Q1 2021 So-Young International Inc Earnings Call
[music].
Good morning, ladies and gents.
And thank you for standard.
Life.
2021 and earnings conference call.
At this time.
And listen only mode. After the managed.
Mr.
There will be a question and answer session.
As a reminder, and today's conference call is being recorded.
And I like the to the meeting or would the host for today's call Ms. Vivian Xu Police force.
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Okay.
Yeah.
And thank you for joining our first quarter 2021 of them.
Please note that as of December.
Will contain forward of continues.
On the debt provision saw from less private securities and the.
The litigation Reform Act of 90 and 95.
Forward looking statements are subject to risks and uncertainties that may cause the actual results to differ materially.
From our current expectations.
The actual risks and uncertainties include but are not limited to those online and our public filings with SEC.
Including our annual report on form 20-F, so we haven't does not undertake any obligation to update any forward looking statement, except as required under applicable law.
Joining us today on our call.
In June our co chairman.
Chairman and CEO and the Mr. Ming Yang our CFO.
At this time I would like to turn the call over to Mr. Xing Jin cash please.
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Thank you for joining us.
The appointment of Hawaii.
We are very pleased to kick start the year with solid results for the first quarter of this year with revenue of RMB 360 minutes, almost RMB 630 million above the top of our guidance.
And up 97% from the first quarter of 2020.
Average mobile and they use 183 9 million at 1 point at 101% year over year.
And the number of pay and media service providers on our platform was 4702 up 43% from the first quarter of 2020.
The industry continues and is it recover during the current.
And we have seen increasing the level of interest from our end users as well as an increase of interactive activity of our platform.
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During the quarter, we continued to execute on our strategy to increase conversion and retention of rates, while further expanding our network of high quality medical service providers.
On the use of fund, we always make it a top of our I T to ensure the reliability and the profession and that is of our community and all.
All the to increase and do their trust and the user engagement.
We reinforced and of depreciated, our unique value proposition by working to improve user engagement and retention.
Providing better user experience and and by reinforcing the quality content that drives efficiency and decision making.
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In terms of our immediate from scratch.
The strategy first we are reinforcing the authenticity of our community in terms of net medical nature. Besides verifying the quantification of institutions and doctors. We have also made improvements to our verification procedures per user reviews of treatment and so on our platform.
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Second we continue to improve user experience and strengthen our digital capabilities.
The ROE deepening cooperation with existing institutional partners, and and forming relationships with new ones. We are able to offer a wide range of.
Aesthetic and high quality products to end users.
Our robust.
Technology, and the intelligent algorithms analyze the user behavior to make fast and accurate of recommendations and how the decision making online.
While both surgical and nonsurgical procedures.
In the meantime, our professional pre sales consolidation and upsell service improve user experience from online to offline due to the guarantees on our platform and our ecosystem. So we are and it's not just the playing the role of transaction facilitator between user and and institutions. We are also building a closed loop system.
That connects all stakeholders, including users consultancy medical put that the manufacturers doctors and institutions maximizing benefits to each of them.
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Third we are improving the user acquisition efficiency from Israel and exposure and marketing Inc.
Earlier this year, we partnered with George on TV, and this new era of scatter show and Hunan TV and the variety show called the journey of Love. These and then it became hot topics among users and the elevated at the sodium brand profile and Meanwhile, we created original short video programs, which were broadcaster and new media channels, bringing.
Target users to our platform.
And the result, we witnessed consistent improvement of the use of activities in terms of time spending interaction consolidation and bookings, which led to optimizing the structure of our user base.
During the Spring Festival in March 2021 daily average of <unk> for treatment and body shaping categories grew by 25% of compared with the results of double 11 last year.
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Telephone show growth.
Moving onto a multi day the monetization since the beginning of the year. We have been pleased to see that the whole industry has gradually returned to a normal and healthy growth track institution have upped up more performance based and marketing strategy to acquire users shifting their focus from quantity to better quality of customers.
Our previous investment and cardiovascular and our social community and the branding has paid of under these circumstances.
Cost of the of growing trust in the OEM platform more users made the purchase decision based on our recommendations and and our system in the endorsement.
1 Great example was sui and passed since it was launched in Q4 last year over the past 6 months the number of selected products and so we and pass program have increased from 7%, 37% and and now cover 95 institutions and 11 cities.
So we and passenger dentation of users and it became very popular institutions will also impressed with this performance in terms of attracting and users.
So the whole women's young tissue user of low loan to pay the whole bunch of algo future Garda and the cohort.
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<unk> been sort of rates.
2 of or Tivo wholeheartedly.
Going forward, we will fight and the whole process of distribution aiming to allocate the quantity and the compatible traffic to customers with stronger the Mount performance and greater market potential. We will also further and improve user acquisition efficiency, while focusing on increasing user retention.
Content consumption and the monetization efficiency.
Chime in and unions yourself and due to the Taiwanese Hong Kong the whole John cash is joy of Huntsville.
And then in Burlington.
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Thanks, Ken please be reminded that all amounts quoted here will be RMB.
Please also refer to our earnings release for detailed information of our comparative financial performance on a year over year basis for the <unk>.
First of quarter of 2021, total revenues were $160 million of 97% year over year.
From $182 6 minute and of significantly above our guidance as mentioned the increase was primarily due to and increasing the number of pay and medical service providers. The number of paying medical service providers of Silicones platform were 400 thousands of the.
2 the increase of 42, 7% from 3295 and the first quarter of 2020 within total revenues the inflammation and service revenues were RMB 277, 8 million up 1% and 25% year over year from RMB $126 million.
The increase was mainly due to increasing average revenue per pay and medical service provider Reservation services revenues were RMB 81, 8 million an increase of 44, 7% from RMB $56 5 million and the fifth quarter of 2020.
The increase was primarily due to the increase of 123, 3% in the <unk>.
Number of purchasing users.
Cost of the revenues were RMB $52 4 million up 21, 5% year over year from RMB $43 1 million cost of revenues included share based compensation expenses of RMB, $4 3 million compared to RMB $2 2 million and the first quarter of 2020.
Total operating expenses were RMB 300 360.
$67 3 million up 97, 6% from RMB 186.
Mainly in the face of quarter of 2020.
Sales and marketing expenses were RMB $242 4 million of 1 of 22, 1% from RMB $109 1 million year ago.
Primarily due to increases in the expenses associated with marketing and the use of acquisition activities, especially.
And especially branding expenses.
Sales and the marketing expenses, including share based compensation expenses of RMB, 2 3 million compared with RMB zero point $7 million and the corresponding period of 2020.
G&A expenses were RMB $55 2 million up 62, 5% from RMB $34 million a year ago.
Primarily due to increase and payroll costs associated with the expansion and the number of and administrative employees G&A expenses included share based compensation expenses of RMB, 7 2 million compared with RMB $8 3 million in the corresponding period of 2020.
Research and development expenses were RMB 70 million up 63%. The increase was primarily attributable to increase and payroll costs.
