Core Insights - The smart home industry is entering a rapid development phase, with China's market expected to reach approximately 784.8 billion yuan in 2024 and surpass 800 billion yuan in 2025 [2] Group 1: Industry Growth and Support - The Ministry of Industry and Information Technology, along with five other departments, has introduced a plan to enhance the adaptability of consumer goods supply and demand, designating smart home technology as a new area for development [2] - The focus is on promoting the transition from smart individual products to fully integrated smart home solutions, creating an immersive and interconnected smart living experience [2] Group 2: Technological Advancements - Current smart home products are evolving towards a model of "perception + reasoning, decision + execution," integrating new technologies such as large models, cloud services, and artificial intelligence [3] - The proactive health air solution by Huawei exemplifies the shift towards smart homes that can autonomously monitor and adjust environmental conditions based on real-time data [3] Group 3: Market Potential and Consumer Insights - The complete supply chain in China's smart home industry supports robust production capabilities, meeting both domestic and global market demands [4] - Despite the growing popularity of smart homes, over 60% of users lack a systematic understanding of whole-home smart solutions, indicating significant market potential and unmet consumer needs [4] Group 4: Future Developments - Future smart home technologies are expected to enhance both proactive intelligence and service intelligence, creating a seamless experience that integrates hardware, software, and services [5] - Innovations will focus on specific scenarios such as elderly care, personal health management, and energy management, extending functionality beyond basic needs [5]

The Stock Exchange of Hong Kong Limited and the Securities and Futures Commission take no responsibility for the contents of this application proof, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this application proof. Application Proof of Shenzhen SDMC Technology Co., Ltd. 深圳市華曦達科技股份有限公司 (the "Company") (a joint stock company incorporated in the People ...

Core Insights - The Chinese whole-home smart industry is experiencing a growth trend in revenue, with a projected revenue of 211.85 billion in 2024, reflecting a growth rate of 10.6% [1] - The industry's sales gross margin shows a fluctuating trend, peaking at 34.8% in 2023 before declining to 33.5% in 2024 [2] - Inventory turnover rates are on a downward trend, decreasing from 5.14 times in 2020 to 4.64 times in 2024, attributed to changing consumer demands and rapid product updates [6] - Accounts receivable turnover rates have also shown a declining trend, from 17.53 times in 2020 to 15.23 times in 2024, indicating increasing management pressure [9] - The asset-liability ratio has fluctuated, decreasing to a low of 42.1% in 2022, then rising to 44.4% in the first half of 2025, reflecting dynamic adjustments in capital structure [11] Revenue Trends - The average revenue of representative companies in the Chinese whole-home smart industry is expected to grow significantly, reaching 211.85 billion in 2024, with a notable increase in the first half of 2025 at 116.69 billion [1] Profitability Analysis - The sales gross margin for the industry has shown volatility, starting at 33.9% in 2020, dropping to 32.2% in 2021, and then rising to 34.8% in 2023 before falling to 33.5% in 2024 [2] Inventory Management - The inventory turnover rate has decreased from 5.14 times in 2020 to 4.64 times in 2024, influenced by diverse consumer preferences and concerns over product depreciation [6] Accounts Receivable Management - The accounts receivable turnover rate has declined from 17.53 times in 2020 to 15.23 times in 2024, reflecting increased challenges in managing receivables [9] Capital Structure - The asset-liability ratio has shown a downward trend to 42.1% in 2022, followed by a rise to 44.4% in the first half of 2025, indicating changes in the industry's capital structure [11]

Core Insights - The DL50FVS has won the 2025 Asian Export Awards, highlighting its exceptional self-reliant manufacturing capabilities in the smart lock industry [1][3] - EZVIZ's end-to-end manufacturing ecosystem played a crucial role in the DL50FVS's success, showcasing its engineering depth, production resilience, and international scalability [3][4] - The DL50FVS features advanced AI-powered facial recognition and multiple access methods, enhancing security and convenience for modern households [4] Company Highlights - EZVIZ's vertically integrated R&D and production system is a key factor in achieving high-quality manufacturing and innovation [1][3] - The company emphasizes the importance of full self-manufacturing to ensure product consistency and security [4] - The DL50FVS serves as a flagship product, redefining front-door security with advanced technology and user-friendly features [4] Industry Context - The Asian Export Awards serve as a significant indicator of industrial strength in Asia, recognizing products that demonstrate global readiness [3] - The criteria for this year's awards were particularly stringent, focusing on engineering, production, and scalability, which the DL50FVS met successfully [3]

