So-Young Reports Unaudited First Quarter 2025 Financial Results

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 firstquarterendedMarch 31, 2025.

FirstQuarter 2025 Financial Highlights

— Total revenues were RMB297.3 million (US$41.0 million[1]), compared with RMB318.3 million in the corresponding period of 2024, at the high-end of its previous guidance range.

— Net loss attributable to So-Young International Inc. was RMB33.1 million (US$4.6 million), compared with net loss attributable to So-Young International Inc. of RMB21.2 million in the same period of 2024.

— Non-GAAP net loss attributable to So-Young International Inc.[2] was RMB31.5 million (US$4.3 million), compared with non-GAAP net income attributable to So-Young International Inc. of RMB4.1 million in the same period of 2024.

First Quarter 2025 Operational Highlights

— The aggregate value of medical aesthetic treatment transactions facilitated by So-Young's platform was RMB303.2 million, compared with RMB367.1 million in the same period of 2024.

— Number of verified paid visits for the quarter reached over 45,500, compared with approximately 4,600 in the same period of 2024. The number of verified paid aesthetic treatments performed surpassed 92,900, compared with approximately 8,500 in the same period of 2024.

— The number of active users, defined as those who visited the aesthetic centers at least once during the 12-month period ending on March 31, 2025, exceeded 75,700, compared with approximately 8,000 users during the corresponding period in 2024.

— As of March 31, 2025, So-Young had 23 aesthetic centers in nine major cities, including Beijing, Shanghai, Guangzhou, Shenzhen, Hangzhou, Chengdu, Wuhan, Chongqing and Changsha, all of which are fully operational. Among them, 18 centers have achieved positive monthly operating cash flow. The following table shows the revenues generated by So-Young aesthetic centers, categorized by their phase of development:

Phase(The length of time Number of Revenue Average Revenue persince establishment) Centers (RMB) Center (RMB)Ramp-up (0-3 months) 4 1,414,000 354,000Growth (4-12 months) 15 75,860,000 5,057,000Maturity (over 12 months) 4 21,553,000 5,388,000

— The number of institutions So-Young served with supply chain solutions for injectables grew to over 1,500 as of March 31, 2025. Shipments of Elasty injectable products reached approximately 27,900 units in the first quarter of 2025, compared with 24,500 in the same period of 2024.

Mr. Xing Jin, Co-Founder and Chief Executive Officer of So-Young, commented, “Our branded aesthetic centers continue to generate strong growth momentum, achieving triple-digit year-over-year revenue growth. This performance demonstrates how our integrated transformation strategy is fulfilling untapped market needs and creating synergies across our core business lines. We are confident this momentum will continue as we scale, enabling us to address key customer pain points and elevate the overall medical aesthetic experience. The integration of our subsidiary, Wuhan Miracle Laser, has further strengthened our upstream capabilities, expanding our product pipeline and supporting the deployment of our branded devices across our offline network. These advancements enhance our ability to reduce costs while increasing customer spend and fostering long-term loyalty. We remain focused on expanding the density of our aesthetic centers to deliver high-quality, cost-effective, and reliable medical aesthetic solutions to more consumers.”

Mr. Hui Zhao, Chief Financial Officer of So-Young, added, “We are encouraged to see our aesthetic center business emerge as a new growth driver, showcasing our ability to commercialize an innovative business model and set new industry benchmarks. While our near-term financial results reflect ongoing strategic investments to support long-term sustainable growth, we remain committed to disciplined expansion and continuous operational improvements across our existing aesthetic centers.”

[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 RMB7.2567 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 March 31, 2025.[2]Non-GAAP net income/(loss)attributable to So-Young International Inc. is defined as net income/(loss) attributable to So-Young International Inc.excluding share-based compensation expenses, impairment of goodwill attributable to So-Young International Inc., impairment of long-term investment attributable to So-Young International Inc., allowance for credit loss from loans to investees attributable to So-Young International Inc., gain/(loss) on disposal of long-term investment and fair value change of long-term investment attributable to So-Young International Inc., and tax effects on non-GAAP adjustments. See “Reconciliation of GAAP and Non-GAAP Results” at the end of this press release.

