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.

Core Insights - Venus Concept Inc. reported financial results for Q2 2025, showing a total revenue of $15.7 million, which is a 5% decrease year-over-year but a 15% increase quarter-over-quarter [5][6] - The company experienced a 20% growth in total systems and subscription sales quarter-over-quarter, with U.S. revenue increasing by 5% year-over-year [3][5] - The company is focusing on cash burn management and strategic initiatives to enhance long-term growth, including the sale of its Venus Hair business for $20 million [3][5] Financial Performance - Total revenue for Q2 2025 was $15.7 million, down from $16.6 million in Q2 2024, with U.S. revenue increasing by $0.4 million to $9.7 million [5][6] - Gross profit decreased by 20% to $9.4 million, with a gross margin of 60.1%, down from 71.5% in the prior year [8] - Operating expenses rose by 6% to $18.5 million, driven by increases in general and administrative and selling and marketing expenses [9] Losses and Adjusted EBITDA - The net loss for Q2 2025 was $11.7 million, or $8.03 per share, compared to a net loss of $20.0 million, or $30.93 per share, in Q2 2024 [11] - Adjusted EBITDA loss for Q2 2025 was $8.8 million, worsening from a loss of $4.1 million in the same quarter last year [11][28] Cash Position and Debt - As of June 30, 2025, the company had cash and cash equivalents of $4.9 million and total debt obligations of approximately $34.3 million, down from $39.7 million at the end of 2024 [12] - The company has made efforts to enhance its balance sheet through various financing transactions, including raising $3.9 million in gross proceeds from equity capital transactions [3][12] Strategic Initiatives - The company announced a definitive agreement to sell its Venus Hair business for $20 million, aiming to focus on its core medical aesthetics business [3][5] - Management emphasized the importance of disciplined cost management and targeted investments to support long-term growth [3]

Q2 2025 Performance - Net sales decreased by 13.7% year-over-year to $78.2 million[10] - Delivery Systems net sales decreased by 36.5% year-over-year to $22.4 million[10] - Consumables net sales increased slightly by 0.8% year-over-year to $55.8 million[10] - Net income increased by $19.5 million year-over-year to $19.7 million[10] - Adjusted EBITDA increased by $19.1 million year-over-year to $13.9 million[10] Financial Outlook - The company expects 3Q 2025E net sales to be between $65 million and $70 million[20] - The company expects 3Q 2025E adjusted EBITDA to be between $2 million and $4 million[21] - The company expects FY 2025E net sales to be between $285 million and $300 million[21] - The company expects FY 2025E adjusted EBITDA to be between $27 million and $35 million[21] Market Position - Hydrafacial holds the 1 market share and 41% of aesthetic practices with microdermabrasion offer Hydrafacial[25] - Hydrafacial is the 2 best-known brand[26]

Core Viewpoint - So-Young International Inc. is set to report its financial results for Q2 2025 on August 15, 2025, highlighting its position as a leading aesthetic treatment platform in China [1]. Company Overview - So-Young International Inc. operates as the leading aesthetic treatment platform in China, connecting consumers with both online services and offline treatments [4]. - The company provides access to aesthetic treatments through its online platform and branded aesthetic centers, offering curated treatment information, facilitating online reservations, and delivering high-quality treatments [4]. - So-Young is involved in the development, production, and distribution of optoelectronic medical equipment and injectable products, positioning itself well for long-term growth in the medical aesthetic value chain [4]. Earnings Conference Call - The management will hold an earnings conference call on August 15, 2025, at 7:30 AM U.S. Eastern Time, with dial-in details provided for international and local participants [2]. - A telephone replay of the conference call will be available two hours after its conclusion until August 22, 2025 [3].

