So-Young International Inc (SY) 2025 Q2 法說會逐字稿

Ladies and gentlemen, thank you for standing by for So-Young's second quarter 2025 earnings conference call. (Operator Instructions) As a reminder, today's conference call is being recorded.

女士們，先生們，感謝大家參加新氧 2025 年第二季財報電話會議。（操作員指示）提醒一下，今天的電話會議正在錄音。

I would now like to turn the conference over to your host for today's call, Ms. Mona Qiao. Please proceed, Mona.

現在，我想將會議交給今天的主持人 Mona Qiao 女士。請繼續，莫娜。

Thank you, operator, and thank you, everyone, for joining So-Young's second quarter 2025 earnings conference call. Joining me today on the call is Mr. Xing Jin, our Co-Founder, Chairman, and CEO; and Mr. Nick Zhao, CFO.

謝謝接線員，也謝謝大家參加新氧 2025 年第二季財報電話會議。今天與我一起參加電話會議的還有我們的共同創辦人、董事長兼執行長金星先生和財務長趙尼克先生。

Before we begin, please refer to the Safe Harbor segment in our earnings release, which applies today's call as we'll be making forward-looking statements. Please also note that we will discuss GAAP measures today, which are more thoroughly explained and reconciled to the most comparable measures reported under GAAP in our earnings release on our Investor Relations website and filings with SEC.

在我們開始之前，請參閱我們的收益報告中的安全港部分，該部分適用於今天的電話會議，因為我們將做出前瞻性陳述。另請注意，我們今天將討論 GAAP 指標，這些指標在我們投資者關係網站上的收益報告和向美國證券交易委員會提交的文件中進行了更詳細的解釋，並與 GAAP 下報告的最具可比性的指標進行了協調。

At this time, I'd like to turn the call over to Mr. Xing Jin.

現在，我想把電話轉給 Xing Jin 先生。

(interpreted) Everyone, and welcome to today's earnings call. In Q2, our branded aesthetic center business maintained its robust momentum, achieving growth in both (inaudible) and quality. Our business model and the strategic direction we are headed have received strong market recognition.

（翻譯）大家好，歡迎參加今天的財報電話會議。第二季度，我們的品牌美容中心業務保持強勁勢頭，實現了（聽不清楚）和品質的雙重成長。我們的商業模式和策略方向得到了市場的強烈認可。

In Q2, we generated total revenue of RMB379 million. Revenue from Aesthetic Centre business reached RMB144 million, the passing the upper end of our guidance and making it our largest revenue contributing segment for the first time. This marks a critical inflection point in our multiyear strategic transition, are sharing in a new phrase with clear growth drivers and a more mature business model.

第二季度，我們實現總營業收入3.79億元。美容中心業務收入達到人民幣1.44億元，超過我們預期的上限，並首次成為我們最大的收入貢獻部門。這是我們多年策略轉型的關鍵轉捩點，正邁入一個成長動力清晰、商業模式更加成熟的新階段。

As of today, our So-Young Clinic Life Medical Aesthetic chain has grown to 33 centers. Due to rapid network expansion and ongoing investments, we recorded a net loss attributable to So-Young of RMB36 million and a non-GAAP net loss of RMB30.5 million in the second quarter.

截至目前，我們的新氧生命醫學美容連鎖中心已發展到33家。由於網路快速擴張持續投資，第二季我們錄得歸屬於新氧的淨虧損人民幣3600萬元，非美國通用會計準則淨虧損人民幣3050萬元。

Going forward, as we further refine our service workflows, enhance customer experience, and strengthen our brand influence and reputation, we expect improved operational efficiency per center and enhanced customer loyalty. We remain confident in delivering sustainable, high-quality long-term growth.

展望未來，隨著我們進一步完善服務流程、提升客戶體驗、加強品牌影響力和聲譽，我們預期每個中心的營運效率將會提高，客戶忠誠度將會增強。我們仍然有信心實現可持續的、高品質的長期成長。

Now let me walk you through our Q2 operational highlights. Aesthetic Treatment Services revenue maintained strong momentum during the quarter, increasing 46% quarter over quarter and 426% year on year to RMB144 million. Center performance also continued to improve. By the end of June, we operated 29 aesthetic centers. Among these, 20 have been open for more than three months. 19 turned operating cash flow positive in June and13 were profitable on a monthly basis.

現在讓我向您介紹我們第二季的營運亮點。美容治療服務營收在本季維持強勁勢頭，較上季成長46%，較去年同期成長426%，達到人民幣1.44億元。中心表現也持續提升。截至6月底，我們已營運29家美容中心。其中，開業三個月以上的企業有20家，6月經營現金流轉為正值的企業有19家，當月獲利的有13家。

Alongside the continued network expansion, our overall service capacity is rapidly growing, with total number of active users exceeding 100,000 by June. Total number of verified treatment visits surpassed 67,400 in Q2, up 24% quarter over quarter and 381% year over year. And the total number of verified Aesthetic treatment performed reached over 154,500, up 25% quarter over quarter and 458% year over year. The overall repeat purchase rate for our aesthetic center business exceeded 60%, while customer satisfaction score remained high at 4.99 out of 5.

