Talking about holographic technology, some images in science fiction movies are shown through AR holographic technology. Many cool and avant-garde scenes can be presented through holographic three-dimensional graphics, and the core technology is AR holographic technology. In the “Star Wars” movies, for example, characters communicate in real time via holograms at distances of several galaxies. Now, through holographic projection technology, science fiction is about to shine into reality.
As an emerging industry, the global holographic AR market has great growth potential and has attracted a lot of investment since 2016, making a great contribution to the growth of the industry. Several organizations, including research and development, are investing heavily in the technology to develop solutions for businesses and consumer groups. Over the years, the holographic augmented reality market has been widely used in gaming, media and marketing applications. It is expected to drive demand during the forecast period as it expands in a variety of industries, including advertising, entertainment, education and retail.
Global holographic AR market size by revenue 2016-2025
Note: hardware refers to the revenue of hardware manufacturers, including AR rendering equipment, such as AR glasses, AR helmets, etc., and holographic imaging equipment, such as holographic projectors, holographic cabinets, holographic advertising machines, etc. Software and content refers to the income of participants who provide augmented AR and holographic content, ARSDK or technical services. Source: Frost & Sullivan
At apple’s recent launch event, the iPad Pro added something called Lidar, which took the AR experience to a whole new level. With ARKit, the AR development platform vigorously promoted in recent years, it can be predicted that apple is looking forward to opening a new market in the AR field.
As a great invention, AR attracts many high-tech companies to gather here. On April 1, 2020, WIMI Hologram Cloud (NASDAQ:WIMI) was listed in the NASDAQ global market in the United States with the stock symbol WIMI and a public offering of 5 million ADS. The institutional shareholders are shengshijing investment, Singapore dahua venture capital, yingqu capital and so on. The core of WIMI’s holographic business is holographic AR technology, which is used in software engineering, content production, cloud and big data to provide customers with AR based holographic services and products.
On April 30, WIMI, one of China’s leading holographic cloud platforms, disclosed its fourth-quarter and full-year results for 2019 on NASDAQ. Data show that the growth momentum of WIMI is strong. With the rapid growth of market demand for AR technical services in recent years, the core business of WIMI has also been developing rapidly.
I. Company Introduction
WIMI Hologram Cloud (NASDAQ:WIMI) was founded in 2015, after four years has grown into one of China’s leading holographic cloud integrated technology solutions provider, the company offers from holographic visual AI synthesis and showing holographic AR, holographic interactive software development, advertising, holographic AR SDK pay, 5 g holographic communication software development to the holographic AR technology such as holographic face recognition of one-stop service, business application scenario mainly gathered in home entertainment, light field cinema, performing system, business distribution system and the advertising display system and so on five major areas.
II. WIMI’s revenue is outstanding
According to the annual report, WIMI’s holographic business began to increase gradually in 2017, with the revenue of 192m yuan, 225m yuan and 319m yuan respectively in 17-19 years, with the growth rate of 17% and 41% respectively, showing an accelerating trend. In terms of net profit, it was 73 million yuan, 89 million yuan and 102 million yuan respectively in 17-19 years.
Holographic AR ads using the company’s advertising solutions generated about 9.7 billion views in the year ended Dec. 31, 2019, up 47.0 percent from about 6.6 billion views in 2018.
From the above data, it is not difficult to see that the business growth of the whole company is in a benign development trend, and the financial revenue of the three years from 2017 to 2019 has been continuously increasing. From this aspect of the market, the number of business revenue is increasing and the market expansion is expanding.
III. The entertainment and advertising market in the holographic application scene of WIMI is huge
Currently, AR applications are mainly used in the entertainment, advertising, education and other industries. Its relatively mature hardware environment is very beneficial to the development of software and content in these areas. In the long term, social networking and communications applications will also be available, although they are still limited by hardware technology.
Entertainment: the first industry to use holographic AR was entertainment. Holoar has been warmly welcomed from hatsumi miku, a hologram of the late singer Teresa teng, to the popularity of pokemon GO, AR games, holographic live concerts and fashion shows.
In 2016, the application market scale of holographic AR in the entertainment industry in China is 600 million yuan, and the compound annual growth rate is expected to be 83.5% in 2016-2020, and 92.8% in 2020-2025, reaching 180 billion yuan in 2025. This increase is attributed to the increasing popularity of entertainment radio programmes, particularly live radio programmes, including ceremonies, concerts, evenings and sports events, where AR has great potential. The growth has also been helped by enhanced live streaming capabilities from smartphones and other portable digital devices.
Advertising: there are two types of holographic AR in advertisements: volume 3d display technology and online App. Snapchat and Instagram, for example, have developed AR filters that feature fast-moving consumer goods (” FMCG “) and cosmetics. Another type of advertising is “plug-in” ads in TV shows that promote products by manually adding computer-generated 3D images to the original scene.
