So-Young International Inc. | ¥ | ¥ (65,554) | ¥ (8,371) | ¥ 5,807 | ||
Weighted Average Number of Shares Outstanding, Diluted [Abstract] | |||||
Weighted average number of ordinary shares outstanding, basic | shares | [1] | 82,665,269 | 82,665,269 | 81,680,504 | 81,534,991 |
Weighted average number of ordinary shares outstanding, diluted | shares | [1] | 82,665,269 | 82,665,269 | 81,680,504 | 83,781,406 |
Common Stock | |||||
Weighted Average Number of Shares Outstanding, Diluted [Abstract] | |||||
Net (loss)/earnings per share, basic | (per share) | ¥ (0.79) | $ (0.11) | ¥ (0.10) | ¥ 0.07 | |
Net (loss)/earnings per share, diluted | (per share) | (0.79) | (0.11) | (0.10) | 0.07 | |
ADS | |||||
Weighted Average Number of Shares Outstanding, Diluted [Abstract] | |||||
Net (loss)/earnings per share, basic | (per share) | (0.61) | (0.09) | (0.08) | 0.05 | |
Net (loss)/earnings per share, diluted | (per share) | ¥ (0.61) | $ (0.09) | ¥ (0.08) | ¥ 0.05 | |
[1] Both Class A and Class B ordinary shares are included in the calculation of the weighted average number of ordinary shares outstanding, basic and diluted. |
Commitment and Contingencies (D
Commitment and Contingencies (Details) ¥ in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2022 USD ($) | |
Contingencies and Commitment. | ||||
2023 | ¥ 53,268 | |||
2024 | 18,967 | |||
2025 | 1,652 | |||
2026 | 803 | |||
Total future lease payments | 74,690 | |||
Accrued litigation liabilities | 3,611 | ¥ 2,162 | ||
Litigation expenses | 5,918 | ¥ 6,150 | ¥ 4,022 | |
Leases Office Space | Bandwidth And Property Management Fees | ||||
Contingencies and Commitment. | ||||
2023 | 5,949 | |||
2024 | 2,011 | |||
2025 | 90 | |||
2026 | 90 | |||
Total future lease payments | 8,140 | |||
Imported Equipment | Wuhan Miracle | ||||
Contingencies and Commitment. | ||||
future minimum payments | ¥ 2,000 | $ 0.3 |
Fair Value Measurement (Details
Fair Value Measurement (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair value measurement | ||
Contingent consideration | ¥ 0 | ¥ 88,000 |
Recurring | Level 2 | ||
Fair value measurement | ||
Short-term investments | 408,946 | |
Recurring | Level 3 | ||
Fair value measurement | ||
Contingent consideration | ¥ 88,000 |
Fair Value Measurement Narrativ
Fair Value Measurement Narratives (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Fair value measurement | ||||
Accrued investment income of short-term investments | ¥ (49) | $ (7) | ¥ (8,289) | ¥ 6,374 |
Impairment loss for the intangible assets | Impairment of goodwill and intangible assets | |||
Impairment of goodwill | ¥ 48,500 | |||
Impairment of property and equipment | 1,350 | $ 196 | 0 | 0 |
Recurring | ||||
Fair value measurement | ||||
Accrued investment income of short-term investments | 0 | 161 | ||
Non-recurring | ||||
Fair value measurement | ||||
Impairment charges on investment | 7,945 | 17,850 | 0 | |
Impairment loss for the intangible assets | 0 | 17,379 | 0 | |
Impairment of goodwill | ¥ 0 | ¥ 48,500 | ¥ 0 |
Related Party Transactions (Det
Related Party Transactions (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2019 CNY (¥) | Dec. 31, 2022 USD ($) | |
Related party transactions | |||||
Amounts due from related parties | ¥ 33,382 | ¥ 14,038 | $ 4,840 | ||
Amounts due to related parties | 5,895 | 681 | $ 855 | ||
Impairment of amount due from related parties | 860 | ||||
Yicai | Provision of service | |||||
Related party transactions | |||||
Amount of transaction entered with related parties | ¥ 528 | ||||
