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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 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.
Total Revenue RMB 378.7 million, down 7% year-over-year, primarily due to a decrease in the number of medical service providers subscribing to information services on our platform.
Aesthetic Treatment Service Revenues RMB 144.4 million, soaring 426.1% year-over-year, exceeding the high end of our guidance, primarily due to the business expansion of our branded aesthetic centers.
Information and Reservation Services Revenues RMB 135.2 million, down 35.6% year-over-year, primarily due to a decrease in the number of medical service providers subscribing to information services on our platform.
Sales of Medical Products and Maintenance Services RMB 76 million, down 28.1% year-over-year, primarily due to a decrease in the order volume of medical products.
Other Services Revenues RMB 23.2 million, down 64% year-over-year, primarily due to a decrease in So-Young Prime.
Cost of Revenues RMB 184.6 million, up 19% year-over-year, primarily due to a business expansion of our branded aesthetic centers.
Cost of Aesthetic Treatment Services RMB 109.4 million, up 405.5% year-over-year, primarily due to the business expansion of our branded aesthetic centers.
Cost of Information and Reservation Services RMB 16.7 million, down 47.4% year-over-year, which was in line with the decrease in revenue generated from information and reservation services.
Cost of Medical Products Sold and Maintenance Services RMB 39.5 million, down 25.8% year-over-year, primarily due to a decrease in costs associated with the sales of medical products.
Cost of Other Services RMB 19 million, down 60.8% year-over-year, primarily due to a decrease in costs associated with So-Young Prime.
Total Operating Expenses RMB 241.3 million, down 1.8% year-over-year.
Sales and Marketing Expenses RMB 131.3 million, down 0.7% year-over-year, primarily due to the decrease of payroll costs.
G&A Expenses RMB 78.8 million, up 11.3% year-over-year, primarily due to an increase in payroll costs associated with the expansion of administrative employees to support our business upgrade and new strategic businesses.
R&D Expenses RMB 31.2 million, down 26.6% year-over-year, primarily attributable to improvements in staff efficiency.
Income Tax Expenses RMB 1.9 million compared with the income tax benefit of RMB 2.6 million in the same period of 2024.
Net Loss Attributable to So-Young International Inc. RMB 36 million compared with net income attributable to So-Young International Inc. of RMB 18.9 million during the same period last year.
Non-GAAP Net Loss Attributable to So-Young International Inc. RMB 30.5 million compared with non-GAAP net income attributable to So-Young International Inc. of RMB 22.2 million during the same period of 2024.
Basic and Diluted Losses per ADS Attributable to Ordinary Shareholders RMB 0.35 and RMB 0.35, respectively, compared with basic and diluted earnings per ADS attributable to ordinary shareholders of RMB 0.18 and RMB 0.18, respectively, during the same period of 2024.
Cash Position RMB 998.6 million as of June 30, 2025, including cash and cash equivalents, restricted cash and term deposits, term deposits and short-term investments.
New Treatment Offerings: Launched Medical PLLA, Mermaid Skin Booster, and BBL Hero, expanding the medical aesthetics portfolio and increasing ARPU.
Network Expansion: Expanded So-Young Clinic live medical aesthetic chain to 33 centers, with plans to reach 50 centers by year-end, including expansion into second-tier cities.
Customer Base Growth: Active users exceeded 100,000 by June, with over 70% of new customers acquired through low-cost private domain traffic and referrals.
Operational Efficiency: 19 out of 29 centers turned operating cash flow positive, with 13 being profitable on a monthly basis. Gross profit margin for aesthetic treatment services expanded by 5 percentage points sequentially.
Digitalization and AI: Implemented AI-driven solutions for end-to-end management, including self-service booking, check-in, and treatment processes.
Strategic Transition: Aesthetic center business became the largest revenue contributor, marking a critical inflection point in the company's multiyear strategic transition.
Branding and Marketing: Teamed up with international IPs and influencers for campaigns, significantly boosting brand visibility and engagement.
Net Loss: The company reported a net loss of RMB 36 million and a non-GAAP net loss of RMB 30.5 million in Q2 2025, attributed to rapid network expansion and ongoing investments. This financial strain could impact operational sustainability if not managed effectively.
Decline in Revenue Streams: Revenues from information and reservation services decreased by 35.6% year-over-year, and sales of medical products and maintenance services dropped by 28.1%. This decline in key revenue streams could hinder overall financial performance.
High Operating Expenses: Total operating expenses were RMB 241.3 million, with sales and marketing expenses at RMB 131.3 million. While slightly reduced year-over-year, these high costs could pressure profitability.
Customer Acquisition Costs: Although customer acquisition costs remain low, the company is heavily reliant on private domain traffic and referrals, which may not be sustainable long-term if market dynamics shift.
Expansion Risks: The company plans to open 10 new aesthetic centers in Q3 and reach 50 centers by year-end. Rapid expansion could strain resources, dilute operational efficiency, and increase financial risk.
Supply Chain Challenges: A decrease in the order volume of medical products and reliance on certifications for upstream products could pose risks to supply chain stability and cost efficiency.
Market Competition: The company faces competitive pressures in the medical aesthetics industry, which could impact its ability to maintain market share and profitability.
Economic Uncertainty: Broader economic uncertainties could affect consumer spending on non-essential services like medical aesthetics, impacting revenue growth.
Revenue Projections for Q3 2025: Aesthetic treatment service revenues are expected to be between RMB 150 million and RMB 170 million, representing a 230.5% to 274.6% increase from the same period in 2024.
Expansion Plans: The company plans to open around 10 new aesthetic centers in Q3 2025, expanding into both first-tier and core second-tier cities. By year-end, the total number of aesthetic centers is expected to reach 50.
Operational Efficiency and Standardization: The company aims to refine its standardized model to enhance operational consistency and efficiency, establishing a robust base for recurring revenues.
Market Leadership and Long-Term Value: Efforts will focus on reinforcing cost advantages, solidifying industry leadership, and creating durable long-term value for shareholders.
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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