Lemo Technology has completed its overseas listing filing and obtained approval for the "full circulation" of unlisted domestic shares. The company plans to issue no more than 19,166,700 overseas-listed ordinary shares and list on the Hong Kong Stock Exchange. Sixteen shareholders of the company intend to convert their combined 17,670,420 unlisted domestic shares into overseas-listed shares for trading on the Hong Kong Stock Exchange.
Lemo Technology must report its listing status through the China Securities Regulatory Commission's filing management information system within 15 working days after completing the overseas listing. The company strictly complies with relevant domestic and international laws, regulations and rules throughout the overseas listing process. If Lemo Technology fails to complete the overseas listing within 12 months from the date of this filing notice and wishes to continue, it must update its filing materials.
According to Hong Kong Stock Exchange listing rules, companies must submit the "filing notice" at least 4 business days before the hearing approval date. This means Lemo Technology has met the prerequisites for conducting a Hong Kong listing hearing and may soon proceed with the listing hearing at the Hong Kong Stock Exchange.
Previously, Lemo IoT submitted its listing application to the Hong Kong Stock Exchange Main Board, with CITIC Securities International and Shenwan Hongyuan Hong Kong serving as joint sponsors.
According to the prospectus, Lemo provides massage services through mechanical massage equipment at service points located in high-traffic public places across China. Based on Frost & Sullivan data, for three consecutive years from 2022 to 2024, the company ranked first among all mechanical massage service providers in China by transaction value, with market shares of 33.9%, 37.3%, and 42.9% respectively. By revenue in 2024, the company also ranked first in China's mechanical massage market with a market share exceeding 50%.
As of December 31, 2024, China had over 10,000 massage service providers, of which over 50 were mechanical massage service providers. According to Frost & Sullivan, by transaction value, China's mechanical massage service market size in 2024 (RMB 2.7 billion) accounted for approximately 0.5% of China's overall massage market in 2024 (RMB 536.2 billion). By transaction value and revenue in 2024, Lemo's market share in the overall massage market was approximately 0.2%.
The company launched the "Lemo Bar" brand in 2016, committed to providing mechanical massage services to consumers in commercial complexes, cinemas, transportation hubs (including airports, high-speed rail stations), and other consumption scenarios. As of the latest practicable date, the company has established over 48,000 service points for mechanical massage services, deployed over 535,000 mechanical massage devices, covering 31 provincial-level administrative regions and 339 cities in mainland China.
The company's service points expanded from 21,727 as of December 31, 2022, to 45,993 as of December 31, 2024, representing a CAGR of approximately 45.49%. In terms of consumer coverage, the company holds a solid market position, with cumulative identifiable service recipients exceeding 165 million and registered members exceeding 32 million as of the latest practicable date.
During the track record period and up to the latest practicable date, Lemo's revenue mainly came from: mechanical massage services, where the company purchases massage equipment from suppliers who strictly comply with company standards and deploys such equipment in various scenarios to provide mechanical massage services; and others, mainly including online sales of home massage equipment and massage accessories, and digital advertising services.
Lemo's business model primarily consists of direct operation and partner models. The direct operation model is the company's main business model for mechanical massage services, with approximately 71.0% of service points operating under the direct operation model as of the latest practicable date. Under the direct operation model, the company's internal operation team manages service point operations, including service point location selection, site negotiation, service point decoration, and service point operation and maintenance.
The company also adopts a partner model, collaborating with city partners who leverage their rich local resources and networks. As of the latest practicable date, approximately 29.0% of the company's service points operated under the partner model. Under this model, city partners are responsible for service point operations, while the company provides comprehensive mechanical massage service solutions, including: construction and upgrade of the LMBLinks platform; development of the "Lemo Bar" brand; comprehensive guidance on service point operation and maintenance; supply of mechanical massage equipment and related spare parts; access to the LMBLinks platform required for equipment and daily operations; and customer service assistance in handling consumer complaints.
As of the latest practicable date, Lemo has established stable cooperative relationships exceeding five years with approximately 95% of city partners. The company believes that the systematic "direct operation + city partner" dual-track parallel business model is key to differentiating itself from competitors, enabling effective expansion of nationwide business coverage while continuously optimizing and improving operational efficiency.
Lemo's service points are distributed across various consumption scenarios, including commercial complexes, cinemas, transportation hubs, and other scenarios. In commercial complexes, the company places mechanical massage service points in open business areas such as atriums and corridors. In cinemas, the company installs mechanical massage pads on seat backs in screening halls or places service points in cinema waiting areas or ticket halls. In transportation hubs, the company places service points in arrival or departure waiting areas.
According to the Frost & Sullivan report, as of the latest practicable date, regarding the company's service point network coverage, the company has achieved the following milestones: 5,132 commercial complexes with GFA exceeding 30,000 square meters, accounting for approximately 69.0% of commercial complexes in China with GFA exceeding 30,000 square meters; 1,237 cinemas with annual box office exceeding RMB 5 million, accounting for approximately 55.0% of cinemas in China with annual box office exceeding RMB 5 million; and 23 airports with annual passenger traffic exceeding 10 million, accounting for approximately 58.0% of airports in China with annual passenger traffic exceeding 10 million.
During the track record period, the company primarily generated revenue from mechanical massage services and others. All revenue during the track record period came from the company's business in China. For the years ended December 31, 2022, 2023, and 2024, and the three months ended March 31, 2024 and 2025, the company recorded revenue of RMB 330 million, RMB 587 million, RMB 798 million, RMB 187 million, and RMB 221 million, respectively.
For the years ended December 31, 2022, 2023, and 2024, and the three months ended March 31, 2024 and 2025, the company's gross profit was RMB 85.3 million, RMB 245 million, RMB 288 million, RMB 68.52 million, and RMB 77.06 million, respectively. During the same periods, the company's gross profit margins were 25.85%, 41.79%, 36.07%, 36.69%, and 34.86%, respectively.
For the years ended December 31, 2022, 2023, and 2024, and the three months ended March 31, 2024 and 2025, the company's profit for the year was RMB 6.48 million, RMB 87.34 million, RMB 85.81 million, RMB 26.38 million, and RMB 23.34 million, respectively.
The proceeds from Lemo's Hong Kong IPO are intended to be used for the following purposes: expanding the coverage and penetration of the company's service points; continuously improving and iterating the company's technology; enhancing the company's brand; and supporting working capital and other general corporate purposes.