Q3 2025 So-Young International Inc Earnings Call
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 will now like to turn the meeting over to your host for today's call Mismove Chao. Please proceed Mona.
Thank you operator, and thank you everyone for joining <unk> third quarter 2025 earnings Conference call. Joining me today on the call is Mr. Hosting our founder Chairman and CEO and Mr. <unk> Zhang CFO before we begin placed in reference to the Safe Harbor statement in our earnings release.
Which applies to this call and so they will be making forward looking statements.
Please also note that we will discuss non-GAAP measures today, which are more thoroughly explained and it really <unk> to the most comparable measures reported under GAAP in our earnings release on our Investor Relations website and the filings as each day at this time I'd like to turn the call over to Mr. Xing Jin.
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Hello, everyone and welcome to todays earnings call in Q3, we continued to advance the strategic build out of our budget.
Central business.
The foundation of it.
This development is operating systems.
I have a long term investments in the aesthetics central businesses are increasingly translating to us.
Our stable operating results total revenue for the quarter was RMB 387 million and clothing, R&M insured and 80 for me and I know from the aesthetics and her business up 305% year over year and approximately 8% above the high end of our guidance.
This performance also filled our simply your topline growth momentum this quarter net loss attributable to Sohu young increased mainly due to a sequential decrease of RMB 31 million in revenue from businesses other than the aesthetic center business. We remain confident that this revenue is released.
Stabilized in Q4.
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Since our transplant clinic life medical aesthetic chain last year, we have continuously housed.
Standardization and surgical management, while improving central level efficiency and service quality. After one year. Our block now operates the largest number of centers nationwide among like medical aesthetics chance that a total number of 42 centers as of today, including 41 directly operated centers.
And one franchised center, we remain on track to reach our year end target 50 centers.
September 30 community service visits exceeded 600000 Rockies first amount of mass market Champ rising China in terms of service volume going forward, we will continue to expand our aesthetic center and that's what it is.
Miner and drive healthy sustainable growth through a higher higher standard system and steeper right equity.
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Q3 operational highlights.
Magic Asthmatic central business views of how the strong growth momentum in Q3 revenue reached RMB 184 million in two.
26% quarter on quarter, and 305% year over year further solidify in Israel as the core of our business.
As of September 30, So young clinic operates 30, no license or sell cross tenancy cities operational efficiency continued to improve with 20th century, achieving center level profitability in Q3, including all 14 mature centers. In addition, 29 Suntrust generators.
Now, let me walk you through our Q3 operational highlights on the planet Athletic Center business, which builds upon the strong growth momentum in Q3. We reached R&B 184 million, up 26% quarter-over-quarter and 305% year-over-year, further solidifying its role as the core of our business.
Positive operating cash flow during the quarter.
The scale of users in service.
So expanding as of September 30, total number of active users and clinic exceeded 130000 telephone number a very large treatment visit surpassed.
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As of September 30th, So-Young Clinic operates 39 centers across 10 cities. Operational efficiency continued to improve, with 20 centers achieving center-level profitability in Q3, including all 14 mature centers. In addition, 29 centers generated positive operating cash flow during the quarter.
A 33% quarter on quarter, and 280% year over year. The total number of very fine SRT treatments performed surpassed 194700 <unk>.
26% quarter on quarter, and 296% year over year, new customer continued to grow driven by word of mouth with auto assigns our customer acquisition efficiency remains industry, leading levels of our protect us as they remained at a low level as decreased quarter on quarter.
In Q3, the proportion of new customers acquired via referrals rose to 46% were also deepening cooperation with platforms such as make one further improving blood exposure and user conversion through targeted advertising and content to sit in new customers from public domain channels into.
The scale of users and service volume are also expanding as of September 30th. The total number of active users of Sony and Clinic exceeded 130,000, and the total number of verified treatment visits in the past quarter reached 89,800, representing a 33% increase quarter-over-quarter and a 280% increase year-over-year. The total number of verified athletic treatments performed surpassed 194,700, which is up 26% quarter-over-quarter and 296% year-over-year. New customer acquisition continued to grow, driven by word-of-mouth referrals. Since our customer acquisition is,
Efficiency remains industry-leading levels.
Waist, 38% quarter on quarter with continued optimization in public domain customer acquisition costs.
