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 referred to as “XREAL”) officially filed its prospectus with the Hong Kong Stock Exchange, seeking a Main Board listing. China International Capital Corporation 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 provides related products and services. Currently, the company’s product lineup can be categorized into three main series: the Air series, the One series, and the Light-Ultra-Aura product lineup.

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 movie viewing, console gaming, and mobile office work. At the same time, it maintains a wearing experience close to that of ordinary glasses and supports plug-and-play, connecting to phones, PCs, and gaming consoles.

Building on this, the One series further strengthens display performance and interaction capabilities. The Light-Ultra-Aura product lineup represents XREAL’s evolution of its products toward next-generation spatial computing. The company’s next-generation flagship product, Project Aura, will achieve a FoV increase to approximately 70 degrees, integrate enhanced spatial computing and multi-modal AI capabilities, and 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-on-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 the total. Among them, 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 smart glasses under XREAL 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, overseas markets are the primary source of income for XREAL. In 2025, more than 70% of XREAL’s revenue came from overseas markets. Since its establishment, XREAL has operated globally, selling in 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, by sales revenue, XREAL ranked first globally in the AR glasses market each year from 2022 to 2025. By sales revenue in 2025, the company ranked second in the global smart glasses market including both AR glasses and non-display glasses, and ranked first in China.

An iResearch Consulting report further shows that in 2025, the global AR glasses market remained relatively concentrated, with the top five brands accounting for a combined 80.3% of total sales revenue. By sales revenue, XREAL ranked first in the global AR glasses market in 2025, with a market share of 27.0%. 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 Sourcefeng, 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 the voting rights. After listing, it will still maintain a controlling position.