Core Viewpoint - LeMo Technology has successfully listed on the Hong Kong Stock Exchange, becoming the first publicly traded company in the shared massage chair service sector, with an IPO price of HKD 40 and raising approximately HKD 200 million, resulting in a market capitalization of around HKD 4.111 billion [2][3]. Company Overview - LeMo Technology operates under the brand "LeMo Bar," providing smart shared massage chairs in high-traffic locations such as shopping malls, cinemas, high-speed rail stations, and airports, utilizing a "scan to use, pay by the minute" service model [2][3]. - The company has established over 48,000 service points, deployed 533,000 devices, and has more than 40 million registered members [3]. Founders and Business Evolution - The company was founded by Xie Zhonghui and Han Daohu, who hold 30.9% and 17.6% of the shares, respectively [3]. - Xie Zhonghui's entrepreneurial journey began in 2008 when he entered the massage equipment industry, leading to the establishment of LeMo Technology in 2016, which was initially a restructured company with a focus on shared massage services [5][6]. Business Model and Market Position - LeMo Technology employs a dual operating model of "direct sales + partners," with 70.4% of service points operated directly to ensure quality, while 29.6% are managed by city partners for rapid expansion [12][14]. - The company has achieved a market share of 42.9% in the machine massage service market by transaction volume, significantly outpacing its nearest competitor [17]. Financial Performance - Revenue figures for LeMo Technology from 2022 to 2024 are projected to be CNY 330.154 million, CNY 586.836 million, and CNY 797.991 million, with net profits of CNY 6.48 million, CNY 87 million, and CNY 85.58 million, respectively [13][17]. - As of the first eight months of 2025, the company has generated revenue of CNY 631 million and a net profit of CNY 88.55 million, indicating a positive cash flow trend [17]. Market Trends and Future Outlook - The shared massage service market is expected to grow from CNY 27.6 billion in 2024 to CNY 56 billion by 2029, with a compound annual growth rate of approximately 15.7% [24]. - LeMo Technology plans to expand into Southeast Asia, targeting 2,000 service points and over 10,000 devices by 2026, leveraging its dual model experience [20][21]. Industry Dynamics - The market is consolidating, with leading companies capturing a larger share due to their scale and operational efficiencies, while smaller players are exiting due to financial pressures [22][25]. - Currently, there are over 50 participants in the shared massage service market, but only a few have national reach, with LeMo Technology being one of the top three players alongside Rongtai Health and OJIAHUA [22][24].

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]

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].

Core Viewpoint - LeMo IoT has emerged as a profitable example in the generally loss-making shared economy sector, as it continues to push forward with its IPO plans despite previous setbacks [2][11]. Company Overview - LeMo IoT, originally founded as Fuzhou Zhangchuang Information Technology Co., Ltd. in May 2014, transitioned into the shared massage chair market in 2016 with the launch of its brand "LeMo Bar" [4]. - The company has only undergone one round of financing, raising 50 million yuan in December 2017, which valued it at 400 million yuan, and has since relied on self-generated revenue for expansion [4]. Financial Performance - LeMo IoT reported revenues of 330 million yuan, 587 million yuan, 798 million yuan, 187 million yuan, and 221 million yuan for the years ending December 31, 2022, 2023, 2024, and the first three months of 2024 and 2025, respectively [6]. - The company achieved record highs in revenue and net profit in 2024, with Q1 2025 revenue surpassing the total for 2022 [6]. Market Position - According to Frost & Sullivan, LeMo IoT holds a 42.9% market share in China's machine massage market by transaction value, maintaining the top position for four consecutive years [6]. - The overall machine massage market in China is valued at 2.7 billion yuan, representing only 0.5% of the total massage market, which is worth 536.2 billion yuan, indicating significant growth potential for LeMo IoT [6]. Business Model - The company employs a "direct sales + partner" dual-driven model, allowing for a "light" operational approach under heavy asset conditions [8]. - Directly operated stores account for 71% of total outlets and contribute approximately 84% of revenue, while the partner model involves city partners managing site rental and daily operations, with LeMo IoT providing equipment and systems [10]. - The gross profit margin for the partner model is reported at 74.44% [10]. Operational Footprint - LeMo IoT's operational layout includes three main segments: large commercial complexes with a penetration rate of 69%, cinemas with a ticket revenue exceeding 5 million yuan at 55% penetration, and airports with over 10 million annual visitors at 58% penetration [10].

Core Viewpoint - The article discusses the growth and market position of "LeMo Bar," a company specializing in shared massage chair services in China, which is preparing for an IPO on the Hong Kong Stock Exchange. Company Overview - LeMo Bar's parent company, Fujian LeMo IoT Technology Co., Ltd., has submitted an IPO application to the Hong Kong Stock Exchange [7] - The company was established in May 2014 and launched the "LeMo Bar" brand in 2016, focusing on providing machine massage services in high-traffic public areas [7][12] - As of July 18, 2025, LeMo Bar has over 48,000 service points and 535,000 massage machines across 31 provincial-level regions and 339 cities in mainland China [8][9] Market Position - LeMo Bar has achieved profitability with a net profit exceeding 80 million yuan, with approximately 60% of its revenue generated from commercial complexes [7][12] - The company holds a market share of over 50% in the machine massage service sector in China, ranking first in transaction volume for three consecutive years [9][10] - The overall market size for machine massage services in China is projected to be 2.7 billion yuan in 2024, with LeMo Bar accounting for about 0.2% of the total massage market [9] Financial Performance - Revenue figures for LeMo Bar during the reporting period are as follows: 330 million yuan in 2022, 587 million yuan in 2023, and 798 million yuan in 2024, with a year-on-year growth of 77.75% in 2023 [11][12] - The company’s profit for the same period increased significantly, with a year-on-year growth of 12.48 times in 2023 [11] Service Model - LeMo Bar operates primarily through a direct sales model, with approximately 71% of service points under this model, while 29% operate under a partner model [11] - The pricing structure for services includes options such as 6 yuan for 6 minutes, 10 yuan for 12 minutes, and 15 yuan for 20 minutes, with discounts available [8][12] Expansion Plans - The company plans to use the funds raised from the IPO to expand its service network, enhance technology, improve brand recognition, and support operational funding [12]