HK Stock Market Move | LEMO SERVICES (02539) Afternoon decline expanded by nearly 10%, stock price hit a new low since listing.

LEMO SERVICES (02539) fell nearly 10% in the afternoon, hitting a new low of 46 Hong Kong dollars during the trading day. As of press time, it has fallen by 9.8%, trading at 46 Hong Kong dollars, with a turnover of 141.37 million Hong Kong dollars. LEMO SERVICES is a machine massage service provider that launched the "LEMOba" brand in 2016, providing consumers with machine massage services in commercial complexes, cinemas, transportation hubs (including airports, high-speed rail stations, etc.) and other consumer scenarios. According to Frost & Sullivan data, in the three consecutive years from 2022 to 2024, the company ranked first among all machine massage service providers in mainland China in terms of transaction volume, with market shares of 33.9%, 37.3%, and 42.9% respectively. In terms of revenue, in 2024, the company also ranked first in the mainland machine massage market, with a market share exceeding 50%. According to the prospectus, the daily average transaction volume per massage device of LEMO SERVICES decreased from 2.95 transactions in 2023 to 2.04 transactions in 2024. LEMO SERVICES attributed this decrease to a significant increase in the number of massage devices in 2024 compared to 2023, resulting in the dilution of the transaction volume per massage device. Additionally, new installed devices need to go through a ramp-up period before reaching normal utilization levels.