#China #Beijing #financial results #Aesthetic Treatment #So-Young

So-Young International Reports Second Quarter 2025 Financial Results

So-Young International Inc. (Nasdaq: SY), a leader in China's aesthetic treatment sector, recently released its unaudited financial results for the second quarter ending June 30, 2025. Notable highlights from this period reveal a significant transformation within the company, particularly through its aesthetic treatment services, which have dramatically surpassed previous figures.

Financial Highlights

Total revenues for the second quarter reached approximately RMB378.7 million (around US$52.9 million), marking a 7% decrease compared to RMB407.4 million from the same period last year. This drop can be largely attributed to reduced subscriptions of medical service providers to So-Young's information services.

In stark contrast, revenues from aesthetic treatment services skyrocketed to RMB144.4 million (US$20.2 million), a remarkable 426% increase from the RMB27.4 million reported in Q2 2024. This growth was bolstered by the expansion of So-Young's branded aesthetic centers, which have begun to emerge as the principal revenue source.

However, the company reported a net loss of RMB36.0 million (approximately US$5.0 million), a significant shift from a net income of RMB18.9 million during the same quarter in the previous year. The non-GAAP net loss, excluding specific expenses, stood at RMB30.5 million (US$4.3 million), compared to a non-GAAP net income of RMB22.2 million in Q2 2024.

Operational Achievements

So-Young achieved notable operational milestones in Q2 2025, processing a total transaction value for aesthetic treatments of RMB303.9 million, down from RMB427.8 million in the previous year. Yet, the number of verified treatment visits surged to over 67,400, significantly up from approximately 14,000 visits in Q2 2024. This hike in customer engagement underscores the brand's growing influence within the aesthetic treatment industry.

Additionally, over 154,500 verified paid aesthetic treatments were recorded, compared to around 27,600 the previous year. The user base also expanded significantly, with active users exceeding 100,400, a stark increase from 16,000 in the corresponding quarter last year.

As of June 30, 2025, So-Young operates 29 fully established aesthetic centers across major cities, including Beijing, Shanghai, and Guangzhou. Twenty-five of these centers are already generating positive monthly cash flow, demonstrating a robust return on investment and operational efficiency.

Revenue Composition

Here’s a breakdown of revenues fueled by the different phases of center development:

• - Ramp-up Centers (0-3 months): 9 centers yielding RMB23.6 million on average.
• - Growth Centers (4-12 months): 14 centers producing RMB89.6 million.
• - Mature Centers (over 12 months): 6 centers generating RMB31.2 million.

So-Young also catered to over 1,600 institutions with its supply chain solutions for injectables during this quarter, shipping approximately 39,100 units—though slightly down from 43,200 units in Q2 2024.

Executive Commentary

Xing Jin, Co-Founder and CEO of So-Young, expressed optimism about these developments, stating, "Our branded aesthetic centers have become our major revenue contributors for the first time, marking a notable milestone in our strategic transformation plan. With this expansion, we aim to scale our network, improve customer trust, and deepen engagement to maximize value for our stakeholders."

Hui Zhao, the Chief Financial Officer, reiterated the company's strategy of investing in growth. He highlighted plans to operate 50 centers by year-end, which will reflect in the financial results amidst ongoing investments aimed at sustainable growth.

Outlook

Looking ahead, So-Young anticipates Q3 2025 revenues from aesthetic treatment services to range between RMB150.0 million (US$20.9 million) and RMB170.0 million (US$23.7 million), implying a potential increase of 230.5% to 274.6% from Q3 2024. This forecast is influenced by current market conditions, customer demand, and the company's comprehensive operational plans.

In conclusion, despite some financial challenges, So-Young's commitment to innovation, customer engagement, and operational efficiency positions the company well for a promising future in the aesthetic treatment industry.