Proposed issuance of 0.375 billion yuan convertible bonds

Among them, the smart glasses store construction and upgrading project has a total investment of 0.35 billion yuan, and it is proposed to use 0.18 billion yuan of capital raised; the total investment of the headquarters operation management center and brand building project is 0.23 billion yuan, and the total investment of the digital platform upgrade and construction project is 0.09 billion yuan, and it is proposed to use 0.07 billion yuan of raised capital to supplement the working capital of 0.055 billion yuan. billion yuan.

Demand for smart glasses products continues to increase, seizing the intelligent market opportunities in the industry along with the rapid development of the smart electronics market and AI models such as Deepseek, ChatGPT, Kimi, and Tongyi Qianwen. Technological progress has injected powerful computing power and intelligent functions into smart glasses, gradually evolving from simple information display devices to smart terminals integrating multiple functions such as voice interaction, real-time translation, AR navigation, health monitoring, and smart assistants. The future prospects for AI smart glasses are becoming more and more broad. Currently, in addition to traditional smart hardware manufacturers, Internet companies and consumer electronics manufacturers are also entering the smart glasses field. As the number of manufacturers entering the smart glasses field continues to increase, smart glasses are expected to enter a period of intensive new product launches in 2025.

As a representative product of AI smart glasses, Ray-Ban Meta has sold more than one million units worldwide since its release, successfully drawing the attention of the industry and market to the AI smart glasses circuit. Domestic Internet, consumer electronics, and AR smart hardware manufacturers, including Huawei, Xiaomi, Thunderbird Innovation, Rokid, Xreal, Li Weike, and Meizu, have continued to upgrade their AI glasses, and have released a variety of smart glasses products in recent years.

According to Wellsenn data, global sales of AI smart glasses will reach 2 million pairs in 2024. It is expected that starting in 2025, the market penetration rate of AI smart glasses will rapidly increase, global shipments will further increase to 4 million pairs, and the global sales scale of AI smart glasses is expected to reach 80 million pairs by 2030.

Improve the consumer shopping experience and promote the continuous growth of store sales revenue. Currently, due to the long time they have been in business, some of the company's stores have problems such as the door logo and interior and exterior decoration style already looking old. As a place of direct connection between the company and consumers, chain stores represent the company's overall brand image. In order to enhance the overall image of the company's stores and create a better shopping environment for customers, the company plans to upgrade some of the existing old stores. Through upgrading and renewal, the company plans to introduce a new product display and display system, unify the overall decoration style of old and new stores, enhance the professional store image of the company's stores, and create a more comfortable and better shopping environment for customers.

Accelerate online and offline integration to promote business innovation and growth

The company continues to improve the layout of the local lifestyle service platform, deeply meet consumers' local living needs through refined operation, optimize group purchase products, and increase drainage efforts, accelerate the development of online and offline integration, and promote the company's omni-channel layout. This series of measures has significantly improved the company's market coverage and service capabilities, and provided consumers with a more convenient and efficient shopping experience.

Maintain profit forecasts and maintain “buy” ratings

The company is a chain business specializing in eyewear retail. It is committed to providing consumers with fashionable and personalized eyewear products and professional visual health solutions. The current fund-raising investment projects are all closely revolving around the company's current main business. The implementation of the project is conducive to further improving the company's business scale and core competitiveness, and enhancing the company's sustainable development capabilities.

We expect the company's 24-26 EPS to be 0.69/0.8/0.97 yuan/share, respectively, and the corresponding PE will be 81/70/58x, respectively, to maintain a “buy” rating.

Risk warning: Project progress falls short of expectations; market competition increases risk; risk of changes in shareholder structure; risk of declining cash flow conditions.