Core Viewpoint - The domestic XR consumer market is experiencing a mixed performance, with VR sales declining significantly while AR sales show strong growth in the first half of 2025 [1] Summary by Category XR Market Performance - In the first half of 2025, the overall sales of the domestic XR consumer market reached 261,000 units, representing a quarter-on-quarter growth of 9% but a year-on-year decline of 21% [1] VR Device Sales - The domestic consumer VR market is currently in a downturn, with VR device sales hitting a three-year low at 75,000 units in the first half of 2025 [1] - The decline in VR sales is attributed to insufficient investment in VR content ecosystems and the absence of major new product launches during this period [1] AR Device Sales - In contrast, the domestic consumer AR device sales reached 186,000 units in the first half of 2025, marking a year-on-year increase of 35% and a quarter-on-quarter increase of 28% [1] - The growth in AR sales is supported by the continuous release of new AR glasses, government subsidies, and promotional events such as the "618" e-commerce festival [1] Future Projections - Based on the performance in the first half of 2025, the total sales of domestic consumer XR devices are projected to reach 606,000 units for the entire year, reflecting a year-on-year growth of 6.5%, primarily driven by AR devices [1]

Core Insights - The Chinese consumer-grade XR market is experiencing structural differentiation in the first half of 2025, with the AR market continuing to grow while the VR market remains sluggish due to a lack of content ecosystem and new product releases [1] XR Market Overview - In the first half of 2025, the overall XR sales reached 261,000 units, representing a 9% quarter-on-quarter growth, primarily driven by the launch of new AR glasses [1] - The domestic consumer-grade VR market is in a downturn, with VR device sales at 75,000 units, marking a three-year low, attributed to insufficient investment in VR content and no major new product launches [3] - Conversely, the domestic consumer-grade AR device sales reached 186,000 units, showing a 35% year-on-year increase and a 28% quarter-on-quarter increase, supported by new product launches and government subsidies [3] - The forecast for the entire year predicts a total of 606,000 units sold in the domestic consumer-grade XR market, a 6.5% increase compared to the previous year, mainly driven by AR devices [3] Brand Trends - In the VR device market, the brand landscape remains stable, with PICO holding a 46% market share, followed by Meta at 28% and Goovis at 7%. Despite market challenges, leading manufacturers maintain their shares through cost control and ecosystem integration [4] - In the AR device market, competition is intensifying, with Thunderbird Innovation leading at 35% market share, followed by XREAL at 22%. Starry Sky Meizu ranks third due to effective policy adaptation and a comprehensive marketing strategy [4] Technology Trends - In the VR device market, Fast LCD screen sales share has rebounded to 87%, while Micro OLED screens remain focused on high-end products [5] - In the AR device market, Micro OLED screens account for 87% of sales, with Sony dominating the market. Domestic manufacturers like Visionary Technology have seen a 30 percentage point increase in market share through deep collaborations [5] - Waveguide technology maintains a stable 13% sales share, with significant breakthroughs allowing manufacturers to reduce costs by 40% and introduce products with a field of view exceeding 50 degrees [5] Investment and Financing Situation - In the first half of 2025, there were 37 global XR financing deals amounting to 44.5 billion yuan, a decrease of 34 deals compared to the previous year, but with an increase of 33.5 billion yuan in total funding, indicating a trend of capital concentration towards leading projects [7] - The AR/VR investment landscape is characterized by four trends: capital centralization, core technology focus, ecological scene development, and regional clustering [7] - The shift from speculative investment to substantial technological breakthroughs and commercialization is evident, with domestic advancements in Micro LED and silicon-based OLED becoming key factors in reshaping the global supply chain [7]

