BEIJING, Aug. 31, 2026 /PRNewswire/ -- So-Young International Inc. (Nasdaq: SY) ("So-Young" or the "Company"), the leading aesthetic treatment platform in China connecting consumers with online services and offline treatments, today announced its unaudited financial results for the second quarter ended June 30, 2026.

Second Quarter 2026 Financial Highlights

   -- Total revenues were RMB505.2 million (US$74.5 million[1]), an increase of 
      33.4% from RMB378.7 million in the corresponding period of 2025. The 
      aesthetic treatment services revenues were RMB331.4 million (US$48.8 
      million), an increase of 129.5% from RMB144.4 million in the 
      corresponding period of 2025, exceeding the high end of guidance. 
 
   -- Net loss attributable to So-Young International Inc. was RMB22.7 million 
      (US$3.3 million), compared with net loss attributable to So-Young 
      International Inc. of RMB36.0 million in the same period of 2025. 
 
   -- Non-GAAP net loss attributable to So-Young International Inc.[2] was 
      RMB21.0 million (US$3.1 million), compared with non-GAAP net loss 
      attributable to So-Young International Inc. of RMB30.5 million in the 
      same period of 2025. 

Second Quarter 2026 Operational Highlights

   -- The number of verified treatment visits to the branded aesthetic centers 
      for the quarter reached approximately 165,200, an increase of 145% from 
      approximately 67,400 in the same period of 2025. The number of verified 
      aesthetic treatments performed surpassed 362,300, an increase of 134% 
      from approximately 154,500 in the same period of 2025. 
 
   -- The number of active users, defined as those who visited branded 
      aesthetic centers at least once during the 12-month period ended on June 
      30, 2026, exceeded 255,300, an increase of 154% from 100,400 users during 
      the corresponding period in 2025. 
 
   -- The number of core members[3] grew by over 15,000 during the quarter, 
      representing a sequential increase of approximately 24%. These core 
      members contributed over 80% of aesthetic treatment services revenues, 
      with a quarterly repurchase rate of nearly 70%. 
 
   -- As of June 30, 2026, So-Young had 65 fully operational branded aesthetic 
      centers (63 directly-operated, 2 franchised) across eighteen major 
      cities: Beijing, Shanghai, Guangzhou, Shenzhen, Hangzhou, Chengdu, Wuhan, 
      Chongqing, Ningbo, Changsha, Tianjin, Xi'an, Suzhou, Hefei, Kunming, 
      Nanjing, Jinan, and Foshan. Among them, 47 centers achieved 
      profitability* in the second quarter of 2026. In addition, 51 centers 
      generated positive quarterly operating cash flow* in the second quarter 
      of 2026. Same-store sales growth** in this quarter was 52%, compared to 
      14% in the same quarter of 2025. 
 
([1]) This press release contains translations of certain Renminbi (RMB) 
amounts into U.S. dollars (US$) solely for the convenience of the reader. 
Unless otherwise specified, all translations of Renminbi amounts into U.S. 
dollar amounts in this press release are made at RMB6.7851 to US$1.00, which 
was the U.S. dollars middle rate announced by the Board of Governors of the 
Federal Reserve System of the United States on June 30, 2026. 
([2]) Non-GAAP net loss attributable to So-Young International Inc. is defined 
as net loss attributable to So-Young International Inc. excluding share-based 
compensation expenses. See "Reconciliation of GAAP and Non-GAAP Results" at 
the end of this press release. 
([3]) We categorize our user base across nine tiers (L0 through L8). Core 
members represent users at Tier L3 and above. 
 
* Center-level profitability measures whether an individual aesthetic center 
achieved positive profit in a given period. It is calculated by deducting 
consumable materials costs, personnel costs, center rental expenses, center 
depreciation expenses, and other center-level operating costs from the 
company's self-operated store revenues, before allocation of any back-office 
or mid-office expenses. Quarterly operating cash flow refers to total cash 
collected from orders less center-level operating payments in a given period, 
and excluding operating expense payments made by back-office or mid-office 
departments during the same period. Center-level profitability and quarterly 
operating cash flow are metrics derived from the Company's internal management 
accounts, which have not been audited. 
** Same-store sales growth represents the year-over-year growth in quarterly 
revenue from stores that are comparable and continuously operated during both 
the current quarter and the same quarter of the prior year. 
 