隨著網路的不斷擴展，我們的整體服務能力也在快速成長，截至6月份，總活躍用戶數已超過10萬人。第二季已核實的治療就診總數超過 67,400 次，較上季成長 24%，較去年同期成長 381%。已驗證的美容療程總數達到 154,500 餘例，較上季成長 25%，較去年同期成長 458%。我們美容中心業務的整體重複購買率超過 60%，而客戶滿意度得分仍保持在 4.99（滿分 5 分）的高點。

While we continue to expand our network in Q2, we maintained leadership in customer acquisition efficiency. Currently, our average customer acquisition costs remain in RMB100 range, with over 70% of new customers coming from low-driving traffic and referrals from existing customers. Benefiting from improved operating efficiency, the gross profit margin of our Aesthetic Treatment services expanded by around 5 percentage points sequentially. These achievements validates So-Young Clinic's growing drive influence and operational efficiency.

在我們第二季度繼續擴展網路的同時，我們仍然保持著客戶獲取效率的領先地位。目前，我們的平均獲客成本維持在100元左右，超過70%的新客戶來自低驅動流量和現有客戶的推薦。受惠於營運效率的提升，美容治療服務的毛利率較上季成長約5個百分點。這些成績的取得，印證了新氧診所不斷提升的帶動作用和運作效率。

We remain committed to standardized service delivery, consistently focusing on healthcare quality, traceable compliance, and user experience. We have implemented a regular physician selection of training system with all our over 130 full-time doctors having either completed internship of standardized training and public hospitals and nearly 90% of them being specialist dermatologist. Additionally, we are advancing end-to-end management sales digitalization and AI-driven solutions, achieving full process standardization from self-service booking and check-in to testing, consultation, and treatment. This digitized approach provides every user with a clear, transparent, and (inaudible) medical experience.

我們始終致力於標準化服務交付，並始終專注於醫療品質、可追溯合規性和使用者體驗。我們實施定期醫師選拔訓練制度，現有130多名專職醫師均完成規範化訓練及公立醫院實習，其中近90%為皮膚科專科醫師。此外，我們正在推動端到端管理銷售數位化和人工智慧解決方案，以實現從自助預約、辦理入住到檢測、諮詢、治療的全流程標準化。這種數位化方法為每個使用者提供了清晰、透明和（聽不清楚）的醫療體驗。

On new treatment, we launched a number of high acclaimed offerings in Q2, including Miracle PLA, Mermaid Skin Booster, and BBL HERO, which expanded our Medical Aesthetic portfolio, increased ARPU and reinforced our unique competitive edge.

在新療法方面，我們在第二季度推出了一系列廣受好評的產品，包括 Miracle PLA、Mermaid Skin Booster 和 BBL HERO，這些產品擴大了我們的醫學美容產品組合，提高了 ARPU 並增強了我們獨特的競爭優勢。

Turning to branding. We teamed up with international IP (inaudible) around our Medical PLLA series to stage So-Young theater pop-up events in Beijing and Shenzhen CBDs during the quarter. Through IP co-bid and immersive experiences, this campaign attracted massive young customers' participation with nearly 10,000 users sharing their experiences on RedNote, significantly boosting brand visibility and offline engagement.

轉向品牌推廣。本季度，我們圍繞醫療PLLA系列與國際IP（聽不清楚）合作，在北京和深圳中央商務區舉辦新氧影院快閃活動。本次活動透過IP聯名競價、沉浸式體驗等形式，吸引了大量年輕消費者的參與，近萬名用戶在RedNote上分享了使用體驗，大幅提升了品牌知名度和線下互動量。

Meanwhile, we partnered with self-media influencer (inaudible) and her team to reinforce our (inaudible) philosophy, were emotionally resonant storytelling. The campaign resonated strongly with our core female user base effectively reinforcing So-Young Clinic's professional reputation as vast positioning among smart beauty conscious women.

同時，我們與自媒體影響者（聽不清楚）及其團隊合作，以強化我們的（聽不清楚）理念，講述引起情感共鳴的故事。這項活動引起了我們核心女性用戶群的強烈共鳴，有效地鞏固了新漾診所在註重美容的聰明女性中的專業聲譽。

In the upcoming third quarter, we plan to open around 10 aesthetic centers, expanding not only in first-tier cities, but also into core second-tier cities. Looking ahead to the full year, we expect the total number of our aesthetic centers to reach 50. This will further expand the accessibility of So-Young Clinics like Medical Aesthetic Services nationwide. We will also continue to strengthen standardized operations and product innovation capabilities, further cementing our market leading positions in China's Medical Aesthetic Industry.