The research and development expenses for the first of quarter of 2021 included share based compensation expenses of $5 1 million compared with RMB 3 million and the corresponding period of 2020.
The income tax benefit was RMB $4 3 million compared with RMB 4 3 million net in the first quarter of 2020.
The net loss was RMB 46, 3 million compared with a net loss of RMB.
$36 million and the same period of 2020 non-GAAP net loss was RMB 27 from.
Compared with the non-GAAP net loss of RMB 21, 6 many of the same period of 2020 basic and diluted loss per ads attributable to ordinary shareholders were RMB zero point of 42.
And <unk> zone.
42, respectively compared with.
On the zero point of 34, and a and B zero point of 34, respectively. During the first quarter of 2020.
Now for the balance sheet.
As of March of 'twenty, 1 2020, 1 we had total cash and cash equivalents restricted.
The restricted cash and term deposits term deposits and the short term investments of RMB, 2 6 billion compared with the $2 7 billion.
December 31 and 2020.
For the second quarter of 2021, so the only expect total revenue to be between on the 413 billion and RMB $450 million.
Representing a 31% to 37, 1% increase from the same period of 2020 the.
Above overlook is based on the current market conditions and the reflects the company's preliminary estimates of market operating conditions and the customer demand.
This concludes our prepared remarks, I will now turn the call to the operator and open the call for Q&A.
Operator, we are ready to take questions.
Thank you.
And as a reminder to ask a question you will need the first part 1 of the telephone and withdraw your question is the fastest.
Please standby.
And.
And if you're asking the question in Chinese.
And England.
Good day.
1 question is allowed to ask 1 question at a time, if you want to ask more than 1 question. Please join the queue again.
Once again of the Taiwan.
Yes.
First question comes from the line of Thomas Chong of Jefferies. Your line is open.
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Sure.
The man.
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And the Jacob.
Thank you.
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Okay, I will be answering these questions.
Oh, we use our growth strategy and 2021 won't change compared to.
2020, we hope we will still be focused on expanding our user base and the.
The increase our penetration in terms of Oh, we're talking of the user base.
For the for the last part of your question and as you said whats your Miu Miu.
<unk> target and the guidance and I think although we we never provided that guidance in the in the previous quarters, but we still see positive increase and Inc.
In terms of our Mou for the first quarter of average Mou is around the like a 8 million $8 4 million and of going forward, we expect our.
Mou at the end of the yes, the will have seen around the 40% of growth that's our target.
And.
For what's our strategy and the Uh huh.
How are we going to.
Spend our sales and marketing budget.
And then you can see and the first quarter of our AR in the first of quarter result.
Did have a.
Bigger or larger than normal of previous quarters, because of spending in sales and marketing excluding those payrolls.
And we.
Have a run of the 192 million on the.
And on the customer acquisition within that are we.
Half of runs of 100 and the 2.
And have been focused on the branding, which we associated with the the television shows as mentioned earlier in the in the previous coats and we also for in terms of promoting our Slim Festival in March we did spend a.
The large campaign offline with focus media. So that's the extra expanding compare to the first quarter of last year same period of last year and even more of the fourth quarter of 2020.
In terms of 2020, our fourth.
<unk> fourth quarter of 2020, we spent around.
And half of that for branding expenditure so of but if that means we count on.
And all we will spans more than usual or budget of our budget is much more than our previous years for sales and marketing or customer acquisition and the answer is no because we have very strict.
The.
Budgeting policy for sales and marketing is around the customer acquisition and our budget is around like 40% of total revenue.
That's the.
That's the general rule in the previous years and the although we spent more in terms of branding and the first of quarter, but going forward.
We have we have already planned to our branding expenditure for second quarter fourth growth third quarter, and the fourth quarter and mainly as you can see and the previous 2 of <unk>.
And 2019, we would we will have more spending in branding force third quarter every year, but relatively low in terms of the second quarter in the fourth quarter.
The fourth this year.
We just the half.
Early spending for 2 of dedicated promotion.
Our March.
The Slim festival and the that's the case and the going forward, we will still.
And to spend half of our.
Budgeting cost of sales and marketing and branding and half of that half of that.
Traffic acquisition.
And the.
And it won't have like the consistent large amounts of the sales.
Sales and marketing spending like first of quarter of this year, which is more than 60% for the next few quarters. It will come down to the normal level.
That's the.
That's a net 4 budget side on the expense.
And the for the day do.
Do we have any focus on like customer conversion and the what's the monetization strategy and the going forward for the allies of our traffic acquisition.
And for that part of the question that we think in the.
Interest in 'twenty.
We did see a large growth of.
And Mou, but we also suffered by the COVID-19 impact and we see the conversion is relatively low compared to previous years. So it is.
The efficiency of look slower than previous years, but no.
We do see the the recovering trend and the conversion and the.
The the conversion trend for our paying customers.
Our closing or coming back to the regular level.
We will we will be very positive for the cider as well and the seeing consistent customer conversion improvements and as the next few quarters.
That's my answer.
Thank you.
Our next question comes from the line of V O Jan of Deutsche Bank.
And is open. Please go ahead.
Thank you, John and John maybe on Wednesday and countries.
He went well and they wouldn't T shirts, and shoes and quantifiable and thinking.
And Chico downsizing and pull from the channel.
And as soon as the Amanda.
Great.
And she's going to rejoin BVA and thanks for taking my question and.
And my question is bad and why does the proportion of marketing expense and the trend for institutional.
Which span and so you're on the platform.
The demand and the debris okay. Thank you.
Okay.
And you deserve.
The voluntary and you go off and started with the bulk of that.
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Day, Fujian Hi, son.
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And I'm kind of outside of saying you may 14, and how does it offer of a harsh is that because you're of course or not.
And that's always Xi'an, Shanghai, the Chico with 1 of our economy.
When we kind of come and go to Chico cohort enrollments and the chalk.
Each of the order flow for it as you go through with Homebase Zone zone patterns of the.
The dollar's potential filing of our job.
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<unk> and whole functions as you do high software bouts of the ships.
She was telling me but.
Okay, and so first according to Frost and Sullivan and report the takeoff of online Kosmos acquisition spending by and medical aesthetics service industry in China was about 20% in the past 5 years.
The percentage of total customer acquisition spending and all online medical aesthetic service platform has continued to increase.
And that's 1 2% in 2015% to 13% in 19th the.
The the market share of the online platform is continuously expanding and.
And then secondly in terms of the number of institution of at our platform.
We have formed the partnership with more institutions in the first quarter, we can see that the number of paying medical service providers on our platform was.
More than 40%.
And.
Debt to the number of more than.
4700, thanks to our target user base and our strong brand recognition among users.
And our.
Lastly, we think that we use improvement in institutions operations capabilities.
And see that today of spending behavior is also growing and mature as they tend to customer acquisition channels with batch of our wide performance.
In order to reduce overall customer acquisition cost and dose.
Institution, and I'll also testing new ways to improving there.
New ways to to to put their allocation of marketing also improving their own capabilities, we believe that as long as our performance is.
Super Super.
He is better than the than the peers in the market our contribution and.
