Breaking Down WiMi Hologram Cloud Inc. (WIMI) Financial Health: Key Insights for Investors

Are you keeping a close watch on WiMi Hologram Cloud Inc. (WIMI) and wondering about its financial stability? As of April 8, 2025, the company's stock price stands at $0.31, with a market capitalization of $60.3 million based on 196 million shares [1]. The trailing 12-month revenue as of June 30, 2024, reached $85 million [1]. But how does this translate into overall financial health? Dive in to explore key financial metrics, including a net loss of $57.8 million for the trailing 12 months ending June 30, 2024 [4], and discover whether WIMI is navigating towards profitability.

WiMi Hologram Cloud Inc. (WIMI) Revenue Analysis

WiMi Hologram Cloud Inc. (WIMI) operates primarily in the hologram technology sector. Revenue streams for WiMi can be analyzed by examining its products, services, and geographic performance. Investors should pay close attention to how these segments contribute to the company's overall financial health.

Analyzing WiMi’s revenue involves looking at year-over-year growth rates to understand trends and the impact of different business segments. Shifts in revenue composition can signal strategic changes or market influences. Here’s a breakdown of what to consider:

• Hologram Products and Services: WiMi generates revenue through various hologram-related products and services, including augmented reality (AR) and virtual reality (VR) applications.
• Technology Development and Licensing: A portion of revenue comes from technology development projects and licensing agreements.
• Advertising and Marketing: Revenue is also derived from advertising and marketing services within its holographic ecosystem.

To provide a clearer picture, a detailed table could break down revenue contributions by segment:

Year-over-year revenue growth is a critical metric. A consistent increase indicates strong market demand and effective strategies. However, declines may signal increased competition or changing consumer preferences.

For example, if WiMi's total revenue grew by 12% in 2024, this growth needs to be examined in the context of each segment's performance. A significant increase in AR/VR product revenue might offset slower growth in advertising and marketing services.

Significant changes in revenue streams should be carefully evaluated. For instance, a shift towards more technology licensing revenue could indicate a strategic pivot towards intellectual property monetization. Investors should assess whether these changes align with long-term growth objectives and market opportunities.

For further insights into WiMi Hologram Cloud Inc.'s financial health, you might find this resource helpful: Breaking Down WiMi Hologram Cloud Inc. (WIMI) Financial Health: Key Insights for Investors

WiMi Hologram Cloud Inc. (WIMI) Profitability Metrics

Understanding WiMi Hologram Cloud Inc.'s (WIMI) financial health requires a detailed look into its profitability metrics. This analysis covers gross profit, operating profit, and net profit margins, examining trends, and comparing them against industry standards.

WiMi Hologram Cloud Inc. has shown some interesting shifts in profitability in the first half of 2024:

• Net Income: For the six months ended June 30, 2024, WiMi posted a net income of approximately RMB 12.3 million, a significant turnaround from a loss of approximately RMB 18.4 million in the prior year. In USD, the net income was about $1.7 million for the same period.

However, examining the broader annual figures presents a more complex picture:

• Net Loss: For the twelve months ending June 30, 2024, the company's net loss was -$56.66 million, although this represents a 28.19% increase year-over-year.
• Earnings: WiMi's earnings for the trailing 12 months ending June 30, 2024, were -$57.8 million.

Here's a breakdown of key profitability figures based on available data:

Gross Profit and Margin:

• Gross Profit (TTM as of June 2024): CNY 180.29 million.
• Gross Profit Margin (TTM as of June 2024): 29.49%.

Operating Income and Margin:

• Operating Income (TTM as of June 2024): -CNY 195.72 million.
• Operating Margin (TTM as of June 2024): -32.01%.

Net Income and Margin:

• Net Income (TTM as of June 2024): -CNY 411.33 million.
• Net Profit Margin: -67.27%.

To illustrate the trend in profitability, here's a table summarizing key income statement data:

WiMi Hologram Cloud Inc. has experienced fluctuations in its financial performance. While the net loss decreased year over year, the company is still operating at a loss. The positive net income reported for the first half of 2024 is a notable development, potentially signaling improvements in operational efficiency and market demand for holographic solutions.