在即將到來的第三季度，我們計劃開設10家左右的美容中心，不僅在一線城市擴張，還將擴展到核心二線城市。展望全年，我們預計美容中心總數將達到50家。此舉將進一步擴大新氧診所等醫療美容服務在全國的普及度。我們也將持續加強標準化營運和產品創新能力，進一步鞏固我們在中國醫療美容產業的市場領先地位。

For the Upstream business, we continue to build out our comprehensive Medical Aesthetic supply chain, driving nationwide penetration (technical difficulty) Self-developed and exclusively distributed products.

上游業務方面，我們持續建構完善的醫美供應鏈，推動全國滲透（技術難度）自主研發、獨家分銷產品。

By the end of Q2, the number of institutions we serve with supply chain solutions for injectables exceeded 1,600 with shipments of Elasty reaching around 39,100 units in Q2, up over 40% sequentially. As our upstream products acquired additional certifications and scale, we expect to further enhance our advantage and improve cost efficiency, while solidifying our mode of industry [trends] synergy.

截至第二季末，我們為注射劑供應鏈解決方案服務的機構數量超過 1,600 家，Elasty 的出貨量在第二季達到約 39,100 單位，環比成長超過 40%。隨著我們上游產品獲得更多認證和規模，我們預計進一步增強我們的優勢並提高成本效率，同時鞏固我們的行業[趨勢]協同模式。

Our POP business remained stable during the quarter. GMV for verified medical aesthetic services reached roughly RMB300 million, with per capita in center GTV growing by 6% year over year. We continue to provide digital operation support for partner institutions, maintaining healthy and orderly development for our platform.

本季我們的 POP 業務保持穩定。已認證醫美服務GMV達約3億元人民幣，中心人均GTV較去年同期成長6%。我們持續為合作機構提供數位化營運支持，保持平台健康有序發展。

Looking to the second half of 2025, we will continue to increase the density of our aesthetic center network in first-tier cities, targeting both prime commercial (inaudible) and high potential areas, while increasing our presence in second-tier cities to broader market coverage and center density growth, we will drive localized brand building to increase the customer reach of So-Young Clinic in each city. We remain committed to optimizing user experience and center operational efficiency, strengthening our core competitive edge as laying a solid business foundation to deliver long-term value to our shareholders. We see the progress we made as a springboard, and we'll keep innovating to create greater user value and unlock broader growth opportunities.

展望2025年下半年，我們將繼續增加在一線城市的美容中心網絡密度，瞄準黃金商業區（聽不清）和高潛力區域，同時增加在二線城市的業務，以擴大市場覆蓋面和中心密度增長，我們將推動本地化品牌建設，以增加新氧診所在每個城市的客戶覆蓋面。我們始終致力於優化使用者體驗和中心營運效率，增強核心競爭優勢，奠定堅實的業務基礎，為股東創造長期價值。我們將所取得的進步視為跳板，並將繼續創新，創造更大的用戶價值並釋放更廣泛的成長機會。

Now I'll hand over to our CFO, Nick, who will walk through the financial results, followed by the Q&A session.

現在我將把時間交給我們的財務長尼克，他將介紹財務結果，然後是問答環節。

Hello, this is Nick. Please note that all amounts are quoted in RMB. Please also refer to our earnings release for detailed information of our comparative financial performance on a year-over-year basis. Total revenues during the quarter were RMB378.7 million, down 7% year over year, primarily due to a decrease in the number of medical service providers subscribing to information services on our platform.

你好，我是尼克。請注意，所有金額均以人民幣報價。另請參閱我們的收益報告，以獲取有關我們同比財務業績比較的詳細資訊。本季總收入為人民幣3.787億元，年減7%，主要由於訂閱我們平台資訊服務的醫療服務提供者數量減少。

Aesthetic Treatment service revenues reached RMB144.4 million, soaring 426.1% year over year, exceeding the high end of our guidance, primarily due to the business expansion of our branded aesthetic centers. Information and Reservation services revenues were RMB135.2 million, down 35.6% year over year, primarily due to a decrease in the number of medical service providers subscribing to information services on our platform.

美容治療服務收入達到人民幣1.444億元，年增426.1%，超過我們預期的高端，主要得益於我們品牌美容中心的業務擴張。資訊及預約服務收入為人民幣1.352億元，年減35.6%，主要由於訂閱我們平台上資訊服務的醫療服務提供者數量減少。

Sales of medical products and maintenance services were RMB76 million, down 28.1% year over year, primarily due to a decrease in the order volume of medical products. Other services revenues were RMB23.2 million, down 64% year over year, primarily due to a decrease in So-Young Prime. Cost of revenues were RMB184.6 million, up 19% year over year, primarily due to business expansion of our branded aesthetic centers.