In 2016, China’s holographic AR advertising market reached 900 million yuan, with an estimated cagr of 71.8% in 2016-2020 and 78.9% in 2020-2025, reaching 143.9 billion yuan in 2025. In 2016, China’s holographic AR advertising market reached 900 million yuan, with an estimated cagr of 71.8% in 2016-2020 and 78.9% in 2020-2025, reaching 143.9 billion yuan in 2025. The growth was driven largely by a boom in advertising and new retail. As advertisers have been pursuing the most cutting-edge visual effects to attract customers, AR applications in advertisements are continuously developing into a diversified one.
Volume 3d displays, which account for some of the share of offline advertising, are widely used in retail stores because they have more striking effects than traditional displays. With the boom in short video apps in China, sponsor filters in social networking apps will continue to grow. In the long term, holographic AR advertising will become more interactive, and volume 3d displays will continue to take up a larger share and appear as larger projections. Without headgear and other electronic devices, advertisers can interact with their customers. According to the market size obtained from the above big data research, weimei holographic cloud products are expected to achieve continuous growth in the next few years.
As China’s leading holographic augmented reality application platform, WIMI. US has a huge market potential in the AR value chain. With cutting-edge technical capabilities, high-quality user experience, and an experienced management team, we have built the most comprehensive and diverse content library among holographic AR solution providers, which is expected to grow continuously over the next few years.
IV. Equity structure
According to the annual report, the most recent equity disclosure is based on 118,111,133 common shares issued as of the date of the annual report, comprising 20,115,570 class A common shares and 97,995,563 class B common shares.
Zhao jie, founder of WIMI, holds 46.9% of the shares (among which, he passed Vital Success Global Ltd.). And Wonderful Seed Ltd. Holding 31.6% and 15.3% of the shares respectively), the company’s largest shareholder, with 82.6% of the voting rights;
Shengshijing is the company’s second largest shareholder, with Guosheng Holdings Limited holding 18.4% and 6.0% voting rights.
China-asean investment fund is the company’s third largest shareholder, with two of its GP holding a total of 8.8% of the company’s shares and a total of 2.9% of the voting rights.
Kingsoway Group (HK) Limited holds 1.5% of the shares and holds 0.5% of the voting rights;
Meng fanhua, CEO of WIMI, holds 1.0% of the shares and does not disclose voting rights.
According to the disclosure, with the change of the bandwidth of 5G holographic communication network, the 5G holographic application market will usher in an explosion, and high-end applications such as holographic interactive entertainment, holographic conference and holographic release conference will gradually spread to holographic social communication, holographic communication, holographic navigation and holographic home applications. Based on holographic AI face recognition technology and holographic AI face exchange technology as the core technologies, WIMI plan supports holographic cloud platform services and 5G communication holographic applications with a number of innovative systems.
WIMI constructs a real-time modeling system for multi-angle shooting: it carries out full-dimensional image scanning on the collected objects and synthesizes them into a 3d model in real time. Six – degree matrix optical field system: a holographic virtual image imaging field is constructed by the comprehensive application of multiple light sources. Binocular parallax intelligent enhancement system: during the acquisition process, the object trajectory is dynamically tracked and the light is adjusted to maintain the equilibrium value of binocular difference. Multi-image dynamic fusion system: multi-dimensional wide-angle image acquisition technology in narrow space, applied to cloud vision miniaturization holographic warehouse. High speed holographic image processing algorithm: the image information is processed at high speed, and the rendering effect is guaranteed. The processing rate is up to 10GB/ s. Stealth polyester optical imaging film: the key component of holographic imaging, enabling perfect holographic imaging display. Holographic virtual figure painting sound reconstruction technology: the use of human bone dynamic capture, real-time image rendering, speech recognition technology, voice simulation technology to present virtual people. Holographic cloud platform: an interactive platform with data storage, image restoration and holographic social attributes, covering image acquisition and restoration in China. WIMI builds a complete 5G holographic communication application platform based on the above system combination to support various online terminal and personal device applications, and at the same time to expand various mainstream 5G holographic applications such as holographic social communication, holographic family interaction, holographic star interaction, holographic online education and holographic online meeting.
As the first global holographic AR unit, the profit growth space of WIMI has been opened. Holographic cloud business will be deeply combined with 5G. Under the collaboration of 5G with high rate and low delay, holographic AR’s telecommunication and data transmission will be guaranteed without jam and multi-terminal remote coordination, making end-cloud collaboration more efficient. The core technologies based on 5G+AI face recognition technology and holographic AR will be effectively increased by supporting holographic cloud platform services and 5G communication holographic applications through a number of technologically innovative systems.
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