For more detailed insights, you can refer to: Breaking Down WiMi Hologram Cloud Inc. (WIMI) Financial Health: Key Insights for Investors

WiMi Hologram Cloud Inc. (WIMI) Debt vs. Equity Structure

Understanding how WiMi Hologram Cloud Inc. (WIMI) finances its operations is crucial for investors. This involves analyzing the company's debt levels, its debt-to-equity ratio, and any recent financing activities.

Here's a breakdown:

Overview of Debt Levels:

• Long-term obligations: As of late 2024, WiMi maintained a relatively low debt level, with long-term obligations around $36 million.

Debt-to-Equity Ratio:

• June 30, 2024: The company's debt-to-equity ratio was reported as 0.2182.
• June 30, 2024 (Restated Data): Another source indicates a debt/equity ratio of 0.22.

Comparison to Industry Standards:

A debt-to-equity ratio of approximately 0.22 suggests that WiMi Hologram Cloud Inc. relies more on equity than debt to finance its assets, which may indicate a more conservative financial approach. It's essential to compare this to industry averages to determine if it's higher or lower than its peers.

Recent Debt and Equity Activities:

• Reverse Stock Split: On April 14, 2025, WiMi executed a 1-for-20 reverse stock split.
• Minimum Bid Price Notice: In November 2024, WiMi received a notice from Nasdaq for not meeting the minimum bid price, but regained compliance by January 8, 2025.
• Strategic Investment: WiMi increased its stake in MicroAlgo Inc. and committed to a ten-year lock-up period for those shares.

Balancing Debt and Equity:

WiMi Hologram Cloud Inc. appears to maintain a balance between debt and equity financing. The relatively low debt-to-equity ratio suggests a preference for equity, which can reduce financial risk. Recent activities, such as the reverse stock split and strategic investment in MicroAlgo, indicate efforts to enhance shareholder value and market confidence.

For more insights into WiMi's mission, vision, and core values, you can check this link: Mission Statement, Vision, & Core Values of WiMi Hologram Cloud Inc. (WIMI).

Here is a table summarizing key financial health indicators for WiMi Hologram Cloud Inc.:

These metrics provide a snapshot of WiMi's financial stability and its ability to meet its short-term obligations.

WiMi Hologram Cloud Inc. (WIMI) Liquidity and Solvency

Assessing WiMi Hologram Cloud Inc.'s financial health requires a close look at its liquidity, which indicates its ability to meet short-term obligations. Key metrics and trends provide insights into the company's current financial standing.

Analyzing WiMi Hologram Cloud Inc.'s liquidity involves examining several key financial ratios and statements:

• Current Ratio: This ratio measures a company's ability to pay off its current liabilities with its current assets. A ratio greater than 1 indicates that the company has more current assets than current liabilities.
• Quick Ratio: Similar to the current ratio, the quick ratio excludes inventory from current assets, providing a more conservative measure of liquidity. This is because inventory may not be easily converted into cash.
• Working Capital: This is the difference between a company's current assets and current liabilities. Positive working capital indicates that a company has enough short-term assets to cover its short-term liabilities.

Here’s a look at how these metrics can be applied to WiMi Hologram Cloud Inc.:

The cash flow statement is another critical tool for evaluating liquidity. It categorizes cash flows into three main activities:

• Operating Activities: Cash generated from the company's core business operations. Positive cash flow from operations is a good sign of financial health.
• Investing Activities: Cash flow related to the purchase and sale of long-term assets, such as property, plant, and equipment (PP&E).
• Financing Activities: Cash flow related to debt, equity, and dividends.

Monitoring these cash flow trends can reveal whether WiMi Hologram Cloud Inc. is generating enough cash to cover its operational needs, investments, and financing obligations. Consistent negative cash flow from operations could signal potential liquidity issues.

For more insights into WiMi Hologram Cloud Inc. and its investors, check out: Exploring WiMi Hologram Cloud Inc. (WIMI) Investor Profile: Who’s Buying and Why?

WiMi Hologram Cloud Inc. (WIMI) Valuation Analysis

Determining whether WiMi Hologram Cloud Inc. (WIMI) is overvalued or undervalued requires examining several key financial metrics and market indicators. These include price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios, stock price trends, dividend yield, payout ratios (if applicable), and analyst consensus.

As of now, comprehensive real-time data for 2024 for these specific metrics for WiMi Hologram Cloud Inc. (WIMI) is not available. However, to provide a relevant and up-to-date analysis, we can consider the general trends and methodologies used to assess valuation.

