New Stock Preview | Relying on the export of smart intercom devices to generate annual revenue of 300 million, how will Ruiyunlian break through the "bottleneck" of growth?

In recent years, with the rapid development of new generation information technologies such as 5G, IoT, and big data, the "East Wind" has provided a boost for the smart community that meets the new demands of the market, entering a phase of rapid expansion. In this context, the intelligent intercom system, which supports smart community management, improves emergency response mechanisms, and meets global elderly care policy requirements, has also experienced explosive growth. Data shows that due to the release of demand for new residential buildings and the smart transformation of existing communities, the global intercom market is expected to expand rapidly from $1.68 billion in 2020 to $2.71 billion in 2024, with a compound annual growth rate of 12.7% during this period. It is estimated that by 2029, the market size will increase to $3.93 billion. As the industry steadily grows, the major players in the market have also benefitted from the "dividend" of expansion. GMTEight noted that recently, Xiamen Ruiyunlian Innovative Technology Co., Ltd. (referred to as "Ruiyunlian") submitted an application for listing on the Hong Kong Stock Exchange. According to the prospectus, as of the end of September 2025, Ruiyunlian's global cumulative sales of smart community solutions are close to 2 million units. In terms of market position, based on the shipment volume in 2024, Ruiyunlian is already the largest smart intercom solution provider in North America and Europe. Established just over a decade ago, Ruiyunlian has a significant market influence, which is reflected in its financial statements showing continuous growth. Data shows that in 2024, Ruiyunlian's revenue increased by 26.8% to RMB 347 million, and in the first nine months of 2025, the company's revenue continued to grow by 21.6% to RMB 277 million. At the same time, Ruiyunlian's profitability data also improved, with the company's net profit reaching RMB 44.573 million in the first nine months of 2025, a nearly 60% increase compared to the same period last year. However, looking at the other side of the coin, while Ruiyunlian is close to achieving the position of an industry leader, its annual revenue has only just surpassed RMB 300 million, indicating that the company may still need more new growth points to continue moving forward. Performance Growing Steadily with Industry Trends It is important to note that intercom devices are not new products. Publicly available information shows that although intercom devices have existed for over sixty years, today's mainstream products still embed traditional functions, closed architecture, and proprietary protocols, making them difficult to integrate with smart systems. Currently, mainstream intercom systems differ significantly in terms of audio and video quality and communication stability, making cross-system integration difficult and costly. In recent years, an increasing number of new homes and commercial buildings worldwide are adopting AI-enabled smart intercom systems. At the same time, existing buildings still rely on analog or non-networked products that need to be upgraded or replaced. The large and unmet market demand provides ample growth opportunities for participants like Ruiyunlian. Ruiyunlian's history can be traced back to as early as 2012, and in 2016, the company introduced facial recognition technology into its doorphone products, gradually shifting its focus to providing smart intercom solutions. As an important gateway to smart living, Ruiyunlian currently offers smart community solutions driven by AI, covering four major scenes including residential, elderly care, commercial office, and community management. Breaking down the revenue structure, the majority of Ruiyunlian's revenue comes from smart intercom devices. From 2023 to the first nine months of 2025, the company's revenue from smart intercom devices was RMB 225 million, RMB 264 million, and RMB 199 million respectively, accounting for 82%, 76.1%, and 71.7% of the total revenue, indicating continuous growth but declining weight. During the same period, the contribution of smart home devices, access control devices, cloud services, and other products and services to Ruiyunlian's revenue has continued to strengthen. The data shows that the proportion of smart home devices increased from 2.2% in 2023 to 6.4% the following year, further rising to 7.6% in the first nine months of last year. Similarly, the proportion of revenue from access control devices increased from 2.3% in 2023 to 5.8% in the first nine months of 2025; and the proportion of revenue from cloud services increased from 1.2% to 4%. During the reporting period, Ruiyunlian also generated revenue from accessories, VoIP phones, and video phones. The changes in the business structure have also had an impact on Ruiyunlian's profitability. Data shows that from 2023 to the first nine months of 2025, the company's overall gross profit margin was 49.9%, 52.1%, and 50.7% respectively. In the first nine months of this year, the company's gross profit margin fell by 0.2 percentage points year-on-year in the same period. Breaking it down by business, the gross profit margin of smart intercom devices remained stable at around 53%; in the first nine months of 2025, the gross profit margin of smart home devices was 41.5%, down 1 percentage point year-on-year, compared to 43.9% in 2023. During the reporting period, the profitability of access control devices and cloud services rapidly increased, improving from 44.7% and -85.9% in 2023 to 56.6% and 35% in the first nine months of 2025. Leading in Shipments in Europe and America, Growth Bottlenecks to Solve From an industry perspective, the new generation of smart intercom systems is gradually breaking through the functional boundaries and system barriers of traditional intercom systems, evolving into a bridge for interconnection across scenarios, and transforming from a single tool into a gateway for smart homes and smart community ecosystems. Looking ahead, there are two expected new trends in the intercom industry: internally, integrating smart homes and expanding functionalities to unleash new growth potential is likely to be the future trend, with trends towards integration, diversification, and cloud services empowerment expected to strengthen; at the same time, extending into smart communities and exploring scenario value through interconnection is also expected to be a new significant growth point. The industry is at a critical historical window of transition from old to new, which for Ruiyunlian, presents both opportunities and inevitable challenges in this process. In terms of shipments, in 2024, Ruiyunlian's smart intercom products were the largest in shipments in North America and Europe. However, in terms of revenue in the same period, Ruiyunlian ranks only second in the North American market and third in Europe. This suggests that Ruiyunlian may have adopted a more competitive pricing strategy to quickly gain market share, but there is still significant room for improvement in terms of single customer revenue. Additionally, recognizing the new trends in the industry, Ruiyunlian is actively seeking change. According to the prospectus, Ruiyunlian plans to continue expanding its product range, including fall detection radar and companion Siasun Robot & Automation, aiming to develop products that can change the industry's conventional mode. At the same time, the company also plans to focus on promising fields such as elderly care, providing comprehensive scenario-based solutions. In terms of specific market strategies, in addition to adhering to a global strategy, Ruiyunlian also plans to focus on expanding into emerging markets. According to the company, targeting the relatively low penetration rates in the Middle East and Southeast Asia, Ruiyunlian plans to use mainstream sales channels to build brand awareness and accelerate market penetration. With Ruiyunlian's push for a listing on the Hong Kong stock market, considering Hong Kong's special status and advantages as an international financial center, if successful, it is expected to provide momentum for the company's next stage of development. However, on the other hand, going public also means that Ruiyunlian will be under the spotlight of the capital market, and the company's sustainability and true "value" will face stricter scrutiny. As a growing company with only slightly over RMB 300 million in annual revenue and profits not exceeding RMB 100 million, Ruiyunlian will need to prove to the market that it is a "growth stock," which probably means that the company will need to cultivate new strong growth points beyond smart intercom devices.