And 2 of the that our contribution of value in the industry is increasing and institution way of maintain depth prefer and so far so we are and when they allocating the ad spendings.
Thank you.
Thank you.
Thank you.
Next question is from shaky of Ci.
Please go ahead.
And so Glen and tons of coverage of that I hope.
The genco.
The majority of the downtown Chicago.
And thank you.
And Oh.
Good day, the Cambria corridor.
That sounds cool.
And then Glen and told me and I want the diet Ghansham the ownership of yourself with the share based off.
And you guys just did a lot of times consumer Thanks management for taking my question Ah I noticed that can be and have recently signed a cooperation and contract with bloom and aged AR biology. So could you provide more detail, it's a direction for future cooperation.
The upstream manufacturer or the.
The suppliers thank.
Thank you.
Hum.
The go through real life, where people don't judge hungers horizontal growth, so sanyo to embark on the 1 quarter versus.
So all of it yet.
Tricia will inside of really a hall and Chicago So the change.
2 of bones and hunting the you're the.
China and salary of quotation.
Xiang Jiang of China, and just suffice your so called Sundance, Utah Sunday of Juice, who are you guys sort of.
But I also want to issue a vestige of a realignment of course.
And some of them on the loyalty.
The line I see on gentleman and salary once you sort of watch for the Coke Omni channel units you go to and some of you heard a whole lot.
So I hope has honey and fire since hunting and patients of <unk>.
And with the tissue.
Li Xiang and jewelry and watches over the point of all sorts of issues.
The 2 hard to do.
And so this is giovanni here.
So we're going to the other European tire.
Gosh, all day and save the heartbeat.
What are the tissue following hernia the denali.
And.
And going forward, we will continue to strengthen cooperation with medical product manufacturers to have better control of our user experience and.
And so let me and elaborate why and then do we just the cap rate, we just debt and MTA inclusive of comprehensive strategic cooperation agreement.
Our book and vital.
Scheme booster of products.
And if you see the according to the agreement we will of partnership a partner with roommates and help the <unk>.
And <unk> strategic initiatives, 1 is hydronic asset program and 1 is creating the future medical aesthetics Alliance.
And we think that we will become the strategic partner.
And to help them, each and manager of medical and aesthetic service providers.
And also we think that and instead of a waste we will provide comprehensive support like in like.
Including our product R&D and the new product training.
And in addition, we have also developed the a package of solution voice hyaluronic acid program.
And so at the largest medical aesthetics platform and China, well, So we will maintain our leadership in the industry and enable efficient the connection between consumers and the business.
Thank you.
Next question is from the line of Vincent Yu of Needham and company.
Go ahead.
For the heated length and frequently the Homewood Dominion and <unk> and introduced the hemoglobin <unk>.
And during the whole 2.
The anti dollar to the shelf, we drilled 1 launching <unk> GT, the allegation and I will mention debt.
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The Ergo and you should 1 of the mix of crop.
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The woman.
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And we'll find out.
The management, Thanks for taking my question.
Questions. The first question is the medical is about the the trend on the 2 categories of the.
The growth.
From market or the medical type of mortgage has been exiting the beginning of the year.
The significant growth.
You mentioned also mentioned the strong demand on the consumer side can you share more details about the trend for surgical and nonsurgical treatments.
GAAP can be and how do we gain.
Competitive edge and the like.
And so that category and the food of surgical treatment and we returned to.
And stake compared to the the.
2020, and then my second question is about the Trillium past COVID-19.
And this will give us more color on sort of impacts how much revenue contribution can we expect to see and how much.
And so many target cities, we are planning to enter this year. Thank you.
Yeah.
Uh huh.
And Tricia you Miss as Hangzhou, and hits Ige of Homelink, and home and kind of who the south of your opportunity, though the touch on now.
Each of the owner of Xi'an Shanghai the year for the dollar to book in your environment. There's a lot choosier about share told me about the lead by the you saw the business at home.
Total women Condor tool and there was healthy on the corner and side.
And so on Sunday, and Yeah, John and nuts.
And <unk> hung, Egypt, and Shanghai Tang and so you cohesion of hurdle coaching and coaching and you do it because they don't use and even from here.
Turning to deflation and kind of now and what kind of social editing and done outside of it.
Certainly and I know, you're doing with all of that each of which and the shipyard and readership hotmail.
Cumulatively of initiation.
First of all of that didn't that Nigel of tissue boxes, changing the you could sort of gone this at home.
And I took the genius I open the social channel.
Tobey this is a sort of sawmill and later to the Samsung and.
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Jim the opinions.
And although there are about the little shy of yourself magic.
So of Q4 of my own Colorado's hanging too with the amount of Adobe Delaware law.
And the whole of me and kind of nuts and influences some of the EMA its high level of Hood. She has her zone.
And also that you called those out of it so that the age of the official its something thats on the warmer.
So you don't even know clarifies and itself and it's a bunches of Hanmi open posture and.
12, and the larger who of Pinkwater's share for the and aerial notch I'll walk of fortune.
I was hoping you do surveys of the opponents of honor to narrow and then John says you're far away from Manhattan, sorry of new so true home and layoffs.
<unk> posted its own challenges the salary of I'll jump in Shanghai.
For the children.
First and the the matter of aesthetic market as a whole is on the housing recover we see that the users of witness 2 approaches and the interest of keeping increasing so and if you see the danbury that during the first quarter and our platform reached 8 4 mid Eaton and the May.
And I'm very good rate of the.
Well. So our addition to the content of consumption our use of average time.
Time spent and the interaction with institutions and doctors, both increased significantly year over year.
And your question is on the on the surgical booking we could see that as the cyclical booking a graduate of recovery and the number of reservation has returned to the level before the epidemic and.
And yet the total GMB is.
Still a bit behind of that.
Non surgical bookings cash.
The strong momentum, we can see that the doing the ethylene basketball and the March and daily average <unk> for injection.
<unk> treatment increased by 62% and compare with the double 11 and last year and so we still see that like the injection of skincare and the anti aging remain amongst the popular treatments to users.
Our capital.
And we could see that the competition amount non surgical secretary of is intensified this year for both upstream and 2 upstream manufacturers 2 of the downstream institution Inc.
Contrast, the consumer side, count 40, and us stand and evaluate the service.
Those surveys like the effect and of the risk.
And that aiming to solve pain points of consumers. This year, we will continue to leverage the age of our platform and content and the community construction and also enhanced consumer protection and the optimized user experience on our platform.
Oh, sorry achievement of pharma and biotech.
And so I'll shoot and show them the detail all of these are true.
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The chart Chomsky and kind of cohorts agenda share.
The bulk of Josh Kyoto Guangxi and our.
Bulk whole lifestyle of woman, the timeliness, which of course zone Chung from it.
The assumption that Delta and what how is the GT the Honeywell.
The financial adviser and so forth, so hot buttons and sheet sorry, its own discharged home with pharma and our Mr. Johnson on a scale of the shutdown and so it sounds like on the lease.
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Let's see or the submitted to St. George Holmes and some of those homes of millions.
