Q2 2025 So-Young International Inc Earnings Call
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After management's give their prepared remarks, there will be a question and answer session.
Speaker #3: Ladies and gentlemen, thank you for standing by for So-Young's second quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode.
Mona Qiao: Ladies and gentlemen, thank you for standing by for So-Young's second quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. After management gives their prepared remarks, there will be a question and answer session. As a reminder, today's conference call is being recorded. I would now like to turn the conference over to your host for today's call, Ms. Mona Qiao. Please proceed, Mona.
As a reminder, today's conference call is being recorded.
I will now like to turn the conference over to your host for today's call Ms. Mona Chao. Please proceed.
Speaker #3: After management gives their prepared remarks, there will be a question-and-answer session. As a reminder, today's conference call is being recorded. I would now like to turn the conference over to your host for today's call.
Thank you operator, and thank you everyone for joining <unk> second quarter 2025 earnings Conference call. Joining me today on the call is Ms. Christina Cheng, our co founder Chairman and CEO and Mr. Nick Brown sack all.
Speaker #3: Ms. Mona Qiao, please proceed. Mona.
Before we begin please refer to the safe Harbor statements in our earnings release, which applies to this call as we I'll be making forward looking statements. Please also note that we will discuss GAAP measures today, which are more sort of explained and reconciled to the most comparable measures.
Speaker #4: Thank you, Operator, and thank you, everyone, for joining So-Young's second quarter 2025 earnings conference call. Joining me today on the call is Mr. Xing Jin, our co-founder, chairman, and CEO, and Mr. Hui Zhao, CFO.
Mona Qiao: Thank you, operator, and thank you everyone for joining So-Young's second quarter 2025 earnings conference call. Joining me today on the call is Mr. Xing Jin, our Co-founder, Chairman, and CEO, and Mr. Nick Zhao, CFO. Before we begin, please refer to the September statement in our earnings release, which applies to this call and will be making for a looking statement. Please also note that we will discuss the step measures today, which are more thoroughly explained and reconciled to the most comparable measures reported on the gap in our earnings release on our investor relations websites and finance with SEC. At this time, I'd like to turn the call over to Mr. Xing Jin.
Speaker #4: Before we begin, please refer to the safe harbor statement in our earnings release, which applies to this call as we will be making forward-looking statements.
So again, you have our earnings release already much terminations that five filings with SEC.
At this time I'd like to turn the call over to Mr. Xing Jin.
Speaker #4: Please also note that we will discuss the step measures today, which are more thoroughly explained and reconciled to the most comparable measures reported under GAAP in our earnings release on our Investor Relations website and filed with the SEC.
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Hello, everyone and welcome to today's earnings call.
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Speaker #4: At this time, I'd like to turn the call over to Mr. Xing Jin.
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Speaker #5: 大家好, 欢迎参加今天的财报电话会议。
Xing Jin: 大家好, 欢迎参加今天的财报电话会议。
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Speaker #4: Hello, everyone, and welcome to today's earnings call.
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Mona Qiao: Hello, everyone, and welcome to today's earnings call.
Speaker #5: 2025年二季度, 我们的线下连锁业务延续良好的发展势头, 实现规模与质量的同步提升。业务模式与战略方向获得了市场的高度认可。二季度, 公司实现总收入3.79亿元人民币, 其中连锁业务收入达到了1.44亿人民币。呃, 超越指引上线, 首次成为公司最大收入规模的业务板块。这一结构性突破标志着信仰过去几年实施的战略转型已经跨过拐点, 进入增长驱动力更加明确、业务模式更加成熟的新阶段。
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Xing Jin: clearer growth drivers and a more mature business model.
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And true to our blended ASP, that's expensive business maintained its robust momentum achieving girls infill and quality of our business model and the strategy direction. We are headed have received strong market recommendation in Q2, we generated total revenue of RMB 317, nine minimal revenue.
Speaker #4: In Q2, our branded aesthetic center business maintained its robust momentum, achieving growth in both sales and quality. Our business model and the strategic direction we are headed have received strong market recognition.
Mona Qiao: In Q2, our branded aesthetic center business maintained its robust momentum, achieving growth in both scale and quality. Our business model and the strategic direction we are headed have received strong market recognition. In Q2, we generated total revenue of RMB 379 million. Revenue from aesthetic center business reached RMB 144 million, surpassing the upper end of our guidance and making it our largest revenue contributing segment for the first time. This marks a critical inflection point in our multi-year strategic transition, ushering in a new phase with clear growth drivers and a more mature business model.
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Of our guidance and are making it our largest contributing segments for the first time. This marks a critical inflection point of a multi year strategic transformation.
Speaker #4: In Q2, we generated total revenue of RMB 379 million. Revenue from the aesthetic center business reached RMB 144 million, surpassing the upper end of our guidance and making it our largest revenue-contributing segment for the first time.
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Speaker #4: This marks a critical inflection point in our multi-year strategic transition, ushering in a new phase with clear growth drivers and a more mature business model.
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Speaker #5: 截止到今天, 我们的区域美联锁品牌信仰庆生诊所以美门店数量增至33家, 受连锁业务高速扩张和持续投入的影响, 二季度归属于信仰的净亏损为3603.9万元人民币。那GAAP口径下归属于信仰的净亏损3054.4万元人民币。未来, 随着我们不断优化服务流程, 提升客户体验, 巩固品牌影响力和口碑优势, 将会进一步提升单店运营效率和用户粘度。我们有信心实现长期的高质量可持续增长。
Xing Jin: confident in achieving long-term, high-quality, sustainable growth.
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And so what they originally on clinical last night, how I started change has gone into 33 centers due to rapid network expansion and ongoing investments. We recorded a net loss attributable to <unk> of RMB 36, Manhattan and in non-GAAP net loss of RMB 30 correspond mainly in the second quarter.
Speaker #4: As of today, our So-Young clinic, a medical aesthetic chain, has grown to 33 centers. Due to rapid network expansion and ongoing investments, we recorded a net loss attributable to So-Young of RMB 36 million and a non-GAAP net loss of RMB 30.5 million in the second quarter.
Mona Qiao: As of today, our So-Young Clinic Life Medical Aesthetic chain has grown to 33 centers. Due to rapid network expansion and ongoing investments, we recorded a net loss attributable to So-Young of RMB 36 million and a non-GAAP net loss of RMB 30.5 million in the second quarter. Going forward, as we further refine our service workflows, enhance customer experience, and strengthen our brand influence and reputation, we expect improved operational efficiency per center and enhanced customer loyalty. We remain competent in delivering sustainable, high-quality, long-term growth.
Going forward as we further refine our service workflows house customer experience and strengthen our providing floor and reputation we expect improved operational efficiency per center and in house customer loyalty, we remain confident in delivering sustainable high quality long term growth.
Speaker #4: Going forward, as we further refine our service workflows, in-house customer experience, and strengthen our brand influence and reputation, we expect improved operational efficiency per center and in-house customer loyalty.
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Speaker #4: We remain confident in delivering sustainable, high-quality long-term growth.
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Speaker #5: 下面具体分享一下我们第二季度的业务发展情况。连锁业务方面, 二季度连锁业务收入为1.44亿元人民币, 环比增长46%, 同比增长426%, 继续保持强劲增长态势。门店经营表现持续向好, 截止到六月底, 我们一共有29家信仰庆生诊所正式展业, 运营时间在三个月以上的共有20家, 其中有19家在六月实现了经营性现金流为正, 13家门店实现了月度盈利, 随着门店规模的进一步扩张, 信仰庆生诊所的整体服务量级也在快速放大。截至六月, 信仰庆生诊所累计活跃用户数超10万人, 二季度核销人次超过67,400次, 环比增长24%, 同比增长381%。核销服务点数量超过154,500个, 环比增长25%, 同比增长458%。连锁的整体复购率超过60%, 用户满意度继续保持在4.99分的高水平。二季度, 我们在持续布局新门店的同时, 继续保持领先的获客效率, 平均获客成本只有几百元, 其中成本较低的失域流量和老客带薪占新客的比例超过70%。受益于运营效率的提升, 连锁整体毛利水平环比提升约5个百分点, 信仰庆生诊所的品牌效应和运营效率正在不断增强。
Xing Jin: Q2连锁业务收入为RMB 144 million, 环比增长46%, 同比增长426%, 继续保持强劲增长态势。门店经营表现持续向好, 截止到6月底, 我们一共有29家So-Young Prime clinics正式展业, 运营时间在三个月以上的共有20家, 其中有19家在6月实现了经营性现金流为正, 13家门店实现了月度盈利。随着门店规模的进一步扩张, So-Young Prime clinics的整体服务量级也在快速放大。截至6月, So-Young Prime clinics累计活跃用户数超10万人, Q2核销人次超过67,400次, 环比增长24%, 同比增长381%。核销服务点数量超过154,500个, 环比增长25%, 同比增长458%。连锁的整体复购率超过60%, 用户满意度继续保持在4.99分的高水平。Q2我们在持续布局新门店的同时, 继续保持领先的获客效率, 平均获客成本只有几百元, 其中成本较低的私域流量和老客带薪占新客的比例超过70%。受益于运营效率的提升, 连锁整体毛利水平环比提升约5个百分点。So-Young Prime clinics的品牌效应和运营效率正在不断增强。
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Now, let me walk you through our Q2 operational highlights aesthetic treatment services.
Okay.
During the quarter, increasing 46% quarter over quarter, and a 426% year over year to RMB 144 million.
Speaker #4: Now, let me walk you through our Q2 operational highlights. Aesthetic treatment services revenue changed strongly with momentum during the quarter, increasing 36% quarter over quarter and 426% year over year to RMB 144 million.
Mona Qiao: Now, let me walk you through our Q2 operational highlights. Aesthetic treatment services revenue maintained strong growth momentum during the quarter, increasing 46% quarter over quarter and 426% year over year to RMB 144 million. Center performance also continued to improve. By the end of June, we operated 29 aesthetic centers. Among these, 20 have been open for more than three months. 19 turned operating cash flow positive in June, and 30 were profitable on a monthly basis. Alongside the continued network expansion, our overall service capacity is rapidly growing, with total number of active users exceeding 100,000 by June. Total number of verified treatment visits surpassed 67,400 in Q2, up 24% quarter over quarter and 381% year over year. The total number of verified aesthetic treatment performed reached over 154,500, up 25% quarter over quarter and 458% year over year.
Performance also continues to improve.
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20 have been opened for more than three Mt 19 times operating cash cash flow positive in June and 30 were profitable on a monthly basis.
Speaker #4: Center performance also continued to improve. By the end of June, we operated 29 aesthetic centers, among which 20 have been opened for more than three months.
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Our overall service capacity.
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Total number of active users exceeding 100 southern side, you took a number of very fine treatment basically surpassed 67400 in Q2.