醫療產品及維修服務銷售額為人民幣0.76億元，較去年同期下降28.1%，主要由於醫療產品訂單量減少。其他服務收入為人民幣2,320萬元，較去年同期下降64%，主要由於新氧優選業務的減少。營業成本為 1.846 億元，年增 19%，主要由於我們品牌美容中心的業務擴張。

Within cost of revenues, cost of Aesthetic Treatment services were RMB109.4 million, up 405.5% year over year, primarily due to the business expansion of our branded aesthetic centers. Cost of information and the reservation services were RMB16.7 million, down 47.4% year over year, which was in line with the decrease in revenue generated from Information and Reservation services. Cost of medical products sold and maintenance services were RMB39.5 million, down 25.8% year over year, primarily due to a decrease in costs associated with the sales of medical products.

在收入成本中，美容治療服務成本為 1.094 億元，年增 405.5%，主要由於我們品牌美容中心的業務擴張。資訊及預訂服務成本為人民幣1,670萬元，較去年同期下降47.4%，與資訊及預訂服務收入的下降一致。銷售醫療產品及維修服務成本為人民幣3,950萬元，較去年同期下降25.8%，主要由於銷售醫療產品相關成本的下降。

Cost of other services were RMB19 million, down 60.8% year over year, primarily due to a decrease in costs associated with So-Young Prime. Total operating expenses were RMB241.3 million, down 1.8% year over year. Sales and marketing expenses were RMB131.3 million, down 0.7% year over year, primarily due to the decrease of payroll costs. G&A expenses were RMB78.8 million, up 11.3% year over year, primarily due to an increase in payroll costs associated with the expansion of administrative employees to support our business upgrades and new strategic businesses.

其他服務成本為 1,900 萬元，年減 60.8%，主要由於與新氧優質服務相關的成本減少。總營業費用為人民幣2.413億元，較去年同期下降1.8%。銷售及行銷費用為人民幣1.313億元，較去年同期下降0.7%，主要由於薪資成本減少。一般及行政費用為人民幣 7,880 萬元，年增 11.3%，主要由於為支持業務升級和新戰略業務而擴大行政人員規模導致工資成本增加。

R&D expenses were RMB31.2 million, down 26.6% year over year, primarily attributable to improvements in staff efficiency. Income tax expenses were RMB1.9 million compared with the income tax benefit of RMB2.6 million in the same period of 2024. Net loss attributable to So-Young International, Inc., was RMB36 million, compared with net income attributable to So-Young International, Inc., of RMB18.9 million during the same period last year.

研發費用為人民幣3,120萬元，較去年同期下降26.6%，主要由於員工效率的提升。所得稅費用為人民幣190萬元，而2024年同期的所得稅收益為人民幣260萬元。歸屬於新氧國際的淨虧損為人民幣3,600萬元，而去年同期歸屬於新氧國際的淨利為人民幣1,890萬元。

Non-GAAP net loss attributable to So-Young International, Inc., was RMB30.5 million compared with non-GAAP net income attributable to both So-Young International, Inc., of RMB22.2 million during the same period of 2024.

非美國通用會計準則下歸屬於新氧國際的淨虧損為人民幣3050萬元，而2024年同期非美國通用會計準則下歸屬於新氧國際的淨利潤為人民幣2220萬元。

Basic and diluted losses per ADS attributable to ordinary shareholders were RMB0.35 and RMB0.35, respectively, compared with basic and diluted earnings per ADS attributable to ordinary shareholders of RMB0.18 and RMB0.18, respectively, during the same period of 2024.

歸屬於普通股股東的每股美國存託憑證基本虧損0.35元人民幣，稀釋虧損0.35元人民幣，而2024年同期歸屬於普通股股東的每股美國存託憑證基本收益0.18元人民幣，稀釋虧損0.18元人民幣。

We have maintained a robust cash position with cash and cash equivalent, restricted cash and term deposits term deposits and short-term investments totaling RMB998.6 million as of June 30, 2025.

我們維持了強勁的現金狀況，截至 2025 年 6 月 30 日，現金及現金等價物、受限現金及定期存款、定期存款和短期投資總額為 9.986 億元。

Moving to our outlook for the third quarter of 2025, we expect Aesthetic Treatment service revenues to be between RMB150 million and RMB170 million, representing a 230.5% to 274.6% increase from the same period in 2024. This outlook reflects the ongoing ramping up of our branded aesthetic center network as we progress towards our year-end target of 50 centers.