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And then too.
And yeah we.
The first of all of 2 Inc.
Proof of the online user experience and.
And for products of the units and enhanced use of trust on our platform.
We do at the entry way 1 is of cost increase and the total SKU of supply and we also secondly, we also refining our product library and has.
And the standardization and improved the description of surveys and Skus.
And so and we refined payment and of the salaries warranty systems.
2 of protected the whole user experience.
And so you can see that we separated our.
Non surgical treatment and.
First of all of its fall of those low and product line, we reinforced our leadership position in both number of Skus and pricing system as well as the.
The regional and also the kind of categories coverage for the mid to the high end product line. We we are we could see that today. So we are past our widely recognized and.
And by our users and we successfully and.
And to improve the performance of promise to contract terms.
The which could of focusing to acquire those mid to high end customers group and.
And a.
Second sorry, and then later, we enhanced cooperation with upstream manufacturers of our metrics up so we our ambassador program.
And <unk> and the new media content. It is in the effort to increase content supply and the user engagement for now surgical treatments.
Laughter day.
And that customer recognition of our expertise and knowledge of call. It sure sounds like the shopping events are some shopping and then like at the anti aging Festival and the scheme festival as well as market of campaigns.
Okay.
And so thank you.
So in San Jose and Tommy.
The agenda.
My second the zone.
Young to the soon.
So the chain and if I may and the <unk>.
Saturday of the REO put you walk through each of those Honeywell and she wishes and the hard side.
So the year with downloads.
No. It's just the 2 I was just hoping some of the Chi which is under the AMOUR now day, even though interest as I showed him from it.
Condo quality, and Ctrip and devotion and wait for the whole of choose your washer and just the time Omega and shop.
First of all is how many of the building of California, and Oregon tissue dosage and large holding our essentially the pinch on the go of course that will drive Zheng Cheng from Jennifer Chao of 1 so first of all of it really does having the building and haven't told me what.
Thiago from society of from it.
And she said or mentioned that 18 of the higher face amount either of them and I'm kind of.
And they took our time here and that hopefully.
Hi yourself the famous the cards have been the possibility of something.
How about the Universal LNG. So you saw the impact of revenue at Yahoo feeds out of all of that.
The sum total motor Formula <unk> dual force.
Uncle, Matt.
And Youll put here from your non cigarette if all of them on the hydro true to a simple, but that's all John linker and the shape of the opinion how to most of you got to the other you go.
Yeah sure physical format.
And I'll show you 1 side.
And how you see the 1 woman and she said Domingo from them.
So it'd be the unknown shoes home and curious if in terms of the kinds of U.
So if regardless of yogurt and that's what our Chico and that shows how volatile future.
The orange out from choice out of just a thought so far beyond just sort of a more channel and the dealer service from the highest 1 right now and the protein legalizing limits and how you will find.
The AMA bunch of at the time and the <unk> has had many of our garden.
Referring to your question about the so im pass them since the launch last October So and pass program and has now expanded it to 11 cities with more than 19 institution partners.
In terms of the product selection, we regularly how she then to select products for our soda and pass program.
And com consistently optimize all of our escalators.
And especially for the announced edge of corporate debt. The standardization, we have expanded our standardized category to 30, plus so this allow us to a flattish standard eye centers and discretion and transparency in the non surgical scepter.
Meanwhile, in terms of the order fulfillment, we saw the complaint rates for the products and the Sui and pass program largely below.
And those on our main main apps.
And the reservation products.
And the.
Revenue level.
Since the <unk> and Paas have now scaled up yet and it did not contribute a meaningful revenue.
And.
We we and at this moment and we still give the subsidiary to our end users.
So we did not.
Separate and different the line 4 disclose more detail number and the revenue and level off and pass but we.
And already saying that is the total take rate for the so we unpack program was higher than other products.
Thank you.
Thank you.
Thank you.
Ladies and gentlemen, this concludes.
The conference call. Thank you for participating you may now.
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Good morning, ladies and gentlemen, and thank you for standard life was so young from Jefferies.
And in 2021 earnings conference call.
And at this time.
Each of pets and listen only mode of the demand.
Mr.
A question and answer session.
Today's conference call is being recorded.
And I would like to turn the meeting over the the host for today's call and Mississippi the issue.
Okay.
Yes.
Okay.
And for joining our first quarter of 2021.
Please note that as of today.
And they will contain forward looking statements.
And again.
The provision income from the private securities and the.
The litigation Reform Act of 90 and 95.
Forward looking statements are subject to risks and uncertainties that may cause the actual results to differ materially from our current expectations.
Potential risks and uncertainties include but are not limited at 2 of those online and our public filings with SEC.
Including our annual report on form 20-F.
And does not undertake any obligation to update any forward looking statement, except as required under applicable law.
Joining us today on the call.
Changing our co.
Chairman and CEO and the Mr. Ming Yang our CFO.
At this time I would like to turn the call of our 2 mutation gene Cassis.
And I hear that.
And Josh you already of our Union D. G to tie both of them are we.
Harley and the EG, the well naive and gender.
And so low the Sunday of Lilly's and indeed.
So go ahead of TCA assumption essentially that.
Some of you Julien.
Afternoon.
You don't want to drink and Mayo, the buybacks scented jewel and Tony.
<unk> zone passenger ebay, Inc.
She option and hard to fulfill the chico's showed us the chance the value arent job.
The <unk> pathogens.
Each of the email from yeah. So.
The issue for sure.
<unk> I'm sure and horizontal soon true could jojo.
The interest and Hugo.
Thank you all for joining us.
Okay.
We are very pleased to kick start the year with solid results for the first quarter of this year with value of RMB 360 minutes, almost RMB 30 million above the top of our guidance.
And up 97% from the first quarter of 2020.
Average mobile M. A use of 183 9 million up 1 point at 101% year over year and.
And the number of paid media service providers on our platform was 4702.
At 43% from the first quarter of 2020 the.
The industry continues.
And the poverty.
We have seen increasing the level of interest.
And from our end users as well as an increase of interactive activity.
All of our platform.
Usually the hormone and tissue to hear and see the untold.
So the Ritchie of ultra of Hollywood Hollywood salute posted the achievable quit on P&I flow Guy the builds.
You know to go long haul.
And what we're doing for them as well.
And this is only about 7 channel horses and to volume.
Sandy it's July the Sarnia sort of cheap choice or the automobile.
And then we will do and Shanghai and she knows how you Honda and Toyota of transition zone.
Total of Chicken go harder you won't yet.
And the judge on the old scenario, and that's yeah, and so I towards and Chico charge you took.
During the quarter, we continued to execute on our strategy to increase conversion and retention rates, while further expanding our network of high quality medical service providers.
And the use of found we always think of the top variety to ensure the reliability and the profession notice of our community and.
All of the to increase their trust and the user engagement.
We reinforced and the depreciated our unique value proposition by working to improve the user engagement and retention.
The providing better user experience and the by reinforcing the quality content that drives efficiency and decision making.
