So-Young International Inc.

Ladies and gentlemen, thank you for standing by for Sue Young's first quarter and 2023 earnings conference call. At this time, all participants are in a listen-only mode. After management gives their prepared remarks, there will be a question and answer session. As a reminder, today's conference call is being recorded. I will now like to turn the meeting over to your host for today's call, Ms. Vivian Zhu. Please proceed, Ms. Zhu.

Thank you, Operator, and thank you, everyone, for joining Soyoung's first quarter 2023 earnings conference call. Please note that the discussion today will contain forward-looking statements made under the safe harbor provisions of the U.S. Private Securities and the Litigation Reform Act of 1995. Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from our current expectations. Potential risks and uncertainties include, but are not limited to those outlying our public findings with the SEC, including our annual report on Form 20F. So Young does not undertake any obligation to update any forward-looking statement, except as required under applicable law. Join me today on call is Mr. Xin Jin, our co-founder, chairman and CEO, and Mr. Nick Zhao, CFO. At this time, I would like to turn the call over to Mr. Xin Jin.

Hello, everyone. Thank you for joining Soyang's first quarter 2023 earnings call. With the decline of the epidemic and the resumption of normal operations by medical institutions, a good start has come to Xinyang in 2023. In the first quarter, the total income reached RMB 3.1 billion, which increased by 3%, exceeding the high end of the previous company guidance. At the same time, strict cost control measures and the improvement of overall operating efficiency have caused our operating costs to drop by 15%. Losses have been greatly reduced. We kicked off 2023 with a strong financial performance as the effects of the pandemic recede and the gradual recovery of medical aesthetics industry gains momentum.