Core Viewpoint - Rokid Glasses, an all-functional AI smart glasses, will officially launch on September 1, 2025, with a price of 3,299 yuan, showcasing a unique integration of voice, photography, and display capabilities [2][3]. Product Overview - Rokid Glasses features a lightweight design of approximately 49 grams, utilizing a single optical machine with dual display technology and a diffraction waveguide solution, achieving a maximum brightness of 1500 nits for clear visibility outdoors [3]. - The device is powered by the Qualcomm AR1 chip and NXP RT600 dual-chip architecture, balancing high performance with low power consumption [3]. - It includes a 210 mAh battery, supporting various functionalities such as 6 hours of music playback, 4 hours of voice calls, 2 hours in always-on mode, and 30 minutes of intensive photography [3]. Design Philosophy - The glasses support voice control, real-time translation, and navigation prompts, with a dual-direction real-time translation feature that syncs with mobile screens, enhancing cross-language communication [2]. - Equipped with four-array microphones, it can achieve precise voice capture and positioning, distinguishing it from competitors [2]. Product Combination - Rokid Glasses stands out in the market due to its comprehensive functionality, combining voice, photography, and display capabilities, making it one of the most complete AI smart glasses available [2][3]. - The product's pre-sale performance is notable, with over 40,000 units sold within five days, indicating a strong consumer demand for display-enabled smart glasses [3]. Future Outlook - The adoption of waveguide technology has significantly improved the display quality and lightweight design, positioning Rokid Glasses as a leader in the industry [3]. - However, challenges remain in the AR glasses market, particularly regarding the high BOM costs associated with MicroLED and waveguide technologies, which can account for up to 50% of the total cost [4]. - Current diffraction waveguide technology still faces issues such as rainbow patterns and light leakage, limiting its application to basic functions like translation and notifications [4].

Group 1 - The core viewpoint of the article highlights the significant stock price increase of Lens Technology, which rose over 7% to HKD 27.78, with a trading volume of HKD 519 million [1] - Lens Technology has established a wholly-owned subsidiary, Lens Optoelectronics Technology (Changsha) Co., Ltd., focusing on optical instruments, virtual reality devices, display components, new optical materials, and eyewear manufacturing [1] - As a key module supplier for several leading AI eyewear clients and the assembler for Rokid devices, Lens Technology has achieved full-process coverage from optical lenses to functional modules and complete assembly, showcasing its technological advantages [1] Group 2 - According to a report by Industrial Securities, the projected sales of AR devices in China for 2024 is 180,000 units, while overseas sales are expected to reach 320,000 units, with global AR sales anticipated to grow by 30% to 650,000 units by 2025 [1] - The growth of AR eyewear is primarily driven by the consumer market's penetration, with advancements in waveguide and micro-display technologies expected to lead to lighter and more cost-effective AR glasses [1] - By 2027, global AR sales are forecasted to exceed 1.5 million units, indicating a robust growth trajectory for the AR eyewear market [1]

Core Insights - The AI/AR glasses market is experiencing significant growth, with a projected shipment of 262,000 units in the first half of 2025 in China, representing a 73% year-on-year increase, and an expected total shipment of 900,000 units for the year, a 133% increase [2] - The market is expected to exceed 100 billion yuan in three years, driven by advancements in technology and cost reductions [2] Industry Trends - Light guide AR glasses are anticipated to become the dominant form due to their lightweight and integrated design, gradually replacing heavier models [3] - The BirdBath technology is positioned for the budget segment, while light guide technology is gaining traction among manufacturers, spurred by AI advancements [3] - Major suppliers like GoerTek and Lens Technology are increasing investments in the supply chain to support the growth of AR glasses [3] Market Opportunities - The global new display industry is projected to grow by 17% in 2024, reaching $219.8 billion, with China accounting for approximately half of this market at around $108 billion [3] - Morphotonics, a Dutch company specializing in large-area nanoimprint technology, has established a subsidiary in Suzhou, China, to enhance its local presence and focus on cost reduction, capacity increase, and rapid response [3] Technological Challenges - Current wafer-level technology faces challenges such as high costs and low production capacity, while roll-to-roll nanoimprint technology struggles with precision and yield [4] - The roll-to-plate nanoimprint technology combines advantages of both methods, offering higher production capacity while meeting precision requirements [4] Production Capacity - Morphotonics has commercialized products like the Portis series for small-scale production and the Aurora series for large-scale manufacturing, with plans to introduce a new device, 'Cypris', capable of producing 6 million light guides annually [4] - A recent production run achieved a yield of 93%, with a target of maintaining yields between 90%-95% for large-scale production [4] Future Projections - The global annual shipment of AR smart glasses is expected to reach tens of millions by 2028 to 2030, contingent on reducing production costs [5] - Initial price increases of 20%-40% may be acceptable, but long-term market acceptance will require further price reductions [5]

