So-Young International Inc. (SY) Q3 2025 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call reveals a strong revenue projection for Q3 2025, a strategic expansion plan, and operational efficiency improvements. Despite a net loss, the company shows potential with increased core members and repeat customer revenue. The Q&A section confirmed strategic focus on growth and profitability, with a positive reception to new product launches and compliance measures. The strong revenue growth and optimistic guidance, alongside strategic expansion into high-demand areas, suggest a positive sentiment towards future stock performance.
Key Financial Performance
Total Revenue RMB 386.7 million, up 4% year-over-year, primarily due to business expansion of the branded aesthetic center.
Aesthetic Treatment Services Revenue RMB 183.6 million, up 304.6% year-over-year, driven by robust business expansion of branded aesthetic centers.
Information and Reservation Services Revenue RMB 117.2 million, down 34.5% year-over-year, due to a decrease in the number of medical service providers subscribing to information services.
Revenues from Sales of Medical Products and Maintenance Services RMB 67 million, down 25% year-over-year, due to a decrease in the order volume of medical equipment.
Revenues from Other Services RMB 18.9 million, down 67.6% year-over-year, due to a decrease in revenues from So-Young Prime.
Cost of Revenues RMB 203.8 million, up 43.4% year-over-year, primarily due to the business expansion of branded aesthetic centers.
Cost of Aesthetic Treatment Services RMB 140.1 million, up 333.2% year-over-year, due to the business expansion of branded aesthetic centers.
Cost of Information and Reservation Services RMB 12.9 million, down 44.7% year-over-year, in line with the decrease in revenue from these services.
Cost of Medical Products Sold and Maintenance Services RMB 35.6 million, down 18.3% year-over-year, due to a decrease in costs associated with the sales of medical equipment.
Cost of Other Services RMB 15.2 million, down 64.6% year-over-year, due to a decrease in costs associated with So-Young Prime.
Total Operating Expenses RMB 255.6 million, up 13.6% year-over-year, driven by increased branding and user acquisition expenses for aesthetic centers.
Sales and Marketing Expenses RMB 130.7 million, up 13.8% year-over-year, due to increased expenses for branding and user acquisition activities.
G&A Expenses RMB 88.6 million, up 26.7% year-over-year, due to a one-time accrual of RMB 5.8 million year-end bonuses and business expansion.
R&D Expenses RMB 36.3 million, down 9.6% year-over-year, due to improved staff efficiency, but up 16.5% quarter-over-quarter due to a one-time accrual of RMB 3.6 million year-end bonuses and continued investment in Miracle Laser products.
Income Tax Expenses RMB 1.1 million, compared to RMB 2.1 million in the same period of 2024.
Net Loss Attributable to So-Young International Inc. RMB 64.3 million, compared to net income of RMB 20.3 million in the same period last year, due to increased investments and operational costs.
Non-GAAP Net Loss Attributable to So-Young International Inc. RMB 61.6 million, compared to non-GAAP net income of RMB 22.2 million in the same period of 2024.
Basic and Diluted Losses per ADS RMB 0.64, compared to earnings of RMB 0.2 in the same period of 2024.
Cash and Cash Equivalents, Restricted Cash, Term Deposits, and Short-Term Investments RMB 942.8 million, primarily due to increased investment in branded aesthetic centers.
You have reached the limit. Sign up to access full content
Get started
Operating Highlights
Branded Aesthetic Centers: Revenue reached RMB 184 million in Q3, up 305% year-over-year. The company operates 42 centers, with plans to reach 50 by year-end. Cumulative service visits exceeded 600,000, and active users surpassed 130,000. New product Miracle PLLA version 3 launched with strong presales.
Blockbuster Products: Revenue contributions from blockbuster products rose to over 30%. The company optimized its product portfolio and launched Miracle PLLA version 3, achieving over 1,300 orders in 2 days.
Market Expansion: The company expanded its aesthetic center network to 42 centers across 10 cities, with plans to reach 50 centers by year-end. It aims for 1,000 centers long-term, focusing on core cities and commercial hubs.
Operational Efficiency: 20 centers achieved profitability in Q3, and 29 centers generated positive operating cash flow. Customer acquisition efficiency remains industry-leading, with 46% of new customers acquired via referrals.
