So-Young International (SY) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenues were RMB 297.3 million (US$41.0 million), with a net loss of RMB 33.1 million (US$4.6 million), mainly due to increased investment in expanding branded aesthetic centers.

• The company is executing a vertical integration strategy, expanding its branded SoYoung Clinic network in major Chinese cities, focusing on high-quality, standardized, non-surgical treatments.

• 23 clinics operated in nine cities by quarter-end; 18 achieved positive monthly operating cash flow, and 16 were profitable in March.

• Customer satisfaction remains high at 4.98/5, with strong growth in paid visits and treatments year-over-year.

• Branded aesthetic centers achieved triple-digit year-over-year revenue growth, reflecting strong operational momentum.

Financial highlights

• Total revenues down 60.6% year-over-year, mainly due to fewer medical service providers subscribing to platform services.

• Aesthetic treatment services revenue surged 551.4% year-over-year to RMB 98.8 million, driven by branded center expansion.

• Cost of revenues rose 29.1% year-over-year to RMB 151.4 million, mainly from branded center expansion; cost of aesthetic treatment services up 547.6%.

• Operating expenses fell 20.4% year-over-year to RMB 189.3 million; sales and marketing, G&A, and R&D expenses all declined.

• Gross profit for Q1 2025 was RMB 145.9 million, down from RMB 201.0 million in Q1 2024.

• Net loss widened to RMB 33.1 million from RMB 21.2 million a year ago; non-GAAP net loss was RMB 31.5 million versus a profit last year.

• Cash and equivalents totaled RMB 1.1 billion as of March 31, 2025, down from RMB 1.25 billion at year-end 2024.

Outlook and guidance

• Q2 2025 aesthetic treatment services revenue expected between RMB 120–140 million, up 337.3%–410.1% year-over-year.

• Continued investment in branded clinic network and vertical integration, prioritizing long-term value over short-term gains.

• Guidance reflects current market and operating conditions and is subject to change.