A：The main highlights of So Young's first quarter 2026 earnings conference call include the company's robust financial performance, with total revenue reaching 4.33 billion RMB and a significant increase of approximately 46% year over year. Notably, the revenue from the aesthetic center business saw a substantial growth of about 186% year over year, reaching 2.82 billion RMB. The company's strong performance is attributed to the robust growth of its chain business.

A：For So Young, the规模化运营能力和 standardized delivery体系 are crucial in providing a competitive edge and driving high-quality growth. These capabilities have become key factors in the company's strategy to maintain a leadership position in the increasingly competitive medical aesthetic industry.

A：So Young's flagship clinic, Faith Youth Clinic, has been leading the Chinese youthful medical美容 (Qian医美) market, with top rankings in terms of门店数量, service volume, and user base. The clinic has demonstrated strong operational efficiency and profitability, continuing to expand its market position and customer base.

A：Key operational achievements of Faith Youth Clinic include its expansion into 17 cities with a total of 59 clinics, a net addition of 10 clinics since the end of 2025. In the service volume aspect, the clinic reported a significant increase of over 172% in chain service核销人次 to 148,000, with the number of treatment points exceeding 325,000, up 164%. The active user base has risen to more than 210,000, with the proportion of level three and above core members reaching over 63,000, showcasing a high quarterly repurchase rate and significant user lifetime value.

A：So Young is implementing several strategies to enhance brand awareness and user conversion, including deepening platform collaborations, efficiently generating content, and increasing new customer acquisition. The company is also expanding its partnerships with renowned intellectual properties (IPs) for campaigns, such as the national-scale Disney联名快闪活动 for the奇迹胶原系列产品. Prominent celebrities like范冰冰 and 都为品牌进行产品代言，以 attract大量潜在用户 and improve brand visibility.

A：To optimize the company's store model and improve financial performance, So Young is continuously refining its approach to improve single店模型, operational efficiency, and profitability. This includes a focus on new店爬坡周期的缩短、产品和获客策略的优化, and achieving profitability for 41 stores in the first quarter, alongside positive operating cash flow for 48 stores. The company has also increased its毛利率 to 27%, evidencing a strengthening of overall operating efficiency.

A：The company's plans for 2026 entail a continued focus on major一线城市 to increase the number of stores and enhance service accessibility. With the gradual release of scale efficiency and improved new store performance, combined with ongoing operational optimization, the company expects to further increase single店收入规模, leading to a significant improvement in the financial model of the chain.

A：So Young is making substantial investments in its professional medical delivery capabilities and reputation. It is focusing on bolstering the quality of medical delivery through initiatives that enhance the physician team, diagnosis and treatment quality, and service experience. As of March 2026, the company's full-time doctor team had expanded to approximately 230 members, a growth of 9% from the end of 2025, maintaining its industry leadership position.

A：In the first quarter, we officially opened the Faith Tianjin Clinic Medical Training Center and the National Command and Control Center Research and Development Center, which focus on medical research and development and training. Among them, the medical training center is equipped with a variety of laboratories, including photoelectric laboratories, economic laboratories, in vitro laboratories and testing laboratories, which can systematically evaluate all products and equipment on the market to ensure that we can test product safety, effectiveness and rationality based on clinical effects. At the same time, Xinyang medical research and development team on this basis to develop products and form a standardized SOP. The medical training center has also been put into use. All doctors who join the faith spiritual clinic need to receive closed and systematic technical improvement training here, and pass the examination and certification before they can officially take up their posts.

A：The command and control center is the brain of chain operation, in which the safety compliance office realizes the safety compliance remote monitoring, offline alarm and emergency linkage of Xinyang headquarters to the first-line stores through closed-loop management, supports the headquarters to intervene and respond in real time, and ensures medical safety. In addition, the User Experience Office is responsible for user satisfaction design, service design and customer complaint collection to ensure that the headquarters can quickly understand the user's suggestions and opinions and deal with them in a timely manner, thus effectively improving the overall medical service process. The Operations Office is responsible for tracking the operating data of stores nationwide to ensure the good operation of all stores.

