Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2023 shares | |
Document Information Line Items | |
Entity Registrant Name | WiMi Hologram Cloud Inc. |
Trading Symbol | WIMI |
Document Type | 20-F |
Current Fiscal Year End Date | --12-31 |
Amendment Flag | false |
Entity Central Index Key | 0001770088 |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Filer Category | Non-accelerated Filer |
Entity Well-known Seasoned Issuer | No |
Document Period End Date | Dec. 31, 2023 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | FY |
Entity Emerging Growth Company | true |
Entity Shell Company | false |
Entity Ex Transition Period | false |
ICFR Auditor Attestation Flag | false |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-39257 |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | Room#1508, 4th Building |
Entity Address, Address Line Two | Zhubang 2000 Business Center, No. 97, Balizhuang Xili |
Entity Address, Address Line Three | Chaoyang District |
Entity Address, City or Town | Beijing |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 100020 |
Title of 12(b) Security | American depositary shares, each ADS represents two Class B ordinary shares, par value US$0.0001 per share |
Security Exchange Name | NASDAQ |
Entity Interactive Data Current | Yes |
Document Financial Statement Error Correction [Flag] | false |
Document Accounting Standard | U.S. GAAP |
Auditor Firm ID | 711 |
Auditor Name | Friedman LLP |
Auditor Location | New York |
Business Contact | |
Document Information Line Items | |
Entity Address, Address Line One | Room#1508, 4th Building |
Entity Address, Address Line Two | Zhubang 2000 Business Center, No. 97, Balizhuang Xili |
Entity Address, Address Line Three | Chaoyang District |
Entity Address, City or Town | Beijing |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 100020 |
Contact Personnel Name | Shuo Shi |
Local Phone Number | 10-5338-4913 |
City Area Code | +86 |
Class A Ordinary Shares | |
Document Information Line Items | |
Entity Common Stock, Shares Outstanding | 20,115,570 |
Class B Ordinary Shares | |
Document Information Line Items | |
Entity Common Stock, Shares Outstanding | 176,300,513 |
Consolidated Balance Sheets
Consolidated Balance Sheets | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
CURRENT ASSETS | |||
Cash and cash equivalents | ¥ 338,175,706 | $ 47,746,722 | ¥ 572,782,081 |
Short term investments | 435,659,383 | 61,510,354 | 38,448,624 |
Accounts receivable, net | 23,721,996 | 3,349,287 | 20,346,603 |
Inventories | 2,403,818 | ||
Prepaid services fees | 48,694,021 | 6,875,065 | 31,020,841 |
Other receivables and prepaid expenses | 10,475,174 | 1,478,981 | 5,060,239 |
Deferred tax assets | 987,848 | 139,473 | |
Total current assets | 857,714,128 | 121,099,882 | 670,062,206 |
NON-CURRENT ASSETS | |||
Property and equipment, net | 92,134,718 | 13,008,417 | 24,148,293 |
Cost method investments | 11,500,708 | 1,623,775 | 170,639,684 |
Prepaid expenses and deposits | 32,600 | 4,603 | 1,433,718 |
Prepayments | 69,089,480 | 9,754,681 | 142,527,894 |
Intangible assets, net | 6,716,250 | ||
Operating lease right-of-use assets | 538,987 | 76,099 | 1,478,975 |
Goodwill | 243,334,346 | ||
Total non-current assets | 173,296,493 | 24,467,575 | 590,279,160 |
Total assets | 1,031,010,621 | 145,567,457 | 1,260,341,366 |
CURRENT LIABILITIES | |||
Accounts payable | 30,152,570 | 4,257,214 | 25,282,700 |
Deferred revenues | 10,387,169 | 1,466,555 | 11,220,282 |
Other payables and accrued liabilities | 170,485,403 | 24,070,680 | 22,228,801 |
Bank loans | 13,500,000 | 1,906,053 | |
Current portion of related party loans | 42,421,345 | ||
Operating lease liabilities | 432,474 | 61,061 | 1,432,595 |
Taxes payable | 7,430,848 | 1,049,155 | 5,429,729 |
Total current liabilities | 233,474,476 | 32,964,051 | 109,083,355 |
OTHER LIABILITIES | |||
Non-current portion of related party loans | 35,991,345 | 5,081,585 | |
Operating lease liabilities – noncurrent | 214,189 | ||
Deferred tax liabilities, net | 1,679,063 | ||
Total other liabilities | 35,991,345 | 5,081,585 | 1,893,252 |
Total liabilities | 269,465,821 | 38,045,636 | 110,976,607 |
COMMITMENTS AND CONTINGENCIES | |||
SHAREHOLDERS’ EQUITY | |||
Additional paid-in capital | 1,608,052,978 | 227,039,544 | 1,552,410,496 |
Accumulative deficit | (940,331,198) | (132,764,510) | (517,971,017) |
Statutory reserves | 25,647,972 | 3,621,214 | 24,478,153 |
Accumulated other comprehensive loss | 59,475,542 | 8,397,298 | (7,566,569) |
Total WiMi Hologram Cloud, Inc. shareholders’ equity | 752,976,070 | 106,312,010 | 1,051,466,285 |
NONCONTROLLING INTERESTS | 8,568,730 | 1,209,811 | 97,898,474 |
Total equity | 761,544,800 | 107,521,821 | 1,149,364,759 |
Total liabilities and shareholders’ equity | 1,031,010,621 | 145,567,457 | 1,260,341,366 |
Class A Ordinary Shares | |||
SHAREHOLDERS’ EQUITY | |||
Common stock value | 13,095 | 1,849 | 13,095 |
Class B Ordinary Shares | |||
SHAREHOLDERS’ EQUITY | |||
Common stock value | 117,681 | 16,615 | 102,127 |
Related Party | |||
CURRENT LIABILITIES | |||
Other payables – related party | ¥ 1,086,012 | $ 153,333 | ¥ 1,067,903 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Class A Ordinary Shares | ||
Ordinary shares, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 |
Ordinary shares, authorized | 20,115,570 | 20,115,570 |
Ordinary shares, issued | 20,115,570 | 20,115,570 |
Ordinary shares, outstanding | 20,115,570 | 20,115,570 |
Class B Ordinary Shares | ||
Ordinary shares, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 |
Ordinary shares, authorized | 466,967,730 | 466,967,730 |
Ordinary shares, issued | 176,300,513 | 153,300,513 |
Ordinary shares, outstanding | 176,300,513 | 153,300,513 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss | 12 Months Ended | |||||
Dec. 31, 2023 CNY (¥) ¥ / shares shares | Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 CNY (¥) ¥ / shares shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 CNY (¥) ¥ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | |
OPERATING REVENUES | ||||||
Total operating revenues | ¥ 585,365,937 | $ 82,647,287 | ¥ 682,292,979 | ¥ 933,791,519 | ||
COST OF REVENUES | (411,663,866) | (58,122,449) | (539,246,590) | (684,223,832) | ||
GROSS PROFIT | 173,702,071 | 24,524,838 | 143,046,389 | 249,567,687 | ||
OPERATING EXPENSES | ||||||
Selling expenses | (3,562,585) | (502,998) | (5,932,506) | (10,603,800) | ||
General and administrative expenses | (157,119,636) | (22,183,579) | (44,935,678) | (65,815,883) | ||
Research and development expenses | (171,056,952) | (24,151,376) | (341,611,729) | (155,578,474) | ||
Provision for doubtful accounts | (9,671,349) | (1,365,489) | (4,452,821) | (138,379,533) | ||
Stock compensation expenses | (55,658,036) | (7,858,308) | (6,447,471) | (10,582,557) | ||
Impairment loss for goodwill | (243,334,346) | (34,356,156) | (35,493,300) | (131,194,659) | ||
Impairment loss from long-lived assets | (5,499,260) | (776,436) | (13,713,235) | (4,308,822) | ||
Impairment loss from cost method investment | (144,863,324) | (20,453,122) | ||||
Change in fair value of business acquisition payable | 3,239,892 | |||||
Change in fair value of warrant liability | 832,355 | |||||
Total operating expenses | (790,765,488) | (111,647,463) | (451,754,385) | (513,223,836) | ||
LOSS FROM OPERATIONS | (617,063,417) | (87,122,625) | (308,707,996) | (263,656,149) | ||
OTHER INCOME (EXPENSE) | ||||||
Investment income (loss) | 52,687,134 | 7,438,849 | (88,267,543) | 2,491,671 | ||
Income from unconsolidated subsidiary | 1,826,318 | 721,439 | ||||
Interest income | 13,727,595 | 1,938,187 | 3,733,002 | 3,365,198 | ||
Finance expenses, net | (1,048,673) | (148,061) | (2,253,132) | (7,073,809) | ||
Other income, net | 1,182,719 | 166,988 | 3,889,022 | 4,042,172 | ||
Gain from disposal of subsidiary | 37,621,786 | 5,311,786 | 8,952,752 | 5,781,318 | ||
Gain (loss) from disposal of equity interest | 387,632 | (901,526) | ||||
Total other (expenses) income, net | 104,170,561 | 14,707,749 | (71,731,949) | 8,426,463 | ||
LOSS BEFORE INCOME TAXES | (512,892,856) | (72,414,876) | (380,439,945) | (255,229,686) | ||
Current | (140,037) | (19,772) | (135,968) | (2,189,629) | ||
Deferred | 2,666,910 | 376,539 | 3,758,877 | 3,024,851 | ||
Income tax credit | 2,526,873 | 356,767 | 3,622,909 | 835,222 | ||
NET LOSS | (510,365,983) | (72,058,109) | (376,817,036) | $ (53,202,456) | (254,394,464) | $ (35,917,724) |
Less: Net loss attributable to non-controlling interests | (89,175,621) | (12,590,625) | (19,085,943) | (18,421,285) | ||
NET LOSS ATTRIBUTABLE TO WIMI HOLOGRAM CLOUD, INC. | (421,190,362) | (59,467,484) | (357,731,093) | (235,973,179) | ||
OTHER COMPREHENSIVE INCOME (LOSS) | ||||||
Foreign currency translation adjustment | 66,887,988 | 9,443,854 | 41,795,213 | (19,852,192) | ||
COMPREHENSIVE LOSS | (443,477,995) | (62,614,255) | (335,021,823) | (274,246,656) | ||
Less: Comprehensive loss attributable to non-controlling interests | (89,329,744) | (12,612,386) | (24,694,512) | (18,737,271) | ||
COMPREHENSIVE LOSS ATTRIBUTABLE TO WIMI HOLOGRAM CLOUD, INC. | ¥ (354,148,251) | $ (50,001,869) | ¥ (310,327,311) | ¥ (255,509,385) | ||
WEIGHTED AVERAGE NUMBER OF ORDINARY SHARES | ||||||
Basic (in Shares) | 174,468,095 | 174,468,095 | 172,273,032 | 172,273,032 | 167,057,820 | 167,057,820 |
LOSS PER SHARE | ||||||
Basic (in Dollars per share and Yuan Renminbi per share) | (per share) | ¥ (2.41) | $ (0.34) | ¥ (2.08) | ¥ (1.41) | $ 0.06 | |
Products | ||||||
OPERATING REVENUES | ||||||
Total operating revenues | ¥ 13,523,814 | $ 1,909,415 | ¥ 200,613,602 | ¥ 449,019,437 | ||
Services | ||||||
OPERATING REVENUES | ||||||
Total operating revenues | ¥ 571,842,123 | $ 80,737,872 | ¥ 481,679,377 | ¥ 484,772,082 |
Consolidated Statements of Op_2
Consolidated Statements of Operations and Comprehensive Loss (Parentheticals) | 12 Months Ended | ||||
Dec. 31, 2023 $ / shares shares | Dec. 31, 2023 ¥ / shares shares | Dec. 31, 2022 ¥ / shares shares | Dec. 31, 2021 $ / shares shares | Dec. 31, 2021 ¥ / shares shares | |
Income Statement [Abstract] | |||||
Diluted | 174,468,095 | 174,468,095 | 172,273,032 | 167,057,820 | 167,057,820 |
Diluted (in Dollars per share and Yuan Renminbi per share) | (per share) | $ (0.34) | ¥ (2.41) | ¥ (2.08) | $ 0.06 | ¥ (1.41) |
Consolidated Statements of Shar
Consolidated Statements of Shareholders’ Equity | Class A Ordinary shares CNY (¥) shares | Class A shares | Class B Ordinary shares CNY (¥) shares | Class B shares | Additional paid-in capital CNY (¥) | Retained earnings Statutory reserves CNY (¥) | Retained Earnings Unrestricted CNY (¥) | Accumulated other comprehensive income CNY (¥) | Noncontrolling Interests CNY (¥) | CNY (¥) shares | USD ($) shares |
Balance at Dec. 31, 2020 | ¥ 13,095 | ¥ 87,539 | ¥ 932,368,293 | ¥ 24,003,483 | ¥ 76,207,925 | ¥ (35,434,146) | ¥ 11,805,734 | ¥ 1,009,051,923 | $ 142,467,127 | ||
Balance (in Shares) at Dec. 31, 2020 | 20,115,570 | 130,953,843 | |||||||||
Issuance of ordinary share through public offering, net | ¥ 14,588 | 508,118,380 | 508,132,968 | 71,742,834 | |||||||
Issuance of ordinary share through public offering, net (in Shares) | 22,346,670 | ||||||||||
