So-Young(US:SY) Sou Hu Cai Jing·2025-08-16 09:01Core Insights - The company reported a revenue of 676 million yuan (approximately 94.37 million USD) for the first half of 2025, a decrease of 6.9% compared to the same period last year [2] - The net loss for the first half of 2025 was 67.95 million yuan, compared to a net loss of 60,000 yuan in the same period last year [2] Q2 Financial Performance - The revenue for Q2 2025 was 379 million yuan (approximately 52.90 million USD), down 7% from 407 million yuan in the same quarter last year [5] - Medical aesthetic treatment service revenue in Q2 2025 was 144.4 million yuan (approximately 20.20 million USD), an increase of 426% from 27.4 million yuan year-over-year, driven by the expansion of brand medical aesthetic centers [5] - Information and appointment service revenue for Q2 2025 was 135.2 million yuan (approximately 18.90 million USD), a decrease of 35.6% from 209.7 million yuan year-over-year, primarily due to a reduction in the number of medical service providers subscribing to information services on the platform [5] - Sales of medical products and maintenance services in Q2 2025 were 76 million yuan (approximately 10.60 million USD), down 28.1% from 105.8 million yuan year-over-year, mainly due to a decline in medical product order volume [5] - Other service revenue in Q2 2025 was 23.2 million yuan (approximately 3.20 million USD), a decrease of 64.0% from 64.4 million yuan year-over-year, attributed to a reduction in premium service revenue [5] Profitability and Costs - Gross profit for Q2 2025 was 194 million yuan, with a gross margin of 51% [8] - Total expenses for Q2 2025 were 241.3 million yuan (approximately 33.70 million USD), a decrease of 1.8% from 245.6 million yuan year-over-year [11] - Sales and marketing expenses in Q2 2025 were 131.3 million yuan (approximately 18.30 million USD), down 0.7% from 132.3 million yuan year-over-year, mainly due to a reduction in wage costs [11] - General and administrative expenses were 78.8 million yuan, an increase of 11.3% from 70.8 million yuan year-over-year, driven by an increase in administrative staff to support business upgrades and new strategic initiatives [11] - R&D expenses were 31.2 million yuan, down 26.6% from 42.5 million yuan year-over-year, attributed to improved employee efficiency [11] Losses and Cash Position - Operating loss for Q2 2025 was 47.11 million yuan, compared to an operating profit of 6.72 million yuan in the same quarter last year, resulting in an operating margin of -12% [13] - The net loss for Q2 2025 was 34.80 million yuan, compared to a net profit of 20.12 million yuan in the same period last year [16] - As of June 30, 2025, the company held cash and cash equivalents, restricted cash, and short-term investments totaling 998.6 million yuan (approximately 139.4 million USD), down from 1.2532 billion yuan at the end of 2024 [17] Future Outlook - The company expects Q3 2025 revenue from beauty treatment services to be between 150 million yuan (approximately 20.90 million USD) and 170 million yuan (approximately 23.70 million USD), representing a year-over-year growth of 230.5% to 274.6% [17] - The company's stock price closed at 3.74 USD, down 22.73% from the previous day, with a market capitalization of 375 million USD [17]