Yicai | Loan advanced to the related party | |||||
Related party transactions | |||||
Amount of transaction entered with related parties | 2,000 | ||||
Yicai | Provision of rental service | |||||
Related party transactions | |||||
Amount of transaction entered with related parties | 340 | ||||
Chengdu Zhisu | |||||
Related party transactions | |||||
Amounts due from related parties | 323 | 241 | |||
Amounts due to related parties | 25 | ||||
Chengdu Zhisu | Provision of service | |||||
Related party transactions | |||||
Amount of transaction entered with related parties | 1,225 | 2,934 | 4,027 | ||
Chengdu Zhisu | Repayment of the loan advances to the related party | |||||
Related party transactions | |||||
Amount of transaction entered with related parties | 5,000 | ||||
Xingying | |||||
Related party transactions | |||||
Amounts due to related parties | 128 | 33 | |||
Xingying | Provision of service | |||||
Related party transactions | |||||
Amount of transaction entered with related parties | 836 | 1,802 | 1,127 | ||
Beijing Mevos | |||||
Related party transactions | |||||
Amounts due to related parties | 642 | ||||
Beijing Mevos | Expense occurred to the related party | |||||
Related party transactions | |||||
Amount of transaction entered with related parties | 1,637 | 976 | 1,472 | ||
Beijing Sharing New Medical Technology Co., Ltd | |||||
Related party transactions | |||||
Amounts due from related parties | ¥ 32,974 | ¥ 13,797 | |||
Loan, interest rate (as a percent) | 4.35% | 4.35% | 4.35% | ||
Beijing Sharing New Medical Technology Co., Ltd | Loan advanced to the related party | |||||
Related party transactions | |||||
Amount of transaction entered with related parties | ¥ 18,130 | ¥ 13,720 | 16,889 | ||
Beijing Sharing New Medical Technology Co., Ltd | Repayment of the loan advances to the related party | |||||
Related party transactions | |||||
Amount of transaction entered with related parties | 7,170 | 9,718 | |||
Beijing Sharing New Medical Technology Co., Ltd | Interest income | |||||
Related party transactions | |||||
Amount of transaction entered with related parties | 1,148 | 103 | 234 | ||
Zhang Haipeng | |||||
Related party transactions | |||||
Cash consideration | 1,300 | ||||
Advertising expense | ¥ 613 | ||||
Zhang Haipeng | Expense occurred to the related party | |||||
Related party transactions | |||||
Amount of transaction entered with related parties | ¥ 613 | ||||
Future Light | |||||
Related party transactions | |||||
Amounts due from related parties | 35 | ||||
Future Light | Expense occurred to the related party | |||||
Related party transactions | |||||
Amount of transaction entered with related parties | 1,348 | ¥ 606 | |||
Yinchuxing | |||||
Related party transactions | |||||
Amounts due from related parties | 50 | ||||
Yinchuxing | Expense occurred to the related party | |||||
Related party transactions | |||||
Amount of transaction entered with related parties | 407 | ||||
Chutian | Expense occurred to the related party | |||||
Related party transactions | |||||
Amount of transaction entered with related parties | 113 | ||||
Lv Li | |||||
Related party transactions | |||||
Amounts due to related parties | 5,700 | ||||
Lv Li | Leya | |||||
Related party transactions | |||||
Cash consideration | ¥ 5,700 | ||||
Equity interest to be disposed | 63.37% | ||||
Beijing Souyang | |||||
Related party transactions | |||||
Amounts due to related parties | ¥ 42 | ||||
Beijing Souyang | Expense occurred to the related party | |||||