Core Insights - Baidu and Haier Smart Home have announced a comprehensive official strategic partnership during the 2025 Baidu World Conference [2] - Baidu will open its latest upgraded Super Xiaodu AI capabilities to Haier and other industry partners to create a more humanized and convenient experience [2] Summary by Categories Partnership Details - The collaboration between Baidu and Haier will focus on three main areas: full interconnectivity, product information deployment, and mutual cooperation in technology [2]

Financial Data and Key Metrics Changes - The company reported record revenue of $24 million in Q3 2025, an increase from $23 million in Q2 2025, marking seven consecutive quarters of revenue growth from Q1 2024 to Q3 2025 [4][10] - Gross profit for Q3 2025 increased sequentially by 8% to $8 million compared to $7 million in Q2 2025 [12] - Gross margin for Q3 2025 increased to 32%, up from 30% in Q2 2025 [14] - Net loss per share decreased to $0.07 in Q3 from $0.08 in Q2 2025, while adjusted EBITDA loss per share remained at $0.02 [14] Business Line Data and Key Metrics Changes - The company anticipates deploying over 50,000 units of its products into homes and hotel rooms by the end of Q4 2025, with significant contributions from various projects [5][6] - A major collaboration with a $3 billion mixed-use urban Smart Home City Project in Miami is expected to involve over 500,000 units of advanced smart home technologies [5] - The company is also supplying technologies to a 278-apartment project in Austin, Texas, providing over 10,000 units of its advanced technologies [5] Market Data and Key Metrics Changes - The company has signed an agreement with a prominent U.S. and international real estate developer to deploy advanced smart home technologies in Middle Eastern projects, including Saudi Arabia and Egypt [4][5] - The company is experiencing growth in deferred revenue, indicating an acceleration of revenues primarily from its e-commerce platform [11] Company Strategy and Development Direction - The company is focused on expanding its market penetration through strategic partnerships and collaborations, particularly in the real estate and hotel segments [4][5][15] - The introduction of AI-driven software for its e-commerce platform is expected to increase conversion rates and sales by 30% [7][34] - The company is leveraging a "Razor and Blade" model, where the ceiling receptacle serves as the entry point for higher-ticket items, enhancing revenue potential [29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth opportunities, particularly in the Middle East and through collaborations with major developers [15][19] - The company is making significant progress towards mandatory safety standardization for its products, which is expected to enhance market acceptance and safety [17][53] - Management highlighted the importance of cash conservation and leveraging relationships with manufacturers to support operations [12][17] Other Important Information - The company raised $5 million in additional capital from leading shareholders, reflecting confidence in its strategy and development [8][10] - As of September 30, 2025, the company reported a total of $13 million in cash, cash equivalents, restricted cash, and receivables [7] Q&A Session Summary Question: Can you provide insight into the near-term revenue outlook and product deployment? - The company expects to deploy over 50,000 products by the end of Q4, with a mix of higher-ticket items contributing to revenue growth [28][29] Question: What specifics can you share about the software upgrade and its impact on revenue? - The software upgrade is expected to be completed by Q1 or Q2 of 2026, aiming to increase conversion rates through AI methods [33][34] Question: What is the status of various projects, including the Marriott Hotel and Miami Smart City? - The Marriott demo has opened doors for more business, while the Miami project is still in the permitting phase, with significant supply expected in 2026 [36][56] Question: How does the company view the Middle East opportunity? - The Middle East is seen as a fast adopter of advanced technologies, with significant growth potential in commercial and residential developments [59][60]

Core Insights - EZVIZ is actively participating in the Singles' Day Sale, offering significant discounts on smart home products from November 7 to 13, 2025, across Amazon MENA and Noon [1] - The product lineup includes various smart home innovations aimed at enhancing household safety and convenience, catering to the growing demand for smart living solutions [2] Product Highlights - The C6N Smart Wi-Fi Camera provides comprehensive room coverage with features like intelligent motion tracking and night vision, allowing users to monitor their homes remotely [3] - The Y2000 Fingerprint Smart Lock offers advanced security with fingerprint unlocking and remote control via the EZVIZ App, integrating seamlessly with the C6N camera for enhanced access management [4] - The DL50 Face Recognition Smart Lock features multiple unlocking methods, including mobile app and traditional key, providing flexibility and security for modern households [5] - The CP7 Video Doorphone enables clear communication with visitors and can be paired with EZVIZ smart locks for remote access management, enhancing convenience and security [6] Market Position - EZVIZ is positioned as a leader in smart home security and lifestyle solutions, focusing on innovation and quality to meet the needs of families in the MENA region [7]

