Core Viewpoint - The shared massage chair industry is experiencing stable market share after initial rapid expansion and subsequent market consolidation, with Fujian Lemo IoT Technology Co., Ltd. (Lemo) seeking to go public for the second time amid growth concerns [1][2]. Group 1: Company Overview - Lemo was established in 2014 and launched the "Lemo Bar" brand in 2016, providing machine massage services in various public venues [2]. - The company has over 48,000 service points and more than 535,000 massage machines deployed across 31 provinces and 339 cities in mainland China [2]. - Lemo's service points grew from 21,727 in 2022 to 45,993 by the end of 2024, representing a compound annual growth rate (CAGR) of approximately 45.49% [2]. Group 2: Financial Performance - Lemo's revenue from machine massage services is projected to grow from 330 million RMB in 2022 to 798 million RMB in 2024, achieving a doubling of revenue over three years [2][3]. - The company reported a revenue increase of 77.7% in 2023, but the growth rate is expected to slow to approximately 36% in 2024 [2]. - Lemo's net profit surged from 6.48 million RMB in 2022 to 87.34 million RMB in 2023, with a slight decline to 85.81 million RMB in 2024 [3]. Group 3: Market Position - Lemo holds the largest market share in China's smart massage service sector, with market shares of 33.9%, 37.3%, and 42.9% from 2022 to 2024 [5]. - The company ranks first in the machine massage market with over 50% market share in 2024 [5]. - The smart massage service market in China is expected to grow from 17.21 billion RMB in 2020 to 27.07 billion RMB in 2024, with a CAGR of 12.0% [5]. Group 4: Operational Challenges - The company faces cost pressures, with sales costs increasing by 49.4% in 2024, outpacing revenue growth [4]. - Marketing expenses grew by 47.6% and administrative costs by 57.6% in 2024, indicating rapid expense growth [4]. - The cash and cash equivalents held by Lemo decreased to 19.68 million RMB by the end of 2024, highlighting a need for capital replenishment [4]. Group 5: Future Outlook - The company plans to use IPO proceeds to expand service point coverage, enhance technology, and support working capital [7]. - The industry is shifting towards refined operational strategies, with a focus on user experience and cost control as key challenges [7]. - Lemo's ability to maintain its leading position and explore transformation paths will be crucial for future growth [7].