Core Insights - The 2025 World Artificial Intelligence Conference in Shanghai highlighted the integration of technology and culture, showcasing the potential of AI in various cultural sectors such as art, tourism, and gaming [1] - China's digital cultural industry is experiencing significant growth, with projected revenues exceeding 6.67 trillion yuan in 2024, accounting for nearly 5% of GDP and a growth rate of 12.4% [1] - The transformation of China's digital cultural industry is shifting from participation to leadership in the global value chain, contributing to the reconstruction of international cultural discourse [1] Industry Overview - The digital cultural industry in China is becoming a crucial engine for cultural prosperity and economic growth, driven by the deep integration of technology and content innovation [1] - The emergence of platforms like TikTok and games like "Black Myth: Wukong" illustrates China's active role in the global cultural landscape [1] Challenges and Opportunities - Challenges include content innovation homogenization and superficial application of digital technologies, with a concentration of resources in economically developed regions [2] - There is a need for collaborative efforts to transition the digital cultural industry from quantitative accumulation to qualitative leaps, supported by policy frameworks and technological advancements [2] Policy Recommendations - Recommendations include enhancing the national cultural big data system, establishing standards for technology interfaces, content quality, and copyright protection, and supporting disruptive technologies like AIGC and XR in cultural applications [2] - Optimizing regional collaboration mechanisms and establishing digital cultural computing centers in underdeveloped areas are also suggested [2] Corporate Practices - Companies are encouraged to strengthen technological innovation and focus on high-quality IP that embodies Chinese aesthetics, such as the game "Honor of Kings" [3] - There is a call for increased investment in proprietary algorithms and smart creation tools to reduce reliance on foreign technologies [3] Consumer Engagement - Enhancing digital cultural consumption experiences and promoting accessible products for all demographics are essential for activating consumer potential [3] - Encouraging a healthy consumption ecosystem and fostering active participation in cultural production among consumers are also highlighted [3]

Group 1 - The AI industry chain is experiencing significant profitability, particularly in computing power-related stocks, with many companies seeing over 100% growth since April [1] - Vision Technology Co., Ltd. has submitted its prospectus to the Sci-Tech Innovation Board and received its first round of inquiries, with Guotai Junan Securities as the sponsor [2] - The company was founded in October 2016, focusing on the micro-display industry, and has completed a share reform in May 2022 [4] Group 2 - The actual controller of the company is Gu Tie, who holds 61.79% of the voting rights [5] - Gu Tie, born in June 1968, has a background in physics and engineering, previously worked for several companies, and founded Yirui Technology, which went public in 2020 [6][12] - Vision Technology's headquarters is located in Hefei, Anhui Province, with significant investments from Xiaomi, DJI, and other notable firms [6] Group 3 - The company's main product is silicon-based OLED micro-displays, which are crucial for XR devices, and it has achieved mass production of the world's first 12-inch silicon-based OLED production line [8] - The revenue from silicon-based OLED micro-displays is projected to account for 79.70% of the company's main business revenue in 2024 [15] - The company has seen revenue growth in recent years, with projected revenues of 1.9 billion, 2.15 billion, and 2.8 billion yuan for 2022, 2023, and 2024 respectively [12] Group 4 - The company has incurred losses of nearly 800 million yuan over three years, with net profits of -247 million, -304 million, and -247 million yuan for 2022, 2023, and 2024 respectively [12][13] - The average selling price of silicon-based OLED micro-displays has decreased by 4.56% in 2023 compared to 2022, impacting profit margins [17] - The company’s gross profit margin for silicon-based OLED micro-displays was 21.52% in 2024, higher than that of its competitor BOE [19] Group 5 - Vision Technology's main customers include ByteDance, Lenovo, and others, while its suppliers include major firms like SMIC and Shenzhen Huiniu Technology [20] - The company holds a 35.2% market share in the global silicon-based OLED micro-display market, ranking second globally behind Sony [21][31] - The global market for silicon-based OLED displays is expected to grow significantly, with a projected compound annual growth rate of 34.3% from 2020 to 2024 [27]