Investment Rating - The report maintains an "Accumulate" rating for the company [5] Core Views - The company has established a diversified business structure with five major segments: optical components, film optical panels, semiconductor optics, automotive electronics (AR+), and reflective materials, all showing good growth momentum [6][21] - In 2024, the company achieved a revenue of 6.278 billion yuan, a year-on-year increase of 23.67%, and a net profit attributable to shareholders of 1.030 billion yuan, up 71.57% year-on-year, marking a historical high [6][26] - The automotive electronics segment, particularly AR-HUD, is rapidly penetrating the mid-range market, with a projected shipment of over 300,000 units in 2024, maintaining a leading position in the domestic industry [6][36] Summary by Sections Financial Performance - The company reported a revenue of 6.278 billion yuan in 2024, with a compound annual growth rate of 18.14% from 2020 to 2024 [26] - The net profit attributable to shareholders reached 1.030 billion yuan in 2024, reflecting a significant increase in profitability [26][42] - In Q1 2025, the company achieved a revenue of 1.482 billion yuan, a year-on-year increase of 10.20% [28] Business Segments - **Optical Components**: In 2024, this segment generated 2.884 billion yuan, accounting for 45.94% of total revenue, with a gross margin of 36.31% [30] - **Film Optical Panels**: This segment achieved 2.472 billion yuan in revenue, representing 39.38% of total revenue, with a gross margin of 26.65% [34] - **Reflective Materials**: Revenue reached 394 million yuan, contributing 6.27% to total revenue, with a gross margin of 30.87% [35] - **Automotive Electronics (AR+)**: This segment generated 300 million yuan, accounting for 4.78% of total revenue, with a gross margin of 13.53% [36] - **Semiconductor Optics**: Revenue was 129 million yuan, contributing 2.06% to total revenue, with a gross margin of 40.29% [37] Strategic Developments - The company has focused on R&D innovation, with a total investment of 1.165 billion yuan from 2022 to 2024, maintaining an average R&D expense ratio of 7.49% [46] - The establishment of a central research institute in 2017 has driven the development of new products and technologies in optical components, automotive electronics, and AR/VR [46][47] - The company has built six production bases and is actively expanding its global market presence, enhancing its ability to serve overseas customers [47][50]

Core Viewpoint - GoerTek announced a significant investment through its subsidiary Hong Kong GoerTech, providing up to $100 million in a secured loan to Haylo Labs Limited for the acquisition of Plessey Semiconductors Limited, aiming to advance Micro-LED technology and support AI smart glasses and AR business development [1][2] Group 1: Investment Details - The loan from Hong Kong GoerTech to Haylo has an annual interest rate of approximately 6.34%, with a five-year term and interest paid annually [2] - Haylo must sign a share transfer agreement with Plessey's original shareholders as a condition for using the loan funds [2] - In the event of Haylo or Plessey being acquired or going public, Hong Kong GoerTech will recover the loan principal and interest, plus 25% of the total acquisition value or market capitalization [2] Group 2: Plessey Overview - Plessey, established in 2000, is recognized in the Micro-LED sector and has developed a high-brightness Micro-LED display specifically for AR glasses [3] - Plessey's projected revenue for the fiscal year 2024 is $74.79 million, with a net profit of $12.41 million, and for fiscal year 2025, revenue is expected to be $72.72 million with a net profit of $2.80 million [3] - As of June 30, 2025, Plessey's total assets are estimated at $119 million, with shareholder equity of $2.33 million [3] Group 3: Financial Assessment - GoerTek believes Plessey's debt repayment capability is better than indicated by its balance sheet, with fair value of assets covering the loan amount [4] - Plessey is currently profitable and is expected to improve its financial performance as the global market for AI smart glasses and AR products grows rapidly [4] - GoerTek, a leader in the acoustic industry, has a strong presence in smart hardware sectors, including VR, MR, and AR, and anticipates a new wave of rapid development in AR products in the coming years [4]