Vesting of employee share compensation | 10,582,557 | 10,582,557 | 1,494,142 | ||||||||
Noncontrolling interest acquired | 330 | 330 | 47 | ||||||||
Sales of subsidiary’s non controlling interest | 3,611,177 | 83,758,123 | 87,369,300 | 12,335,592 | |||||||
Sale of subsidiaries’ controlling interest | (1,426,158) | (1,426,158) | (201,358) | ||||||||
Net loss | (235,973,179) | (18,421,285) | (254,394,464) | (35,917,724) | |||||||
Statutory reserves | 4,569,674 | (4,569,674) | |||||||||
Foreign currency translation | (19,536,205) | (315,986) | (19,852,192) | (2,802,913) | |||||||
Balance at Dec. 31, 2021 | ¥ 13,095 | ¥ 102,127 | 1,454,680,407 | 28,573,157 | (164,334,928) | (54,970,351) | 75,400,758 | 1,339,464,265 | 189,117,747 | ||
Balance (in Shares) at Dec. 31, 2021 | 20,115,570 | 153,300,513 | |||||||||
Recapitalization of MicroAlgo | 91,282,618 | 47,192,228 | 138,474,846 | 19,551,138 | |||||||
Vesting of employee share compensation | 6,447,471 | 6,447,471 | 910,313 | ||||||||
Net loss | (357,731,093) | (19,085,943) | (376,817,036) | (53,202,456) | |||||||
Reclassification of statutory reserves due to deconsolidation | (4,095,004) | 4,095,004 | |||||||||
Foreign currency translation | 47,403,782 | (5,608,569) | 41,795,213 | 5,901,028 | |||||||
Balance at Dec. 31, 2022 | ¥ 13,095 | ¥ 102,127 | 1,552,410,496 | 24,478,153 | (517,971,017) | (7,566,569) | 97,898,474 | ¥ 1,149,364,759 | $ 162,277,770 | ||
Balance (in Shares) at Dec. 31, 2022 | 20,115,570 | 20,115,570 | 153,300,513 | 153,300,513 | 153,300,513 | 153,300,513 | |||||
Issuance of ordinary share through public offering, net | ¥ 15,554 | 55,642,482 | ¥ 55,658,036 | $ 7,858,308 | |||||||
Issuance of ordinary share through public offering, net (in Shares) | 23,000,000 | ||||||||||
Net loss | (421,190,362) | (89,175,621) | (510,365,983) | (72,058,109) | |||||||
Statutory reserves | 1,169,819 | (1,169,819) | |||||||||
Foreign currency translation | 67,042,111 | (154,123) | 66,887,988 | 9,443,852 | |||||||
Balance at Dec. 31, 2023 | ¥ 13,095 | ¥ 117,681 | ¥ 1,608,052,978 | ¥ 25,647,972 | ¥ (940,331,198) | ¥ 59,475,542 | ¥ 8,568,730 | ¥ 761,544,800 | $ 107,521,821 | ||
Balance (in Shares) at Dec. 31, 2023 | 20,115,570 | 20,115,570 | 176,300,513 | 176,300,513 | 176,300,513 | 176,300,513 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||
Net loss | ¥ (510,365,983) | $ (72,058,109) | ¥ (376,817,036) | ¥ (254,394,464) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||
Depreciation and amortization | 1,299,670 | 183,499 | 10,483,764 | 18,525,363 |
Provision for doubtful accounts | (81,409,449) | (11,494,126) | 4,452,821 | 130,140,248 |
Provision for doubtful accounts – other assets | 8,239,284 | |||
Stock compensation expenses | 55,658,036 | 7,858,308 | 6,447,471 | 10,582,557 |
Deferred tax benefit | (2,666,910) | (376,539) | (3,758,877) | (3,024,851) |
Gain from sale of equity interest in unconsolidated subsidiary | (387,632) | |||
Gain (loss) from short term investments | 88,267,548 | (2,491,671) | ||
Loss from disposal of property and equipment | 208 | |||
Loss (gain) from deconsolidation of subsidiaries | (8,952,752) | 901,526 | ||
Gain from acquisition | (5,781,318) | |||
Income from unconsolidated subsidiary | 89,175,621 | 12,590,625 | (1,826,318) | (721,439) |
Amortization of operating lease right-of-use assets | 939,988 | 132,716 | 1,749,137 | 1,187,629 |
Amortization of debt discount | 1,396,731 | |||
Impairment loss for goodwill | 243,334,346 | 34,356,156 | 35,493,300 | 131,194,659 |
Impairment loss from long-lived assets | 5,499,260 | 776,436 | 13,713,235 | 4,308,822 |
Impairment loss on inventory and contract costs | 11,074,431 | |||
Change in fair value of warrant liabilities | (832,355) | |||
Change in fair value of business acquisition payable | (3,239,892) | |||
Change in operating assets and liabilities: | ||||
Accounts receivables | 85,969,933 | 12,138,017 | (3,873,010) | 9,378,693 |
Inventories | 2,403,818 | 339,393 | 4,653,176 | (20,837,892) |
Prepaid services fees | 51,057,663 | 7,208,785 | 193,987 | (12,192,007) |
Other receivables and prepaid expenses | (5,414,936) | (764,530) | 403,493 | (12,335,295) |
Prepaid expenses and deposits | 190,101 | 496,610 | ||
Accounts payable | 4,869,870 | 687,573 | (2,373,625) | 5,553,298 |
Deferred revenues | (833,113) | (117,626) | (12,011,173) | 18,086,679 |
Other payables and accrued liabilities | 148,256,602 | 20,932,212 | 8,739,816 | 27,335,795 |
Operating lease liabilities | (1,214,310) | (171,447) | (1,714,996) | (1,140,006) |
Taxes payable | 2,001,119 | 282,536 | (396,465) | (4,083,179) |
Net cash provided by (used in) operating activities | 88,561,225 | 12,503,879 | (238,156,390) | 58,160,519 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||
Purchases of cost method investment | 159,138,976 | 22,468,688 | (54,052,200) | (600,000) |
Sale of long term investments | 1,401,118 | 197,823 | ||
Prepayments for real estate purchase | (142,527,894) | |||
Purchases of property and equipment | (68,069,105) | (9,610,615) | (1,105,905) | (25,165,482) |
Purchases of short term investments | (687,403,223) | (97,053,839) | (591,813,924) | (201,322,736) |
Redemption of short term investments | 290,192,464 | 40,972,012 | 501,798,043 | 202,383,746 |
Consideration received from sale of equity interest | 2,657,913 | |||
Cash decrease due to deconsolidation | (1,660,917) | (15,338,034) | ||
Payment for Shanghai Guoyu acquisition | (20,000,000) | |||
Cash received from Tapuyu, Pengcheng and Bimai acquisitions | 2,033 | 161,638 | ||
(Loan to) collection from third party | 26,335,190 | (26,160,000) | ||
(Loan to) collection of receivable from ICinit | 27,589,530 | (9,100,000) | ||
Net cash used in investing activities | (304,739,770) | (43,025,931) | (90,250,237) | (237,668,762) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||
Proceeds from public offerings, net | 508,132,968 | |||
Proceeds from short term loan – banking facility | 7,070,000 | 998,207 | 7,628,698 | |
Payments to banking facility | (20,531,708) | |||
Proceeds from related party loans | 18,109 | 2,557 | 47,029,482 | 48,216,145 |
Repayments to related party loans | (3,228,306) | (455,802) | (77,144,627) | (47,560,843) |
Sale of subsidiary’s noncontrolling interest | 87,369,300 | |||
Cash received from recapitalization of MicroAlgo | 138,970,347 | |||
Deferred merger costs | (3,839,567) | |||
Net cash provided by financing activities | 3,859,803 | 544,962 | 108,855,202 | 579,414,993 |
EFFECT OF EXCHANGE RATE ON CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (22,287,633) | (3,146,771) | 39,986,359 | (15,668,701) |
CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (234,606,375) | (33,123,861) | (179,565,066) | 384,238,049 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of year | 572,782,081 | 80,870,583 | 752,347,147 | 368,109,098 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of year | 338,175,706 | 47,746,722 | 572,782,081 | 752,347,147 |
SUPPLEMENTAL CASH FLOW INFORMATION: | ||||
Cash paid for income taxes | 241,350 | 34,076 | 1,250,425 | 4,383,015 |
Cash paid for interest | 736,031 | 103,920 | 20,124 | 113,131 |
NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||||
Operating lease right-of-use assets obtained in exchange for operating lease liabilities | 1,440,166 | |||
Deferred merger costs reclassified to additional paid in capital | 3,839,567 | |||
Reclassification of equity investment to cost method | 1,460,484 | |||
Consideration receivable from sale of equity interest | 40,972 | |||
Cash and cash equivalents | 338,175,706 | 572,782,081 | 751,904,587 | |
Restricted cash | 442,560 | |||
Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows | ¥ 338,175,706 | $ 47,746,722 | ¥ 572,782,081 | ¥ 752,347,147 |
Nature of Business and Organiza
Nature of Business and Organization | 12 Months Ended |
Dec. 31, 2023 | |
Nature of business and organization [Abstract] | |
Nature of business and organization | Note 1 — Nature of business and organization WiMi Hologram Cloud Inc. (“WiMi Cayman” or the “Company”) is a holding company incorporated on August 16, 2018, under the laws of the Cayman Islands. The Company’s headquarter is located in the city of Beijing, China. The Company operates through its subsidiaries, WiMi Hologram Cloud Limited (“WiMi HK”), MicroAlgo Inc. (“MicroAlgo”), Tianjin Zhongzhengdaohe Investment Co., Ltd. (“TJ Zhongzheng”), and Lixin Technology Co., Ltd. (“Lixin Technology”). On April 28, 2022, the Company also established Weeto Investment Pte. Ltd. in Singapore. (a) WiMi HK and subsidiaries WiMi HK holds all of the outstanding equity of Beijing Hologram WiMi Cloud Network Technology Co., Ltd. (“WiMi WFOE”) which was established on September 20, 2018 under the law of the People’s Republic of China (“PRC” or “China”). WiMi WFOE, through its variable interest entity (“VIE”), Beijing WiMi Cloud Software Co., Ltd. (“Beijing WiMi”) and its subsidiaries, engages in providing augmented reality related products and services. On December 18, 2020, with consent of WiMi WFOE and approval of board, the original shareholders of Beijing WiMi terminated the original VIE agreements that were entered into on November 6, 2018. The original shareholders who collectively owned 17.9% of Beijing WiMi transferred their 17.9% equity interests of Beijing WiMi to Ms. Yao Zhaohua and Ms. Sun Yadong pursuant to share transfer agreements. As a result, Ms. Yao Zhaohua and Ms. Sun Yadong owned 99.90% and 0.1% of Beijing WiMi, respectively. Ms. Yao Zhaohua and Ms. Sun Yadong entered into contractual agreements (see contractual agreements below) with WiMi WFOE on December 18, 2020. As such, WiMi WFOE maintained effective control of Beijing WiMi. On June 1, 2020, Wimi HK established ICinit Limited (“ICinit”) in Hong Kong, and Wimi HK has a 51% equity interest in ICinit, which primarily engages in sales computer chip and intelligent chip products. On October 1, 2021, the Company’s board approved the equity transfer agreement between WiMi HK and Lucky Monkey Holding Limited, pursuant to which WiMi HK transferred 2% of the issued share capital of ICinit for a consideration of HKD 50,000 (approximately RMB 60,321or On May 25, 2022, the Company entered into an equity transfer agreement between WiMi HK and Lucky Monkey Holding Limited, pursuant to which WiMi HK transferred 30% of the issued share capital of ICinit for a consideration of HKD 3,050,000 (approximately RMB 3,594,155 or USD 391,186). As a result of the transfer, the Company now owns 19% equity interest of ICinit and concluded the Company no longer has significant influence over ICinit and investment in ICinit from RMB 1,460,484 (USD 209,701) is accounted for as a cost method investment. (See Note 5 - Deconsolidation for details) On August 21, 2020, Wimi HK set up a joint venture company, VIDA Semicon Co., Limited (“VIDA”) in Hong Kong, and Wimi HK has a 53% equity interest in VIDA. VIDA was set up to develop application of holographic AR technologies in the semiconductor industry. On April 15, 2021, Wimi HK set up a joint venture company, Viru Technology Limited (“Viru”) in Hong Kong and Wimi HK has a 55% equity interest in Viru. Viru was set up to develop