In November 2025, Lemo Technology Services Co., Ltd. successfully passed the Hong Kong Stock Exchange's hearing, bringing it one step closer to listing on the Hong Kong Stock Exchange's main board. The company officially listed on the Hong Kong Stock Exchange on December 3, 2025. This enterprise, with 'Lemo Bar' as its core brand, has been a focal point of attention in the intelligent health industry since its first application submission in January 2025.

Currently, the intelligent health consumption market is experiencing a significant growth window. With the rise in residents' disposable income and a continuous awakening of health consciousness, the concept of 'proactive health' has gradually integrated into daily life. The boundaries of health services have extended beyond traditional medical care, delving deeper into daily and scenario-based directions. According to a GWI report, the global health market size reached USD 6.8 trillion in 2025, with China accounting for nearly 28%, becoming the core growth engine of the global health industry. Domestically, the Chinese health market size is expected to exceed RMB 24 trillion by 2029, with the health and wellness sector as the primary growth driver. As an important subcategory in the intelligent health field, the robotic massage service market has shown outstanding performance. Frost & Sullivan forecasts that its compound annual growth rate will exceed 15.9% from 2025 to 2029.

Against this industry backdrop, Lemo Technology's sprint for its IPO on the Hong Kong Stock Exchange coincides with the release of industry dividends, allowing the company to accelerate scenario expansion and technological upgrades with capital support, and consolidate its position with the endorsement of the capital market. Its IPO process is not only a crucial step in its own capitalization but also a vivid sample for observing the maturity of the intelligent health consumption track.

Why is Lemo Technology 'Setting Off'?

Lemo Technology's ability to stand firm in this fiercely competitive track stems from the accumulation of multiple capabilities.

In terms of technological R&D, its investment in R&D has consistently remained at a leading level in the industry. According to the company's prospectus, over the past three years, cumulative R&D investment reached RMB 1.049 billion, with an average proportion of 18.35% of same period (the same period's) operating revenue. The company boasts a team of nearly 100 professional R&D personnel, with 38% holding master's degrees or higher, achieving multiple breakthroughs in key areas such as intelligent massage algorithms, multi-dimensional sensor technology, and ergonomics applications.

Regarding product and scenario layout, the company has constructed a diversified product matrix around intelligent massage devices, pairing differentiated equipment configurations according to the needs of various scenarios. On the channel front, 70.4% of its service outlets adopt a direct sales model, ensuring stable service quality. The remaining outlets penetrate sink markets (lower-tier markets) through a mature partnership model. According to Sina Finance, 95% of urban partners have collaborated for over five years. This channel model enables efficient and stable expansion.

The company also boasts prominent advantages in brand and market influence. Lemo Technology has rapidly expanded its brand influence through an omnichannel sales model combining online and offline channels. Online, the company has opened official flagship stores on mainstream e-commerce platforms such as JD.com and Taobao, focusing on the sales of home massage devices and offline service leads. Related categories maintain stable exposure and user reputation in the vertical field of intelligent massage devices.

Offline, according to the prospectus, Lemo Technology has deployed over 530,000 massage devices and established more than 40,000 branded service outlets in major cities across the country, providing consumers with opportunities to experience products firsthand and further enhancing brand awareness and reputation.

Capital reserves and team stability also serve as crucial supports for its development. According to the company's public information and authoritative media reports, Lemo Technology received RMB 50 million in investment from Cornerstone Yixiang in December 2017 and listed on the Hong Kong Stock Exchange in December 2025, raising approximately HK$ 182 million in net proceeds. Investor Cornerstone Yixiang not only provided financial support but also valuable resources in strategic planning.

Simultaneously, the company's management team possesses extensive industry experience and excellent management capabilities. Core members average over 12 years of experience in the intelligent massage device industry and have successfully led the company to achieve rapid business growth and market share expansion.

The 'Thorny' Path of Lemo Technology's IPO Development

However, Lemo Technology's IPO journey and subsequent sustainable development are not without challenges. Both industry-wide issues and the company's own shortcomings pose hurdles that must be addressed.

Firstly, market competition is intensifying. The intelligent massage device market has shown rapid growth in recent years, attracting numerous enterprises to enter the fray. According to market research agency predictions, the market size is expected to reach RMB 5.6 billion by 2029. However, with the increasing number of market participants, competition has become fiercer. Currently, there are over 30 brands in the market, engaging in all-around competition in terms of product pricing, etc., placing significant market pressure on Lemo Technology. The industry's competition has long since shifted from mere scenario layout contention to comprehensive competition in technology, branding, and services.

Secondly, there is substantial pressure for technological innovation. The intelligent health field experiences rapid technological updates, with new technologies such as AI health diagnosis and multimodal data monitoring constantly emerging. If the company's R&D investment fails to keep pace or if the technological direction deviates, it could lead to a decline in product competitiveness, making it difficult to meet users' increasingly precise and personalized demands for health services.

Thirdly, policy and regulatory risks are increasing. With the advancement of policies related to 'Artificial Intelligence + Healthcare,' safety standards for intelligent health devices and data privacy protection requirements are becoming increasingly stringent. Devices must undergo more standardized clinical validation and compliance reviews. If the company fails to keep up with the pace of policy changes, it may face service suspensions or even restricted market access.

Fourthly, there is uncertainty in valuation and profitability. The company's IPO price range is set at HK$ 27-40 per share, with a 48% gap between the upper and lower limits. Coupled with the significant valuation volatility of small and mid-cap tech companies in the Hong Kong stock market, these factors may impact the issuance pace and final outcome.

Profitability also poses challenges. Although the company's revenue has been growing, there have been instances in the past where revenue increased without a corresponding rise in profits. How to stabilize profit margins while expanding scale is a problem that must be solved to achieve sustained profit growth.

Intelligent Health Enters an Era of Capitalization Competition, Reshaping Competitive Rules

Lemo Technology's IPO is a microcosm of the intelligent health consumption track's move towards capitalization. As industry dividends continue to be released, more companies may rush to the capital market in the future, officially ushering the intelligent health industry into an era of capitalization competition. Under this trend, the industry's competitive rules will undergo reconstruction.

Firstly, the competition focus will shift from 'scale expansion' to 'quality improvement.' The valuation logic of the capital market places greater emphasis on core indicators such as single-store profitability, profit stability, and cash flow health. This will compel industry players, including Lemo Technology, to optimize their operational systems, focus on solving franchisors' profitability issues, enhance single-store operational efficiency, and move away from a 'scale-over-efficiency' development model.

Secondly, technology and supply chain capabilities will become core competitiveness. Against the backdrop of continuous emergence of new technologies such as AI health diagnosis and multimodal data monitoring, those who can achieve sustained technological breakthroughs and form cost and efficiency advantages in supply chain integration will stand out in the homogeneous competition and even build formidable industry barriers.

Thirdly, compliance capabilities will become the bottom line for survival. With the Dense landing (intensive implementation) of policies such as the Data Security Law, Personal Information Protection Law, and 'Artificial Intelligence + Healthcare,' safety standards, clinical validation requirements, and data privacy protection thresholds for intelligent health devices continue to rise. Compliance levels not only directly determine a company's market access qualifications but also influence brand credibility and user trust, becoming a crucial support for long-term development.

Overall, for Lemo Technology to establish a firm foothold in the capital market in the future, it must find a balance between scale expansion and profitability quality, technological innovation, and compliant development. Its subsequent IPO performance and development trajectory will not only concern the company's own fate but also provide important references for the capitalization process of the entire intelligent health consumption industry, driving the industry towards a more standardized and higher-quality direction.