So-Young International (SY) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue was RMB 369.2 million, down 5.5% year-over-year, with a net loss attributable to shareholders of RMB 607.6 million, mainly due to a one-time goodwill impairment of RMB 540 million for Miracle Laser and continued investment in the aesthetic center network.

• Non-GAAP net loss for Q4 was RMB 53.2 million; for the full year, revenue was RMB 1.47 billion, with a net loss of RMB 589.5 million.

• The company is executing a vertical integration strategy, expanding its aesthetic center network and upstream supply chain, and focusing on long-term growth and operational resilience.

• The board declared a special cash dividend of US$0.03445 per ordinary share (US$0.0265 per ADS), totaling approximately US$3 million, funded by surplus cash.

Financial highlights

• Q4 gross profit was RMB 216.2 million, with a gross margin of 58.6%, down from RMB 252.9 million and 64.7% in Q4 2023.

• Q4 revenue declined 5.5% year-over-year, primarily due to lower So-Young Prime revenue.

• Aesthetic treatment services revenue surged 701.6% year-over-year to RMB 81.3 million in Q4, driven by network expansion.

• Cost of revenues rose 11.2% year-over-year to RMB 153.1 million, with operating expenses up 216.2% to RMB 815.2 million.

• Cash and equivalents, restricted cash, and short-term investments totaled RMB 1.25 billion as of December 31, 2024.

Outlook and guidance

• Q1 2025 revenue is expected to be between RMB 280 million and RMB 300 million, representing a 12.0% to 5.7% year-over-year decrease.

• Management anticipates steady financial improvement and a more balanced growth trajectory as the aesthetic center network expands and market conditions stabilize.