Related party transactions | |||||
Amount of transaction entered with related parties | ¥ 582 |
Segment Information - Group's o
Segment Information - Group's operating segment results (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Revenues | ||||
Total revenues | ¥ 1,257,874 | $ 182,375 | ¥ 1,692,463 | ¥ 1,294,988 |
Cost of revenues | ||||
Cost of revenues | (393,292) | (57,022) | (327,889) | (212,206) |
Gross profit: | ||||
Gross profit | 864,582 | $ 125,353 | ¥ 1,364,574 | 1,082,782 |
Wuhan Miracle | ||||
Segment Reporting Information [Line Items] | ||||
Equity method investment ownership percentage | 91.77% | |||
Operating Segments | ||||
Revenues | ||||
Total revenues | 1,259,509 | ¥ 1,692,463 | 1,294,988 | |
Cost of revenues | ||||
Cost of revenues | (394,309) | (327,909) | (212,206) | |
Gross profit: | ||||
Gross profit | 865,200 | 1,364,554 | 1,082,782 | |
Operating Segments | So Young | ||||
Revenues | ||||
Total revenues | 1,017,170 | 1,580,507 | 1,294,988 | |
Cost of revenues | ||||
Cost of revenues | (259,940) | (249,767) | (212,206) | |
Gross profit: | ||||
Gross profit | 757,230 | 1,330,740 | ¥ 1,082,782 | |
Operating Segments | Wuhan Miracle | ||||
Revenues | ||||
Total revenues | 242,339 | 111,956 | ||
Cost of revenues | ||||
Cost of revenues | (134,369) | (78,142) | ||
Gross profit: | ||||
Gross profit | 107,970 | 33,814 | ||
Eliminations | ||||
Revenues | ||||
Total revenues | (1,635) | |||
Cost of revenues | ||||
Cost of revenues | 1,017 | 20 | ||
Gross profit: | ||||
Gross profit | ¥ (618) | ¥ 20 |
Segment Information (Details)
Segment Information (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Segment Information | ||||
Total revenues | ¥ 1,257,874 | $ 182,375 | ¥ 1,692,463 | ¥ 1,294,988 |
Total depreciation expenses of property and equipment | 47,086 | 6,827 | 30,081 | 14,087 |
Total amortization expense of Intangible assets | 25,438 | 14,995 | 4,829 | |
Information services and others | ||||
Segment Information | ||||
Total revenues | 888,475 | 128,817 | 1,304,455 | 962,089 |
Reservation services | ||||
Segment Information | ||||
Total revenues | 128,668 | 18,655 | 276,052 | 332,899 |
Sales of equipment and maintenance services | ||||
Segment Information | ||||
Total revenues | 240,731 | $ 34,903 | 111,956 | |
Operating Segments | ||||
Segment Information | ||||
Total revenues | 1,259,509 | 1,692,463 | 1,294,988 | |
Total depreciation expenses of property and equipment | 5,531 | 3,109 | 1,996 | |
Total amortization expense of Intangible assets | 22,316 | 13,554 | 4,723 | |
Operating Segments | So Young | ||||
Segment Information | ||||
Total revenues | 1,017,170 | 1,580,507 | 1,294,988 | |
Total depreciation expenses of property and equipment | 3,676 | 2,559 | 1,996 | |
Total amortization expense of Intangible assets | 9,649 | 7,907 | ¥ 4,723 | |
Operating Segments | Wuhan Miracle | ||||
Segment Information | ||||
Total revenues | 242,339 | 111,956 | ||
Total depreciation expenses of property and equipment | 1,855 | 550 | ||
Total amortization expense of Intangible assets | ¥ 12,667 | ¥ 5,647 |
Restricted Net Assets (Details)
Restricted Net Assets (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Restricted Net Assets | ||
Amount of restricted net assets of PRC subsidiaries | ¥ 1,087,002 | ¥ 948,503 |
Additional Information-Parent_3
Additional Information-Parent Company Only Condensed Financial Information balance sheet (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2019 CNY (¥) |
