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].
健康IPO｜80%设备“锁”在影院，乐摩科技为何越铺越亏