Core Viewpoint - LeMo Technology is launching an IPO with a global offering of 5.5556 million shares priced between HKD 27 and HKD 40, indicating strong market interest with an oversubscription of approximately 5912.8 times [1] Group 1: Company Overview - LeMo Technology provides machine massage services through its network of service points located in high-traffic public areas across China [1] - The company has established over 48,000 service points and deployed more than 533,000 massage machines, covering all 31 provincial-level administrative regions and 337 cities in China by November 2025 [2] - The company has achieved a compound annual growth rate (CAGR) of approximately 45.49% in expanding its service points from 21,727 in December 2022 to 45,993 by December 2024 [2] Group 2: Market Position - According to Frost & Sullivan, LeMo Technology ranks first among all machine massage service providers in China by transaction volume, with market shares of 33.9%, 37.3%, and 42.9% for the years 2022, 2023, and 2024 respectively [1] - By 2024, the company is expected to hold over 50% market share in terms of revenue within the Chinese machine massage market [1] Group 3: Financial Performance - The company reported revenues of approximately RMB 330 million, RMB 587 million, RMB 798 million, and RMB 631 million for the fiscal years 2022, 2023, 2024, and the eight months ending August 31, 2025, respectively [2] - The net profit and total comprehensive income for the same periods were RMB 6.481 million, RMB 87.34 million, RMB 85.807 million, and RMB 88.55 million [2]

Core Viewpoint - LeMo Technology is launching an IPO with a global offering of 5.5556 million shares priced between HKD 27 and HKD 40, indicating strong market interest with an oversubscription of approximately 5912.8 times [1] Group 1: Company Overview - LeMo Technology provides machine massage services through its network of service points located in high-traffic public areas across China [1] - The company has established over 48,000 service points and deployed more than 533,000 massage machines, covering all 31 provincial-level administrative regions and 337 cities in China by November 2025 [2] - The company has a strong market position, ranking first among machine massage service providers in China by transaction volume, with market shares of 33.9%, 37.3%, and 42.9% for the years 2022, 2023, and 2024 respectively [1][2] Group 2: Financial Performance - LeMo Technology's revenue for the fiscal years 2022, 2023, 2024, and the eight months ending August 31, 2025, were approximately RMB 330 million, RMB 587 million, RMB 798 million, and RMB 631 million respectively [2] - The company's net profit and total comprehensive income for the same periods were RMB 6.481 million, RMB 87.34 million, RMB 85.807 million, and RMB 88.55 million respectively [2] Group 3: Market Expansion - The number of service points increased from 21,727 as of December 31, 2022, to 45,993 by December 31, 2024, reflecting a compound annual growth rate (CAGR) of approximately 45.49% [2] - By November 15, 2025, the company had identified over 174 million consumers and registered more than 40 million members [2]

Core Insights - LeMo Technology (02539) is conducting an IPO from November 25 to 28, aiming to issue 5.5556 million shares at a price range of HKD 27 to HKD 40, with a significant oversubscription of approximately 5912.8 times as of November 28 [1][2] Company Overview - LeMo Technology launched the "LeMo Bar" brand in 2016, focusing on providing machine massage services in commercial complexes, cinemas, and transportation hubs across China [2] - As of November 15, 2025, the company has established over 48,000 service points and deployed more than 533,000 massage machines, covering all 31 provincial-level administrative regions and 337 cities in China [2] Market Position - According to Frost & Sullivan, LeMo Technology ranks first among all machine massage service providers in China by transaction volume, with market shares of 33.9%, 37.3%, and 42.9% for the years 2022, 2023, and 2024 respectively [1] - By 2024, the company is expected to hold over 50% market share in terms of revenue within the Chinese machine massage market [1] Financial Performance - The company reported revenues of approximately RMB 330 million, RMB 587 million, RMB 798 million, and RMB 631 million for the fiscal years 2022, 2023, 2024, and the eight months ending August 31, 2025, respectively [2] - Net profit and total comprehensive income for the same periods were RMB 6.481 million, RMB 87.34 million, RMB 85.807 million, and RMB 88.55 million [2] Growth Metrics - The number of service points expanded from 21,727 as of December 31, 2022, to 45,993 by December 31, 2024, reflecting a compound annual growth rate (CAGR) of approximately 45.49% [2] - The company has a strong consumer base, with over 174 million identifiable service consumers and more than 40 million registered members as of November 15, 2025 [2]

