SDMC (00901) will open its initial public offering for subscription from May 18 to May 21, 2026. The company plans a global offering of 19.2073 million H shares, with the Hong Kong public offering comprising 10% (subject to reallocation) and the international offering comprising 90% (subject to reallocation). The offer price has been set at HK$32.80 per share, with a board lot size of 100 shares. The H shares are expected to commence trading on the Stock Exchange on May 27, 2026.

The company is a provider of smart home products for enterprise customers, dedicated to enhancing the home application experience through intelligent technology. Its smart home product portfolio includes both hardware and software products. During the track record period, the company's revenue was primarily derived from the sale of hardware products, namely digital video equipment and network communication equipment.

Annual profit decreased from RMB 191 million in 2023 to RMB 137 million in 2024, primarily due to a reduction in gross profit coupled with increased sales and marketing expenses, administrative expenses, and research and development costs. Compared to 2024, profit in 2025 increased from RMB 137 million to RMB 239 million, mainly attributable to revenue growth, effective management of costs and expenses, and the recovery of long-outstanding trade receivables. The company's net profit margins for 2023, 2024, and 2025 were 8.1%, 5.4%, and 7.1%, respectively.

Based on the offer price of HK$32.80 per share, and after deducting underwriting commissions and estimated expenses payable by the company for the global offering, and assuming the over-allotment option is not exercised, the company estimates it will receive net proceeds of approximately HK$570 million from the global offering. Aligning with its strategy, the company intends to allocate the net proceeds over the next 3 to 4 years for the following purposes: approximately 25% will be used to enhance its market position and develop new products over the next three years; approximately 35% will be allocated to investing in AI technology applications for home scenarios over the next three years; approximately 20% will be used for global expansion over the next three years; approximately 10% will be used for investments in industry peers or upstream/downstream market participants with strong potential, including but not limited to those in the artificial intelligence and algorithm fields; and approximately 10% will serve as working capital and for general corporate purposes.