So-Young(US:SY) 2 1 Shi Ji Jing Ji Bao Dao·2025-08-18 07:32Core Viewpoint - The medical beauty platform, New Oxygen (Nasdaq: SY), reported a decline in performance for the second quarter of 2025, with total revenue of 379 million yuan, a year-on-year decrease of 7%, and a net loss of 36 million yuan, compared to a profit of 18.9 million yuan in the same period last year. The revenue drop is attributed to a decrease in the number of medical service providers subscribing to the platform [2][4]. Group 1: Financial Performance - New Oxygen's revenue from medical beauty treatment services surged by 426.1% year-on-year to 144 million yuan, becoming the largest source of income for the company [2]. - The information and booking services segment continued to face pressure, with revenue of 135.2 million yuan, a decline of 35.6% compared to 209.7 million yuan in the same quarter of 2024 [4]. - The overall medical beauty market in China reached 280.4 billion yuan in 2023, with expectations to grow to 381.6 billion yuan by 2025, attracting significant interest from major internet companies [6][7]. Group 2: Business Transformation - New Oxygen is transitioning from a traditional B2B information intermediary model to a B2C vertical integrator in the medical beauty industry, facing intense competition [3]. - The company has established 29 operational chain stores in major cities, with 25 centers achieving positive monthly cash flow [5]. - The CEO anticipates that the medical beauty industry will see a significant increase in the number of chain stores, aiming for a thousand-store scale within 8 to 10 years [6]. Group 3: Industry Challenges and Opportunities - The medical beauty industry is experiencing dual challenges of intensified competition and rising consumer expectations, with platforms like Alibaba Health and Meituan diversifying their offerings [4][8]. - The CEO emphasizes that the core issue in the industry is a surplus of demand but a shortage of quality supply, presenting a key opportunity for New Oxygen's expansion [6]. - The industry is expected to undergo a transformation towards a "mass medical beauty" era as product prices normalize and quality supply increases, which will enhance the overall trust in the industry [6][9]. Group 4: Competitive Landscape - Major players like JD Health and Alibaba are actively entering the medical beauty space, with JD Health launching its first self-operated offline clinic and Alibaba creating a service matrix leveraging its ecosystem [7]. - The competition is shifting towards a model where online platforms dominate while offline services require a diverse approach, focusing on quality and customer experience [8]. - The industry is entering a phase of strong regulation, with new standards and policies being implemented to promote development and compliance [9].