application of AR advertising services. On August 26, 2022, Viru established a fully owned subsidiary, Shenzhen Weiruntong Technology Co., Ltd. (“Shenzhen Weiruntong”) in PRC. Shenzhen Weiruntong was set up to develop application of AR advertising services and it had no material operation as of December 31, 2022. On November 1, 2022, the Company’s board approved the equity transfer agreement between Beijing WiMi and Cui, Yang and Shenzhen Zhangshangkuyu Technology Ltd. to transfer 100% equity interest of Shenzhen Kuxuanyou Technology Co., Ltd. (“Shenzhen Kuxuanyou”) and its subsidiaries with consideration of RMB 1 (USD 0.1) and RMB 1 (USD 0.1), respectively. The transfer was effective on November 10, 2022. (See Note 5 - Deconsolidation for details). (b) MicroAlgo and subsidiaries On September 24, 2020, WiMi Cayman set up a wholly owned subsidiary, VIYI Technology Inc., which was renamed to VIYI Algorithm Inc. (“VIYI”), under the laws of the Cayman Islands. VIYI was set up to accelerate the development of AI algorithm and cloud computing services. On September 27, 2020, VIYI entered into Acquisition Framework Agreement which was amended and supplemented on September 28, 2020 to acquire 100% equity interests of Fe-da Electronics Company Private Limited. (“Fe-da Electronics”), a provider of Internet of Things solutions based in Singapore, to accelerate the development of the Company’s computer chip and intelligent chip business. The transaction was consummated on September 28, 2020. On October 9, 2020, VIYI set up a wholly owned holding company in HK, VIYI Technology Ltd. (“VIYI Ltd”), which holds all of the outstanding equity of Shenzhen Weiyixin Technology Co., Ltd. (“Shenzhen Weiyixin”) established on November 18, 2020 under the laws of the PRC. On November 30, 2020, Shenzhen Weiyixin established Shanghai Weimu Technology Co., Ltd., (“Shanghai Weimu”) in the PRC for software support services, and Shenzhen Weiyixin holds 58% outstanding equity of Shanghai Weimu. On December 24, 2020, with consent of WiMi WFOE, Beijing WiMi transferred 99.0% and 1.0% equity interests in Shenzhen Yitian Internet Technology Co., Ltd. (“Shenzhen Yitian”) to Ms. Yao Zhaohua and Ms. Sun Yadong for consideration of RMB 1 (USD 0.2) and RMB 1(USD 0.2), respectively, pursuant to share transfer agreements. Ms. Yao Zhaohua and Ms. Sun Yadong entered into contractual agreements (see contractual agreements below) with Shenzhen Weiyixin on December 24, 2020, which granted Shenzhen Weiyixin effective control of Shenzhen Yitian from December 24, 2020 and enable Shenzhen Weiyixin to receive all the expected residual returns of Shenzhen Yitian and its subsidiaries. The reorganization was completed on December 24, 2020. WiMi WFOE is the primary beneficiary of Beijing WiMi and its subsidiaries, and Shenzhen Weiyixin is the primary beneficiary of Shenzhen Yitian and its subsidiaries. All of these entities are under common control of WiMi Cayman, which results in the consolidation of Beijing WiMi, Shenzhen Yitian and their subsidiaries which have been accounted for as a reorganization of entities under common control at carrying value without change of reporting entities. Due to the business strategy adjustment, Shenzhen Yitian and its subsidiaries no longer operate the business involving foreign investment restrictions since March 1, 2022, therefore VIYI is able to have direct equity interest in Shenzhen Yitian and its subsidiaries. On April 1, 2022, VIYI terminated the agreements under the VIE structure with Shenzhen Yitian. Shenzhen Yitian’s original shareholders transferred their respective ownership to VIYI WFOE and VIYI WFOE obtained 100% equity control of Shenzhen Yitian and its subsidiaries on April 1, 2022. The reorganization has no effect on the consolidated financial statements as Shenzhen Yitian has been under common control of VIYI that there is no change of reporting entities. On July 1, 2021, VIYI acquired 100% interest of Shanghai Guoyu Information Technologies Co., Ltd (“Shanghai Guoyu”). The aggregate purchase price is $3.0 million (RMB 20,000,000). On July 19, 2021 Shanghai Guoyu established 100% owned subsidiary Kashi Guoyu Information Technologies Co., Ltd (“Kashi Guoyu”). On July 19, 2021, Viwo Technology established a fully owned subsidiary Shenzhen Viwotong Technology Co., Ltd. (“Viwotong Tech”) in Shenzhen to support its operations. On November 19, 2021 Viwotong Tech acquired 100% equity interests of Guangzhou Tapuyu Internet Technology Co., Ltd. (“Tapuyu”), a provider of advertising services, for RMB 2 (approximately USD 0.3). On December 7, 2021, Viwotong Tech purchased Pengcheng Keyi (Xi’an) Intelligence Technology Co., Ltd. (“Pengcheng Keyi”), a provider of testing equipment development and sales, for RMB 2 (approximately USD 0.3). On July 1, 2022, Viwo Technology Inc. entered into an equity transfer agreement to transfer 99.0% and 1.0% of the issued share capital of Pengcheng Keyi to two unrelated individuals at RMB 1.0 and RMB 0.1(USD$ 0.01), respectively. (See Note 4 for details) On September 23, 2022, Viwotong Tech entered into Acquisition Framework Agreement to acquire 100% equity interests of Guangzhou Bimai Network Technology Co., Ltd. (“Bimai”), a provider of advertising services. The aggregate purchase price is RMB 2 (USD 0.3) and the transaction consummated on September 23, 2022. (See Note 4 for details) VIYI entered into the Business Combination and Merger Agreement dated June 10, 2021 (as amended on January 24, 2022, August 2, 2022, August 3, 2022 and August 10, 2022, the “Merger Agreement”), by and among WiMi, Venus Acquisition Corporation (“Venus”)), Venus Merger Sub Corporation (“Venus Merger Sub”), a Cayman Islands exempted company incorporated for the purpose of effectuating the Business Combination. On December 9, 2022, in accordance with the Merger Agreement, the closing of the business combination (the “Closing”) occurred, pursuant to which Venus issued 39,603,961 ordinary shares to VIYI shareholders. As a result of the consummation of the business combination, VIYI is now a wholly-owned subsidiary of the Venus, which has changed its name to MicroAlgo Inc. (See Note 6 for detail) In December 2022, Viwotong Tech “ ” On April 6, 2023, the Company’s board approved the equity transfer agreement between VIYI and LIM TZEA, to transfer 100% equity interest of Fe-da Electronics Co., Ltd and its subsidiaries Wisdom Lab Inc., EXCEL Technology Co., Ltd. and recognized RMB 17,801,786 (USD 2,526,259) of loss from the transfer, FE-DA and its subsidiaries were Disposed in April 2023. On March 27, 2023, Weidong established a fully owned subsidiary Shenzhen Weidong Technology Co., Ltd. (“SZ Weidong”) in Shenzhen. On May 17, 2023, YY Online transferred 1% equity of Shanghai Guoyu to SZ Weidong. On June 5, 2023 VIYI Technology Ltd established a fully owned subsidiary CDDI Capital Ltd (“CDDI”) in British Virgin Islands. On June 27, 2023, CDDI formed a 55% owned subsidiary VIWO Technology Inc.(“VIWO Cayman”) in Cayman. On July 31, 2023, VIYI Technology Ltd transferred its equity of Viwo Technology to VIWO Cayman. On December 20, 2023, VIWO Cayman established a fully owned subsidiary VIWO Technology (HK) Limited (“VIWO HK”) in Hong Kong. On January 23, 2024, VIWO Technology (HK) Limited established a wholly-owned subsidiary, Beijing Viwotong Technology Co., Ltd.(“Beijing Viwotong”). In February 2024, Shenzhen Viwotong transferred 100% equity of Tapuyu and Younike to Beijing Viwotong. (c) Others On March 4, 2021, WiMi Cayman established a wholly owned entity of TJ Zhongzheng which is deemed as a wholly foreign owned enterprise, with a register capital of USD 30 million (approximately RMB 195.7 million). On May 21, 2021, TJ Zhongzhen established Shenzhen Hedaozhongshu Technology Co., Ltd. (“Shenzhen Hedao’). On May 26, 2021, Shenzhen Hedao established Kashi Daohezhongzheng Internet Technology Co., Ltd. (“Kashi Daohe”). Shenzhen Hedao and Kashi were set up to engage AR advertising services. On August 4, 2020, WiMi Cayman established a wholly-owned subsidiary, Lixin Technology in the PRC to accelerate development of its holographic vision intelligent robots and fabless semiconductor businesses. Lixin Technology focuses on a new upstream business in the domestic smart product market, and research, development and sales of computer chip and intelligent chip products to further enhance the Company’s competitiveness. Lixin Technology established a wholly-owned subsidiary, Hainan Lixin Technology Co., Ltd. in October 2020. The accompanying consolidated financial statements reflect the activities of WiMi Cayman and each of the following entities as of December 31, 2023: Name Background Ownership WiMi Hologram Cloud Limited(“WiMi HK”) ● A Hong Kong company ● Incorporated on September 4, 2018 ● Primarily engages in the sales of semiconductor products and related accessories 100% owned by WiMi Cayman Beijing Hologram WiMi Cloud Network Technology Co., Ltd.(“WiMi WFOE”) ● A PRC limited liability company and deemed a wholly foreign owned enterprise (“WFOE”) ● Incorporated on September 20, 2018 ● A holding company 100% owned by WiMi HK Beijing WiMi Cloud Software Co., Ltd.(“Beijing WiMi”) ● A PRC limited liability company ● Incorporated on May 27, 2015 ● Primarily engages in Hologram advertising services VIE of WiMi WFOE Shenzhen Yidian Network Technology Co., Ltd. ● A PRC limited liability company ● Incorporated on May 20, 2014 ● Primarily engages in AR advertising services 100% owned by Beijing WiMi Shenzhen Duodian Cloud Technology Co., Ltd. ● A PRC limited liability company ● Incorporated on August 24, 2017 ● Primarily engages in AR advertising services 100% owned by Shenzhen Yidian Korgas Duodian Network Technology Co., Ltd. ● A PRC limited liability company ● Incorporated on November 25, 2016 ● Primarily engages in AR advertising services 100% owned by Shenzhen Yidian Kashi Duodian Network Technology Co., Ltd. ● A PRC limited liability company ● Incorporated on January 31, 2019 ● Primarily engages in AR advertising services 100% owned by Shenzhen Yidian Name Background Ownership Shenzhen Zhiyun Image Technology Co., Ltd. (“Shenzhen Zhiyun”) ● A PRC limited liability company ● Incorporated on December 3, 2019 ● Primarily engages in AR advertising services 100% owned by Shenzhen Yidian Shenzhen Shiyunyanxi Technology Co., Ltd. (“Shenzhen Shiyun”) ● A PRC limited liability company ● Incorporated on June 9, 2021 ● Primarily engages in AR advertising services 100% owned by Shenzhen Yidian Shenzhen Yunzhan Image Technology Co., Ltd. (“Shenzhen Yunzhan”) ● A PRC limited liability company ● Incorporated on September 24, 2020 ● Primarily engages in AR advertising services 100% owned by Shenzhen Yidian Micro Beauty Lightspeed Investment Management HK Limited ● A Hong Kong company ● Incorporated on February 22, 2016 ● Primarily engages in MR software development and licensing 100% owned by Beijing WiMi Skystar Development Co., Ltd ● A Republic of Seychelles Company ● Incorporated on March 30, 2016 ● Primarily engages in MR software development and licensing 100% owned by Micro Beauty Viru Technology Limited (“Viru”) ● A Hong Kong company ● Incorporated