Speaker #4: Lightening turned operating cash flow positive in June, and we were profitable on a monthly basis. Alongside the continued network expansion, our overall service capacity is rapidly growing.
24% quote unquote her mm 300 on a two 1% year over year and the total number of verified accessing treatment performed reached over 154525% quarter over quarter and 458% year over year.
Speaker #4: With total number of active users exceeding 100,000 by June, total number of verified treatment visits surpassed 67,000 for handling Q2. Up 24% quarter over quarter and 381% year-over-year, and the total number of verified aesthetic treatment performed reached over 154,000 by 100.
It will get paid for transfer grateful, our aesthetics central business exceeded 60% Wow customer satisfaction scores remain high asphalt plants 995.
Speaker #4: Up 25% quarter-over-quarter and 458% year-over-year. The overall repeat purchase rate for our aesthetic center business exceeded 60%. While the customer satisfaction score remained high at 4.99 out of 5, we continue to expand our network in Q2 and maintain leadership in customer acquisition efficiency.
Well, we continue to expand our network in Q2 remote chance later shipping customer acquisition efficiency carbon trade, our average customer acquisition cost to remain in Hungary is RMB range with over 70% of new customers coming from low cost private film and traffic and the referrals from existing customers.
Mona Qiao: The overall repeat purchase rate for our aesthetic center business exceeded 60%, while customer satisfaction score remained high at 4.99 out of 5. While we continue to expand our network in Q2, we maintained leadership in customer acquisition efficiency. Currently, our average customer acquisition cost remains in the hundreds RMB range, with over 70% of new customers coming from low-cost private domain traffic and referrals from existing customers. Benefiting from improved operating efficiency, the gross profit margin of our aesthetic treatment services expanded by around five percentage points sufficiently. This achievement validates So-Young Clinic's growing brand influence and operational efficiency.
Benefiting from improved operating efficiency the gross profit margin of other aesthetic treatment services expanded by around five percentage points sequentially. These achievements validate surround clinics going driving force and operational efficiency.
Speaker #4: Currently, our average customer acquisition cost remains in the hundreds of RMB range, with over 70% of new customers coming from low-cost private domain traffic and referrals from existing customers.
Speaker #4: Benefiting from improved operating efficiency, the gross profit margin of our aesthetic treatment services expanded by around 5 percentage points. This achievement validates So-Young Clinic's growing brand influence and operational efficiency.
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Speaker #5: 我们坚持标准化医疗交付, 持续聚焦医疗服务质量, 流程规范和用户体验。我们推行严格的医生筛选和培养体系, 门店里130多位全职医生都具备公立医院实习或归培背景, 其中有近90%是专业的皮肤科医生。此外, 我们全面推进数字化和AI驱动的全链路管理, 实现预约、签到、检测、咨询到治疗的全流程标准化。通过数字化的用户旅程, 每位用户都能获得清晰透明可追溯的医疗体验。
Xing Jin: 我们坚持标准化医疗交付, 持续聚焦医疗服务质量、流程规范和用户体验。我们推行严格的医生筛选和培养体系, 门店里130多位全职医生都具备公立医院实习或规培背景, 其中有近90%是专业的皮肤科医生。此外, 我们全面推进数字化和AI-driven management的全链路管理, 实现预约、签到、检测、咨询到治疗的全流程标准化。通过数字化的用户旅程, 每位用户都能获得清晰透明、可追溯的医疗体验。
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We remain committed to standardized survey.
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Physician selection and training systems that all have over 130 full time filters, having either completed anti shapes, all standardized training and public hospitals, and nearly 90% of them being specialists dermatology.
Speaker #4: We remain committed to standardized service delivery, consistently focusing on healthcare quality, procedural compliance, and user experience. We have implemented a regular physician selection and training system, with all of our over 134 doctors having either completed internships or standardized training at public hospitals, and nearly 90% of them being specialist dermatologists.
Mona Qiao: We remain committed to standardized service delivery, consistently focusing on healthcare quality, procedural compliance, and user experience. We have implemented a rigorous physician selection and training system, with all of our over 130 full-time doctors having either completed internships or standardized training at public hospitals, and nearly 90% of them being specialist dermatologists. Additionally, we are advancing end-to-end management through digitalization and AI-driven solutions, achieving full process standardization from self-service booking and check-in to testing, consultation, and treatment. This digitized approach provides every user with a clear, transparent, and truthful medical experience.
Additionally, we are on Rossi understood and management.
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Speaker #4: Additionally, we are advancing end-to-end management through digitalization and AI-driven solutions, achieving full process standardization—from self-service booking and check-in to testing consultation and treatment.
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Speaker #4: This digitized approach provides every user with a clear, transparent, and traceable medical experience.
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Speaker #5: 在项目推新方面, 二季度我们推出了奇迹童言, 每人与水光(BBL Hero)等多款广受好评的热门项目, 这些项目不仅丰富了信仰庆生诊所的医美服务矩阵, 提升了客单价, 也进一步夯实了我们的差异化竞争优势。
Xing Jin: 在项目推新方面, 二季度我们推出了奇迹童颜、美人鱼水光、BBL Hero等多款广受好评的热门项目。这些项目不仅丰富了新养庆生诊所的医美服务矩阵, 提升了客单价, 也进一步夯实了我们的差异化竞争优势。
All new treatments, we launched a number of highly acclaimed offerings in Q2, including medical T O L. A mermaid skiing, both her and BB, our hero, which expanded our medical aesthetics.
That's that takes portfolio increased arm, who had reinforced our unique competitive edge.
Speaker #4: Our new treatment launched a number of highly acclaimed offerings in Q2, including medical PLLA, Mermaid Skin Booster, and BBL Hero. This expanded our medical aesthetic portfolio, increased ARPU, and reinforced our unique competitive edge.
Mona Qiao: On new treatments, we launched a number of highly acclaimed offerings in Q2, including Miracle PLLA, Mermaid Skin Booster, and BBL Hero, which expanded our medical aesthetics portfolio, increased our pool, and reinforced our unique competitive edge.
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Speaker #5: 品牌活动方面, 二季度我们围绕奇迹童言系列携手国际IP Betty Boop, 在北京、深圳的核心商圈, 打造信仰庆生剧场快闪活动。通过IP联名与沉浸式体验, 吸引了大量年轻用户现场参与。近万人在小红书发帖进行传播, 显著提升了品牌热度和线下人气。与此同时, 我们还与自媒体创作者舒敏团队合作, 通过更具情感共鸣的内容表达, 进一步诠释青春面前人人平等的品牌理念。相关内容在女性核心用户群体中引发了热烈反响, 有效巩固了信仰庆生诊所在自媒女性客群中的专业口碑和品牌心智。
Xing Jin: 品牌活动方面，第二季度我们围绕奇迹童颜系列，携手国际IP Betty Boop在北京、深圳的核心商圈，打造新养庆生剧场快闪活动。通过IP联名与沉浸式体验，吸引了大量年轻用户现场参与，近万人在小红书发帖进行传播，显著提升了品牌热度和线下人气。与此同时，我们还与自媒体创作者舒敏团队合作，通过更具情感共鸣的内容表达，进一步诠释青春面前人人平等的品牌理念。相关内容在女性核心用户群体中引发了热烈反响，有效巩固了清养青春诊所在自美女性特群中的专业口碑和品牌心智。
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I P called riding and immersive experiences. This campaign attracted massive young customers participation with nearly 10000 users sharing their experiences on that note significantly both team, Brad, but the policy and offline engagement.
Speaker #4: Current branding: we teamed up with international IP Betty Boop around our medical PLLA series to stage So-Young theatre pop-up events in Beijing and Shenzhen CBDs during the quarter.
Mona Qiao: Turning to branding, we teamed up with international IP Betty Boop around our Miracle PLLA series to stage So-Young's lyrical pop-up events in Beijing and Shenzhen CBDs during the quarter. Through IP co-branding and immersive experiences, this campaign attracted massive young customers' participation, with nearly 10,000 users sharing their experiences on red note, significantly boosting brand visibility and offline engagement. Meanwhile, we partnered with self-media influencer Xu Ming and her team to reinforce our everyone deserves youth philosophy via emotionally resonant storytelling. The campaign resonated strongly with our core female user base, effectively reinforcing So-Young Clinic's professional reputation and brand positioning among smart, beauty-conscious women.
Speaker #4: Through IP co-branding and immersive experiences, this campaign attracted massive participation from young customers. With nearly 10,000 users sharing their experiences on web notes, we significantly boosted brand visibility and offline engagement.
Meanwhile, with partner self media, Influencer swimming and her team to reinforce our unrelenting Skus philosophy, we are in most emotionally relevant storytelling. The campaign resonated strongly with our core female user base effectively right.
Speaker #4: Meanwhile, we partnered with self-media influencer Xu Min and her team to reinforce our "everyone deserves youth" philosophy. Through emotionally resonant storytelling, the campaign resonated strongly with our core female user base, effectively reinforcing So-Young clinic's professional reputation as a brand positioning among smart, beauty-conscious women.
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Speaker #5: 在接下来的第三季度, 我们除了在一线城市开设新门店, 还计划进入部分核心二线城市, 预计三季度新开门店数量共计10家左右。展望全年, 公司预计年底门店总数将达到50家, 这将进一步扩展信仰庆生诊所的轻医美服务在全国范围内普及。同时, 我们会进一步加强标准化运营和产品创新能力, 以巩固在中国轻医美连锁行业的市场领导地位。
Xing Jin: leadership in China's light medical aesthetics chain industry.
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In the upcoming third quarter, we plan to open around 10 as that takes some tests expanding not only in first tier cities, but also into call second tier cities.
I have two the full year, we expect the total number of our aesthetic centers to reach 50 Batesville for expense the accessibility of clinics like medical aesthetics services nationwide. We will also continue to strengthen and standardized operations and product innovation capabilities.
Speaker #4: In the upcoming third quarter, we plan to open around 10 aesthetic centers, expanding not only in first-tier cities but also into core second-tier cities.
Mona Qiao: In the upcoming third quarter, we plan to open around 10 aesthetic centers, expanding not only in first-tier cities but also into core second-tier cities. Looking ahead to the full year, we expect the total number of our aesthetic centers to reach 50. This will further expand the accessibility of So-Young Clinic Life Medical Aesthetic services nationwide. We will also continue to strengthen standardized operations and product innovation capabilities, further cementing our market's leading positions in China's light medical aesthetics industry.
Speaker #4: Looking ahead to the full year, we expect the total number of our aesthetic centers to reach 50. This will further expand the accessibility of So-Young clinics, including medical aesthetic services, nationwide.
There's the maintain our market leading positions in China medical aesthetic industry.
