So-Young International (SY) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached RMB 407.4 million, exceeding guidance despite a 1.1% year-over-year decline, driven by strong growth in medical product sales and maintenance services.

• Non-GAAP net profit rose 43.1% year over year to RMB 22.2 million, reflecting high-quality growth and effective industry integration.

• Net income attributable was RMB 18.9 million, reversing a net loss of RMB 2.6 million a year ago.

• The company executed a vertically integrated strategy and expanded with 14 new clinics in 8 core cities, with Beijing clinic achieving profitability and high repeat customer rates.

• Growth in medical product sales and maintenance services offset declines in information and reservation services.

Financial highlights

• Sales of medical products and maintenance services grew 22.6% year over year to RMB 106 million.

• Information services and other revenues were RMB 279.2 million, down 6.6% year over year due to fewer medical service providers subscribing.

• Reservation services revenue fell 16.9% year over year to RMB 22.4 million, mainly due to policy changes.

• Operating expenses dropped 13% year over year to RMB 245.6 million, with notable reductions in G&A and R&D expenses.

• Cash and equivalents, including short-term investments, totaled RMB 1.25 billion as of June 30, 2024.

Outlook and guidance

• Q3 2024 revenue is expected between RMB 350 million and RMB 370 million, reflecting macroeconomic softness and a 4–9.2% year-over-year decrease.

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

• Long-term growth is anticipated as strategic integration of the value chain matures and market conditions stabilize.