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Our per capita remains at a low level, with a decrease quarter-over-quarter in Q3. The proportion of new customers acquired has increased to 46%. We have also deepened cooperation with platforms such as Transmit 1, further improving our exposure and user conversion through targeted advertising and content aimed at attracting new customers from public domain channels. This increased by 38% quarter-over-quarter, with continued optimization in public domain customer acquisition costs.
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We have upgraded all of our membership system during the quarter. So chaired operations benefit incentives and personalized services, we increased user retention and customer lifetime value in Q3 call numbers to finance users tend to level three and above grew by over 10000.
Up 40% quarter on quarter. This call members continued a high double digit percentage of revenue and nearly 70% quarterly report translate customer satisfaction score remained at a high level of four point 99 out of five hour user structure continues to evolve to higher loyalty.
And repeat purchases.
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We have upgraded our membership system during the quarter. So, here are the operations benefits, incentives, and personalized services. We increased user retention and customer lifetime value in Q3. Core members, defined as users at level 3 and above, grew by over 10,000, up 40% quarter-over-quarter. These core members continued to represent a high double-digit percentage of revenue and nearly 70% quarterly. Our customer satisfaction score remained at a high level of 4.99 out of 5. Our user structure continues to evolve towards higher loyalty and repeat purchases.
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Continue to refine our products.
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Products, focusing on premium products made repeat purchase rates.
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Q3, optimize our professed her product portfolio and to double down.
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At the end of September we pre announced the launch of Miracle P. O L. A version three which delivered robust freestyle performance with over 1300 orders completed within two days under a one order per customer limits for energy based device treatments and state.
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Two over 30% and this core offerings continue to unlock growth momentum, we are opening greater room for synergies with supply chain.
To refine our products focusing on premium products, we made repeat patch rates at Water Mouth in Q3. We optimized our product portfolio and doubled down on refined operations for key offerings by the end of September. We proudly announced the launch of Miracle PLLA version 3, which delivered robust pre-sales performance with over 1,300 completed within 2 days, under a 1 order per customer limit for energy-based device treatments, and the exclusive distributor of BBF.
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Treatments in China. We made BBL our highest penetration blockbuster offering in Q3, and we will continue to drive its growth in Q4. Overall revenue contributions from blocker used to be over 30%, and this call's offerings continue to unlock growth momentum. We are opening greater room for synergies with the supply chain.
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And all of our business X that we continue to prioritize health care quantity and procedural compliance in Q3 with only a quarter to quarter.
Building a 16.
Framework.
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Control supervision internal audit medical service salary and information Security Department. This reinforces traceability across the medical service process. In Q3, we completed 55 center infections and emergency drills by the until the first quarter.
Her physician team exceeded 115, racking certified counter MAU large medical aesthetic chain, Brian National allowed our doctors have completed internships are training as public hospitals and past our unit train and assessments.
As our business expense, we continue to prioritize health care, quality, and procedural compliance in Q3. We fully upgraded our political control works, building a 16.5 framework that includes compliance with control supervision, internal audit, medical service delivery, and the information security department.
During a consistent and reliable medical service XR S across every center.
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This reinforces traceability across the medical service process. In Q3, we completed 505 center inspections and emergency drills by the end of the third quarter. Our physician team exceeded 150 rack in first by count amount large medical aesthetic training nationwide. All doctors have completed internships or training at public hospitals and passed our unified training and assessments, ensuring a consistent and reliable medical service experience across every center.
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Our business practices received about coordination from mass media.
He posted it online published a special commentary, noting that <unk> is starting an example for the rationale department of industry through the surprise operations transparent pricing and compliance management. We believe the industry landscape is shifting from marketing driven to trust driven where.
We will continue to uphold.
Standardization and inclusive access attribute it service system that is truly post customers at ease.
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We continued to strengthen all of our medical aesthetics supply chain in Q3 shipments of Ust exceeded 15800 units up above.
Trust-driven, we will continue to uphold Trust Services standardization and inclusive access to build a service system that truly puts customers at ease.
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Due to the combined impact of seasonal factors and industry prosperity in Q3 revenue on comps declined by RMB.
so,
I mean in quarter on quarter January and February five medical aesthetic services was around RMB 260 minute with per capita incident or J T rate up 6% year over year, we continue to optimize the content recommendation as traffic distribution of accounting firms to improve conversion of inflation.