展望2025年第三季度，我們預期美容治療服務收入將在人民幣1.5億元至人民幣1.7億元之間，較2024年同期成長230.5%至274.6%。這一前景反映了我們品牌美容中心網絡的不斷擴張，我們正在朝著年底設立 50 個中心的目標邁進。

With ample cash reserves and a demonstrated track record of execution, we are now entering into the next phase of growth with increased confidence for the future. As we scale and strengthen the influence of our aesthetic center network, we will continue to refine its standardized model to further enhance operational consistency and efficiency while establishing a robust base for recurring revenues. These efforts will reinforce our cost advantages, solidify our industry leadership, and create durable long-term value for our shareholders. This concludes our prepared remarks.

憑藉著充足的現金儲備和良好的執行記錄，我們正進入下一階段的成長，對未來充滿信心。隨著我們美容中心網路規模的擴大和影響力的增強，我們將繼續完善其標準化模式，以進一步提高營運的一致性和效率，同時為經常性收入奠定堅實的基礎。這些努力將加強我們的成本優勢，鞏固我們的產業領導地位，並為我們的股東創造持久的長期價值。我們的準備好的演講到此結束。

I will now turn over the call to the operator and open the call for QA. Operator, we are ready to take questions.

我現在將把電話轉給接線員並開始進行品質保證。接線員，我們準備好回答問題了。

(Operator Instructions) Nelson Cheung, Citibank.

（操作員指示）花旗銀行的 Nelson Cheung。

(interpreted) So let me translate the question in English. So we are particularly interested in the expansion plan of your (inaudible). Can you provide any details on what the plan would look like this year and next year? And what's the current progress and strategy for our franchise model? Thank you.

（翻譯）那麼讓我用英文翻譯這個問題。因此，我們對您的擴張計劃特別感興趣（聽不清楚）。您能否提供有關今年和明年計劃的詳細資訊？我們的特許經營模式目前的進展和策略是怎樣的？謝謝。

(interpreted) We have a clear (inaudible) for expanding our network. We aim to build our number of centers to 50 by the end of this year with a large portion already opened and more than 10 plants to open in the second half. In case cities such as Beijing, we expect to reach 10 centers by year-end 2025. Next year's expansion plan will be finalized in Q4 this year. Though initially, we anticipate new openings will match or exceed 2025 levels as our organizational capabilities continue to strengthen, our network will gradually expand to a wider range of cities. Long term, with full confidence in our aesthetic center business, we target to achieve 1,000 centers within 8 to 10 years.

（翻譯）我們對擴展網絡有明確的（聽不清楚）目標。我們的目標是在今年年底前將中心數量增加到 50 個，其中很大一部分已經開業，下半年還將開設 10 多家工廠。對於北京這樣的城市，我們預計到 2025 年底將達到 10 個中心。明年的擴張計劃將於今年第四季最終確定。雖然最初我們預計新開業門市數量將達到或超過 2025 年的水平，但隨著我們組織能力的不斷增強，我們的網路將逐步擴展到更廣泛的城市。從長遠來看，我們對我們的美容中心業務充滿信心，目標是在 8 到 10 年內實現 1,000 個中心的目標。

So franchising is not our immediate focus. This is primarily self-operated centers have relatively manageable CapEx with shorter payback periods. And our ample cash reserves can already support rapid expansion. That said, as part of our long-term strategy, the franchise model will play an important future expansion. Thus, we plan to pilot two to three franchise centers in Q4 this year, and we will determine the pace of future franchise expansion based on the operational performance of these pilot centers.

因此特許經營不是我們目前的重點。這主要是因為自營中心的資本支出相對容易管理，且投資回收期較短。而我們充足的現金儲備已經可以支持快速擴張。也就是說，作為我們長期策略的一部分，特許經營模式將在未來的擴張中發揮重要作用。因此，我們計劃在今年第四季試行兩到三個加盟中心，並根據這些試點中心的營運狀況來決定未來加盟擴張的節奏。

(inaudible), CITIC.

（聽不清楚），中信。

(interpreted) So let me briefly translate for myself. I'm (inaudible) from CITIC Securities. I have one question about the Chinese Aesthetic market. So how does the management's view of the growth potential of the Chinese Aesthetic market? And in this high contraction market, how will you adapt to the challenge of the new player entering? Yeah, that's my question. Thank you.

（翻譯）那麼讓我自己簡單翻譯一下。我是中信證券的（聽不清楚）。我有一個關於中國美學市場的問題。那麼管理階層如何看待中國美容市場的成長潛力？在這個高度收縮的市場中，您將如何適應新參與者進入的挑戰？是的，這就是我的問題。謝謝。

(interpreted) We remain optimistic about the prospect of China's medical aesthetics market. Compared with mature overseas markets such as South Korea, where the penetration rate of Medical Aesthetic has exceeded 20%. China's current penetration remains below 5%, indicating substantial growth potential. The light medical asset sector in China represents a fundamentally distinct model versus plastic surgery as it goes at a faster pace and can capture customer mind share more easily.

