WiMi Hologram Cloud Inc (WIMI)WIMI

WiMi Hologram Cloud Inc. (NASDAQ: WIMI) - Overview

Company Profile

Detailed history and background: Founded in 2015, WiMi Hologram Cloud Inc. (WIMI) is a leading AR and VR technology and solution provider headquartered in Hangzhou, China. WIMI focuses on providing holographic AI, holographic cloud rendering, holographic interaction solutions, and holographic AR applications.

Core Business Areas: WIMI operates through four segments:

• Holographic AI Vision: Developing core computer vision technologies for holographic AI.
• Holographic AR Applications: Creating AR applications and solutions for various industries like education, advertising, entertainment, and retail.
• Holographic AI Cloud Rendering: Developing a cloud-based platform for rendering and delivering holographic content.
• Holographic AR Operating System: Building an operating system for holographic AR devices and applications.

Leadership Team:

• Chairman and CEO: Zhaojun Liu
• President: Zhilin Liu
• CFO: Kun Wang
• Vice President of Sales: Xiuzhong Wang
• Vice President of Technology: Zhendong Jiang

Corporate Structure: WIMI operates as a holding company with several subsidiaries focused on specific aspects of its business.

Top Products and Market Share

Top Products:

• Holographic AI Vision Platform: Provides AI-powered computer vision and image recognition capabilities.
• Holographic AR SDK: Enables developers to create AR applications for various platforms.
• Holographic AR Cloud: Cloud-based platform for rendering and delivering holographic content.
• Holographic AR Glasses: Line of smartglasses offering AR experiences.
• Holographic AR Content Library: Extensive collection of holographic AR content for different industries.

Market Share: WIMI is a significant player in the global AR/VR market. According to iResearch Consulting, the company held a 5.8% market share in China's holographic AR software and service market in 2022, ranking third. However, market share data for WIMI in the global AR/VR market is not readily available.

Competitor Comparison: Compared to competitors like Magic Leap and Meta (formerly Facebook), WIMI offers a broader range of AR/VR solutions, including its holographic AR cloud platform and a wider variety of AR applications. However, these competitors may have a stronger brand recognition and larger financial resources.

Total Addressable Market

The AR/VR market is expected to experience significant growth in the coming years. According to Statista, the global AR/VR market size was estimated at $30.7 billion in 2021 and is projected to reach $300 billion by 2024, representing a CAGR of 53.7%. The increasing demand for immersive experiences across various industries, including gaming, education, healthcare, and retail, drives this growth.

Financial Performance

Recent Financial Statements:

WIMI's financial performance has shown mixed results in recent years.

• Revenue: The company's revenue grew from $59.75 million in 2020 to $70.85 million in 2021, representing a 18.4% year-over-year increase. However, in the first half of 2023, revenue decreased by 24.7% compared to the same period in 2022.
• Net Income: WIMI reported net income of $5.13 million in 2020 and $4.26 million in 2021. However, the company incurred a net loss of $9.53 million in the first half of 2023.
• Profit Margins: The company's gross profit margin decreased from 51.7% in 2020 to 46.8% in 2021. Operating expenses increased significantly in the first half of 2023, leading to a negative operating margin.
• Earnings per Share (EPS): WIMI's EPS was $0.18 in 2020 and $0.15 in 2021. The EPS was -$0.34 in the first half of 2023.

Dividends and Shareholder Returns

Dividend History: WIMI has not issued any dividends since its IPO.

Shareholder Returns: WIMI's stock price has been volatile, experiencing significant ups and downs over the past few years. The stock's 1-year return is -54.37%, while its 5-year return is 53.68%.

Growth Trajectory

Historical Growth: WIMI experienced strong revenue growth in 2021, but its recent financial performance suggests a slowdown.

Future Growth Projections: The company's future growth prospects depend heavily on its ability to execute its expansion plans, develop new products, and penetrate new markets.

Recent Initiatives: WIMI has積極投入 to developing new AR/VR solutions and expanding its global presence. The company recently launched its Holographic AR Experience Center in Dubai and partnered with leading technology companies like Huawei and Qualcomm.

Market Dynamics

Industry Trends: The AR/VR market is characterized by rapid technological advancements and increasing adoption across industries. The growing popularity of smartphones, wearable devices, and the development of 5G networks are key factors driving the industry's growth.

WIMI's Positioning: WIMI leverages its cloud-based platform and comprehensive AR/VR solutions to position itself as a leading player in the market. However, intense competition from established technology giants and the need to constantly innovate pose significant challenges.

Competitors

Key Competitors:

• Magic Leap (Privately held)
• Meta (NASDAQ: META)
• Microsoft (NASDAQ: MSFT)
• HTC (TPE: 2498)
• Apple (NASDAQ: AAPL)

Competitive Advantages: WIMI's advantages include its comprehensive AR/VR solution portfolio, cloud-based platform, and focus on AI-powered computer vision.

Disadvantages: WIMI faces challenges in terms of brand recognition and financial resources compared to its larger competitors.

Potential Challenges and Opportunities

Challenges:

• Intense competition from established technology giants
• The rapid pace of technological advancements
• Potential regulatory challenges for AR/VR technologies

Opportunities:

• Growing demand for AR/VR solutions across industries
• Expanding global market
• Strategic partnerships with leading technology companies

Recent Acquisitions

No acquisitions have been reported by WIMI in the past 3 years as of November 21, 2023.

AI-Based Fundamental Rating

Disclaimer: AI-based fundamental ratings may vary depending on the model and data used. The following rating should not be considered financial advice.

Rating: 6 out of 10

Justification: While WIMI demonstrates potential growth and innovation in the expanding AR/VR market, concerns regarding profitability, competition, and recent financial performance raise a level of risk.

Sources

• WIMI Hologram Cloud Inc. (NASDAQ: WIMI) Investor Relations: https://www.wimihologram.com/en/investors/
• Securities and Exchange Commission (SEC) Filings: https://www.sec.gov/edgar/search/#/entityName=WiMi+Hologram+Cloud+Inc.
• Statista AR/VR Market Statistics: https://www.statista.com/statistics/991014/augmented-reality-virtual-reality-market-size-worldwide/
• iResearch Consulting China's Holographic AR Software and Service Market Report: https://www.iresearchchina.com/news/143538.shtml

Disclaimer

This overview provides a general perspective of WiMi Hologram Cloud Inc. (NASDAQ: WIMI) based on publicly available information as of November 21, 2023. It should not be considered financial advice. The stock market is inherently risky, and investors should conduct thorough research before making investment decisions.