on April 15, 2021 ● Primarily engages in AR advertising services 55% owned by Wimi HK Shenzhen Weiruntong Technology Co., Ltd. ● A PRC limited liability company ● Incorporated on August 26, 2022 ● Primarily engages in AR advertising services and no material operation as of December 31, 2023 100% owned by Viru Name Background Ownership VIDA Semicon Co., Limited (“VIDA”) ● A Hong Kong company ● Incorporated on August 21, 2020 ● Primarily engages in the sales of semiconductor products and related accessories 53% owned by WiMi HK Weeto Investment PTE. Ltd (“Weeto”) ● A Singapore limited liability company ● Incorporated on April 28, 2022 ● Primarily engages in AR advertising services. No material operations as of December 31, 2023 100% owned by Wimi Cayman Lixin Technology Co., Ltd. (“Lixin Technology”) ● A PRC limited liability company and deemed a wholly foreign owned enterprise (“WFOE”) ● Incorporated on August 4, 2020 ● Primarily engages in research, development and sale of computer chip and intelligent chip products 100% owned by WiMi Cayman Hainan Lixin Technology Co., Ltd. (“Hainan Lixin”) ● A PRC limited liability company ● Incorporated on October 10, 2020 ● Plan to support the daily operations of Lixin Technology 100% owned by Lixin Technology Tianjin Zhongzhengdaohe Investment Co., Ltd. (“TJ Zhongzheng”) ● A PRC limited liability company and deemed a wholly foreign owned enterprise (“WFOE”) ● Incorporated on March 4, 2021 ● A holding company 100% owned by WiMi Cayman Shenzhen Hedaozhongshu Technology Co., Ltd. (“Shenzhen Hedao”) ● A PRC limited liability company ● Incorporated on May 21, 2021 ● Plan to engage AR advertising services 100% owned by TJ Zhongzheng Kashi Daohezhongzheng Internet Technology Co., Ltd. (“Kashi Daohe”) ● A PRC limited liability company ● Incorporated on May 26, 2021 ● Plan to engage AR advertising services 100% owned by Shenzhen Hedao Dissolved on June 2, 2023 Name Background Ownership MicroAlgo Inc. (“MicroAlgo”) ● A Cayman company ● Incorporated on May 14, 2018 ● A holding company 56% owned by Wimi Cayman VIYI Algorithm Inc. (“VIYI”), previously known as VIYI Technology Inc. ● A Cayman company ● Incorporated on September 24, 2020 ● Primarily engages in the development of central processing algorithm and cloud computing services 86.5% owned by WiMi Cayman before March 26, 2021; 73% owned by WiMi Cayman after March 26, 2021; 100% owned by MicroAlgo after December 9, 2022 Fe-da Electronics Company Private Limited (“Fe-da Electronics”) ● A Singapore company ● Incorporated on January 9, 2009 ● Primarily engages in customization of central processing units 100% owned by VIYI Acquired in September 2020 Disposed in April 2023 Wisdom Lab Inc. (“Wisdom Lab”) ● A Cayman Islands company ● Incorporated on May 6, 2021 ● Engages in software solution for intelligent chips 100% owned by Fe-Da Electronics Disposed in April 2023 Excel Crest Limited (“Excel Crest”) ● A Hong Kong company ● Incorporated on September 10, 2020 ● Support the daily operations of Fe-da Electronics in Hong Kong 100% owned by Fe-da Electronics Disposed in April 2023 VIYI Technology Ltd. (“VIYI Ltd”) ● A Hong Kong company ● Incorporated on October 9, 2020 ● A holding company 100% owned by VIYI Shenzhen Weiyixin Technology Co., Ltd. (“Shenzhen Weiyixin”) ● A PRC limited liability company and deemed a wholly foreign owned enterprise (“WFOE”) ● Incorporated on November 18, 2020 ● A holding company 100% owned by VIYI Ltd Name Background Ownership Shanghai Weimu Technology Co., Ltd. (“Shanghai Weimu”) ● A PRC limited liability company ● Incorporated on November 30, 2020 ● Engages in providing software support services 58% owned by Shenzhen Weiyixin Weidong Technology Co., Ltd. (“Weidong”) ● A PRC limited liability company ● Incorporated on October 28, 2020 ● Primarily engages in AR advertising services 100% owned by Shenzhen Yitian before January 11, 2021; 100% owned by Shenzhen Weiyixin after January 11, 2021 Shanghai Guoyu Information Technology Co., Ltd. (“Shanghai Guoyu”) ● A PRC limited liability company ● Incorporated on March 18, 2019 ● Engages in R&D and application of intelligent visual algorithm technology 99% owned by Weidong, 1% owned by SZ Weidong Korgas Weidong Technology Co., Ltd. (“Korgas Weidong”) ● A PRC limited liability company ● Incorporated on October 30, 2020 ● Primarily engages in AR advertising services 100% owned by Weidong July 14, 2021 Shanghai Guoyu July 14, 2021 Korgas 233 Technology Co., Ltd. (“Korgas 233”) ● ● ● 100% owned by Shenzhen Yitian before January 11, 2021; 100% owned by YY Online after January 11, 2021; Dissolved in October 2023; Shenzhen Yiyou Online Technology Co., Ltd. (“YY Online”) ● A PRC limited liability company ● Incorporated on January 14, 2019 ● Primarily engages in AR advertising services 100% owned by Weidong Name Background Ownership Shenzhen Yitian Internet Technology Co., Ltd. ● A PRC limited liability company ● Incorporated on March 08, 2011 ● Primarily engages in mobile games development 100% owned by Beijing WiMi before December 24, 2020; VIE of Shenzhen Weiyixin starting on December 24, 2020; 100% owned by Shenzhen Weiyixin starting April 1, 2022 Shenzhen Qianhai Wangxin Technology Co., Ltd. ● A PRC limited liability company ● Incorporated on October 16, 2015 ● Primarily engages in AR advertising services 100% owned by Shenzhen Yitian CDDI Capital Ltd (“CDDI”) ● A ● 100% owned by VIYI Technology Limited VIWO AI Technology Inc. ● Incorporated on June 5, 2023, under the laws of the Cayman Islands ● A holding company 55% owned by CDDI Capital Ltd Viwo Technology Limited. ● A Hong Kong company ● Incorporated on April 15, 2021 ● Engages in intelligent chips design 100% owned by VIWO Cayman Shenzhen Viwotong Technology Co., Ltd. (“Viwotong Tech”) ● A PRC limited liability company ● Incorporated on July 19, 2021 ● No operations as of December 31, 2022 100% owned by Viwo Tech Guangzhou Tapuyu Internet Technology Co., Ltd. (“Tapuyu”) ● A PRC limited liability company ● Incorporated on June 22, 2021 ● Engages in E-commerce services and application of intelligent visual algorithm technology 100% owned by Viwotong Tech Beijing Younike Information Technology Co., Ltd. (“Younike”) ● ● ● 100% owned by Viwotong Tech Shenzhen Weidong Technology Co., Ltd. (“SZ Weidong”) ● ● I ● 100% owned by Weidong VIWO Technology (HK) Limited (VIWO HK) ● A Hong Kong company ● Incorporated on December 20,2023 ● A holding company 100% owned by VIWO Cayman Contractual Arrangements Due to legal restrictions on foreign ownership and investment in, among other areas, value-added telecommunications services, which include the operations of internet content providers, the Company operates its internet and other businesses in which foreign investment is restricted or prohibited in the PRC through certain PRC domestic companies. As such, Beijing WiMi and Shenzhen Yitian (from December 24, 2020) are controlled through contractual agreements in lieu of direct equity ownership by the Company or any of its subsidiaries. Beijing WiMi contractual agreements signed on November 6, 2018 and December 18, 2020 The contractual arrangements consist of a series of four agreements, shareholders power of attorney and irrevocable commitment letters (collectively the “Contractual Arrangements”, which were signed on November 6, 2018). Pursuant to reorganization on December 18, 2020, the previous contractual agreements were terminated and Beijing WiMi and WiMi WFOE entered into new contractual agreements on December 18, 2020. WiMi WFOE maintained effective control of Beijing WiMi. The significant terms of the Contractual Agreements are as follows: Exclusive Business Cooperation Agreement Under the exclusive business cooperation agreement between WiMi WFOE and Beijing WiMi, WiMi WFOE has the exclusive right to provide to Beijing WiMi consulting and services related to, among other things, use of software, operation maintenance, product development, and management and marketing consulting. WiMi WFOE has the exclusive ownership of intellectual property rights created as a result of the performance of this agreement. Beijing WiMi agrees to pay WiMi WFOE service fee at an amount equal to the consolidated net income after offsetting previous year’s loss (if any). This agreement will remain effective until the date when it is terminated by WiMi WFOE. Exclusive Share Purchase Option Agreement Pursuant to the exclusive share purchase option agreement, by and among WiMi WFOE, Beijing WiMi and each of the shareholders of Beijing WiMi, each of the shareholders of Beijing WiMi irrevocably granted WiMi WFOE an exclusive call option to purchase, or have its designated person(s) to purchase, at its discretion, all or part of their equity interests in Beijing WiMi, and the purchase price shall be the lowest price permitted by applicable PRC law. Each of the shareholders of Beijing WiMi undertakes that, without the prior written consent of WiMi WFOE or us, they may not increase or decrease the registered capital, amend its articles of association or change registered capital structure. This agreement will remain effective for ten Exclusive Assets Purchase Agreement Pursuant to the exclusive asset purchase agreement by WiMi WFOE and Beijing WiMi, Beijing WiMi irrevocably granted WiMi WFOE an exclusive call option to purchase, or have its designated person(s) to purchase, at its discretion, all or part of Beijing WiMi’s current or future assets (including intellectual property rights), and the purchase price shall be the lowest price permitted by applicable PRC law. Beijing WiMi undertakes that, without the prior written consent of WiMi WFOE, it may not sell, transfer, pledge, dispose of its assets, incur any debts or guarantee liabilities. It will notify WiMi WFOE any potential litigation, arbitration or administrative procedures regarding the assets, and defend the assets if necessary. This agreement will remain effective for ten Equity Interest Pledge Agreement Pursuant to the equity interest pledge agreement, by and among WiMi WFOE, Beijing WiMi and the shareholders of Beijing WiMi, the shareholders of Beijing WiMi pledged all of their equity interests in Beijing WiMi to WiMi WFOE to guarantee their and Beijing WiMi’s obligations under the contractual arrangements including the exclusive consulting and services agreement, the exclusive option agreement, the exclusive asset purchase agreement and the power of attorney and this equity interest pledge agreement, as well as any loss incurred due to events of default defined therein and all expenses incurred by WiMi WFOE in enforcing such obligations of Beijing WiMi or its shareholders. The shareholders of Beijing WiMi agree that, without WiMi WFOE’s prior written approval, during the term of the equity interest pledge agreement, they will not dispose of the pledged equity interests or create or allow any other encumbrance on the pledged equity interests. The Company has completed the registration of the equity pledges with the relevant administration for industry and commerce in accordance with the PRC Property Rights Law. Power of Attorney Pursuant to the power of attorney, by WiMi WFOE and