• Total Revenue: RMB369.2 million in Q4 2024, down 5.5% year over year.
• Net Loss: RMB607.6 million in Q4 2024, compared to a net income of RMB17.5 million in the same period last year.
• Non-GAAP Net Loss: RMB53.2 million in Q4 2024, compared to non-GAAP net income of RMB35.7 million in the same period last year.
• Aesthetic Treatment Services Revenue: RMB81.3 million in Q4 2024, up 701.6% year over year.
• Cost of Revenues: RMB153.1 million in Q4 2024, up 11.2% year over year.
• Total Operating Expenses: RMB815.2 million in Q4 2024, up 216.2% year over year.
• Impairment of Goodwill: RMB540 million related to Miracle Laser subsidiary.
• Cash and Cash Equivalents: RMB1.25 billion as of December 31, 2024.
• Number of New Clinics: 19 So-Young clinics opened in Q4 2024.
• Revenue from Aesthetic Center Business: RMB81.3 million in Q4 2024, up 79% quarter over quarter and 702% year over year.
• GMV for Verified Medical and Aesthetic Services: RMB356.6 million in Q4 2024, up 3% sequentially.
• Outlook for Q1 2025 Revenue: Expected to be between RMB280 million and RMB300 million.

• Warning! GuruFocus has detected 3 Warning Signs with SY.

Release Date: March 28, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• So-Young International Inc (NASDAQ:SY) reported a significant year-over-year growth of 701.6% in aesthetic treatment services revenues, driven by the expansion of their aesthetic center business.
• The company successfully opened 19 new So-Young clinics across nine core cities, with 11 centers achieving positive monthly operating cash flow by December.
• Customer satisfaction remains high, with an industry-leading score of 4.98 out of 5, indicating strong service quality and customer approval.
• The company's aesthetic center business saw a 79% quarter-over-quarter revenue increase, highlighting rapid growth and market acceptance.
• So-Young International Inc (NASDAQ:SY) maintains a robust cash position with cash and cash equivalents totaling RMB1.25 billion as of December 31, 2024, providing financial stability for future investments.

Negative Points

• The company reported a net loss of RMB607.6 million for the quarter, primarily due to a one-time goodwill impairment charge of RMB540 million related to their subsidiary, Miracle Laser.
• Total revenues for the quarter decreased by 5.5% year over year, largely due to a decline in revenue from So-Young Prime.
• Operating expenses increased by 216.2% year over year, driven by higher sales and marketing expenses and professional service fees.
• The cost of aesthetic treatment services rose by 702.3% year over year, reflecting the financial burden of expanding the aesthetic center business.
• Despite the growth in certain areas, the company experienced a decrease in revenue from sales of medical products and maintenance services, down 15.2% year over year.

Q & A Highlights

Q: What are the latest developments in merchant support and empowerment on So-Young's platform during the industry consolidation period? A: Xing Jin, Co-Founder, Director, & CEO, explained that as industry consolidation accelerates, large chain institutions are gaining market share due to economies of scale and standardized service models. So-Young is optimizing its platform by empowering aesthetic institutions, deepening partnerships, and improving user experience to help institutions navigate market cycles and achieve sustainable growth.

Q: How does So-Young adapt its strategies and operations for aesthetic centers at different stages of development? A: Xing Jin, Co-Founder, Director, & CEO, stated that So-Young implements differentiated operational strategies for aesthetic centers at various stages. In the initial phase, the focus is on building brand awareness. During the growth phase, the emphasis shifts to optimizing operational efficiency and customer retention. In the maturity phase, the focus is on long-term customer lifecycle management and service optimization.

Q: How can the aesthetic centers business maintain growth? A: Xing Jin, Co-Founder, Director, & CEO, highlighted that So-Young's chain model has a competitive edge in the domestic market. The model ensures consistent, high-quality service across centers, reducing dependency on individual doctors and allowing for rapid scaling. This approach enhances customer satisfaction and brand loyalty, supporting long-term growth.

Q: What is So-Young's strategy for its upstream business, particularly after acquiring Miracle Laser? A: Xing Jin, Co-Founder, Director, & CEO, explained that Miracle Laser has been integrated into So-Young's upstream business unit. The focus is on enhancing R&D for high-end products, integrating teams for efficient collaboration, and providing a stable product supply to aesthetic centers. These efforts aim to drive sustainable growth in the upstream sector.

Q: Could management share more insights into the company's financial outlook for the future? A: Nick Zhao, CFO, stated that So-Young is committed to sustainable growth through vertical integration. While near-term profitability may be impacted by the expansion of aesthetic centers, the focus remains on balancing growth with profitability. The company aims to enhance financial resilience and drive long-term value for shareholders.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.