Quality Control: Upgraded quality control framework, including risk control and medical service delivery. Conducted 55 center inspections and emergency drills in Q3.
Strategic Shifts: The company is shifting from marketing-driven to trust-driven operations, emphasizing transparency, standardization, and compliance. It aims to build a service system focused on customer trust and long-term value.
You have reached the limit. Sign up to access full content
Get started
Risk or Challenges
Revenue Decline in Non-Aesthetic Center Business: Net loss attributable to So-Young increased due to a sequential decrease of RMB 31 million in revenue from businesses other than the aesthetic center business. This indicates a dependency on the aesthetic center business for revenue growth.
Decline in Information and Reservation Services Revenue: Revenues from information and reservation services decreased by 34.5% year-over-year, primarily due to a reduction in the number of medical service providers subscribing to these services.
Decline in Medical Product Sales: Revenues from sales of medical products and maintenance services dropped by 25% year-over-year, attributed to a decrease in the order volume of medical equipment.
Increased Operating Expenses: Total operating expenses rose by 13.6% year-over-year, driven by higher sales and marketing expenses and general and administrative expenses, which could pressure profitability.
Net Loss: The company reported a net loss of RMB 64.3 million compared to a net income of RMB 20.3 million in the same period last year, reflecting financial challenges.
Customer Acquisition Costs: Although customer acquisition efficiency remains high, there is a reliance on public domain channels, which increased new customer acquisition by 38% quarter-over-quarter, potentially leading to higher marketing expenses.
Dependency on Aesthetic Centers: The company’s growth is heavily reliant on the branded aesthetic center business, which, while growing, poses a risk if market conditions or competition impact this segment.
Seasonal and Industry Factors: Revenue from POP declined by RMB 80 million quarter-over-quarter due to seasonal factors and industry conditions, indicating vulnerability to external market dynamics.
Cost of Revenues Increase: Cost of revenues increased by 43.4% year-over-year, primarily due to the expansion of the branded aesthetic centers, which could impact margins if not managed effectively.
You have reached the limit. Sign up to access full content
Get started
Guidance & Outlook
Revenue Projections for Q4 2025: Treatment services revenues are expected to be between RMB 216 million and RMB 226 million, representing a 165.8% to 178.1% increase from the same period in 2024.
Expansion Plans: The company plans to reach the milestone of 50 centers by year-end 2025 and pursue a long-term goal of 1,000 centers, focusing on core cities and commercial hubs.
Operational Efficiency: Continued improvement in center-level profitability and operating cash flow is expected as the company nears the 50-center milestone.
Product Growth: The company will continue to drive growth in blockbuster products, including Miracle PLLA version 3 and BBL treatments, with revenue contributions from these products already exceeding 30%.
Digital and Standardized Management: Plans to further elevate standardized and digital management to enhance service delivery and user experience.
Market Trends and Competitive Positioning: The company aims to drive the live medical aesthetic industry towards maturity with a focus on transparency, standardization, and inclusive access.
You have reached the limit. Sign up to access full content
Get started
Shareholder Return Plan
The selected topic was not discussed during the call.
You have reached the limit. Sign up to access full content
Get started
Key Q&A
Q:What are the company's plans for new clinic openings next year, including strategy and expected pace?
A:By the end of 2025, the company aims to reach 50 centers. For next year, the number of new centers will not be less than 35, maintaining a balanced quarterly pace to ensure quick operational readiness. The focus will be on fourth-tier cities due to strong demand and high repurchase rates, while also establishing a presence in second-tier cities to validate the model for long-term expansion.
Q:Can you explain the membership system for the aesthetic center business and how membership operations are conducted?
A:The membership system is tiered from Level 1 to 8, with Level 3 and above defined as core members. Core members have higher visit frequency and annual spending 2.5x higher than average, contributing a high double-digit percentage of revenue with a 70% repurchase rate. In Q3, verified users increased by 36% quarter-over-quarter, including a 40% increase in core members. Repeat customer revenue reached RMB 120 million, up 32% quarter-over-quarter, accounting for 65% of aesthetic treatment service revenues.