（解讀）我們依然看好中國醫美市場的前景。相較於韓國等成熟海外市場，醫美滲透率已超過20%。中國目前的滲透率仍低於5%，顯示出巨大的成長潛力。中國的輕醫療資產產業與整形外科有著根本的不同，因為它發展速度更快，更容易抓住客戶的心智。

According to industry data, China's light medical aesthetic market will reach around RMB340 billion by 2030. Our analysis forecasts that the penetration rate of large medical aesthetic chains in China will reach 30% in the future. And So-Young, as an industry leader is poised to achieve roughly 25% market share, translating to nearly RMB26 billion market opportunities.

根據產業數據顯示，2030年，中國輕醫美市場規模將達3,400億元左右。我們的分析預測未來中國大型醫美連鎖的滲透率將達到30%。而新氧作為產業領導企業，可望獲得約25%的市場份額，帶來近260億元人民幣的市場機會。

We believe that to truly succeed as a light medical aesthetic chain brand, three core capabilities are essential: first, sustainable low-cost customer acquisition; second, diversified upstream supply chain network; and third, organizational competence in operating a large-scale physical network. Other market players face inherent limitations in these areas. That's precisely why we will continue to focus on our business and hone our fundamental strength around these three capabilities, further reinforcing our long-term competitive edge in the industry.

我們認為，真正成功的輕醫美連鎖品牌，需要具備三個核心能力：第一，可持續的低成本獲客；第二，多元化的上游供應鏈網絡；第三，運營大規模實體網絡的組織能力。其他市場參與者在這些領域面臨固有的限制。正因如此，我們才會繼續專注於我們的業務，圍繞這三項能力磨練我們的基本實力，進一步增強我們在業界的長期競爭優勢。

Daisy Chen, Haitong International.

海通國際的陳黛西。

(interpreted) Let me translate my questions into English. In So-Young's business model, customer acquisition cost is one of our significant advantages. What is the outlook for the customer acquisition cost and marketing expenses in the future? And regarding the cost structure, can management share your views on the future trend of the consumables and the share of your cost structure? Thank you.

（翻譯）讓我將我的問題翻譯成英文。在新氧的商業模式中，獲客成本是我們顯著的優勢之一。未來客戶獲取成本和行銷費用的前景如何？關於成本結構，管理階層能否分享您對消耗品未來趨勢以及成本結構份額的看法？謝謝。

(interpreted) So-Young ranks among the industry leaders in customer acquisition efficiency. Currently, our average customer acquisition cost is only a few hundred RMB with over 70% of new customers coming from low-cost private domain traffic and referrals from existing customers. Private domain customers are the launch pads we use in new cities and serve as base for user community operations. Our performance in referrals from existing customers is particularly strong, with a conversion rate significantly higher than peers. This is driven by our (inaudible) approach of aggressive sales or prepaid membership card requirements. This allows existing customers to refer without pressure and lower barriers for new customers.

（解讀）新氧獲客效率位居產業前列。目前我們的平均獲客成本只有幾百元，超過70%的新客戶來自低成本私人交通和舊客戶推薦。私域客戶是我們在新城市的發射台，也是使用者社群運作的基地。我們在現有客戶推薦的表現尤其強勁，轉換率明顯高於同業。這是由我們的（聽不清楚）積極銷售或預付會員卡要求的方法所推動的。這使得現有客戶能夠毫無壓力地推薦，並降低了新客戶的門檻。

Long term, we believe sustainable low-cost acquisition hinges on accumulated brand influence. As our network densifies in key cities such as Beijing and Shenzhen, where penetration rates are consistently increasing, we will launch localized marketing initiatives, focusing on high-frequency touch points such as subways and cinemas to enhance brand visibility, boost customer awareness, and improve marketing efficiency.

從長遠來看，我們認為可持續的低成本收購取決於品牌影響力的累積。隨著我們在北京、深圳等重點城市的網路密集度不斷提升，滲透率持續提升，我們將推出在地化行銷舉措，重點放在地鐵、戲院等高頻接觸點，以提升品牌知名度、提升顧客認知度，並提高行銷效率。

While improving customer acquisition efficiency, we are also optimizing cost structure by increasing the proportion of self-controlled offerings used in our aesthetic centers. For light-based treatments, we offer medical lasers self-developed (inaudible) and hold exclusive distribution rights for the premium American BBL treatment with new devices such as picosecond lasers and radiofrequency microneedling in the pipeline.