First Quarter 2025 Financial Results

Revenues

Total revenues were RMB297.3 million (US$41.0 million), a decrease of 6.6% from RMB318.3 million in the same period of 2024. The decrease was primarily due to a decrease in the number of medical service providers subscribing to information services on So-Young's platform.

— Information, reservation services and other revenues were RMB142.9 million (US$19.7 million), a decrease of 34.1% from RMB216.6 million in the same period of 2024. The decrease was primarily due to a decrease in the number of medical service providers subscribing to information services on So-Young's platform.

— Aesthetic treatment services[3]revenues were RMB98.8 million (US$13.6 million), an increase of 551.4% from RMB15.2 million in the same period of 2024. The increase was primarily due to the business extension of the branded aesthetic centers.

— Sales of medical products and maintenance services were RMB55.6 million (US$7.7 million), a decrease of 35.7% from RMB86.5 million in the same period of 2024, primarily due to a decrease in the order volume of medical equipment.

Cost of Revenues

Cost of revenues was RMB151.4 million (US$20.9 million), an increase of 29.1% from RMB117.3 million in the first quarter of 2024. The increase was primarily due to business extension of the branded aesthetic centers. Cost of revenues included share-based compensation expenses of RMB0.0 million (US$0.0 million), compared with RMB0.1 million in the corresponding period of 2024.

— Cost of information, reservation services and others[4]were RMB40.7 million (US$5.6 million), a decrease of 34.1% from RMB61.8 million in the first quarter of 2024. The decrease was primarily due to a decrease in the cost of services associated with So-Young Prime.

— Cost of aesthetic treatment services were RMB80.3 million (US$11.1 million), an increase of 547.6% from RMB12.4 million in the first quarter of 2024. The increase was primarily due to the business extension of the branded aesthetic centers.

— Cost of medical products sold and maintenance services were RMB30.4 million (US$4.2 million), a decrease of 29.4% from RMB43.1 million in the first quarter of 2024. The decrease was primarily due to a decrease in costs associated with the sales of medical equipment.

[3]Since the fourth quarter of 2024, in light of the better monitoring business development of branded aesthetic centers, the previous line item information services and others was separated into two line items, which are aesthetic treatment services and information services and others. And the Company grouped the revenue generated from information services and others and reservation services, which is renamed as information, reservation services and others.The revenue generated from aesthetic treatment services was previously reported in line item of information services and others. The information, reservation services and others for the first quarter of 2024 have also been retrospectively updated. The amount reclassified from previous line item information services and others to aesthetic treatment services is RMB15.2 million for the first quarter of 2024.[4]Since the fourth quarter of 2024, the previous line item cost of services and others was separated into two line items, which are cost of aesthetic treatment services and cost of information, reservation services and others. Cost of aesthetic treatment services primarily consists of expenditures relating to aesthetic treatment services in branded aesthetic centers, and the remaining cost of services and others is reclassified into cost of information, reservation services and others. The cost of aesthetic treatment services and cost of information, reservation services and others for the first quarter of 2024 have also been retrospectively reclassified.

Operating Expenses

Total operating expenses were RMB189.3 million (US$26.1 million), a decrease of 20.4% from RMB237.8 million in the first quarter of 2024.

— Sales and marketing expenses were RMB103.4 million (US$14.3 million), a decrease of 8.7% from RMB113.3 million in the first quarter of 2024. The decrease was mainly due to a decrease in expenses associated with branding and user acquisition activities. Sales and marketing expenses included share-based compensation expenses of RMB0.1 million (US$0.0 million) in the first quarter of 2025, compared with RMB0.1 million in the corresponding period of 2024.

