Operator
Ladies and gentlemen, thank you for standing by for Soyang's fourth quarter and full year 2025 earnings conference call. At this time, all participants are in the listen-only mode. After management gives their prepared remarks, there will be a question and answer session. As a reminder, today's conference call is being recorded. I will now like to turn the meeting over to your host for today's call, Ms. Mona Chau. Please proceed, Mona.
Thank you, operator, and thank you, everyone, for joining Soyang's fourth quarter and four-year 2025 earnings conference call. Joining me today on the call is Mr. Jinsing, our founder, chairman, and CEO, and Ms. Zhang Shah, VP of Finance. Before we begin, please refer to today's paper statement in our earnings release, which applies to this call as we will be making for the low-case statement. Please also note that we will discuss non-GAAP measures today, which are more thoroughly explained and may consult the most comparable measures reported under GAAP in our early studies on our investor relations website and finance with SEC.
Please also note, often there is mention in this call are in the meeting, and as otherwise stated, at this time, I'd like to turn the call over to Mr. Yingxin. 大家好 欢迎参加今天的财报电话会议 2025年 中国医美行业迎来节奏性调整 上游供给持续扩容 消费者日趋底性 价值回归正在成为全行业的共同问题 与坚持规模化标准化路线的机构而言 这恰恰是积累长期优势的窗口期 第四季度,新养持续加大投入,沿着三个方向坚定推进,继续实现连手业务规模突破与运营效率提升,持续深化医疗交互能力,构建市院驱动的长期护城河,持续强化供应链壁垒,提升品牌影响力,把握市场机遇。 We are very happy to see that these trade-off choices have been achieved. In the fourth季度, the company has earned 4.6 million dollars. The total增长 is 25%. The total cost of the company's income rate is over 2.48 million dollars. The total增长 is 205%.
In 2025, China's medical aesthetic industry went through structural adjustments as upstream capacity expanded and consumers became more value-driven. Returns to value have become the common thing. For institutions pursuing skilled and equitable models, this offers a critical window to build long-term edge. In Q4, we continued to improve our investment and make progress in three directions. First, delivering still breakthroughs and operational improvements in our aesthetic center business. Second, reinforcing microservice delivery capabilities to build a long-term trust-driven mode. And third, building on supply chain barriers to enhance planning loans and safe opportunities. We are pleased to see these choices are reflected in our financial results. The total revenue was 461 million people, up around 25% year-over-year, taking a record high for quarterly revenue. Revenue from our aesthetic center business reached 248 million, up over 205% year-over-year. and about 10% above the high-end of guidance. Our aesthetic center business has become our largest revenue contributing segment and skills engine, with Soyang Clinic becoming the largest life-metal aesthetic chain in China by a number of centers. Now, let me walk into our progress in Q4 and our 2026 deployment, focusing on our aesthetic center business. Our aesthetic center business has recently achieved two milestones. The first is our center foot point. By year end, 2025, we have opened 49 life medical aesthetic centers. We are currently third nationwide among all tiers by center count. The second is the treatment volume. In Q4, verified treatment visits exceeded 125,000, up 178% year a year. Verified aesthetic treatment performed exceeded 289,400, up 168% year-of-year. As of December 1, our total active users surpassed 170,000. The growth in both treatment volume and user days validates the market demand and ongoing recommendations from consumers. At the scale, center-level operational efficiency continues to improve. In Q4, 25 centers achieved pro-facility, and 39 centers generated positive operating cash flow. In 2026, we will accelerate the expansion, opening at least 35 new centers. We will decompensate in core cities, including Beijing, Shanghai, Guangzhou, and Shenzhen, while also expanding our presence in second-year cities. As our operations mature, we are confident in further improving the presence of her facility while maintaining accession and in driving the overall capacity at that early date. Second, we are enhancing our medical service delivery capability to build a long-term trust-driven mode. In Q4, we enhanced our service across three dimensions. The vision team complies framework and data security. This improvement reinforced the user trust.
Thank you for joining us. 该计划将为医生提供一流的实操锻炼机会,系统化的技能培训与清晰的职业发展领域,助力医生快速成长到行业头部水准,办学医生团队专业能力的提升与用户口碑的沉淀,医生单人产级将稳度增长,进而带动人力水平持续优化。 。
By year-end 2025, our full-time physician team expanded to 211, up 41% from the end of Q3, directly first nationwide among our peers by physician count. In terms of quality, all our physicians have a public hospital background and passed our graduates' internal certification before practicing. Over half of them hold attending physician qualifications or higher. On average, our team processes over six years' clinical experience, and those with a year or more until young have delivered over 6,200 treatment per physician, reflecting our solid clinical capabilities. In 2026, WIDO launched a new physician initiative to accelerate recruitment and build talent pipeline. The program will provide industry-leading hands-on practice, systematic training, and clear, clear paths, enabling physicians to quickly achieve top-tier performance. As our physician team's expertise depends on user word-of-mouth growth, we expect her physician productivity to grow, driving continued improvement in profitability. On compliance, we established a six-pillar compliance framework as a regular inspection mechanism. With digital software, we delivered full-process traceability of medical services. On data security, so young exists.
