IPO Outlook | With Annual Revenue of 300 Million from Exporting Smart Intercom Devices, What Will Ruiyunlian Use to Break Through Its Growth 'Bottleneck'?

In recent years, thanks to the rapid development of next-generation information technologies such as 5G, the Internet of Things (IoT), and big data, smart communities that meet new market demands have entered a phase of rapid expansion. Within this context, intelligent intercom systems—which support smart community management, improve emergency response mechanisms, and align with global elderly care policies—have experienced explosive growth. Data shows that due to the release of demand for new residential buildings and the intelligent renovation of existing communities, the global intercom market size expanded rapidly from $1.68 billion in 2020 to $2.71 billion in 2024, reflecting a compound annual growth rate (CAGR) of 12.7% during this period. By 2029, the market is expected to grow to $3.93 billion.

As the industry grows steadily, major players in the market are also sharing in the 'dividends' of scale expansion. Zhitong Finance noted that Xiamen Ruiyunlian Innovation Technology Co., Ltd. (hereinafter referred to as 'Ruiyunlian') recently submitted its listing application to the Hong Kong Stock Exchange. According to the prospectus, as of the end of September 2025, the cumulative global sales volume of Ruiyunlian’s smart community solutions has approached two million units. In terms of market position, based on 2024 shipment volumes, Ruiyunlian has become the largest provider of smart intercom solutions in North America and Europe.

Although Ruiyunlian was established just over a decade ago, its market influence is already quite significant, which is reflected in its financial statements showing continuous growth in core financial data. The data shows that in 2024, Ruiyunlian's revenue increased by 26.8% year-on-year to 347 million yuan, and for the first nine months of 2025, the company’s revenue continued to grow by 21.6% year-on-year to 277 million yuan. Meanwhile, Ruiyunlian's profitability figures also improved: for the first nine months of 2025, the company’s net profit reached 44.573 million yuan, growing nearly 60% year-on-year. However, looking at the 'other side of the coin,' it is not hard to see that despite being among the top players in the industry, Ruiyunlian's annual revenue has only just exceeded 300 million yuan, suggesting that if the company wants to advance further, it will need more new growth drivers to 'take the baton.'

Performance Grows Robustly Riding the Industry 'Tailwinds'

First, it should be noted that intercom devices are not a new phenomenon. Public information indicates that although intercom devices have existed for over sixty years, mainstream products today still embed traditional functions, closed architectures, and proprietary protocols, making it difficult for them to achieve interoperability with smart systems. Currently, there are significant differences in audio-video quality and communication stability among mainstream intercoms; cross-system integration is challenging and costly. In recent years, an increasing number of new residential and commercial buildings worldwide have been adopting AI-powered smart intercoms. Meanwhile, existing buildings still rely on analog or non-networked products that require upgrading or replacement.

The vast and long-unmet market demand provides broad growth space for participants in the market like Raycloud. According to reports, Raycloud's history can be traced back to 2012. In 2016, it introduced facial recognition technology into its entrance intercom products, and since then, the company has gradually shifted its focus to providing smart intercom solutions. As a key entry point for smart living, Raycloud currently offers AI-driven smart community solutions covering four major scenarios: residential, elderly care, commercial office, and unified community management.

Breaking down the revenue structure, the vast majority of Raycloud’s income comes from smart intercom devices. From 2023 to the first nine months of 2025, the company's revenue from smart intercom devices was 225 million yuan, 264 million yuan, and 199 million yuan respectively, accounting for 82%, 76.1%, and 71.7% of total revenue. Although revenue continued to grow, its proportion declined steadily.

During the same period, the revenue contribution of Raycloud's smart home devices, access control equipment, and cloud services continued to increase. Data shows that the share of smart home devices expanded from 2.2% in 2023 to 6.4% the following year, and this figure further increased to 7.6% in the first nine months of last year. Similarly, the revenue share of access control equipment increased from 2.3% in 2023 to 5.8% in the first nine months of 2025; the revenue share of cloud services increased from 1.2% to 4%. During the reporting period, Raycloud also generated some revenue from accessories, VoIP phones, and video phones.

Changes in the business structure have also had a certain impact on Raycloud's profitability. Data shows that from 2023 to the first nine months of 2025, the company's overall gross margin was 49.9%, 52.1%, and 50.7%, respectively. In the first nine months of this year, the overall gross margin decreased by 0.2 percentage points on a year-over-year basis.

Looking at the businesses separately, the gross margin of smart intercom devices remained stable at around 53%; in the first nine months of 2025, the gross margin of smart home devices was 41.5%, a decrease of 1 percentage point year-over-year, while the gross margin for this business in 2023 was 43.9%. During the reporting period, the profitability of access control equipment and cloud services improved rapidly, increasing from 44.7% and -85.9% in 2023 to 56.6% and 35% respectively in the first nine months of 2025.

Leading in shipments in Europe and America, but facing growth bottlenecks

From an industry perspective, the new generation of smart intercom systems is gradually breaking the functional boundaries and system barriers of traditional intercom systems, becoming a bridge for cross-scenario connectivity, evolving from a single tool into a smart home entry point and a smart community ecosystem entry point.

Looking ahead, two new trends are expected in the intercom industry: internally, integrating smart home systems and unleashing new growth potential through functional expansion is likely to be the general trend, with integration, diversification, and cloud service empowerment trends expected to strengthen. At the same time, expanding outward to smart communities and exploring scenario value through interconnectivity is also expected to become a significant growth driver.

The industry is at a critical historical juncture of transition, which presents both opportunities and new challenges for Raycloud. In terms of shipment volume, Raycloud ranked first in North America and Europe in 2024 for its smart intercom products. However, when measured by revenue, Raycloud ranked only second in the North American market and third in Europe during the same period. This suggests that Raycloud may have adopted a more competitive pricing strategy to quickly gain market share, but the company still has significant room to optimize revenue per customer.

Additionally, aligning with emerging industry trends, Raycloud is actively seeking change. According to the prospectus, Raycloud plans to continuously expand its product range, including fall detection radar and companion robots, aiming to develop products that can transform industry norms. Meanwhile, the company also plans to focus on promising areas such as elderly care, offering comprehensive scenario-based solutions.

In terms of specific market strategies, in addition to adhering to its global strategy, Ruiyun Lian plans to focus on expanding into emerging markets. According to the company, for regions like the Middle East and Southeast Asia where penetration is currently relatively low, Ruiyun Lian intends to first leverage mainstream sales channels to build brand awareness and accelerate market entry and penetration.

Ruiyun Lian's push for a listing on the Hong Kong stock exchange takes into account the special status and advantages of Hong Kong as an important international financial center. If successful, this would undoubtedly provide a boost for the next phase of the company’s development. However, on the other hand, going public also means that Ruiyun Lian will be under the spotlight of the capital markets, with its growth sustainability and true 'value' facing stricter scrutiny. As a growing enterprise with annual revenue of just over 300 million yuan and profits yet to break 100 million, Ruiyun Lian still needs to prove to the market that it is a 'potential stock.' This likely means the company needs to develop new strong growth drivers beyond smart intercom devices.

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