Summary of AI Smart Glasses Industry Conference Call Industry Overview - The smart glasses market is projected to reach 5 million units in sales by 2025, potentially doubling in 2026, indicating strong market potential for the integration of AI with smart glasses [1][2] - The global optical and sunglasses market is substantial, with demand expected to reach 2 billion pairs in the next three to five years, leading to a market space of 1 billion units for smart glasses [1][9] Core Insights and Arguments - Smart glasses are categorized into three main types: audio glasses, shooting glasses, and AR glasses, with a focus on shooting glasses due to their advantages in mass production, cost, and functionality [1][5] - The integration of functions in smart glasses is significant, allowing them to replace TWS earbuds and action cameras, monitor health metrics, and provide features like e-book reading and projection [1][8] - The combination of AI technology with smart glasses enhances human-computer interaction, making them effective personal assistants [3][4] Market Dynamics - The smart glasses industry has seen rapid growth, particularly benefiting from advancements in AI models, with sales reaching 1.52 million units in 2024 [2] - The average price of smart glasses, such as Xiaomi's priced at 1999 yuan, is considered reasonable given the quality of components used [15] - By 2035, it is estimated that 70% of traditional glasses will be smart, potentially leading to a market size of 1.4 billion units [9] Key Players and Competitive Landscape - Major companies involved in the smart glasses sector include Meta, Google, ByteDance, Baidu, Alibaba, and smartphone manufacturers like Xiaomi, Samsung, and Huawei [10][12] - The entry of various players, including those from VR/AR backgrounds, indicates a growing interest and investment in the smart glasses market [11] Technological Innovations - Electronic tinting technology is highlighted as a significant future direction for smart glasses, enhancing usability in various scenarios [16][17] - The application of waveguide technology is crucial for the development of lightweight and efficient display systems in smart glasses [19][23] Challenges and Opportunities - The traditional eyewear industry faces challenges in customization and the complexity of fitting processes during the transition to smart glasses [27] - The shift towards smart glasses is expected to increase industry concentration, with a few leading companies dominating the market [28][29] Future Trends - The smart glasses market is anticipated to become more concentrated, with leading companies collaborating with established brands to enhance market share and product value [28][29] - The demand for higher quality components, such as lenses with increased refractive indices, will drive up product prices and influence the entire supply chain [28][29]

Core Viewpoint - The smart glasses industry is rapidly evolving, with significant growth potential in various applications, including industrial, military, emergency response, and public health monitoring. The global shipment of smart glasses is projected to reach 14.518 million units by 2025, with China showing a particularly promising market growth trajectory [1][4][6]. Industry Definition and Classification - Smart glasses are wearable devices that integrate optical display technology, sensors, computing units, and wireless connectivity, providing information interaction and immersive experiences. They can be classified by function (XR glasses, AI smart glasses, ordinary smart glasses), by device type (camera-equipped, non-camera, display-equipped), and by interaction method (voice, touch, eye movement) [1][10]. Industry Development Status - The smart glasses market is experiencing robust growth, with global shipments expected to reach 14.518 million units by 2025. In China, shipments are projected to rise from approximately 680,000 units in 2023 to 1.307 million units in 2024, and further to 2.907 million units in 2025. Audio and audio-capturing glasses are expected to account for 2.165 million units, while AR/VR devices are projected to reach 742,000 units [4][8]. Industry Value Chain - The smart glasses industry value chain includes upstream components such as lenses, frames, and key electronic parts (optics, chips, displays, sensors, etc.), midstream manufacturing of smart glasses systems and terminals, and downstream sales through traditional optical channels and e-commerce. Applications span various sectors, including media, healthcare, military, and personal use [10]. Industry Policies - The industry is supported by various government policies aimed at enhancing product quality, innovation, and market competitiveness. Recent initiatives include promoting high-value product exports, upgrading consumer electronics standards, and encouraging the development of smart wearable devices in various applications [12][14]. Industry Competitive Landscape - Major players in the smart glasses industry include GoerTek, Jiahe Intelligent, Skyworth Digital, and others. These companies are investing in R&D and production capacity for smart glasses, with GoerTek and Jiahe Intelligent leading in production capabilities. The market is characterized by competition from both domestic and international tech giants [15][18]. Industry Development Trends - The smart glasses market is expected to see advancements in AR/VR technologies, with a focus on enhancing user interaction through AI integration and visual enhancement. The industry is poised for rapid growth, driven by technological innovations and an expanding consumer market [24].

