XREAL impacts Hong Kong stock IPO, with Alibaba, Kuaishou, and Xiaomi as shareholders, ranking first in the global AR glasses market

According to the Hong Kong Stock Exchange disclosure on April 1, XREAL Ltd. submitted a listing application to the Main Board of the Hong Kong Stock Exchange, with China International Capital Corporation and Citibank serving as joint sponsors.

Summary | Prospectus Editing | Arti

This article is for informational exchange only and does not constitute any trading advice.

According to the prospectus, XREAL is a leading AR glasses company with a global consumer base. The company designs, develops, manufactures, and sells AR glasses under its own brand, offering related products and services.

Leveraging its capabilities in optical engineering, edge-side co-processors integration, algorithms, and software development, XREAL’s products have evolved from display-centric devices to richer spatial computing experiences, further expanding into AI-enabled wearable experiences.

According to iResearch, from 2022 to 2025, XREAL ranks first in the global AR glasses market by sales revenue each year; by 2025, the company is projected to be second in the worldwide smart glasses market—including AR glasses and non-display glasses—and first in China.

iResearch reports that XREAL launched its first commercialized AR glasses series, Light, for consumers in 2019. Since then, it introduced NebulaOS, which brings system-level spatial interaction capabilities to AR glasses, established an AR optical module manufacturing plant, and launched the X1 edge-side co-processor.

These achievements reflect the company’s ongoing commitment to advancing key developments in the AR glasses industry and demonstrate its continuous evolution from early AR display products to more comprehensive spatial computing experiences, consolidating its current leading market position.

The company’s product offerings mainly consist of AR glasses designed for everyday use. XREAL provides a range of products at different price points, covering various price tiers, user needs, and functionalities—from entry-level spatial display devices to next-generation spatial computing products.

Currently, the company’s product lines can be categorized into three main series: the Air series, the One series, and the Light-Ultra-Aura product line.

The Air series is the company’s entry-level and most widely used product line, focusing on high-frequency scenarios such as immersive viewing, console gaming, and mobile office, while maintaining a wearing experience close to regular glasses and supporting plug-and-play connectivity with smartphones, PCs, and gaming consoles.

The One series further enhances display performance and interaction capabilities. It features advanced Micro-OLED display technology, the company’s customized X1 edge-side co-processor, and electrochromic lenses that automatically adjust brightness based on ambient light, providing users with a more advanced spatial display experience.

The Light-Ultra-Aura product line represents the company’s evolution toward next-generation spatial computing: the early Light series helped establish the company’s initial market position; Ultra introduces advanced spatial perception and full 6DoF interaction for developers and high-end users; and the upcoming flagship Project Aura aims to achieve approximately 70-degree field of view (FoV), integrated with enhanced spatial computing and multimodal AI capabilities, expected to run on the Google Android XR platform.

XREAL developed NebulaOS, a proprietary operating system designed specifically for AR environments. The company’s AR glasses are generally compatible with mainstream operating systems and support seamless cross-device and cross-platform connectivity. Based on this hardware compatibility, NebulaOS further enhances user experience by enabling native 3D Android applications, spatialized display, multi-window management, 3DoF and 6DoF spatial positioning, and intuitive gesture interactions.

NebulaOS also provides a development framework for creating AR-specific applications, expanding the potential use cases of the company’s devices.

In addition to consumer products, XREAL offers technical development services to enterprise clients. Relying on its expertise in AR optics, edge-side co-processors, hardware engineering, and system integration, the company supports enterprise customers in customizing AR-related products for specific application scenarios. Its services include optical module design, hardware development, software system integration, and AR application customization.

Unlike assembly manufacturers, XREAL leads the design and integration of key technologies from optical engines, edge-side co-processor architectures, algorithms, to operating systems. This deeply coupled technology system not only creates high entry barriers but also enables continuous iteration of AR glasses.

The company’s core technologies include: self-developed X-Prism optical engine, which offers a thinner module and wider FoV compared to mainstream Birdbath solutions, with Project Aura aiming for about 70 degrees; a customized X1 edge-side co-processor supporting local execution of spatial algorithms with photon latency below three milliseconds; high-performance algorithms capable of stabilizing virtual objects in physical space and supporting real-time 2D to 3D video conversion; and NebulaOS, a system interface between device capabilities and applications covering entertainment, productivity, and developer tools.

Since its inception, XREAL has operated globally, with sales covering China, North America, Europe, and Asia-Pacific. This global operational model has achieved commercial success in international markets. By 2025, over 70% of the company’s revenue is expected to come from overseas markets.

The company collaborates with leading global technology firms in edge-side co-processor architecture, optical engines, spatial perception algorithms, and operating systems, and has established a worldwide sales network and supply chain. As of December 31, 2025, its sales network spans 40 countries and regions, with local sales and operations teams in North America, Japan, and South Korea.

The global smart glasses market is entering a new expansion phase driven by rapid advances in edge computing, artificial intelligence, and optical display technologies. Smart glasses include AR glasses and non-display glasses. According to iResearch, the global smart glasses market size is projected to reach approximately $2.3 billion in 2025, growing to about $24 billion by 2030.

Within this broad market, AR glasses that combine daily wear convenience with immersive digital display functions are expected to be the main growth drivers. Global AR glasses sales are forecasted to increase from about 800k units in 2026 to approximately 22.2 million units in 2030, with a compound annual growth rate (CAGR) of 130.9%. During the same period, their market share within smart glasses is expected to rise significantly.

Financially, XREAL’s revenue increased from 390 million RMB in 2023 to 395 million RMB in 2024, and is projected to grow by 30.8% to 516 million RMB in 2025. The company’s gross profit margin rose from 18.8% in 2023 to 22.1% in 2024, and further to 35.2% in 2025. Net losses narrowed from 882 million RMB in 2023 to 709 million RMB in 2024, and further to 456 million RMB in 2025.

According to the prospectus, XREAL’s shareholders include Taobao China Holdings, Cosmic Blue, Shunwei, Pudong Chuangling, Perfect Destiny Limited, Yunfeng, China Internet Investment Fund, CICC Qizhi, IICOMBINED Co., Ltd., Gentle Monster, Lixun Precision, and others.

The funds raised from this Hong Kong IPO will be used for the following purposes, subject to adjustments based on business needs and market conditions: ongoing R&D investments, including technology development and product upgrades; global branding and strengthening of sales and distribution networks; building new self-operated production lines and upgrading existing manufacturing infrastructure; deploying and upgrading internal systems to improve management and operational efficiency; and working capital and general corporate purposes.