— General and administrative expenses were RMB53.7 million (US$7.4 million), a decrease of 36.7% from RMB85.0 million in the first quarter of 2024. The decrease was primarily due to a decrease in share-based compensation expenses. General and administrative expenses included share-based compensation expenses of RMB1.4 million (US$0.2 million) in the first quarter of 2025, compared with RMB24.5 million in the corresponding period of 2024.

— Research and development expenses were RMB32.1 million (US$4.4 million), a decrease of 18.9% from RMB39.6 million in the first quarter of 2024. The decrease was primarily attributable to improvements in staff efficiency. Research and development expenses included share-based compensation expenses of RMB0.1 million (US$0.0 million) in the first quarter of 2025, compared with RMB0.8 million in the corresponding period of 2024.

Income Tax Benefits

Income tax benefits were RMB1.6 million (US$0.2 million), compared with income tax benefits of RMB2.6 million in the same period of 2024.

Net Loss Attributable to So-Young International Inc.

Net loss attributable to So-Young International Inc. was RMB33.1 million (US$4.6 million), compared with a net loss attributable to So-Young International Inc. of RMB21.2 million in the first quarter of 2024.

Non-GAAP Net (Loss)/Income Attributable to So-Young International Inc.

Non-GAAP net loss attributable to So-Young International Inc., which excludes the impact of share-based compensation expenses, was RMB31.5 million (US$4.3 million), compared with RMB4.1 million non-GAAP net income attributable to So-Young International Inc. in the same period of 2024.

Basic and Diluted Loss per ADS

Basic and diluted loss per ADS attributable to ordinary shareholders were RMB0.32 (US$0.04) and RMB0.32 (US$0.04), respectively, compared with basic and diluted loss per ADS attributable to ordinary shareholders of RMB0.21 and RMB0.21, respectively, in the same period of 2024.

Cash and Cash Equivalents, Restricted Cash and Term Deposits, Term Deposits and Short-Term Investments

As of March 31, 2025, cash and cash equivalents, restricted cash and term deposits, term deposits and short-term investments were RMB1,106.2 million (US$152.4 million), compared with RMB1,253.2 million as of December 31, 2024.

Business Outlook

For the second quarter of 2025, So-Young expects aesthetic treatment services revenues to be between RMB120.0 million (US$16.5 million) and RMB140.0 million (US$19.3 million), representing a 337.3% to 410.1% increase from the same period in 2024. The above outlook is based on the current market conditions and reflects the Company's preliminary estimates of market and operating conditions, as well as customer demand, which are all subject to change.

Non-GAAP Financial Measures

To supplement the financial measures prepared in accordance with generally accepted accounting principles in the United States, or GAAP, this press release presents non-GAAP income/(loss) from operations and non-GAAP net income/(loss) attributable to So-Young International Inc. by excluding share-based compensation expensesandimpairment of goodwillfrom income/(loss) from operations,and excluding share-based compensation expenses,impairment of goodwill, impairment of long-term investment,allowance for credit loss from loans to investees, gain/(loss) on disposal of long-term investment and fair value change of long-term investment and tax effects on non-GAAP adjustments from net income/(loss) attributable to So-Young International Inc., respectively. Starting from the fourth quarter of 2024, the Company newly included impairment of long-term investment,allowance for credit loss from loans to investees, gain/(loss) on disposal of long-term investment and fair value change of long-term investment and tax effects on non-GAAP adjustments as additional adjustments in its non-GAAP financial measures, which may result in differences from previously disclosed non-GAAP figures.