Third, continue to build a business in a free product and a free product in a free product. So, let's talk to our team. Now, let's talk to our VP, Zhang Shah, to introduce our team.
For additional details on our fourth quarter and four-year performance to the earnings release we issued earlier today, we will now walk you through performance by business segments, our branded aesthetic center business.
Operator
question and answer session. To ask a question, you may press star then one on your touchstone phone. If you're using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star then two. At this time, we will pause momentarily to assemble our roster. If you would like to state your question in Chinese, but then please also So you said your question in English. Our first question comes from Jin Peng Hee with City Securities. Please go ahead.
Let me briefly translate myself. Thank you for taking my question. I'm Jim from CTXC Critics. So firstly, congratulations on the accelerating growth in Q4. And we are glad to see that there is a proving gross margins in the aesthetic center business and service business. So I have a question regarding the gross margin prospects. So could you share more about the cost margin plans and the source of further margin expansion? Thank you.
Thank you for your question. They believe that three core factors shift margin performance. the pace of central openings, consumable costs, and seasonal promotions. Based on these factors, we have a plan to enhance those margins. First, we will continue optimizing the pace of central openings and the ramp-up efficiency of new centers. Upfront investment into new centers can create short-term margin pressure, and license approval timing in our industry is often unpredictable. Going forward, we aim to adopt a more even cadence throughout the year. Combined with our integrated operating system, this accelerates each center's path to efficient operations and shortens the WMF cycle. For 2026, new opens will represent a smaller share of total centers compared to last year. This will reduce margin dilution of concentrated new center investment.
Meanwhile, the proportion and profit contributions from mature-free centers arise, driving the overall growth margin levels. 持续优化耗材成本结构 目前我们以西红、康泽、四环、索塔等上游企业建立深度合作,保障供应的同时实现了采购成本的持续优化。 未来我们将持续放大中端规模优势 强化上游溢价能力 将更多优质上游厂商转化为长期合作伙伴 同时我们将持续推进大单品策略 四季度四大单品的收入占比超37% 随着核心单品规模持续放大 采购成本优势将进一步凸显 第三 经济化季度性 季节性 促销运营 季节性大促是我们扩大用户规模 实现新客转化 为门店沉淀长期用户资产的重要途径 未来我们将持续优化 促销品项结构 将促销与会员体系深度绑定 重点撬动核心会员复购与消费升级 提升新客流存与复购频次 将短期流量转化为用户全生命周期价值,带动毛利长期稳步改善。 power with our partners and convert more high quality upstream manufacturers into long-term
partners at the same time we will continue advancing our flow faster strategy in the fourth quarter our four major products accounted for over 37 percent of revenue as i will call offerings through the procurement cost prices will become more pronounced but we will refine our seasonal promotion. Digital campaigns remain a critical channel for user-based expansion, customer conversion, and building long-term users' assets. Going forward, we will optimize our product mix and integrate campaigns more deeply with the membership system, targeting repeat purchases among core members. We aim to transform short-term traffic into customers' LTV. This in return, we also add growth margin.
Operator
Your next question comes from John Wong with GF Securities. Please go ahead.
This is John Wong from Grandfather Securities. Thank you very much to the management of giving me this opportunity to ask a question and congratulations to the company on this outstanding performance. My question is about the development of Soyang Clinic in second-tier cities. And I would like to know whether the current operating performance of these centers has met management's expectations. Could management also share some operational updates on the several representative centers?
Operator
Sorry to interrupt, ladies and gentlemen. The line for the management has been disconnected. Please stay connected while we reconnect the line for the management. Thank you for patiently holding, ladies and gentlemen. The line for the management has been reconnected. Yes, please go ahead.
From the two-line In the tree perspective, while China's medical inspecting markets in second-tier cities have reached relative maturity, they lack the hard-assisted cities in medical service delivery capabilities and operational standards. We ensure that our centers in second-tier cities deliver the same level of medical service quality as those in first-tier cities. Based on our operational track record, centers in second-tier cities are also growing well. Both the traffic and per-customer treatments are rising, and the value per center is close to first-tier levels. As of December, most work centers in second-tier cities, such as Wuhan Tiandi Center and Changsha Building Center, generated an average sales per square meter of 7,000 per mile. Among new openings in second-tier cities, Nionbo Raffle Center and Suzhou Suyue Plaza sold out. These centers have maintained robust revenue growth with industry-leading taggers. For example, Google Studio Plaza broke $1 million in monthly revenue with three months since opening, proving that our model works in second-tier cities. In terms of profitability, mature centers in second-tier cities enjoy slightly higher margins due to lower staff payroll and rental expenses compared to the first-tier cities.
