Recently, the release of an announcement by Cathay Haitong Securities has once again attracted the industry’s attention to Ruimai Technology.
The announcement mentioned that Ruimai Technology Co., Ltd. plans to apply for listing on the Beijing Stock Exchange, and Cathay Haitong will serve as a coaching institution to carry out coaching work as required.
After counseling, the agency believes that Ruimai has the corporate governance structure, basic accounting work, and internal control system required to become a listed company, and fully understands the characteristics and attributes of each sector of the multi-level capital market.
A few days ago, another announcement from Ruimai stated that the board of directors had unanimously reviewed and approved the overall plan for public issuance of stocks and listing on the North Exchange, clarifying core terms such as fund-raising investment direction, issuance scale, and pricing mechanism. The North Exchange IPO has entered the critical stage of shareholder meeting review.
Perhaps this means that Ruimai has taken another small step forward on the road to listing.
Who is Ruimai?
A company that makes functional iron frames and linear drive systems, serving clients such as functional sofas and electric beds, it is a force behind the scenes in the home furnishing industry.
What is admirable is that this company’s revenue in 2025 has reached 2.251 billion yuan, and the net profit attributable to the parent company is approximately 186 million yuan.
This is not an accidental result. In 2024, Ruimai’s revenue will exceed 2.3 billion yuan.
To understand Ruimai, there may be two pieces of information worth noting.
The first is the business scope, functional iron frame + linear drive system, supporting functional sofas and health care electric bed manufacturers, providing a complete set of electromechanical integration solutions.
Among them, the functional iron frame is a metal frame system that achieves mechanical extension, which can realize posture changes of the overall structure (functional sofa, electric bed, etc.).
In addition to Ruimai, Lin’s Home Furnishing has also mentioned the No. 0 functional rack technology platform, which is used in new seasonal products and has functions such as 0 wall support, 0 gravity, 0 gaps, 0 back rubbing, and true high legs.
Gujia Home Furnishing also has information that it has self-developed functional iron frame technology platform, zero wall design, true high-foot design, etc.
The linear drive system achieves the effects of pushing, pulling, lifting and lowering heavy objects through control systems, motor systems, etc. Well-known companies in this field include Jiechang Drive, etc., and their application scenarios are becoming more and more widespread, and market recognition is increasing.
Another point is the background of Ruimai. It was established around 2011 and is a core supporting enterprise in the Manhua Holdings system. Moreover, Manhua Industrial holds 82.76% of the shares of Ruimai Technology and is the controlling shareholder.
Man Wah Industrial is also a member of the Man Wah Holdings system, and its ultimate actual controller is Huang Minli.
Let’s talk about Man Wah Holdings. This is a well-known company. It is listed in Hong Kong. Its main business is sofas and supporting products, beds and supporting products. The leader is also Huang Minli.
Man Wah’s well-known brand is Chivas, and one of its main categories is functional sofas.
In fiscal year 2026, Man Wah Holdings’ revenue reached HK$16.429 billion, and the profit attributable to the company’s owners was HK$1.812 billion.
This level of holding relationship has greatly affected Ruimai’s revenue structure.
It is understood that in 2023 and 2024, revenue from functional iron frame systems and linear drive system-related products from Man Wah Holdings and its related parties will account for more than 30% of Ruimai’s total revenue.
Looking at it from another perspective, this also means that more than 60% of the business comes from external companies.
This shows that in the functional iron frame + linear drive track, Ruimai’s strength is really impressive.
Reflecting the specific performance data, we can also make an understanding. Ruimai’s revenue will be approximately 2.303 billion yuan in 2024 and approximately 2.251 billion yuan in 2025, a decrease of 2.27%.
The gross profit margin will be 21.01% in 2024 and 19.74% in 2025.
The net profit attributable to shareholders of the listed company will be approximately 205 million yuan in 2024 and approximately 186 million yuan in 2025, a decrease of 17.33%.
Being able to make a behind-the-scenes product worth more than 2 billion can be said to be very powerful.
Now it is going public to raise funds, which undoubtedly has greater ambitions.
According to the IPO plan, Ruimai plans to raise a total of approximately 730 million yuan, which will be invested in two major projects. The Ruimai Intelligent Precision Structural Parts (Zhangjiagang) construction project has a total investment and planned investment of approximately 614 million yuan; the second is the R&D center construction project, with an investment and fund-raising investment amount of 116 million yuan.
In terms of specific deployment, the Zhangjiagang base is expected to expand the production capacity of precision structural parts to meet the expansion needs of global orders; the R&D center will focus on the iteration of new technologies in linear drive and intelligent transmission to consolidate the technical advantages of the smart home precision parts track.
According to financial reports and public information, Ruimai has some other data worth noting, such as the layout of three modern production bases in Wujiang, Jiangsu and Vietnam, with a total factory area of more than 150,000 square meters.
The purpose of this fundraising is to build the Zhangjiagang base.
Overseas, the Vietnam factory will be put into production in 2020, and a R&D and sales center will be set up in Germany.
In terms of overseas markets, sales staff and technical service engineers have been stationed in North America, Europe, Southeast Asia and other regions for a long time.