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Due to the combined impact of seasonal factors and industry prosperity, in Q3, the value of the top declined by RMB 18 million quarter-over-quarter. GMV for verified medical aesthetic services was around RMB 2.06 billion, with per capita in central GT way up 6% year-over-year. We continue to optimize the content recommendation and traffic distribution mechanisms to improve conversion efficiency.
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Okay. I had we will continue pursuing our long term goal of lifestyle centers expand and build out and of course, it has sound commercial hub well filled.
They're out of 19 standardized and digital management to raise the bar for service delivery and the user experience. We believe our durable competitive advantage comes from long term commitment and accumulated to trust, we will drive a large medical I started the industry towards maturity with more.
We will continue pursuing our long-term goal of 1,000 centers.
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I'll walk through the financial results followed 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.
Standardized and digital management to raise the bar for service delivery and user experience. We believe our durable competitive advantage comes from long-term commitment and accumulated trust. We will drive the daylight medical anesthetics industry towards maturity with a more measured pace and more professional capabilities, creating long-term value for shareholders.
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Total revenues during the quarter were RMB $386 7 million up 4% year over year, primarily due to our business expansion of the <unk>.
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Branded aesthetics.
Aesthetic treatments services revenues reached RMB, $183 6 million, showing 304, 6% year over year once again exceeding the high end of our guidance. This was primarily driven by the robust business expansion of our branded athletic centers inform.
Hello, this is Nick. Please note that all amounts are quoted in RMB. Also, refer to our earnings release for detailed information on our comparative financial performances on a year-over-year basis.
Total revenues during the quarter for R&B were $386.7 million, up 4% year-over-year, primarily due to our business expansion of the Branded Aesthetic Center.
Patients on the reservation services revenues were RMB $117 2 million down 34, 5% year over year, primarily due to decrease in the number of medical service providers subscribing to information services on our platform.
A static treatment services revenue reached R&B 183.6 million, showing a 304.6% year-over-year increase, once again exceeding the high end of our guidance.
Revenues from sales of medical products, and the maintenance and services were RMB 67 million down 25% year over year, primarily due to decrease in order volume.
This was primarily driven by the robust business expansion of our branded aesthetic centers.
Equipment.
Revenues from other services were RMB $18 9 million down 67, 6% year over year, primarily due to a decrease in revenues from so young prime.
Information and reservation services revenues were R&B 117.2 million, down 34.5% year-over-year, primarily due to a decrease in the number of medical service providers subscribing to Information Services on our platform.
Cost of revenues were RMB $203 8 million up 43, 4% year over year, primarily due to the business expansion of our branded athletic centers.
Revenues from sales of medical products and maintenance services, or R&B, were $67 million, down 25% year-over-year, primarily due to a decrease in the order volume of equipment.
Within cost of revenues cost of aesthetic treatment services were RMB $140 1 million up 333, 2% year over year, primarily due to the business expansion of our branded FX centers.
Revenues from other services for R&B were $18.9 million, down 67.6% year-over-year, primarily due to a decrease in revenues from So-Young Prime.
Cost of information and reservation services were RMB, two 9 million down 44, 7% year over year, which was in line with the decrease in revenue generated from information the reservation services.
Cost of revenues or R&B was $203.8 million, up 43.4% year-over-year, primarily due to the business expansion of our branded aesthetic centers.
Cost of medical products sold and maintenance services were RMB 35, 6 million down 18, 3% year over year, primarily due to a decrease in costs associated with the sales of medical equipment cost of other services were RMB $15 2 million down $64 six.
Cost of aesthetic treatment services or R&B was $140.1 million, up 333.2% year-over-year, primarily due to the business expansion of our branded athletic centers.
Cost of information and reservation services were R&B 12.9 million, down 44.7% year-over-year, which was in line with the decrease in revenue generated from information and reservation services.
Santa year over year, primarily due to a decrease in costs associated with OEM Prime.
Total operating expenses were RMB $255 6 million up 13, 6% year over year.
Cost of medical products sold and maintenance services were $35.6 million, down 18.3% year-over-year, primarily due to a decrease in costs associated with the sales of medical equipment.
Sales and marketing expenses or RMB, $130 7 million up 13, 8% year over year, primarily due to the increase in expenses associated with the branding and the user acquisition activities for our aesthetics centers.