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Speaker #4: We will also continue to strengthen standardized operations and product innovation capabilities, further cementing our market's leading position in China's less medical aesthetic industry.
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Speaker #5: 下月业务方面, 二季度我们继续推进全品类生态型医美供应链建设, 推动自研和独家代理产品在全国范围的渗透。截至二季度末, 服务的增技机构客户累计超过1600家, 增技出货量约39100支, 环比增长超40%。未来, 随着上游产品的获证与放量, 将会为连锁带来更多独家优势和成本效率的提升, 也将进一步巩固集团全产业链协同的护城河。
Xing Jin: and further consolidate the group's full industry chain synergy.
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The upstream business, we continue to be without our comprehensive medical aesthetics supply chain driving our nation, while its penetration.
That's developed and exclusively distributed products.
And Q2, the number of institutions to be served supply chain solutions for Injectables exceeded my something 600 shipments of elastic switching around 13 I felt it was my 100 units in Q2 up over 40% sequentially as our upstream projects acquire additional certification.
Speaker #4: With new upstream business, we continue to build out our comprehensive medical aesthetic supply chain, driving nationwide penetration of both self-developed and exclusively distributed products.
Mona Qiao: Building upstream business, we continue to build out our comprehensive medical aesthetic supply chain, driving nationwide penetration of both self-developed and exclusively distributed products. By the end of Q2, the number of institutions we served with supply chain solutions for injectables exceeded 1,600, with shipments of ELASTY reaching around 39,100 units in Q2, up over 40% sequentially. As our upstream products acquire additional certifications and scale, we expect to further enhance our advantage and improve cost efficiency while solidifying our mode of industry chain synergy.
Speaker #4: By the end of Q2, the number of institutions we served with supply chain solutions for injectables exceeded 1,600, with shipments of 110, reaching around 39,100 units in Q2.
On a scale, we expect to furthering house, our advantage and I'm sure of cost efficiency, while solidifying our modes alcohol industry trade synergy.
Yeah.
Speaker #4: Up over 40% sufficiently. As our upstream products acquire additional certifications and scale, we expect to further enhance our advantage and improve cost efficiency. While solidifying our moat of both industry chain synergy,
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Speaker #5: 二季度, 社区电商板块整体保持平稳, 验证医美GMV约为3亿元, 人均累计到店核销金额同比增长6%。我们持续为入驻机构和合作伙伴提供数字化运营支持, 平台生态保持健康有序发展。
Xing Jin: healthy and orderly development.
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Our hearth business to remain stable during the quarter Jamul wasteful very fine medical aesthetic services reached RMB 300 million with cardiac trying to send her juicy rate growing by 6% year over year, we continue to provide digital operation support for our partner institutions Matan and healthy.
Speaker #4: Our core business remains stable during the quarter. GMV for verified medical aesthetic services reached roughly RMB 310 million, with per-capita incentive GTV growing by 6% year-over-year.
Mona Qiao: Our platform business remains stable during the quarter. GMV for verified medical aesthetic services reached roughly RMB 300 million, with per capita incentive GTV growing by 6% year over year. We continue to provide digital operations support for partner institutions, maintaining healthy and orderly development for our platform.
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Speaker #4: We continue to provide digital operations support for partner institutions, maintaining healthy and orderly development for our platform.
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Speaker #5: 展望下半年, 我们将继续在一线城市加密门店布局, 深耕核心商圈与潜力区域。同时, 我们会继续拓展在二线城市的探索范围, 进一步扩大市场覆盖。同时, 随着门店的加密, 我们会在城市本地化品牌建设上发力, 让更多用户触达信仰庆生诊所。我们将持续优化用户体验, 与门店运营效率增强核心竞争力, 以扎实的业务根基为股东创造长期价值回报。未来, 我们将以现有机店为新起点, 在用户价值创造的道路上持续突破, 开拓更广阔的增长空间。
Xing Jin: continuously break through in creating user value, and open up broader growth space.
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Looking to the second half of 2025, we will continue to increase the density of our aesthetic sometime that's walking fourth tier cities targeting both prime commercial and high potential areas where in crazy.
Secondly is to broaden our market coverage and spend her density grows we will drive localized supply building to increase the customer.
Speaker #4: Looking to the second half of 2025, we will continue to increase the density of our aesthetic center network infrastructure in cities. Targeting both prime commercial zones and high-potential areas, while increasing our presence in second-tier cities to grow the market coverage.
Mona Qiao: Looking to the second half of 2025, we will continue to increase the density of our aesthetic center network in first-tier cities, targeting both prime commercial zones and high potential areas. We are increasing our centers in second-tier cities to broaden market coverage. As center density grows, we will drive localized brand building to increase the customer reach of So-Young Clinic in each city. We remain committed to optimizing user experience and center operational efficiency, strengthening our core competitive edge and laying a solid business foundation to deliver long-term value to our shareholders. We see the proof of the gate as a springboard, and we will keep innovating to create greater user value and unlock broader growth opportunities.
Customer reach of surround clinic each city, we remain committed to optimizing user experience and center operational efficiency strengthening our core competitive ACH I can lay a solid foundation to deliver long term value to our shareholders, we say the profile.
Speaker #4: And center density growth, we will drive localized brand building to increase the customer reach of So-Young clinic in each city. We remain committed to optimizing user experience and center operational efficiency.
As a springboard and we'll keep.
Kipp innovating to create greater user value and unlock broader growth opportunities.
Speaker #4: Strengthening our core competitive edge and laying a solid business foundation to deliver long-term value to our shareholders. We see the progress made as a springboard and will keep innovating to create greater user value and unlock broader growth opportunities.
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Who will walk through the financial results by the Q&A session.
Hello. This is Nick please note that all amounts quoted in RMB. Please also refer to our earnings release for detailed information of our comparative financial performance is a year over year basis.
Speaker #5: 现在全域可来介绍二季度的财务结果, 之后我们将进行问答环节。
Xing Jin: 现在请Nick来介绍二季度的财务结果, 之后我们将进行问答环节。
Speaker #4: Now, I hand over to our CFO, Nick, who will walk through the financial results, followed by the Q&A session.
Mona Qiao: Now, I hand over to our CFO, Nick Zhao, who will walk through the financial results followed by the Q&A session.
Total revenues during the quarter were RMB $378 7 million down 7% year over year, primarily due to a decrease in a number of medical service providers subscribing to information services on our platform.
Speaker #5: Hello, this is Nick. Please note that all amounts are quoted in RMB. Please also refer to our earnings release for detailed information on our comparative financial performances on a year-over-year basis.
Nick Zhao: Hello, this is Nick Zhao. Please note that our amounts are quoted in RMB. Please also refer to our earnings review for detailed information of our comparative financial performances on a year-over-year basis. Total revenues during the quarter were RMB 378.7 million, down 7% year over year, primarily due to a decrease in the number of medical service providers subscribing to information services on our platform. Aesthetic treatment service revenues reached RMB 144.4 million, soaring 426.1% year over year, exceeding the high end of our guidance, primarily due to the business expansion of our branded aesthetic centers. Information and reservation services revenues were RMB 135.2 million, down 35.6% year over year, primarily due to a decrease in the number of medical service providers subscribing to information services on our platform.
That's it for treatment of service revenues reached RMB $144 4 million, sorry, 426, 1% year over year exceeding the high end of our guidance primarily due to the business expansion of our branded athletic centers information on the reservation services revenues.
Speaker #5: Total revenues during the quarter were RMB 3,788.7 million, down 7% year-over-year, primarily due to a decrease in the number of medical service providers subscribing to information services on our platform.
Speaker #5: Aesthetic treatment service revenues reached RMB 144.4 million, soaring 426.1% year-over-year and exceeding the high end of our guidance. This growth was primarily due to the business expansion of our branded aesthetic centers.
RMB $135 2 million down 35, 6% year over year, primarily due to a decrease in a number of medical service providers subscribing to information services our platform.
Platform.
Speaker #5: Information and reservation services revenues were RMB 135.2 million, down 35.6% year-over-year, primarily due to a decrease in the number of medical service providers subscribing to information services on our platform.
Sales of medical products and maintenance services were RMB 76 million down 28, 1% year over year, primarily due to a decrease in order volume of medical products.
Other citizens revenues were RMB, $23 2 million down 64% year over year, primarily due to a decrease and so you're on prime.
Speaker #5: Sales of medical products and maintenance services were RMB 76 million, down 28.1% year-over-year, primarily due to a decrease in the order volume of medical products.
Nick Zhao: Sales of medical products and maintenance services were RMB 76 million, down 28.1% year over year, primarily due to a decrease in the order volume of medical products. Other services revenues were RMB 23.2 million, down 64% year over year, primarily due to a decrease in So-Young Prime. Cost of revenues were RMB 184.6 million, up 19% year over year, primarily due to a business expansion of our branded aesthetic centers. Within cost of revenues, cost of aesthetic treatment services were RMB 109.4 million, up 405.5% year over year, primarily due to the business expansion of our branded aesthetic centers. Cost of information and reservation services were RMB 16.7 million, down 47.4% year over year, which was in line with the decrease in revenue generated from information and reservation services.
Cost of revenues were RMB $184, six many up 19% year over year, primarily due to business expansion of our branded athletic centers.
Speaker #5: Other services revenues were RMB 23.2 million, down 64% year-over-year, primarily due to a decrease in So-Young Prime. Cost of revenues was RMB 184.6 million, up 19% year-over-year, primarily due to the business expansion of our branded aesthetic centers.
Within cost of revenues plus of aesthetic treatment services were RMB 100 on the $9 4 million up 405, 5% year over year, primarily due to the business expansion of our branded ethical centers.
Cost of information and the reservation services were RMB $16 7 million down 47, 4% year over year, which was in line with the decrease in revenue generated from information that the reservation services.
Speaker #5: Within the cost of revenues, the cost of aesthetic treatment services was RMB 109.4 million, up 405.5% year-over-year, primarily due to the business expansion of our branded aesthetic centers.
Cost of medical products, so and the maintenance of it as well RMB $39 5 million down 25, 8% year over year, primarily due to a decrease in cost associated with the sale of some clinical product.
Speaker #5: The cost of information and reservation services was RMB 16.7 million, down 47.4% year-over-year, which was in line with the decrease in revenue generated from information and reservation services.
Cost of other services were RMB 19 meeting, 68% year over year, primarily due to a decrease in costs associated with it. So you are implying.
Speaker #5: Cost of medical products sold and maintenance services was RMB 39.5 million, down 25.8% year-over-year, primarily due to a decrease in costs associated with the sales of medical products.
