Financial Performance - Revenues from consolidated affiliated entities accounted for 78.9%, 80.4%, and 80.0% of total revenues for the years ended December 31, 2022, 2023, and 2024, respectively [28]. - The total revenues for the year ended December 31, 2024, amounted to RMB 1,466.7 million, a slight decrease from RMB 1,498.0 million in 2023 [52]. - The net loss attributable to So-Young International Inc. for the year ended December 31, 2024, was RMB 589.5 million, compared to a net income of RMB 21.3 million in 2023 [52]. - The total operating expenses for the year ended December 31, 2024, were RMB 1,523.6 million, an increase from RMB 1,014.7 million in 2023 [52]. - Total revenues increased by 19.1% from RMB 1,257.9 million in 2022 to RMB 1,498.0 million in 2023, but decreased by 2.1% to RMB 1,466.7 million (US$200.9 million) in 2024 [69]. - Gross profit rose by 10.3% from RMB 864.6 million in 2022 to RMB 953.7 million in 2023, but fell by 5.7% to RMB 899.1 million (US$123.2 million) in 2024 [69]. - Gross margin decreased from 68.7% in 2022 to 63.7% in 2023, and further decreased to 61.3% in 2024 [69]. Cash Flow and Liquidity - Cash and cash equivalents increased to RMB 587,749,000 in 2024 from RMB 426,119,000 in 2023, reflecting a growth of about 37.9% [55][56]. - Net cash provided by operating activities was RMB (25,633,000) for the year ended December 31, 2024, compared to RMB (25,633,000) in 2023, indicating no change in operational cash flow [58]. - The company reported a net cash increase of RMB 213,229,000 in 2024, up from RMB 432,740,000 at the beginning of the year [58]. - The total amount due from Group companies was RMB 1,894,656,000 in 2024, a decrease from RMB 2,512,057,000 in 2023, reflecting a reduction of approximately 24.5% [55][56]. - The company reported a net cash used in investing activities of RMB 202,611 thousand for 2023, compared to a net cash provided of RMB 572,212 thousand in 2022, highlighting a shift in investment strategy [59]. - The company’s cash flow from operating activities improved significantly, with a net cash provided of RMB 22,501 thousand in 2023 compared to a net cash used of RMB 112,873 thousand in 2022, showing operational efficiency [59]. Regulatory Environment - The PCAOB was unable to inspect registered public accounting firms in mainland China and Hong Kong, which could affect the trading of the company's shares under the Holding Foreign Companies Accountable Act [38]. - The company may face significant risks related to regulatory approvals and oversight in China, which could adversely affect operations and share value [36]. - Regulatory compliance is critical, as failure to obtain necessary licenses and permits could disrupt operations and delay expansion plans [90]. - The PRC tax authorities may challenge the contractual arrangements, leading to additional tax liabilities that could negatively impact the company's financial condition [187]. - The Foreign Investment Law introduces uncertainties regarding the company's corporate structure and operations, which could affect compliance and governance [190]. - The PRC government's oversight could materially affect operations and the value of the company's ADSs [206]. Operational Risks - The company faces potential legal claims and regulatory investigations related to the medical information and services offered on its platform [70]. - The company faces risks related to the acquisition of Wuhan Miracle, including challenges in integration and potential unanticipated expenses [91]. - The integration of Wuhan Miracle may result in operational challenges and could impact the anticipated benefits of the acquisition [91]. - The company must navigate a complex regulatory environment for medical equipment, which poses challenges for product acceptance and market competition [92]. - The company faces risks related to geopolitical tensions, particularly between the United States and China, which could negatively impact its business operations [161]. Market and Competitive Landscape - The online medical aesthetic service market is highly competitive, with risks of losing market share if the company cannot compete effectively [121]. - Average fee rates for medical aesthetic treatments in China are expected to decline, which could adversely affect the company's profitability and financial condition [123]. - Negative market perception of the medical aesthetic industry could lead to reduced consumer confidence and demand for services [98]. - The company’s expansion strategies may be affected by competition, regulatory challenges, and the need to adapt to local market conditions [82]. Financial Structure and Taxation - Under the PRC Enterprise Income Tax Law, dividends paid by foreign-invested enterprises to foreign non-resident investors are subject to a 10% withholding tax [41]. - The hypothetical tax scenario indicates that a 25% tax on earnings and a 10% withholding tax could reduce net distributions to shareholders to 67.5% of pre-tax earnings [42]. - The classification as a resident enterprise in mainland China could lead to a 25% PRC enterprise income tax on global income for the company and its non-resident shareholders [224]. - If deemed a resident enterprise, the company may need to withhold a 10% tax on dividends paid to non-resident shareholders, including ADS holders [227]. - The company faces uncertainties regarding the indirect transfer of equity interests and potential re-characterization of such transfers as direct transfers subject to PRC enterprise income tax [228]. Corporate Governance and Management - The company relies on maintaining high-quality content to attract and retain users, which is essential for user engagement and competitive positioning [93]. - The company relies on key employees for its success, and failure to retain them could have a material adverse effect on its business [149]. - The company has implemented strict procedures to verify the qualifications of medical service providers, but cannot guarantee all providers are fully licensed [73]. - The company has raised substantial financing since its inception to support growth and may require additional capital for brand awareness, new services, geographic expansion, and acquisitions [156]. Cash Management and Financial Reporting - The company’s internal control over financial reporting was deemed effective as of December 31, 2024, by management and its independent registered public accounting firm [171]. - The company maintains limited business insurance coverage, which may expose it to substantial costs and resource diversion if uninsured risks materialize [155]. - The company recorded share-based compensation expenses of RMB 43.3 million, RMB 36.3 million, and RMB 32.7 million (US$4.5 million) for the years 2022, 2023, and 2024, respectively [169].

Core Viewpoint - So-Young International Inc. announced a significant share purchase by its chairman, Mr. Xing Jin, which reflects his confidence in the company's long-term growth prospects [1][3]. Company Overview - So-Young International Inc. is the leading aesthetic treatment platform in China, connecting consumers with online services and offline treatments. The company offers access to aesthetic treatments through its online platform and branded aesthetic centers, providing curated treatment information and facilitating online reservations [4]. Share Purchase Details - On March 31, 2025, Mr. Xing Jin purchased 4,544,820 American depositary shares (ADSs) for a total of US$ 4,090,338, increasing his beneficial ownership to 24.9% of the company's outstanding shares. The ADSs were acquired at a price of US$ 0.9 per ADS [1][2]. Management Commentary - Mr. Xing Jin stated that the share purchase demonstrates his continued confidence in the company and its long-term growth prospects [3]. Financial Impact - The company's directors do not expect the share purchase to have any material adverse impact on its financial position and business operations [2].

