AR glasses leader XREAL files for listing on the Hong Kong Stock Exchange, aiming to become the "world's number one smart glasses stock"

On April 1, XREAL Ltd. (hereinafter “XREAL”) officially filed its prospectus with the Hong Kong Stock Exchange, aiming to be listed on the Main Board. CICC and Citigroup are serving as joint sponsors.

According to the prospectus, XREAL is an AR glasses company that designs, develops, manufactures, and sells AR glasses under its own brand, and also provides related products and services. Currently, the company’s product lines can be broadly categorized into three major series: the Air series, the One series, and the Light-Ultra-Aura product line.

Among them, the Air series is an entry-level product line with the broadest user base. It focuses on high-frequency scenarios such as immersive viewing, console gaming, and mobile office use, while maintaining a wearing experience close to that of ordinary glasses and supporting plug-and-play, connecting to mobile phones, PCs, and gaming consoles.

Building on this, the One series further strengthens display performance and interaction capabilities. The Light-Ultra-Aura product line represents XREAL’s evolution toward next-generation spatial computing. The company’s next-generation flagship product, Project Aura, will deliver an FoV of approximately 70 degrees, and will integrate enhanced spatial computing and multi-modal AI capabilities. It is expected to run on the Google Android XR platform.

The prospectus shows that from 2023 to 2025, XREAL’s revenue was RMB 390 million, RMB 394 million, and RMB 516 million, respectively, and in 2025, it represented a year-on-year growth of 30.8%.

In terms of revenue composition, AR glasses and accessories dominate absolutely, accounting for 92.2% in 2025. Of this, AR glasses sales revenue reached RMB 403 million in 2025, accounting for 78.1% of total revenue. According to the prospectus estimates, from 2023 to 2025, the cumulative sales volume of smart glasses under XREAL was approximately 400k units.

Benefiting from product structure upgrades and economies of scale, the gross margin increased from 18.8% in 2023 to 35.2% in 2025. From 2023 to 2025, XREAL’s losses continued to narrow; net losses were RMB 882 million, RMB 709 million, and RMB 456 million, respectively.

Currently, overseas markets are the main source of revenue for XREAL. In 2025, more than 70% of XREAL’s revenue came from overseas markets. Since its establishment, XREAL has operated globally, with sales across China, North America, Europe, and the Asia-Pacific region. As of December 31, 2025, XREAL’s sales network covers 40 countries and regions, and it also has local sales and operations teams in North America, Japan, and South Korea.

Looking at the smart glasses industry, according to data from iResearch Consulting, measured by sales revenue, XREAL ranked first in the global AR glasses market every year from 2022 to 2025; measured by 2025 sales revenue, the company ranked second in the global smart glasses market, including AR glasses and non-display glasses, and ranked first in China.

The iResearch Consulting report further shows that in 2025, the global AR glasses market remains relatively concentrated, with the top five brands accounting for a combined 80.3% of total sales revenue. Measured by sales revenue, XREAL ranked first in the global AR glasses market in 2025, with a market share of 27.0%. Measured by sales volume, XREAL also ranked first in the global AR glasses market in 2025, with a market share of approximately 24.8%, while the top five companies combined accounted for 83.3% of the market share.

Since its establishment in 2017, XREAL has completed dozens of rounds of financing. Investors include Alibaba, Kuaishou, NIO Capital, Yunfeng Fund, Sequoia China, Gentle Monster, Hillhouse, Hongtai, CICC Capital, Jinpu Investment, Shunwei Capital, CPE Yuanfeng, Huachuang Capital, iQIYI, and others.

The prospectus shows that as of March 23, 2026, XREAL’s largest shareholder is founder Xu Chi and its controlling entity, holding a combined 27.98% of voting rights, and still maintains a controlling position after listing.