New Stock News | AR Glasses Company XREAL Files for Listing on Hong Kong Stock Exchange with Accumulated Losses Exceeding 2 Billion Yuan in Three Years

According to the disclosure by the Hong Kong Stock Exchange on April 1st, XREAL Ltd. (referred to as XREAL) has submitted an application for listing on the main board of the Hong Kong Stock Exchange, with CICC and Citigroup acting as its joint sponsors. Company Profile The prospectus shows that XREAL is an AR glasses company, engaged in the design, development, manufacturing, and sale of AR glasses under its own brand, as well as providing related products and services. Currently, the company's product line can be categorized into three main series: the Air series, the One series, and the Light-Ultra-Aura product line. According to data from iResearch, in terms of sales revenue, the company is expected to rank first in the global AR glasses market from 2022 to 2025; and in terms of sales revenue in 2025, the company is expected to rank second in the global smart glasses market, including AR glasses and non-display glasses, and first in China. The company's product offerings mainly consist of AR glasses designed for everyday use, providing a range of products at different price points to cover various price ranges, user needs, and product features, ranging from entry-level spatial display products to next-generation spatial computing products. In 2019, the company launched its first commercially available AR glasses for consumers, the Light series. Since then, they have introduced NebulaOS, which brings system-level spatial interaction capabilities to AR glasses, as well as establishing an AR optical module manufacturing plant and launching the X1 side co-processor. In addition to consumer products, the company also provides technology development services to corporate clients. Leveraging their expertise in AR optics, side co-processors, hardware engineering, and system integration, the company supports enterprise clients in customizing AR-related products for specific application scenarios. Their services include optical module design, hardware development, software system integration, and customization of AR application scenarios. Since its establishment, the company has been operating globally, with sales covering China, North America, Europe, and the Asia-Pacific region. As of December 31, 2025, the company's sales network has covered 40 countries and regions, with local sales and operations teams in North America, Japan, and South Korea. In 2025, over 70% of the company's revenue came from overseas markets. Financial Data Revenue In 2023, 2024, and 2025, the company's revenue was approximately RMB 3.9 billion, RMB 3.94 billion, and RMB 5.16 billion, respectively. Profit In 2023, 2024, and 2025, the company incurred losses of approximately RMB 8.82 billion, RMB 7.09 billion, and RMB 4.56 billion, respectively. Gross Margin In 2023, 2024, and 2025, the company's gross margins were 18.8%, 22.1%, and 35.2%, respectively. Industry Overview Intelligent wearable devices can be broadly divided into two categories: smart glasses and XR headsets. In terms of sales volume and revenue, the global intelligent wearable device market is increasingly shifting towards the smart glasses sector. From 2021 to 2025, the market revenue is expected to increase from $46 billion to $51 billion, with a compound annual growth rate of 2.4%. Due to their portability and consumer-centric adaptability, smart glasses are expected to maintain a high growth trajectory, with a compound annual growth rate of 75.4% in sales volume, reaching 119 million units by 2030. Smart glasses can be further divided into AR glasses and non-display smart glasses. The AR glasses market has become the fastest-growing segment in the global smart glasses market. From 2021 to 2025, the compound annual growth rates of AR glasses sales revenue and sales volume are expected to reach 41.3% and 48.9%, respectively. From 2026 to 2030, this market is expected to accelerate further, with projected compound annual growth rates of 134.3% and 130.9% in sales revenue and sales volume, respectively. The non-display smart glasses market dominated the early stages of development in the smart glasses market from 2021 to 2025, with compound annual growth rates of 84.8% in sales revenue and 90.2% in sales volume. From 2026 to 2030, the growth in this market is expected to slow down gradually, with projected compound annual growth rates of 46.4% and 69.2% in sales revenue and sales volume, respectively. The anticipated slowdown in growth reflects the relatively limited hardware differentiation space for non-display products, as consumers increasingly prefer devices with richer visual output and more diverse application scenarios. By 2030, sales of non-display smart glasses are expected to reach 96.6 million units. In 2025, the global AR glasses market remains relatively concentrated, with the top five brands accounting for 80.3% of total sales revenue. In terms of sales revenue, XREAL is expected to rank first in the global AR glasses market in 2025, with a market share of 27.0%. In terms of sales volume, XREAL is also expected to lead the global AR glasses market in 2025, with a market share of approximately 24.8%, while the top five companies together hold 83.3% of the market share. In the entire smart glasses industry, the top five companies collectively account for 65.0% of total sales revenue and 63.0% of total sales volume. Most companies leading the entire smart glasses market focus mainly on non-display glasses. In terms of sales revenue, as an AR glasses company, XREAL ranks second in the entire smart glasses market, and fifth in terms of sales volume. Board of Directors Information The company's board of directors consists of 10 members, including 4 executive directors, 2 non-executive directors, and 4 independent non-executive directors. The board members serve a term of 3 years and can be re-elected and re-appointed. Ownership Structure As of March 23, 2026, the company's largest single shareholder group (including Dr. Xu, Fortitude Savour, Infinite Halcyon, and Heritage Anchor) has the right to exercise approximately 27.98% of the voting rights in the company. Heritage Anchor is indirectly wholly owned by Dr. Xu through Infinite Halcyon, which is fully owned by Dr. Xu. Under the Securities and Futures Ordinance, both Dr. Xu and Infinite Halcyon are considered to have interests in the shares held by Heritage Anchor. Fortitude Savour is fully owned by Dr. Xu. Therefore, Dr. Xu is considered to have an interest in the shares held by Fortitude Savour. Intermediary Team Joint Sponsors: China International Capital Corporation Hong Kong Securities Limited, Citigroup Global Markets Asia Limited Legal Advisors: Davis Polk & Wardwell for Hong Kong and US laws (excluding litigation matters); Mayer Brown for Hong Kong and US laws; JinDu Law Firm for Chinese laws; Maples and Calder (Hong Kong) LLP for Cayman Islands laws Joint Sponsors' Legal Advisors: Stephenson Harwood for Hong Kong and US laws; JunHe for Chinese laws Auditors and Reporting Accountants: Ernst & Young Industry Consultant: iResearch Compliance Consultant: SOMERLEY CAP Limited.