Benzinga | Apr 29, 2021 09:04AM EDT

WiMi Hologram FY20 Sales RMB446.8M, Up 140% YoY

WiMi Hologram Cloud Inc. (NASDAQ:WIMI) ("WiMi" or the "Company"), a leading Hologram Augmented Reality ("AR") Technology provider, today announced that it has filed its annual report on Form 20-F for the fiscal year ended December 31, 2020, with the Securities and Exchange Commission (the "SEC").

The Company reported that its revenues increased by approximately RMB 446.8 million, or 140.0 %, from approximately RMB 319.2 million for the year ended December 31, 2019 to approximately RMB 766.0 million (US$ 117.4 million) for the year ended December 31, 2020.The Company reported non-GAAP net income, which is defined as net income (loss) before the impact of stock compensation expenses, of RMB 40.3 million (US$ 6.2 million) for the year ended December 31, 2020. Research and development expenses increased by approximately RMB 66.6 million, or 362.8%, from approximately RMB 18.4 million for the year ended December 31, 2019 to approximately RMB 85.0 million (US$ 13.0 million) for the year ended December 31, 2020. The increase was primarily attributable to the increase in salary, as the Company hired more IT engineers to work on research and development of advanced AR holographic and related projects. In addition, the Company also focused on the research and development of the application of holographic AR technologies in the area of semiconductor, cloud computing, artificial intelligence, big data 5G and other areas, which the Company incurred in outsourced technical development services to focus on developing its technological capabilities in order to maintain its competitive advantages in the AR holographic industry.

Since its inception in 2015, the Company has offered AR-based holographic services and products to cater to customers' needs, focusing on providing an innovative, immersive and interactive holographic AR experience to customers and end users. Since July 2020, the Company has developed its semiconductor business and provided computer chip products and comprehensive solutions for central processing algorithms and related services with software and hardware integration to its enterprise customers. In 2020, the Company generated approximately 44% and 56.0% of its revenues from holographic AR business and semiconductor business, respectively.

Mr. Shi Shuo, the chief executive and operations officer of WiMi, commented, "In 2020, we made three major leaps forward. First, after our successful initial public offering in April 2020, we overcame the impact of COVID-19 in the first half of the year and achieved a robust growth in our revenues in the second half of 2020. As a result, our total revenues in 2020 grew by 140% year-over- year to RMB766.0 million (US$117.4 million). In particular, after we received investment from well-known investment institutions in both the US and Asia, including a company affiliated with Weibo Corporation (NASDAQ:WB),we actively expanded our holographic AR business scope and made meaningful progress in the semiconductor industry."

"Secondly, we have increased our investment in the research and development of holographic AR technology applications, mainly in the specialized fields of automobile AR holographic HUD, 3D holographic pulse LiDAR, head-mounted light field holographic devices, holographic semiconductors, holographic cloud software, holographic automobile navigation, and others. These fields cover multiple segments of holographic AR technologies from holographic automobile AR technology, 3D holographic pulse LiDAR technology, holographic visual semiconductor technology, holographic software development, holographic AR Advertising technology, holographic AR entertainment technology, holographic ARSDK payment, interactive holographic communication and many other aspects of holographic AR technology. Our research and development expenses in 2020 increased significantly, by 362.8% year -over -year to RMB85.0 million, as we worked to enhance our competitiveness and maintain our technology leadership position in the holographic AR industry."

"Thirdly, we have established a huge technology research and development ecosystem in the holographic AR industry through investment and mergers and acquisitions. According to Frost & Sullivan's industry report, the market size of the global holographic AR market will grow rapidly. From 2020 to 2025, the annual growth rate of the market size of AR software & content and AR hardware is expected to be 68.7% and 67.9%, respectively. As a listed company in the holographic AR industry, we have a high global vision. In 2020, through investment in and acquisition of many R&D companies in the holographic AR industry, we have formed a powerful holographic AR technology research and development ecosystem, and are in the process of building a holographic AR industry value chain with great potential for expansion."

The information disclosed in this press release does not purport to be complete and is qualified in its entirety by reference to the Company's annual report on Form 20-F. The annual report, which contains the Company's audited consolidate statements, can be accessed on the SEC's website at http://www.sec.gov and on the Company's investor relations website at http://ir.wimiar.com/.