Post-listing, it took this company only two months to see its share price first double and then be slashed in half.

However,Lemo (02539.HK), the "first stock of shared massage chairs" which has been listed for less than three months, suffered a major setback before the Lunar New Year. Its stock price plummeted repeatedly, with a single-day drop nearing 40% in early February 2026.

As of the close on February 24, 2026,Lemo was quoted at **HK$19.28 per share**. This represents a drop of nearly 80% from its closing price on December 8, and a decline of over 50% from its opening price.

**Stock Price Completes Roller Coaster Run, Falling Over 50% Below IPO Price**

On December 3, 2025,Lemo debuted on the Hong Kong stock market at an offer price of **HK$40 per share**. In an environment where HKEX newcomers often "break below the offer price without cornerstones," this company—which lacked both a greenshoe mechanism and cornerstone investors—delivered a first-day performance that caught everyone's eye.

Data reveals thatLemo raised approximately **HK$222 million** through its issuance. It garnered significant attention from market investors at the time of its debut, with the public offering oversubscribed by more than 7,324 times and the international placement oversubscribed by over 6 times.

NewTimeSpace has learned thatLemo was highly sought after during the pre-listing dark market trading phase and opened 60% higher on its first day of listing. Its intraday gain on the first day peaked at 78.65% before eventually closing at **HK$54.5**, an increase of 36.25% over the offer price, exceeding market expectations. Subsequently, on December 8, 2025,

However, the good times did not last. After its share price doubled,Lemo entered a prolonged period of gradual decline. Although there was a slight rebound in early January, the company's stock price recorded a **39.77% plunge** on February 5, 2026, with an intraday drop nearly reaching 50%—essentially a "halving" in a single day.

Since then,Lemo's stock has fluctuated sideways, hovering around the HK$20 mark. As of the close on February 24, 2026,Lemo was quoted at **HK$19.28 per share**, representing a cumulative decline of 51.80% since its listing. Its total market capitalization stands at **HK$1.071 billion**, having shrunk by half.

**Revenue Growth Decelerates; Expansion Leads to Revenue Growth Without Profit Growth**

Public records indicate thatLemo, founded in 2014, is a Chinese provider of automated massage services. In 2016, the company launched the "LeMo Bar" brand and began deploying automated massage services in consumer scenarios such as commercial complexes, cinemas, airports, and high-speed railway stations.

Data shows thatLemo has covered over 300 cities nationwide, deploying more than **533,000 massage chair units** across 48,000 service points, with a compound annual growth rate (CAGR) of 45.49%. The cumulative total of identifiable consumers exceeds 174 million, with over 40 million registered members.

In 2024,Lemo's total transaction value (GTV) for massage equipment reached **RMB 1.162 billion**, roughly doubling from RMB 555 million in 2022. In terms of revenue, the company's figures jumped from RMB 330 million to **RMB 798 million** between 2022 and 2024, achieving a three-year CAGR of 55.5%.

AlthoughLemo has grown rapidly in recent years, the trajectory of its decelerating growth rate is quite evident. Benefiting from the recovery of domestic consumption in 2023, revenue surged by 77.75% year-on-year, but the growth rate plummeted to 35.98% in 2024—nearly a 50% drop in speed. In the first eight months of 2025, revenue only grew from RMB 554 million to RMB 631 million, with the year-on-year growth rate further narrowing to 13.8%, indicating a significant weakening of growth momentum.

Furthermore,Lemo has fallen into the dilemma of "growing revenue without growing profit." As revenue growth declines in stages, a trend of profit contraction is also emerging. From 2022 to 2024, the company's profits were RMB 6.48 million, RMB 87.34 million, and **RMB 85.81 million**, respectively.

Despite continuous revenue growth,Lemo's profit began to decline in 2024. In the first eight months of 2025, the company's profit stood at RMB 88.55 million, representing a **5.7% decrease** compared to the same period of the previous year.

**Limited Industry Ceiling; Raised Funds Still Used for Scaling**

NewTimeSpace has learned that from 2022 to 2024,Lemo ranked first in the Chinese automated massage service market by transaction value for three consecutive years, with a market share reaching 42.9% in 2024. By revenue, it holds a market share of over 50%, making it the undisputed industry leader.

BehindLemo's slowing revenue and the lack of profit growth lies the continuous and high increase in its cost of sales.

Data shows thatLemo's cost of sales was RMB 245 million in 2022, increasing to RMB 342 million in 2023, a year-on-year rise of 39.6%. In 2024, it jumped directly to **RMB 510 million**, an increase of 49.1%, outpacing revenue growth for the first time. In the first eight months of 2025, the year-on-year increase in cost of sales remained at 22.6%, far higher than the revenue growth rate during the same period.

Driving these costs is the company's massive product deployment. Public data reveals that from 2022 to the first eight months of 2025, the total number ofLemo's massage units skyrocketed from 167,100 to **536,400**—more than tripling in four years. Units deployed in cinemas increased from 108,300 to 446,600, accounting for over 80% of the total equipment volume.

Notably,Lemo's scale expansion has not resulted in a corresponding increase in efficiency. Instead, it has continuously diluted the profit efficiency per unit. Data shows that the average daily transaction value per unit in cinemas fell from RMB 0.30 in 2023 to **RMB 0.11** in the first eight months of 2025.

Despite having secured its position as industry leader with nearly 540,000 massage chairs deployed in cinemas, shopping malls, and transportation hubs,Lemo still plans to allocate 60% of its **HK$182 million in net proceeds** to expand its service network. This "scale-first" path appears to offer a precarious contribution to the company's actual performance growth.

According to a Frost & Sullivan report, the market size of China's automated massage service was only RMB 2.7 billion in 2024, accounting for just 0.5% of the overall massage market. Even with expectations to grow to RMB 5.6 billion by 2029, the industry ceiling suggests limited room for growth, making it difficult to support large-scale, continuous expansion.

NewTimeSpace has noted that within the massage industry, two traditional listed massage equipment companies, Rotai Health and Ogawa, have successively divested or significantly downsized their shared massage chair businesses. This industry shakeout reflects the narrowing profit margins within this specific track.

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