The Company believes these non-GAAP financial measures are important to help investors understand the Company's operating and financial performance, compare business trends among different reporting periods on a consistent basis and assess the Company's core operating results, as they exclude certain expenses (i) that are not expected to result in cash paymentsor (ii) that are non-recurring in nature or may not be indicative of the Company's core operating results and business outlook. The use of the above non-GAAP financial measures has certain limitations. Share-based compensation expenses, the impairment of goodwill, impairment of long-term investment and allowance for credit loss from loans to investees are non-cash in nature. Gain/(loss) on disposal of long-term investment and fair value change of long-term investment are non-recurring in nature. And, in substance, both impairment of long-term investment and allowance for credit loss from loans to investees are impairment of investment. All these are not reflected in the presentation of the non-GAAP financial measures,but should be considered in the overall evaluation of the Company's results. The Company compensates for these limitations by providing the relevant disclosure of its share-based compensation expenses, impairment of goodwill, impairment of long-term investment, allowance for credit loss from loans to investees, gain/(loss) on disposal of long-term investment and fair value change of long-term investment and tax effects on non-GAAP adjustments in the reconciliations to the most directly comparable GAAP financial measures, which should be considered when evaluating the Company's performance. These non-GAAP financial measures should be considered in addition to financial measures prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, financial measures prepared in accordance with GAAP. Reconciliation of each of these non-GAAP financial measures to the most directly comparable GAAP financial measure is set forth at the end of this release.

Conference Call Information

So-Young's management will hold an earnings conference call on Friday, May 16, 2025, at 7:30 AM U.S. Eastern Time (7:30 PM on the same day, Beijing/Hong Kong Time). Dial-in details for the earnings conference call are as follows:

International: +1-412-902-4272Mainland China: 4001-201203US: +1-888-346-8982Hong Kong: +852-301-84992Passcode: So-Young International Inc.

A telephone replay will be available two hours after the conclusion of the conference call through 23:59 U.S. Eastern Time, May 23, 2025. The dial-in details are:

International: +1-412-317-0088US: +1-877-344-7529Passcode: 5245284

Additionally, a live and archived webcast of this conference call will be available athttp://ir.soyoung.com.

About So-Young International Inc.

So-Young International Inc. (Nasdaq: SY) (“So-Young” or the “Company”) is the leading aesthetic treatment platform in China connecting consumers with online services and offline treatments. The Company provides access to aesthetic treatments through its online platform and branded aesthetic centers, offering curated treatment information, facilitating online reservations, delivering high-quality treatments, and developing, producing and distributing optoelectronic medical equipment and injectable products. With its strong brand recognition, digital reach, affordable treatments and efficient supply chain, So-Young is well-positioned to serve its audience over the long term and grow along the medical aesthetic value chain.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. Among other things, the Financial Guidance and quotations from management in this announcement, as well as So-Young's strategic and operational plans, contain forward-looking statements. So-Young may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about So-Young's beliefs and expectations, are forward-looking statements. Forward looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: So-Young's strategies; So-Young's future business development, financial condition and results of operations; So-Young's ability to retain and increase the number of users and medical service providers, and expand its service offerings; competition in the online medical aesthetic service industry; changes in So-Young's revenues, costs or expenditures; Chinese governmental policies and regulations relating to the online medical aesthetic service industry, general economic and business conditions globally and in China; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company's filings with the Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of the press release, and So-Young undertakes no duty to update such information, except as required under applicable law.

For more information, please contact:

So-Young

Investor Relations Ms.Mona Qiao Phone: +86-10-8790-2012 E-mail: ir@soyoung.com

Christensen

In China Ms.Dee Wang Phone: +86-10-5900-1548 E-mail: dee.wang@christensencomms.com

In US Ms.Linda Bergkamp Phone: +1-480-614-3004 Email: linda.bergkamp@christensencomms.com

