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01/11 17:40
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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
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.
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.
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.
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.
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.
The selected topic was not discussed during the call.
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.
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.
Despite positive aspects like the expansion of aesthetic centers and increased shareholder confidence, the earnings call reveals significant challenges: a sharp decline in total revenues, increased net losses, and competitive and regulatory risks. The Q&A section highlights concerns about CapEx sustainability and vague responses to trade tension impacts. These issues outweigh the positives, leading to a negative sentiment.
The earnings report shows a significant decline in revenue, net income, and an increase in operating expenses. The net loss is substantial due to a goodwill impairment. Despite a strong increase in aesthetic treatment services revenue, the overall financial health appears weak. The Q&A section reveals vague management responses regarding financial outlooks, adding to uncertainty. The lack of concrete guidance and the high operating expenses overshadow the growth in certain segments, suggesting a negative sentiment towards the stock price over the next two weeks.
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