So-young International Stock Earnings Reports

So-Young reported a strong Q1 2026 with total revenue of RMB 432.8 million, up ~46% year-over-year, driven mainly by rapid expansion of its branded aesthetic center business (aesthetic treatment revenue RMB 282.4 million, up ~186% YoY and ~65%+ of total revenue). The company expanded its clinic footprint (net adds in Q1; 54–59 centers cited across remarks) and reported improved per-center economics: 41 profitable centers, 48 centers generating positive operating cash flow, and aesthetic center gross margin of ~27% (improving year-over-year). Active users and treatment volumes scaled materially (verified visits >148k; verified treatments >325k; core members >63k). Management emphasized strengthening medical delivery through a new R&D and physician training center, centralized safety/compliance monitoring, and ongoing physician recruitment (~230 full-time physicians). On product/supply-chain front, So-Young highlighted partnerships (e.g., Jinbo Biopharmaceutical) and proprietary “green label” collagen and skin booster products, with blockbuster treatments (BBL, thermage) contributing meaningfully (41% of revenue from blockbuster products in Q1). Financially, operating expenses rose but grew slower than revenue; non-GAAP net loss widened to RMB 46.6 million. Cash and equivalents plus short-term investments were RMB ~880 million at quarter-end (down from ~RMB 936m), reflecting capital allocated to clinic expansion. For Q2, the company guided aesthetic treatment service revenue of RMB 307–317 million (implying ~113%–120% YoY growth). Management sees long-term structural opportunity in China’s light medical aesthetics market and reiterated a target to scale to 1,000 centers over time, while emphasizing measured expansion, operational efficiency and a path to profitability. Key investor considerations: rapid top-line and volume growth with improving unit economics and margin expansion versus continued net losses and cash use to fund expansion; intense industry competition but differentiated positioning through standardized delivery, supply-chain partnerships and physician training.