Core Viewpoint - LeMo Technology, known for its shared electric massage chairs, is set to go public on the Hong Kong Stock Exchange, aiming to raise approximately HKD 222 million through the issuance of 5.56 million shares at HKD 40 each, with the listing expected on December 3 [1] Company Overview - LeMo Technology is recognized as the leading provider in the machine massage service market in China, holding a market share of 33.9%, 37.3%, and 42.9% from 2022 to 2024 based on transaction volume, and over 50% based on revenue [1] - The company operates under the brand "LeMo Bar," providing services in various public locations such as shopping malls, cinemas, high-speed rail stations, and airports [1] Growth and Expansion - From 2022 to 2024, LeMo Technology is in a rapid growth phase, expanding its service points from 21,727 at the end of 2022 to 45,993 by the end of 2024, with over 53,300 massage machines deployed across 337 cities [2] - Revenue projections for the company are expected to grow from CNY 330 million in 2022 to CNY 798 million in 2024, representing an increase of approximately 150% over three years [2] Financial Performance - In the first eight months of 2023, LeMo Technology reported revenue of CNY 631 million, a year-on-year increase of 13.8% from CNY 554 million in the same period last year, indicating a slowdown compared to previous growth rates [2][3] - Profit figures show a significant increase from CNY 6.48 million in 2022 to CNY 87.34 million in 2023, but a slight decline is projected for 2024, with profits expected to decrease by 1.76% to CNY 85.81 million [3] Profitability and Margins - The gross profit margin for machine massage services was 24.66% in 2022 and increased to 41.47% in 2023, but is projected to decline to 36.16% in 2024, reflecting a drop of over 5 percentage points [3] - Despite a slight recovery in gross margin to 36.61% in the first eight months of 2023, it remains below the 41.32% recorded in the same period last year, indicating challenges in maintaining profitability [3] Market Challenges and Future Outlook - LeMo Technology acknowledges challenges in expanding its market share and penetration, including increased service point usage fees, rising equipment costs, and higher operational expenses associated with a direct sales model [4] - The overall market for machine massage services in China is projected to reach CNY 2.7 billion by the end of 2024, with expectations of growth to CNY 5.6 billion by 2029, suggesting that even as a market leader, LeMo Technology may face limitations in scaling [4] - The company plans to accelerate its overseas market expansion by increasing the number of massage machines sold to international partners, but faces challenges such as differing consumer preferences, higher labor costs, and difficulties in securing ideal service locations [4]

Core Viewpoint - LeMo Technology is preparing for an IPO despite slowing revenue growth and a projected decline in net profit for 2024, raising concerns about its business model and market positioning [1][2]. Financial Performance - Revenue from 2022 to 2024 was 330 million, 587 million, and 798 million CNY, with a significant drop in year-on-year growth from 77.75% to 35.98% [2]. - In the first eight months of 2025, revenue was 631 million CNY, showing a further slowdown to 13.8% year-on-year growth [2]. - Net profit for the same period was 6.481 million, 87.34 million, and 85.81 million CNY, with a negative growth of 1.76% in 2024 and a decline of 5.68% in the first eight months of 2025, totaling 88.55 million CNY [2]. Business Model - The company operates primarily through direct sales and partner models, with 71.19% of service points using the direct model, contributing 83.49% of revenue but maintaining a low gross margin of 30.38% [3]. - The partner model, which has a higher gross margin of over 70%, has seen a decline in revenue contribution from 21.49% in 2022 to 13.92% in 2025 [3]. Market Expansion and Challenges - The number of massage devices increased from 167,100 in 2022 to 536,400 by the first eight months of 2025, with over 80% of devices placed in cinemas [5]. - Despite the significant investment in cinema locations, revenue from this segment only accounted for 26.28% of total income, indicating a low return on investment [5]. - Daily transaction volume per device in cinemas has decreased from 0.17 to 0.11, highlighting inefficiencies in the business model [5]. Industry Context - The overall market for machine massage services in China is limited, with a projected size of only 2.7 billion CNY in 2024, representing about 0.5% of the total massage market [7]. - The demand for machine massage services is characterized as non-essential, making it difficult to achieve consistent growth [7]. - Competition from traditional massage services, which offer more personalized experiences, poses additional challenges for the company [8]. Strategic Direction - The company plans to raise approximately 147 million HKD through its IPO, with 60% allocated to expanding service network coverage [9]. - Despite the challenges, the company continues to pursue aggressive expansion, raising questions about the sustainability of its growth strategy in a market with evident limitations [9].