SO-YOUNG INTERNATIONAL INC.UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS(Amounts in thousands, except for share and per share data) As of December31, March 31, March 31, 2024 2025 2025 RMB RMB US$AssetsCurrent assets:Cash and cash equivalents 587,749 444,730 61,285Restricted cash and term deposits 66,367 86,230 11,883Trade receivables 98,774 91,511 12,611Inventories 151,754 175,301 24,157Receivables from online payment platforms 24,255 27,733 3,822Amounts due from related parties 1,218 723 100Term deposits and short-term investments 599,041 575,234 79,269Prepayment and other current assets 195,202 215,628 29,714Total current assets 1,724,360 1,617,090 222,841Non-current assets:Long-term investments 280,281 277,443 38,233Intangible assets 126,615 127,976 17,636Goodwill 684 684 94Property and equipment, net 155,352 169,776 23,396Deferred tax assets 84,950 84,870 11,695Operating lease right-of-use assets 162,764 181,065 24,951Other non-current assets 200,152 185,606 25,577Total non-current assets 1,010,798 1,027,420 141,582Total assets 2,735,158 2,644,510 364,423LiabilitiesCurrent liabilities:Dividend payable – 19,036 2,623Short-term borrowings 69,771 59,720 8,230Taxes payable 61,862 53,292 7,344Contract liabilities 76,579 74,416 10,255Salary and welfare payables 111,396 55,453 7,642Amounts due to related parties 477 569 78Accrued expenses and other current 265,216 272,981 37,616liabilitiesOperating lease liabilities-current 44,905 51,876 7,149Total current liabilities 630,206 587,343 80,937Non-current liabilities:Operating lease liabilities-non current 125,200 135,662 18,695Deferred tax liabilities 19,758 19,095 2,631Other non-current liabilities 1,264 1,504 207Total non-current liabilities 146,222 156,261 21,533Total liabilities 776,428 743,604 102,470SO-YOUNG INTERNATIONAL INC.UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Continued)(Amounts in thousands, except for share and per share data)Shareholders' equity:Treasury stock (376,690) (382,718) (52,740)ClassA ordinary shares (US$0.0005 par value; 750,000,000 253 253 35shares authorized as of December 31, 2024 and March 31,2025; 77,897,969 and 65,659,510 shares issued andoutstanding as of December 31, 2024, 78,022,915 and65,092,948 shares issued and outstanding as of March 31,2025, respectively)ClassB ordinary shares (US$0.0005 par value; 20,000,000 37 37 5shares authorized as of December 31, 2024 and March 31,2025; 12,000,000 shares issued and outstanding as ofDecember 31, 2024 and March 31, 2025)Additional paid-in capital 3,069,799 3,052,436 420,637Statutory reserves 40,552 40,552 5,588Accumulated deficit (926,390) (959,528) (132,226)Accumulated other comprehensive income 31,560 30,279 4,173Total So-Young International Inc. shareholders' equity 1,839,121 1,781,311 245,472Non-controlling interests 119,609 119,595 16,481Total shareholders' equity 1,958,730 1,900,906 261,953Total liabilities and shareholders' equity 2,735,158 2,644,510 364,423SO-YOUNG INTERNATIONAL INC.UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(Amounts in thousands, except for share and per share data) For the Three Months Ended March 31, December 31, March 31, March 31, 2024 2024 2025 2025 RMB RMB RMB US$Revenues:Information, reservation services and others 216,641 201,512 142,853 19,686Aesthetic treatment services 15,171 81,267 98,827 13,619Sales of medical products and maintenance services 86,470 86,432 55,590 7,661Total revenues 318,282 369,211 297,270 40,966Cost of revenues:Cost of information, reservation services and others (61,827) (44,518) (40,726) (5,612)Cost of aesthetic treatment services (12,395) (65,208) (80,264) (11,061)Cost of medical products sold and maintenance services (43,093) (43,325) (30,425) (4,193)Total cost of revenues (117,315) (153,051) (151,415) (20,866)Gross profit 200,967 216,160 145,855 20,100Operating expenses:Sales and marketing expenses (113,256) (134,045) (103,417) (14,251)General and administrative expenses (84,953) (98,420) (53,743) (7,406)Research and