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].
乐摩科技八成设备“躺”在影院