Cost of other services was R&B 15.2 million, down 64.6% year over year, primarily due to a decrease in costs associated with So-Young Prime.
G&A expenses were RMB 80, 88, 6 million up 26, 7% year over year, and a 12, 4% quarter over quarter, primarily due to the one time accrual of approximately.
Total operating expenses for R&B were $2,555.6 million, up 13.6% year-over-year.
RMB, five 8 million and bonuses and the business expansion of our branded athletic centers.
Sales and marketing expenses, or R&B, totaled $130.7 million, up 13.8% year-over-year, primarily due to the increase in expenses associated with branding and acquisition activities for our aesthetic centers.
R&D expenses were RMB, $36 3 million down nine 6% year over year, and up 16, 5% quarter over quarter.
The year over year decrease was primarily due to improved staff efficiency, while the sequential increase was due to the onetime accrual.
G&A expenses or R&B were $88.6 million, up 26.7% year-over-year and 12.4% quarter-over-quarter, primarily due to the one-time approval of approximately $5.8 million in year-end bonuses and the business expansion of our branded aesthetic centers.
Consummately RMB, three 6 million and bonuses and the continued investment in medical laser products, particularly in clinical trials.
R&D expenses, or R&B, are $36.3 million, down 9.6% year-over-year and up 16.5% quarter-over-quarter.
Income tax expenses were RMB, one 1 million compared with RMB $2 1 million in the same period of 2024.
Net loss attributable to <unk> International Inc. Was RMB $64 3 million compared with net income attributable to <unk> International Inc of RMB $23 million during the same period last year.
The year-over-year decrease was primarily due to improved staff efficiency. Meanwhile, the sequential increase was due to the one-time approval of approximately R&B 3.6 million year-end bonuses and continued investment in Miracle Laser products, particularly in clinical trials.
non-GAAP net loss attributable to <unk> International Inc. Was RMB 61, 6 million compared with non-GAAP net income attributable to <unk> International Inc of RMB $22 2 million during the same period of 2024.
In income tax expenses, R&B 1.4 million compared with R&B 2.1 million in the same period of 2024.
Basic and diluted losses per ads attributable to ordinary shareholders were RMB, <unk> 64, and RMB <unk> 64, respectively, compared with basic and diluted earnings per ads attributable to ordinary shareholders of RMB <unk>, two and RMB <unk> two respectively. During this.
Net loss attributable to So-Young International Inc. was R&B 64.3 million, compared with a net income attributable to So-Young International Inc. of R&B 20.3 million during the same period last year.
$61.6 million compared with non-GAAP net income attributable to So-Young International Inc. of $22.2 million during the same period of 2024.
Same period of 2024.
As of September 30th 295% of our cash cash equivalents restricted cash and term deposits time deposits and short term investments were RMB $942 8 million, primarily due to an increase of investment in branded athletic centers.
Basic and diluted losses per ADS, attributable to ordinary shareholders, were $0.64 and $0.64, respectively, compared with basic and diluted earnings per ADS attributable to ordinary shareholders of $0.20 and $0.20, respectively. During the same period of 2024,
Looking ahead to the fourth quarter of 2025, we expect our attack treatment services revenues to be between RMB 216 million and RMB $226 million.
Representing 165, 8% to 178, 1% increase from the same period in 2024. This outlook reflects our confidence in our strong growth momentum of our branded aesthetic center business.
As of September 30, 2025, our cash and cash equivalents, restricted cash, and term deposits, along with short-term investments, totaled $942.8 million, primarily due to an increase in our investment in branded aesthetic centers.
As we near the 50 center milestone. We have also seen continued improvement in central level profitability and operating cash flow demonstrating our models scalability and operational efficiency going forward, we will pursue disciplined expansion, while maintaining our focus.
Looking ahead to the fourth quarter of 2025, we expect tech Treatment Services revenues to be between R&B 216 million and R&B 226 million, representing a 165.8% to 178.1% increase from the same period in 2024. This outlook reflects our confidence in the strong growth momentum of our branded aesthetic center business.
Operational excellence and cost optimization to drive sustainable and quality growth.
This effort will reinforce the financial resilience of our aesthetic center business and create enduring value for our shareholders.
This concludes our care remarks, I will now turn over the call to the operator and open the call for Q&A.