Core Viewpoint - LeMo Technology is preparing for an IPO despite facing declining revenue growth and increasing net profit pressure, with a significant reliance on its direct sales model and a shrinking partner model [1][2][3] Financial Performance - Revenue from 2022 to 2024 was 330 million, 587 million, and 798 million CNY, with a decline in year-on-year growth from 77.75% to 35.98% [2] - In the first eight months of 2025, revenue was 631 million CNY, showing a further slowdown to 13.8% year-on-year growth [2] - Net profit for the same period was 6.481 million, 87.34 million, and 85.81 million CNY, with a negative growth of 1.76% in 2024 and a decline of 5.68% in the first eight months of 2025, totaling 88.55 million CNY [2][3] Business Model - The company operates primarily through direct sales (71.19% of service points) which contributes 83.49% of revenue but has a low gross margin of 30.38% [3] - The partner model, which has a higher gross margin above 70%, has seen a continuous decline in revenue contribution from 21.49% in 2022 to 13.92% in 2025 [3] Market Expansion and Challenges - The number of massage devices increased from 167,100 in 2022 to 536,400 by the first eight months of 2025, with over 80% deployed in cinemas [5] - Despite this expansion, cinema revenue contribution only rose from 23.55% to 26.28%, indicating a low return on investment [5][6] - Daily transaction volume per device in cinemas has decreased from 0.17 to 0.11, highlighting inefficiencies in the business model [5][6] Industry Context - The overall market for machine massage services in China is limited, projected at only 2.7 billion CNY in 2024, which is a small fraction of the total massage market [7] - The non-essential nature of machine massage services leads to challenges in consumer demand, as they are often viewed as secondary options in busy environments [7][8] - Competition from traditional massage services, which offer more personalized experiences, further pressures the market for shared massage chairs [8] Future Outlook - The company plans to raise approximately 147 million HKD through its IPO, with 60% allocated to expanding service network coverage [9] - The significant increase in device numbers has not translated into proportional revenue growth, raising concerns about the sustainability of its expansion strategy [9]

Core Viewpoint - LeMo Technology is preparing for an IPO despite slowing revenue growth and a projected decline in net profit for 2024, raising concerns about its business model and market positioning [1][4][12]. Financial Performance - Revenue increased from 330 million yuan in 2022 to 798 million yuan in 2024, but the year-on-year growth rate dropped from 77.75% to 35.98% [4]. - In the first eight months of 2025, revenue was 631 million yuan, with a further slowdown in growth to 13.8% [4]. - Net profit decreased from 6.48 million yuan in 2022 to a negative growth of 1.76% in 2024, with a 5.68% decline recorded in the first eight months of 2025 [4][5]. Business Model - The company operates primarily through direct sales (71.19% of service points) which contributes 83.49% of revenue but has a low gross margin of 30.38% due to high operational costs [5]. - The partner model, which has a gross margin above 70%, has seen a decline in both revenue contribution and the number of city partners, dropping from 68 to 41 [5]. Market Expansion and Challenges - LeMo Technology's equipment count surged from 167,100 in 2022 to 536,400 by the first eight months of 2025, with over 80% of devices placed in cinemas [7]. - Despite this expansion, cinema revenue only accounted for 26.28% of total income, indicating a low return on investment [7][8]. - Daily transaction volume per device in cinemas has decreased, highlighting inefficiencies in the business model [7][8]. Industry Context - The overall market for machine massage services in China is limited, projected at only 2.7 billion yuan in 2024, which is a small fraction of the total massage market [10]. - The non-essential nature of machine massage services leads to challenges in consumer demand, as these services are often secondary to primary activities like shopping or socializing [10][11]. - Competition from traditional massage services, which offer more personalized experiences, further pressures the market for shared massage chairs [11]. Future Outlook - The company plans to raise approximately 147 million HKD through its IPO, with 60% allocated to expanding service network coverage [12]. - The effectiveness of this expansion strategy remains uncertain, especially given the current financial pressures and market conditions [12].

Core Viewpoint - LeMo Technology, a leader in the machine massage industry, is in the final stages of its IPO process in Hong Kong, having passed the listing hearing and initiated its global offering with a share price range of HKD 27-40 [1][2]. Market Position - LeMo Technology ranks first in the Chinese machine massage service market for three consecutive years from 2022 to 2024, with a market share exceeding 50% based on revenue [1][3]. - In 2024, LeMo is projected to achieve a transaction volume of RMB 12 billion, capturing 42.9% of the market, significantly ahead of its competitors [3][5]. Financial Performance - Revenue for LeMo Technology from 2022 to 2024 is forecasted to grow from RMB 330 million to RMB 798 million, while adjusted net profit is expected to rise from RMB 8.53 million to RMB 102 million, with a modest growth rate of 7.85% in 2024 [1][2]. - In the first eight months of 2025, revenue reached RMB 630 million, a year-on-year increase of 13.72%, but adjusted net profit only grew by 0.92% to RMB 99.19 million, indicating a slowdown in profit growth [2][10]. Business Model and Expansion - LeMo employs a "direct sales + city partner" business model, allowing for effective nationwide coverage while minimizing capital investment [5][6]. - As of November 25, 2025, LeMo has established over 48,000 service points and deployed more than 533,000 massage machines across 31 provinces and 337 cities in China [5][6]. Challenges and Strategic Focus - Despite leading market share, LeMo faces challenges with profit growth due to rising operational costs and declining gross margins, which fell to 36.07% in 2024 [9][11]. - The company plans to use funds from its IPO to enhance penetration in established markets and expand into new consumer scenarios, while also considering international markets [13].