Core Viewpoint - The article discusses the opening of a high-end medical beauty clinic named "Shenzhen Dawi Clinic" near Huawei's headquarters, highlighting its strategic location and the background of its founder, former Baidu Vice President Qu Jing [1][2][5]. Group 1: Clinic Overview - Shenzhen Dawi Clinic officially opened on June 24, 2025, although it was established on December 23, 2024. The clinic specializes in light medical beauty services such as golden microneedling, ice point hair removal, and water light injection, targeting mid-to-high-end consumers with an average spending of 2,218 yuan per visit [6][9]. - The clinic's location near Huawei's headquarters is strategic, as it attracts a high-income clientele, primarily Huawei employees and nearby corporate workers, who appreciate the combination of high-quality service and convenience [9][10]. Group 2: Founder Background - Qu Jing has a diverse and tumultuous career, having worked in various high-profile roles, including as a journalist at Xinhua News Agency and later at Huawei and Baidu. Her experience in public relations has shaped her professional trajectory [12][13]. - In May 2024, Qu Jing faced significant backlash due to controversial statements made on social media, which negatively impacted Baidu's reputation and led to a substantial loss in market value [13][14]. - The success of her medical beauty venture remains uncertain, as the industry is highly competitive, and her ability to redefine her identity from a corporate executive to an entrepreneur will be a significant challenge [15].

Company Overview - SBC Medical Group Holdings Incorporated is a global franchise and provider of services for aesthetic clinics, headquartered in Irvine, California and Tokyo, Japan [6] - The company focuses on providing comprehensive management services to franchisee clinics, including advertising, staff management, booking reservations, and medical equipment procurement [6] Leadership Appointment - Shinya Inoue has been appointed as Chief Marketing Officer (CMO) effective July 1, 2025 [1][2] - Inoue will lead efforts to enhance the brand value of the group's portfolio, including Shonan Beauty Clinic, and will focus on digital innovation in marketing [2][3] Experience and Background of Shinya Inoue - Inoue has extensive experience in brand strategy and integrated marketing, having worked at companies such as P&G Japan, Eli Lilly Japan, Adobe, and KDDI [4] - He previously served as CMO at Pioneer Corporation, where he was responsible for launching the marketing organization and restructuring planning and communication areas [4] Strategic Vision - The company aims to strengthen its global competitiveness and contribute to the sustainable advancement of the medical aesthetics industry through strategic initiatives [3] - Inoue expressed commitment to making aesthetic medicine more accessible and transforming it into a more approachable part of everyday life [5]

Core Viewpoint - So-Young International Inc. is postponing the effective date for the planned change in the American depositary shares (ADS) ratio, which was initially set for June 30, 2025 [2][3]. Group 1: ADS Ratio Change - The company intends to change the ADS ratio from thirteen ADSs representing ten Class A ordinary shares to one ADS representing fifteen Class A ordinary shares [2]. - The decision to delay the ADS ratio change is due to the need for additional time to finalize preparations [2]. - An updated timeline for the ADS ratio change will be announced in the future [2]. Group 2: Impact on ADS Holders - The ADS ratio change will function similarly to a proportional reverse ADS split, with no changes to the Class A ordinary shares [3]. - ADS holders will not need to take any action; the exchange of old ADSs for new ADSs will occur automatically [3]. - Fractional new ADSs will not be issued; instead, fractional entitlements will be aggregated and sold, with net cash proceeds distributed to ADS holders [3]. Group 3: Price Expectations - Following the ADS ratio change, the ADS price is expected to increase proportionally, although there is no assurance that the post-change price will match or exceed the proportional price based on the pre-change price [4]. Group 4: Company Overview - So-Young International Inc. is a leading aesthetic treatment platform in China, connecting consumers with online services and offline treatments [5]. - The company offers access to aesthetic treatments through its online platform and branded aesthetic centers, providing curated treatment information and facilitating online reservations [5]. - With strong brand recognition and an efficient supply chain, So-Young is positioned for long-term growth in the medical aesthetic value chain [5].

