In the dynamic world of automotive technology, few companies capture attention like BYD. As it gears up for its highly anticipated event in Shenzhen on February 10, 2025, the talk centers around its groundbreaking advanced intelligent driving system named “Eye of God.” This development could potentially reshape the automatic driving landscape, igniting excitement among tech enthusiasts and consumers alike.

Automated driving systems are intricate amalgamations of numerous hardware and software elements, each playing a crucial role in achieving autonomous navigation. Among these components, onboard video monitoring systems have emerged as key players, quietly yet significantly enhancing safety and operational reliability on the roads.

Since 2024, the conversation around autonomous driving has shifted towards a synchronized “vehicle-road-cloud” collaborative development phase. This shift necessitates precision and sophistication in onboard video monitoring to effectively predict dangers and ensure vehicles operate smoothly and securely.

The implication is clear: manufacturers possessing advanced capabilities in producing onboard video systems will likely emerge as frontrunners in a fiercely competitive market. One company standing out among its peers is Ruimei Technology, which has shown impressive prowess in both research and product development.

By 2021, Ruimei Technology established a unique three-tier R&D framework within the industry. This innovative structure was further enhanced in 2023 by integrating AI algorithms into its research model, creating a “1+3” system that has streamlined processes and greatly boosted efficiency.

As the effects of this robust research architecture became apparent, Ruimei reported an impressive 80% reuse rate of its foundational technology platforms by the end of 2023, significantly reducing R&D costs. Remarkably, their R&D expense ratio dropped from 14.32% to 11.57% during the first three quarters of 2024, indicative of a growing efficiency in its operations.

However, this does not suggest that the company is easing its investment in R&D. In fact, over the same period, Ruimei allocated a substantial ¥222 million towards research and development, marking a significant 25.13% increase year-on-year, far surpassing competitors like Weim Telecommunications and Hongyuan IoT.

The results of this dedication to innovation are substantial. By the end of 2023, Ruimei's product lineup has expanded to encompass a comprehensive range of solutions, ranging from core hardware to sophisticated software. Their offerings include smart cameras, intelligent displays, onboard central computing units, electronic rearview mirrors, Internet of Vehicles (IoV) products, and multi-scenario visual blind-spot detection systems.

This solid foundation in R&D and product capability has cemented Ruimei's robust position in the field of onboard video monitoring, particularly within the commercial vehicle segment. In fact, the company ranked first globally in the installation of video monitoring and informational solution products for commercial vehicles in 2023.

Moreover, Ruimei has made significant strides in other segments associated with automated driving technologies. Their related products found a place within BYD's ecosystem, with their L2/L2+ automated driving AEBS (Advanced Emergency Braking System) solutions already in mass production on BYD buses and taxis. The development of their L2 and L3 driving technologies, including LDWS (Lane Departure Warning System), FCW (Forward Collision Warning), PCW (Pedestrian Collision Warning), and blind-spot monitoring, is also underway.

With the release and adoption of these products, Ruimei's growth trajectory is impressive; it seems to be rising consistently like a blossoming sesame flower. In the first three quarters of 2024, the company reported a revenue of ¥1.918 billion, representing an impressive 55.17% increase. Moreover, the net profit attributable to the parent company soared to ¥222 million, showcasing a staggering annual growth rate of 170.80%.

Nonetheless, challenges persist. The company's gross profit margins faced a slight decline, dropping by 4.34 percentage points in the same timeframe. This dip can largely be attributed to the rapid growth of their outsourced processing business, which operates at a lower gross profit margin; by mid-2024, it was only 16%. Consequently, the high growth rate in this sector pulled down the overall gross profit margins for the company.

When excluding the impacts of outsourced processing, Ruimei's gross profit margin for its core business reached 50.1%, reflecting a 2.9 percentage point increase year-on-year. To navigate the challenges posed by declining margins, the company took decisive steps in November 2024 by transferring 47.67% equity of its subsidiary responsible for outsourced processing, allowing them to focus more on high-margin core business development.

Additionally, Ruimei has seen its inventory levels soar at a rapid pace; in the first three quarters of 2024, inventory reached ¥545 million, a staggering 97.06% increase, vastly outpacing competitors. However, the structure of this inventory growth remains manageable. By the same timeframe, work-in-progress and outgoing products accounted for 45% of the inventory, having surged nearly 90% since the start of the year. A notable portion also includes raw materials, which increased by 63%. Both of these growth areas can be attributed to rising downstream demand and enhanced stocking practices.

In terms of financial health, by the end of the third quarter of 2024, Ruimei's contract liabilities grew by 13.29% to reach ¥87 million. Simultaneously, their inventory turnover rate improved to 2.67 times, reflecting a year-on-year growth of 15.58%, suggesting that the pressure on product inventory is relatively manageable.

Thus, whether considering contract liabilities or inventory turnover rates, the indicators confirm a robust growth trend for Ruimei Technology. Looking ahead, this trajectory appears to have the potential for continued momentum.

From the company's viewpoint, Ruimei has carved out a leading edge in technology and products, positioning itself well to embrace the industry's evolving technical trends and fostering a competitive landscape that favors strength.

From a broader industry perspective, the demand for onboard video monitoring in commercial vehicles continues to expand significantly. Experts anticipate steady global growth of approximately 5% from 2023 to 2025 within the commercial vehicle sector, which, in turn, will drive demand for accompanying onboard video monitoring products.

Moreover, with stringent European and American standards set to take effect in 2024, imperative need for onboard video monitoring products is expected to surge. Projections indicate an increase of 8.5 million vehicle video monitoring systems in European and American markets over the next five years, with a compound annual growth rate exceeding 18%.

In alignment with the vibrant overseas market, Ruimei Technology has already strategized its expansion effectively. During the first half of 2024, the company achieved overseas revenue reaching ¥601 million, an impressive growth of 44.82%, with international revenue accounting for over half of total earnings at 52.18%.

To optimize support in overseas markets, Ruimei established a new overseas smart manufacturing center in Vietnam, which commenced operations in May 2023. This strategic move is anticipated to enhance their capabilities and responsiveness in international trade. Furthermore, the primary products sold to North America are predominantly produced under a private label model, thus mitigating adverse effects that might arise from inter-regional trade tensions.

In conclusion, with a solid foundation of technological and product advantages, Ruimei Technology has secured its position as a global leader in onboard video monitoring for commercial vehicles. Moving forward, the company is poised to maintain its trajectory of sustained strength, garnering rapid growth across domestic and international markets.