Management Commentary

Mr. Xing Jin, Co-Founder and Chief Executive Officer of So-Young, commented, "Our sustained focus on scale and efficiency yielded another strong quarter for our core aesthetic treatment business. Supported by enhanced medical capabilities, a robust standardized delivery system, and deeper AI integration, we scaled our business more efficiently. This solid execution is validated by a 129.5% year-over-year increase in second-quarter aesthetic treatment services revenues with a 3.8 percentage-point expansion in segment gross margin. Going forward, we will further strengthen our supply chain and accelerate AI-powered transformation to deliver more competitive products and services across our expanding network, laying a solid foundation for sustainable, high-quality growth."

Ms. Shannon Shen, Chief Financial Officer of So-Young, added, "In the second quarter of 2026, our aesthetic treatment business exceeded RMB330 million in revenue, representing approximately 130% year-over-year growth and marking the tenth consecutive quarter of triple-digit expansion. This strong performance propelled our second-quarter total revenues to an all-time high of RMB505.2 million, up 33.4% year-over-year. While maintaining this rapid topline growth, we have remained highly focused on expansion quality and sustainability, striving for healthier unit economics and narrowing net loss attributable to the Company by 37.0% year-over-year. These results reaffirmed both our market insights and execution excellence, as we continued to enhance our medical service delivery, organizational capabilities, and supply chain management, while improving operational efficiency. Looking ahead, we see a clear path toward profitability as our industry leadership solidifies and economies of scale continue to unfold."

Second Quarter 2026 Financial Results

Revenues

Total revenues were RMB505.2 million (US$74.5 million), an increase of 33.4% from RMB378.7 million in the same period of 2025. The increase was primarily due to business expansion of the branded aesthetic centers.

   -- Aesthetic treatment services revenues were RMB331.4 million (US$48.8 
      million), an increase of 129.5% from RMB144.4 million in the same period 
      of 2025. The increase was primarily due to the business expansion of the 
      branded aesthetic centers. 
 
   -- Information and reservation services revenues were RMB87.9 million 
      (US$13.0 million), a decrease of 35.0% from RMB135.2 million in the same 
      period of 2025. The decrease was primarily due to a decrease in the 
      number of medical service providers subscribing to information services 
      on So-Young's platform. 
 
   -- Sales of medical products and maintenance services revenues were RMB73.9 
      million (US$10.9 million), a decrease of 2.8% from RMB76.0 million in the 
      same period of 2025, primarily due to a decrease in the order volume of 
      medical equipment. 
 
   -- Other services revenues were RMB12.0 million (US$1.8 million), a decrease 
      of 48.2% from RMB23.2 million in the same period of 2025, primarily due 
      to a decrease in revenues from insurance brokerage services. 

Cost of Revenues

Cost of revenues was RMB282.4 million (US$41.6 million), an increase of 53.0% from RMB184.6 million in the second quarter of 2025. The increase was primarily due to the business expansion of the branded aesthetic centers.

   -- Cost of aesthetic treatment services was RMB238.4 million (US$35.1 
      million), an increase of 118.0% from RMB109.4 million in the second 
      quarter of 2025. The increase was primarily due to the business expansion 
      of the branded aesthetic centers. 
 
   -- Cost of information and reservation services was RMB5.2 million (US$0.8 
      million), a decrease of 68.7% from RMB16.7 million in the second quarter 
      of 2025. The decrease was in line with the decrease in revenue generated 
      from information and reservation services. 
 
   -- Cost of medical products sold and maintenance services was RMB29.9 
      million (US$4.4 million), a decrease of 24.3% from RMB39.5 million in the 
      second quarter of 2025. The decrease was primarily due to a decrease in 
      costs associated with the sales of medical equipment. 
 
   -- Cost of other services was RMB8.9 million (US$1.3 million), a decrease of 
      53.2% from RMB19.0 million in the second quarter of 2025. The decrease 
      was primarily due to a decrease in costs associated with insurance 
      brokerage services. 

Operating Expenses