And all of them and there are some cheese failure. So share. So you know through some of the associated phenotype, where men and Joshua onto the new ounces of shown about coal.
And what do you go and you saw that.
As of right.
And so a sellout yoko opinions out of zone.
T true sorry, sort of assumption and some Linda force horse shoes out here.
In terms of our immediate.
Strategy first we are reinforcing the authenticity of our community in terms of net medical nature. Besides verifying the quantification of institutions and doctors. We have also made improvements to our verification procedures for use of reviews of cream and sold on our platform.
Moving fake reviews.
She will then put onto the <unk> charge and tune High school, Japan the leap.
Congo of Johnson, <unk> shale Chico cohort of good hope.
Goldcorp and find the Chico's Shelley holds true.
And then Sundar you won't go into the <unk>.
The old Houghton the EMEA for time, Inc. Tony Hawk Ocado of tissue.
And I was trying to finish the year Hershey moving quite a short change of the show and yogurt region.
Sorry share for social Shaw of official sandwiches hooks post the Chinese the short transition UGG by the Sunday, So whole foods share of out Youll force home and share some thoughts shadow.
The ATM you 18th Hi, Paul Chung from Amit.
Sorry of woman that's somehow.
And then that's when we'll put out of Chico's and <unk>.
Our share I'll tell you view and zone, the Coco Lee someone's zone cohort Youll soon.
Some of it was decent.
Or do you go with the total dollar charges of 3 O T shirt.
Secondly, we continue to improve user experience and strengthen our digital capabilities.
The deepening cooperation with existing institutional partners, and and forming relationships with new ones. We are able to offer a wide range of.
And <unk> and high quality products to end users.
Our robust.
Technology, and the intelligent algorithms analyze the user behavior to make fast and activate the recommendations and how the decision making online.
For both surgical and nonsurgical procedures in.
In the meantime, our professional pre sales of consolidation and upsell service improve user experience from online to offline due to the guarantees all of our platform and.
All of the ecosystem. So it's not just of playing the role of cross section of facility data between user and and institutions. We are also building a closed loop system that the next all stakeholders, including users consultancy medical put that the manufacturers doctors and institutions and maximizing benefit.
As to each of them.
The oil and homework and type of loan crosses onto 1.
Total and Gulfport, causality, Hardy and arguing and true women Poland. So the all of this so that's sort.
Of the plenty of runway.
Tight schedule on average.
The joint programs as you know.
The women.
And Sheila cough and the hard tissue.
Towards the Alethia young from hydro and wind.
Of course.
And the also the estimated needle.
And then which was high at Sarnia prices.
And since you know the total.
And if you can kind of tie and I love conjuncture engine or the audience.
Well and then Youll see them here and has shown the rollout of who don't Susan.
And where it comes out for you.
The year ago, well done and Johan <unk>.
And you say, if and the social did you choose Chaucer and Xiaomi may Tee shirts, and later Xinjiang right some of them perhaps of the auction.
Third we are improving the user acquisition efficiency Prime minister of rent exposure and marketing.
And earlier this year, we partner with George on TV, and this new era of scatter show and Hunan TV and the variety show called the journey of love the.
And then it became hot topics among users and elevated the so young brand profile and Meanwhile, we created our original short video programs, which were broadcasting and new media channels, bringing tug of users to our platform.
And the result, we witnessed consistent improvement of the user activities in terms of time spending interaction consolidation and bookings, which led to optimizing the structure of our user base during.
During the Spring Festival in March 2021 Daily average AMB for treatment and body shaping categories grew by 25% of compared with the result of double 11 last year.
And from here.
Digital cash from a culture and of fashion show and so you may see some you'll share with the Dol Gen console and those roofing shingles.
And I adore tie to the.
Shovel, the home now and Belgium, the Tabasco and teach them how you have dual zone.
Once we go into the system.
Towards the Holdco mobile home.
So long gone toward our children and it could also now.
And so of course, you put on Peru, Chile, Chile the cohort.
<unk> towards the pathway, which would actually.
She was asking and I assure you and do the Johnsons corner.
The total Yahoo, Eli and hydrogen based suitcase and shortages hook.
Momentum and Chinas city to pursue the pseudomonas the consumption.
Sorry of course of delivery as well.
And she only it's of high Asia somewhat tongue and cheek turns out of our San Francisco.
True.
Sure, Josh Coates ICU and Sidoti.
And <unk>, which I'll show the claim.
You make you go the tone, but didn't go to landing.
The telephone.
Telephone and cell growth.
Moving onto a multitude of the monetization since the beginning of the year. We have been pleased to see that the whole industry has gradually returned to a normal and healthy growth track institution have upped up more performance based and marketing strategy to acquire users shifting their focus from quantity to batch of quality of customers.
Our previous investment and cultivating our social community and the branding has paid off under these circumstances.
Because of their growing the trust and this OEM platform more users and made a purchase decision based on our recommendations and the Ngos system in the endorsements.
1 Great example was sort of impasse since it was launched in Q4 last year over the past 6 months the number of selected products and so we and pass program have increased from 737, and and now cover 95 institutions and 11 cities.
And passengers adaptation of the users and it became very popular institutions will also impressed with this performance in terms of attracting and users.
The whole women's young tissue yields of low loan to pay the Provence Helga future Garda till the cohort.
And then John <unk>, who the ocean chosen and there was healthy 20 bps and rates on the.
Tivo Tivo wholeheartedly.
Going forward, we will fine tune the whole process of distribution aiming to allocate the quality and depth compatible traffic to customers with stronger the Mount performance and greater market potential.
Also for the improve user acquisition efficiency, while focusing on creating user mutation content consumption and the monetization efficiency.
So I'm at true unions yourself and you do the towers, along the whole zone cases joy of Huntsville.
And then in Burlington.
Got it.
Maybe and we'll open up the the QE.
Thanks, Kim please be reminded that all amounts quoted here with the RMB.
Please also refer to our earnings release for detailed information of our comparative financial performance on a year over year basis for the first quarter of 2021 total revenues were $160 million of 97% year over year.
From $182 6 minute and of significantly above our guidance as mentioned the increase was primarily due to and increasing the number of paying medical service providers. The number of paying medical service providers of Silicones platform were 400 thousands of the 2.
Increase of 42, 7% from 3295, and the fifth quarter of 2020 within total revenues the info.
The mission service revenues were RMB 277 point of $8 million up 1% and 25% year over year from RMB 126 million. The increase was mainly due to increasing average revenue per pay and medical service provider Reservation services revenues were RMB 81 8 million.
The increase of 44, 7% from RMB $56 5 million in the first quarter of 2020.
The increase was primarily due to the increase of 123, 3% and the number of purchasing users.
Cost of the revenues were RMB $52 4 million up 21, 5% year over year from on the $43 1 million cost of revenues included share based compensation expenses of on the $4 3 million compared to RMB, 2 2 million and the first quarter of 2020.
Total operating expenses were RMB 300, $367 3 million up 97, 6% from on the 186 million.
And the first quarter of 2020.