Current assets: | ||||||
Cash and cash equivalents | ¥ 694,420 | $ 100,681 | ¥ 1,331,968 | ¥ 1,127,055 | ||
Term deposits and short-term investments | 875,955 | 127,002 | 408,946 | |||
Prepayment and other current assets | 126,889 | 18,397 | 91,842 | |||
Total current assets | 1,916,827 | 277,913 | 2,027,418 | |||
Non-current assets: | ||||||
Long-term Investments | 227,959 | 33,051 | 252,500 | 166,100 | ||
Total non-current assets | 1,281,046 | 185,733 | 1,302,950 | |||
Total assets | 3,197,873 | 463,646 | 3,330,368 | |||
Liabilities | ||||||
Accrued expenses and other current liabilities | 224,589 | 32,561 | 376,841 | |||
Total liabilities | 590,005 | 85,543 | 813,334 | |||
Shareholders' (deficit)/equity: | ||||||
Treasury stock | (232,835) | (33,758) | (217,712) | |||
Additional paid-in capital | 3,043,971 | 441,334 | 2,999,562 | |||
Statutory reserves | 29,027 | 4,209 | 20,331 | |||
Accumulated deficit | (346,618) | (50,255) | (272,368) | |||
Accumulated other comprehensive income | 4,107 | 595 | (83,891) | |||
Total So-Young International Inc. shareholders' equity | 2,497,925 | 362,163 | 2,446,189 | |||
Total liabilities and shareholders' equity | 3,197,873 | 463,646 | 3,330,368 | |||
Parent company | ||||||
Current assets: | ||||||
Cash and cash equivalents | 143,100 | 20,747 | 55,806 | $ 8,091 | ¥ 6,300 | ¥ 74,230 |
Amounts due from VIE companies | 39,681 | |||||
Amounts due from Group companies | 1,671,880 | 242,400 | 1,457,100 | |||
Term deposits and short-term investments | 208,938 | 30,293 | 318,881 | |||
Prepayment and other current assets | 6,826 | 990 | 6,027 | |||
Total current assets | 2,030,744 | 294,430 | 1,877,495 | |||
Non-current assets: | ||||||
Investment in subsidiaries and VIE companies | 531,693 | 77,088 | 617,773 | |||
Long-term Investments | 7,418 | |||||
Total non-current assets | 531,693 | 77,088 | 625,191 | |||
Total assets | 2,562,437 | 371,518 | 2,502,686 | |||
Liabilities | ||||||
Amounts due to VIE companies | 39,786 | 5,768 | 35,529 | |||
Amounts due to Group companies | 23,722 | 3,439 | 20,068 | |||
Accrued expenses and other current liabilities | 1,004 | 148 | 900 | |||
Total liabilities | 64,512 | 9,355 | 56,497 | |||
Shareholders' (deficit)/equity: | ||||||
Treasury stock | (232,835) | (33,758) | (217,712) | |||
Additional paid-in capital | 3,043,971 | 441,334 | 2,999,562 | |||
Statutory reserves | 29,027 | 4,209 | 20,331 | |||
Accumulated deficit | (346,618) | (50,255) | (272,368) | |||
Accumulated other comprehensive income | 4,107 | 595 | (83,891) | |||
Total So-Young International Inc. shareholders' equity | 2,497,925 | 362,163 | 2,446,189 | |||
Total liabilities and shareholders' equity | 2,562,437 | 371,518 | 2,502,686 | |||
Class A Ordinary Shares | ||||||
Shareholders' (deficit)/equity: | ||||||
Ordinary shares | 236 | 33 | 230 | |||
Class A Ordinary Shares | Parent company | ||||||
Shareholders' (deficit)/equity: | ||||||
Ordinary shares | 236 | 33 | 230 | |||
Class B Ordinary shares | ||||||
Shareholders' (deficit)/equity: | ||||||
Ordinary shares | 37 | 5 | 37 | |||
Class B Ordinary shares | Parent company | ||||||
Shareholders' (deficit)/equity: | ||||||
Ordinary shares | ¥ 37 | $ 5 | ¥ 37 |
Additional Information-Parent_4
Additional Information-Parent Company Only Condensed Financial Information balance sheet - Parenthetical (Details) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 | May 31, 2019 |
Condensed balance sheets of So-Young International Inc. | |||
