So-Young International Inc. (NASDAQ:SY) Q4 2023 Earnings Call Transcript

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Hui Zhao: Okay, I will translate myself. The decrease in gross margin was mainly due to the changes in revenue mix. In Q4 2023, our sales of information and reservation services maintained high margins compared to those for sales of medical products and maintenance which was lower, while revenue from new business such as So-Young Prime have already demonstrated their potential. It is still in the early stages of development with a lower gross margin. As we strategically expand our presence along the medical aesthetic value chain, each of those new businesses are expected to increasingly contribute to our bottom line as the synergies created by our presence, both upstream and downstream, strengthened the profitability of our business, overall is expected to improve in the mid to long term.

Operator: We are now approaching the end of the conference call. Thank you for your participation in today’s conference. You may now disconnect. Have a good day.

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