Financial Data and Key Metrics Changes - In Q4 2024, total revenue was RMB 369.2 million, a decrease of 5.5% year-over-year, primarily due to a decline in revenue from So-Young Prime [23] - Net loss attributable to So-Young was RMB 607.6 million, compared to a net income of RMB 17.5 million in the same period last year [27] - Non-GAAP net loss was RMB 53.2 million, compared to a non-GAAP net income of RMB 35.7 million in Q4 2023 [27] - For the full year 2024, total revenues were RMB 1.47 billion, down 2.1% year-over-year [28] Business Line Data and Key Metrics Changes - Revenue from aesthetic treatment services surged to RMB 81.3 million, up 701.6% year-over-year, driven by the expansion of the aesthetic center business [23] - Sales of medical products and maintenance services were RMB 86.2 million, down 15.2% year-over-year, primarily due to a decrease in order volume for medical equipment [23] - Cost of aesthetic treatment services was RMB 65.2 million, up 702.3% year-over-year, reflecting the expansion of the aesthetic center business [24] Market Data and Key Metrics Changes - Total GMV for verified medical aesthetic services reached RMB 356.6 million, up 3% sequentially [17] - The total number of verified paid aesthetic treatments surpassed 81,500, with over 38,000 verified paid visits recorded [10][11] - The total number of active users exceeded 39,500, indicating strong brand appeal and market demand [11] Company Strategy and Development Direction - The company is focused on vertical integration within the aesthetic medical industry, leveraging its user base and supply chain capabilities to drive growth [7][32] - Plans to deepen presence in core cities and replicate successful aesthetic centers to expand the network further [14] - The company aims to establish a leading light medical aesthetic chain with over 1,000 locations in China, which currently has a low penetration rate of chain clinics [51][52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term strategy, emphasizing the importance of establishing a robust aesthetic center network and improving financial performance [32] - The company anticipates steady improvement in financial performance as market conditions stabilize and aesthetic center businesses expand [32] - Management acknowledged that while near-term profitability may be impacted by expansion efforts, the focus remains on sustainable high-quality growth [66] Other Important Information - The company recorded a one-time goodwill impairment charge of RMB 540 million for its subsidiary, impacting the bottom line [7] - Customer satisfaction remains high at 4.98 out of 5, indicating strong service quality [10] Q&A Session Summary Question: What are the latest developments in merchant support during the industry consolidation period? - Management highlighted the importance of differentiators for specialized medical aesthetic institutions to maintain pricing power and market presence [36][37] Question: How does the company adapt its strategies for centers at different stages of development? - Management explained the implementation of differentiated operational strategies for aesthetic centers in various phases to optimize performance and enhance brand influence [44][46] Question: Can the aesthetic center business maintain growth? - Management indicated that the aesthetic center network has significant growth potential, with low market penetration of chain clinics in China [51][52] Question: What is the strategy for the upstream business? - Management discussed the integration of Miracle Laser into the upstream business, focusing on product innovation and enhancing supply chain capabilities [58][60] Question: Could management share more insights into the company's financial outlook? - Management reiterated the commitment to sustainable growth through vertical integration and maintaining a balance between growth and profitability [66]

Core Viewpoint - So-Young International Inc. reported its financial results for Q4 and fiscal year 2024, highlighting significant growth in aesthetic treatment services despite overall revenue decline due to a one-time goodwill impairment charge. Financial Highlights - Total revenues for Q4 2024 were RMB 369.2 million (US$ 50.6 million), a decrease of 5.5% from RMB 390.6 million in Q4 2023 [7][8] - For the full year 2024, total revenues were RMB 1,466.7 million (US$ 200.9 million), a decrease of 2.1% from RMB 1,498.0 million in 2023 [9][21] - Aesthetic treatment services revenues reached RMB 81.3 million (US$ 11.1 million) in Q4 2024, marking a 701.6% increase from RMB 10.1 million in Q4 2023 [10][14] - The net loss attributable to So-Young for Q4 2024 was RMB 607.6 million (US$ 83.2 million), compared to a net income of RMB 17.5 million in Q4 2023, primarily due to a goodwill impairment charge of RMB 540.0 million (US$ 74.0 million) [8][18] - Non-GAAP net loss for Q4 2024 was RMB 53.2 million (US$ 7.3 million), compared to a non-GAAP net income of RMB 35.7 