Mon, 22 Jul 2019

NEW YORK, NY / ACCESSWIRE / July 8, 2019 / The IPO prospectus of WiMi Hologram Cloud listing in the US capital market has been made public, whose net profit in 2018 exceeded 89 million Yuan, with two consecutive years of profit. Net profit increased by 68% in the first quarter of 2019 compared with the same period last year, and the room for profit growth is large. With the development of 5G holographic communication, the future development of WiMi Hologram Cloud is expected to be explosive strongly, which has only been established for only four years.

According to the reports from ID: iponews, WiMi Hologram Cloud has integrated developers, operators and operators of holographic AI cloud software, and has become one of the largest holographic AI integration platforms at home and abroad. If there is no chip, it is difficult to be combined with the algorithm, and in the process of doing this, the boundary is fuzzy. With the continuous evolution of technology, more requirements have been put forward for the continuous deepening of the scene. At the present stage, a key scene will be selected for the Internet of things, and the HashRate and application services will be better combined.

(Source: ID: iponews)


It is shown in the prospectus that:

According to the reports from Frost & Sullivan, as far as gross revenue in 2018 is concerned, WiMi Hologram Cloud was the largest holographic AR application platform in China. By using of its powerful technical capabilities and infrastructure, the company is capable of providing with excellent products and services, and operating in an efficient manner. The core business of WiMi Hologram Cloud has been applied in software engineering, media manufacturing services, cloud and big data with holographic AR technology.

Revenue Situation

Revenue of the WiMi Hologram Cloud mainly comes from the revenue from AR advertising and AR entertainment. The profit situation of WiMi Hologram Cloud was quite outstanding, with net profit rising from 73.33 million Yuan for the whole of 2017 to 89.21 million Yuan for the whole of 2018. Net profit increased by 15.26 million Yuan, with 68.7 percent of growth rate, which rose from 22.22 million Yuan in the first quarter of 2018 to 37.49 million Yuan in the first quarter of 2019. The gross income of WiMi Hologram Cloud rose from 49.22 Yuan in the first quarter of 2018 to 78.49 Yuan in the first quarter of 2019, which increased by 29.26 Yuan with 59.5 percent of growing rate. The gross revenue of the company was 225 million Yuan for the whole of 2018.

Factors Affecting Operating Results

The number of customers of WiMi Hologram Cloud was 485. The ability of WiMi Hologram Cloud to increase the number of customers and the average revenue of AR advertising services can be strongly explained with 121 holographic advertisers in 2018. Compared with the average income of about 1.5 million Yuan per customer gained for the whole of 2018, the average income per customer gained was 1.4 million Yuan for the whole of 2017. In the first quarter of 2018 and 2019, about 80 per cent of WiMi Hologram Cloud revenue came from AR advertising services and intermediate products. The number of advertisers rose by 32.7 percent, from 49 in the first quarter of 2018 to 65 in the quarter of 2019. And additionally, compared with the average income of 700,000 Yuan per customer gained in the first quarter of 2018, it was increased to about 1 million Yuan for per customer in the first quarter of 2019. The ability of the WiMi Hologram Cloud to increase revenue and profitability will depend on the ability to continue to increase its customer base and revenue per customer gained. In order to achieve this goal, WiMi Hologram Cloud has made every effort to increase marketing intensity, and improve technical quality and ability.

Components of Income

Revenue of the WiMi Hologram Cloud includes revenue from AR advertising and AR entertainment. AR advertising services use holographic materials and are integrated into advertisements on online media platforms or offline displays. When the relevant services are delivered in accordance with the specific terms of the contract, revenue will be generated for WiMi.

Revenue from the AR entertainment includes software development kit ('SDK'), payment channel services, software development, game services and technology development. When the user completes the payment transaction by SDK, the related income will be generated after deducting the payment to the content provider. The WiMi Hologram Cloud receives revenue from the sale of software development services.

Value Chain of the AR Holographic Industry

The value chain of the holographic AR industry is made up of three main parts. The upstream section refers to those what related to content production, such as key hardware, software, services and providers as well as participants. The mid-stream participants are providers of holographic AR solutions, which integrates with upstream hardware and software systems, and form final products or solutions. The downstream refers to terminal users, including government, enterprises and family or individual consumers.

The business models of the upstream participants in the holographic AR market are different. While hardware, software and service providers focusing on R&D to further increase their core technologies and reduce production costs, holographic AR device integrators and content creators must also identify target users, build brand reputation and enhance user experience. It is common for some integrators of holographic AR device to have strong internal research capabilities and play a role in the upstream and mid-stream markets.

The WiMi Hologram Cloud has been currently involved in the upstream section, including the development of software, the provision of technology for content production, the creation and distribution of content as well as the mid-stream section, that is, the provision of holographic AR solutions.

Jan@globalnews.com

SOURCE: WiMi



View source version on accesswire.com:
https://www.accesswire.com/551121/The-IPO-prospectus-of-WiMi-Hologram-Cloud-listing-in-the-US-capital-market-was-exposed-with-annual-profit-of-89-million-Yuan

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