#China #Beijing #ADS Ratio #Aesthetic Treatment #So-Young

So-Young Announces Plan to Change ADS Ratio

On May 30, 2025, So-Young International Inc. (Nasdaq: SY), a premier aesthetic treatment platform in China, revealed its intention to modify the ratio of its American depositary shares (ADS) to Class A ordinary shares. The current conversion of thirteen ADS representing ten Class A shares will shift to a new model where one ADS will equate to fifteen Class A shares. This strategic decision aims to optimize the investment appeal of the company's shares.

Impact of the ADS Ratio Change

For current ADS holders, this adjustment will function similarly to a reverse split, where the aggregate value remains constant, but the number of shares held will be decreasing. Effectively, this means that while shareholders will see a reduced number of ADS, the overall value of each will be expected to reflect an increase proportionate to the change.

The alteration is set to take place at the commencement of trading on June 30, 2025, reinforcing So-Young’s proactive approach in navigating market dynamics and enhancing shareholder interests. It’s noteworthy that there will be no requirement for current ADS holders to take any action, as the transition will be automatic, managed by the depositary bank. All existing ADS will be cancelled and swapped for the newly issued ones based on the new ratio.

Fractional ADS and Market Expectations

An important consideration for shareholders is that fractional new ADS will not be issued during this transition. Instead, fractional entitlements will be aggregated and sold by the depositary bank, with the net proceeds distributed to the affected ADS holders after deducting all applicable fees and expenses.

So-Young anticipates that while the price of the ADS could rise following the ratio adjustment, they caution that there are no guarantees it will achieve a valuation equal to or greater than what would be expected without the ratio change. This forecast reflects the inherent uncertainties in stock market performance and evaluating price changes.

About So-Young International Inc.

So-Young International Inc. stands out as a leading platform in the aesthetic treatment industry within China, connecting consumers with a vast array of online services and offline treatment options. The company is dedicated to providing seamless access to aesthetic treatments through its online portal and numerous branded aesthetic centers.

Among its offerings, So-Young delivers comprehensive treatment information, facilitates online reservations, and ensures high-quality aesthetics services. Furthermore, it engages in the development, production, and distribution of optoelectronic medical equipment and injectable products, aiming to integrate into the broader medical aesthetic value chain.

With robust brand recognition, extensive digital reach, competitive pricing on treatments, and a resilient supply chain, So-Young is positioned well to thrive and serve its audience over the long term.

Closing Notes

This announcement, shared under the 'safe harbor' provisions of the U.S. Private Securities Litigation Reform Act, is a clear signal of So-Young’s commitment to transparency and informing its investors of significant changes. Although the future remains uncertain, the adjustments made by the company are indicative of its strategic direction and potential for continued growth in the aesthetic treatment market. Investors and stakeholders will be watching closely as these developments unfold.

For further inquiries, interested parties can reach out to So-Young's Investor Relations team to discuss the implications and further details regarding this strategic move.