Core Viewpoint - Venus Concept Inc. has entered into a definitive agreement to sell its Venus Hair business to MHG Co. Ltd for $20 million in cash, which is expected to enhance the company's financial condition and support strategic growth initiatives [1][2][3] Group 1: Transaction Details - The transaction is valued at $20 million, subject to customary working capital adjustments [1] - The sale includes the portfolio of hair restoration and hair transplant technologies, related equipment, services, and intellectual property, specifically for ARTAS and NeoGraft [2][3] - The transaction is anticipated to close in the third quarter of 2025, pending certain closing conditions [3] Group 2: Financial Impact - The revenue from the sale of ARTAS and NeoGraft systems, procedure kits, and warranty revenue was approximately $12.5 million in fiscal year 2024 [3] - Cash used in operations related to the hair restoration and transplant businesses totaled approximately $6.7 million in fiscal year 2024 [3] Group 3: Strategic Rationale - The CEO of Venus Concept stated that the transaction allows the company to focus on its global medical aesthetics business, which is expected to improve revenue growth and lower operating expenses [2] - Meta Healthcare Group aims to leverage the acquired technologies to expand its hair loss-related business areas and enhance R&D and manufacturing capabilities [2][5]

BEIJING, May 6, 2025 /PRNewswire/ -- So-Young International Inc. (NASDAQ: SY) ("So-Young" or the "Company"), the leading aesthetic treatment platform in China connecting consumers with online services and offline treatments, today announced that it will report its financial results for the first quarter ended March 31, 2025, before U.S. markets open on May 16, 2025. Additionally, a live and archived webcast of this conference call will be available at http://ir.soyoung.com. About So-Young International Inc. ...

Financial Data and Key Metrics Changes - InMode generated total revenue of $77.9 million in Q1 2025, a decrease of 3% compared to Q1 2024 [8] - GAAP gross margin was 78% in Q1 2025, down from 80% in Q1 2024 [8] - Non-GAAP diluted earnings per share were $0.31, compared to $0.32 in Q1 2024 [12] Business Line Data and Key Metrics Changes - Minimally invasive platforms accounted for 87% of total revenues in Q1 2025 [9] - Sales and marketing expenses decreased slightly to $39.7 million in Q1 2025 from $39.8 million in the same period last year [11] Market Data and Key Metrics Changes - International sales accounted for $38 million or 49% of total sales, a 1% increase compared to Q1 2024 [10] - Europe was the largest revenue contributor from outside the U.S., achieving record sales [10] Company Strategy and Development Direction - The company plans to unveil a new platform for the wellness market later in 2025, aiming to diversify its product offerings [6] - InMode remains committed to maintaining its workforce and not cutting costs, believing this will position the company to lead when market conditions improve [5] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing macroeconomic uncertainty and soft consumer demand affecting the medical aesthetic market [4] - The company anticipates a potential reduction in operating margins by 4% to 5% due to market pressures and U.S. tariffs [13] Other Important Information - InMode completed a share repurchase program, buying back 6.95 million shares for $127 million, returning over $412 million to shareholders in the past year [7] - The company has a strong balance sheet with cash and equivalents totaling $512.9 million as of March 31, 2025 [12] Q&A Session Summary Question: Follow-up on product mix dynamics - Management indicated that the slowdown began in mid-2023 due to rising interest rates and decreased consumer confidence, impacting capital equipment purchases [19] Question: Guidance for Q2 and market recovery - Management expressed optimism for Q2 but noted that if results do not improve significantly, guidance may need to be lowered [30] Question: Impact of tariffs on gross margins - Management explained that current tariffs could impact gross margins by approximately 2% to 3% if they remain at 10% [56] Question: Updates on operating expenses - Management confirmed that they plan to maintain investments in sales and marketing despite macro challenges [63] Question: Pricing strategy in the current market - Management decided against raising prices due to the current market conditions, emphasizing the importance of maintaining competitiveness [70] Question: Performance in Europe compared to the U.S. - Management noted that Europe performed better in Q1 2025, attributed to management changes and pricing strategies [83]