As we near the 50-center milestone, we have also seen continued improvement in center-level profitability and operating cash flow, demonstrating our model's scalability and operational efficiency. Going forward, we will pursue disciplined expansion while maintaining our focus on operational excellence and cost optimization to drive sustainable and quality growth.
We will now begin the question and answer session to ask a question you May Press Star then one on your Touchtone phone.
Youre using a speakerphone please pick up your handset before pressing the keys.
These efforts will reinforce the financial resilience of our aesthetic center business and create enduring value for our shareholders.
Anytime 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 comes from Hi, Jean Pang with sidekick.
We will now begin the question-and-answer session. To ask a question, you may press star then 1 on your touchtone phone. If you're using a speakerphone, please pick up your handset before pressing the keys.
Securities. Please go ahead.
If at any time your question has been addressed and you would like to withdraw your question.
Please press star. Then 2
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At this time, we will pause momentarily to assemble our roster.
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The first question comes from Hi Jim Pang with Scitec.
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Oh, so okay, let me translate for myself and thank you for taking my question.
Hi, Jean <unk> from Citic Securities.
So first of all congratulations on the company's continued expansion the chain clinics.
Could you share more about the opening plan for next year within your original Jackie and they expect the pace of or the new clinic openings by quarter. Thank you.
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Okay, let me apply for myself. Thank you for taking my question. This is first of all, congratulations. On the company's continued rapid expansion of the chain clinics. So, uh, could you share more about the opening plans for next year, including your original strategy and the expected pace for the new Clinic openings, uh, by quarter. Thank you.
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By the end of 2025, we have a rich 50 Santos our goal is to lay a solid foundation, focusing on improving customer acquisition efficiency as growing user base.
As the business scales.
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In addition, an AI capable to replicate service processes drive breakthrough seemly bottlenecks the industry often faces.
By the end of 2025, we will reach.
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Our goal is to lay a solid foundation focusing on improving our customer acquisition efficiency as we grow our user base.
Following up stage the number of new new centers to be opened from next year will remain consistent with previous plans and we will not be less than 35.
They'll keep the overall pace of center openings balanced progressing on a quarterly basis to ensure every new center quickly and her steel the operation phrase establishment, our focus will remain our fourth tier cities since they have strong demand and high.
As the business skills evolve, we will enter a new stage of development, relying more on digitalization and AI capabilities to replicate service processes. This will drive breakthroughs in the bottlenecks the industry often faces, providing support for a broader build-out in the following-up stage. The number of new centers to be opened next year will remain consistent with previous plans and will not be less than 35.
Per transfer rate potential, which will help us quickly build observation of density and amplify broad appetite at the same time. We are also systematically established a presence in second tier cities with a mature customer base to validate all of them.
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We will keep the overall pace of Center open in balance, progressing on a quarterly basis to ensure every new center quickly enters the operational phase following its establishment. Our focus will remain on force-tier cities since they have a strong amount and high reprogramming rate potential, which will help us quickly build up regional density and amplify bright equity.
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The next question comes from Stacy Chen with high tongue International. Please go ahead.
At the same time, we will also systematically establish a presence in second-year cities with a mature consumer base to validate our model and gain experience for long-term expansion.
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The next question comes from Stacy Chen with High Tong International. Please go ahead.
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For Congo inflation through the management report, achieving such a radical either Jerry about October Audrey I noticed that you have.
Paul remember that you've had this quarter. So al could you explain more about the membership was down for that business.
And that's how we come back to you about membership operations. Thank you.
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With myself. Uh, first of all, congratulations to the management for achieving such a reality even during the Oxford quarter. Uh, I noticed that you have renewed the call member data and quarter. So, uh, could you extend more about the membership system for the Acetic Center business in the hallway? Uh, conduct to the membership operations. Thank you.
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There was a clear tiered membership system from level, one to eight and identify high value users.
And ongoing engagement level, three and above our final earnings call numbers, they have higher spend per visit frequency and greater flexibility to select additional services with annually.
The membership.
Annual spending two five times higher than the average making them.
Driver for aesthetic center during Q3, the contributed a high double digit presentation aesthetic center business revenue with <unk>.
Repurchase Ray Tonia.
Brent.
Provide shared benefits service touch points based on individual user consumption patterns, which ensures they continuously prices.
<unk> Costa of reinforcement for their both team repeat purchase rates.