each shareholder of Beijing WiMi, respectively, each shareholder of Beijing WiMi irrevocably authorized WiMi WFOE or any person(s) designated by WiMi WFOE to exercise such shareholder’s voting rights in Beijing WiMi, including, without limitation, the power to participate in and vote at shareholder’s meetings, the power to nominate directors and appoint senior management, the power to sell or transfer such shareholder’s equity interest in Beijing WiMi, and other shareholders’ voting rights permitted by PRC law and the Articles of Association of Beijing WiMi. The power of attorney remains irrevocable and continuously valid from the date of execution so long as each shareholder remains as a shareholder of Beijing WiMi. Spousal Consent Letters Pursuant to these letters, the spouses of the applicable shareholders of Beijing WiMi unconditionally and irrevocably agreed that the equity interest in Beijing WiMi held by them and registered in their names will be disposed of pursuant to the equity interest pledge agreement, the exclusive option agreement, the exclusive asset purchase agreement and the power of attorney. Each of their spouses agreed not to assert any rights over the equity interest in Beijing WiMi held by their respective spouses. In addition, in the event that any spouse obtains any equity interest in Beijing WiMi held by his or her spouse for any reason, he or she agreed to be bound by the contractual arrangements. Based on the foregoing contractual arrangements signed on November 6, 2018 and December 18, 2020, which grant WiMi WFOE effective control of Beijing WiMi and enable WiMi WFOE to receive all of their expected residual returns, the Company accounts for Beijing WiMi as a VIE. Accordingly, the Company consolidates the accounts of Beijing WiMi for the periods presented herein, in accordance with Regulation S-X-3A-02 promulgated by the Securities Exchange Commission (“SEC”), and Accounting Standards Codification (“ASC”) 810-10, Consolidation. Shenzhen Yitian The contractual arrangements consist of a series of four agreements, shareholders power of attorney and irrevocable commitment letters (collectively the “Contractual Arrangements”, which were signed on December 24, 2020). The significant terms of the Contractual Agreements are as follows: Exclusive Business Cooperation Agreement Under the exclusive business cooperation agreement between Shenzhen Weiyixin and Shenzhen Yitian dated December 24, 2020, Shenzhen Weiyixin has the exclusive right to provide to Shenzhen Yitian consulting and services related to, among other things, use of software, operation maintenance, product development, and management and marketing consulting. Shenzhen Weiyixin has the exclusive ownership of intellectual property rights created as a result of the performance of this agreement. Shenzhen Yitian agrees to pay Shenzhen Weiyixin service fee at an amount equal to the consolidated net income after offsetting previous year’s loss (if any). This agreement will remain effective until the date when it is terminated by Shenzhen Weiyixin. Exclusive Share Purchase Option Agreement Pursuant to the exclusive share purchase option agreement dated December 24, 2020, by and among Shenzhen Weiyixin, Shenzhen Yitian and each of the shareholders of Shenzhen Yitian, each of the shareholders of Shenzhen Yitian irrevocably granted Shenzhen Weiyixin an exclusive call option to purchase, or have its designated person(s) to purchase, at its discretion, all or part of their equity interests in Shenzhen Yitian, and the purchase price shall be the lowest price permitted by applicable PRC law. Each of the shareholders of Shenzhen Yitian undertakes that, without the prior written consent of Shenzhen Weiyixin or us, they may not increase or decrease the registered capital, amend its articles of association or change registered capital structure. This agreement will remain effective unless terminated in the event that the entire equity interests held by registered shareholders in Shenzhen Yitian have been transferred to Shenzhen Weiyixin or until the date when it is terminated by Shenzhen Weiyixin. Any transfer of shares pursuant to this agreement would be subject to PRC regulations and to any changes required thereunder. Equity Interest Pledge Agreement Pursuant to the equity interest pledge agreement dated December 24, 2020, by and among Shenzhen Weiyixin, Shenzhen Yitian and the shareholders of Shenzhen Yitian, the shareholders of Shenzhen Yitian pledged all of their equity interests in Shenzhen Yitian to Shenzhen Weiyixin to guarantee their and Shenzhen Yitian’s obligations under the contractual arrangements including the exclusive consulting and services agreement, the exclusive option agreement, the power of attorney and this equity interest pledge agreement, as well as any loss incurred due to events of default defined therein and all expenses incurred by Shenzhen Weiyixin in enforcing such obligations of Shenzhen Yitian or its shareholders. The shareholders of Shenzhen Yitian agree that, without Shenzhen Weiyixin’s prior written approval, during the term of the equity interest pledge agreement, they will not dispose of the pledged equity interests or create or allow any other encumbrance on the pledged equity interests. The pledge under the equity interest pledge agreement shall take effect upon the completion of registration with the relevant administration for industry and commerce, which was completed as of January 29, 2021, and shall remain valid until the earlier of (1) the completion of all contractual obligations and the repayment of all secured debts, or (2) the time when the pledgee and/or the appointed person(s) have decided, subject to the PRC laws, to purchase the entire equity interests of the pledger in Shenzhen Yitian, and such equity interests of Shenzhen Yitian have been transferred to the pledgee and/or the appointed person(s) in accordance with the law such that the pledgee and/or the appointed person(s) may lawfully engage in the business of Shenzhen Yitian. Loan Agreement Pursuant to the loan agreement dated December 24, 2020, Shenzhen Weiyixin agreed to provide loans to the registered shareholders of Shenzhen Yitian, to be used exclusively as investment in Shenzhen Yitian. The loan must not be used for any other purposes without the relevant lender’s prior written consent. The term of the loan agreement commences from the date of the agreement and ends on the date the lender exercises its exclusive option under the relevant exclusive share purchase option agreement, or when certain defined termination events occur, such as if the lender sends a written notice demanding repayment to the borrower, or upon the default of the borrower, whichever is earlier. After the lender exercises its exclusive option, the borrower may repay the loan by transferring all of its equity interest in the relevant Onshore Holdco to the lender, or a person or entity nominated by the lender, and use the proceeds of such transfer as repayment of the loan. If the |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of significant accounting policies | Note 2 — Summary of significant accounting policies Basis of presentation The accompanying consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and applicable rules and regulations of the Securities and the SEC. Principles of consolidation The consolidated financial statements include the financial statements of the Company and its subsidiaries, which include the wholly-foreign owned enterprise (“WFOE”) and VIEs over which the Company exercises control and, when applicable, entities for which the Company has a controlling financial interest or is the primary beneficiary. All transactions and balances among the Company and its subsidiaries have been eliminated upon consolidation. Use of estimates and assumptions The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the periods presented. Significant accounting estimates reflected in the Company’s consolidated financial statements include the useful lives of property and equipment and intangible assets, impairment of long-lived assets and goodwill, allowance for doubtful accounts, provision for contingent liabilities, revenue recognition, deferred taxes and uncertain tax position, purchase price allocations for business combination, the fair value of contingent consideration related to business acquisitions, and valuation of stock-based compensation. Actual results could differ from these estimates. Foreign currency translation and other comprehensive income (loss) The Company uses Renminbi (“RMB”) as its reporting currency. The functional currency of the Company, its subsidiaries in Seychelles and Singapore and two subsidiaries, WiMi HK and VIDA, in Hong Kong is U.S. dollar, and its other subsidiaries which are incorporated in Hong Kong and PRC are Hong Kong Dollar and RMB, respectively, which are their respective local currencies based on the criteria of ASC 830, “Foreign Currency Matters”. In the consolidated financial statements, the financial information of the Company and other entities located outside of the PRC has been translated into RMB. Assets and liabilities are translated at the exchange rates on the balance sheet date, equity amounts are translated at historical exchange rates, and revenues, expenses, gains and losses are translated using the average rate for the period. Translation adjustments included in accumulated other comprehensive income (loss) amounted to RMB 7,373,437 and RMB 59,429,283 (USD 8,390,767) as of December 31, 2022 and 2023, respectively. The balance sheet amounts, with the exception of shareholders’ equity for WiMi HK and VIYI, on December 31, 2022 and 2023 were translated at RMB 1.00 to HKD 1.1194 and to HKD 1.1035, respectively. The average translation rates applied to statement of income accounts for the years ended December 31, 2021, 2022 and 2023 were RMB 1.00 to HKD 1.2048, HKD 1.1643 and to HKD1 .1109 Convenience translation Translations of balances in the consolidated balance sheets, consolidated statements of income and consolidated statements of cash flows from RMB into USD as of and for the year ended December 31, 2023 are solely for the convenience of the reader and were calculated at the rate of USD 1.00 to USD 7.0827, representing the mid-point reference rate set by Peoples’ Bank of China on December 29, 2023, the last business day for the year ended December 31, 2023. No representation is made that the RMB amounts represent or could have been, or could be, converted, realized or settled into USD at that rate, or at any other rate. Cash and cash equivalents Cash and cash equivalents primarily consist of bank deposits with original maturities of three months or less, which are unrestricted as to withdrawal and use. Cash and cash equivalents also consist of funds earned from the Company’s operating revenues which were held at third party platform fund accounts which are unrestricted as to immediate use or withdraw. The Company maintains most of its bank accounts in the PRC, HK, Singapore and US. Restricted cash Restricted cash consists of any cash balances that are legally restricted as to