IPO News | "Smart Home Product Provider" Huaxida Launches Bookbuilding, Aiming for Listing on May 27, with a Minimum Subscription Amount of HKD 3,313.08

Futu News reported on May 18 that$SDMC (00901.HK)$The company announced the offering from May 18 to May 21, with a plan to globally distribute approximately 19,207,300 shares. The listing is expected to occur on May 27.

Company Overview

The company is a smart home product provider targeting enterprise clients, committed to enhancing home application experiences through intelligent technology. Its smart home offerings include both hardware and software products. During the performance record period, the majority of its revenue came from selling hardware products, specifically digital video equipment and network communication devices. Smart home products refer to an integrated home ecosystem that connects and manages all smart devices in the house, enabling full-home network coverage and device interaction.

Unlike smart home providers that sell their own branded products directly to consumers, this company targets enterprise customers. It develops and sells digital video equipment and network communication devices under customer brands while also providing system platforms and services.

Financial Summary

In 2023, 2024, and 2025, the company recorded revenues of RMB 2,366.9 million, RMB 2,540.9 million, and RMB 3,367.7 million, respectively; gross profits were RMB 500.5 million, RMB 482.9 million, and RMB 656.1 million for the respective years. In 2023, 2024, and 2025, the company’s overall gross profit margins were 21.1%, 19.0%, and 19.5%, respectively.

Use of Proceeds

In terms of the use of proceeds, Xavis is expected to raise approximately HKD 5.7 billion in net proceeds from the global offering (assuming the over-allotment option is not exercised and based on an offer price of HKD 32.8). According to the prospectus, Xavis plans to allocate the proceeds from the global offering for the following purposes:

Approximately 25% of the net proceeds will be used over the next three years to enhance the company's market position and develop new products; approximately 35% of the net proceeds will be allocated over the next three years to applying AI technology in home scenarios; approximately 20% of the net proceeds will be used for global expansion over the next three years; approximately 10% of the net proceeds will be allocated to investing in peer market participants or upstream and downstream market participants with strong potential in areas such as (but not limited to) artificial intelligence and algorithms; and approximately 10% of the net proceeds will be used as working capital and for general corporate purposes.