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This time is core to Aesthetics operations each time. A user comes to visit a record created, which helps us build a clear shared membership system from Level 1 to 8 and identify high value users with more information and ongoing engagement. Level 3 and above are defined as core members. They have higher Center, visit frequency and greater flexibility to select additional services with annual spending 2.5 times higher than the average, making them the group's driver for aesthetic center during Q3. They contributed a high double-digit percentage of our aesthetic center business value with a representative near 50. We provide tiered benefits and service touch points based on individual user conception patterns, which ensures they continuously perceive.
Social with Outback and decision.
In Q3, our membership operations made solid progress users very five basis increased by nearly 40000.
But when you receive positive reinforcement, it further boosts repeat transaction rates.
Third quarter.
Quarter over quarter, including over 10000, new core numbers up 40% quarter over quarter.
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Thank you 3, our membership operations made Solid, progress users with verified with this increased by nearly 40,000. Uh, 36 quote unquote, including over 10,000 new core members at 40% quarter quarter,
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Additionally, we've also enhanced repaired customer value operations.
Repeat customer revenue reached RMB 120 million in Q3 up 32% quarter over quarter accounting for.
65% of SRT treatment service revenues very foreign to treatment Macy's from repeat customers surged over four times year over year to 50000, while <unk> also increased.
additionally, uh,
We also enhanced.
Operations.
These metrics are exceeding our targets going forward, we will continue with our focus on conversion of highly active users and extending the lives of high value users.
Sure sure. Thank you.
Okay.
The next question comes from Nelson Chuang with Citi. Please go ahead.
Customer Revenue, reached R&B 120 million in. Q3 up 32% quarter, quarter accounting for uh 65% of aesthetic treatment service revenues. Verified treatment with is from repeat customers searched over 4 times year over year to 50,000. While our pool also increased, uh, this metrics or exceeded our targets going forward. We will continue. We will focus on, uh, conversion of Highly active users, and extending the life cycle of high value users.
Nelson is your line muted.
Thank you.
Strong with City, please go ahead.
Nelson do you want to check if your line is muted.
Nelson, is your line muted?
Yeah.
Yes.
We will move onto James Wang with <unk> Securities. Please go ahead James.
Okay go ahead Glen until.
Nelson, do you want to check if your line is muted?
Well sure golf bags in China, bringing suits, all Cherokee and Jonathan <unk> question into a whole Diablo based on SEDAR woman, that's youre going into a Christian team.
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So of course, it's always households, already youre talking from shareholders equally Antonio name pathogen huge hotel comes on my ops and welcome to China, <unk> I'll, just start out with regard to accretion to furnish all co nausea. Thank you I'm Hot on my question for a company is how it is a miracle P. L. P O L Ace III part thereof.
We will move on to James Wong with GS Securities. Please go ahead, James.
Our sterling.
At the end of September launch and what is new compared to the previous question and what's your plan for promoting ads.
Hey, Hello, guys, Jamie that's you're right.
Thank you Tony on Saturday, and Assortments and insight.
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Okay, and my question for the company is: how is the Miracle PL APLL A 3.0 starting since its end of September launch, and how does the award compare to the previous one?
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person and once the plan for promoting it.
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Carl.
Russia and.
Cortes upgrades.
Hi, Chen from China of Madagascar market.
Steel motivated.
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We're launching we conducted research South Korea, and some tax demand.
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so, I was
First in both power technique after multiple rounds of testing we launched.
In terms of products is ultra lacklustre ask Tom.
Key features including ultra small ultra side Ultra fine I'll talk to you and also active across 50 result longevity. These features may stay faithful.
Moreover, with April.
<unk> is also a more competitively priced offering customers a higher quality yet Bonnie thanks Darren.
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Sure Jay Buth, John dealer Youll coder shortages have been cut.
Market P.R.L.A. is still mostly used as an injectable for shipping before launching. We conducted research in South Korea and found that they must be active. Their adopts a more standardized and safer skin booster technique after multiple rounds of testing. We launched 2 TM, in terms of products is ultra. Uh, microscopes come with 5K features including ultra smooth, ultra solid, ultra fine, ultra peel, and ultra active across safety results and longevity. These features make the product the best fit for skin boosters. Moreover, with its own compartment, upgraded Miracle PLLA version 3 is also more competitively priced, offering consumers a high quality yet value for money experience.