In terms of technology, Ruimai has many unique features, such as being rated as a national high-tech enterprise and a provincial-level specialized new enterprise; it has mastered low sitting height and zero wall-facing design technology, sequential attitude adjustment technology, multi-modal electric attitude control technology, double-sided riveting head mechanism and riveting machine technology.
At the sales level, Ruimai focuses on direct sales, and its downstream customers are mainly well-known electric sofa manufacturers at home and abroad.
In terms of new customer development, we contact customers and display products to obtain customer orders by participating in international industry exhibitions, direct visits, invitations to visit, etc.
One detail is that Ruimai has not stopped at its current advantageous business, but is trying to extend from civilian smart homes to the supporting field of medical and health care equipment, such as the research and development of medical health beds.
When the main business situation was relatively good, Ruimai explored new areas in advance, laying the groundwork for breaking through bottlenecks and cultivating a second growth curve.
For a company to go public, if it wants to gain the recognition of investors, it cannot do without the support of greater market potential and growth prospects.
What is the growth potential of the functional iron frame and linear drive markets that Ruimai focuses on?
As far as the functional iron frame is concerned, this may depend on the growth of the functional sofa. After all, only if the functional sofa sells well can the functional iron frame have a greater use.
Some institutions estimate that China’s functional sofa market has exceeded 10 billion and continues to grow. The prospects are worth looking forward to, and may even approach 20 billion.
Based on the data of some listed companies and the transaction volume of e-commerce platforms, this is indeed a track with tens of billions of potential. Even if it does not necessarily exceed tens of billions currently, the growth of functional sofas is worth looking forward to from the possibility of sofa replacement and the adjustment of demand preferences.
Toubao Research Institute released a report, believing that the penetration rate of functional sofas in China continues to increase, especially among young consumer groups.
Diversified scenarios such as audio-visual entertainment, home office, and home care are driving the continuous innovation and segmentation of such products.
Based on user feedback, the advantages of functional sofas are indeed very prominent. It adds a variety of functions to traditional sofas, including some smart technologies, such as electric adjustment, voice control, mobile phone control, massage function, temperature control, wireless charging, etc.
In particular, the angle of the sofa can be adjusted according to the usage scenario to suit various needs such as watching movies, reading, relaxing, napping, etc., thereby improving comfort.
This means that functional sofas also have the advantages of traditional sofas.
What traditional sofas don’t have, functional sofas have been added.
In contrast, the latter may be more attractive.
This time, we have analyzed the market and made statistics on the main companies. Among the currently active brands, there are roughly Lin’s Home, Ashley, LAZBOY, Gujia Home, Manhua Holdings (Chihua Shi), Henglin Home, Jiangxin Home, Zhongyuan Home, Shangpin Home Furnishing, Yongyi Home, Quanyou, Genji Muyu, Jingdong Made, Left and Right, Menglily, etc.
The heroes are vying for the throne, and the storm is surging.
Some powerful companies continue to increase technological innovation, experience upgrades and marketing efforts for functional sofas.
When sorting through the information, we found that many functional sofa brands are also partners with Ruimai Technology. For example, Lin’s Home Furnishing mentioned that based on the understanding of pain points and needs, it teamed up with its partner Ruimai Technology to carry out in-depth pre-research and joint research for more than half a year, and successfully launched the No. 0 functional rack, integrating the five major functions of “0 wall support, 0 gravity, 0 gaps, 0 back rubbing, and true high feet” to bring users a more extreme comfort and convenience experience.
Facing the functional sofa market, Lin’s Home Furnishing has a layout in 2022, from the popular G085 with intelligent voice control, to the G190 equipped with the upgraded Sense + 2.0 comfortable sitting system, to the breakthrough of the No. 0 functional rack and the debut of new products in the Preferred Season series. A series of product moves have been launched, and it has become a strong force in the functional sofa market.
Overall, the opportunity door for the functional sofa market has been opened, and its growth potential is expected to be quite good.
However, explosive growth is less likely and slow and continuous growth is more likely.
It is believed that there are at least two needs driving the growth of demand for functional sofas. One is the demand for replacement of traditional sofas. Throw away the old sofa and when replacing it, there is a certain probability of purchasing a functional sofa.
The second is the demand for additional purchases. Some single-seater functional sofas do not occupy a large area and can adapt to the needs of various scenarios, thereby expanding the customer base.
This demand is not only reflected in the home scene, where the product is placed in the living room, balcony or study room to create a healing scene; it is also suitable for office and commercial fields, such as movie theaters, executive offices, hotels, etc. The purchaser may purchase additional functional sofas to improve the user experience.
Affected by this, the demand for functional iron frames may continue to grow for a certain period of time.
Looking at the linear drive system, the market it faces is also relatively large, and can be extended to products such as smart electric beds, smart lifting tables and chairs, and lifting columns.
In this regard, Jiecang Driver provides a better reference. The company’s revenue in 2025 will be as high as 4.036 billion yuan, a year-on-year increase of 10.52%; the net profit attributable to the parent company will be 397 million yuan, a year-on-year increase of 40.87%.
