Aug 31, 2026 earnings call — Aesthetic clinic expansion and product launches
Aesthetic treatment revenue reached RMB 331.4 million, lifting group revenue to RMB 505.2 million and narrowing net loss to RMB 22.7 million.
Revenue $0.1B (est $0.1B) · EPS $-0.03 (est $-0.09)
Key quotes
"By the end of Q2, So-Young Clinic expanded into 18 cities with 65 centers in total."
"In late April, Miracle Collagen, our joint product with Jinbo Biopharmaceuticals, launched to a warm reception with over 66,000 units sold to date."
"Under the constraints of medical safety, user privacy and data compliance, we believe AI's core value lies in empowering physicians, keeping delivery quality consistent and breaking the industry's ceiling on scale."
Analyst Q&A 4
Collaboration benefits with Jinbo
Q (Jinpeng He · Citic): He asked what both parties liked about the Jinbo collaboration and what benefits it brings.
A: They said the partnership is mutually beneficial as demand moves toward natural restoration and long-lasting collagen products. They use real-world data to guide product, training, procurement and inventory choices, reducing guesswork and excess stock. They will extend this co-creation model to more partners and turn the clinic network into an innovation infrastructure.
"We are pleased to have reached a reliable mutually beneficial partnership with Jinbo as medical aesthetic demand moves towards natural restoration, tissue regeneration and long-lasting outcomes." — Mona Qiao
How AI is used and future plans
Q (Jian Wang · GF): He asked how AI is being applied in the business, where it adds the most value, and the future direction.
A: They said AI's core value is turning experience-driven, hard-to-reproduce procedures into uniform, visible and traceable services and helping share premium medical skills with lower-tier cities. Current focus is on product authentication, back-office quality control, data governance, QR code traceability and embedding top doctors' experience into SOPs and case libraries. They will roll out first-generation fully intelligent centers in Q4 to start wide AI deployment across the network.
"The core value of AI lies in transforming experience-driven hard-to-reproduce procedures into uniform visible and traceable offerings." — Mona Qiao
Why aesthetic center gross margin improved
Q (Fuk Lung Cheung · Citibank): He asked what drove the aesthetic center gross margin improvement and how they plan to expand margins further.
A: They said gross margin rose by 3.8 percentage points year-over-year and 1 percentage point quarter-over-quarter, driven by scale and operational efficiency. They improved per-center revenue, raised bed utilization targets (from 10 to 15 we were told as an example), shortened new-center ramp times, gained procurement leverage with upstream partners and will use new products plus AI and central operations to further lift per-center economics.
"Our gross margin increased by 3.8 percentage points year-over-year and 1 percentage point quarter-over-quarter, an excellent result that demonstrates a clear trend of sustained improvement, particularly considering our pace of opening 11 new centers in Q2." — Mona Qiao
Drivers and path to group profitability
Q (Kewei Chen · Haitong): She asked what the core levers were for loss reduction this year and how the company will reach group-level profitability.
A: They said the core lever is focus: concentrate on the clinic business and profitable operations while keeping POP and injectable sales profitable and cutting losses elsewhere. The clinic breakeven is clear given fixed-cost anchoring and improving margins and acquisition efficiency; they expect substantial clinic margin improvement in Q3 and Q4, will optimize costs with digital and AI, prioritize ROI marketing, and are confident in achieving group-level profitability.
"To sum up, our core lever for loss reduction this year, in one word, it is focus." — Mona Qiao