Q:How is the Miracle PLLA 3.0 performing since its launch, and what are the plans for its promotion?
A:Miracle PLLA 3.0 features ultra microspheres with five key attributes, offering improved safety and longevity. Two versions, Version 3 and Version 3 Pro, cater to different budgets. The first batch of 5,000 units sold out quickly, with 56% of users purchasing the Pro version at RMB 4,999. Mass arrival is expected in late November. The company plans to increase market penetration, reduce procurement costs, and deepen supply chain integration to enhance safety and brand differentiation.
Q:How does the company ensure safety and compliance across its expanding aesthetic center chain?
A:The company has a 6-pillar compliance framework covering risk control, supervision, internal audit, medical service delivery, and information security. It offers only safe, mature treatments and conducts regular doctor assessments with a 10% acceptance rate. Emergency drills and tiered diagnosis systems are in place. User feedback is handled by a crisis response team with an average response time under 2 hours. The compliance rate is below 1%. Digital and AI tools will further enhance safety and efficiency.
Q:What is the management's view on improving the profitability of the aesthetic center business?
A:The focus is on expanding the user base and improving operating profit as the model matures. Cost optimization includes better customer acquisition channels and lower consumable costs, such as the upgraded Miracle PLLA 3.0. Revenue growth is driven by premium treatments and blockbuster products, with the top 9 products contributing over 30% of Q3 revenue. As the business scales, fixed costs will be diluted, and core member LTV will be enhanced, leading to improved profit margins.
Q:Review of Unclear Management Responses
A:None of the questions were avoided or lacked clarity. All responses were detailed and addressed the questions directly.
You have reached the limit. Sign up to access full content
Get started
Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
BBL penetration
CFO harbor
China BBL
China term
Daily commentary
GTV content
Meituan brand
Miracle PLLA
Mr Founder
PLLA version
People Daily
Young decrease
Young example
access service
acquisition membership
advantage term
advertising content
assessment service
blockbuster
center city
compliance
conversion
core member
framework client
measure
momentum
number center
rate
referral
repeat purchase
service delivery
service volume
standardization
system
training
word mouth
SY Transcript
So-Young International Inc. (SY) Q1 2026 Earnings Call Transcript
Neutral5-22
So-Young International Inc. (SY) Q4 2025 Earnings Call Transcript
Positive3-25
The earnings call highlights strong financial performance with significant revenue growth, an optimistic guidance, and improved operational metrics. Despite a decrease in cash position due to investments, the overall outlook remains positive with strategic expansion plans and effective cost management. The Q&A section further supports a positive sentiment, with management addressing margin expansion and customer acquisition strategies effectively. The focus on new centers and customer lifetime value enhancement suggests continued growth potential. Thus, the stock price is likely to see a positive movement in the short term.
So-Young International Inc. (SY) Q3 2025 Earnings Call Transcript
Positive11-17
The earnings call reveals a strong revenue projection for Q3 2025, a strategic expansion plan, and operational efficiency improvements. Despite a net loss, the company shows potential with increased core members and repeat customer revenue. The Q&A section confirmed strategic focus on growth and profitability, with a positive reception to new product launches and compliance measures. The strong revenue growth and optimistic guidance, alongside strategic expansion into high-demand areas, suggest a positive sentiment towards future stock performance.
So-Young International Inc. (SY) Q2 2025 Earnings Call Transcript
Positive8-15
The earnings call summary shows strong financial metrics, particularly in revenue growth expectations, and a strategic focus on expansion and vertical integration. While there are net losses, management provides optimistic guidance with plans for significant expansion and market share capture. The Q&A highlights management's confidence in market potential and effective cost strategies, with clear responses to analysts' questions. The partnership with SkinCeuticals and focus on proprietary product development further enhance the positive outlook. Despite the lack of market cap data, the overall sentiment suggests a positive stock price movement.
SY Report
Frequently Asked Questions
Where does this earnings call transcript come from?
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
How soon is the transcript available after the earnings call ends?
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
Is the transcript edited or altered in any way?
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
Why do some answers appear as “Unclear” or “Inaudible”?
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
Who creates the AI Summary and Key Q&A highlights shown above the transcript?
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
