So-Young Reports Unaudited Third Quarter 2025 Financial Results
Financial Performance: So-Young International Inc. reported total revenues of RMB386.7 million (US$54.3 million) for Q3 2025, a 4% increase from the previous year, with aesthetic treatment services revenues soaring by 304.6% to RMB183.6 million (US$25.8 million). However, the company experienced a net loss of RMB64.3 million (US$9.0 million), compared to a net income of RMB20.3 million in Q3 2024.
Operational Growth: The number of verified treatment visits to branded aesthetic centers increased significantly to over 89,800, up from approximately 23,600 in Q3 2024, while the number of active users exceeded 130,000, marking a substantial growth in customer engagement.
Center Expansion and Profitability: As of September 30, 2025, So-Young operated 39 branded aesthetic centers, with 20 achieving profitability in Q3. The company aims to expand to 50 centers by year-end, focusing on enhancing operational efficiency and maintaining high-quality service standards.
Future Outlook: For Q4 2025, So-Young anticipates aesthetic treatment services revenues to range between RMB216.0 million (US$30.3 million) and RMB226.0 million (US$31.7 million), reflecting a projected increase of 165.8% to 178.1% compared to the same period in 2024.
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So-Young's Transformation Journey Creates Conflicting Reactions
Company Transformation: So-Young International Inc. has shifted from an online community and e-commerce platform to operating the largest chain of "light medical aesthetic clinics" in China, with significant revenue growth from this new venture.
Financial Performance: Despite a 305% increase in revenue from its clinics, So-Young reported a net loss of 64.3 million yuan in the latest quarter due to a sharp decline in its older online business, raising concerns about the sustainability of its dual business model.
Expansion Plans: The company aims to expand its clinic network to 50 centers by the end of the year and has a long-term goal of establishing 1,000 centers across China within the next 8 to 10 years.
Market Dynamics: So-Young's transition away from online services may reduce competition with internet giants but introduces new challenges from emerging rivals in the medical aesthetics sector, as the market is projected to grow significantly by 2030.
Burning Rock Shares Surge Over 35% as Losses Decrease
Revenue Growth: Burning Rock's revenue increased by 2.3% in the third quarter, primarily driven by a significant rise in R&D services, despite declines in its core cancer diagnostic products.
Stock Performance: The company's stock has tripled this year, with a notable 33% increase following its latest earnings report, reflecting investor optimism about its high gross margins and potential path to profitability.
Financial Challenges: Despite the revenue growth, Burning Rock continues to face high operating expenses, which accounted for 87% of its revenue, leading to a net loss that, while narrowed, still indicates ongoing financial struggles.
Market Position: The company has received approval for some products in Japan as companion diagnostics, but its global revenue remains weak, highlighting the uncertainty surrounding its growth prospects compared to other successful Chinese stocks.
