Core Viewpoint - WiMi Hologram Cloud Inc. has developed a Quantum Computing-Based Feedforward Neural Network (QFNN) algorithm that addresses computational bottlenecks in traditional neural network training, utilizing Quantum Random Access Memory (QRAM) for efficient data processing [1][10]. Quantum Algorithm Development - The QFNN algorithm incorporates key quantum computing subroutines, particularly in the feedforward and backpropagation processes, providing exponential speedup in both stages of neural network training [2][4]. - Classical feedforward propagation, which involves multiple matrix-vector multiplications, is enhanced by the quantum algorithm through the use of quantum state superposition and coherence, allowing computations to be performed in logarithmic time [3][6]. Computational Efficiency - The quantum algorithm significantly reduces computational complexity, shifting from a dependency on the number of connections (O(M)) in classical networks to a dependency solely on the number of neurons (O(N)) in the quantum framework [6][7]. - This reduction in complexity leads to at least a quadratic speedup in training large-scale neural networks, making it particularly advantageous for ultra-large-scale datasets [7]. Overfitting Mitigation - WiMi's quantum algorithm demonstrates inherent resilience to overfitting, a common issue in deep learning, due to the intrinsic uncertainty of quantum computing, which acts similarly to regularization techniques [8][9]. Application Prospects - The QFNN algorithm has broad application potential in fields requiring high computational speed and data scale, such as financial market analysis, autonomous driving, biomedical research, and quantum computer vision [10][11]. - Additionally, the research lays the groundwork for quantum-inspired classical algorithms that can optimize computational complexity on traditional computers, providing a transitional solution until quantum computers become widely available [10]. Future Implications - The advancement of WiMi's QFNN algorithm marks a significant milestone in the intersection of quantum computing and machine learning, suggesting that quantum neural networks will play a crucial role in the future of artificial intelligence [11][12].

Beijing, April 22, 2025 (GLOBE NEWSWIRE) -- WiMi Turned an Annual Loss into a Significant Profit, with Cash Reserves Reaching a Record High BEIJING, April 22, 2025/ - WiMi Hologram Cloud Inc. (NASDAQ:WIMI) ("WiMi" or the "Company"), a leading hologram augmented reality ("AR") technology provider, today announced that it has filed its annual report on Form 20-F for the fiscal year ended December 31, 2024, with the Securities and Exchange Commission (the "SEC"). The company reported that its operation result ...

Financial Performance - The company incurred a net loss of RMB 510.4 million in 2023, following a loss of RMB 376.8 million in 2022, but expects a net income of RMB 103.3 million (USD 14.4 million) in 2024[62]. - The company’s ability to maintain profitability is uncertain, with potential challenges from increasing competition and macroeconomic conditions[63]. - The company may face challenges in maintaining effective internal controls, which could lead to material misstatements in financial statements[102]. - The company has identified material weaknesses in internal control over financial reporting, including insufficient resources regarding financial reporting and accounting personnel[100]. - The company recognized a loss of RMB 17,801,786 (USD 2,526,259) from the transfer of 100% equity interest in FE-DA Electronics Co., Ltd and its subsidiaries in April 2023[106]. Regulatory Environment - The PRC government has indicated an intent to exert more oversight over foreign investment in China-based issuers, which may require the company to file with the CSRC for overseas offerings in the future[33]. - The Holding Foreign Companies Accountable Act may lead to the company's ordinary shares being prohibited from trading if audit reports are not issued by PCAOB-inspected firms for two consecutive years[34]. - The PCAOB has secured complete access to inspect registered public accounting firms in mainland China and Hong Kong, which may affect the company's audit reports[39]. - The company may face limitations on its ability to offer securities to investors due to the PRC government's regulatory authority[49]. - Recent regulations from the CSRC require Chinese operating entities to complete filings for overseas listings, which may affect the company's future capital-raising efforts[150]. Corporate Structure and VIEs - The company is subject to significant risks related to its corporate structure, as it has no equity ownership in its VIEs and operates through contractual arrangements[48]. - The contractual arrangements with VIEs may not provide effective operational control compared to direct ownership[123]. - The company relies on VIEs for certain business operations, which may be subject to scrutiny by PRC tax authorities[130]. - If the VIEs declare bankruptcy, the company may lose access to important assets, adversely affecting operations[129]. - The Foreign Investment Law introduces uncertainties regarding the recognition of control over VIEs[120]. Market and Competition - The company operates in a rapidly evolving market, with growth dependent on technological innovations and customer demand shifts[52][61]. - The competitive landscape includes intense competition and limited barriers to entry, which may pressure pricing and profitability[57][69]. - The company faces intense competition in the AR advertising market, which could adversely affect its revenue and profitability if it fails to capture sufficient market share[76]. - The company aims to expand its products and services into more use cases to enhance market presence[60]. - The company plans to diversify its revenue streams through new monetization methods and semiconductor product offerings[67]. Research and Development - Significant investments in research and development are ongoing, with a focus on developing new software and enhancing the holographic AR content portfolio[55][66]. - Future growth may be constrained by the ability to secure sufficient capital for ongoing research and development investments[71]. - The company relies on attracting and retaining highly skilled personnel, particularly in software engineering and AR technology, to ensure future success[72]. Legal and Compliance Risks - The company faces risks related to the legal environment in China, which could adversely affect operations and share value[54]. - The legal system in the PRC presents uncertainties that could limit the enforcement of contractual arrangements[128]. - The company may incur additional costs if VIEs or their shareholders fail to perform contractual obligations[126]. - The shareholders of VIEs may have conflicts of interest that could adversely affect the company's control and benefits[127]. - The company may be required to restructure its ownership structure if found in violation of PRC laws[122]. Government Policies and Economic Conditions - The majority of the company's revenues are sourced from China, making its financial condition and results of operations highly sensitive to economic, political, and legal developments in the region[133]. - The PRC economy has shown slower growth since 2012, which may continue to adversely affect the company's business and operating results[135]. - The company faces risks from potential adverse changes in government policies regarding international trade, including tariffs that could impact demand for its products and services[138]. - The company is subject to significant government control over capital investments and changes in tax regulations, which could adversely affect its financial condition[134]. Intellectual Property and Data Compliance - The company’s ability to protect its intellectual property rights is crucial, as failure to do so could undermine its competitive position[79]. - The company generates and processes a large amount of data, requiring compliance with PRC laws related to cybersecurity, which may result in unexpected costs and enforcement actions for compliance failures[162]. - The PRC Cybersecurity Law and Data Security Law impose strict obligations on data handling, and non-compliance could lead to penalties, including fines and operational disruptions[169][171]. - The company must protect personal information and comply with evolving privacy and data protection laws, which may increase compliance costs and operational risks[163]. Shareholder and Market Risks - The trading price of the company's Class B ordinary shares has fluctuated significantly since its listing on the Nasdaq Global Market, influenced by various market and operational factors[213]. - The market price of Class B ordinary shares may decline due to substantial sales or the perception of potential sales of these shares[217]. - The company may experience difficulties in protecting shareholder interests due to its incorporation under Cayman Islands law, which has less developed securities laws compared to the U.S.[220]. - The board of directors has complete discretion over dividend distribution, which is subject to the company's financial condition and other factors[225]. - The company may be adversely affected by short selling practices that could drive down the market price of its Class B ordinary shares[223].

