WiMi Hologram Cloud Stock Jumps After Strong Revenue Increase
Sep 22, 2021 By MarketDepth
WiMi Hologram Cloud Inc. (NASDAQ: WIMI) stock increased in value by about 40% after the provider of augmented reality (AR) based holographic services and products in China has announced its unaudited financial results 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.
Net Income Increase
According to the Company’s report, 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, and 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.
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.”
WiMi operates in three segments: AR Advertising Services, AR Entertainment, and Semiconductor Related Products and Services. The company primarily offers holographic AR advertising services and holographic AR entertainment products.