So-Young International Inc. (SY) Refutes Blue Orca Capital’s Report and Announces $70 Million Share Repurchase Program

May 7, 2021 7:22 AM EDT

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So-Young International Inc. (Nasdaq: SY) (“So-Young” or the “Company”), the largest and most vibrant social community in China for consumers, professionals and service providers in the medical aesthetics industry, today issued the following statement in response to allegations made in a report by Blue Orca Capital.

Yesterday, Blue Orca Capital issued a short seller report on So-Young, causing anxiety and market disturbance, leading to abnormal share price movements. The Company believes that the report contains numerous errors, unsubstantiated statements, and misleading conclusions and interpretations regarding information relating to the Company.

Blue Orca Capital’s report shows its lack of a basic understanding of online social communities for stakeholders in the medical aesthetics industry, particularly the value propositions that social communities offer to medical aesthetic service providers and their cooperation model with social communities. To conclusively refute the report’s false allegations regarding the authenticity of So-Young’s financial performance, the Company is open to cash verification and diligence to be conducted by competent third-party advisers.

To demonstrate the Company’s confidence in its long-term prospects, So-Young’s board of directors has today authorized a share repurchase plan under which the Company may repurchase up to US$70 million of its shares over the next 12 months. The share repurchases may be made from time to time on the open market at prevailing market prices, in privately negotiated transactions, in block trades and/or through other legally permissible means, depending on market conditions and in accordance with applicable rules and regulations. So-Young's board of directors will review the share repurchase plan periodically, and may authorize adjustment of its terms and size. The Company expects to fund repurchases made under this plan from its existing cash balance.

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