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, seeking a listing on the Main Board. China International Capital Corporation (CICC) and Citigroup act as joint sponsors.

According to the prospectus, XREAL is an AR glasses company. It designs, develops, manufactures, and sells AR glasses under its own brand, and also provides related products and services. Currently, the company’s product lineup can be summarized into three main 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 video viewing, console gaming, and mobile office work, while maintaining a wearing experience close to that of ordinary eyeglasses and supporting plug-and-play connectivity with smartphones, PCs, and game consoles.

Based on this, the One series further strengthens display performance and interaction capabilities. The Light-Ultra-Aura product line represents XREAL’s evolution toward the next generation of spatial computing. The company’s next-generation flagship product, Project Aura, will increase FoV to about 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, with a year-over-year growth of 30.8% in 2025.

In terms of revenue composition, AR glasses and accessories account for an absolute majority. In 2025, they accounted for 92.2%. Of this, AR glasses sales revenue reached RMB 403 million in 2025, accounting for 78.1% of total revenue. Based on the prospectus estimates, from 2023 to 2025, the cumulative sales volume of XREAL’s smart glasses is 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, with net losses of RMB 882 million, RMB 709 million, and RMB 456 million, respectively.

Currently, the overseas market is 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 covering 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 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 globally in the AR glasses market every year from 2022 to 2025. Measured by 2025 sales revenue, the company ranks second in the global smart glasses market including AR glasses and non-display glasses, and first in China.

The iResearch Consulting report further shows that in 2025, the global AR glasses market remains relatively concentrated: the top five brands together accounted for 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 about 24.8%, while the top five companies together 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 Sourcefeng, Huachuang Capital, iQIYI, among others.

The prospectus shows that as of March 23, 2026, XREAL’s largest shareholder is founder Xu Chi and its controlled entities. They hold a combined 27.98% of voting rights and will still maintain their controlling position after the listing.