Industry Overview - The lens industry in China is expected to maintain a good growth momentum due to rigid demand, scenario refinement, and structural optimization, with a projected CAGR of 6.00% for manufacturer sales and 5.04% for retail sales from 2019 to 2024, reaching sales of 29.75 billion and 53.71 billion yuan by 2029 respectively [1] Company Strategy - The company has a flexible strategy across the industry chain, enhancing competitiveness and market share through deep partnerships with core suppliers like Mitsui Chemicals, which has provided a comprehensive product matrix for nearly 15 years [2] - The company ranks among the top in market share, with new production capacities in Thailand and Japan, and an increasing proportion of high unit price and high gross margin products, which is expected to further boost competitiveness and market share [2] - The company employs a C2M business model to engage directly with consumers, utilizing diversified channels to shorten the path to individual end customers, thereby enhancing profitability [2] Smart Glasses Development - The company is actively developing a second growth curve through smart glasses, with demand for lenses in AI and AR glasses, although AR glasses face technological limitations and have not yet achieved significant sales [3] - The company collaborates with leading tech and consumer electronics firms to develop customized lenses for XR products and has acquired land in Thailand for building a production base for XR product lenses [3] - The company forecasts revenues of 2.328 billion, 2.657 billion, and 2.963 billion yuan for 2025-2027, with net profits of 561 million, 672 million, and 777 million yuan respectively, driven by lens demand growth and strategic partnerships in the smart glasses sector [3]

Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its stock performance relative to the market benchmark [8]. Core Insights - The company reported a solid performance in H1 2025, with revenue reaching 1.084 billion RMB, a year-on-year growth of 11.0%. The net profit attributable to shareholders was 273 million RMB, reflecting a 30.7% increase year-on-year [7]. - The company is focusing on optimizing its product structure and enhancing its domestic market presence, with significant growth in standard lens products and a strong emphasis on high-value products [7][8]. - The XR (Extended Reality) business is expanding successfully, with strategic partnerships enhancing growth opportunities, particularly in the smart glasses segment [8]. Financial Data and Profit Forecast - Revenue projections for the company are as follows: 2023: 1.76 billion RMB, 2024: 2.061 billion RMB, 2025E: 2.403 billion RMB, 2026E: 2.786 billion RMB, and 2027E: 3.233 billion RMB, with growth rates of 13%, 17%, 17%, 16%, and 16% respectively [6]. - The net profit attributable to shareholders is forecasted to be 327 million RMB in 2023, increasing to 840 million RMB by 2027, with corresponding growth rates of 32%, 31%, 29%, 24%, and 23% [6]. - Earnings per share (EPS) are projected to grow from 0.77 RMB in 2023 to 1.75 RMB in 2027, reflecting the company's improving profitability [6]. Market Position and Competitive Advantage - The company is recognized as a leading manufacturer in the lens industry, with a comprehensive product SKU matrix and strong upstream and downstream partnerships [8]. - The company is actively enhancing its domestic market and proprietary brand initiatives, which are expected to drive new growth momentum [8]. - The smart glasses market is experiencing rapid growth, with the company positioned to leverage its first-mover advantage and strategic collaborations to expand its market share [8].

Group 1 - Samsung has confirmed the launch of a foldable smartphone and XR headset in the second half of this year, expected to be released by the end of the year [1] - The XR headset will feature an Android XR system, Micro OLED or OLEDoS displays with a refresh rate of 90Hz, and will support eye tracking [1] - The device will utilize an external battery pack and will support capabilities such as Gemini, navigation, and translation [1] Group 2 - ByteDance is reportedly advancing a mixed reality (MR) headset project, codenamed "Project P," through its VR subsidiary Pico, directly competing with Meta's flagship MR glasses planned for 2027 [3][5] - The MR glasses being developed by ByteDance show remarkable similarities to Meta's Orion prototype, particularly in their split architecture design, indicating a potential industry trend [3] - Pico is developing a dedicated chip for the MR device to process sensor data and reduce latency between user actions and AR visuals, similar to Apple's Vision Pro [5] Group 3 - The XR market is experiencing a quiet revolution, with traditional all-in-one headsets facing growth bottlenecks, while stylish lightweight devices like Ray-Ban Meta have unexpectedly gained popularity [7] - Pico's strategic shift towards MR reflects its deep insight into the future of smart glasses and demonstrates the company's flexibility and decisiveness in the face of competitive pressure [7] - The company continues to leverage its advantages and lead industry trends as technology and market dynamics evolve [7] Group 4 - WIMI, the first publicly traded holographic AR company, has been actively integrating technology and collaborating within the industry to enhance its competitiveness in the smart glasses sector [9] - WIMI plays a dual role as a "bottom technology enabler" and "industry ecosystem organizer," focusing on hardware optimization and core technology breakthroughs [9] - The company is participating in the "Hundred Glasses War," collaborating with major internet firms, hardware manufacturers, and traditional eyewear companies to build a complete ecosystem from technology development to application [9] Group 5 - The product plans and strategic layouts from major players indicate that the future battle for XR device mass adoption will require affordable products [10] - Lightweight design is set to become an irreversible trend for the next generation of XR devices, marking a potential watershed moment for the XR market [10] - The competition for lightweight XR devices is just beginning, suggesting a significant shift in the industry landscape [10]