Sales and marketing expenses were RMB, $242 4 million up 1% and 22, 1% from RMB $109 1 million per year ago.
Primarily due to increasing in the expenses associated with marketing and the use of acquisition activities, especially.
Especially branding expenses.
Sales and the marketing expenses, including share based compensation expenses of RMB, 2 3 million compared with RMB zero point $7 million in the corresponding period of 2020.
G&A expenses were RMB $55 2 million up 62, 5 per cent from RMB $34 million a year ago.
Primarily due to an increase in payroll costs associated with the expansion and the number of and administrative employees G&A expenses included share based compensation expenses of RMB, 7 2 million compared with RMB, 8 3 million and the corresponding period of 2020.
Research and development expenses on the.
The $70 million up 63% the increase was primarily attributable to increased payroll costs.
Research and development expenses for the first of quarter of 2021 included share based compensation expenses of $5 1 million compared with RMB 3 million and the corresponding period of 2020.
The income tax benefit was RMB $4 3 million compared with RMB, 4 3 million and the first quarter of 2020.
Net loss was RMB 46, 3 million compared with a net loss of RMB.
$36 million and the same period of 2020 non-GAAP net loss was on the 27, 4% compared with the non-GAAP net loss of RMB 21, 6 many of the same period of 2020 basic and diluted loss per ads.
Attributable to ordinary shareholders were on the zero point of 42 and.
And on the 40.
And 42, respectively compared with.
On the zero point of 34, and RMB zero point of the 34, respectively. During the first quarter of 2020.
Now for the balance sheet.
As of March of 'twenty, 1 2020, 1 we had total cash and cash equivalents.
The restricted cash and attend deposits term deposits and the short term investments of RMB, 2 6 billion compared with RMB 2 7 billion.
December 31 2020.
For the second quarter of 2021, so the only expects total revenues to be between RMB 413 billion and the RMB 450 million.
Representing a 31% to 37, 1% increase from the same period of 2020 the.
Above overlook is based on the current market conditions and the reflects the company's preliminary estimates of market on the operating conditions and the customer demand.
This concludes our prepared remarks, I will now turn the call to the operator and open the call for Q&A.
Operator, we are ready to take questions.
Thank you.
And as a reminder to ask a question you will need the Taiwan and the telephone and withdraw your question is the fastest how the heck.
Please standby.
Part of the Q&A of Austin and.
And if you ask the question in Chinese.
And England and repeated in English and immediately.
1 question is allowed to ask 1 question at the time, if you wanted to ask more than 1 question. Please join the queue again.
Once again of the Taiwan.
The question.
First question comes from the line of Thomas Chong of Jefferies. Your line is open. Please go ahead.
Okay.
And you see.
The man.
And then.
And then.
Okay.
Okay.
Okay.
And just the trend.
Great.
Thanks, guys.
And Josh.
And your cash.
Okay.
Yeah.
Yes.
Sure.
And instruments.
The questions.
Okay.
And we operate.
Great.
Oh.
And the.
Okay.
Great.
And then.
And he says.
Cash.
Sure.
As bill and.
Okay.
Our strategy.
Okay, I will be answering these questions.
All of US our growth strategy in 2021 won't change compared to 2.
2020, we will still be focused on expanding our user base and the.
The increase our penetration in terms of.
We're talking to of the user base.
For the for the last part of your question and as you said, what's your Mou once all the <unk> target and the guidance and.
And I think although we never provided that guidance in the.
And the previous quarters, but we still see positive increase and.
And in terms of our Mou for the first quarter of average Mou is around the like 8 million $8 4 million and of going forward, we expect our.
<unk> at the end of the year still will have seen around the 40% of growth that's our target.
And the fall.
Sure.
And whats our strategy and.
How are you going to.
And our sales and marketing budget.
And then you can see and the first of quarter of a in the first of quarter result.
Did have a.
Bigger or larger than normal of previous quarters, because of spending in sales and marketing excluding those pedros are and we.
Have a run of the 192 million on the.
And on the customer acquisition, we think that we have around the 100 and the 2.
And have been focused on branding, which we associated with the the television shows as mentioned earlier in the and.
And the previous coats and we also for in terms of from promoting our Slim Festival in March we did spend a.
The launch campaign offline with focused media. So that's the extra expanding compare to the first quarter of last year same period of last year and even more of the fourth quarter of 2020.
In terms of 2024th.
Fourth quarter of 2020, we spent around.
And half of that for branding expenditure so of but is that means we can't.
While we will spans more than usual or budget of our budget is much more than our previous years for sales and marketing or customer acquisition and the answer is no because we have the restricted.
The.
Budgeting policy for sales and marketing is around customer acquisition. Our budget is from like 40% of total revenue.
<unk>.
That's the that's.
The general rule in the previous years and although we spent more in terms of branding and the first of quarter, but going forward.
We have we have already planned the our branding expenditure for second quarter fourth growth third quarter, and the fourth quarter and mainly as you can see and the previous 2000.
'twenty and 2019, we would we will have more spending in branding force third quarter every year, but relatively low in terms of the second quota and the fourth quarter.
Fourth of this year.
We just to have and.
Early spending for 2 of dedicated promotion.
Our March.
The Slim festival and the that's the case and the going forward, we will still.
As to spend half of our.
Budgeting cost sales and marketing and branding and half of that half of that all traffic acquisition.
And the.
And it won't have like consistent large amounts of the sales.
Sales and marketing spending like first quarter of this year, which is more than 60% for the next few quarters. It will come down to the normal level.
That's the.
That's the jets for budget side only expense.
And the for the day do we have any focus on like customer conversion and the what's the monetization strategy and the going forward for the allies of our traffic acquisition.
And.
And for that part of the question that we think.
And the.
Interest in 'twenty.
We did see a large growth of.
And Mou, but we also suffered by the COVID-19 impact and we see the conversion is relatively low compared to previous years. So it is the efficiency of look slower than previous years, but no.
We do see the recovering trend and the conversion and the.
The the conversion trend for our paying customers.
Our closing or coming back to the regular level.
Which we will we will be very positive for the side as well and the seeing a consistent customer conversion improvements and the next few quarters.
That's my answer.
Thank you.
Our next question comes from the line of Leo Chiang of Deutsche Bank.
And is open. Please go ahead.
Thank you, Tom and John Rielly.
And kind of changes all of that event.
Oh, well the wouldn't you say you can shoot anything quantifiable and thinking Chico Dante C and pull from the channel she chooses and beyond.
Great and then.
Please don't be shy and Vivien, thanks for taking my pension and.
And my question is that what is the proportion of marketing expense and the trend for institutional.
Which span and so you're on the platform.
The demand and the debris okay. Thank you.
Okay.
And as you did.
And as you go out and you saw over and the bulk of alarm com.
So what do you mean, the Hungarian outside of <unk>.
<unk>.
Of course, you would and.
For the <unk>.
And the Archer.
Sorry.
Okay, and hi, sung <unk> simple.
And so is that put on the T cell and the tone, Harley and you own and what are.
Our kitchen of the RNA and the junior and the patterns is that true.
