Core Viewpoint - The entry of the company into offline light medical beauty clinics has led to a public rift between upstream and downstream players in the medical beauty industry, revealing long-standing grievances over interests [2][3]. Financial Performance - The total revenue of SOYOUNG CLINIC reached 144 million yuan, marking a year-on-year increase of 426.1%, and has become the largest revenue source for the group [2][12]. - The company's total revenue for the second quarter was 378.7 million yuan, down 7% year-on-year, with a net loss of 36 million yuan compared to a net profit of 18.9 million yuan in the same period last year [12]. Business Strategy - The company has launched its self-operated light medical beauty chain, SOYOUNG CLINIC, with plans to expand from 33 stores to 50 by the end of 2025 [2][3]. - The management believes that self-revolution is a strength, despite facing resistance from some partner institutions [2][6]. Industry Dynamics - The transition from an online platform to a direct competitor has caused trust issues with former partners, leading to a trend of "de-SOYOUNG-ization" among medical beauty institutions [5][6]. - The company has faced accusations of "eating from both sides" by competing with its own partners, which has resulted in some partners withdrawing from collaboration [5][11]. Market Competition - The opening of new clinics has sparked conflicts with existing partners, including a major client that threatened to withdraw advertising spending if the new clinic opened nearby [4][5]. - The company has initiated a price war, offering services at significantly lower prices than competitors, which has drawn criticism from upstream suppliers [11]. Operational Insights - The company claims that its self-operated clinics and platform services are complementary rather than competitive, focusing on different market segments [6][12]. - Despite claims of separation, there are indications that the platform may still direct traffic to its own clinics, raising questions about the integrity of its operations [8][9].

Core Viewpoint - So-Young International Inc. reported a decline in total revenue for Q1 2025, with a significant growth in its light medical beauty chain business, indicating a strategic shift amidst increasing competition in the medical beauty industry [1][4]. Financial Performance - Total revenue for Q1 2025 was RMB 297 million, a year-on-year decrease of 6.6% [1]. - Net loss expanded from RMB 21.2 million in the same period last year to RMB 33.1 million [1]. - Revenue from the light medical beauty chain business surged by 551.4% to RMB 98.8 million, marking a record high for a single quarter [1]. Online Business Challenges - Revenue from information, reservation services, and others fell by 34.1% to RMB 143 million, previously RMB 217 million in Q1 2024 [4]. - Revenue from medical product sales and maintenance services decreased by 35.7% to RMB 55.6 million [4]. - Combined revenue from online services accounted for less than 67% of total revenue, down from 94% in the same period last year [4]. Industry Competition - The medical beauty industry is experiencing intensified competition, with major players like Alibaba Health and Meituan expanding their presence [1][4]. - New platforms such as Douyin and Xiaohongshu are reshaping traffic acquisition through live streaming and short videos, impacting traditional online models [5]. Strategic Initiatives - The company is focusing on vertical integration and business diversification to strengthen its competitive position [1]. - New-Young has launched its light medical beauty chain brand "So-Young Youth Clinic" and aims to improve service efficiency and reduce costs through centralized procurement [7][8]. - As of March 31, 2025, So-Young operates 23 medical beauty centers across nine major cities, with 18 centers achieving positive monthly cash flow [8]. Future Outlook - For Q2 2025, the company anticipates medical treatment service revenue to reach between RMB 120 million and RMB 140 million, representing a year-on-year growth of 337% to 410% [8]. - The company plans to continue expanding its offline medical beauty center business and improve operational efficiency [8].