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]

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) applying for a second time for an IPO in Hong Kong, indicating potential growth concerns for the future [1] Group 1: Company Overview - Lemo was established in 2014 and launched the "Lemo Bar" brand in 2016, providing machine massage services in commercial complexes, cinemas, and transportation hubs [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, with a compound annual growth rate (CAGR) of approximately 45.49% in service points from 2022 to 2024 [2] - As of the last feasible date, Lemo has served over 165 million identifiable users and has over 32 million registered members [2] Group 2: Financial Performance - Lemo's revenue from machine massage services and other sources has shown significant growth, with revenues of 330 million yuan, 587 million yuan, and 798 million yuan for the years 2022, 2023, and 2024 respectively, achieving a doubling of revenue over three years [2] - The company recorded a 77.7% year-on-year revenue increase in 2023, but the growth rate is expected to slow to approximately 36% in 2024 [2] - The net profit surged from 6.48 million yuan in 2022 to 87.34 million yuan in 2023, with a slight decline of 1.8% expected in 2024 [5] Group 3: Revenue Sources and Business Model - By 2024, 98.11% of Lemo's revenue will come from machine massage services, with the remaining revenue from home massage equipment and digital advertising services [3] - The company operates primarily through a direct sales model, which accounts for over 80% of its revenue, while the partner model contributes only 14.31% [4] Group 4: Market Position and Industry Trends - Lemo ranks first among all smart massage service providers in mainland China, with market shares of 33.9%, 37.3%, and 42.9% from 2022 to 2024 [10] - The smart massage service market in China is projected to grow from 1.721 billion yuan in 2020 to 2.707 billion yuan in 2024, with a CAGR of 12.0% [8] - The company’s revenue from commercial complexes, cinemas, airports, and high-speed rail stations accounted for 60.82%, 26.14%, 9.71%, and 1.52% of total revenue respectively by 2024 [10] Group 5: Operational Challenges and Future Outlook - The company faces challenges such as high rental costs, rapid growth in sales costs, and increasing marketing and administrative expenses, which have led to a decline in cash reserves [6][12] - The industry is shifting towards refined operational strategies, with a focus on hygiene, maintenance, and profitability, while long-term growth will depend on technological innovation and cost control [13] - Lemo plans to use the funds raised from the IPO to expand service coverage, enhance technology, and support working capital, aiming to solidify its leading position in the market [13]