在提升獲客效率的同時，我們也透過提升美容中心自控產品的比例來優化成本結構。對於基於光的治療，我們提供自主研發的醫療雷射（聽不清楚），並擁有美國優質 BBL 治療的獨家經銷權，同時正在研發皮秒雷射和射頻微針等新設備。

Additionally, after entering the upstream injectable segment a few years ago, we have been collaborating with upstream manufacturers to launch new products, including blockbuster products such as skin boosters and PLLA. The skin boosters are expected to receive approval in Q4 this year. Both products carry exclusive China distribution rights, granting us brand positioning wise and pricing power.

此外，自從幾年前進入上游注射劑領域以來，我們一直與上游製造商合作推出新產品，包括皮膚增強劑和PLLA等重磅產品。預計該皮膚增強劑將於今年第四季獲得批准。這兩款產品均擁有中國獨家經銷權，賦予我們品牌定位與定價權。

Furthermore, we expect our two proprietary animal-derived collagen products to gain approval in 2026 or 2027, further enriching our pipelines and self-controlled products are used more broadly across our network, the proportion of consumable costs will further decline with 50 centers targeted this year and 1,000 center long-term goal, the scaling of our network will significantly enhance our bargaining power in procurement and drive further reductions in consumable costs. Thank you.

此外，我們預計兩款自主研發的動物性膠原蛋白產品將於2026年或2027年獲得批准，這將進一步豐富我們的產品線，隨著自主研發產品在網絡的更廣泛應用，耗材成本佔比將進一步下降，今年的目標是達到50個中心，長期目標是達到1000個中心，網絡規模的議價將進一步增強的成本謝謝。

Jenny, CICC.

珍妮，中金公司。

(interpreted) Let me repeat in English. So in traditional aesthetic centers, we believe both doctors and center managers play very important roles. And as in our aesthetic centers with the network expanding, do we expect any bottlenecks when recruiting doctors in the future? And do we rely heavily on center managers? Thanks a lot.

（翻譯）讓我用英語重複一遍。因此，我們認為在傳統的美容中心，醫生和中心管理人員都扮演著非常重要的角色。隨著我們的美容中心網絡不斷擴大，未來在招募醫生時是否會遇到瓶頸？我們是否嚴重依賴中心經理？多謝。

(interpreted) Regarding doctors, there are about 40,000 doctors in China's medical aesthetics sector, and we continue to see doctors moving from public hospitals into this sector. This forms a solid base for our talent pipeline with focus on live medical aesthetic services where technical requirements for doctors are easier to standardize. Nearly -- newly recruited doctors can accumulate extensive practical experience in a short time and are quickly brought up to speed.

（翻譯）關於醫生，中國醫美產業大約有4萬名醫生，我們不斷看到醫生從公立醫院轉向這個行業。這為我們的人才儲備奠定了堅實的基礎，我們專注於現場醫療美容服務，因為該服務對醫生的技術要求更容易標準化。幾乎——新入職的醫生可以在短時間內累積豐富的實務經驗，並迅速上手。

Meanwhile, we are committed to building a high-quality team. All of over 130 full-time doctors have either completed internships or standardized training at public hospitals and nearly 90% of them are specialized in dermatology. We have established a tiered diagnosis and treatment system that matches treatment to doctors based on their level. We are also building regional training centers to provide structural support for their professional growth, coupled with benefits such as two-day weekends, social insurance and housing fund coverage and transparent career path, So-Young remains a highly attractive choice for doctors.

同時，我們致力於打造一支高素質的團隊。超過130名專職醫師全部完成公立醫院實習或標準化培訓，近90%為皮膚科專科醫生。我們建立了分級診療制度，並依照醫師級別對症下藥。我們也正在建立區域培訓中心，為他們的職業發展提供結構性支持，再加上雙休、社會保險和住房公積金覆蓋以及透明的職業道路等福利，新氧對醫生來說仍然是一個極具吸引力的選擇。

Turning to center managers. Our organizational structure naturally reduces reliance on center managers. We operate on an online appointment booking and on-site service verification model. Center managers mainly handle on-site management. We access them primarily on operational metrics such as safety, customer experience and consultation efficiency.

轉向中心經理。我們的組織結構自然減少了對中心經理的依賴。我們採用線上預約和現場服務驗證模式。中心經理主要負責現場管理。我們主要根據安全性、客戶體驗和諮詢效率等營運指標來評估它們。

Management of marketing, product management, pricing and recruitment of doctors and nurses are handled by our dedicated center operations platform. This greatly improves day-to-day efficiency at each center. We have also built a digital dashboard that enables headquarters to monitor center operations in real time. Going forward, we will continue to enhance the maturity of digital management to further reduce management costs. Thank you.

行銷、產品管理、定價以及醫生和護士的招聘管理均由我們專門的中心營運平台負責。這大大提高了每個中心的日常效率。我們還建立了一個數位儀表板，使總部能夠即時監控中心的運作。未來，我們將持續提升數位化管理的成熟度，進一步降低管理成本。謝謝。

Yiting Li, Haitong.