And I'm kind of outside of saying you may 14, and how this is off of a high suicide because you're of course on that.
So and Xi'an, Shanghai, the Chico with Oklahoma kind of knock.
And when we kind of come and go the Chico cocoa and mentioned the Oh Joy.
Each of the or the full free as you go through with Homebase zone zone patterns of suicide.
The dollar since the filing of our job.
So you'll you women's Inc. Hydro teams or know of Coca Cola and ETE high on and they will tell you that is the key material.
And the whole in Russia is the G.
You're going to even the annuity soma oil and kind of our Chico and telephone and Coa.
So the total common challenges of our IPO and Kunal.
And given the whole country, and I'll tell us and I'll really our shorts and T. The 2 the hawkers home but.
And for those houses and that your dollar and allocations of the assumed I think the telephone only when Michelle here today all of Xi'an telephone the salvo of her whore currently the only read she'd have issued all of the Hong.
And he will go into other types of ownership.
And so you go outside the U S health insurance as you think of high security policies.
And she was telling me but true.
Okay.
The first according to Frost and started my report the.
And take off an online customer acquisition spending by and medical aesthetic service industry in China was about 20% in the past 5 years.
The percentage of total cost of acquisition spending and all online medical aesthetic service platform has continued to increase.
And from less than 2% in 2015% to 13% in 19th the.
The the market share of the online platform is continuously expanding and.
The second delay in terms of the number of institution and our platform.
We have formed the partnership with more of institutions in the first quarter, we can see that the number of paying medical service providers on our platform was up more than 40%.
And get.
And that's the number of more than.
The 4700, thanks to our target user base and our strong brand recognition among users.
And lastly, we think that we use improvements in institutions operations capabilities.
We see that their spending behavior is also growing mature as they tend to customer acquisition channels with better of our wide performance.
In order to reduce overall customer acquisition cost of those.
Institutional and I'll also testing new ways to improving there.
And new ways to to to put their allocation of marketing also improving their own capabilities, we believe that as long as our performance is.
Super Super.
And that is better than the than the peers in the market our contribution and.
And 2 of the that our contribution of value in the industry is increasing the institution well maintained and preparing for sui and when they allocating the AD spendings.
Thank you.
Thank you.
Thank you.
Next question is from Sheekey of C. ICC. Please go ahead.
Of course, it does seem quite in terms of how 1 of he left.
I hope the genco.
And the surety and get them done.
And your thought.
Good.
Good day, the Cambria corridor.
And that's really cool.
And he told me and I want the diet Ghansham, the owner should yourself with the South Florida.
And you got to say, that's 1 of the transition.
Thanks management for taking my question Ah I noticed that can be and have recently signed a cooperation and contract with Bloom MAGE a biology. So could you provide more detail of what's out there action for future cooperation with upstream manufacturer.
Or.
The suppliers and thank you.
Uh huh.
Of course through really well done and George Hungary and hotels.
And of course, all total sanyo to embark on the 1 quarter because all of it yet.
Oh, and sorry really of Hawk, and Chico and he saw what changed.
Well into the hunting the ETA.
The China and salary of congestion.
Xiang Jiang of China, and just sort of like you saw some of that you took some day or 2 short university of.
Putting all sorts of issues do I visited the Villa <unk> and of course from the minority.
Rely on us and John recently, once you sort of watch Hodara co Carney Shiloh units you go the Sunday of hurdle of Hot button.
And so I hope that as Hemi and Scott.
She is hunting and patient of permanent and Hugo.
Hugo Channel.
And let's just leave.
The funding of the Xiang and jewelry and watches over the plenty of all sorts of issues.
Do you have to do it.
Your lines of each of your fine she owns.
And so we're going to the other you maintained high.
Ghansham and SEDAR.
And the running of the.
Wage issue of following any of the Denali.
And going forward, we will continue to strengthen cooperation with medical product manufacturers to have better control over our user experience and so let me and elaborate wind and we just the cap rate, we just and and today inclusive of comprehensive strategic cooperation agreement.
Brokerage and title clients scheme booster of products.
And if you see the according to the agreement we will of partnership a partner with roommates and helped the latter on 2 of strategy strategic initiatives. 1 is hyaluronic acid program and 1 is creating the future medical aesthetics Alliance.
We think that we will became the strategy of partner.
To help each and managing medical and aesthetic service providers.
And also we think that and several ways, we will provide comprehensive support like in like including product R&D and the new product training.
In addition, we have also developed a package of solutions voice hyaluronic acid program.
And so at the largest medical aesthetics platform and China, well, So we will maintain our leadership in the industry and enable efficient and connection between consumers and the business.
Thank you.
Next question is from the line of Vincent Yu of Needham and company. Please go ahead.
For the heated Warrington preclinical and the whole bunch of England and <unk>.
The industry particular niche.
The unit.
You gave the <unk> on mute and sharing of.
Hello.
$2020 of of the shelf each of it when the launching of <unk> I will mention day.
Sure sure.
To the.
You bet, Jim you made on women growth.
For the Internet to the in the new ship.
And <unk>.
Cash flow through the edge of the ebay <unk> and <unk>.
The increase of the syndrome.
The logo wins, you should 1 of the Jacob if the crop and you can win.
Is that the contract issue.
And if you don't want me to kind of no.
Total jaeger.
And.
Thank you you made some country the 20th.
And the solution on the Ping Chen from and Judy.
Our Medina investor and to blow the treasurer and a hole.
And we'll find out.
Thanks for taking my question.
The first question is the medical is the.
About the the trend on the 2 categories of the.
And that would be worth the effort.
From market or the <unk>.
Next the sample market has been active since the beginning of the year.
The significant growth.
The major auto mentioned strong demand on the consumer side can you share more details about the trends for <unk> and the non physical treatments, respectively, and how do we gain.
<unk> edge and the like the.
The category and the food of surgical treatment and we.
<unk> returned to growth.
And then move.
And the stake compared to the.
The 2020 and then my second question is about the Trillium pen Ken mentioned will give us more color on sort of impacts how much revenue contribution can we expect to see and how much from it.
The target cities, we are planning to enter this year. Thank you.
Yeah.
Uh huh.
Tricia you Miss his home and so we decided to of Homelink and home and kind of who the south of the opportunity those are the touch on.
Not easy to see on Shanghai the year for the dollar tree can you buy the especially lung tissue both suite of <unk> by the Sunday between the us at home and.
Total womens condom tool and there was healthy on the corner of science.
So some of these sounds and yes, John and <unk>.
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Turning to deflation and kind of now and what kind of oscillating and done outside of it.
Certainly and I know, you're doing with all of that each of them and the shipyard and.
I'm the leadership, the new high male and the ability of.
Our cumulative of initiation.
First of all of that given the I'm not sure of tissue boxes challenge and the you could sort of gone.
And the shuttle.
Good day.
Net sales in the social channel.
<unk> hundred.
And the passive entry and Swansea Sambi.
And Jim the opinions.
None of those are about the window shy yourself and <unk>.
