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]
80%设备“锁”在影院，乐摩科技为何越铺越亏