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    Lucy Zhao • Penghua Funds

    Lucy Zhao is an analyst at Penghua Funds, specializing in equity research within the Chinese financial sector. She focuses on analyzing major Chinese companies across multiple industries, developing investment strategies and contributing to portfolio management at the firm. Zhao began her career in asset management after completing advanced finance studies and has held roles in leading Chinese investment firms before joining Penghua Funds in the mid-2020s. She holds professional credentials relevant to securities research and fund management in China, which support her comprehensive coverage and investment insights.

    Lucy Zhao's questions to So-Young International Inc (SY) leadership

    Lucy Zhao's questions to So-Young International Inc (SY) leadership • Q3 2024

    Question

    Lucy Zhao from Penghua Funds asked how management successfully controlled expenses, pointing to the 20% year-over-year decrease in sales and marketing costs, and improved profitability.

    Answer

    CFO Hui Zhao explained that true profitability stems from business growth, particularly from the new clinic chain. The reduction in sales and marketing expenses was a direct result of a strategic shift from broad traffic acquisition to more refined, efficient operations with a focus on ROI. He stated this effective cost control helped lower the overall expense ratio to 60.5% in Q3, a decrease of 3 percentage points year-over-year.

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