Lemo Services Co., Ltd (2539.HK) has announced the signing of a joint venture agreement with Shanghai Maoyihui to establish a new company that will provide mechanical massage services in office settings. The registered capital of the joint venture is RMB10 million, of which Lemo Services will contribute RMB8 million (80%) and Shanghai Maoyihui RMB2 million (20%). Upon formation, the new entity will become a non-wholly owned subsidiary of Lemo Services.

According to the announcement dated 12 February 2026, one of the key aims of the joint venture is to leverage Lemo Services’ production capabilities and the technical expertise of Shanghai Maoyihui’s general partner, who is also a director at Lemo Services, to expand the mechanical massage business in workplace locations. The board of Lemo Services noted that engaging in this venture is expected to bring synergies in product development and market expansion.

Since Shanghai Maoyihui is an associate of a director of Lemo Services, the investment constitutes a connected transaction under Chapter 14A of the Listing Rules. As the highest applicable percentage ratio exceeds 0.1% but is below 5%, it is subject to reporting and announcement requirements but exempt from the circular and independent shareholders’ approval requirements. The board considers the terms of the transaction fair and reasonable, believing it to serve the overall interests of the company and its shareholders.