BEIJING, Nov. 4, 2020 /PRNewswire/ -- WiMi Hologram Cloud
Inc. (Nasdaq: WIMI) ("WiMi" or the "Company"), a leading
augmented reality ("AR") service provider in China, today
announced that its wholly-owned subsidiary, VIYI Technology Inc.,
an exempted company with limited liability incorporated in
Cayman Islands ("VIYI
Technology"), has entered into a framework agreement for the
acquisition of 100% equity interests of Fe-da Electronics Company
Pte Ltd. ("Fe-da Electronics"), a provider of Internet of Things
solutions based in Singapore, to
accelerate the development of the Company's semiconductor chip
business. The payments for this acquisition are expected to be made
in several installments during the next two years, subject to the
fulfilment of certain performance conditions by Fe-da Electronics.
After the acquisition, the Company will consolidate all of Fe-da
Electronics' financial statements.
The main businesses of Fe-da Electronics are the customization
of central processing units ("CPU") for computers and servers and
the production of storage devices, including SSD and RAM storage
devices. After integrating Fe-da Electronics into VIYI Technology,
the Company plans to both retain and strengthen Fe-da Electronics'
current team, fostering meaningful synergies in its development of
central processing algorithm services. The Company also plans to
utilize Fe-da Electronics' existing artificial intelligence ("AI")
and cloud computing technologies to further unlock its potential in
the development of cloud service solutions.
Through the Company's integration of Fe-da Electronics'
semiconductor businesses, the Company will further strengthen its
central processing algorithm services, launch an integrated
hardware-software system for enterprise and industrial data
centers, and help better facilitate the digital transformation
process by providing the entire industry, especially small- and
medium-sized enterprises, with integrated cloud computing products
and services. Furthermore, the Company will also leverage Fe-da
Electronics' resources to further establish its presence in
Mainland China, Hong Kong,
Taiwan, Southeast Asia, and other areas.
According to the financial statements provided by Fe-da
Electronics, which have been audited by Chan Hock Seng &Co., a public accountant in
Singapore, the revenue of Fe-da
Electronics amounted to approximately US$45.9 million and US$70.8 million for 2018 and 2019, respectively,
which have exceeded the overall revenue of WiMi during 2018 and
2019. Through integrating Fe-da Electronics, the Company seeks to
further optimize its financial model so as to improve its business
growth and market size, and create more value for its
investors.
Mr. Shuo Shi, Chief Executive
Officer of WiMi, commented, "Our acquisition of Fe-da Electronics
marks a very important milestone in our journey to achieve our
long-term goal of becoming a global leader in CPU AI algorithms. In
addition, our integration with Fe-da Electronics will create
significant synergies in the areas of technology, product
development, and market coverage, helping us to seize those market
opportunities in the field of central processing algorithm services
and develop more unique competitive advantages. Going forward, we
plan to leverage these advantages to capture related market
opportunities, move closer towards the fulfillment of our long-term
goals in both AI algorithms and cloud computing services, and
create more value for our shareholders over the long term."
About WIMI Hologram Cloud Inc.
WiMi Hologram Cloud, Inc.(NASDAQ: WIMI), whose commercial
operations began in 2015, operates an integrated holographic AR
application platform in China and
has built a comprehensive and diversified holographic AR content
library among all holographic AR solution providers in China. Its extensive portfolio includes 4,654
AR holographic contents. The company has also achieved a speed of
image processing that is 80 percent faster than the industry
average. While most peer companies may identify and capture 40 to
50 blocks of image data within a specific space unit, WiMi collects
500 to 550 data blocks.
Safe Harbor / Forward-Looking Statements
This press release contains "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995. These forward-looking statements can be identified by
terminology such as "will," "expects," "anticipates," "future,"
"intends," "plans," "believes," "estimates" and similar statements.
Statements that are not historical facts, including statements
about the Company's beliefs and expectations, are forward-looking
statements. Among other things, the business outlook and quotations
from management in this press release, as well as the Company's
strategic and operational plans, contain forward−looking
statements. The Company may also make written or oral
forward−looking statements in its periodic reports to the U.S.
Securities and Exchange Commission ("SEC") on Forms 20−F and 6−K,
in its annual report to shareholders, in press releases and other
written materials and in oral statements made by its officers,
directors or employees to third parties. Forward-looking statements
involve inherent risks and uncertainties. A number of factors could
cause actual results to differ materially from those contained in
any forward−looking statement, including but not limited to the
following: the Company's goals and strategies; the Company's future
business development, financial condition and results of
operations; the expected growth of the AR holographic industry; and
the Company's expectations regarding demand for and market
acceptance of its products and services. Further information
regarding these and other risks is included in the Company's annual
report on Form 20-F and current report on Form 6-K and other
documents filed with the SEC. All information provided in this
press release is as of the date of this press release, and the
Company does not undertake any obligation to update any
forward-looking statement, except as required under applicable
laws.
Contacts
WIMI Hologram Cloud Inc.
Email: pr@wimiar.com
ICR, LLC
Sharon Zhou
Tel: +1 (646) 975-9495
Email: wimi@icrinc.com
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SOURCE WiMi Hologram Cloud Inc.