Beijing, China – So-Young International Inc., a cosmetic services social media platform, is making significant strides in its business strategy. The latest quarterly results showed a positive outcome for the company, with a 4% increase in its stock value. Despite this boost, shares remain below their debut price on the Nasdaq in 2019.

So-Young is adapting to the changing landscape in the cosmetic services industry, focusing more on high-end customers and moving away from smaller clinics. This shift has led to a return to profitability after losses in previous years.

The company faced challenges due to Covid-19 restrictions and regulatory crackdowns on advertising in the medical aesthetics industry, affecting the performance post-IPO.

To navigate these obstacles, So-Young is undergoing a strategic transformation, launching a new platform for high-end users called So-Young Prime. This initiative integrates various sources and includes plans to establish “light aesthetics” clinics in partnership with other operators.

Revenue for the fourth quarter increased by 20%, reaching 390.6 million yuan ($55 million). Net income, however, saw a significant decline. Despite this, the company’s non-GAAP net loss in 2022 turned into a profit in the following year.

Moreover, So-Young is expanding its partnership business, generating visits and revenue for partner clinics. A decline in gross margin was noted, attributed to lower margins for So-Young Prime and increased sales in medical products with lower margins than information services.

By diversifying its offerings and building its chain of clinics, So-Young aims to position itself as a direct provider of cosmetic products and services. The company’s evolution reflects the growing demand for light aesthetic treatments in China’s booming medical aesthetics industry.

Analysts view So-Young positively, with a majority rating the company as a “strong buy.” As the company continues to adapt to market changes, it stands poised for growth and success in the evolving landscape of the cosmetic services industry.