Financial Data and Key Metrics Changes - In Q4 2024, total revenue was RMB 369.2 million, a decrease of 5.5% year-over-year, primarily due to a decline in revenue from So-Young Prime [23] - Net loss attributable to So-Young was RMB 607.6 million, compared to a net income of RMB 17.5 million in the same period last year [27] - Non-GAAP net loss was RMB 53.2 million, compared to a non-GAAP net income of RMB 35.7 million in Q4 2023 [27] - For the full year 2024, total revenues were RMB 1.47 billion, down 2.1% year-over-year [28] Business Line Data and Key Metrics Changes - Revenue from aesthetic treatment services surged to RMB 81.3 million, up 701.6% year-over-year, driven by the expansion of the aesthetic center business [23] - Sales of medical products and maintenance services were RMB 86.2 million, down 15.2% year-over-year, primarily due to a decrease in order volume for medical equipment [23] - Cost of aesthetic treatment services was RMB 65.2 million, up 702.3% year-over-year, reflecting the expansion of the aesthetic center business [24] Market Data and Key Metrics Changes - Total GMV for verified medical aesthetic services reached RMB 356.6 million, up 3% sequentially [17] - The total number of verified paid aesthetic treatments surpassed 81,500, with over 38,000 verified paid visits recorded [10][11] - The total number of active users exceeded 39,500, indicating strong brand appeal and market demand [11] Company Strategy and Development Direction - The company is focused on vertical integration within the aesthetic medical industry, leveraging its user base and supply chain capabilities to drive growth [7][32] - Plans to deepen presence in core cities and replicate successful aesthetic centers to expand the network further [14] - The company aims to establish a leading light medical aesthetic chain with over 1,000 locations in China, which currently has a low penetration rate of chain clinics [51][52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term strategy, emphasizing the importance of establishing a robust aesthetic center network and improving financial performance [32] - The company anticipates steady improvement in financial performance as market conditions stabilize and aesthetic center businesses expand [32] - Management acknowledged that while near-term profitability may be impacted by expansion efforts, the focus remains on sustainable high-quality growth [66] Other Important Information - The company recorded a one-time goodwill impairment charge of RMB 540 million for its subsidiary, impacting the bottom line [7] - Customer satisfaction remains high at 4.98 out of 5, indicating strong service quality [10] Q&A Session Summary Question: What are the latest developments in merchant support during the industry consolidation period? - Management highlighted the importance of differentiators for specialized medical aesthetic institutions to maintain pricing power and market presence [36][37] Question: How does the company adapt its strategies for centers at different stages of development? - Management explained the implementation of differentiated operational strategies for aesthetic centers in various phases to optimize performance and enhance brand influence [44][46] Question: Can the aesthetic center business maintain growth? - Management indicated that the aesthetic center network has significant growth potential, with low market penetration of chain clinics in China [51][52] Question: What is the strategy for the upstream business? - Management discussed the integration of Miracle Laser into the upstream business, focusing on product innovation and enhancing supply chain capabilities [58][60] Question: Could management share more insights into the company's financial outlook? - Management reiterated the commitment to sustainable growth through vertical integration and maintaining a balance between growth and profitability [66]

Core Viewpoint - So-Young International Inc. reported its financial results for Q4 and fiscal year 2024, highlighting significant growth in aesthetic treatment services despite overall revenue decline due to a one-time goodwill impairment charge. Financial Highlights - Total revenues for Q4 2024 were RMB 369.2 million (US$ 50.6 million), a decrease of 5.5% from RMB 390.6 million in Q4 2023 [7][8] - For the full year 2024, total revenues were RMB 1,466.7 million (US$ 200.9 million), a decrease of 2.1% from RMB 1,498.0 million in 2023 [9][21] - Aesthetic treatment services revenues reached RMB 81.3 million (US$ 11.1 million) in Q4 2024, marking a 701.6% increase from RMB 10.1 million in Q4 2023 [10][14] - The net loss attributable to So-Young for Q4 2024 was RMB 607.6 million (US$ 83.2 million), compared to a net income of RMB 17.5 million in Q4 2023, primarily due to a goodwill impairment charge of RMB 540.0 million (US$ 74.0 million) [8][18] - Non-GAAP net loss for Q4 2024 was RMB 53.2 million (US$ 7.3 million), compared to a non-GAAP net income of RMB 35.7 million in Q4 2023 [19][30] Operational Highlights - The number of verified paid visits in Q4 2024 exceeded 39,500, compared to approximately 2,300 in the same period of 2023 [8] - The number of active users reached over 52,000, up from approximately 2,900 in Q4 2023 [8] - As of December 31, 2024, So-Young operated 19 aesthetic centers across nine major cities, with 11 centers generating positive operating cash flow [6][8] Cost and Expenses - Total operating expenses for Q4 2024 were RMB 815.2 million (US$ 111.7 million), an increase of 216.2% from RMB 257.8 million in Q4 2023 [16] - Cost of revenues for Q4 2024 was RMB 153.1 million (US$ 21.0 million), an increase of 11.2% from RMB 137.6 million in Q4 2023 [12][22] Dividend Declaration - The board declared a special cash dividend of US$ 0.03445 per ordinary share, totaling approximately US$ 3 million, to be paid on or around April 25, 2025 [5] Business Outlook - For Q1 2025, So-Young expects total revenues to be between RMB 280.0 million (US$ 38.4 million) and RMB 300.0 million (US$ 41.1 million), representing a decrease of 12.0% to 5.7% from Q1 2024 [33]

Company Overview - So-Young International Inc. is the largest social community in China for the medical aesthetics industry, connecting consumers, professionals, and service providers [3] - The company offers reliable information and high-quality content, along with social functions and vetted medical aesthetic service providers [3] - So-Young is positioned to expand within the medical aesthetic industry value chain and into the growing consumption healthcare service market [3] Financial Results Announcement - The company has rescheduled the release of its financial results for Q4 and full year ended December 31, 2024, to before U.S. markets open on March 28, 2025 [1] - An earnings conference call will be held on March 28, 2025, at 7:30 AM U.S. Eastern Time [2] - Dial-in details for the conference call have been provided for international, U.S., and Mainland China participants [2]