Ordinary shares authorized (in shares) | 850,000,000 | 850,000,000 | |
Class A Ordinary Shares | |||
Condensed balance sheets of So-Young International Inc. | |||
Ordinary shares par value (in dollars per share) | $ 0.0005 | $ 0.0005 | $ 0.0005 |
Ordinary shares authorized (in shares) | 750,000,000 | 750,000,000 | 750,000,000 |
Ordinary shares, issued (in shares) | 73,065,987 | 71,736,059 | |
Ordinary shares, outstanding (in shares) | 68,843,320 | 69,092,367 | |
Class B Ordinary shares | |||
Condensed balance sheets of So-Young International Inc. | |||
Ordinary shares par value (in dollars per share) | $ 0.0005 | $ 0.0005 | $ 0.0005 |
Ordinary shares authorized (in shares) | 20,000,000 | 20,000,000 | 20,000,000 |
Ordinary shares, issued (in shares) | 12,000,000 | 12,000,000 | |
Ordinary shares, outstanding (in shares) | 12,000,000 | 12,000,000 | |
Ordinary shares | Class A Ordinary Shares | |||
Condensed balance sheets of So-Young International Inc. | |||
Ordinary shares par value (in dollars per share) | $ 0.0005 | $ 0.0005 | |
Ordinary shares authorized (in shares) | 750,000,000 | 750,000,000 | |
Ordinary shares, issued (in shares) | 73,065,987 | 71,736,059 | |
Ordinary shares, outstanding (in shares) | 68,843,320 | 69,092,367 | |
Ordinary shares | Class B Ordinary shares | |||
Condensed balance sheets of So-Young International Inc. | |||
Ordinary shares par value (in dollars per share) | $ 0.0005 | $ 0.0005 | |
Ordinary shares authorized (in shares) | 20,000,000 | 20,000,000 | |
Ordinary shares, issued (in shares) | 12,000,000 | 12,000,000 | |
Ordinary shares, outstanding (in shares) | 12,000,000 | 12,000,000 |
Additional Information-Parent_5
Additional Information-Parent Company Only Condensed Financial Information statement of comprehensive income (loss) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Operating expenses: | ||||
General and administrative expenses | ¥ 260,208 | $ 37,727 | ¥ 252,214 | ¥ 183,987 |
(Loss)/income from operations | (102,805) | (14,906) | (32,570) | (56,694) |
Net earnings/(loss) attributable to So-Young International Inc. | (65,554) | (8,371) | 5,807 | |
Net income/(loss) attributable to So-Young International Inc. | (65,554) | (9,504) | (8,371) | 5,807 |
Other comprehensive income/(loss): | ||||
Foreign currency translation adjustment | (87,998) | (12,759) | 31,399 | 144,225 |
Parent company | ||||
Operating expenses: | ||||
General and administrative expenses | (9,659) | (1,400) | (9,556) | (7,574) |
(Loss)/income from operations | (9,659) | (1,400) | (9,556) | (7,574) |
Share of profit/(loss) of subsidiaries and VIE | (55,104) | (7,989) | (1,412) | 763 |
Income from non-operations | (791) | (115) | 2,597 | 12,618 |
Net income/(loss) attributable to So-Young International Inc. | (65,554) | (9,504) | (8,371) | 5,807 |
Other comprehensive income/(loss): | ||||
Foreign currency translation adjustment | 87,998 | 12,759 | (31,399) | (144,225) |
Comprehensive (loss)/income attributable to ordinary shareholders of the Company | ¥ 22,444 | $ 3,255 | ¥ (39,770) | ¥ (138,418) |
Additional Information-Parent_6
Additional Information-Parent Company Only Condensed Financial Information Statement of cash flows (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Cash flows from operating activities: | ||||
Net cash provided by/(used in) operating activities | ¥ (112,873) | $ (16,365) | ¥ 84,287 | ¥ 179,180 |
Cash flows from investing activities: | ||||
Net cash used in investing activities | (572,212) | (82,963) | 339,822 | 123,845 |