Valuation Ratios:

• Price-to-Earnings (P/E): This ratio compares a company's stock price to its earnings per share (EPS). A high P/E ratio might suggest that a stock is overvalued, while a low P/E could indicate undervaluation. However, it's essential to compare WiMi's P/E ratio to its industry peers and historical averages.
• Price-to-Book (P/B): The P/B ratio compares a company's market capitalization to its book value of equity. It can help investors determine if they are paying too much for a company's net assets. A lower P/B ratio may suggest undervaluation.
• Enterprise Value-to-EBITDA (EV/EBITDA): This ratio compares a company's enterprise value (total market value plus debt, minus cash) to its earnings before interest, taxes, depreciation, and amortization (EBITDA). It provides a more comprehensive valuation measure than P/E, especially for companies with significant debt.

Stock Price Trends:

Analyzing WiMi Hologram Cloud Inc.'s (WIMI) stock price trends over the last 12 months, or longer, can provide insights into market sentiment and investor confidence. Significant price appreciation might suggest overvaluation, while a declining price could indicate undervaluation or underlying issues with the company.

Dividend Yield and Payout Ratios:

If WiMi Hologram Cloud Inc. (WIMI) distributes dividends, the dividend yield (annual dividend per share divided by the stock price) and payout ratio (percentage of earnings paid out as dividends) can be important valuation indicators. A higher dividend yield might attract investors, but a high payout ratio could be unsustainable if the company's earnings decline.

Analyst Consensus:

Keep in mind that analyst ratings should be viewed as a supplement to your own research and not as a definitive guide. Check what analysts are saying about WiMi Hologram Cloud Inc. (WIMI). The consensus is generally categorized as 'buy', 'hold', or 'sell'.

Without specific 2024 figures, a general approach to determine if WiMi Hologram Cloud Inc. (WIMI) is overvalued or undervalued involves:

• Gathering Current Data: Obtain the most recent financial statements and market data for WiMi Hologram Cloud Inc. (WIMI).
• Calculating Key Ratios: Calculate the P/E, P/B, and EV/EBITDA ratios using the latest data.
• Comparing to Peers: Compare these ratios to those of similar companies in the hologram technology or augmented reality sector.
• Analyzing Trends: Review the company's stock price trends and dividend history (if applicable).
• Considering Analyst Opinions: Evaluate analyst ratings and price targets, but form your own independent opinion.

For more insights into the investors of WiMi Hologram Cloud Inc. (WIMI), see: Exploring WiMi Hologram Cloud Inc. (WIMI) Investor Profile: Who’s Buying and Why?

WiMi Hologram Cloud Inc. (WIMI) Risk Factors

WiMi Hologram Cloud Inc. (WIMI) faces a variety of risks that could significantly impact its financial health. These risks span internal operational challenges and external market dynamics, including industry competition, regulatory changes, and broader economic conditions.

Industry Competition: The holographic technology sector is becoming increasingly competitive. New entrants and established technology companies are vying for market share, which could pressure WiMi's pricing and market position. Intense competition may require increased investment in research and development, marketing, and sales to maintain a competitive edge. If WiMi fails to innovate and adapt quickly, its financial performance could suffer.

Regulatory Changes: Regulatory changes, particularly in data privacy, intellectual property, and technology standards, could pose significant risks. Compliance with new regulations may require substantial investment and could restrict WiMi's operations. For instance, stricter data protection laws could limit the company's ability to collect and use user data, impacting its service offerings and revenue streams. Changes in intellectual property laws could also affect WiMi's ability to protect its holographic technology and defend against infringement claims.

Market Conditions: Economic downturns and market volatility can significantly impact WiMi's financial performance. Reduced corporate spending on holographic solutions during economic contractions could lower demand for WiMi's products and services. Additionally, fluctuations in currency exchange rates could affect revenue and profitability, especially if WiMi expands its international operations. Uncertainty in the global economy could also make it more difficult for WiMi to attract investment and secure financing.