We believe that the fundamental advantage of a chain model lies in reduced transaction costs and enhanced wide trust sales and access quality. As present, most players in second-tier cities are single-center operators, without meaningful density based on how we involved in four-tier cities and still life trust growth customers will tend to produce multiple treatments per visit looking ahead maybe the process improvement resource synergy and traffic management will drive continued gains in our second year centers and economics of scale will take effect across our network. We are confident that this will lead to stronger profitability and market competitiveness in second-year cities.
Speaker 0
Hi, Maggie. Can you hear?
Operator
Maggie, your line is unmuted. Please proceed with your question.
Let me translate my question. This is Maggie Huang from CICC. Congratulations for our excellent performance, and we would like to know whether the competitive advantages in customer acquisition costs has been maintained amid its continued scaled expansion, and could management also share the customer acquisition strategy for 2026?
Thank you. 而且还在持续优化中 本季度呢 我们新开设了角度门店 抓住双11 双12等大处契机 新用户数量再创季度新高 全年平均来看 我们的货客成本 仍然控制在收入的10%以下 这在行业内是非常有竞争力的水平 我们之所以能保持这一优势 主要得益于我们对老代新模式的持续优化 未来我们将进一步强化老代新的劣等效应 通过会员体系和差异化权益设计 鼓励现有高价值用户带来更多新客 这不仅能降低货客成本 还能提升新客的质量和流行率 其次我们将持续优化公司与货客渠道结构 通过经济化运营提升用户生命周期价值 同时,我们将持续布局与全球顶级IP的联名 最近,我们落地了与小王子、迪士尼两大知名IP的联名项目 与创新的品牌趋势,触达更广泛的消费群体 与消费者建立深层情感共鸣 进一步放大品牌效应 在此基础上,随着我们新闻店逐渐在全国落子 用户规模持续扩大 our product will continue to improve the market. This will continue to decrease our market.
Our edge in customer acquisition costs has been preserved and further strengthened. During the quarter, we opened a significant number of new centers and faced the opportunities brought by major shopping campaigns, including Double 11 and Double 12. bring a quarterly record for new customers. For the full year, our average tax remains below 10% of revenue, a highly competitive benchmark in this industry. We sustain this advantage primarily through our customer referral model. Through our membership system and differentiated benefits, we will incentivize existing high-value users to reform new customers. This will not only lower tax, but also improve the quality and retention rate of new users. Second, we will continue to optimize the mix of our public and private domain custom acquisition channels and enhance their LTVs through refined operations. Meanwhile, we will continue to roll out co-branding initiatives with the world's top IP. Recently, we launched co-writing programs with two renowned IPs, The Little Prince and Disney, through black storytelling with our black opportunities.
Operator
Your next question comes from the line of Daisy Zhang with Haibong International.
Please go ahead. 谢谢管理成绩是我的提问 想请教一下我们用户增长和运营的情况 尤其是核心用户 接下来公司的话有什么具体的措施 是可以提高核心用户的LTV的 I'll trust it myself Thank you management for taking my question My question is about the user growth and membership operations Especially for core members Could management share the specific measures you will take to improve the LTV of call members going forward. Thank you.
Our core members, level 3 and higher members, continue to show solid growth momentum. Our user service showed that core members still have significant room for growth in their annual medical and studies budget, laying a foundation for us to build user LTV.
This quarter, revenue contribution from call members and their quarterly transfer rate both exceeded 80%, with new call members surpassing 14,000. 同时,我们会持续优化会员体系,针对不同消费阶段的核心用户提供差异化的权益和服务触达,通过精准的用户分层和个性化服务,帮助核心用户持续感受到品牌价值得到正向反馈,从而提升复购连性和消费频次,从而带动单店盈利能力的改善,
The consumer performances are shifting towards desequency and clinical capabilities. Against this background, we will focus on first, expanding our product portfolio. We will introduce more comprehensive product offerings, including standardized size-back treatments and needs to high-end services. We expect this to elevate user value. Second, we will further optimize our membership system by offering differentiated benefits and service touch points. So as to realize tiered user segmentation and provide corresponding services, this will strengthen co-members' perception of our black value, building a positive feedback loop, which will drive their loyalty. These measures will lead to improved percentile profitability and provide strong momentum for our long-term growth. Thank you.
Operator
Thank you. This concludes our question and answer session, and this concludes our conference for today. Thank you for attending today's presentation. You may now disconnect.