development expenses (39,591) (42,753) (32,109) (4,425)Impairment of goodwill – (540,009) – -Total operating expenses (237,800) (815,227) (189,269) (26,082)Lossfrom operations (36,833) (599,067) (43,414) (5,982)Other income/(expenses):Investment income/(loss), net 2,099 7,623 (785) (108)Interest income, net 12,313 8,237 7,025 968Exchange gains/(losses) 394 (763) 25 3Impairment of long-term investment – (7,350) – -Share of losses of equity method investee (3,996) (3,413) (2,442) (337)Others, net 3,280 (11,103) 4,834 666Loss before tax (22,743) (605,836) (34,757) (4,790)Income tax benefits/(expenses) 2,557 (2,126) 1,605 221Net loss (20,186) (607,962) (33,152) (4,569)Net (income)/loss attributable to noncontrolling interests (1,054) 386 14 2Net loss attributable to So-Young International Inc. (21,240) (607,576) (33,138) (4,567)SO-YOUNG INTERNATIONAL INC.UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Continued)(Amounts in thousands, except for share and per share data) For the Three Months Ended March 31, December 31, March 31, March 31, 2024 2024 2025 2025 RMB RMB RMB US$Net loss per ordinary shareNet loss per ordinary share attributable to ordinary shareholder – basic (0.27) (7.70) (0.42) (0.06)Net loss per ordinary share attributable to ordinary shareholder – diluted (0.27) (7.70) (0.42) (0.06)Net loss per ADS attributable to ordinary shareholders – basic (13 ADS represents 10 Class (0.21) (5.92) (0.32) (0.04)A ordinary shares)Net loss per ADS attributable to ordinary shareholders – diluted (13 ADS represents 10 (0.21) (5.92) (0.32) (0.04)Class A ordinary shares)Weighted average number of ordinary shares used in computing earnings/(loss) per share, 79,551,454 78,905,617 78,562,865 78,562,865basic*Weighted average number of ordinary shares used in computing earnings/(loss) per share, 79,551,454 78,905,617 78,562,865 78,562,865diluted*Share-based compensation expenses included in:Cost of revenues 55 (34) (30) (4)Sales and marketing expenses (53) (239) (130) (18)General and administrative expenses (24,453) (1,731) (1,404) (193)Research and development expenses (843) (211) (93) (13)* Both Class A and Class B ordinary shares are included in the calculation of the weighted average number of ordinary shares outstanding, basic and diluted.SO-YOUNG INTERNATIONAL INC.Reconciliation of GAAP and Non-GAAP Results(Amounts in thousands, except for share and per share data) For the Three Months Ended March 31, December 31, March 31, March 31, 2024 2024 2025 2025 RMB RMB RMB US$GAAP loss from operations (36,833) (599,067) (43,414) (5,982)Add back: Share-based compensation expenses 25,294 2,215 1,657 228Add back: Impairment of goodwill – 540,009 – -Non-GAAP loss from operations (11,539) (56,843) (41,757) (5,754)GAAP net loss attributable to So-Young International Inc. (21,240) (607,576) (33,138) (4,567)Add back: Share-based compensation expenses 25,294 2,215 1,657 228Add back: Impairment of goodwill attributable to So-Young International Inc. – 540,009 – -Add back: Impairment of long-term investment attributable to So-Young International – 7,350 – -Inc.Add back: Allowance for credit loss from loans to investees attributable to So-Young – 13,843 – -International Inc.Reversal: Gain on disposal of long-term investment and fair value change of long- – (7,791) – -term investment attributable to So-Young International Inc.Reversal: Tax effects on non-GAAP adjustments (1) – (1,276) – -Non-GAAP net income/(loss) attributable to So-Young International Inc. 4,054 (53,226) (31,481) (4,339)(1)To adjust the income tax effects of non-GAAP adjustments, which is primarily related to allowance for credit loss from loans toinvestees, gain/(loss)on disposal of long-term investment and fair value change of long-term investment. Other non-GAAP adjustment items have no tax effect, because full valuation allowances were provided for related deferred tax assets as it is more-likely-than-not they will not be realized.

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