withdrawal and use. The Company’s restricted cash for the year ended December 31, 2020 was in connection with the Company’s initial public offering in March 2020 and subsequent public offering in July 2020, a total of USD 2,006,000 of the net proceeds received is deposited in escrow accounts and restricted to withdraw for a year since closing date. In connection with the Company’s March 2021 public offering with the same escrow agent, USD 1 million of the July 2020 offering escrow proceeds was extended for an additional escrow period terminating on the six-month anniversary of the closing date of the March 2021 offering. Accounts receivable, net Accounts receivable include trade accounts due from customers. Accounts are considered overdue after 90 days. Management reviews its receivables on a regular basis to determine if the bad debt allowance is adequate, and provides allowance when necessary. The allowance is based on management’s best estimates of specific losses on individual customer exposures, as well as the historical trends of collections. Account balances are charged off against the allowance after all means of collection have been exhausted and the likelihood of collection is not probable. As of December 31, 2022 and 2023, allowances for accounts receivable amounted to RMB 117,080,588 and RMB 27,735,262 (USD 3,915,917), respectively. Inventories Inventories are comprised of finished goods and are stated at the lower of cost or net realizable value using the weighted average method. Management reviews inventories for obsolescence and cost in excess of net realizable value periodically when appropriate and records a reserve against the inventory when the carrying value exceeds net realizable value. For the year ended December 31, 2023, 2022 and 2021, impairment of inventory amounted to approximately nil nil Short-term investments Short-term investments are investment in marketable equity securities that are measured and recorded at fair value based on quoted prices in active markets on reporting dates with changes in fair value, whether realized or unrealized, recorded through the income statement. Loans receivable Loans receivable represents loans to a third party under the terms of the agreements signed in November and December 2021 at 3.85% interest per annum. The loans have terms of one-year and has no collateral. Management regularly reviews the aging of loans receivable and changes in payment trends and records allowances when management believes collection of amounts due are at risk. Loans receivable considered uncollectable are written off against allowances after exhaustive efforts at collection are made. Full amount of loans receivable was subsequently collected in May 2022. The balance of loans receivable is nil Prepaid services fees Prepaid services fees are mainly payments made to vendors or services providers for future services. These amounts are refundable and bear no interest. Prepaid services fees also include money deposited with certain channel providers to ensure the contents of the advertisement do not violate the terms of the channel providers. The deposits usually have one year term and are refundable upon contract termination. Management reviews its prepaid services fees on a regular basis to determine if the allowance is adequate, and adjusts the allowance when necessary. As of December 31, 2022 and 2023, no allowance was deemed necessary. Other receivables and prepaid expenses Other receivables that are short term in nature include employee advances to pay certain of the Company’s expenses in the normal course of business and certain short-term deposits. Prepaid expenses included utilities or system services and prepaid VAT. An allowance for doubtful accounts may be established and recorded based on management’s assessment of the likelihood of collection. Management reviews these items on a regular basis to determine if the allowance for doubtful accounts is adequate, and adjusts the allowance when necessary. Delinquent account balances are written-off against the allowance for doubtful accounts after management has determined that the likelihood of collection is not probable. As of December 31, 2022 and 2023, allowance for other receivable amounted to RMB 1,180 and RMB 3,229,486 (USD 455,968), respectively. Property and equipment, net Property and equipment are stated at cost less accumulated depreciation and impairment if applicable. Depreciation is computed using the straight-line method over the estimated useful lives of the assets with 5% residual value. The estimated useful lives are as follows: Useful Life Office equipment 3 years Office furniture and fixtures 3 – 5 years Vehicles 3 – 5 years Building 20 years Leasehold improvements lesser of lease term or expected useful life The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the consolidated statements of income and comprehensive income. Expenditures for maintenance and repairs are charged to earnings as incurred, while additions, renewals and betterments, which are expected to extend the useful life of assets, are capitalized. The Company also re-evaluates the periods of depreciation to determine whether subsequent events and circumstances warrant revised estimates of useful lives. Cost method investments The Company accounts for investments with less than 20% of the voting shares and does not have the ability to exercise significant influence over operating and financial policies of the investee using the cost method. The Company records cost method investments at the historical cost in its consolidated financial statements and subsequently records any dividends received from the net accumulated earrings of the investee as income. Dividends received in excess of earnings are considered a return of investment and are recorded as reduction in the cost of the investments. Cost method investments are evaluated for impairment when facts or circumstances indicate that the fair value of the long-term investments is less than its carrying value. An impairment is recognized when a decline in fair value is determined to be other-than-temporary. The Company reviews several factors to determine whether a loss is other-than-temporary. These factors include, but are not limited to, the: (i) nature of the investment; (ii) cause and duration of the impairment; (iii) extent to which fair value is less than cost; (iv) financial condition and near term prospects of the investments; and (v) ability to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value. For the year ended December 31, 2023, the Company recognized the impairment loss of RMB 144,863,324 (USD 20,453,122) for the cost method investment, mainly due to the weak financial conditions recognized of Beijing WIMI’s and Shenzhen Weiyixin’s investments in near periods. Prepayments Prepayments are payments made to housing developers for commercial and residential properties down payments. These amounts are refundable and bear an interest ranging from 0% to 3.85% per annum if the housing developers were not able to provide the qualified houses as stated in the contracts. Management reviews its prepayments on a regular basis to determine if the allowance is adequate, and adjusts the allowance when necessary. As of December 31, 2023, no allowance was deemed necessary. The properties are expected to be completed in 2024. Intangible assets, net The Company’s intangible assets with definite useful lives primarily consist of copyrights, software, customer relationship, non-compete agreements, technology know-hows. Identifiable intangible assets resulting from the acquisitions of subsidiaries accounted for using the purchase method of accounting are estimated by management based on the fair value of assets received. The Company amortizes its intangible assets with definite useful lives over their estimated useful lives and reviews these assets for impairment. The Company typically amortizes its intangible assets with definite useful lives on a straight-line basis over the shorter of the contractual terms or the estimated useful lives of five to ten years. Goodwill Goodwill represents the excess of the consideration paid of an acquisition over the fair value of the net identifiable assets of the acquired subsidiaries at the date of acquisition. Goodwill is not amortized and is tested for impairment at least annually, more often when circumstances indicate impairment may have occurred. Goodwill is carried at cost less accumulated impairment losses. If impairment exists, goodwill is immediately written off to its fair value and the loss is recognized in the consolidated statements of operations and comprehensive loss. Impairment losses on goodwill are not reversed. The Company reviews the carrying value of intangible assets not subject to amortization, including goodwill, to determine whether impairment may exist annually or more frequently if events and circumstances indicate that it is more likely than not that an impairment has occurred. The Company has the option to assess qualitative factors to determine whether it is necessary to perform further impairment testing in accordance with ASC 350-20, as amended by ASU 2017-04. If the Company believes, as a result of the qualitative assessment, that it is more likely than not that the fair value of the reporting unit is less than its carrying amount, then the impairment test described below is required. The Company compares the fair values of each reporting unit to its carrying amount, including goodwill. If the fair value of each reporting unit exceeds its carrying amount, goodwill is not considered to be impaired. If the carrying amount of a reporting unit exceeds its fair value, impairment is recognized for the difference, limited to the amount of goodwill recognized for the reporting unit. Estimating fair value is performed by utilizing various valuation techniques, with the primary technique being an asset-based approach. Investment in unconsolidated entities The Company accounts for investments with more than 20% and less than 50% of the voting shares and have the ability to exercise significant influence over operating and financial policies of the investee using the equity method. The Company records an equity method investment on the balance sheet as a single amount. The Company records equity method investments at the historical cost in its consolidated financial statements and subsequently increases/decreases the investment account by an amount proportionate to the investor’s shares in the profit/loss from the investee. Dividends received are recorded as reduction from the account. Deconsolidation Upon the loss of control, the Company derecognizes the assets and liabilities of the subsidiary, any non-controlling interests and the other components of equity related to the subsidiary. Any surplus or deficit arising on the loss of control is recognized in profit or loss. If the Company retains any interest in the previous subsidiary, then such interest is measured at fair value at the date that control is lost. Subsequently it is accounted for as an equity-accounted investee or as cost method investment depending on the level