Nick Zhao: Cost of medical products sold and maintenance services were RMB 39.5 million, down 25.8% year over year, primarily due to a decrease in cost associated with the sales of medical products. Cost of other services were RMB 19 million, down 60.8% year over year, primarily due to a decrease in costs associated with So-Young Prime. Total operating expenses were RMB 241.3 million, down 1.8% year over year. Sales and marketing expenses were RMB 131.3 million, down 0.7% year over year, primarily due to the decrease of payroll costs. G&A expenses were RMB 78.8 million, up 11.3% year over year, primarily due to an increase in payroll costs associated with the expansion of administrative employees to support our business upgrade and new strategic businesses. R&D expenses were RMB 31.2 million, down 26.6% year over year, primarily attributable to improvements in staff efficiency.
Total operating expenses were RMB 200 on the $41 3 million down one 8% year over year.
Speaker #5: Cost of other services was RMB 19 million, down 60.8% year-over-year, primarily due to a decrease in costs associated with So-Young Prime. Total operating expenses were RMB 241.3 million, down 1.8% year-over-year.
And the marketing expenses were RMB, $131 3 million down 0.7% year over year, primarily due to the decrease of payroll cost.
G&A expenses were RMB 78, 8 million up 11, 3% year over year, primarily due to our increase in payroll costs associated with the expansion of our administrative employees to support our business upgrades and the newest strategic businesses.
Speaker #5: Sales and marketing expenses were RMB 131.3 million, down 0.7% year-over-year, primarily due to the decrease in payroll costs. GMA expenses were RMB 78.8 million, up 11.3% year-over-year, primarily due to an increase in payroll costs associated with the expansion of administrative employees to support our business upgrade and the new strategic businesses.
Yeah.
R&D expenses were RMB.
The $31 2 million down 26, 6% year over year, primarily attributable to improvements in stuffy efficiency.
Income tax expenses were RMB, one 9 million compared with the income tax benefit of RMB, two 6 million in the same period of 'twenty 'twenty four.
Speaker #5: R&D expenses were RMB 31.2 million, down 26.6% year-over-year, primarily attributable to improvements in staff efficiency. Income tax expenses were RMB 1.9 million, compared with the income tax benefit of RMB 2.6 million in the same period of 2024.
Net loss attributable to <unk> International Inc. Was RMB 36 million compared with net income attributable to Sylvia internationally and of RMB $18 9 million during the same period last year.
Nick Zhao: Income tax expenses were RMB 1.9 million, compared with the income tax benefit of RMB 2.6 million in the same period of 2024. Net loss attributable to So-Young International Inc. was RMB 36 million, compared with net income attributable to So-Young International Inc. of RMB 18.9 million during the same period last year. Non-GAAP net loss attributable to So-Young International Inc. was RMB 30.5 million, compared with non-GAAP net income attributable to So-Young International Inc. of RMB 22.2 million during the same period of 2024. Basic and diluted losses per ADS attributable to ordinary shareholders were RMB 0.35 and RMB 0.35, respectively, compared with basic and diluted earnings per ADS attributable to ordinary shareholders of RMB 0.18 and RMB 0.18, respectively, during the same period of 2024.
non-GAAP net loss attributable to the Soviet internationally and was RMB 35 million compared with non-GAAP net income attributable both to International Inc of RMB $22 2 million during the same period of 2024.
Speaker #5: Net loss attributable to So-Young International Inc. was RMB 36 million, compared with a net income attributable to So-Young International Inc. of RMB 18.9 million during the same period last year.
Basic and diluted losses per ads attributable to ordinary shareholders were RMB 0.35, and RMB <unk> 35, respectively, compared with basic and diluted earnings per ads attributable to ordinary shareholders of RMB, one eight and RMB feel quaint eight respectively.
Speaker #5: Non-GAAP net loss attributable to So-Young International Inc. was RMB 30.5 million, compared with non-GAAP net income attributable to So-Young International Inc. of RMB 22.2 million during the same period of 2024.
Speaker #5: Basic and diluted losses per ADS attributable to ordinary shareholders were RMB 0.35 and RMB 0.35, respectively, compared with basic and diluted earnings per ADS attributable to ordinary shareholders of RMB 0.18 and RMB 0.18, respectively, during the same period of 2024.
During the same period of time, you've done before.
We have maintained a robust cash position with cash and cash equivalent restricted cash and term deposits time deposits and short term investments totaled RMB 998, 6 million as of June 32025.
Speaker #5: We have maintained a robust cash position with a cash and cash equivalent restricted cash and term deposits, term deposits and short-term investments totaling RMB 998.6 million as of June 30th, 2025.
Moving to our outlook for the third quarter of 2025, we expect aesthetic chasing the service revenues to be between RMB 115 million and RMB 170 million.
Nick Zhao: We have maintained a robust cash position with cash and cash equivalent, restricted cash and term deposits, term deposits, and short-term investments totaling RMB 998.6 million as of June 30, 2025. Moving to our outlook for the third quarter of 2025, we expect aesthetic treatment service revenues to be between RMB 150 million and RMB 170 million, representing a 230.5% to 274.6% increase from the same period in 2024. This outlook reflects the ongoing ramping up of our branded aesthetic center network as we progress towards our year-end target of 50 centers. With ample cash reserves and a demonstrated track record of execution, we are now entering into the next phase of growth with increased confidence for the future.
Presenting a 235% to 274 six but then to inquiries from the same period in 2024. This outlook reflects the ongoing ramping up of our branded aesthetic Center network as we progress towards our year end target of 50 centers.
Speaker #5: Moving to our outlook for the third quarter of 2025, we expect aesthetic treatment service revenues to be between RMB 150 million and RMB 170 million, representing a 230.5% to 274.6% increase from the same period in 2024.
With ample cash reserves and domesticated track record of execution. We are now entering into the next phase of growth that the increased confidence for the future.
Speaker #5: This outlook reflects the ongoing ramping up of our branded aesthetic center network as we progress towards our year-end target of 50 centers. With ample cash reserves and a demonstrated track record of execution, we are now entering into the next phase of growth with increased confidence in our future.
As we scale and strengthen the influence of our ethics Centre network, we will continue to refine it as a standardized model to further he has operational consistency and efficiency, while establishing a robot the base for recurring revenues.
Speaker #5: As we scale and strengthen the influence of our aesthetic center network, we will continue to refine its standardized model to further enhance operational consistency and efficiency, while establishing a robust base for recurring revenues.
Nick Zhao: As we scale and strengthen the influence of our aesthetic center network, we will continue to refine its standardized model to further enhance operational consistency and efficiency while establishing a robust base for recurring revenues. These efforts will reinforce our cost advantages, solidify our industry leadership, and create durable long-term value for our shareholders. This concludes our key remarks. I will now turn over the call to the operator and open the call for Q&A. Operator, we are ready to take questions.
These efforts reinforce our cost advantages, so Saudi defy our industry leadership and create durable long term value for our shareholders.
This concludes our remarks.
Now I'll turn over the call to the operator and open the call for Q&A, operator, we're ready to take question.
Speaker #5: These efforts will reinforce our cost advantages, solidify our industry leadership, and create durable long-term value for our shareholders. This concludes our remarks. I will now turn over the call to the operator and open the call for Q&A.
Okay.
We will now begin the question and answer session.
To ask a question you May press Star then one unattached jonestown.
If youre using a speakerphone please pick up your handset before pressing the keys.
Speaker #5: Operator, we are ready to take questions.
Is it any time your question has been addressed and you would like to withdraw your question. Please press Star then two.
Speaker #3: We will now begin the question and answer session. To ask a question, you may press star, then one, on your touch-tone phone. If you are using a speakerphone, please pick up your handset before pressing the keys.
Operator: We will now begin the question and answer session. To ask a question, you may press star, then one on your touch-tone phone. If you are using a speaker phone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star, then two. At this time, we will pause momentarily to assemble our roster. The first question today comes from Nelson Cheung with Citibank. Please go ahead. Nelson, your line is open. You may ask your question.
At this time, we will pause momentarily to assemble our roster.
The first question today comes from doing things with the I T I C.
Speaker #3: If at any time your question has been addressed and you would like to withdraw your question, please press star then two. At this time, we will pause momentarily to assemble our roster.
My apologies. The first question comes from Nelson Cheung with Citibank. Please go ahead.
Okay.
Speaker #3: The first question today comes from Xi Jinping with C-I-T-I-C. Oh, my apologies. The first question comes from Nelson Chung with Citibank. Please go ahead.
Nothing your line is open you may ask your question.
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Speaker #3: Nelson, your line is open. You may ask your question.
Thank you Paul.
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Speaker #6: Oh, wait. Can I take a call? Wait. Thanks for the question. Thank you.
Investor/Analyst: Wait, can I take a call? 谢谢管理层接受我的提问。我的问题是关于这个青春诊所的这个开店计划, 不知道管理层可不可以分享一下今年和明年的开店计划, 有没有一个分享的? 然后就是你们现在目前的这个诊所的加盟模式, 现在是谈到怎么样的程度? 有没有一些加盟的一个策略可以分享一下呢? Let me translate my question into English. We are particularly interested in the expansion plan of your So-Young Prime clinics. Can you provide any details on what the plan looks like this year and next year, and what is the current program and strategy for our franchise model? Thank you.
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Okay, Let me translate my question English.
We are particularly interested in that.
Our expansion plan okay.
Can you provide any detail about what.
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Like this year and next year and then once the parents like that that strategy.
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Speaker #5: 你好, 感谢你的提问。我们对托店节奏有比较明确的阶段性的安排。到今年年底, 我们预计门店数量会达到50家。目前也已经完成了大部分, 下半年还会有十几家陆续开业。在重点的城市, 例如北京, 我们预计年底前能开到10家门店。明年具体的开店计划, 我们会在今年的第四季度去确定。目前我们初步认为明年的新开数量不会少于今年。随着组织能力的不断提升, 我们的连锁网络也会逐步扩展至更广阔的城市版图。长期来看, 我们对连锁业务有很强的信心。我们的目标是在8到10年之内实现约千店的一个规模。
Xing Jin: 您好，感谢您的提问。我们对拓店节奏呢，有比较明确的阶段性的安排。到今年年底呢，我们预计门店数量会达到50家。目前也已经完成了大部分，下半年呢还会有十几家陆续开业。在重点的城市，例如北京，我们预计年底前呢能开到十家门店。明年具体的开店计划呢，我们会在今年的 Q4 去确定。目前呢，我们初步认为明年的新开数量不会少于今年。随着组织能力的不断提升，我们的连锁网络呢也会逐步扩展至更广阔的城市版图。长期来看，我们对连锁业务有很强的信心。我们的目标呢是在八到十年之内实现约千店的一个规模。
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Our expanding our next lock we aim to build a number of centers to 50 by the end of this year with a large portion already own count and more than 10 clients to open in the second half Okay cities, such as Beijing, We expect to reach 10 centers by year end 'twenty to 'twenty five next year's expansion plan will be fine.