So, we're sort of Q4, and they own Colorado and into which of myeloid overdone.
And the whole new kind of nuts and influenza sanyo the.
You may its high level of Hood, Shithouse zone, Hi, Alejandro side of it as you go towards out of it turns out the age of the official should help me that's under armour.
True to Illinois.
The Pfizer and shelf and it's a bunches of hanmi or both of our children.
So from the larger quota share, Florida, and Arizona shall walk of fruition.
And would you just show visit the 20 inch of honor to narrow and then John tissue from away from and hard sorry, I knew who sort of true home and they also posted its own challenges the shelf.
We of all jumped in Shanghai.
Cash flow.
Yes.
And the the matter of aesthetics market as a whole is on the housing recovery.
We see that the users of women as 2 approaches and the interest of keeping increasing.
And if you see the Denver that during the first quarter and our platform reached 8 for many of them and to maintain a very good rate of the.
Gross so our addition to the content of consumption. Our use of average time spent and the interaction with institutions and doctors both increased significant today year over year and and your question is on the on the surgical booking we could see that as the surgical booking a gradual recovery.
And the number of reservation and has returned to the level before the epidemic and yet the total T and B C.
A bit behind all of that.
Non surgical bookings kept the strong momentum we can see that the doing the 3 and basketball and the March and daily average <unk> for injection.
<unk> increased by 62% and compare with the double 11, and the last year and so we still see that like the injection skincare and the anti aging remain amongst the of popular treatments to users.
Our capital.
And we could see that the competition amount non surgical sector is intensified this year for both upstream and <unk>.
2 of upstream manufacturers to the downstream institution, Inc.
In contrast, the consumer side, count 40, and us stand and evaluate the service.
And those surveys like the effect and at the risk.
And that aiming to yourself pinpoint of consumers.
This year, we will continue to leverage the age of our platform and content and the community.
Construction and also enhance consumer protection and optimize the user experience on our platform.
Oh, sorry of treatment from the window.
The answer I'll shoot you show them the detail all of these are sort of biosciences on assumptions.
The challenge <unk> cohorts agenda.
The bulk of its Kyoto cozy.
<unk> of women does having the pseudo corporates and Chung.
For the assumptions that Delta and what how is the true to that Alejandro.
The designer shoe licensee of for us so hold of about onto the heat.
It's 1 of the Georgetown was from you know and Mr. Johnson on a scale of the shutdown of her travels I suddenly say Oh shoot.
Joshua I scale that the U S.
And based on the <unk>, sorry of Kaka, the and Josh.
And how much on the enrollment of ways here.
And I said hot to the affordability of hard to tease out of it and now.
And the whole T jog to allow the owner of ensuring the only 1 element of Congo.
Yeah and 1.
Let's see Oh, the submitted 2 cent charge hunger and some other types of million.
So true facial and the new showdown.
And the Holywell element and we're seeing on the contrary to the social digital.
Hydro to the Shithouse range line Shanghai itself is the attrition.
And you may appear low China Yorkshire their interest.
And yeah, we first of all of 2 proof.
Proof of the online user experience.
And the 4 products of units and enhanced use of trust on our platform. So we do it in 3 ways. 1 is of course, increasing the total SKU of supply and we also secondly, we also refining our product library and enhancing standardization and improved the description of service.
And Skus.
And should we find payment and the <unk> warranty systems.
2 of protected the whole user experience.
So you can see that we separate our.
Hum.
Non surgical treatment.
First of all of its fall of those low and product line, we reinforced our leadership position in both number of FTE youth and pricing system as well as the.
The regional and also the critical.
<unk> coverage for the mid to the high end product line we.
We are we could see that that's the way of Pos are widely recognized and.
And by our users and we successfully.
And to improve the department performance I'll promise the contract terms are.
Which could of focusing to acquire those mid to high end customers group.
And a.
Second sorry, and then later, we enhanced cooperation with upstream manufacturers to our metrics up so our ambassador program.
<unk> and the new media content. It is in the effort to increase content supply and the user engagement for now surgical treatments and lofty and enhances the customer recognition of our expertise and <unk>.
Sure sounds like the shopping events some shopping events like the anti aging festival and the steam festival as well as market of campaigns.
That's all thank you.
So in San Jose and Tommy.
Yeah with the teams.
My second and some of them to the soon.
So the chain, if I may and the <unk>.
And <unk> with Honeywell and she wishes and the high side.
Especially automotive and.
She is a true I was just hoping somebody could you run the dunmore and are they.
And you're going to interest as I showed you from it.
And second of waiting and Ctrip elevation of equate the hold true as you watch and jewelry.
As of the time Omega and shop.
The officials, how many of the building and how formula 1.
So he knows the challenge holding and thoughts how essentially of a pinch on the go of course that will try and sort of challenge generally hurts you own 1 so first of all of it really does having the doesn't have the told me now.
Thiago from you and our society of yield from it.
And they're not sure sure or mentioned that 18 of the higher fees and I'm not either on the non current.
Of all.
So kind of timing and that hopefully.
And then can't hurt yourself, the famous accounts, having the possibility of Xiaomi and <unk>.
Yes, 1 of LNG. So you saw the impact of availability of higher fees on all of that.
The sum total motor for me and <unk> Yahoo shares uncle, Matt.
Yes, that's true, but if all of them of hydro true to a central book, that's all true.
And I'm going to shy of the appeal.
And most of you go to the other you go figure.
So you thought surgical from you know.
The Domino and shape 1 side.
And I, just say the 1 woman and she said the only of a thumbnail.
So it'd be the unknowns here is home to the CFO and social cause immune modulation of regardless of you guys have heard sort of.
The Chico and I suppose how volatile from Jacques.
Darren Joe from tourism.
So from the answers are more channel and the need of a service from the highest 1 day you do now and the put here the holiday realizing the mix of high and they will find the AMA bunch of of hunting. The tiggerish of each of those have been I'll call them.
Referring to your question about the Sui impasse.
Since the launch of luck.
October so and pass program and has now expanded it to 11 cities with more than 19 institution partners and.
And in terms of the product selection.
Second and a healthy then the 2 select products force, our soda and pass program.
And the account consistently.
Consistently optimize all of the escalators and especially for the announced surgical product of standardization, we have expanded our standardized category to 30, plus so this allow us to be flattish standard centers and discretion and transparency in the non surgical scepter and.
Meanwhile, in terms of the order fulfillment.
We saw the complaint rates for the products under the <unk> program largely below.
And those on our main main apps from the reservation products.
And the.
The revenue level.
Since the <unk>.
So we don't.
Have not scale up yet and it did not contribute a meaningful revenue.
Okay.
We we and at this moment and we still give the subsidiary to our end users.
And we did not see.
Separate and different the line for this growth more detailed member and the revenue on the Apple, obviously and pass but the we.
Generally, saying that is the total take rate for the so we unpack program was higher than other products.
Thank you.
Thank you.
Thank you ladies.
Ladies and gentlemen, this concludes today's conference call. Thank you for participating you may have.
As long as per day.
Thank you.