李依婷，海通。

(interpreted) Let me translate myself. And congratulations first for achieving high-quality growth in the aesthetic center business. And I would like to ask what factors will differentiate So-Young's product strategy and planning from others in the future? Thank you.

（翻譯）讓我自己翻譯一下。首先恭喜美容中心業務實現高品質成長。另外想問一下，未來新氧的產品策略和規劃會有哪些區別於其他品牌的因素？謝謝。

(interpreted) Our product strategy focus on anti-aging treatments with all treatments developed around this core theme to ensure consistency across our entire portfolio. Unlike some institutions that use low-priced single products to attractive customers and then upsell to more profitable ones, we emphasize overall cost effectiveness. We make sure each treatment delivers a healthy gross margin and don't rely on loss-making products to attract customers.

（解釋）我們的產品策略專注於抗衰老治療，所有治療都圍繞著這一核心主題開發，以確保我們整個產品組合的一致性。與一些機構用低價的單一產品吸引客戶，然後再向更有利可圖的客戶追加銷售不同，我們強調整體成本效益。我們確保每種治療方法都能帶來健康的毛利率，並且不依賴虧損產品來吸引客戶。

We continue to advance our blockbuster strategy. The goal is to have a small number of core treatment contribute most to revenue with a focus on the treatment level rather than individual products. Our approach is similar to Sam's Club, curated bestseller model, where only the very best options are selected to drive strong repeat business and positive word-of-mouth referrals.

我們持續推動重磅戰略。目標是讓少數核心治療對收入做出最大貢獻，並專注於治療水平而不是單一產品。我們的方法類似於山姆會員店的精選暢銷書模式，即只選擇最好的選擇來推動強勁的回頭客業務和積極的口碑推薦。

Going forward, we will continue to optimize our product portfolio and dynamically adjust the blockbuster products. We will closely monitor change in market demand and competitive trades as well as new product RFP and launch dynamics. This approach will allow us to introduce new products that address customer demand in a timely manner and have strong market potential to maintain our leading position. Thank you.

未來，我們將持續優化產品結構，動態調整重磅產品。我們將密切關注市場需求和競爭產業的變化以及新產品的 RFP 和發布動態。這種方法將使我們能夠及時推出滿足客戶需求且具有強大市場潛力的新產品，以保持我們的領先地位。謝謝。

James (inaudible), Dawson Securities.

詹姆斯（聽不清楚），道森證券。

Hello, this is James (inaudible) Securities. And my question is, in addition to your aesthetic center business, we are also very interested in our POP business. Can management provide any updates on future development plans for the POP business?

您好，我是詹姆斯（聽不清楚）證券公司。我的問題是，除了你們的美容中心業務之外，我們對 POP 業務也非常感興趣。管理層能否提供有關 POP 業務未來發展計劃的最新資訊？

(interpreted) Our POP business has always been a segment with relatively high gross margins and net margin. While revenue has fluctuated this quarter, it remains a key pillar of the group's profitability. We will maintain strict cost controls to preserve its healthy margins.

(解釋)我們的POP業務一直是毛利率和淨利率相對較高的業務板塊。儘管本季收入有所波動，但它仍然是集團盈利的重要支柱。我們將嚴格控製成本，以維持健康的利潤率。

As our aesthetic center network continues to expand, we will actively promote synergies between the POP and aesthetic center business. Our aesthetic centers drive a large volume of high-quality traffic, including new customers acquired through referral programs and public domain traffic.

隨著美容中心網路的不斷擴大，我們將積極促進POP與美容中心業務之間的協同效應。我們的美容中心吸引了大量高品質的流量，包括透過推薦計劃和公共領域流量獲得的新客戶。

While these customers receive standardized light medical aesthetic services at our brand clinics, they also generate demand for non-standardized surgical and minimally invasive procedures. We plan to establish a more refined merchant classification and rating mechanism on our platform. By leveraging user behavior and preferences, we will be able to make targeted recommendations for high-quality POP merchants. This will improve traffic monetization efficiency and create new incremental growth for the POP business. Thank you.

這些顧客在品牌診所接受標準化輕醫美服務的同時，也產生了對非標準化手術、微創手術的需求。我們計劃在平台上建立更精細的商家分類和評級機制。透過利用用戶行為和偏好，我們將能夠針對性地推薦優質POP商家。這將提升流量變現效率，為POP業務創造新的增量。謝謝。

This concludes our question-and-answer session. I would like to turn the conference back over for any closing remarks.

我們的問答環節到此結束。我想將會議轉回並發表結束語。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。

Portions of this transcript that are marked (interpreted) were spoken by an interpreter present on the live call. The interpreter was provided by the company sponsoring this event.

本記錄中標記（翻譯）的部分是由現場通話中的翻譯人員說的。翻譯由贊助此活動的公司提供。