Core Insights - The importance of smart locks in home security is emphasized, with Huawei leading in the high-end segment of the market [1][3] - Huawei's smart lock 2 Pro is highlighted for its advanced technology and user experience, particularly in the context of safety and convenience [3][7] Market Position - According to data from AVC, Huawei ranks first in sales within the price segment above 3000 yuan, indicating strong market acceptance [1] - The smart lock 2 Pro is noted for its top sales performance among individual products priced above 3000 yuan, showcasing Huawei's technological strength [1] Technology and Features - The smart lock utilizes AI palm vein recognition and AI 3D facial recognition 3.0, providing a high level of security and user convenience [3][5] - The palm vein recognition technology is highlighted for its inability to be replicated, addressing common issues with fingerprint recognition [5] - The AI 3D facial recognition system allows for quick and reliable identification in various lighting conditions, enhancing user experience [5][6] User Experience - The upgraded smart peephole with 2K resolution addresses traditional peephole limitations, allowing users to monitor unusual activity outside their door [5][6] - The system includes a dual confirmation mechanism for unlocking, enhancing security through multi-device coordination and proactive alerts [6] Industry Implications - Huawei's success in the smart lock market illustrates the importance of aligning cutting-edge technology with actual user needs [7] - The evolution of smart locks is seen as a shift towards becoming central to home security, integrating social and familial aspects into their functionality [7] - The commitment to user safety remains a fundamental principle in the development of smart locks, with Huawei positioned as a leader in this regard [7]

Core Insights - Midea Group is actively pursuing a whole-home smart strategy and is open to interoperability with competitors like Gree Electric and Haier [1] - The company acknowledges the rapid development of unified smart home protocols internationally, led by companies like Apple, Google, and Amazon, while noting challenges in the domestic market [1] - Midea has joined a domestic alliance aimed at creating a smart home interoperability protocol, which includes other major players like Haier and Hisense [1] Group 1 - Midea's General Manager of Whole-Home Intelligence, Shang Zhe, expressed optimism about the potential for collaboration with other manufacturers in the smart home sector [1] - The company has been actively engaging in discussions with other firms regarding smart home interoperability [1] - The Ministry of Industry and Information Technology in China is leading efforts to establish a domestic smart home interoperability protocol, with Midea participating in this initiative [1] Group 2 - The current development of smart home systems in China faces various challenges, despite the ongoing efforts to unify standards [1] - Midea's involvement in the alliance indicates a commitment to advancing smart home technology and addressing interoperability issues [1] - Shang Zhe believes that while significant progress may take time, the trend towards interoperability in the smart home industry is inevitable [1]

Core Insights - Aqara Space's flagship store in Chongqing opened on October 28, marking a significant step in the brand's strategic expansion in the southwest region, featuring a nearly 500 square meter immersive experience space that integrates smart technology with aesthetic design [1][3] Group 1: Strategic Expansion - The opening of the Chongqing flagship store is a key milestone in Aqara's national strategic layout and demonstrates the company's commitment to deepening its regional market presence and leading industry innovation [3][11] - The store integrates various scenarios including home, office, wellness, hotel, and real estate, catering to both B2B and B2C user needs with innovative smart space solutions [3] Group 2: Technological Innovation - Aqara has applied for over 1,800 patents covering critical technologies such as wireless networks, AI algorithms, and low-power sensors, with more than 50 self-developed product categories and over 1,700 SKUs, solidifying its position as an industry leader [5] - The company actively builds an open ecosystem, fully compatible with major platforms like Apple Home, Xiaomi Mi Home, Amazon Alexa, and Samsung SmartThings, with over 310 products connected to Apple Home, making it the brand with the most devices integrated into Apple Home in China [7] Group 3: Brand Vision and User Engagement - The opening ceremony featured a blend of high-tech performances and traditional lion dance, symbolizing the fusion of technology and culture, with speeches from the store manager and brand representatives sharing Aqara's vision of empowering spaces through technology [9] - The flagship store's launch represents a significant upgrade in channels and reflects Aqara's ongoing efforts to stay close to users and drive industry transformation, with plans to continue leveraging technology to deepen ecosystem cooperation and expand nationwide [11]