Group 1 - Apple's first MR headset, Vision Pro, will officially launch on February 2 [1] - Analyst estimates suggest Vision Pro's shipment volume will be around 500,000 units in 2024, with potential production increasing to 12.6 million units in five years [1] - Vision Pro is expected to face supply shortages in its first year, with user numbers projected to reach 20 million in five years [1] Group 2 - The launch of Vision Pro is anticipated to benefit domestic XR terminal brands and supply chains in China [2] - Vision Pro is expected to help XR products reach a broader audience and accelerate the development of the XR ecosystem [2] - Several listed companies, including Lianyi Zhizao and Luxshare Precision, are likely to participate in the assembly and parts supply for Vision Pro [2]

Core Viewpoint - XREAL is focused on developing innovative AR glasses through self-research in hardware and algorithms, aiming to create a lightweight, modular product that can achieve significant market success [1][4][11]. Group 1: Company Development and Strategy - XREAL has established itself as a leading player in the global AR glasses market, maintaining the top position for three consecutive years with cumulative sales exceeding 600,000 units [4][11]. - The company has chosen a unique approach by investing heavily in self-research for core components like chips and optics, with 65% of parts in flagship products being self-developed or customized [6][7]. - XREAL's collaboration with Google on Project Aura marks it as the only Chinese company partnering with Google in the AR field, enhancing its position in the global market [4][10]. Group 2: Product Innovation and Technology - The newly launched One Pro AR glasses feature the self-developed X1 chip, which addresses critical performance issues such as latency and bandwidth optimization, achieving a remarkable 3 milliseconds of latency [6][7]. - The X1 chip is a 12-nanometer spatial computing chip that represents a significant investment of over 100 million yuan, highlighting XREAL's commitment to innovation in chip technology [7][8]. - XREAL aims to create a product that not only serves as an AR device but also integrates AI capabilities, leveraging Google's AI advancements to enhance user experience [12][19]. Group 3: Market Trends and Challenges - The AR glasses industry is currently in its early stages, with no product yet achieving the status of a blockbuster, indicating that the market is still developing [16][19]. - The recent surge in AI glasses, driven by competitors like Meta and Ray-Ban, is viewed as a temporary trend rather than a sustainable growth phase, with many products lacking maturity in technology and user experience [16][19]. - XREAL emphasizes the need for a robust developer ecosystem and user base to drive the industry forward, suggesting that the current market dynamics are not yet conducive to long-term success [16][19].

经济观察报记者 钱玉娟 海淀区中航广场15层，是中国AR（增强现实）眼镜创新企业XREAL在北京的办公区。走进其中，"沙 丘""拉普达""油屋"……这些来自电影、动漫或游戏里的名字，出现在会议室的门上。 7月30日，"绿洲"会议室里坐满了人，来自科技巨头Google的技术专家团队飞抵北京，与XREAL的工程 师们围坐一桌。 这并非两家公司技术大牛首次面对面交流。在过去半年，XREAL联合创始人兼AI和算法负责人吴克艰 会顶着时差，与Google的软件、硬件等工程部门展开远程讨论、资源拉通。他也亲自带队到Google总 部，让两个团队能进行深层次、高密度的沟通，以便更好地联合开发AR眼镜ProjectAura。 美东时间5月21日，Google在一年一度的 I/O开发者大会上官宣了ProjectAura——全球首个搭载An－ droidXR（指扩展现实，是AR、VR、MR等沉浸式技术的统称）系统的AR终端，它将会在明年一季度 面市发售。 AndroidXR是Google为XR设备在AI大模型时代打造的系统平台，Google先是为了对标苹果VisionPro头 显，宣布与三星电子合作开发首款搭载上述系统的头戴设备 ...