million in Q4 2023 [19][30] Operational Highlights - The number of verified paid visits in Q4 2024 exceeded 39,500, compared to approximately 2,300 in the same period of 2023 [8] - The number of active users reached over 52,000, up from approximately 2,900 in Q4 2023 [8] - As of December 31, 2024, So-Young operated 19 aesthetic centers across nine major cities, with 11 centers generating positive operating cash flow [6][8] Cost and Expenses - Total operating expenses for Q4 2024 were RMB 815.2 million (US$ 111.7 million), an increase of 216.2% from RMB 257.8 million in Q4 2023 [16] - Cost of revenues for Q4 2024 was RMB 153.1 million (US$ 21.0 million), an increase of 11.2% from RMB 137.6 million in Q4 2023 [12][22] Dividend Declaration - The board declared a special cash dividend of US$ 0.03445 per ordinary share, totaling approximately US$ 3 million, to be paid on or around April 25, 2025 [5] Business Outlook - For Q1 2025, So-Young expects total revenues to be between RMB 280.0 million (US$ 38.4 million) and RMB 300.0 million (US$ 41.1 million), representing a decrease of 12.0% to 5.7% from Q1 2024 [33]

Company Overview - So-Young International Inc. is the largest social community in China for the medical aesthetics industry, connecting consumers, professionals, and service providers [3] - The company offers reliable information and high-quality content, along with social functions and vetted medical aesthetic service providers [3] - So-Young is positioned to expand within the medical aesthetic industry value chain and into the growing consumption healthcare service market [3] Financial Results Announcement - The company has rescheduled the release of its financial results for Q4 and full year ended December 31, 2024, to before U.S. markets open on March 28, 2025 [1] - An earnings conference call will be held on March 28, 2025, at 7:30 AM U.S. Eastern Time [2] - Dial-in details for the conference call have been provided for international, U.S., and Mainland China participants [2]

Core Viewpoint - So-Young International Inc. has received approval from Nasdaq to transfer its listing from The Nasdaq Global Market to The Nasdaq Capital Market due to non-compliance with minimum bid price requirements [1][2][3] Group 1: Listing Transfer - The transfer of the Company's American depositary shares (ADSs) is effective from February 27, 2025, and will not impact trading, as the ADSs will continue to trade under the symbol "SY" [1] - The Nasdaq Capital Market operates similarly to the Nasdaq Global Market, with specific financial and corporate governance requirements for continued listing [1] Group 2: Compliance Issues - On August 29, 2024, the Company was notified of non-compliance with Nasdaq Listing Rule 5450(a)(1) due to the closing bid price being below US$1.00 for 30 consecutive business days [2] - The Company was granted an additional 180 calendar days, until August 25, 2025, to regain compliance with the minimum bid price requirement [3] - To regain compliance, the closing bid price must meet or exceed US$1.00 for a minimum of 10 consecutive business days [3] Group 3: Company Overview - So-Young International Inc. is the largest social community in China for the medical aesthetics industry, providing reliable information and high-quality content to users [5] - The Company is well-positioned to expand within the medical aesthetic industry and into the growing consumption healthcare service market [5]

Financial Data and Key Metrics Changes - Total revenue for Q3 2024 reached RMB 332 million, exceeding guidance and showing an 11.2% year-over-year increase in net income to RMB 20.3 million, while non-GAAP net income surged 133.1% year-over-year to RMB 22.2 million [5][20] - Total revenues during the quarter were RMB 371.8 million, down 3.5% year-over-year, with medical products and maintenance services growing by 18.7% year-over-year [16][20] - The company maintained a robust cash position with total cash and equivalents of RMB 1.25 billion as of September 30, 2024 [20] Business Line Data and Key Metrics Changes - The chain of clinics expanded to 17 locations, with revenue growing 67% quarter-over-quarter and all new clinics generating positive operating cash flow [6][8] - Revenue from the sales of medical products and maintenance services reached RMB 89.3 million, up 18.7% year-over-year [7] - The POP business facilitated a GMV increase of over 60% from the previous month, with per capita in-store GTV increasing 22.9% year-over-year [12] Market Data and Key Metrics Changes - The Chinese medical aesthetic market is polarizing, with mass consumers seeking cost-effective services while higher-income consumers prefer premium offerings [7][27] - The company has partnered with over 970 institutions for injectables, with shipments of its product Elasty increasing by 22% year-over-year [10] Company Strategy and Development Direction - The company aims to create a multi-dimensional competitive advantage through