• 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.
• Cash Position: RMB1.25 billion in cash and cash equivalents, restricted cash, term deposits, and short-term investments as of December 31, 2024.
• Number of New Clinics: 19 So-Young clinics opened in Q4 2024.
• Customer Satisfaction: 4.98 out of 5.
• GMV for Verified Medical and Aesthetic Services: RMB356.6 million in Q4 2024, up 3% sequentially.
• Full Year 2024 Revenue: RMB1.47 billion, down 2.1% year over year.
• Full Year 2024 Net Loss: RMB589.5 million, compared to a net income of RMB21.3 million in 2023.
• 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 20, 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.
• Revenue from the aesthetic center business surged by 79% quarter over quarter and 702% year over year, demonstrating strong growth potential.
• The company maintained a robust cash position with cash and cash equivalents totaling RMB1.25 billion as of December 31, 2024, ensuring financial stability.

Negative Points

• So-Young International Inc (NASDAQ:SY) reported a net loss of RMB607.6 million for the fourth quarter, primarily due to a one-time goodwill impairment charge of RMB540 million.
• 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 significantly by 216.2% year over year, driven by higher sales and marketing expenses and a goodwill impairment charge.
• The company experienced a decrease in revenue from information reservation services and other revenues, down 27.7% year over year.
• Despite the growth in aesthetic treatment services, the overall net loss attributable to So-Young International Inc was RMB589.5 million for the full year 2024, compared to a net income in 2023.

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 development stages. Initial stages focus on brand awareness and service quality, while growth phases emphasize operational efficiency and customer retention. Mature centers focus 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 aesthetic center network has room for growth due to low penetration rates of chain clinics in China. The company adopts a standardized service model, reducing dependency on individual doctors and ensuring consistent high-quality experiences, which supports rapid scaling and 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, focusing on product upgrades and innovation. The strategy includes enhancing R&D for high-end products, integrating teams for efficiency, and providing a stable product supply to empower aesthetic centers and drive growth.

Q: Could management share more insights into So-Young's financial outlook for the future? A: Nick Zhao, CFO, stated that So-Young is committed to sustainable growth through vertical integration, covering the full value chain from supply to treatment services. While near-term profitability may be impacted by aesthetic center expansion, the focus remains on balancing growth with profitability, enhancing financial resilience, and driving long-term shareholder value.

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