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Regarding the promotion we made of glass based on HAE market landscape and user pinpoint to capture user mind sure. We adopted so to young America more suitable for skin blisters and introduce the concept of ultra microspheres to take the lead in.
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Segment.
Also released two versions of <unk> and <unk> to address different users' needs and budget, thereby lowering the deflation of thresholds for users. The first batch of lifestyle think Q&A was fully sold out.
Sure Tyler.
The massive arrival is expected in late November we will continue to drive market penetration rates for <unk>.
Converting users more efficiently, our increasing <unk> and <unk>.
April to address different users' needs and budgets, thereby lowering the decision threshold for users.
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The first batch of 5,000 units was fully sold out within a short time. The mass of the massive rival is expected in late November. We will continue to drive market penetration for the Maricopa PLLA version, converting users more efficiently, and increasing our pool and user loyalty.
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Market <unk> is receiving a high attention.
Implemented online purchase of one for Chuck per user from this phase <unk> data about it.
56% of users paid <unk> priced.
At RMB 4999, reflecting the trust they are placing our blood as products in the next year or two.
In fact, we have been working on upstream is expected to receive approval for launch which should reduce procurement.
All times.
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Market feedback shows that Miracle PLLA, version 3, is receiving high attention. We implemented an online purchase limit of 1 per transfer user. From these purchases, we can say that about 56% of users paid. The pro version, priced at R&B 4,999, reflects the trust they placed in our brand and products in the next year or two.
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P.L.L. that we have been working on is extremely expected to receive approval for launch, which should reduce procurement by several times.
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Russia is not just a program upgrade.
Horton part of supply chain construction as blockbuster strategy, we will adopt a similar approach for future categories. We will continue to depend on the vertical integration of our supply chain further enhanced safety and continues today Congress upstream manufacturer to long term.
No Tony assay, we will average over location market hang products doctors on channels too.
Areas and a solid black knowledge.
Okay.
The next question comes from Nelson Cheung with Citi. Please go ahead.
Okay great.
Janssen as a biomarker.
In construction, at Blockbuster strategy, we will adopt the same approach for future categories. We will continue to deepen the vertical integration of our supply chain, further enhance safety, and continuously convert upstream manufacturers into long-term Shift Supply projects in new categories. We will leverage our advantage in marketing products, doctors, and channels to build differentiated barriers and solidify our black mode.
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The next question comes from Nelson. Chang, with City. Please go ahead.
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Welcome to Nathan.
Thank you.
Transformation for taking my question and congratulation on the solid quarter.
With the expanding alright.
How do we ensure the safety and compliance.
And Paul just the internal quality control mechanism.
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Picking my question and congratulation on the solid quarter uh with my with the expanding uh uh, plastic s account. How do we ensure the safety and compliance of the entire chain system? And how does the internal quality control mechanism work? Thank you.
Jellicoe British disorder.
<unk>.
Safety is our top priority we have viewed asics.
Vice framework covering compliance risk control operation.
Kind of holidays medical service delivery and information Security Department, and we will continue to make this framework more refined and systematic.
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58 is our top priority. We have built a six-part, Taylor-compiled framework covering compliance with control supervision, internal audit, medical services, delivery, and information security departments. We will continue to make this framework more refined and systemic.
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We're here high standards at this time on the treatment.
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Medical aesthetic treatments with Claire Mcadams.
The user feedback Hello, good morning.
Potential risks on the personnel side, we in Cleveland reservoir stocks first quantification assessments.
For.
Acceptance rates of around 10% all doctors are also required to complete premium.
We are here to uphold high standards and...
Coin months training and regular emergency drills to ensure the highest professional service and emergency response capabilities.
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Mechanisms and solid user feedback for potential risks on the personnel side. We implement virtual doctor's qualification assessments with an acceptance rate of around 10%. All doctors are also required to complete pre-employment training and regular emergency drills to ensure the highest professional service and emergency response capabilities.
Medical service, Alright, lien claimants diagnosis that matches treatments with doctor spaced out there quantification levels, we conduct regular online and offline infections as part of Robert.
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Medical service delivery with equipment is here to diagnose health issues, match treatments with doctors based on their qualification levels. We conduct regular online and offline sessions as part of our quality control, ensuring reliable medical services.
Across all centers.
Culturally do patterns.
If there is any user feedback dispute we had always headquarters.
