So-Young (SY) Q4 2025 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Wed, March 25, 2026 astatine 9:52 AM CDT 19 min read

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March 25, 2026, 7:30 a.m. ET

• Chief Executive Officer — Xing Jin

• Vice President of Finance — Hui Zhao

Xing Jin: [Interpreted]

China's aesculapian aesthetic manufacture structural adjustments arsenic upstream capableness expanded and consumers go much worth driven. Return to worth has go the communal theme. For institutions pursuing scaled and repeatable models, this offers a captious model to physique semipermanent edge. In Q4, we continued to amended our concern and marque advancement successful 3 directions. First, delivering standard breakthrough basal and operational improvements successful our aesthetic halfway business; second, reinforcing aesculapian work transportation capabilities to physique a semipermanent trust-driven mode; and third, gathering our proviso concatenation barriers to heighten marque and prehend opportunities. We are pleased to spot these choices are reflected successful our fiscal results.

The full gross was RMB 451 cardinal successful Q4, up astir 25% year-over-year, hitting a grounds precocious for quarterly revenue. Revenue from our aesthetic halfway concern reached RMB 248 million, up implicit 205% year-over-year and astir 10% supra the precocious extremity of guidance. Our aesthetic halfway concern has go our largest gross contributing conception and maturation motor with So-Young Clinic becoming the largest aesculapian aesthetic concatenation successful China by a fig of centers. Now fto maine locomotion you done our advancement successful Q4 and our 2026 deployment, focusing connected our aesthetic halfway business. -- our aesthetic halfway concern has precocious achieved 2 milestones. The archetypal is our halfway footprint.

By year-end 2025, we person opened 49 aesculapian aesthetic centers, ranking archetypal nationwide among each tiers by halfway count. The 2nd is the attraction volume. In Q4, verified attraction visits exceeded 125,000, up 178% year-over-year. Verified aesthetic attraction performed exceeded 289,400, up 168% year-over-year. As of December end, our full progressive users surpassed 170,000. The maturation successful some attraction measurement and idiosyncratic basal validates the marketplace request and ongoing designation from consumers.

As we scale, halfway level operational ratio continues to improve. In Q4, 25 centers achieved profitability and 39 centers generated affirmative operating currency flow. In 2026, we volition accelerate the expansion, opening astatine slightest 35 caller centers. We volition deepen density successful halfway cities, including Beijing, Shanghai, Guangzhou and Shenzhen, portion besides expanding our beingness successful second-tier cities. As our operations mature, we are assured successful further improving profitability portion maintaining enlargement and driving the wide profitability astatine an aboriginal date.