Lemo Services Co., Ltd. released its unaudited 1H 2026 interim results, reporting revenue of RMB 443.06 million, up 2.31% year on year (YoY). Gross profit slipped 1.24% to RMB 142.12 million, with gross margin easing to 32.08% from 33.23%. Profit for the period declined 3.71% to RMB 36.56 million, and adjusted net profit—a non-IFRS measure excluding equity-settled share-based expenses—fell 17.55% to RMB 38.89 million.
The core Mechanical Massage Service contributed 97.66% of total revenue. Direct-Mode sales grew 3.44% to RMB 372.27 million, representing 84.02% of group turnover, driven by a wider network. Partner-Mode revenue slipped 2.72% to RMB 60.43 million as Lemo Services lowered contractual fees to support Local Partners. “Other” businesses, including household massage devices, digital advertising and equipment sales to partners, generated RMB 10.37 million, down 6.41% following the closure of offline massage centres in December 2025.
Cost of sales increased 4.07% to RMB 300.94 million, mainly due to higher POS site expenses. Selling and distribution costs improved 3.16% to RMB 60.46 million, and administrative expenses fell 12.14% to RMB 21.20 million, reflecting cost-control efforts and lower listing-related charges. Research and development outlays rose 19.31% to RMB 12.81 million as the company broadened its product pipeline.
Operating cash flow remained solid at RMB 106.59 million (1H 2025: RMB 102.09 million). Net cash used in investing activities expanded to RMB 90.76 million, reflecting higher purchases of wealth-management products and fixed deposits. Financing outflows of RMB 82.42 million were dominated by the full repayment of RMB 54.50 million in bank loans and a RMB 23.97 million dividend distribution. Consequently, cash and cash equivalents stood at RMB 172.24 million at period-end, up 197.05% YoY, supported by IPO proceeds raised in December 2025. The group ended the period debt-free, cutting its gearing ratio to 1.50% from 12.90% at end-2025.
Operationally, Lemo Services expanded its network to 52,511 POS (+5.28% versus end-2025), deploying 548,738 units of massage equipment, including 102,290 chairs and 446,448 cushions. Overseas development continued, with 384 POS in Thailand and early trials in Hong Kong, Indonesia, the Philippines and the United States.
Total assets amounted to RMB 689.17 million, with total equity at RMB 510.68 million. The board declared no interim dividend, citing upcoming investments and capital expenditure requirements. No material acquisitions, disposals or charges on assets occurred during the period, and IPO proceeds of HK$182.16 million remain earmarked—RMB 116.05 million unutilised—for network expansion, R&D and brand building through 2028.