Speaker #4: We have a clear phased approach for expanding our network. We aim to grow the number of centers to 50 by the end of this year.
Mona Qiao: We have a clear phased approach for expanding our network. We aim to grow the number of centers to 50 by the end of this year, with a large portion already opened and more than 10 plans to open in the second half. In core cities such as Beijing, we expect to reach 10 centers by year-end 2025. Next year's expansion plan will be finalized in Q4 this year, though initially we anticipate new openings will match or exceed 2025 levels, as our organizational capabilities continue to strengthen our network to gradually expand to a wider range of cities. Long-term, with full confidence in our aesthetic center business, we target to achieve 1,000 centers within 8 to 10 years.
In Q4 this year. So initially we are anticipating you are okay.
Speaker #4: With a large portion already opened and more than 10 planned to open in the second half, in cities such as Beijing, we expect to reach 10 centers by year-end 2025.
Match or exceed 225 levels.
Garnett station capabilities continue to strengthen our NASA work gradually expand to a wider range of serious long term with full confidence in our aesthetic centered business, we target to achieve 1000 centers within six to 10 years.
Speaker #4: Next year's expansion plan will be finalized in Q4 this year. Though initially, we anticipate new openings will match or exceed 2025 levels. As our organizational capabilities continue to strengthen, our network will gradually expand to a wider range of cities.
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Speaker #4: Long-term, with full confidence in our aesthetic center business, we target to achieve 1,000 centers within 8 to 10 years.
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Speaker #5: 关于加盟的模式, 暂时并不是我们当下的一个重点。因为我们自由门店的CAPEX规模还是相对可控的, 回本周期也比较短。而且公司当前的现金储备也是比较充裕的。已经能够支撑较快的扩张节奏。不过作为长期布局的一部分, 加盟模式在未来的连锁扩张当中会起到重要的作用。所以我们计划在今年的四季度试点差不多2到3家加盟的门店, 后续我们会根据试点的经营状况再决定加盟扩店的一个节奏。
Xing Jin: of franchise expansion based on the operational status of these pilot centers.
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Franchising is not our immediate focus.
His primary.
Sometimes how relatively manageable capex with shorter payback periods and our ample cash reserves Colorado's proposed rapid fashion. That's that is part of our long term strategy. The franchised mono will play an important role.
Speaker #4: Franchising is not our immediate focus. This is primarily because our self-operated centers have relatively manageable CAPEX, with shorter payback periods, and our ample cash reserves can already support rapid expansion.
Mona Qiao: Franchising is not our immediate focus. This is primarily because self-operated centers have relatively manageable CapEx with shorter payback periods, and our ample cash reserves can already support rapid expansion. That said, as part of our long-term strategy, the franchise model will play an important role in future expansion. Thus, we plan to pilot two to three franchise centers in Q4 this year, and we will determine the pace of future franchise expansion based on the operational performance of these pilot centers.
Fashion that we plan to pilot.
Franchise centers in Q2.
Q4, this year and we will determine the pace of future franchise expansion based on the operational performance of these pilot centers.
Speaker #4: That said, as part of our long-term strategy, the franchise model will play an important role in future expansion. Thus, we plan to pilot two to three franchise centers in Q4 this year, and we will determine the pace of future franchise expansion.
Oh sure sure. Thank you.
The next question comes from Zhejiang thing with the I T. I C. Please go ahead.
Speaker #4: Based on the operational performance of these pilot centers,
Yes.
Yes.
Speaker #5: 谢谢。
Xing Jin: 好, 谢谢。
Sure.
Speaker #4: Thank you.
Mona Qiao: Thank you.
I wish I knew that.
Without this.
Speaker #3: The next question comes from Xi Jinping, with C-I-T-I-C. Please go ahead.
Yeah.
Operator: The next question comes from He Jingping with CITIC Securities. Please go ahead.
Hi, guys.
Okay Alright.
I'll do that.
Thank you finished out telling them that way.
Speaker #6: 好的, 感谢这次提问的机会, 也是非常感谢美洲创业组会议室和你的。在我这边想请教股票管理层这边一些问题, 就是管理层这边大概是怎么看之中国医美的市场的这样子一个空间, 然后在中国这样子一个相对兴奋竞争的市场上, 我们会如何去应对一些新的进入者的一个竞争。So let me briefly translate for myself. Thank you for taking my question and for Jingping from Securities. I have one question about the Chinese aesthetics market.
Investor/Analyst: 好的, 感谢谢谢, 谢谢。是跟您跟前美团发言组分析师何景山。我这边想要提到管理层这边一个问题, 就是管理层这边大概是怎么看, 其实 China medical aesthetics 的市场有这样子一个空间啊, 然后在中国这样子一个相对充分竞争的市场上, 我们会如何去应对一些新的进入者的一个竞争. So let me briefly translate for myself. Thank you for taking my question, and for Jim from deep securities. I have one question about the Chinese aesthetics market. How does the management view the growth potential of the Chinese medical aesthetics market? In this highly competitive market, how will you adapt to the challenge of the new player entering? That is my question. Thank you.
So you can assume that.
So let me translate for myself I. Thank you for taking my question.
It would be crazy.
One question about the Chinese market. So how does the management view of the growth potential of the Chinese.
And in this highly competitive market.
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They are entry yeah. That's my question. Thank you.
Speaker #6: So how does the management view the growth potential of the Chinese medical aesthetics market? And in this highly competitive market, how will you adapt to the challenge of new players entering?
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Speaker #6: Yeah, that's my question. Thank you.
So you're gonna hygiene benefits, Hong Kong quota, you'll find on cogent.
Speaker #5: 大家好, 感谢你的提问。我们对中国医美市场的发展前景还是非常乐观的。对比国际成熟的市场, 比如说像韩国, 它的医美渗透率已经超过了20%, 但在中国目前还不到5%。所以仍然还具备非常广阔的一个发展空间。那在中国, 我们所在的这个轻医美的赛道, 其实跟传统的手术整形相比, 我们认为它本质上来讲是新旧不同的两种模式。那轻医美的发展节奏更快, 更容易占领用户的心智。根据行业的统计数据, 我们能看到到2030年, 中国轻医美市场规模预计将达到3400亿元, 人民币。根据我们的测算, 未来中国的轻医美连锁渗透率预计将达到30%, 而信仰作为行业头部企业, 有望实现25%左右的市占率。对应的市场规模将近260亿元人民币。
Xing Jin: to achieve a market share of around 25%, corresponding to a market size of nearly RMB 26 billion.
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We remain optimistic about the prospects of China medical aesthetic market compared with much for overseas market, especially in South Korea, where the penetration rate of medical aesthetic has exceeded 20% China's car rental penetration.
5%, indicating a potential good potential there like medical aesthetics that time, China prisons.
Speaker #4: We remain optimistic about the prospects of China's medical aesthetic market. Compared with mature overseas markets, such as South Korea, where the penetration rate of medical aesthetics has exceeded 20%.
Mona Qiao: We remain optimistic about the prospects of China's medical aesthetic market. Compared with mature overseas markets such as South Korea, where the penetration rate of medical aesthetics has exceeded 20%, China's current penetration remains below 5%, indicating substantial growth potential. The light medical aesthetics sector in China represents a fundamentally distinct model versus traditional plastic surgery, as it grows at a faster pace and can capture customer mindshare more easily. According to industry data, China's light medical aesthetic market will reach around RMB 350 million by 2030. Our analysis forecasts that the penetration rate of light medical aesthetic chains in China will reach 30% in the future, and So-Young International Inc. as an industry leader is poised to achieve roughly 25% market share, translating to nearly RMB 26 billion market opportunity.
Well it is tank model versus traditional plastic surgery as it grows at a faster pace and can capture a customer mind share more easily okay.
Speaker #4: China's current penetration remains below 5%, indicating substantial growth potential. The large medical aesthetics sector in China represents a fundamentally distinct model versus traditional plastic surgery, as it grows at a faster pace and can capture customer mindshare more easily.
Turning to industry data, China light medical aesthetic market reached around RMB 302.
By 2030, our analysis forecast.
The penetration rate of large medical aesthetic chains in China, We only reached 30 different funds in the future and so yeah I think industry leader is poised to achieve roughly 25% market share translating from nearly RMB 26 billion market opportunity.
Speaker #4: According to industry data, China's large medical aesthetics market will reach around RMB 340 billion by 2030. Our analysis forecasts that the penetration rate of large medical aesthetics chains in China will reach 30% in the future, and So-Young, as an industry leader, is poised to achieve roughly 25% market share.
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Speaker #4: Translating to nearly RMB 26 billion market opportunity.
Hasan the Chi Tung, Utah side. So as you found me Antonio you do that you can't ship.
Speaker #5: 我们认为要真正把轻医美连锁品牌做好, 必须同时具备三项能力。持续低成本的获客能力, 丰富的上游供应链布局, 以及运营大规模线下连锁机构的组织能力。市场上的其他参与者在这些方面都有一定的局限性。正因为如此, 信仰将继续围绕这三项能力要素打磨基本功, 做好自己的事情。进一步巩固我们在行业中的长期竞争优势。
Xing Jin: 我们认为要真正把轻医美连锁品牌做好, 必须同时具备三项能力: 持续低成本的获客能力、丰富的上游供应链布局以及运营大规模线下连锁机构的组织能力。市场上的其他参与者在这些方面都有一定的局限性。正因为如此, So-Young International Inc. 将继续围绕这三项能力要素打磨基本功, 做好自己的事情, 进一步巩固我们在行业中的长期竞争优势。
Xiang Jiang tissue there yeah, So sunshine and lead also Tom I'll, let you go to a house with your decision to evoke a wound.
He has all the charm teachers and he also.
They do in fact to truly succeed as life medical aesthetic chain Black three core capabilities are essential first that's kind of a low cost of customer acquisition that kind of dialogue.
From supply chain and.
And Scott organizational come penthouse.
Speaker #4: We remain fast to truly succeed as a large medical aesthetics chain brand. Three core capabilities are essential. First, sustainable low-cost customer acquisition. Second, a diversified offering supply chain network.
Mona Qiao: We believe that to truly succeed as a light medical aesthetic chain brand, three core capabilities are essential. First, sustainable low-cost customer acquisition. Second, diversified upstream supply chain support. Third, organizational competence in operating a large-scale physical network. Other market players face inherent limitations in these areas. That is precisely why we will continue to focus on our business and hone our fundamental strengths around these three capabilities, further reinforcing our long-term competitive edge in the industry.
And large scale physical network other market players face inherent limitations in these areas. That's precisely why we will continue to focus on our business at horn, our fundamental strengths around the right capabilities further reinforcing our long term competitive edge in the industry.
Speaker #4: And third, organizational competence in operating a large-scale physical network. Other market players face inherent limitations in these areas. Thus, this is precisely why we will continue to focus on our business and hone our fundamental strength around these three capabilities.
