So-Young International NASDAQ: SY reported sharply higher first-quarter 2026 revenue, driven by rapid growth in its branded aesthetic center business, while management said the company is continuing to expand its clinic footprint and invest in standardized medical delivery.
Total revenue rose 45.6% year over year to RMB 432.8 million, according to Sha Zhang, vice president of finance. Revenue from aesthetic treatment services increased 185.8% year over year to RMB 282.4 million and accounted for more than 65% of total revenue in the quarter.
Chairman and Chief Executive Officer Xing Jin said China’s medical aesthetic industry is moving toward more routine demand and growing supply, making scale, standardized operations and consistent delivery increasingly important for leading companies.
“Large-scale operational capabilities and a uniform delivery framework have become the key mode for top players to achieve high-quality growth,” Jin said.
Aesthetic center business drives growth
Jin said So-Young Clinic continued to lead China’s medical aesthetics chain market by center count, treatment volume and user base. As of the call, he said So-Young Clinic had expanded to 59 centers across 17 cities, a net addition of 10 centers from the end of 2025.
Zhang, discussing results as of March 31, said the company operated 54 So-Young clinics across 16 major cities, reflecting a net addition of five centers during the quarter. She broke down aesthetic treatment service revenue by center maturity:
- 20 mature-phase centers generated RMB 150 million, or about RMB 7.5 million per center.
- 23 growth-phase centers contributed RMB 109.5 million, or about RMB 4.8 million per center.
- 11 ramp-up-phase centers contributed RMB 22.9 million, or about RMB 2.1 million per center.
Zhang said average revenue per ramp-up center grew significantly both year over year and quarter over quarter, which she said validated the company’s increasingly standardized operations.
In the quarter, verified treatment visits exceeded 148,000, up 172% year over year, while verified treatments performed were more than 325,000, up 164%, Jin said. The active user base reached more than 210,000 by the end of March, including more than 63,000 level 3 and above core members.
Jin said referrals accounted for 52% of new customers in the first quarter, while customer acquisition costs remained “well under control.” He also cited marketing partnerships, including Disney co-branded pop-ups for the company’s Miracle Collagen product line, and endorsements from actress Fan Bingbing and Thai actress Mai.
Profitability improves at the clinic level
Management said operating efficiency improved across the clinic network. Jin said 41 centers were profitable in the quarter, while 48 centers generated positive operating cash flow. The aesthetic center business gross margin reached 27%.
Zhang said the number of profitable centers increased by 15 from the prior quarter, and the number of centers with positive operating cash flow increased by nine.
“Alongside our ongoing scale expansion and operational efficiency enhancement, we are confident in our ability to continue driving revenue growth and improving our profitability profile of this segment,” Zhang said.
Jin said the company will continue expanding its footprint, with a focus on major Tier 1 cities, while maintaining a measured pace of expansion. He said scale effects, faster new-center ramp-ups and better operating efficiency should support higher per-center revenue and an improved financial model for the chain.
Medical delivery and supply chain remain key focus areas
Jin said So-Young is strengthening its physician team, treatment quality and service experience. By the end of March, the company had about 230 full-time physicians, up 9% from the end of 2025.
In the first quarter, So-Young established its Phoenix Medical R&D and Training Center and National Command and Control Center. Jin said the R&D center includes in-house labs for energy-based devices, injectables, ex vivo testing and other evaluations, allowing the company to assess products based on clinical evidence rather than marketing claims.
He said all physicians joining So-Young clinics must complete intensive training and pass assessments before practicing. The command and control center monitors safety, compliance, user experience and operating data across the clinic network.
On the supply chain side, Jin highlighted an April strategic partnership with Jinbo Bio-Pharmaceutical. Through the partnership, So-Young obtained exclusive rights to Jinbo’s new WeMed CoPack product and launched its Miracle Collagen series. Jin said the product is So-Young’s 20th GREEN LABEL product, a system focused on compliance, traceability and price transparency.
Revenue from “Blockbuster” products rose to 41% of first-quarter revenue, driven by products including BBL and Thermage, Jin said.
Costs rise as company expands
Cost of revenue increased 65.8% year over year to RMB 251 million, primarily due to the expansion of branded aesthetic centers, Zhang said. Cost of aesthetic treatment services rose 156.4% to RMB 205.8 million.
Total operating expenses increased 26.6% to RMB 239.7 million, growing at a slower pace than revenue. Sales and marketing expenses rose 33.7% to RMB 130.8 million, reflecting higher branding, user acquisition spending and payroll costs for branded aesthetic centers. General and administrative expenses increased 42.5% to RMB 84.5 million, while research and development expenses declined 24.2% to RMB 24.3 million due to improved staff efficiency.
Net loss attributable to So-Young was RMB 49.2 million, compared with RMB 33.1 million in the prior-year period. Non-GAAP net loss attributable to So-Young was RMB 46.6 million, compared with RMB 31.5 million a year earlier. Basic and diluted loss per ADS was RMB 0.48, compared with RMB 0.32 in the prior-year period.
As of March 31, cash and cash equivalents, restricted cash, term deposits and short-term investments totaled RMB 880 million, down from RMB 936.4 million at the end of 2025. Zhang said the decrease reflected strategic capital allocation to accelerate branded aesthetic center expansion.
Management outlines industry opportunity and outlook
During the question-and-answer session, Jin said So-Young remains bullish on light medical aesthetics in China despite slower overall industry growth and intensified competition. He said light medical aesthetics represented nearly 80% of China’s medical aesthetics market as of 2025 and has become the mainstream category.
Jin said consumers are increasingly focused on anti-aging rather than changing appearance, are more rational about paying for technology rather than marketing, and show rising adoption in lower-tier cities. He said So-Young Clinic is positioned as a “Sam’s Club of medical aesthetics,” emphasizing consistency, affordability and accessibility.
For the second quarter, So-Young expects aesthetic treatment service revenue of RMB 307 million to RMB 317 million, representing year-over-year growth of 102.6% to 119.5%.
About So-Young International NASDAQ: SY
So-Young International Inc operates a leading digital marketplace and community platform focused on the medical aesthetic industry in China. Headquartered in Shanghai and founded in 2013, the company connects consumers seeking cosmetic treatments with a network of accredited clinics, licensed physicians and beauty service providers. Its online ecosystem offers a wealth of educational content, peer reviews and before-and-after galleries designed to help users make informed decisions about aesthetic procedures.
The company's platform is accessible via web and mobile applications, where users can browse service packages, compare providers, read expert articles and schedule appointments directly through an integrated booking system.
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