upstream, middle, and downstream integration, focusing on becoming a leading medical aesthetic service provider [13] - Plans to expand the clinic network through a franchise model to accelerate growth and enhance brand influence [36][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in long-term growth driven by strategic initiatives integrating the aesthetic medical industry, despite current market uncertainties [22] - The company is optimistic about the growth potential of light medical aesthetic chain clinics and aims to enhance competitiveness through vertical integration and cost optimization [27] Other Important Information - The company has invested over RMB 1 billion in building its upstream supply chain and expanding product offerings over the past three years [13] - Customer retention rates were maintained at 60%, with overall customer satisfaction at 4.98 out of 5 [8] Q&A Session Summary Question: What new changes or trends are emerging in the medical aesthetics industry? - Management noted the rise of light medical aesthetic procedures and the dominance of small institutions, indicating significant room for standardization and consolidation in the market [26][27] Question: Has there been a strategic shift for POP following the chain expansion? - Management emphasized the importance of POP and its role in attracting and retaining users, while also enhancing the experience for institutions and consumers [32] Question: What are the considerations behind implementing a franchise model? - The franchise model aims to accelerate clinic network expansion while maintaining high service standards and cost efficiency [36][39] Question: How has the management achieved a lower expense ratio and improved profitability? - Management attributed profitability to business growth, optimized costs, and refined marketing strategies, resulting in a well-managed expense ratio of 60.5% [42] Question: What competitive advantages does So-Young have over traditional upstream companies? - Management highlighted the operational advantages of their ecosystem-based approach, successful product launches, and strong marketing capabilities [47][49]

Core Viewpoint - So-Young International Inc. reported its third-quarter financial results for 2024, showing resilience in its business despite a slight decline in total revenues compared to the previous year. The company highlighted growth in medical products and maintenance services as key drivers of net income growth [1][2][4]. Financial Highlights - Total revenues for Q3 2024 were RMB371.8 million (US$53.0 million), a decrease of 3.5% from RMB385.3 million in Q3 2023 [2][4]. - Net income attributable to So-Young was RMB20.3 million (US$2.9 million), up from RMB18.3 million in the same period of 2023, marking a year-over-year increase [2][8]. - Non-GAAP net income attributable to So-Young was RMB22.2 million (US$3.2 million), significantly up from RMB9.5 million in Q3 2023, reflecting a growth rate of 133.1% [2][8]. Operational Highlights - Average mobile monthly active users (MAUs) were 1.4 million, down from 3.1 million in Q3 2023 [3]. - The number of medical service providers subscribing to So-Young's platform decreased to 1,322 from 1,397 in the same period last year [3]. - The total number of purchasing users through reservation services was 114.9 thousand, with an aggregate value of medical aesthetic treatment transactions facilitated by So-Young's platform reaching RMB346.0 million [3]. Revenue Breakdown - Information services and other revenues were RMB263.0 million (US$37.5 million), down 8.0% from RMB285.9 million in Q3 2023, primarily due to a decrease in the number of medical service providers [4]. - Reservation services revenues were RMB19.6 million (US$2.8 million), a decrease of 18.9% from RMB24.1 million in the same period of 2023, attributed to reduced consumer spending [4]. - Sales of medical products and maintenance services increased by 18.7% year-over-year to RMB89.3 million (US$12.7 million), driven by higher order volumes for cosmetic products and medical equipment [4]. Cost and Expenses - Cost of revenues was RMB142.2 million (US$20.3 million), a slight decrease of 0.3% from RMB142.6 million in Q3 2023 [5]. - Total operating expenses were RMB225.0 million (US$32.1 million), down 8.1% from RMB244.7 million in Q3 2023, with significant reductions in sales and marketing expenses [6][8]. - General and administrative expenses increased by 39.1% to RMB69.9 million (US$10.0 million), primarily due to higher share-based compensation expenses [8]. Earnings Per Share - Basic and diluted earnings per American Depositary Share (ADS) attributable to ordinary shareholders were RMB0.20 (US$0.03), compared to RMB0.18 in the same period of 2023 [9]. Business Outlook - For Q4 2024, So-Young expects total revenues to be between RMB350.0 million (US$49.9 million) and RMB370.0 million (US$52.7 million), representing a decrease of 10.4% to 5.3% from the same period in 2023 [9].