Thank you.
The next question comes from Daisy Chen with Hite swung International. Please go ahead.
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Speaker #4: Further reinforcing our long-term competitive edge in the industry.
What are the physical function going to die.
Speaker #5: 谢谢。
You guys are there things that you might just want to watch it like.
Xing Jin: 谢谢。
Speaker #4: Thank you.
Mona Qiao: Thank you.
Oh, what again, so without that we all kind of I'll say all ones that go on.
Speaker #3: The next question comes from Daisy Chen with Haichung International. Please go ahead.
Operator: The next question comes from Daisy Chen with Haitong International. Please go ahead.
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Speaker #7: 管理层好, 谢谢接受我的提问。首先就是供体公司在这个二季度继续在这个线下医美诊所这块取得一个非常强劲的增长。我这边就大概围绕成本和费用问两个问题。第一个是, 在信仰的模式下面, 就获客成本是我们的一个比较显著的优势。想问一下管理层, 未来怎么看这个获客成本和这个或者说是营销费用的一个趋势? 然后第二个问题是, 也可不可以请管理层分享一下这个成本结构当中这个耗材的占比的一个未来的趋势? Maybe check with my English, my questions into English. In So-Young's business model, customer acquisition cost is one of our significant advantages.
Investor/Analyst: 管理层好. 谢谢接受我的提问. 首先，公司在 Q2 继续在线下医美诊所这块取得一个非常强劲的增长. 我这边就大概围绕成本和费用问两个问题. 第一个是，在新氧的模式下面，获客成本是我们的一个比较显著的优势. 想问一下管理层，未来怎么看这个获客成本和营销费用的一个趋势? 第二个问题是，可不可以请管理层分享一下就成本结构当中耗材的占比的一个未来的趋势? Let me just make my questions into English. In So-Young's business model, customer acquisition cost is one of our significant advantages. What is the outlook for the customer acquisition cost and the marketing expenses in the future? Regarding the cost structure, can management share your views on the future trend of the consumer goods and the share of your cost structure? Thank you.
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Speaker #7: What is the outlook for the customer acquisition cost and the marketing expenses in the future? And regarding the cost structure, can management share your views on the future trend of the consumer both and share of your cost structure?
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Speaker #7: Thank you.
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Speaker #5: 你好, 感谢你的提问。信仰在行业内一直保持相对领先的获客效率。目前我们的平均获客成本只有几百元, 其中成本较低的私域流量和老客带薪, 占新客的比例超过了70%。其中私域用户是我们的城市能提供的基盘, 也是我们经营用户社群的阵地。老客带薪我们做得很好, 转化率远高于同行。源于我们店内不推销不充值办卡的这样的一个模式, 老用户推荐没有压力, 新用户进店也没有门槛。
Xing Jin: acquisition cost只有几百元, 其中成本较低的 private domain traffic和老客带薪占新客的比例超过了70%。其中私域用户是我们的城市能启动的基盘, 也是我们经营用户社群的阵地。老客带薪我们做得很好, 转化率远高于同行, 源于我们店内不推销不充值办卡的这样的一个模式。老用户推荐没有压力, 新用户进店也没有门槛。
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The industry leaders in customer acquisition efficiency currently our average customer acquisition cost is only a few hundred RMB with over 70% of new customers coming from low cost programs don't mean traffic and referrals from existing customers.
Speaker #4: So-Young rocks among the industry leaders in customer acquisition efficiency. Currently, our average customer acquisition cost is only a few hundred RMB, with over 70% of new customers coming from low-cost private domain traffic and referrals from existing customers.
Mona Qiao: So-Young ranks among the industry leaders in customer acquisition efficiency. Currently, our average customer acquisition cost is only a few hundred RMB, with over 70% of new customers coming from low-cost private domain traffic and referrals from existing customers. Private domain customers are the launchpad we use in new cities and serve as a base for user community operations. Our performance in referrals from existing customers is particularly strong, with a conversion rate significantly higher than peers. This is driven by our incentive approach of no aggressive sales or prepaid membership card requirements. This allows existing customers to refer without pressure and lowers barriers for new customers.
Perfect storm and customers are they launchpad reuse in U S.
Yes.
Oh user community operations our performance.
It was from existing customers is particularly strong with a conversion.
Conversion rates, so you have a sense of higher than peers.
Speaker #4: Private domain customers are the launchpad we use in new cities and serve as the base for user community operations. Our performance in referrals from existing customers is particularly strong.
It's driven by our Houston hub.
No aggressive.
Prepaid membership card requirements, there's a lot of existing customers to refer without pressure.
First barriers for new customers.
Speaker #4: With the conversion rate significantly higher than peers, this is driven by our incentive approach of no aggressive sales or prepaid membership card requirements. This allows existing customers to refer without pressure and lowers barriers for new customers.
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Speaker #5: 长期来看, 我们认为真正实现低成本获客的核心路径在于品牌效应的积累。随着连锁网络在重点城市的不断加密, 尤其在北京、深圳等渗透率持续提升的城市, 我们将推进城市本地化营销投放, 重点覆盖地铁、影院等高频触点, 加大品牌曝光, 推动用户认知和营销效率的提升。
Xing Jin: 长期来看, 我们认为真正实现低成本获客的核心路径在于品牌效应的积累。随着连锁网络在重点城市的不断加密, 尤其在北京、深圳等渗透率持续提升的城市, 我们将推进城市本地化营销投放, 重点覆盖地铁、影院等高频触点, 加大品牌曝光, 推动用户认知和营销效率的提升。
I'll do that yourself.
So long term.
Cost of acquisition has accumulated gliding flooring I've ever networks densify in key cities, such as Beijing, and Shenzhen, where penetration rates are consistently increasing well they will launch a localized marketing initiatives focusing a high frequency of touch points Sunshine subways in cinemas.
Speaker #4: Long-term, we believe sustainable, low-cost acquisition hangs on accumulated brand influence. As our network intensifies in key cities such as Beijing and Shenzhen, our penetration rates are consistently increasing.
Mona Qiao: Long-term, we believe sustainable low-cost acquisition hinges on accumulated brand influence. As our network densifies in key cities such as Beijing and Shenzhen, where penetration rates are consistently increasing, we will launch localized marketing initiatives focusing on high-frequency touchpoints such as subways and cinemas to enhance brand visibility, boost customer awareness, and improve marketing efficiency.
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Speaker #4: We will launch localized marketing initiatives, focusing on high-frequency touchpoints such as subways and cinemas to enhance brand visibility, boost customer awareness, and improve marketing efficiency.
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Speaker #5: 在提升获客效率的同时, 我们也在通过提高智控供应链项目, 在连锁体系中的占比进一步优化成本结构。在光电类项目上, 我们布局了旗帜自研的CC光, 并独家代理了美国高端光子BBL产品。未来还有皮秒和黄金微针等新设备, 另外我们几年前已经布局切入上游针剂类赛道, 与上游厂家合作推出新产品, 包括大单品水光针和童颜针, 其中水光针有望在今年四季度获批。这两款产品我们享有中国区的独家代理权, 意味着我们有产品品牌定义权和定价权。此外, 预计在2026到2027年, 我们具备自主产权的两款动物类胶原产品将获批, 进一步丰富上游管线。随着智控品项持续扩充并在连锁体系中不断渗透, 我们的整体耗材成本占比将进一步下降。结合今年要开到50家门店以及签店规模的长期目标, 连锁网络的扩大将显著增强我们在采购端的一加能力, 从而持续降低耗材成本。
Xing Jin: 在提升获客效率的同时, 我们也在通过提高智控供应链项目在连锁体系中的占比, 进一步优化成本结构。在光电类项目上, 我们布局了旗帜自研的CC光, 并独家代理了美国高端光子BBL Hero产品, 未来还有皮秒和黄金微针等新设备。另外, 我们几年前已经布局切入上游针剂类赛道, 与上游厂家合作推出新产品, 包括大单品水光针和童颜针, 其中水光针有望在今年Q4获批。这两款产品我们享有中国区的独家代理权, 意味着我们有产品品牌定义权和定价权。此外, 预计在2026到2027年, 我们具备自主产权的两款动物类胶原产品将获批, 进一步丰富上游管线。随着智控品项持续扩充, 并在连锁体系中不断渗透, 我们的整体耗材成本占比将进一步下降。结合今年要开到50家门店以及千店规模的长期目标, 连锁网络的扩大将显著增强我们在采购端的议价能力, 从而持续降低耗材成本。
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Well improving customer acquisition efficiency. We are also optimizing cost structure by increasing the proportion of staff control offerings using our aesthetics sometimes.
<unk> based treatment, we offer medical lasers developed.
Speaker #4: Well, by improving customer acquisition efficiency, we are also optimizing our cost structure by increasing the proportion of self-controlled offerings used in our aesthetic centers. For large-based treatments, we offer medical lasers that are self-developed safely first and hold exclusive distribution rights for the premium American BBL treatments.
And her exclusive distribution rights for the premium American BB hour treatment with new devices, such as picosecond lasers and radio from Crazy.
Mona Qiao: While improving customer acquisition efficiency, we are also optimizing cost structure by increasing the proportion of self-controlled offerings used in our aesthetic centers. For light-based treatments, we offer medical lasers, self-developed treatment products, and hold exclusive distribution rights for the premium American BBL Hero treatments. With new devices such as picosecond lasers and radio frequency microneedling in the pipeline, additionally, after entering the upstream injectable segment a few years ago, we have been collaborating with upstream manufacturers to launch new products, including blockbuster products such as skin boosters and PLLA. The skin boosters are expected to receive approval in Q4 this year. Both products carry exclusive China distribution rights, granting us bright positioning rights and pricing power. Furthermore, we expect our two proprietary animal-derived collagen products to gain approval in 2026 or 2027, further enriching our pipelines.
Michael and then only in a pipeline. Additionally, after I'm trying to ask for an injectable segment. A few years ago, we have been collaborating with upstream manufacturers to launch new products and clothing blockbuster products, such as skin boosters and P. L. L. A the scheme voters aren't expected to receive approval in Q4.
Speaker #4: With new devices such as picosecond lasers and radio-frequency medical needling in the pipeline, additionally, after entering the upstream injectable segment a few years ago, we have been collaborating with upstream manufacturers to launch new products.
Those projects carry a exclusive China distribution rights granting us black positioning wise and pricing power for the more we expect our two preparatory animal derived collagen products to gain approval in 'twenty to 'twenty six 'twenty seven.
Speaker #4: Including blockbuster products such as skin boosters and PLLA. The skin boosters are expected to receive approval in Q4 this year. Both products carry exclusive China distribution rights.
He retrain, our pipelines and self control products are used more broadly across our network the propulsion of Keystone Gulf coast their decline.
