WiMi Hologram Cloud（WIMI.US） announced its financial results for the six months ended June 30, 2021. Total revenue increased 202.2% to RMB516.2 million (US $79.9 million). Gross profit increased 189.8% to RMB153.1 million (US $23.7 million). Net income increased 40.3% to RMB32.1 million (US $5 million). R&D expenses increased 463.6% to RMB 86.1 million (US$13.3 million).
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."
The new results excited investors.
The consensus on Wall Street is that the Fed will formally begin tapering in November or December amid concerns about the global economic recovery, which has led to increasing weakness in U.S. markets since September, including five straight sessions of declines. But WIMI.US saw its shares jump nearly 20% after reporting its fiscal 2021 interim results.
The reason is very simple, WIMI's financial performance is too prominent. In the 2021 half annual report, WIMI harvested in the half year total revenue growth of 202.2% of ultra-high value added and set a sharp increase in gross profit and net profit data.
Compare that to the middle of 2020. First, about revenue: Total revenue for the six months ended June 30, 2020 was RMB170.8 million last year and the latest half-year reported revenue was RMB516.2 million this year. Then about profits, in the six months ended June 30,2020, the gross profit of WIMI was RMB52.8 million, and the net profit was RMB22.9 million. The semi-annual gross profit announced this year was RMB153.1 million and the net profit was RMB32.1 million, all of which showed significant growth.
Therefore, the biggest amazing thing about the 2021 semi-annual report was that as a company still in the growth stage, not only increased its revenue in the first half of 2021, but also achieved substantial gross profit and net profit growth simultaneously. It is no wonder that this financial report can make investors so excited.
Not satisfied with high growth, develop the "metaverse" and semiconductor business vigorously
Through the financial results, the huge growth rate of WIMI has been very amazing, but as a leading holographic AR enterprise, even if the performance is so bright, WIMI is not satisfied. The results also revealed that it has made great achievements in developing its smart chips and providing software solutions business since September 2020. In the six months ended June 30,2021, about 53.1% of the revenue has come from the semiconductor business, further enhancing the company's competitiveness and it is amazing to grow the semiconductor business in just a year.
In addition to the semiconductor business, another core business also made a major breakthrough in 2021. Not only that, WIMI is also actively layout and development of "metaverse". Due to its certain technical advantages, years of technical accumulation has laid a foundation for WIMI exploration of the metaverse. It specifically established the "Holographic Metaverse Division", while releasing the new AR head-mounted Display (HMD) - "WIMI HoloAR Lens" expands the user experience of holographic AR technology in the metaverse.
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