Core Points - So-Young International Inc. will report its financial results for Q3 2024 on November 20, 2024, before U.S. markets open [1] - The company is the largest social community in China for the medical aesthetics industry, providing reliable information and a platform for consumers, professionals, and service providers [4] Financial Reporting - The earnings conference call is scheduled for November 20, 2024, at 7:00 AM U.S. Eastern Time [2] - Dial-in details for the conference call include international and regional numbers, with a passcode for access [2] Company Overview - So-Young offers high-quality content and social functions, curating vetted medical aesthetic service providers [4] - The company is positioned to expand within the medical aesthetic industry and the growing consumption healthcare service market [4]

Financial Data and Key Metrics Changes - Total revenue for Q2 2024 was RMB407.4 million, exceeding the high-end of guidance, but down 1.1% year-over-year [13] - Non-GAAP net profit was RMB22.2 million, representing a 43.1% year-over-year increase [4] - Net income attributable to So-Young was RMB18.9 million, compared to a net loss of RMB2.6 million in the same period last year [15] - Basic and diluted earnings per ADS were RMB0.18, compared to losses of RMB0.02 in the same period of 2023 [15] Business Line Data and Key Metrics Changes - Revenue from medical products and maintenance services reached RMB106 million, up 22.6% year-over-year [4] - Information services and other revenues were RMB279.2 million, down 6.6% year-over-year [13] - Reservation services revenues decreased 16.9% year-over-year to RMB22.4 million [13] - GMV for medical aesthetic products and services reached RMB428 million, with over 230,000 verified orders, up around 70% and 80% respectively [7] Market Data and Key Metrics Changes - The number of verified customers increased by 85% quarter-over-quarter, with a repeat purchase rate exceeding 50% [8] - The use of private domains reached 810,000, up 14% quarter-over-quarter [7] - Shipments of the True Lift device exceeded 40,000 units, up 76% quarter-over-quarter and 130% year-over-year [10] Company Strategy and Development Direction - The company is focusing on vertical integration across the aesthetic medical industry to enhance operational efficiency and align with consumer needs [5][12] - Plans to begin franchising clinics in the second half of the year to rapidly expand footprint [9] - The strategy includes leveraging high-quality institutional partners and refining operations to strengthen competitive advantage in the mid-to-high-end market [6][12] Management Comments on Operating Environment and Future Outlook - Management noted a slowdown in consumer spending but highlighted ongoing growth in the medical aesthetic market [20] - The company anticipates that leading chains will dominate the market over the next four to five years, creating new opportunities for growth [21] - Despite macroeconomic challenges, the company remains confident in its long-term growth potential [11][17] Other Important Information - Total operating expenses were RMB245.6 million, down 13% year-over-year [14] - Cash and cash equivalents, along with term deposits, totaled RMB1.25 billion as of June 30, 2024 [16] - The company expects total revenues for Q3 2024 to be between RMB350 million and RMB370 million [16] Q&A Session Summary Question: Overall trend and consumer behavior in H2 2024 - Management acknowledged a slowdown in consumer confidence but noted that the medical aesthetic market continues to grow, driven by demand for minimally invasive services [20] Question: Outlook for the POP business - The POP business is crucial for growth, focusing on both standardized and non-standardized treatments to meet diverse consumer needs [24] Question: Factors affecting clinic chain expansion - Management identified site selection, staff recruitment, and marketing costs as key factors but noted improvements in opening efficiency [28] Question: Differentiation in the upstream sector - The company leverages its unique ecosystem to create synergies and enhance market competitiveness, setting it apart from traditional manufacturers [36] Question: Expected trend for gross margins - Management expects gross margins to be impacted in the short term due to the expansion of clinics and medical product sales, but improvements are anticipated as operations mature [40]