Speaker #4: Granting us brand positioning rights and pricing power. Furthermore, we expect our two proprietary animal-derived collagen products to gain approval in 2026 or 2027, further enriching our pipelines.
Decline 50 centers targeted this year and it's solving center a long term goal discounting hallmark of our network are realistic numbers, mostly in house, our bargaining power and procurement and drive further reductions in consumable costs.
Speaker #4: And self-controlled products are used more broadly across our network. The proportion of consumable costs will further decline. With 50 centers targeted this year and a thousand-center long-term goal, this scaling of our network will significantly enhance our backing power in procurement and drive further reductions in consumable costs.
Mona Qiao: As self-controlled products are used more broadly across our network, the proportion of consumable costs will further decline. With 50 centers targeted this year and a thousand center long-term goal, the scaling of our network will significantly enhance our backing power in procurement and drive further reductions in consumable costs.
Sure sure. Thank you.
Yeah.
The next question comes from John issue with the ICC. Please go ahead.
Yeah.
Uh huh.
Great.
Uh huh.
Speaker #5: 谢谢。
Xing Jin: 谢谢。
Speaker #4: Thank
Speaker #4: you.
Yeah.
Mona Qiao: Thank you.
It wasn't going to eat the lunch.
Sure.
Speaker #3: The next question comes from Jenny Xu with C-I-C-C. Please go ahead.
Operator: The next question comes from Jenny Xu with CITIC Securities. Please go ahead.
What kind of exactly what kind of a and B E.
Sure.
Drilling knowledge about Joseph a.
No no.
You've got you know you spoke with you in trauma.
Speaker #7: 我也想听到吗? 管理层晚上好。嗯, 我想跟这个模式上的问题就是, 嗯, 因为我们看在这个传统门店里面, 其实, 呃, 医生和店长还是挺重要的这个角色吧, 就运营的这个环节里。那我们会比较依赖医生和店长吗? 那未来, 呃, 随着我们开店规模越来越大, 在整个医生招聘这方面, 呃, 会有一些瓶颈吗? 嗯, let me, repeat in English. so in traditional aesthetic centers, we believe both doctors and center managers play a very important role.
Investor/Analyst: 喂，哎，你早上好。
I see.
Xing Jin: 你好, 晚上好。
Oh, Yeah, Yeah, that's absolutely true.
Investor/Analyst: 我想接近一个模式上的问题, 就是因为我们看在这个传统门店里面, 其实医生和店长还是挺重要的这个角色吧, 对于运营的这个环节里, 那我们会比较依赖医生和电商嘛。
Uh huh.
Let me repeat it in English so in traditional athletic centers.
I mean, those downturns or something that is just temporary.
Hum in hours.
Mona Qiao: 那未来，随着我们开店规模越来越大，在整个医生招聘这方面，会有些瓶颈吗？Let me repeat in English. So in traditional aesthetic centers, we believe both doctors and center managers play very important roles. As in our aesthetic centers, as they network expanding, do we expect any bottlenecks when recruiting doctors in the future? Do we rely heavily on center managers? Thanks a lot.
I think that we're expanding.
Do we expect any bottlenecks, one recruiting top tenancy in the future.
We are like heavily young managers, thanks a lot.
Yeah.
Speaker #7: And, as in our aesthetic centers, I say network expanding, do we expect any bottlenecks when recruiting doctors in the future? And do we rely heavily on center managers? Thanks a lot.
And how concerned are you that you're right while you're so good things on that note yourself to just one kind of icon.
You don't find me I'm not sure what you meant you Sundar chunky Grandma Toryish is slowing at all.
Well done.
To call it should shoot shot sorry about the woman that gave US High school, where you don't know how the juice.
Xing Jin: 为我们的人才储备打下良好的基础。我们专注于标准化程度较高的 light medical aesthetics services, 对医生的技术要求更容易统一。新加入的医生通常能够在短时间内积累大量的实践经验, 快速上手。同时, 我们也坚持高质量团队的建设, So-Young International Inc. 当前有一百三十多位全职的医生都具备公立医院实习或者规培的背景, 近90%为专业的 dermatology doctors。我们也搭建了医生的分级诊疗体系, 根据医生等级匹配治疗项目, 也在推进大区级培训中心的一个建设, 为医生的专业成长提供系统支持。叠加双休、五险一金等保障机制以及清晰的发展通道, So-Young International Inc. 在医生群体中的职业吸引力保持在较高的水平。
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Question for social.
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Don't you buy essentially the only change that they use them.
Don't you if I recall you guys. Since you had a great Halo Beijing, Guangzhou subway triangular people call you so well.
Well, maybe a downtown La you Sundar things you cannot cheat sheet.
You you shouldn't M. G. P paid so I've shown you that Hagen Dazs Fuji patients once you leave with him. So right you Sundar Chinese who want to go that you don't just.
Did a social which as you may recall, John sheets or did you choose with our father and pulled up she onsite research Fuji Jamba juice shouldn't eat boxes I joke, all the ships.
Regarding.
There are about 40000 filters in China of medical aesthetics backed up and we continue which we said the first movie from public hospitals into this sector.
Films is solid base for our talent pipeline with focus on life medical aesthetic service where technical.
Mona Qiao: Regarding doctors, there are about 40,000 doctors in China's medical aesthetics sector, and we continue to see doctors moving from public hospitals into this sector. This forms a solid base for our talent pipeline. We focus on light medical aesthetics services, where technical requirements for doctors are easier to standardize. Newly recruited doctors can accumulate extensive practical experience in a short time and are quickly brought up to speed. Meanwhile, we are committed to building a high-quality team. All of over 130 full-time doctors have either completed internships or standardized training at public hospitals, and nearly 90% of them are specialized in dermatology. We have established a tiered diagnosis and treatment system that matches treatments to doctors based on their level.
Firemen for doctors are easier to standardize nearly newly recruited doctors kind of accumulate expose their practical experience.
It's time and I've quickly brought up to speed.
Meanwhile, we are committed to building a high quality team of over 130 full time filters have either completed in high shapes or standardized training as public hospitals.
I'm hearing a lot about sometimes on a specialized in dermatology, we have established a tiered diagnosis and treatment system that matches our treatments to doctors based on their level. We are also building original training centers to provide a structural support for their professional.
[noise] composedly benefits such as two day weekend for social insurance on housing sounds courage and transparent career path. So we all remains a highly attractive choice for doctors.
Mona Qiao: We are also building regional training centers to provide structural support for their professional growth, coupled with benefits such as two-day weekends, both social insurance and housing fund coverage, and a transparent, clear path. So-Young remains a highly attractive choice for doctors.
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Central Jon Taylor to Tims honor your life, well men's hardship Shan Shan Shan chocolate shoulder Moshe.
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Could you didn't show you don't need to.
Xing Jin: of digital management and further reduce management costs.
Sure sure. So she's young quantity Huntington Jacques is of course, its options with them, which is G O Chinese or the Shanghai police.
Shanteau, what you saw a man that is home to the Shelby you said, who should answer hi, Danielle shoes are widely justice hump Susanne So what we're doing and that means that's just a joke.
Well me away tissue cheese, all Shuja Hoffmann E G.
G, which on Duke when each of them, but.
Her name assistant manager, our organizational structure naturally reduces reliance on center managers.
Oh, perfect all online and offline service verification Moodle center managers, many handle I'm fine management, we access them primary operational metrics, such as safety customer access and consultation efficiency management marketing projects manager.
Mona Qiao: Turning to center managers, our organizational structure naturally reduces reliance on center managers. We operate on an online appointment booking and onsite service verification model. Center managers mainly handle onsite management. We assess them primarily on operational metrics such as safety, customer experience, and consultation efficiency. Management of marketing, product management, pricing, and recruitment of doctors and nurses are handled by our dedicated center operations platform. This greatly improves day-to-day efficiency at each center. We have also built a digital dashboard that enables headquarters to monitor center operations in real time. Going forward, we will continue to enhance the maturity of digital management to further reduce management costs.
Horizon.
Doctors and nurses are handled by our dedicated central operations platform.
Great.
Today efficiency at each center, we have also.
Dashboard that enables headquarters to monitor central operations, you real time going forward, we will continue between how stay maturity of digital management to further reduce management cost.
Sure sure. Thank you.
The next question comes from bin Li with High School. Please go ahead.
Uh huh.
Uh Huh, that's usually what you want to quit I assure you of course, you're going to show them whats actually going to do she found la team and that's why you know with the cartoon on some jobs, which again draw since you guys have that hunting cool yeah you.
Xing Jin: 谢谢。
Mona Qiao: Thank you.
Rachel Smith: The next question comes from Yi Bingli with Haitong Securities. Please go ahead.
If I'm in a great spot Sanchez has always had seen corn junks or realize that jonquil wow, well, it's all of them, yet, but I'm not familiar with Hitachi call for young with Aesop.
Mona Qiao: 我这边主要想请教一下在产品和运营方面的规划. 想请教一下 So-Young Clinic Life Medical Aesthetic centers 未来在品项规划和策略方面有什么与其他机构不一样的地方. Let me translate myself. Congratulations first for achieving high-quality growth in the aesthetic center business. I would like to ask what factors will differentiate So-Young's product strategy and planning from others in the future. Thank you.
Let me translate myself and congratulations first for achieving high quality growth in the Atlantic Central business and I would like to ask what factors differentiate Williams brought back to strategy and planning from others in the future. Thank you.
Let me translate myself and congratulations first for achieving high quality growth in the Atlantic Central business and I would like to ask what factors differentiate so young product strategy and planning from others in the future. Okay. Thank you.
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So he may Chico E D job done Peter.
Yeah.
Xing Jin: gross profit margin and not incur losses for customer acquisition.
I told you earlier, sometimes pseudo Moshe with home shield.
Hmm, Okay Sidney that she was like.
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She owns I had to jump on it yourself go Zhengzhou Chongqing Shijiazhuang.
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Our product strategy focus on anti aging treatments with all treatments.
She also had some junk rallies all cause and shutting down some cheetah zombie well.
Around core theme to ensure consistency across our entire portfolio. Unlike some institutions that use low priced single contacts to attractive.
Well then Jensen.
Shinto Elchibey, Jim condo multi shipping.
But would you draw accretion email.
Customers and upsell to more professional lines, we emphasize overall cost effectiveness will make sure each treatment delivers a healthy gross margin and don't rely on loss, making products to attract customers.
Mona Qiao: Our product strategy focuses on anti-aging treatments, with all treatments developed around this core theme to ensure consistency across our entire portfolio. Unlike some institutions that use low-priced single products to attract customers and then upsell to more profitable ones, we emphasize overall cost effectiveness. We make sure each treatment delivers a healthy gross margin and do not rely on loss-making products to attract customers.
