LEMO Services Co., Ltd. released its unaudited 2026 interim results, showing modest top-line growth but lower profitability as network expansion lifted operating costs.

Revenue and Profitability • Revenue for the six months to 30 June 2026 rose 2.31 % year on year to RMB 443.06 million, driven by continued expansion of the company’s point-of-service (POS) network. • Gross profit edged down 1.24 % to RMB 142.12 million; overall gross margin contracted to 32.08 % from 33.23 % a year earlier, reflecting higher site-occupancy expenses. • Profit attributable to equity shareholders slipped 3.21 % to RMB 36.75 million; basic earnings per share declined to RMB 0.66 from RMB 0.76. • On a non-IFRS basis, adjusted net profit fell 17.55 % to RMB 38.89 million, mainly due to increased rental costs, higher R&D outlays and a RMB 5.74 million foreign-exchange loss.

Segment Performance • Direct-mode massage services contributed RMB 372.27 million, up 3.44 % and accounting for 84.02 % of total revenue. • Partner-mode services generated RMB 60.43 million, down 2.72 %; management cited reduced contractual fees and marketing support for local partners. • “Others” (household equipment sales, digital ads and equipment sales to partners) fell 6.41 % to RMB 10.37 million.

Operating Metrics • Total massage equipment in operation reached 548,738 units at 30 June 2026, a 1.72 % increase from end-2025. • The POS network expanded 5.28 % to 52,511 locations, covering all 31 mainland provincial-level regions plus Hong Kong and four overseas markets. Thailand led overseas operations with 384 POS.

Cost Structure • Cost of sales rose 4.08 % to RMB 300.94 million, as POS-related expenses climbed to 69.82 % of cost of sales (2025 interim: 65.11 %). • Selling and distribution expenses decreased 3.16 % to RMB 60.46 million, while administrative expenses fell 12.14 % to RMB 21.20 million. • R&D spending increased 19.31 % to RMB 12.81 million as the company expanded product-development projects.

Balance-Sheet and Cash Flow • Cash and cash equivalents stood at RMB 172.24 million, up from RMB 57.99 million a year earlier, supported by December 2025 IPO proceeds. • Net cash from operations improved 4.41 % to RMB 106.59 million. • Net cash used in investing activities widened to RMB 90.76 million, reflecting purchases of low-risk wealth-management products and fixed deposits. • All bank loans outstanding at end-2025 (RMB 54.53 million) were repaid during the period; total debt-to-equity ratio fell to 1.50 % (31 Dec 2025: 12.90 %). • Capital expenditure dropped 33.92 % to RMB 47.66 million.

Dividend No interim dividend was declared.

Outlook and Strategy Management will focus on six domestic priorities—ranging from partner enablement to AI applications and cost optimisation—while accelerating international expansion, particularly in Southeast Asia. Remaining IPO proceeds of HKD 1.16 billion (RMB 116.05 million) are earmarked for network growth, R&D, overseas localisation and brand enhancement, with full deployment targeted by end-2028.