So-Young International Inc. Q3 FY2025 earnings call

• Continued strategic build-out of branded aesthetic centers, with aesthetic center revenue showing strong growth. In Q3, aesthetic center revenue reached RMB 184 million, up 26% quarter-on-quarter and 305% year-over-year.
• As of September 30, 2025, the company operated 42 centers nationwide (41 directly operating, 1 franchise), on track to reach 50 centers by year-end.
• 20 centers achieved profitability in Q3, including all 14 mature centers, and 29 centers generated positive operating cash flow.
• Active users of So-Young clinic exceeded 130,000, verified treatment visits surpassed 89,800, and aesthetic treatment performed exceeded 194,700.
• Upgraded the quality control framework, building a 6-pillar framework covering compliance, risk control, supervision, internal audit, medical service delivery, and information security.
• Preannounced the launch of Miracle PLLA version 3 with robust presales performance (over 1,300 orders in 2 days).
• BBL treatment, as the exclusive distributor in China, contributed over 30% to revenue from blockbuster products.

Total revenue for Q3 was RMB 387 million. The aesthetic center business contributed RMB 184 million, which is a 305% year-over-year increase and approximately 8% above the guidance. This segment accounted for about 47.5% of the total revenue. Revenue from business other than the aesthetic center business decreased sequentially by RMB 31 million.

• For Q4 2025, treatment services revenues are expected to be between RMB 216 million and RMB 226 million, representing a 165.8% to 178.1% increase from the same period in 2024.
• Plan to continue disciplined expansion while maintaining focus on operational excellence and cost optimization to drive sustainable growth.

• Net loss attributable to So-Young increased mainly due to a sequential decrease in revenue from business other than the aesthetic center business.
• Potential challenges in maintaining compliance and quality control as the business expands.

Q: Hai Jingpang from CITIC Securities asked about next year's clinic opening plans.

A: By the end of 2025, the company will reach 50 centers. Next year, the number of new centers to be opened will not be less than 35, with a balanced quarterly pace to ensure new centers quickly enter operation. Focus will be on fourth-tier cities and validating the model in second-tier cities.

Q: Stacy Chen from Haitong International asked about the membership system.

A: The membership system is tiered from Level 1 to 8. Core members (Level 3 and above) grew by over 10,000 in Q3, up 40% quarter-on-quarter, contributing a high double-digit percentage of revenue with a repurchase rate of nearly 70%. Repeat customer revenue in Q3 was RMB 120 million, up 32% quarter-on-quarter, accounting for 65% of aesthetic treatment service revenues.

Q: James Wong from GS Securities asked about Miracle PLLA 3.0.

A: Miracle PLLA version 3 is an upgrade with 5 key features, Pro version accounted for 56% of purchases. Mass arrival is expected in late November, and the company plans to drive market penetration.

Q: Nelson Cheung from Citi asked about safety and compliance.

A: A 6-pillar quality control framework covers compliance, risk control, supervision, internal audit, medical service delivery, and information security. Doctors undergo regular assessments (10% acceptance rate) and emergency drills. User issue response time is under 2 hours, with issue resolution completed within 2 days and compliance rate below 1%.

Q: Jenny Xu from CICC asked about profitability improvement.

A: Focus on expanding user base, optimizing customer acquisition costs, lowering consumable costs, leveraging blockbuster products, and housing the LTV of core members to improve profitability.