Group 1 - Global AR glasses sales are expected to reach 650,000 units in 2025, representing a 30% year-on-year growth, with AI+AR glasses using waveguide technology being the main growth driver [1] - In 2024, global AR sales are projected to be 500,000 units, with 112,000 units sold in Q1 2025, and a potential to exceed 1.5 million units by 2027 [1] - The AR near-eye display system includes various optical imaging modules, with diffractive waveguides emerging as the most promising optical solution due to their lightweight and high light transmittance [2] Group 2 - The SiC substrate industry is experiencing significant capacity expansion, particularly among Chinese companies, with local production expected to grow over 40% in 2024 [3] - The global SiC substrate market is highly concentrated, with four major companies—Wolfspeed, Tianke HeDa, TianYue Advanced, and High意科技—holding a combined market share of 82% [3] Group 3 - The AR glasses market is primarily driven by consumer penetration, with ongoing advancements in waveguide and micro-display technologies expected to lead to lightweight and cost-effective solutions [4] - Recommended companies in the AR industry include waveguide manufacturers such as GoerTek, Crystal Optoelectronics, Lante Optics, and SuDa WeiGe, as well as SiC manufacturers like Sanan Optoelectronics, JingSheng Mechanical and Electrical, and TianYue Advanced [4]

Core Insights - The report highlights the rapid evolution of consumer-grade AR glasses, driven by advancements in optical display and AI integration, leading to a competitive landscape among various manufacturers [1][2][4]. Industry Status - Continuous R&D investment in the AR sector by domestic and international companies is fostering technological innovation and product development. Major players include internet giants, smartphone manufacturers, and AR startups, with a significant shift towards AI integration in AR glasses [2][19]. - The domestic AR glasses market is characterized by a strong presence of local brands such as Starry Sky Meizu, Thunderbird Innovation, XREAL, Rokid, and INMO, collectively referred to as the "Five Little Dragons" of AR glasses, which are rapidly gaining market share against foreign competitors [2][19][21]. Market Overview - In 2024, AR glasses sales reached 286,000 units, with Q4 witnessing record-high sales due to new product launches. Leading brands dominate the market, each carving out niches based on specific advantages [2][23][26]. - The market is expected to maintain momentum into 2025, with ongoing product innovations enhancing portability, functionality, and technology [23][29]. Company Analysis - The report provides an in-depth analysis of leading brands such as Starry Sky Meizu, Thunderbird Innovation, and XREAL, focusing on their product launches, technological advancements, and ecosystem collaborations [3][34][46]. - Starry Sky Meizu is noted for its significant investment in optical waveguide technology and AI integration, positioning itself as a leader in the AR glasses market [42][44]. Technological Trends - Optical waveguide technology is identified as a key driver for the future of consumer-grade AR glasses, offering advantages in lightweight design, high transparency, and display quality [8][50]. - The integration of AI into AR glasses is enhancing user experience and expanding application scenarios, making these devices more appealing to consumers [51][52]. Competitive Landscape - The competitive dynamics of the AR glasses market are influenced by short-term hardware specifications and popular products, while long-term success will depend on cross-device collaboration, developer ecosystems, and data asset depth [55].