We are a provider of smart home products for enterprise customers, focused on enhancing home applications through intelligent technologies. The smart home products we offer include both hardware and software products. During the Track Record Period, our revenue was mainly generated from sales of hardware products, namely our digital video devices and network communication devices. Smart home products refer to an integrated home ecosystem that connects and manages various smart devices across the household, enabling whole-home network coverage and device interaction. Different from smart home product providers who sell self-branded products directly to consumers, we, as a provider of smart home products for enterprise customers, develop and sell digital video devices and network communication devices with our customers’ brands, and provide system platforms and services, to enterprise customers. Our solutions allow users to control their home with ease leveraging the application of cloud, IoT and AI technologies, through our digital video devices, such as media streaming terminals, speakers, projectors, and cameras, network communication devices, such as optical network terminals, Wi-Fi routers, and cable modems, and system platforms, such as Cedar, XHome and XMediaTV. According to Frost & Sullivan, we are the eighth largest provider globally, and the third largest among Chinese Mainland-based providers, in the global smart home product for enterprise customers market in terms of revenue in 2024, with a market share of 2.7%. In terms of market size in 2024, the global enterprise smart home product market accounts for approximately 14.7% of the entire global smart home product market.
Founded in 2003 by entrepreneur Mr. Li Bo, our odyssey commenced with the development and sales of cryptographic chips. In the years that followed, we set foot in digital TV modules and TV dongles. In 2012, we launched AOSP-based digital video solutions, and started partnering with overseas telecom operators. As a testament to our technical capabilities, we became one of the first companies in China to secure a Google Android TV certification in 2017 and the first ODM company worldwide to secure a Google TV projector certification in 2023, which proved our technological capability and fostered the development of projectors with copyright content in overseas markets, and brought us business opportunities to establish cooperation with Google TV projector brand owners. Per Frost & Sullivan, we are the world’s largest Android TV smart terminal supplier measured by sales volume in 2024.
Capitalizing on our expertise in digital video devices, we have strategically expanded into system platforms and network communication businesses. In 2017, we launched XMediaTV, a media streaming platform, followed by a full-scale penetration into network infrastructure starting in 2020 offering carrier-grade Wi-Fi routers, optical network terminals (ONTs), and cable modems. The same year saw the launch of XHome, a home device management platform, reinforcing our expertise in hardware-software integration.
The emergence and maturing of AI has driven the shift from “smart home” to “AI Home” — a transition from passive responsiveness to proactive services, enhancing convenience, energy efficiency, security, health management and cross-device synergy with intelligent, personalized and automated technologies. Meanwhile, Matter has become a major standard for smart home devices that enable greater interoperability across different ecosystems. In 2024, penetration rate of Matter globally has reached approximately 30%, and is expected to further increase to 50% by 2030.
To address this trend, we have accelerated the development of our products. Our network communication and digital video devices have been upgraded with features such as Matter connectivity, edge computing and environment sensing. In 2024, we introduced Cedar, a home agent supported by third-party large language models. Cedar has completed its research and development and is ready for mass production. As of the Latest Practicable Date, Cedar is in the customer testing and commercialization stage, where we provide samples or solution prototypes to potential customers for functional testing and scenario adaptation, which forms part of our standard market introduction process rather than the research and development phase. We are currently in business discussions with certain telecom operators, and expect Cedar to begin generating revenue in the fourth quarter of 2026. We collaborate with OEM partners to develop Matter-compliant IoT devices and work with telecom operators to support smart home deployments, enabling us to provide integrated smart home products combining hardware and software. Leveraging third-party large language models, we have developed application features for smart home scenarios, and Cedar supports functions such as visual recognition, semantic understanding and natural language interaction, enabling users to analyze images captured by devices and control home appliances through voice or text commands. We have adapted these models to better suit home environments and integrated them with our XHome platform, allowing coordinated device management and control within a unified system.
Driven by technological innovation and evolving user demands, the global digital and intelligent home solutions market is undergoing a profound transformation — from digital home to smart home. According to Frost & Sullivan, the global smart home products market has surged from US$53.5 billion in 2020 to US$88.6 billion in 2024, with a CAGR of 13.4% from 2020 to 2024. Propelled by continuous function enrichment and performance improvement of smart home hardware combined with escalating consumer demand for higher-configuration smart home terminals and advanced networking solutions, the global smart home products market is projected to reach US$238.2 billion in 2029, representing a CAGR of 21.9% from 2024 to 2029. During the Track Record Period, we primarily sold smart home products and solutions, which accounted for 75.3%, 73.6% and 80.8% of our total revenue for 2023, 2024 and 2025, respectively.
Our ecosystem is composed of system platforms, network communication devices, digital video devices, and an open-ended device matrix that can connect with foreign devices, together forming an open ecosystem. This open ecosystem seamlessly integrates software and hardware and enables autonomous perception, learning and interaction.
‧ Software: Our system platforms comprise our Home AI agent Cedar, our media streaming platform XMediaTV and our home device management platform XHome. Leveraging Gemini, Cedar serves as a cognitive decision-making nucleus that analyzes and processes data, executes high-precision intent recognition, and issues context-aware action commands via XMediaTV and XHome. These system platforms together control various connected devices to address user needs in different application scenarios.
‧ Hardware: Our network communication devices, encompassing Wi-Fi routers, ONTs and cable modems, ensures high-speed, ultra-stable whole-home Internet coverage. Our digital video devices include media streaming t e r m i n a l s, projectors, cameras and AI speaker. In addition, as of the Latest Practicable Date, we had other AI-powered products in the pipeline such as robots, AI glasses, AI photo frame and AI computing box designed for users’ entertainment and companionship. With edge computing, environment sensing and Matter compatibility, our hardware products function as home hubs.
‧ Open ecosystem: Our home ecosystem features an open ecosystem built on Matter protocol. It offers cross-ecosystem, cross-brand interoperability, which brings multi-vendor devices under our single management and automation umbrella, allowing open-ended device scalability. The integration of diverse Matter-compliant devices further improves our smart home application scenarios and enriches user experience.
In this ecosystem, system platforms undertake data analysis, reasoning and decision-making, and dispatch commands to digital video devices and network communication devices. Our digital video devices and network communication devices, as home hubs, integrating the Matter protocol, can thus relay the commands to other Matter-compliant devices. Digital video devices, network communication devices, and other Matter-compliant devices in return feed user and environmental data back to system platforms for iterative learning and further analysis. This way, users, environment and devices are interconnected and smart home living experience with autonomous perception, learning, and interaction are delivered.
Source: SDMC Tech (00901) Prospectus (IPO Date : 2026/05/18) |