Cash flows from financing activities: | ||||
Net cash provided by/(used in) financing activities | (13,586) | (1,970) | (216,743) | (5,804) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 55,862 | 8,099 | (9,242) | (52,721) |
Net increase/(decrease) in cash and cash equivalents | (642,809) | (93,199) | 198,124 | 244,500 |
Cash and cash equivalents at beginning of year | 1,331,968 | 1,127,055 | ||
Cash and cash equivalents at end of year | 694,420 | 100,681 | 1,331,968 | 1,127,055 |
Parent company | ||||
Cash flows from operating activities: | ||||
Net cash provided by/(used in) operating activities | (54,390) | (7,886) | 12,117 | 43,212 |
Cash flows from investing activities: | ||||
Purchase of short-term investments | (201,348) | (29,193) | (610,841) | (402,913) |
Proceeds from maturities of short-term investments | 318,785 | 46,219 | 549,344 | 808,562 |
Loans to Group companies | (82,766) | (12,000) | (446,270) | (823,116) |
Repayments from Group companies | 41,383 | 6,000 | 764,712 | 365,401 |
Other investing activities with external parties | (8,266) | |||
Net cash used in investing activities | 76,054 | 11,026 | 256,945 | (60,332) |
Cash flows from financing activities: | ||||
Net cash provided by/(used in) financing activities | (14,247) | (2,065) | (216,743) | 696 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 79,877 | 11,581 | (2,813) | (51,506) |
Net increase/(decrease) in cash and cash equivalents | 87,294 | 12,656 | 49,506 | (67,930) |
Cash and cash equivalents at beginning of year | 55,806 | 8,091 | 6,300 | 74,230 |
Cash and cash equivalents at end of year | ¥ 143,100 | $ 20,747 | ¥ 55,806 | ¥ 6,300 |
Subsequent Events (Details)
Subsequent Events (Details) $ / shares in Units, ¥ in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | |||||||
Mar. 31, 2023 USD ($) $ / shares | Mar. 31, 2023 CNY (¥) | Jan. 31, 2023 USD ($) shares | Jan. 31, 2023 CNY (¥) shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2022 CNY (¥) shares | Dec. 31, 2021 USD ($) $ / shares shares | Dec. 31, 2021 CNY (¥) shares | Dec. 31, 2020 $ / shares | |
Subsequent Events | |||||||||
Exercise price | $ / shares | $ 0.1 | $ 0.1 | $ 0.1 | ||||||
Common Class A [member] | |||||||||
Subsequent Events | |||||||||
Number of shares repurchased | 1,578,975 | 1,578,975 | 2,643,692 | 2,643,692 | |||||
Value of shares repurchased | $ 2.2 | ¥ 15.1 | $ 34 | ¥ 217.7 | |||||
ADS | |||||||||
Subsequent Events | |||||||||
Number of shares repurchased | 2,052,667 | 2,052,667 | 3,436,800 | 3,436,800 | |||||
ADS | Share Repurchase Program | |||||||||
Subsequent Events | |||||||||
Number of shares repurchased | 7,400,000 | 7,400,000 | |||||||
Subsequent event | |||||||||
Subsequent Events | |||||||||
Exercise price | $ / shares | $ 0.01 | ||||||||
Subsequent event | Minimum | |||||||||
Subsequent Events | |||||||||
Number of shares authorized to issue | 15,000,000 | 15,000,000 | |||||||
Subsequent event | Maximum | |||||||||
Subsequent Events | |||||||||
Number of shares authorized to issue | 25,000,000 | 25,000,000 | |||||||
Subsequent event | Leya | |||||||||
Subsequent Events | |||||||||
Consideration on disposal | $ 0.8 | ¥ 5.7 | |||||||
Subsequent event | Share Repurchase Program | |||||||||
Subsequent Events | |||||||||
Number of shares repurchased | 5,700,000 | 5,700,000 | |||||||
Value of shares repurchased | $ 15.2 | ¥ 104.9 | |||||||
Second Amended 2021 Share Plan | Subsequent event | |||||||||
Subsequent Events | |||||||||
Exercise price | $ / shares | $ 0.1 |