HONG KONG, Aug. 18, 2020 (GLOBE NEWSWIRE) — MobiusTrend, a market research organization in Hong Kong, recently released a research report on ‘WIMI’s Holographic AR Technology Gains High Expectations‘. What can AR do? Using virtual and reality combination feature of AR, digital and virtual objects are superposed into the real environment through AR devices, which are used to display navigation, demonstration, and display. Through the real-time interaction capability of AR, the real-time and dynamic interactive operation can be carried out between AR devices and the augmented reality environment. AR has the ability of 3D registration, which can precisely match the computer-generated virtual objects with the real environment.

WIMI has established relatively complete systems, including holographic technology research and development system, holographic content production and reserve system, and holographic commercial development system. WIMI has 132 holographic related patents, 214 software copyrights, 4654 holographic content with high quality, and 513 business partners. Meanwhile, its holographic business income reached 300 million in 2019. Besides, it was listed on NASDAQ in 2020, and it is the first stock of the holographic concept. With the development of 5G holographic communication, WIMI holographic cloud gains high expectations. According to the prospectus, we can see a real WIMI.

1. Outstanding operating revenue

According to the annual report, the WIMI business began to gradually increase its volume in 2017, with revenues of 192 million yuan, 225 million yuan, and 319 million yuan respectively in 2017-19, with growth rates of 17% and 41%, respectively, showing an accelerating momentum. In terms of net profit, from 2017 to 2019 years, they were 73 million yuan, 89 million yuan, and 102 million yuan, respectively.

In the year ended December 31, 2019, holographic AR ads using the company’s advertising solutions generated approximately 9.7 billion views, up 47.0% from about 6.6 billion views in 2018.

From the above data, it is not difficult to see that the business growth of WIMI as a whole is in a healthy development trend. From 2017 to 2019, the financial revenue of the three years has been increasing continuously. The amount of revenue generated from this market is increasing, and the market expansion is expanding.

2. The entertainment and advertising markets in WIMI application scenarios have huge potentials

In 2016, the application market size of holographic AR in China’s entertainment industry was 600 million yuan (CNY), which is expected to grow at a CAGR of 83.5% in 2016-2020 and 92.8% in 2020-2025, reaching 180 billion yuan (CNY) in 2025. This growth is attributed to the growing popularity of entertainment radio programs, particularly live radio programs, including ceremonies, concerts, and sporting events, where AR has great potential. Besides, enhanced live streaming capabilities from smartphones and other portable digital devices have also contributed to the growth.

The AR in the game will target at interactive games involving multiple players. The more popular AR mobile games will be released with strong IP support. Besides, AR games based on head-mounted displays (“HMD”) will grow rapidly, as the price of HMD drops. Holographic AR will also be more widely used in live broadcasting. In the long run, holographic AR games based on HMD will become the dominant form of gaming. From computer games to concerts, holograms will be used for more live shows.

In 2016, the scale of the holographic AR advertising market reached 900 million yuan in China, and the CAGR is expected to be 71.8% from 2016 to 2020, and 78.9% from 2020 to 2025, reaching 143.9 billion yuan in 2025. The growth has been driven largely by a boom in advertising and new retailing. As advertisers have been pursuing the most cutting-edge visual effects to attract customers, AR applications in advertising have been increasingly diversified.

3. AR advertising revenue and AR entertainment revenue continue to grow

The revenue of WIMI includes the AR advertising services revenue and AR entertainment revenue. AR advertising services use holographic materials, and they are integrated into ads on online media platforms or offline displays.

AR entertainment revenue includes software development kit (“SDK”) payment channel services, software development, mobile game services, and technology development. When the user completes the payment transaction of SDK payment, WIMI will generate relevant income after deducting the payment to the content provider. WIMI also makes money from selling software development services. Revenues generated by mobile games include royalties paid by mobile game licensees and fees collected from game developers who use their game portals.

5G technology enables everything to connect, realizes the communication between large-scale machines, and integrates with various modes of VR/AR. Meanwhile, it brings new experiences in different fields, such as AR live streaming, VR/AR Esports, AR medical treatment, etc. With the use of 5G, VR/AR will be linked with various industries and create greater commercial value for innovative companies like WIMI.

About MobiusTrend

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