A：We are committed to building a diversified supply chain system, continuously improving the supply chain layout, and achieving a win-win situation through multi-dimensional and in-depth cooperation with upstream enterprises to help the healthy and prosperous development of the light medical and beauty industry. In April, we reached a strategic cooperation with Jinguo Biology. Through joint development and two-way empowerment, we will give full play to our respective advantages and achieve resource complementarity and value creation. Based on this cooperation, we have obtained the exclusive right to supply the cool pack, a new product of Jingbo Biology, and launched a miracle collagen series to provide users with a full-scene anti-aging solution for head and face recombinant collagen. The new collagen product released this time is the 20th green standard product of faith. With the introduction of this series, the green standard product system has been further improved. At the same time, we have continuously optimized the products in combination with user feedback, and improved the supply chain efficiency through direct upstream connection and reverse customization to meet the needs of users. In addition, we also timely launched to solve the problem of spring skin sensitive products, and released a new upgrade of cherry blossom water light 2.0 and other products, enrich the product supply. The deep strategic synergy at the supply chain end and the accelerated landing of its own products continued to release growth momentum, with the contribution of large single-item revenue further increasing to 41% in the first quarter.

A：As the medical and beauty industry enters a new stage of high-quality and inclusive development, enterprises with standardized medical delivery capabilities, large-scale operational efficiency and strong supply chain advantages will occupy a favorable position in the industry, and the head effect will be more significant. With the ability to build a complete industrial chain for many years, we have established a unique competitive advantage. In the future, we will firmly promote the thousand store chain strategy, while maintaining a reasonable pace of expansion, continue to optimize operational and financial indicators, create long-term value for users and shareholders, and inject momentum into the sustainable development of the industry.

A：The revenue from aesthetic treatment services increased to RMB 282.4 million, up 185.8 percent year over year and at the high end of guidance. This segment accounted for over 65% of the total revenue during the quarter, with a gross margin expansion year over year and quarter over quarter. The core growth driver gained traction in both revenue and profitability as the company executed its strategy focused on scale and efficiency.

A：The company's strategy of focusing on scale and efficiency has led to significant revenue growth. As of March 31st, they operated 54 solo locations across 16 major cities, adding 5 centers during the quarter. The revenue growth is attributed to the performance of these centers, with face centers contributing to substantial revenue, and the average revenue percentage for ramp-up and growth centers showing significant year-over-year and quarter-over-quarter improvements.

A：Profitability improved as forty-one centers were profitable and forty-eight centers generated positive operating cash flow during the quarter. This represents a net addition of nine centers from the last quarter, validating the company's efforts in operational efficiency and revenue growth.

A：Revenue in the information and reservation services segment was down 30% year over year at RMB 8.3 million, primarily due to an increase in the number of medical services providers subscribing to the company's information services. Sales of medical products and maintenance service revenues increased 2.8% year over year to RMB 57.1 million, driven by an increase in order volume for pharmaceutical products. The decrease in other service revenues to RMB 12.9 million, down 39.3% year over year, was attributed to lower insurance broker revenue.

A：Financially, net revenue was RMB 251 million, up 65.8% year over year. Cost of aesthetic treatment service increased 156.4% year over year to RMB 205.8 million, while the cost of information and reservation service was RMB 4.6 million, up 72.5% year over year. Costs were managed effectively, with total operating expenses growing at a slower pace than total revenue, and sales and marketing expenses increasing 33.7% year over year due to higher branding and user acquisition spending.

A：The company continues to be confident in the branded research center business, projecting executive treatment service revenues between RMB 307 million and RMB 317 million, indicating year-over-year growth of 112.6% to 119.5%. For the full year 2026, the company is advancing key initiatives in supply chain optimization, medical delivery systems, and operational efficiency to further strengthen their leadership position and drive sustainable growth.