BRIEF: So-Young’s revenue rises 25% as self-operated clinics gain traction

Cosmetic surgery specialist So-Young International Inc. (SY.US) on Wednesday reported its revenue rose 25% year-on-year to 461 million yuan ($67 million) in the fourth quarter of last year, as the number of patient visits to its chain of self-branded clinics nearly tripled to 125,000 from 45,000 a year earlier.

The company said it had 49 branded clinics at the end of last year, including 25 that operated profitably in the fourth quarter. Revenue from its aesthetic treatment services roughly tripled year-on-year in the fourth quarter to 248 million yuan, while revenue from its information and reservation services business fell 27% to 126 million yuan.

So-Young previously made most of its money by collecting fees for services it provided to independent cosmetic surgery clinics, including customer referrals. But more recently it has shifted to a business model of operating its own clinics, which gives it better quality control.

So-Young reported its net loss for the fourth quarter narrowed to 109 million yuan from 608 million yuan a year earlier. But its adjusted net loss, which excludes certain non-cash items, rose to 93.4 million yuan for the quarter from 53.2 million yuan a year earlier.

So-Young shares rose 9.6% on Wednesday after the results were announced. The stock has more than tripled over the last 52 weeks.

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