So-Young's Q1 2025 Earnings Call: Unpacking Strategic Contradictions in Clinic Model and Expansion Plans

So-Young Clinic business model and strategy, upstream business strategy and integration, Franchise model and expansion strategy, clinic model and focus, clinic expansion and franchising strategy are the key contradictions discussed in So-Young International Inc.'s latest 2025Q1 earnings call.



Aesthetic Center Business Growth:
- So-Young Clinic's aesthetic treatment services revenues reached RMB98.8 million, a remarkable 551.4% year-over-year increase.
- This growth was primarily due to the expansion of the aesthetic center business, driven by increased investment in expanding the network of aesthetic centers in K cities.

Operational Efficiency and Cost Control:
- Total operating expenses were RMB189.3 million, down 20.4% year-over-year, primarily due to a decrease in expenses associated with branding, user acquisition activities, and share-based compensation expenses.
- The company is optimizing its offering and deepening upstream collaboration to improve cost control and gross margin.

Supply Chain and Proprietary Products:
- The company is focusing on building upstream medical aesthetic supply chain capabilities, with over 1,500 institutions served and approximately 27,900 units of elastics shipped in Q1, up roughly 14% year-over-year.
- This strategy is aimed at enhancing service quality, delivering a safer and more effective medical aesthetic experience, and reducing reliance on high-cost imported devices.

Financial Outlook and Long-Term Strategy:
- So-Young expects aesthetic treatment services revenues to be between RMB120 million and RMB140 million in the second quarter of 2025, reflecting a 337.3% to 410.1% increase from the same period in 2024.
- The company is prioritizing long-term value creation over short-term financial optimization, investing in expanding its branded aesthetic center network, refining its vertically integrated business model, and pursuing a Sam's Club-like strategy for the medical aesthetics industry.