Investment Rating - The investment rating for the home appliance industry is "Positive" (maintained) [1] Core Insights - The report emphasizes the rapid implementation of AI and smart hardware, highlighting the transition of domestic brands from followers to leaders in the global market. Companies like YingShi Innovation, Anker Innovation, and XGIMI are identified as key players [4][8] - AI technology is reshaping product definitions in the home appliance and smart hardware sectors, enhancing product performance and user experience while accelerating global expansion [8] Summary by Sections AI + Smart Hardware - The report focuses on the "redefining products" direction of AI + smart hardware, with domestic brands making significant strides in global markets. Companies such as YingShi Innovation, Anker Innovation, and XGIMI are highlighted as representatives of this trend [4][8] AI + Photography - YingShi's "YingLing" panoramic drone launched in December 2025 achieved over 30,000 units shipped in its first month, confirming its potential as a blockbuster product. AI technology is expected to lower creative barriers and optimize effects, driving growth in the smart imaging sector [9] AI + Office and Audio - Anker's collaboration with Feishu to launch the AI recording device aims to penetrate the business market by leveraging Feishu's enterprise customer resources. Additionally, Anker's Soundcore Sleep A30 headphones utilize AI to generate personalized sleep soundscapes, enhancing their practical performance [12] AI + Security and Energy Storage - Anker's Eufy Security system has achieved multi-dimensional recognition capabilities for humans, pets, and vehicles, enhancing home security management efficiency. The SOLIX V1 Smart EV Charger optimizes energy efficiency through AI-driven scheduling and gesture recognition [17] AI + Glasses - The report notes a surge in AI glasses products from companies like XGIMI and TCL, with a focus on lightweight and practical designs. The market is in a penetration acceleration phase, with diverse product definitions emerging [19] Market Performance - The home appliance sector saw a 2.0% increase in January 2026, outperforming the CSI 300 index by 0.4%. Sub-sectors such as black appliances and kitchen appliances showed notable monthly gains of 13.4% and 5.4%, respectively [21][22] Key Data Tracking - As of January 23, 2026, the Chinese yuan appreciated by 149 basis points against the US dollar, continuing its upward trend. The LME copper spot price was $12,921 per ton, reflecting a week-on-week decrease of 0.6% but remaining at a high level [24][28]