Based on WiMi Hologram Cloud Inc.'s 2023 20-F filing, the company identifies several key risk factors that could affect its business, financial condition, and results of operations. These include:

• Risks Related to Our Business and Industry:
• The COVID-19 pandemic has had, and may continue to have, a material adverse effect on our business, results of operations and financial condition.
• We may not be able to generate sufficient revenues or maintain profitability in the future.
• We may not be able to successfully develop or commercialize our technologies and products.
• We face intense competition and may lose market share.
• Our success depends on our ability to obtain, maintain, protect and enforce our intellectual property.
• Risks Related to Doing Business in China:
• Changes in China’s economic, political or legal environment could have a material adverse effect on our business.
• The laws and regulations of China are uncertain, and any changes to such laws and regulations could adversely affect our business.
• We may be subject to legal and administrative proceedings in China.
• Risks Related to Our ADSs:
• The market price of our ADSs may be volatile.
• We may not be able to pay dividends on our ordinary shares.
• Your right to vote and effect actions as a shareholder are limited.

WiMi's operational risks include challenges in developing and commercializing its holographic technologies. The company must continually innovate to keep pace with technological advancements and evolving customer needs. Delays in product development, technical difficulties, or failure to achieve market acceptance could harm WiMi's financial prospects. Effective project management, robust research and development processes, and strong customer feedback mechanisms are crucial for mitigating these risks.

Financial risks for WiMi encompass its ability to manage cash flow, secure funding, and maintain financial stability. The company may need to raise additional capital to fund its growth initiatives, and there is no guarantee that such funding will be available on favorable terms or at all. Prudent financial planning, cost management, and diversification of funding sources are essential for mitigating these risks.

Strategic risks involve WiMi's ability to execute its long-term business strategy and adapt to changing market conditions. This includes making sound decisions about market expansion, partnerships, and acquisitions. Missteps in strategic planning could lead to missed opportunities, wasted resources, and a weakened competitive position. Strong leadership, effective strategic planning processes, and thorough market analysis are vital for mitigating these risks.

Mitigation strategies often include diversifying revenue streams, hedging against currency fluctuations, and implementing robust risk management frameworks. Companies might also invest in cybersecurity measures to protect against data breaches and intellectual property theft. Regular reviews of risk assessments and proactive adaptation to emerging threats are essential for maintaining financial stability and long-term growth. More information on WiMi Hologram Cloud Inc. (WIMI) can be found here: Exploring WiMi Hologram Cloud Inc. (WIMI) Investor Profile: Who’s Buying and Why?

WiMi Hologram Cloud Inc. (WIMI) Growth Opportunities

WiMi Hologram Cloud Inc. (WIMI) operates within the evolving augmented reality (AR) and holographic technology sectors, where innovation and strategic positioning are crucial for sustained growth. The company's future prospects hinge on several key factors, including technological advancements, market expansion, and strategic collaborations.

Key growth drivers for WiMi include:

• Product Innovations: Continued investment in research and development to enhance the capabilities of its holographic AR offerings.
• Market Expansion: Targeting new geographic markets and industries to broaden its customer base.
• Acquisitions: Strategic acquisitions of complementary businesses or technologies to expand its product portfolio and market reach.

Future revenue growth projections and earnings estimates for WiMi are influenced by the adoption rate of AR technology across various sectors. These projections often reflect optimistic growth in the AR market, but it's essential to consider the competitive landscape and potential technological disruptions.

Strategic initiatives and partnerships that may drive future growth include:

• Partnerships with Technology Providers: Collaborating with leading technology companies to integrate advanced features into its holographic solutions.
• Industry-Specific Solutions: Developing tailored AR applications for sectors such as entertainment, education, and healthcare.

WiMi's competitive advantages that position the company for growth include its established presence in the holographic technology market and its intellectual property portfolio. However, the company faces competition from other AR technology providers and needs to continually innovate to maintain its market position.

For instance, the financial report for the fiscal year 2024 could provide insights into the company's revenue streams from different sectors. Consider this hypothetical breakdown:

This table illustrates a diversified revenue model, which is crucial for mitigating risks associated with over-reliance on a single market segment. Future growth prospects would heavily rely on increasing revenue percentages across all sectors, especially in the burgeoning healthcare and education segments. As of now, detailed financial forecasts extending into late 2024 and beyond would offer a clearer picture, but investors should critically assess these projections, considering the volatile nature of technology markets.

To gain more insights into WiMi Hologram Cloud Inc. (WIMI) and its investors, check out this detailed profile: Exploring WiMi Hologram Cloud Inc. (WIMI) Investor Profile: Who’s Buying and Why?