WiMi Hologram Cloud Inc. reports increased revenue by 202.2% and gross profit by 189.8% in the first half of 2021

Rhea-AI Summary

WiMi Hologram Cloud Inc. (Nasdaq: WIMI) reported impressive financial results for the six months ended June 30, 2021. Total revenue surged by 202.2% to RMB516.2 million (US $79.9 million), while gross profit rose 189.8% to RMB153.1 million (US $23.7 million). Net income also increased by 40.3% to RMB32.1 million (US $5 million). Notably, R&D expenses spiked 463.6% to RMB86.1 million (US $13.3 million), reflecting significant investment in technology development. The company anticipates continued strong growth driven by demand in the holographic AR market.

Positive

• Total revenue increased 202.2% to RMB516.2 million (US $79.9 million) for the six months ended June 30, 2021.
• Gross profit rose 189.8% to RMB153.1 million (US $23.7 million) for the same period.
• Net income increased 40.3% to RMB32.1 million (US $5 million) for the six months ended June 30, 2021.
• The semiconductor business contributed approximately 53.1% of total revenue.
• Customer base for holographic AR business grew from 175 to 298.

Negative

• R&D expenses increased significantly by 463.6% to RMB86.1 million (US $13.3 million), raising concerns about future profitability.

BEIJING, Sept. 22, 2021 /PRNewswire/ -- WiMi Hologram Cloud Inc. (Nasdaq: WIMI) ("WiMi" or the "Company"), a leading global application solution provider of holographic augmented reality ("AR") comprehensive technology, today announced its unaudited financial results for the six months ended June 30, 2021.

Financial Highlights for the Six Months Ended June 30, 2021

• Total revenue increased 202.2% to RMB516.2 million (US $79.9 million) for the six months ended June 30, 2021, compared to RMB170.8 million for the six months ended June 30, 2020.
• Gross profit increased 189.8% to RMB153.1 million (US $23.7 million) for the six months ended June 30, 2021, compared to RMB52.8 million for the six months ended June 30, 2020.
• R&D expenses increased 463.6% to RMB 86.1 million (US$13.3 million) for the six months ended June 30, 2021.
• Net income increased 40.3% to RMB32.1 million (US $5 million)for the six months ended June 30, 2021, compared to RMB22.9 million for the six months ended June 30, 2020.

Shuo Shi, the Founder and Chief Executive Officer of the Company said, "We believe that the demand for 3D vision in holographic AR applications is growing rapidly, which reflects the huge market potential of holographic AR business. We started to develop smart chips and provide software solutions in September 2020. For the six months ended June 30, 2021, approximately 53.1% of our revenue came from semiconductor business. In addition, thanks to the accumulation of our industry experience, driven by the development of holographic technology and the growing market demand for  holographic 3D visual solutions, our holographic augmented reality (AR) business has also experienced rapid growth in the six months ended June 30,2021, our holographic augmented reality business customers has increased from 175 to 298. For the six months ended June 30, 2021, our overall operating revenue increased approximately 202.2% over the same period in 2020, our gross profit increased by 189.8% year-on-year, and our R&D expenses increased by 463.6% year-on-year. We increase R&D investment and improve the holographic AR technology capabilities  rapidly, in order to maintain the company's leading competitive edge in the AR holographic industry. Looking ahead to 2021, driven by the metaverse and holographic AR industries, we believe that the performance will continue to grow at a high speed."

About WIMI Hologram Cloud

WIMI Hologram Cloud, Inc.(NASDAQ: WIMI) was founded in 2015, which is a holographic cloud comprehensive technical solution provider that focuses on professional areas including holographic AR automotive HUD software, 3D holographic pulse LiDAR, head-mounted light field holographic equipment, holographic semiconductor, holographic cloud software, holographic car navigation, metaverse holographic AR and VR equipment, metaverse holographic cloud software and others. Its services and holographic AR technologies include holographic AR automotive application, 3D holographic pulse LiDAR technology, holographic vision semiconductor technology, holographic software development, holographic AR advertising technology, holographic AR entertainment technology, holographic ARSDK payment, interactive holographic virtual communication, metaverse holographic AR technology, metaverse virtual cloud service, and other holographic AR technologies.

Safe Harbor Statements

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Among other things, the business outlook and quotations from management in this press release, as well as the Company's strategic and operational plans, contain forward−looking statements. The Company may also make written or oral forward−looking statements in its periodic reports to the U.S. Securities and Exchange Commission ("SEC") on Forms 20−F and 6−K, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward−looking statement, including but not limited to the following: the Company's goals and strategies; the Company's future business development, financial condition and results of operations; the expected growth of the AR holographic industry; and the Company's expectations regarding demand for and market acceptance of its products and services. Further information regarding these and other risks is included in the Company's annual report on Form 20-F and current report on Form 6-K and other documents filed with the SEC. All information provided in this press release is as of the date of this press release, and the Company does not undertake any obligation to update any forward-looking statement, except as required under applicable laws.

View original content:https://www.prnewswire.com/news-releases/wimi-hologram-cloud-inc-reports-increased-revenue-by-202-2-and-gross-profit-by-189-8-in-the-first-half-of-2021--301382543.html

SOURCE WiMi Hologram Cloud Inc.

FAQ

What were WiMi's total revenues for the first half of 2021?

WiMi reported total revenues of RMB516.2 million (US $79.9 million) for the first half of 2021.

How much did WiMi's gross profit increase in H1 2021?

WiMi's gross profit increased by 189.8% to RMB153.1 million (US $23.7 million) in H1 2021.

What was the net income for WiMi for the first six months of 2021?

The net income for WiMi in the first six months of 2021 was RMB32.1 million (US $5 million).

What percentage of WiMi’s revenue came from the semiconductor business?

Approximately 53.1% of WiMi's revenue came from the semiconductor business.

How many customers did WiMi's holographic AR business have by June 30, 2021?

By June 30, 2021, WiMi's holographic AR business had increased its customer base from 175 to 298.