Our product strategy focus on anti aging treatments with all treatments.
Around this core thing to ensure consistency across our entire portfolio. Unlike some institutions that use low priced single contacts to attractive customers and upsell to more professional life. We emphasize overall cost effectiveness, we make sure each treatment delivers.
Yeah.
Well my sister she teaches about engine failure.
Belgium, so shouldn't saw showed us some cushion and thoughtful things. So people don't show up in phones I shoveled, it two or three things.
Healthy gross margin and don't rely lossmaking products to attract customers.
Well remember that I told you. This show you some of the future bulk wants you to.
Yes.
Xing Jin: word-of-mouth through optimal selection.
Sure.
Well it says you're tweaking them he told you.
So you don't go shelf will go you kobe's humble.
That was just as you saw showed us some thoughtful things so people don't show up in phones I shoveled it to our faith I need to tell me.
We continue to advance our blockbuster strategy.
The goal is to have a smaller number of core treatment contribute most to revenue, but they focus on the eye treatments level rather than individual products.
Well remember that I'm being told that they show you some of the Tucson bulk wants you to.
Paul You also shouldn't you paid on cold shelf will go you called Beach on Board.
It's similar to Sam's club to read his best selling model, where only the very best options are selected to drive strong repeat business and the positive word of mouth referrals.
Mona Qiao: We continue to advance our blockbuster product approach. The goal is to have a small number of core treatments contribute most to revenue, with a focus on the treatment level rather than individual products. Our approach is similar to Sam's Club curated bestseller model, where only the very best options are selected to drive strong repeat business and positive word-of-mouth referrals.
We continue to advance our blockbuster strategy. The goal is to have a smaller number of core treatment contributes to revenue I mean, they focus on the trismus lateral rather that individual product. Our approach is similar to Sam's club to Richard fastest Telemundo, where only the very best options are.
Yeah.
They lie on the neo quake, so she'll Hobbs Felicia.
Don't tie children's downtown Detroit, knowing each a bunch who sits on the future.
I should've being what.
In addition to yeah, Farquhar, social they don't put Ciabatta mango juice.
Selected to drive strong repeat business and the positive word of mouth referrals.
Cause future two bases on shouldn't do that sometimes you keep out swarm and then they shouldn't do it.
Xing Jin: 未来我们也会持续优化品类结构, 动态调整大单品策略。我们会密切关注市场需求和竞争态势的变化, 以及新品研发和上市的动态, 确保能够及时引入符合用户需求、具备市场潜力的新产品, 以保持我们的领先地位。
They lie on the Neo quake, so she'll obsolete you go.
I don't have children, who truly are well known.
<unk> forward, we will continue to optimize our product portfolio and dynamically adjusted professor of projects, we will closely monitor change in market demand and competitive choice.
Sure Glenn who sits on its future.
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Trip all Nuncle G series, four with future two bases on Saturday that sometimes he he bought swarm, Italy shouldn't do it.
This new product RFC and launch dynamics. This approach will allow us to introduce new products that address customer demand.
Mona Qiao: Going forward, we will continue to optimize our product portfolio and dynamically adjust it based on faster products. We will closely monitor changes in market demand and competitive traits, as well as new product RFP and launch dynamics. This approach will allow us to introduce new products that address customer demand in a timely manner and have strong market potential to maintain our leading position.
Going forward, we will continue to optimize our product portfolio and dynamically adjusted paper factory projects, we will closely monitor change in market demand and competitive choice as well as new product RFC and launch dynamics. This approach will allow us to introduce new products that are.
Tommy miner and have strong market potential to maintain our leading position.
Sure sure. Thank you.
The next question comes from James Jang with Northland Securities. Please go ahead.
The address customer demand in a timely manner and have strong market potential to maintain our leading position.
Hi, Hello. This is James James Gela Valspar for Securities and my question U S. In addition to your assets that takes center business. We are also very interested in our pump business can management provide any updates on future development plans for <unk>.
Xing Jin: 谢谢。
Mona Qiao: Thank you.
Thank you.
Rachel Smith: The next question comes from James Zhang with Dawson Securities. Please go ahead.
The next question comes from James Jang with Dawson Securities. Please go ahead.
Mona Qiao: Hello, ladies. It is Jim Zhang. I am from Guosen Securities, and my question is, in addition to your aesthetic center business, we are also very interested in your platform business. Can management provide any updates on future development plans for the platform business?
Hi, Hello. This is James James Jello fell off for Securities and my question U S. In addition to your assets that takes center business. We are also very interested in our pump business can management provide any updates on fuel charge of Boston times four.
The PA business a good wines.
How much of a holler shilha Fujian Shandong. Thanks, you said John Law Judge Williamsport, Yeah, well July one when you have <unk>, who know lumps in high yield and fungi.
That's usually something that pulp with a great platform here to what women Gwatney Italian business.
And as soon as I'll talk to you soon.
The PA business a good wines, how I saw how it shook out Fujian Shandong and she said you all know judge Williamsport, Yeah, well July when we get beat all buying things. We're now launching how you always have I got that juices on their laptop with a patchwork quilt possible I'm, yet to what women Gwatney Italian Norwegian doesn't seem to have children.
Xing Jin: 各位管理层晚上好, 我是华府证券的分析师张望。其实除了连锁业务之外, 我们也比较关心互联网平台业务一些发展。其实像未来泡泡的发展规划方面, 我们管理层有没有一些更新的想法? 谢谢。
And you can see that event.
Probably you will not you just said a woman Molly.
So if you don't call deal about car.
Sure I'm not sure that your daughter, so do I also applaud the downtime you only I'm sure it's in Wichita and either in the joint venture as well.
Well normally tissue draw somebody local unquote virtually all of the new renewed gotcha.
Xing Jin: to control costs and maintain good profit margin performance.
You won't see that event.
Probably you will not you just said what Molly June ish, if you don't call deal about car sharing I'm, not saying that you do the solute languish or I should say much at all either in the joint ventures.
Our business has always been a relatively.
Relatively high gross margins nice margin well then you Hum fluctuates this quarter. It remains a key pillar of the group's conference ability, we will maintain our strict cost controls to preserve healthy margins.
Well no wage as usual household but in Oklahoma.
Virtually all of the new renewed gotcha.
Mona Qiao: Our platform business has always been a segment with relatively high gross margins and net margins. While revenue has fluctuated this quarter, it remains a key pillar of the group's profitability. We will maintain strict cost controls to preserve these healthy margins.
Our business has always been a.
Sheila I notice you didn't actually yeah with that so as you of course I don't know what did you do to really the only public really actually able to sit at home.
Relatively high gross margin nice margin well then you Hum fluctuates this quarter. It remains a key pillar of the group's profitability, we will maintain our strict cost controls to preserve healthy margins.
The initial they wouldnt dial a taller than they used to do a deal.
Bulk of homegrown law that should call your telephone dumbfound. So what are the Seattle.
Typically you would say Xi'an children's usual its usual, Belgium tune in for that whole should yes.
Xing Jin: 包括通过老带新、公益投放等方式获得的新用户。这部分用户在So-Young Prime clinics接受标准化 light medical aesthetics服务的同时, 也会产生一些像手术整形、微整形等偏非标化的需求。因此, 我们计划在平台建立更精细的 merchant classification评级机制, 结合用户的行为和偏好, 定向推荐用户至优质的平台业务商家, 从而提升流量变现的效率, 为整个平台业务带来新的增量空间。
Sheila I notice you didn't actually you would so here of course I don't know what did you do it with one paw before they're actually able to should hold shares.
So if you're selling shirts and shoes.
P I N C. Delphi that's useful.
The initial label, Thailand, Thailand, I used to do a deal.
So when she wants out of Shanghai, Jenny you're going to see those sounds awesome nations you teach the Joker.
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Yehuda She will eclipse you hope Duchenne TJ annual quota Youll, just got published on John Choi T somebody who don't pay for Michelle you made some good.
Typically you would say Xi'an children's usual its usual, Belgium, hochuli food at home should yeah. So you said sounds so sometimes you know they don't shoot them P. I N C Bell Potter shuttle.
Tyler shootouts and they'll call Jim.
On the G. Hawkeye G Hi, Jenny you're going to see those songs you often leaves you teach a joke.
And if I might ask that takes some time. Therefore continues to expand we will activate promo just synergies between the pop and aesthetic spend habits.
Yeah Cool Yehuda she'll work with you all.
T J O. What your yields are they publish on John Choi T somebody who don't pay for Michelle you made some glimpse dialogue, she nuts and they'll call Jim.
I started some test drive a large volume of high quality traffic, including new customers acquired.
Photo programs and public domain traffic well these customers received a standardized lunch medical aesthetic services.
Mona Qiao: As our aesthetic center network continues to expand, we will actively promote synergies between the platform business and aesthetic center. Our aesthetic centers drive a large volume of high-quality traffic, including new customers acquired through referral programs and private domain traffic. While these customers receive standardized light medical aesthetic services at our So-Young Prime clinics, they also generate demand for non-standardized surgical and minimally invasive procedures. We plan to establish a more refined merchant classification and rating mechanism on our platform. By leveraging user behavior and preferences, we will be able to make targeted recommendations for high-quality platform business merchants. This will improve traffic monetization efficiency and create new incremental growth for the platform business.
Cause our aesthetics ventana from AR continues to expand we will activate promo just synergies between the pop and athletic spend habits.
Clinics. They also generates the Mt. Four now standardized surgical and minimally invasive procedures, we plan to establish a more refined much merch has classification as a REIT team of counties them on our platform by leveraging user behavior and preferences, where they are able to.
I’m gonna asthmatic son test drive a large volume of high-quality traffic, including new customers acquired through referral programs and public domain traffic.
These customers.
Our diverse lines of medical aesthetic services.
Now clinics also generate the amount for our now standardized surgical procedures as minimally invasive procedures. We plan to establish a more refined classification as a team of counties on our platform by leveraging user behavior and preferences, where they were able to.
It makes targeted recommendations for a high quality pulp merchant base.
Traffic monetization efficiency and create new incremental growth for the parts business.
Sure. Thank you.
Yeah.
This concludes our question and answer session I would like to turn the conference back over for any closing remarks.
Make targeted recommendations for a high-quality pulp merchant to slowly improve traffic monetization efficiency in Kuwait.
Yeah.
Okay.
So growth for the parts business.
The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
Xing Jin: 谢谢。
Sure sure. Thank you.
Mona Qiao: Thank you.
Yeah.
Rachel Smith: This concludes our question and answer session. I would like to turn the conference back over for any closing remarks. The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.
This concludes our question-and-answer session. I would like to turn the conference back over for any closing remarks.
Yep.
The conference has now concluded.
Thank you for attending today's presentation. You may now disconnect.
Yeah.
Yeah.