of influence retained. Impairment for long-lived assets Long-lived assets, including property and equipment and intangible assets with finite lives are reviewed for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying value of an asset may not be recoverable. The Company assesses the recoverability of the assets based on the undiscounted future cash flows the assets are expected to generate and recognize an impairment loss when estimated undiscounted future cash flows expected to result from the use of the asset plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. If an impairment is identified, the Company would reduce the carrying amount of the asset to its estimated fair value based on a discounted cash flow approach or, when available and appropriate, to comparable market values. For the years ended December 31, 2021, 2022 and 2023, RMB 4,308,822, RMB 13,713,235 and RMB 5,499,260 (USD 776,436) impairment of long-lived assets was recognized. Business combination The purchase price of an acquired company is allocated between tangible and intangible assets acquired and liabilities assumed from the acquired business based on their estimated fair values, with the residual of the purchase price recorded as goodwill. Transaction costs associated with business combinations are expensed as incurred, and are included in general and administrative expenses in the Company’s consolidated statements of operations. The results of operations of the acquired business are included in the Company’s operating results from the date of acquisition. Fair value measurement The accounting standard regarding fair value of financial instruments and related fair value measurements defines financial instruments and requires disclosure of the fair value of financial instruments held by the Company. The accounting standards define fair value, establish a three-level valuation hierarchy for disclosures of fair value measurement and enhance disclosure requirements for fair value measures. The three levels are defined as follow: ● Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. ● Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. ● Level 3 inputs to the valuation methodology are unobservable and significant to the fair value. Financial instruments included in current assets and current liabilities are reported in the consolidated balance sheets at face value or cost, which approximate fair value because of the short period of time between the origination of such instruments and their expected realization and their current market rates of interest. Revenue recognition The Company adopted Accounting Standards Update (“ASU”) 2014-09 Revenue from Contracts with Customers (ASC Topic 606) The ASU requires the use of a new five-step model to recognize revenue from customer contracts. The five-step model requires that the Company (i) identifies the contract with the customer, (ii) identifies the performance obligations in the contract, (iii) determines the transaction price, including variable consideration to the extent that it is probable that a significant future reversal will not occur, (iv) allocates the transaction price to the respective performance obligations in the contract, and (v) recognizes revenue when (or as) the Company satisfies the performance obligation. The application of the five-step model to the revenue streams compared to the prior guidance did not result in significant changes in the way the Company records its revenue. Upon adoption, the Company evaluated its revenue recognition policy for all revenue streams within the scope of the ASU under previous standards and using the five-step model under the new guidance and confirmed that there were no differences in the pattern of revenue recognition. (i) AR Advertising Services — AR advertising display services AR advertisements are the use holographic materials integrated into advertisement on the online media platforms or offline display. The Company’s performance obligation is to identify advertising spaces, embed holographic AR images or videos into films, shows and short form videos that are hosted by leading online streaming platforms in China. Revenue is recognized at a point in time when the related services have been delivered based on the specific terms of the contract, which are commonly based on specific action (i.e., cost per impression (“CPM”) or cost per action (“CPA”) for online display and service period for offline display contracts. The Company enters into advertising contracts with advertisers where the amounts charged per specific action are fixed and determinable, the specific terms of the contracts were agreed on by the Company, the advertisers and channel providers, and collectability is probable. Revenue is recognized on a CPM basis as impressions or clicks are delivered while revenue on a CPA basis is recognized once agreed actions are performed or service period is completed. The Company considers itself as provider of the services as it has control of the specified services and products at any time before it is transferred to the customers which is evidenced by (1) the Company is primarily responsible to its customers for products and services offered where the products were designed in house and the Company has customer services team to directly service the customers; and (2) having latitude in establish pricing. Therefore, the Company acts as the principal of these arrangements and reports revenue earned and costs incurred related to these transactions on a gross basis. — Performance-based advertising service The Company provides central processing algorithm performance-based advertising services for its customers, which enable the customers to get the optimal business opportunities. The Company’s performance obligation is to help customers to accurately match consumers and traffic users, and thereby increasing the conversion rate of product sale using its proprietary data optimization algorithms. The Company’s revenue is recognized at a point when an ender user completes a transaction at a rate specified in contract. Related service fees are generally billed monthly, based on a per transaction basis. The Company considers itself as provider of the services as it has control of the specified services and products at any time before it is transferred to the customers which is evidenced by (1) it is primarily responsible to its customers for the services offered where the algorithms and data optimization were designed and performed in house and it has customer services team to directly serve the customers; and (2) having latitude in establish pricing. Therefore, VIYI acts as the principal of these arrangements and reports revenue earned and costs incurred related to these transactions on a gross basis. In addition, through the Company’s data algorithm optimization, it is able to identify certain end user needs and it facilitates certain value added services to the end users. The Company engages third party services provider to perform the services. The Company concludes that it does not control the services as the third party service provider is responsible for providing the service and its responsibility is merely to facilitate the provision of these value added service to the end users and charges a fee. As such the Company recorded revenue from the value added services on a net basis when the services is provided by third party service provider. (ii) AR Entertainment The Company’s AR entertainment includes mainly three subcategories: SDK payment channel services, software development and mobile games operations and technology developments. a. SDK Payment Channel Services The Company’s SDK payment channel services enable game players/app users to make online payments through Alipay, Unipay or Wechat pay etc. to various online content providers. When game players/app users make payments in the game or app, the SDK payment channel will automatically populate payment services for the users to fulfill payments. The Company charges a fee for the payment channel services, the pricing of which is based on the predetermined rates specified in the contract. The Company’s performance obligation is to facilitate payment services and recognizes SDK payment channel service revenue at a point in time when a user completes a payment transaction via a payment channel and is entitled to payment. Related fees are generally billed monthly, based on a per transaction basis. The Company assessed that its promise to customer is to facilitate the service of third party instead of providing the payment services itself as the Company does not have control of the services provided as the Company do not service the users directly and does not have the latitude to establish the price, and therefore, revenue from SDK payment service is recorded on a net basis. b. MR software development services The Company’s MR software development service contracts are primarily on a fixed price basis, which require the Company to perform services for MR application design, content development and integrating based on customers’ specific needs. These services also require significant production and customization. The required customization work period is generally less than one year. The Company currently does not have any modification of contract and the contracts currently do not have any variable consideration. The software customization, application design, upgrades and integration are considered as one performance obligation. The promises to transfer software, customization and upgrades are not separately identifiable as the customers do not obtain benefits from these services on its own. The Company’s MR software development service contracts are generally recognized over time during the contract period as the Company has no alternative use of the customized software and application without incurring significant additional costs. Revenue is recognized based on the Company’s measurement of progress towards completion based on input or output methods. Input methods are used only when there is a direct correlation between hours incurred and the end product delivered and output method is used when the Company could appropriately measure the customization progress towards completion. Assumptions, risks and uncertainties inherent in the estimates used to measure progress could affect the amount of revenues, receivables and deferred revenues at each reporting period. The Company has a long history of developing various MR software resulting in its ability to reasonably estimate the progress toward completion on each fixed price customized contracts. c. Mobile Games Services The Company generates revenue from jointly operated mobile game publishing services and the licensed out games. In accordance with ASC 606, Revenue Recognition: Principal Agent Considerations, the Company evaluates agreements with the game developers, distribution channels and payment channels in order to determine whether or not the Company acts as the principal or as an agent in the arrangement with each party respectively. The determination of whether to record the revenues gross or net is based