WiMi Hologram Cloud Inc., a leading AR services provider in China, announced the closing of its previously announced underwritten initial public offering of 4,750,000 American Depositary Shares ("ADSs"), each representing two Class B ordinary shares of the Company. It is good news for the AR industry. Now the company is bringing holographic AR experience to broader mass market.

While holography continues to proliferate, the company believes the holographic AR market remains underpenetrated in China and globally. The company plan to bring holographic AR experience to the broader mass market and expand into additional use cases and industry verticals on WIMI's own or in collaboration with WIMI's business partners. For example, the company has currently formed a pool of holographic 2,961 AR educational course materials, and over 100 holographic AR contents the company previously developed for science popularization could also be applied for future education purposes. In the long run, the company believes that holographic AR technologies will be applied to wider application scenarios and become compatible to more devices, such as IoT household facilities, in-vehicle entertainment systems and wearable devices. The abundance and variety of compatible devices make more application scenarios possible. For example, the company plans to develop a full suite of educational solutions powered by WIMI's holographic AR technologies, including course materials, in-class AR display and live remote teaching. In addition, the company may increase use cases in filmmaking, entertainment and scientific experiments.

Continue to Invest in Technology and Innovations

The company plan to continue to make substantial investments in enhancing WIMI's AR and hologram technologies, such as multi-dimensional modeling and projection, simulation, cloud computing, distributed computing, and WIMI's holographic AR content delivery and projection capabilities. WIMI's technology strategies also include developing WIMI's big data capabilities and AI technologies. For instance, The company are continuing to make substantial additional investments in strengthening WIMI's analytics capability, with an aim to gain insights into WIMI's customers and end-users in order to provide them with more personalized AR experience.

Strengthen Holographic Facial Recognition Application

The market for facial recognition industry applications has expanded during recent years. The trend for facial recognition applications is to transition from 2D technology to 3D technology for better accuracy and quality. The impetus for this change is that 2D facial recognition technology tends to be easily affected by posture, light, appearance, and other factors, resulting in a compromised recognition rate. As a result, the company believes 3D technology will gradually replace 2D facial recognition technology. WIMI's plan is to provide 3D facial recognition holographic clouding application services through AI-based algorithms. WIMI's future plan for WIMI's 3D facial recognition holographic clouding technology is to cater to potential customers in various industries, such as household, retail, travel, telecommunications, finance, national security, robot, education, social media, terminal equipment, business, transportation, intelligence business, or other potential applications.

5G Network

Due to the change of bandwidth in 5G communication networks, high-end holographic applications have gradually developed into social media, communication, navigation, home application and other applications. WIMI's plan is to provide holographic clouding platform services through 5G communication networks based on two core technologies: holographic AI facial recognition technology and holographic AI facial change technology.

Holographic Ecological System

The company plan to continue to improve and enhance WIMI's existing technology to maintain industry leadership by creating an ecological business model. At present, WIMI's holographic facial recognition technology and holographic facial change technology are being applied to WIMI's existing holographic advertising and entertainment businesses and the company is continuing to upgrade WIMI's technology in order to attempt to make breakthroughs in more industry areas. WIMI's goal is to establish a business ecosystem based on holographic technology applications.

Strengthen WIMI's AR Content Development Capabilities and Enrich WIMI's Content Library

The company intends to continue to devote substantial resources to strengthening WIMI's own holographic AR content development capability. The company is committed to enriching WIMI's holographic content portfolio and providing the high-quality holographic experience to WIMI's customers and end-users. It is WIMI's plan to continue to expand WIMI's holographic content library through various avenues.

Explore Acquisition or Investment Opportunities

While the company is focused on organic business growth, the company may evaluate and selectively pursue strategic alliance, investment and acquisition opportunities, as the company has in the past in China, to supplement and complement WIMI's existing business and operations. The company is continuing to pursue selected acquisitions of complementary businesses that extend WIMI's holographic content production capabilities. Potential acquisition targets may also include companies with strong software engineering and middleware development capabilities and leading patent-protected hologram technologies.

Safe Harbor / Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 regarding the proposed initial public offering. The offering is subject to market and other conditions and there can be no assurance that the offering will be completed or as to the actual size or terms of the offering. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including market conditions, risks associated with the cash requirements of WIMI's business and other risks detailed in the Company's registration statement, and represent the Company's views only as of the date they are made and should not be relied upon as representing WIMI's views as of any subsequent date. The Company does not assume any obligation to update any forward-looking statements except as required by law.

* This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.