Lemo Services (2539) investor relations material

Executive summary

• H1 revenue rose 2.31% YoY to RMB443.06m; adjusted net profit fell 17.55% to RMB38.89m amid higher POS occupancy costs, R&D spending and FX losses.

• Operating cash inflow was RMB106.59m; POS count grew 5.28% from year-end 2025 to 52,511, with 548,738 massage equipment units at period-end.

Financial highlights

• Revenue was RMB443.06m versus RMB433.07m; gross profit fell 1.24% to RMB142.12m from RMB143.91m.

• Gross margin declined to 32.08% from 33.23%, mainly due to higher POS site occupancy costs during expansion; cost of sales rose 4.07% to RMB300.94m.

• Reported profit for the period was RMB36.56m, down 3.71%; profit attributable to equity shareholders was RMB36.75m versus RMB37.97m.

• Adjusted net profit, excluding share-based payment and listing expenses, was RMB38.89m versus RMB47.17m; operating profit was RMB45.31m and profit before tax RMB44.84m.

Outlook and guidance

• Domestic priorities include AI adoption, R&D and manufacturing upgrades, higher-value POS scenarios, stronger partner and direct-operation capabilities, user engagement and cost efficiency; no numerical financial guidance was stated.

• Internationalization plans emphasize Southeast Asia and other markets, with dedicated overseas teams and localized operations and supply chains; overseas POS expansion is underway.

• Remaining IPO proceeds of RMB116.05m were expected to be used by 31 December 2028, subject to market conditions, policies and suitable investment opportunities.