Core Viewpoint - Lemo Technology is in the final stages of its IPO process in Hong Kong, having passed the listing hearing and initiated the global offering of 5.5556 million shares, with a price range of HKD 27-40 per share [1][2] Company Overview - Lemo Technology ranked first in the Chinese machine massage service market from 2022 to 2024 based on transaction volume, with a projected market share exceeding 50% in 2024 [1][3] - The company has established over 48,000 service points and deployed more than 533,000 massage devices across 31 provincial-level regions in China [4][5] Financial Performance - Revenue for Lemo Technology from 2022 to 2024 is projected to be RMB 330 million, RMB 587 million, and RMB 798 million, respectively, with adjusted net profits of RMB 8.534 million, RMB 94.578 million, and RMB 102 million [1][6] - In the first eight months of 2025, revenue reached RMB 630 million, a year-on-year increase of 13.72%, while adjusted net profit was RMB 99.187 million, growing only 0.92% [2][9] Market Dynamics - The shared massage market has experienced a cycle from rapid expansion to rational adjustment, with significant growth in registered companies from 2017 to 2018 [2][3] - The industry faced challenges post-2019, including low usage rates and safety concerns, leading to a significant reduction in market activity [3] Business Model - Lemo Technology employs a "direct operation + city partner" model, allowing for reduced capital investment while expanding its business coverage [4][5] - The company focuses on high-traffic areas such as shopping malls, cinemas, and transportation hubs, with a significant portion of its service points located in large commercial complexes [5][6] Profitability Challenges - Despite leading market share, Lemo Technology's profit growth has slowed, with a notable decline in gross margin from 41.47% in 2023 to 36.07% in 2024 due to rising operational costs [6][7] - The company's direct operation model incurs high costs, including rent and equipment depreciation, which negatively impacts overall profitability [9][10] Future Outlook - Lemo Technology plans to use funds from its IPO to enhance penetration in established markets and expand into new consumer scenarios, including overseas markets [11] - The company faces the challenge of balancing expansion speed with profit release, as well as the need to diversify revenue streams beyond its current reliance on shared massage services [11]

Core Viewpoint - LeMo Technology, a leading provider of shared massage chairs, is preparing for its IPO, with annual revenue nearing 800 million RMB, driven by its extensive network of massage services in high-traffic public areas [1][3]. Group 1: IPO Information - Company Name: LeMo Technology (02539.HK) [2] - Industry: Massage Machine Services [2] - IPO Dates: November 25 to November 28 [2] - Total Shares Offered: 5.5556 million shares, with 10% for public sale and 90% for international placement [2] - Price Range: 27 to 40 HKD per share [2] - Market Capitalization: 1.5 billion to 2.222 billion HKD [2] - Earnings Ratio: 20 times [2] - Minimum Subscription Amount: 4040 HKD [2] - Expected Listing Date: December 3 [2] - Underwriters: CITIC and Shenwan Hongyuan [2] Group 2: Company Overview - Established in 2014, LeMo Technology launched the "LeMo Bar" brand in 2016, providing massage services through machines in densely populated public areas across China [2]. - As of now, the company has over 48,000 service points and more than 535,000 massage machines deployed, covering 31 provincial-level administrative regions and 337 cities in mainland China [5]. Group 3: Market Position and Financial Performance - From 2022 to 2024, LeMo Technology ranked first in the Chinese machine massage service market by transaction volume, with market share increasing from 33.9% to 42.9% [3]. - Revenue is projected to grow from 330.154 million RMB in 2022 to 797.991 million RMB in 2024, more than doubling [6]. - For the first eight months of 2025, the company achieved revenue of 631 million RMB, surpassing the same period last year [6]. - Net profit increased significantly from 6.481 million RMB in 2022 to 87.34 million RMB in 2023, with a slight decrease expected in 2024 [7]. Group 4: Business Model - The company's primary revenue source is the direct operation model, contributing over 83% of total revenue, while the partner model accounts for approximately 14% [8][9]. - The average massage fee per transaction has risen from 12.28 RMB in 2022 to 14.69 RMB in 2024, indicating a growing consumer willingness to pay for services [10]. Group 5: Industry Outlook - The Chinese machine massage service market is expected to grow from 3.102 billion RMB in 2025 to 5.606 billion RMB in 2029, with a compound annual growth rate of 15.9% [11]. - The overall market growth is driven by increased public health awareness and the demand for relaxation among consumers [11]. - The competitive landscape is intensifying, with smaller players exiting the market due to rising costs and declining profitability [12].