A 41-year-old engineer creates glasses, valued at 5.8 billion

Ask AI · How did Xu Chi break through the AR winter and achieve a valuation surge?

Written by | Lei Zitong Edited by | Chen Xiaoping

41-year-old engineer Xu Chi is knocking on the door of the Hong Kong Stock Exchange.

On April 1st, AR glasses company XREAL submitted its listing application to the HKEX, with China International Capital Corporation and Citigroup as joint sponsors.

Founded 8 years ago, it is expected to become the “first stock in smart glasses.”

Founder and CEO Xu Chi studied undergraduate at Zhejiang University, then went to the U.S. to earn a Ph.D. in electronic engineering from the University of Minnesota, received an offer from Nvidia, and later engaged in optical display R&D at Magic Leap.

The turning point in Xu Chi’s fate occurred in 2017, when he left a stable life, resolutely returned to China to found XREAL, at a time when the AR sector was still in a cold winter.

“Smart glasses may be the last core smart terminal that a generation can embrace,” Xu stated, and the market seems to be validating his foresight.

From 2023 to 2025, XREAL’s revenue grew from 390 million yuan to 516 million yuan, with gross profit margin rising to 35.2%, nearly doubling in two years.

Xu Chi divides the product line into three major series: Air, One, and Light-Ultra-Aura, covering everything from entry-level spatial displays to next-generation spatial computing products. Their mainstream pricing ranges from $400 to $700 per unit.

For example, the newly launched XREAL One Pro in July 2025 received 26k reservations on the day of its release, priced at 4,299 yuan, with over 30k units sold on JD.com’s flagship store.

Over 70% of XREAL’s revenue comes from overseas markets, with a global network covering 40 countries and regions in North America, Europe, and Asia-Pacific. By the end of 2025, the cumulative sales of its smart glasses are about 400k units.

According to third-party data, from 2022 to 2025, XREAL has maintained the top position in AR glasses revenue for four consecutive years, with a market share reaching 27% in 2025.

However, XREAL is still far from breakeven. Over the past three years, its net business loss (adjusted) has accumulated to 1.06 billion yuan. Fortunately, the loss trend is easing, with the financial gap (adjusted) narrowing to 250 million yuan in 2025.

Despite this, Xu Chi has attracted many star shareholders, such as Taobao China Holdings, Luxshare Precision, NIO Capital, and Sequoia China, who are betting on XREAL. Many industry shareholders can provide support across consumer electronics supply chains, smart vehicles, and internet platforms.

Xu Chi has raised over $300 million in total, with XREAL’s latest valuation at $833 million, approximately 5.8 billion RMB. Before the IPO, he held 27.98% voting rights, and will maintain control after listing.

Notably, Xu Chi has successfully gained Google’s trust.

The two are jointly developing flagship product Project Aura on the Android XR platform, which will integrate enhanced spatial computing and multimodal AI capabilities, expected to launch in 2026, amplifying XREAL’s potential.

Xu Chi’s ambitions go beyond hardware.

He plans to evolve from spatial display to spatial computing, moving toward AI-enabled wearable experiences. The IPO proceeds will mainly be used for R&D investment, global branding, and upgrading self-operated production lines.

“Current AR glasses are very much like the first half of smartphones, even the ‘first half of the first half’.”

In a public speech in mid-March, Xu compared the current stage of the smart glasses industry to 2005 or 2006 smartphones, predicting a breakout point around 2027-2028.

In this track, many players are vying for dominance.

Among leading companies, Meizu’s AI glasses are preparing for market launch, Leishen Innovation is gaining momentum, Rokid has just announced new funding, and XREAL is the first to knock on HKEX’s door, though it is also facing legal disputes.

From a Silicon Valley worker to a challenger at the Hong Kong Stock Exchange, Xu Chi has been on this journey for 8 years. His dream of the “AR era” is one step closer.