Core Insights - The demand for muscle relaxation and fatigue relief is increasing among residents, leading to a growing acceptance of machine massage services, particularly among white-collar workers and business travelers [1][4] - The market size of China's machine massage service industry is projected to reach 2.707 billion yuan in 2024, with a year-on-year growth of 10.8% [1][4] Industry Overview - Machine massage services are defined as services that provide muscle relaxation and fatigue relief through automated devices, differentiating them from traditional manual massage services [2] - The industry has evolved through four stages: nascent, expansion, adjustment, and upgrade, reflecting changes in consumer demand and technological advancements [3] Industry Chain - The upstream of the machine massage service industry includes suppliers of raw materials like aluminum, stainless steel, and textiles, as well as component suppliers for motors and sensors [3] - The midstream consists of machine massage equipment manufacturing and service operations, while the downstream includes commercial complexes, cinemas, and transportation hubs as distribution channels [3] Market Distribution - In 2024, commercial complexes are expected to account for over 40% of the distribution channels, followed by train stations and airports at 22.32% and 18.95%, respectively [4] Competitive Landscape - The machine massage service market in China is characterized by high concentration, with the top five companies holding a market share of 86.8% in 2024, driven by the exit of smaller players during the pandemic [5] - LeMo Technology is the market leader with over 40% market share, showcasing significant head effects in the industry [5] Company Analysis - LeMo Technology, established in 2014, has integrated IoT technology with its massage services, achieving a revenue of 221 million yuan in Q1 2025 with a gross profit margin of 34.86% [7] - Shanghai Rongtai Health Technology focuses on the design and production of massage devices, reporting a revenue of 810 million yuan in the first half of 2025, with massage chairs making up 96.12% of sales [7] Development Trends - The industry is shifting from standardized massage services to personalized intelligent services, utilizing advanced technologies for real-time user data collection [8] - Machine massage services are expanding beyond traditional venues to include diverse environments like esports arenas and fitness centers, aiming for comprehensive market coverage [9] - Growth is expected to shift from first and second-tier cities to third and fourth-tier cities, with strategies tailored to local consumer capabilities [10] - The industry is moving towards a holistic model that integrates massage services with health management, creating a value-added ecosystem [11]

Core Viewpoint - The stock of LeMo Technology (02539) has experienced significant volatility, with a surge in price following its IPO, revealing the dynamics of major capital movements and the underlying reasons for the reluctance to sell shares [1][2]. Group 1: Company Overview - LeMo Technology is a leading provider of shared massage equipment, achieving an oversubscription of 5912.8 times during its IPO, indicating strong investor interest [2]. - The company has maintained a dominant position in the massage chair market, ranking first in China by transaction value from 2022 to 2024, with a projected market share exceeding 50% in 2024 [10][11]. Group 2: Financial Performance - The company's revenue growth is showing signs of slowing down, with a compound annual growth rate (CAGR) of 55.5% from 2022 to 2024, but a decrease to 35.9% in 2024 and further down to 13.72% in the first eight months of 2025 [10]. - Profitability metrics indicate a net profit margin of 2.58%, 16.12%, 12.78%, and 15.75% over the same period, influenced by a fluctuating gross margin [10]. Group 3: Business Model and Strategy - LeMo Technology operates under a dual business model of "direct sales + city partners," focusing on high-traffic areas such as shopping malls and transportation hubs, with over 48,000 service points established [11]. - The company has faced challenges with profitability due to rapid expansion, leading to underutilization of massage chairs, as evidenced by a 90% increase in equipment quantity but a 31% decrease in daily transaction volume per chair [11]. Group 4: Market Dynamics - The Chinese massage service market is relatively small, projected to grow from 2.707 billion yuan in 2024 to 5.606 billion yuan by 2029, with a CAGR of 15.9% [12]. - LeMo Technology's core market is commercial complexes, but the growth potential appears limited given the overall market size and competition [12]. Group 5: Stock Performance and Investor Sentiment - The stock price of LeMo Technology has increased by over 58% from its IPO price, despite experiencing a 25.2% pullback after initial gains, indicating strong holding sentiment among investors [1][3]. - Major institutional investors, such as Futu Securities, have shown a tendency to hold their positions, suggesting confidence in the stock's future performance [5].

Group 1 - The core viewpoint of the article highlights the significant stock price increase of LeMo Technology (02539), which rose over 17% to reach a new high of 67.8 HKD, representing an increase of over 60% from its IPO price of 40 HKD [1] - As of the report, the stock was trading at 67.1 HKD with a transaction volume of 14.01 million HKD [1] - LeMo Technology ranks first among all machine massage service providers in mainland China by transaction volume for three consecutive years from 2022 to 2024, with market shares of 33.9%, 37.3%, and 42.9% respectively [1] Group 2 - According to Everbright Securities International, the overall massage market is expected to grow at a CAGR of 14.6% from 2020 to 2024, reaching a market size of 676.9 billion RMB by 2029 [1] - The machine massage service market is projected to experience substantial growth, with an expected market size of 5.6 billion RMB by 2029 and a significant CAGR of 15.9% from 2025 to 2029 [1] - The rapid growth of the machine massage service market is attributed to increasing public health awareness, a growing focus on stress relief and relaxation among consumers, and the younger generation's acceptance of smart, automated, and self-service consumption models [1]

