Summary of So-Young's Q2 2025 Earnings Call Company Overview - **Company**: So-Young International Inc - **Industry**: Medical Aesthetics Key Financial Performance - Q2 2025 total revenue reached **RMB 379 million**, with aesthetic center revenue at **RMB 144 million**, marking a strategic shift as the largest revenue segment for the first time [2][3] - Total revenues decreased by **7% year-over-year** to **RMB 378.7 million**, primarily due to a decline in information service revenues [2][15] - Aesthetic treatment service revenues soared by **426.1% year-over-year** to **RMB 144.4 million** [15] - Net loss recorded at **RMB 36 million**, compared to a net income of **RMB 18.9 million** in the same period last year [16] Operational Highlights - Aesthetic center business saw a **46% quarter-over-quarter** and **426% year-over-year** revenue increase, driven by expansion to **29 centers** [2][4] - Over **100,000 active users** and **67,400 verified treatment visits** in Q2, up **24% quarter-over-quarter** and **381% year-over-year** [4] - High repeat purchase rate exceeding **60%** and customer satisfaction score of approximately **five out of five** [5] Strategic Initiatives - New treatments launched in Q2 2025 include **Miracle PLLA**, **Mermaid Skin Booster**, and **BBL Hero**, enhancing the product portfolio and increasing average revenue per user (ARPU) [2][9] - Customer acquisition strategies focus on cost efficiency, with over **70% of new clients** coming from existing customers [7][21] - Plans to open around **ten new aesthetic centers** in Q3 2025, aiming for a total of **50 centers** by the end of the year [11][17] Quality Assurance and Service Delivery - Rigorous physician selection and standardized training ensure high service quality, with nearly **90% of doctors** being specialist dermatologists [6][24] - Digitalization and AI-driven solutions enhance transparency and traceability in medical experiences [6] Market Outlook - The light medical aesthetic market in China is expected to reach around **RMB 340 billion** by 2030, with So-Young targeting a **25% market share** [20] - Current penetration in China is below **5%**, indicating substantial growth potential compared to mature markets like South Korea [20] Future Expansion Plans - Long-term goal to achieve **1,000 centers** within **8-10 years**, with a phased approach to expansion [18][19] - Plans to pilot **two to three franchise centers** in Q4 2025, with future expansion pace dependent on pilot performance [19] Cost Structure and Efficiency - Average customer acquisition cost remains low, with a focus on private domain traffic and referrals [21] - R&D expenses decreased by **26.6%** to **RMB 31.2 million**, attributed to improved staff efficiency [14] Product Strategy - Focus on anti-aging treatments and a curated product portfolio to drive repeat business and positive referrals [26][27] - Plans to introduce new light-based treatments and injectable products, enhancing the product pipeline [22][23] Conclusion So-Young's strategic shift towards aesthetic centers has resulted in significant revenue growth, despite overall revenue declines in other segments. The company is well-positioned for future expansion in the rapidly growing medical aesthetics market in China, with a focus on quality service delivery, customer acquisition efficiency, and a robust product portfolio.