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, 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 IoT Technology Co., Ltd. is attempting to relist on the Hong Kong Stock Exchange after its previous IPO attempt failed, highlighting its strong desire for capital market support despite facing significant operational challenges and uncertainties [1][3]. Company Overview - LeMo IoT, a leading player in the shared massage industry in China, has seen its market share exceed 50% as of 2024, ranking first in the machine massage market [3]. - The company has experienced rapid revenue growth, with projected revenues of RMB 3.30 billion, RMB 5.87 billion, and RMB 7.98 billion for 2022, 2023, and 2024 respectively [11]. - As of March 31, 2025, LeMo has over 48,000 service outlets and more than 535,000 smart massage devices deployed across 339 cities in China [11]. Financial Performance - Despite significant revenue growth, LeMo has struggled with profitability, reporting adjusted net profits of RMB 853.4 million, RMB 9.46 million, and RMB 1.02 billion for the years 2022, 2023, and 2024 respectively [11]. - The company has faced cash flow challenges, with cash and cash equivalents decreasing from RMB 43.21 million in 2022 to RMB 27.80 million by September 2024 [14]. Shareholder Actions - Prior to the IPO, LeMo's shareholders engaged in significant cash-out activities, including large dividend distributions totaling RMB 43.75 million, raising concerns about the company's liquidity [14][15]. - The company repurchased shares from a key investor for RMB 62.1 million due to not meeting IPO deadlines, indicating potential governance issues [14]. Business Model and Challenges - LeMo's revenue is heavily reliant on its smart massage services, which accounted for 98.11% of total revenue by 2024 [18]. - The company operates through both direct and partner models, with direct operations contributing higher revenue but facing greater cost pressures, resulting in lower profit margins compared to the partner model [18][20]. - The company has seen a decline in the number of city partners, from 68 to 45, indicating potential issues in its partner-based business model [20]. Market Context - The overall market for smart massage services has shown limited growth, with a compound annual growth rate of only 1.1% from 2019 to 2023 [22]. - LeMo's plans for fundraising are challenged by the small market size and low growth potential in the industry, making it difficult to attract capital [22].