Group 1 - LeMo Technology (02539) saw a stock price increase of over 17%, reaching a new high of 67.8 HKD, which is more than a 60% rise from the IPO price of 40 HKD [1] - As of the latest report, the stock is trading at 67.1 HKD with a transaction volume of 14.01 million HKD [1] Group 2 - LeMo Technology provides massage services through machine massage equipment located in high-traffic public areas across China [1] - According to Frost & Sullivan, LeMo ranks first among all machine massage service providers in mainland China by transaction volume for the years 2022 to 2024, with market shares of 33.9%, 37.3%, and 42.9% respectively [1] - By revenue, LeMo is also expected to rank first in the mainland machine massage market in 2024, with a market share exceeding 50% [1] Group 3 - According to Everbright Securities International, the overall massage market is projected to have a CAGR of 14.6% from 2020 to 2024, with an expected market size of RMB 676.9 billion by 2029 [1] - The machine massage service market is anticipated to grow significantly, with an expected market size of RMB 5.6 billion by 2029 and a CAGR of 15.9% from 2025 to 2029 [1] - The rapid growth of the machine massage service market is attributed to increasing public health awareness, a growing focus on stress relief and relaxation among consumers, and the acceptance of smart, automated, and self-service consumption models by younger demographics [1]

Group 1 - LeMo Technology Co., Ltd. completed its initial public offering and listing on the Hong Kong Stock Exchange on December 3, 2025, with the stock code 02539.HK [3] - LeMo Technology is a Chinese provider of machine massage services, offering massage services through machine equipment located in high-traffic public areas across China [5]

Core Viewpoint - LeMo Technology Service Co., Ltd. (乐摩科技) has successfully listed on the Hong Kong Stock Exchange, with a closing price of 54.5 HKD, reflecting a 36.25% increase from its opening price of 64.8 HKD [1] Group 1: Company Overview - LeMo Technology issued a total of 5,555,600 shares, with 555,600 shares allocated for public offering and 5,000,000 shares for international offering [2] - The final offering price was set at 40.00 HKD, raising a total of 222.22 million HKD, with a net amount of 182.16 million HKD after deducting estimated listing expenses of 40.06 million HKD [5][6] - The company provides massage services through machine-operated devices located in high-traffic public areas across China [6] Group 2: Financial Performance - Revenue figures for LeMo Technology from 2022 to 2025 (up to August) are as follows: 330.15 million RMB in 2022, 586.84 million RMB in 2023, 797.99 million RMB in 2024, and 630.73 million RMB in 2025 [7][8] - The corresponding profit figures for the same periods are: 6.48 million RMB in 2022, 87.34 million RMB in 2023, 85.81 million RMB in 2024, and 88.55 million RMB in 2025 [8] - The company’s operating cash flow for the same periods is reported as 83.31 million RMB in 2022, 164.28 million RMB in 2023, and projected 190.45 million RMB in 2025 [9] Group 3: Industry Context - The machine massage service market in China is projected to reach only 2.7 billion RMB by 2024, representing a mere 0.5% of the overall massage market, which is expected to grow to 676.9 billion RMB by 2029 [10] - The demand for machine massage services is characterized as "non-rigid," with consumers often prioritizing other activities over massage, leading to underutilization of the machines [10] - Competition from traditional massage services poses a significant challenge, as consumers often prefer the personalized experience offered by professional massage establishments over the standardized services of shared massage chairs [11]

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 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 - LeMoBar is attempting to relist on the Hong Kong Stock Exchange after a six-month hiatus, with plans to use the raised funds for network expansion, technology upgrades, brand awareness, and operational capital [1] Company Performance - LeMoBar's market share in the domestic massage service sector reached 42.9% by transaction volume in 2024, significantly higher than the second-place competitor at 16.6% [2] - Revenue growth slowed from 77.8% in 2022 to 36.0% in 2024, while profit growth plummeted from 1247.6% to -1.8% during the same period [2] - In Q1 2025, total revenue was 221 million yuan, an 18.4% year-on-year increase, but net profit fell by 11.5% to 23.34 million yuan compared to the same period in 2024 [2] Business Model and Challenges - The cinema segment is the primary market for LeMoBar, with 83.4% of its nearly 520,000 massage devices located in cinemas [3] - The average daily transaction volume per device in cinemas was only 0.07 in Q1 2025, compared to 2-3 times in other commercial settings [3] - Despite low profitability in cinemas, LeMoBar increased the number of devices in this segment, adding 47,300 units by mid-2025 [5] Operational Costs and Profitability - The direct operation model has led to rising costs, with service site usage and maintenance costs comprising 88.4% to 91.1% of sales costs from 2022 to Q1 2025, resulting in a decline in gross margin from 34.5% to 28.9% [6] - The partner model, while transferring operational risks, has seen a net decrease of 30 partners since 2022, with only 41 remaining as of Q1 2025 [6][7] Market Outlook - The domestic massage service market is projected to grow at a compound annual growth rate of 15.9% from 2025 to 2029, but certain segments like cinemas and commercial complexes are experiencing a decline [8] - Regulatory pressures may limit the number of massage devices in high-traffic areas, posing potential challenges for LeMoBar's growth strategy [11] Financial Health - LeMoBar has only completed one round of equity financing, with a significant portion of its cash flow tied to short-term borrowings, totaling approximately 45.36 million yuan [12][13] - Despite financial strain, the company distributed dividends totaling 43.75 million yuan from 2023 to 2024, which accounted for 25.3% of net profits during that period [14]