Huajin Securities: ByteDance's acquisition of Oladance may enter the AI glasses track.

has released a research report stating that Shenzhen Da Shi Wei Lai Technology Co., Ltd. (Oladance), a leader in OWS technology, has been acquired by ByteDance for 100% equity and has become its wholly-owned subsidiary. Currently, ByteDance has formed an AI product ecosystem including large-model products, AI basic development, AI social, and AIGC creation, all of which rely on the technical support of Doudou large models. The demand for intelligent wearable devices and the rise of generative artificial intelligence large models are pushing AI audio glasses into a broader market. With the user profile of AR glasses still unclear in the short term, intelligent audio glasses, serving as a replacement for headphones, using glasses as a carrier (for vision correction/decoration), coupled with AI to enhance the experience and selling points, are expected to open up a new audio track. The acquisition of Oladance, entering the audio field, may lay the foundation for entering the AI audio glasses market. (1) Audio: Shenzhen Da Shi Wei Lai Technology Co., Ltd. (Oladance) was acquired by ByteDance for 100% equity and has become its wholly-owned subsidiary. In September 2021, as a leader in OpenWearableStereo (OWS) technology, Oladance publicly announced the OWS technology concept for the first time, opening up a new track for wearable devices. OWS earphones are more integrated, compact, and intelligent, integrating small speaker functions highly, positioning them as wearable personal sound devices. By dynamically monitoring and calculating through EQ algorithms, synthesizing multiple sound sources, dynamically processing the phase relationship of the synthesized sound sources, passing sound into the ears, and then compensating for external sound diffusion and enhancing the detail performance of in-ear sound transmission through patented intelligent bass compensation technology. (2) AI: Currently, ByteDance has formed an AI product ecosystem including large-model products, AI basic development, AI social, and AIGC creation, all of which rely on the technical support of Doudou large models. In terms of large model products, there are already 9 types, such as Doudou Universal Model Pro, Doudou Universal Model Lite, Doudou Role-playing Model, Doudou Voice Synthesis Model, Doudou Sound Reproduction Model, Doudou Wen-sheng Image Model. , Doudou Voice Recognition Model, Doudou Vector Model, and Doudou Functioncall Model. In multiple public evaluations and professional third-party evaluations, Doudou Universal Model Pro has performed exceptionally well, ranking as the highest-scoring domestic large model. As of July 2024, the daily token usage of Doudou large models has exceeded 500 billion. MetaRay-Ban's sales exceeded one million, the competition landscape in the AI glasses field may change. The key factors for MetaRayban's success include: the strong support of the Ray-Ban brand, design, and channels, the high cost-effective experience of the POV camera + OWS earphones combination, and the imagination space brought by multimodal AI. Ray-Ban's empowerment in sales channels, appearance design, etc., ensures that the product is willing to be worn by users and secures a minimum sales amount, while Meta's iterations in audio, video, and AI are key to creating higher sales volume for MetaRay-Ban. In addition to Meta, there are already several companies laying out AI glasses: (1) Huawei: Huawei Smart Glasses 2, this product is equipped with the Huawei HarmonyOS 4 operating system, and has access to the Huawei Pangu AI large model, allowing users to wake up Xiaoyi by tapping the frame legs, achieving all-day intelligent experience, supporting intelligent broadcasting of weather, flights, schedules, taxis, etc. (2) Honeycomb Technology (a Xiaomi ecological chain enterprise): Jiehuan 1 is equipped with multiple large models, achieving a unified VUI experience for AI cross-platform interaction through voice interaction, with functions such as AI notification broadcasting, AI chatting, AI pinching, face-to-face translation, etc. (3) Li Weike: in the first half of this year, it launched its first AI glasses - MetaLensChat, priced at 699 RMB. This glasses highlights AI voice interaction capability, allowing users to use voice interaction to help solve work, schedule arrangements, and other functions. According to data from I Love Audio Network, the global smart audio glasses market shipped 3.43 million pairs in 2022, a year-on-year increase of 58.6%, with a market size of 9.1 billion US dollars; the compound annual growth rate (CAGR) of global audio glasses shipments from 2022 to 2030 will reach 13.6%, and it is estimated that by 2025, the global audio glasses market shipments will exceed 5.03 million pairs, reaching 9.51 million pairs by 2030. In the future, if ByteDance launches AI glasses, with its own advantages in AI, audio technology, brand awareness, etc., it will quickly attract market attention and bring competitive pressure to other AI glasses manufacturers, potentially disrupting the existing competitive landscape. Investment recommendation: The growing demand for intelligent wearable devices and the rise of generative artificial intelligence large models are pushing AI audio glasses into a broader market. With the user profile of AR glasses still unclear in the short term, intelligent audio glasses, serving as a replacement for headphones, using glasses as a carrier (for vision correction/decoration), coupled with AI to enhance the experience and selling points, are expected to open up a new audio track. It is recommended to pay attention to companies entering various product supply chains or with related technological reserves. For example, assembly: Goertek Inc. (002241.SZ), Shanghai Longcheer Technology (603005.SH), Emdoor Information (301314.SZ), Cosonic Intelligent Technologies (300793.SZ), etc.; storage: GigaDevice Semiconductor Inc. (603986.SH); camera: SUNNY OPTICAL (02382), Will Semiconductor (603501.SH), etc.; SoC: Bestechnic (Shanghai) Co., Ltd. (688608.SH), Actions Techn.ology(688049.SH) and other products; structural components: Shenzhen Jame Technology Corp.,(300868.SZ), Shenzhen Everwin Precision Technology(300115.SZ).Risk alert: risks associated with the lack of a clearly defined trajectory for technological evolution and industry ecosystem; risks related to the lack of sensitivity to the industrialization process of key forward-looking technologies; risks associated with the underperformance of content ecosystem construction; risks related to lower-than-expected downstream demand.