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 the same period of 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 in Q4, 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] - Total operating expenses were RMB 815.2 million, up 216.2% year-over-year, with significant increases in sales and marketing expenses [25] Market Data and Key Metrics Changes - The total number of verified paid aesthetic treatments surpassed 81,500, with over 38,000 verified paid visits recorded [10] - The aesthetic center network demonstrated strong growth, with 19 clinics opened across nine core cities, and 11 centers achieving positive monthly operating cash flow in December [9] 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] - The aesthetic center business is seen as a new growth engine, with plans to replicate successful models across more locations [14] - The company aims to establish a leading position in the market by expanding its aesthetic center network, which currently has a low penetration rate in China [51][52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential of the aesthetic center network, citing the low market share of chain clinics in China [51] - The company anticipates steady improvement in financial performance as market conditions stabilize and the aesthetic center business continues to expand [32] - Management highlighted the importance of maintaining a balance between growth and profitability while enhancing financial resilience [67] Other Important Information - The company recorded a one-time goodwill impairment charge of RMB 540 million for its subsidiary, impacting the bottom line [7] - Cash and cash equivalents, along with term deposits and short-term investments, totaled RMB 1.25 billion as of December 31, 2024, indicating a robust cash position [30] Q&A Session Summary Question: What are the latest developments in merchant support during the industry consolidation period? - Management noted that as industry consolidation accelerates, large chain institutions are gaining market share, and So-Young is optimizing its platform to empower aesthetic institutions and improve user experience [36][37] Question: How does the company adapt its strategies for centers at different stages of development? - Management explained that differentiated operational strategies are implemented at various phases to ensure optimal performance and enhance brand influence [44][46] Question: Can the aesthetic center business maintain growth? - Management affirmed that the aesthetic center network has the capability for sustained growth, citing the low penetration rate of chain clinics in China as an opportunity for expansion [51][52] Question: What is the strategy for the upstream business? - Management discussed the integration of Miracle Laser into So-Young's upstream business, focusing on product innovation and enhancing collaboration to drive sustainable growth [58][60] Question: Could management share more insights into the company's financial outlook? - Management emphasized a commitment to sustainable growth through vertical integration, balancing growth with profitability, and maintaining financial resilience [67]

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]

Financial Performance - Total revenues for the second quarter of 2024 were RMB407.4 million (US$56.1 million), a slight decrease of 1.1% from RMB412.1 million in the same period of 2023, but exceeded the high end of guidance [2][5] - Net income attributable to So-Young International Inc. was RMB18.9 million (US$2.6 million), a significant recovery from a net loss of RMB2.6 million in the second quarter of 2023 [2][10] - Non-GAAP net income attributable to So-Young was RMB22.2 million (US$3.1 million), up from RMB15.5 million in the same period of 2023 [2][10] Operational Highlights - Average mobile monthly active users (MAUs) decreased to 1.5 million from 3.0 million in the second quarter of 2023 [3] - The number of medical service providers subscribing to information services on So-Young's platform fell to 1,174 from 1,659 in the same period of 2023 [3] - The total number of purchasing users through reservation services was 137.5 thousand, with an aggregate value of medical aesthetic treatment transactions facilitated by So-Young's platform reaching RMB427.8 million [3] Revenue Breakdown - Information services and other revenues were RMB279.2 million (US$38.4 million), down 6.6% from RMB298.9 million in the same period of 2023 [6] - Reservation services revenues decreased by 16.9% to RMB22.4 million (US$3.1 million) from RMB26.9 million in the same period of 2023 [6] - Sales of medical products and maintenance services increased by 22.6% to RMB105.8 million (US$14.6 million) from RMB86.3 million in the same period of 2023 [6] Cost and Expenses - Cost of revenues was RMB155.1 million (US$21.3 million), an increase of 3.1% from RMB150.4 million in the second quarter of 2023 [7] - Total operating expenses decreased by 13.0% to RMB245.6 million (US$33.8 million) from RMB282.4 million in the second quarter of 2023 [8] - General and administrative expenses saw a significant decrease of 23.3% to RMB70.8 million (US$9.7 million) from RMB92.3 million in the same period of 2023 [9] Business Outlook - For the third quarter of 2024, So-Young expects total revenues to be between RMB350.0 million (US$48.2 million) and RMB370.0 million (US$50.9 million), representing a decrease of 9.2% to 4.0% from the same period in 2023 [12]

Core Viewpoint - So-Young International Inc. will report its financial results for the second quarter of 2024 on August 23, 2024, before U.S. markets open [1] Group 1: Financial Reporting - The financial results will cover the period ended June 30, 2024 [1] - An earnings conference call is scheduled for August 23, 2024, at 7:30 AM U.S. Eastern Time [1] - Dial-in details for the conference call are provided for international, China, U.S., and Hong Kong participants [2] Group 2: Company Overview - So-Young International Inc. is the largest social community in China for the medical aesthetics industry [4] - The company offers reliable information and high-quality content, along with social functions on its platform [4] - So-Young is positioned to expand within the medical aesthetic industry and the growing consumption healthcare service market [4]