The IPO prospectus of WIMI Hologram AR listing in the US capital market was exposed with annual profit of 89 million Yuan.
The IPO prospectus of WIMI Hologram AR 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 AR is expected to be explosive strongly, which has only been established for only four years.
According to the reports from We-Media “iponews”, WIMI Hologram AR 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.
Application Platform of WIMI Hologram AR, Source: We-Media ID iponews
The products of WIMI Hologram AR has made the layout on commercial application scenes, which mainly focuses on five professional fields, such as home entertainment, light field cinema, arts performing system, commercial publishing system and advertising display system. The international patent protection scope that WIMI Hologram AR has reached will be guaranteed by strict patent technology protection with the optimal holographic AI simulation experience to ensure that the user experience in Greater China can reach a startling level. Up to now, artificial intelligence industry has not formed a large market, and no enterprise has been capable of achieving the absolute market monopoly. Newly enterprises have been emerging at all times in fields of algorithms, frameworks, chips, modules, accelerators and the like.
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 AR 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 AR has been applied in software engineering, media manufacturing services, cloud and big data with holographic AR technology.
1. Revenue Situation
Revenue of the WIMI Hologram AR mainly comes from the revenue from AR advertising and AR entertainment. The profit situation of WIMI Hologram AR 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 AR 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.
2. Factors Affecting Operating Results
The number of customers of WIMI Hologram AR was 485. The ability of WIMI Hologram AR 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 AR 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 AR 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 AR has made every effort to increase marketing intensity, and improve technical quality and ability.
Investment in technology and talent. WIMI Hologram AR believes that the most important core element of holographic AR industry comes down to research and development related to technological development. Technical progress related to holographic AR will bring holographic AR experience, new services, products and capabilities to a new stage of development. In order to retain existing customers, attract potential customers and keep up with the growth of WIMI Hologram AR business, the company must continue to innovate and promote the development of cutting-edge technology. At present, the research and development work of WIMI mainly focuses on artificial intelligence technology of augmented reality, augmented reality and image processing technology, intelligent hardware technology and photosensitive signal transmission technology, so as to create new services and products.
3. Components of Income
Revenue of the WIMI Hologram AR 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 AR receives revenue from the sale of software development services.
4. 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 AR 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.
5. Competitive Advantages
The AR holographic application platform that WIMI Hologram AR had is in the leading role in China. It is reported by the Frost & Sullivan that the AR holographic application platform that WIMI Hologram AR had has already been the largest one in China judging from the gross revenue in 2017. Based on the data from the Frost & Sullivan, WIMI established the most comprehensive and diversified holographic AR content library among all domestic holographic AR solution providers in 2018. It is in the first place in China holographic AR industry in terms of income, number of customers, holographic AR content, the quantity of holographic AR patent and software copyright. The WIMI Hologram AR has about 4654 AR holographic content, 106 software copyrights and 219 technical patents for the whole of 2018. It is committed to using holographic technology to meet the entertainment and business needs of customers and terminal users According to the reports from Frost & Sullivan, the holographic AR application platform currently operated by WIMI Hologram AR covers the most extensive holographic AR product types in China. The integrated platform application of WIMI Hologram AR is a key factor that distinguishes itself from competitors.
6. Vision for Development
WIMI Hologram AR plans to continue to improve and strengthen existing technologies, maintain its leading role in industry, and create ecological business models. At present, the holographic face recognition technology and holographic facial transplant technology of WIMI Hologram AR have being applied to the existing holographic advertising and entertainment business, and the technology has also being upgraded in order to make breakthroughs in more industries. The goal of WIMI Hologram AR is to establish a commercial ecosystem based on holographic technology application.
The company intends to continue to invest a lot of resources to strengthen the ability to develop holographic AR content. It is committed to enriching holographic content combination and providing high quality holographic experience for its customers and terminal users. The company plans to continue to expand the holographic content library in a variety of ways.
Source: We-Media ID iponews
WIMI Hologram AR has covered plenty of holographic AR technologies range from holographic computer vision AI synthesis, holographic vision presentation, holographic interactive software development, holographic online and offline advertising, holographic ARSDK payment, 5G holographic communication software development to holographic face recognition development and holographic AI face DeepFakes development, which is capable of providing the one-stop service. At present, WIMI Hologram AR has grown up to be one of the largest suppliers of providing the integrated technology solutions in holographic cloud in China.
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