Orient: Smart glasses are an important scenario for the landing of AI on the side, and we are optimistic about the narrative of the AI application industry.

Orient's research report states that from CES to Meta's plan to expand production, it once again confirms that smart glasses are one of the important scenarios for AI landing on the edge, and continues to be optimistic about the glasses industry chain; at the same time, it continues to be optimistic about leading cross-border e-commerce companies with new product-driven logic. At the same time, the bank continues to be optimistic about the global important industrial narrative of AI applications, B2B cross-border e-commerce companies apply AI to increase revenue and are expected to layout AI buyer-side tools, and B2C cross-border e-commerce companies apply AI to empower business efficiency. Orient's main points are as follows: Chinese AI smart glasses made a stunning appearance at CES, Meta plans to expand production capacity for smart glasses 1) From January 6-9, CES 2026 was held in Las Vegas, USA, with a total of over 4,500 exhibitors, including about 1,000 from Chinese companies. 2) This year's CES smart glasses became a hot trend, with Chinese brands accounting for over 90% of the core exhibition area (LVCC Central Hall), with over 50 companies such as Rokid, Xgimi, INMO, Rokid, Meizu, Ali, etc. participating. 3) Three core highlights: Rokid innovatively launched the world's first binocular full-color AR glasses with eSIM function, integrating eSIM communication module and 4G protocol support, achieving independent operation ability without the need for a phone; Rokid launched a new AI glasses product Rokid Style for overseas markets, weighing only 38.5 grams; Xgimi Technology launched the smart glasses brand MemoMind, with the Memo Air Display weighing only 28.9 grams. 4) Meta and Luxottica plan to increase the production capacity of AI smart glasses to 20 million pairs or more by the end of the year; at the same time, they are discussing the capability to further establish a capacity of over 30 million pairs annually if demand is strong enough. Optimistic about the acceleration of smart glasses development and the glasses industry chain benefiting in advance 1) The bank estimates that the global shipment volume of smart glasses (including audio, photography, display) is expected to increase from 9.93 million pairs in 2025 to 86.9 million pairs in 2030, and the corresponding market size is expected to increase from 19.7 billion yuan to 161.2 billion yuan, with a CAGR of 50%. 2) The bank believes that: Smart glasses are standardized products, with consumers' nearsightedness and astigmatism degrees differing, smart glasses brands need to customize in cooperation with glasses companies to reach end consumers; Weight is one of the important factors affecting consumer decisions, glasses companies that can produce ultra-thin lenses and master fitting technology have a crucial position in the industry chain; Consumer education for smart glasses relies more on offline channels, and glasses retailers with channel network advantages are equally crucial. Anker Innovations Technology, Ugreen Group Limited, Shenzhen Hello Tech Energy and other leading cross-border companies released important categories at CES 1) Anker Innovations Technology exhibited flagship new products in fields such as charging storage, audio-visual entertainment, smart homes, etc., and four products won the CES Innovation Award. 2) Ugreen Group Limited launched storage, security, and charging series, constructing a new smart ecosystem, with the NAS iDX6011 and iDX6011 Pro series featuring high-performance hardware configurations, integrating powerful local artificial intelligence capabilities, and redefining the product form of consumer-grade AINAS; and for the first time systematically showcasing the SynCare smart home security ecosystem. 3) Shenzhen Hello Tech Energy's "comprehensive consumer-grade light storage" strategy, releasing a variety of new products including CECEP Solar Energy pavilion Jackery Solar Gazebo, light storage Mars Siasun Robot & Automation Jackery Solar Mars Bot, portable CECEP Solar Energy generator Jackery Explorer 1500 Ultra, etc. Risk warning: intensifying industry competition, commercialization of AI applications falling short of expectations, lower than expected penetration rate of smart glasses, etc.