Core Insights - WiMi Hologram Cloud Inc. has reported a significant financial turnaround, moving from a net loss of approximately RMB 510.4 million in 2023 to a net income of around RMB 103.3 million (USD 14.4 million) in 2024, indicating effective operational strategies and strong management [2] - The company experienced a substantial increase in cash and cash equivalents and short-term investments, rising by approximately RMB 1.14 billion, or 148.0%, from about RMB 773.9 million in 2023 to approximately RMB 1.92 billion (USD 266.9 million) in 2024, enhancing its financial position for future growth [3] Company Overview - WiMi Hologram Cloud Inc. is a leading provider of hologram augmented reality technology, focusing on various professional areas including automotive HUD software, 3D holographic pulse LiDAR, and holographic cloud software, among others [6]

BEIJING, Nov. 11, 2024 /PRNewswire/ -- WiMi Hologram Cloud Inc. (NASDAQ: WIMI) ("WiMi" or the "Company"), a leading global Hologram Augmented Reality ("AR") Technology provider, has developed a decentralized cloud manufacturing model based on blockchain (BC), called Decentralized Cloud Manufacturing Application (DCMApp). DCMApp utilizes the decentralized and immutable nature of blockchain to facilitate protocol and communication between resource providers and clients through blockchain-based smart contracts ...

BEIJING, Oct. 24, 2024 /PRNewswire/ -- WiMi Hologram Cloud Inc. (NASDAQ: WIMI) ("WiMi" or the "Company"), a leading global Hologram Augmented Reality ("AR") Technology provider, today announced that cluster-based sharding blockchain strategy can be used for collaborative computing in the Internet of Things. The cluster-based sharding blockchain strategy is a distributed system designed to improve scalability and processing by partitioning the blockchain network into multiple smaller "slices" or "shards". Th ...

BEIJING, Oct. 15, 2024 /PRNewswire/ -- WiMi Hologram Cloud Inc. (NASDAQ: WIMI) ("WiMi" or the "Company"), a leading global Hologram Augmented Reality ("AR") Technology provider,  today announced its unaudited financial results for the six months ended June 30, 2024.Financial Highlights for the Six Months Ended June 30, 2024Our total revenues increased by approximately RMB 26.1 million, or 10%, from approximately RMB 264.8 million for the six months ended June 30, 2023 to approximately RMB 290.8 million (USD ...

Exhibit 99.1 WIMI HOLOGRAM CLOUD INC. AND SUBSIDIARIES UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS | | December 31, | June 30 | June 30 | | --- | --- | --- | --- | | | 2023 | 2024 | 2024 | | | RMB | RMB | USD | | ASSETS | | | | | CURRENT ASSETS | | | | | Cash and cash equivalents | 338,175,706 | 502,705,130 | 70,537,286 | | Short-term investments | 435,659,383 | 659,278,049 | 92,506,882 | | Accounts receivable, net | 23,721,996 | 21,597,219 | 3,030,423 | | Prepaid services fees | 48,694,021 | 56 ...

BEIJING, Oct. 14, 2024 /PRNewswire/ -- WiMi Hologram Cloud Inc. (NASDAQ: WIMI) ("WiMi" or the "Company"), a leading global Hologram Augmented Reality ("AR") Technology provider, today announced a machine learning-based blockchain hybrid consensus algorithm that aims to improve the security and trust of the blockchain system. It also optimizes the consensus process through intelligent prediction, anomaly detection and adaptive learning to improve blockchain network performance and reduce resource consumption ...

BEIJING, Oct. 11, 2024 /PRNewswire/ -- WiMi Hologram Cloud Inc. (NASDAQ: WIMI) ("WiMi" or the "Company"), a leading global Hologram Augmented Reality ("AR") Technology provider, today announced a federated learning framework based on layered and sharded blockchain technology, which can solve multiple key issues in federated learning, including information interaction, data security and privacy protection, computational efficiency, and system scalability by combining layered and sharded blockchain technologi ...