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<unk> response time is under two hours at issue resolution company today's meeting today.
Compliance rate is below 1%.
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Sure.
Our team is composed of care departments, including user experience, PRJ, and legal. Currently, our average response time is under 2 hours, with issue resolution completed within 2 days. Their compliance rate is below 1%.
Going forward, we will continue to uphold the highest standards of safety and compliance with digital and AI tools, the MTA ask Troy efficiency and ensure consistent medical service quality and users.
Across all centers as the business continues to grow rapidly.
Thank you.
Yes.
The next question comes from Jenny Zhou with CIBC. Please go ahead.
And.
Going forward, we will continue to uphold the highest standards of safety and compliance with digital and AI tools. We aim to fix house quality efficiency and ensure consistent medical service quality and user safety across all centers as the business continues to grow rapidly.
Oh, My God I wish it comes and goes with Barclays. Please go ahead.
Jon Steinberg.
So I think youre right.
That's helpful.
Let me repeat it in English.
So how does the management the baton.
The next question comes from Jenny. Zhu, with CIC, please go ahead.
Hello <unk>.
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The business in the future.
Guys, if you will.
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Jean <unk>.
Cleveland Guy, So I'm Cornelia Hanmi chip.
The first priority now is to expand our user base spanning schwan improvement operating profit as it scales as the Alberta Memorial gradually matures, we are confident conference quality will ensure.
Let me repeat that in English. So, how does management view the potential for improving the profitability of the asset standard business in the future? Thank you.
Tom Tom.
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We believe the first priority now is to expand our user base and ensure the improvements of operating profits as it scales. As the operating model gradually matures, we are confident that profitability will improve.
Sure.
So we must sandoz with Asia potentially in June the audience on the <unk> debate humble.
On the cost side.
You too.
This structure, our customer acquisition channels, including referrals from existing customers.
Oh, great. Thanks, Robert Stone.
Traffic continued consolidation of our advantage in customer acquisition costs.
In addition, there is a sort of a central room to lower consumable costs.
On the cost side, we continue to optimize.
We recently acquired is America.
the structure of our customers.
From version to version as Great.
As a new product.
This will strengthen our bank.
<unk> partners from further optimize our framework in the future with the Guangzhou, a realization of digitalization AI and economics of scale. This saves costs and data operations will be fully diluted.
Validating our advantage in customer acquisition costs.
In addition, there is significant room to lower the consumable cost.
Tom Shaw.
For instance, we recently upgraded Miracle PLLA from version 2 to version 3 as the new products.
So they don't hold the shovel to Ashish with Acacia so youll, just some shelf EUA attachment Zheng Cheng <unk> sure. So Josh element boarder unusual gulch, you're making sure you're parsing <unk> could enter your votes as Jim Jones Act ship.
It will strengthen our buying power with upstream partners and further optimize our cost framework in the future with the granular realization of digitalization, AI, and economies of scale. The six costs in daily operations will be fully diluted.
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On the revenue side.
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They are willing to spend on premium treatments.
Luis.
Sure.
Michael.
Operator.
Hey.
Alright.
Sure.
Trajectory leverage Allen.
On the very side of users in.
Strategy.
Have gradually concentrated.
<unk> of our Skus.
Sure I'll go faster, increasing the top nine products contribute.
The percent of revenues in Q3.
Ladies and solid foundation to further improve our profit margins.
Couples operations.
Powertrain customized products lastly, Nomura athletic sensor sandburg, five treatment, which based on however, we will focus on housing LTV call numbers, while they're driving conference margin. Therefore, we believe there is great potential for the profitability of the ask that home center business to increase.
From its current base.
Yeah.
Thank you operator.
The conference has now concluded. Thank you for attending today's presentation and you may now disconnect.
Strategy treatment for you. We have graduated concentrated on a phone number of SQS. They are very share of the faster products increasing the top. Nine products contributed over 30% of value in Q3. This made a solid foundation to further improve our profit margin, still focusing on proprietary customized products. Once the number of aesthetic centers sends verified treatment visits, which they send at a level, we will focus on housing LTV of Corps members for their driving profit margin. Therefore, we believe there is great potential for the profitability of the aesthetic center business to increase from its current state.
Thank you, operator.
The conference is now concluded. Thank you for attending today's presentation, and you may now disconnect.