on whether the Company’s promise to its customers is to provide the products or services or to facilitate a sale by a third party. The nature of the promise depends on whether the Company controls the products or services prior to transferring it. Control is evidenced by if the Company is primarily responsible for fulling the provision of services and has discretion in establishing the selling price. When the Company controls the products or services, its promise is to provide and deliver the products and revenue is presented gross. When the Company does not control the products, the promise is to facilitate the sale and revenue is presented net. — Jointly operated mobile game publishing services The Company is offering publishing services for mobile games developed by third party game developers. The Company acted as a distribution channel that it will publish the games on their own app or a third party owned app or website, named game portals. Through these game portals, game players can download the mobile games to their mobile devices and purchase coins, the virtual currency, for in game premium features to enhance their game playing experience. The Company contracts with third party payment platforms for collection services offered to game players who have purchased coins. The third party game developers, third party payment platforms and the co publishers are entitled to profit sharing based on a prescribed percentage of the gross amount charged to the game players. The Company’s obligation in the publishing services is completed at a point in time when the game players made a payment to purchase coins. With respect to the publishing services arrangements between the Company and the game developer, the Company considered that the Company does not control the services as evidenced by (i) developers are responsible for providing the game product desired by the game players; (ii) the hosting and maintenance of game servers for running the online mobile games is the responsibility of the third party platforms; (iii) the developers or third party platforms have the right to change the pricing of in game virtual items. The Company’s responsibilities are publishing, providing payment solution and market promotion service, and thus the Company views the game developers to be its customers and considers itself as the facilitator of the game developers in the arrangements with game players. Accordingly, the Company records the game publishing service revenue from these games, net of amounts paid to the game developers. — Licensed out mobile games The Company also licenses third parties to operate its mobile games developed internally through mobile portal and receives revenue from the third party licensee operators on a monthly basis. The Company’s performance obligation is to provide mobile games to game operators which enable players of the mobile games to make in game purchases and the Company recognized revenue at a point in time when game players completed the purchases. The Company records revenues on a net basis, as the Company does not have the control of the services provided as it does not have the primary responsibility for fulfillment nor does not have the right to change the pricing of the game services. d. Technology developments The Company’s technology development contract requires the Company to design applications based on customers’ specific needs. The duration of the design period is short, usually approximately 3 months or less. Revenues are generally recognized at a point in time where the Company has transferred control of the asset upon completion of the design and after the acceptance by its customer with no more future obligation of the design project. (iii) Semiconductor business The Company’s semiconductor business includes two subcategories: sale of products and software development. a. Sale of products Starting in July 2020, the Company also engage in sales of semiconductor products and other electronic accessories. The Company typically enters into written contracts with its customer where the rights of the parties, including payment terms, are identified and sales prices to the customers are fixed with no separate sales rebate, discount, or other incentive and no right of return exists on sales of inventory. The Company’s performance obligation is to deliver products according to contract specifications. The Company recognizes gross product revenue at a time when the control of products or services are transferred to customers. To distinguish a promise to provide products from a promise to facilitate the sale from a third party, the Company considers the guidance of control in ASC 606-10-55-37A and the indicators in 606-10-55-39. The Company considers this guidance in conjunction with the terms in the Company’s arrangements with both suppliers and customers. In general, the Company controls the products as it has the obligation to (i) fulfill the products delivery and (ii) bear any inventory risk as legal owners. In addition, when establishing the selling prices for delivery of the resale products, the Company has control to set its selling price to ensure it would generate profit for t |
Variable Interest Entity (_VIE_
Variable Interest Entity (“VIE”) | 12 Months Ended |
Dec. 31, 2023 | |
Variable Interest Entity (“VIE”) [Abstract] | |
Variable interest entity ("VIE") | Note 3 — Variable interest entity (“VIE”) WiMi WFOE entered into Contractual Arrangements with Beijing WiMi on November 6, 2018. The Contractual Arrangements were terminated on December 18, 2020, and WiMi WFOE entered into another Contractual Arrangements with Beijing WiMi on the same day, under which WiMi WFOE maintains effective control of Beijing WiMi. The significant terms of these Contractual Arrangements are summarized in “Note 1 — Nature of business and organization” above. As a result, the Company classifies Beijing WiMi as VIE which should be consolidated based on the structure as described in Note 1. Shenzhen Weiyixin entered into Contractual Arrangements with Shenzhen Yitian on December 24, 2020. The significant terms of these Contractual Arrangements are summarized in “Note 1 — Nature of business and organization” above. As a result, the Company classifies Shenzhen Yitian as VIE which should be consolidated based on the structure as described in Note 1. A VIE is an entity that has either a total equity investment that is insufficient to permit the entity to finance its activities without additional subordinated financial support, or whose equity investors lack the characteristics of a controlling financial interest, such as through voting rights, right to receive the expected residual returns of the entity or obligation to absorb the expected losses of the entity. The variable interest holder, if any, that has a controlling financial interest in a VIE is deemed to be the primary beneficiary and must consolidate the VIE. i) Beijing WiMi WiMi WFOE is deemed to have a controlling financial interest and be the primary beneficiary of Beijing WiMi because it has both of the following characteristics: (1) The power to direct activities at Beijing WiMi that most significantly impact such entity’s economic performance, and (2) The right to receive benefits from Beijing WiMi that could potentially be significant to such entity. Pursuant to the Contractual Arrangements, Beijing WiMi pays service fees equal to all of its net income to WiMi WFOE. The Contractual Arrangements are designed so that Beijing WiMi operate for the benefit of WiMi WFOE and ultimately, the Company. Accordingly, the accounts of Beijing WiMi are consolidated in the accompanying financial statements. In addition, its financial positions and results of operations are included in the Company’s financial statements. Under the VIE Arrangements, the Company has the power to direct activities of Beijing WiMi and can have assets transferred out of Beijing WiMi. Therefore, the Company considers that there is no asset in Beijing WiMi that can be used only to settle obligations of Beijing WiMi, except for registered capital and PRC statutory reserves, if any. As Beijing WiMi is incorporated as limited liability company under the Company Law of the PRC, creditors of the Beijing WiMi do not have recourse to the general credit of the Company for any of the liabilities of Beijing WiMi. ii) Shenzhen Yitian Shenzhen Weiyixin is deemed to have a controlling financial interest and be the primary beneficiary of Shenzhen Yitian because it has both of the following characteristics: (1) The power to direct activities at Shenzhen Yitian that most significantly impact such entity’s economic performance, and (2) The right to receive benefits from Shenzhen Yitian that could potentially be significant to such entity. Pursuant to the Contractual Arrangements, Shenzhen Yitian pays service fees equal to all of its net income to Shenzhen Weiyixin. The Contractual Arrangements are designed so that Shenzhen Yitian operate for the benefit of Shenzhen Weiyixin and ultimately, the Company. Accordingly, the accounts of Shenzhen Yitian were consolidated in the accompanying financial statements as subsidiary of Beijing WiMi up to December 24, 2020 and as VIE of Shenzhen Weiyixin from December 24, 2020 forward. Under the VIE Arrangements, the Company has the power to direct activities of Shenzhen Yitian and can have assets transferred out of Shenzhen Yitian. Therefore, the Company considers that there is no asset in Shenzhen Yitian that can be used only to settle obligations of Shenzhen Yitian, except for registered capital and PRC statutory reserves, if any. As Shenzhen Yitian is incorporated as limited liability company under the Company Law of the PRC, creditors of the Shenzhen Yitian do not have recourse to the general credit of the Company for any of the liabilities of Shenzhen Yitian. Due to the business strategy adjustment, Shenzhen Yitian and its subsidiaries no longer operate the business involving foreign investment restrictions since March 1, 2022, therefore VIYI is able to have direct equity interest in Shenzhen Yitian and its subsidiaries. On April 1, 2022, VIYI terminated the agreements under the VIE structure with Shenzhen Yitian. Shenzhen Yitian’s original shareholders transferred their respective ownership to VIYI WFOE and VIYI WFOE obtained 100% equity control of Shenzhen Yitian and its subsidiaries on April 1, 2022. The reorganization has no effect on the consolidated financial statements as Shenzhen Yitian has been under common control of VIYI Cayman that there is no change of reporting entities. The carrying amount of the VIEs’ consolidated assets and liabilities are as follows: December 31, December 31, December 31, RMB RMB USD Current assets 13,264,579 48,490,650 6,846,351 Property and equipment, net 23,132,180 91,369,608 12,900,392 Other noncurrent assets 630,494,750 265,926,480 37,545,919 Total assets 666,891,509 405,786,738 57,292,662 Total liabilities (585,116,575 ) (609,000,686 ) (85,984,255 ) Net assets (81,771,934 ) (203,213,948 ) (28,691,593 ) December 31, December 31, December 31, RMB RMB USD Current liabilities: Accounts payable 11,043,034 9,219,643 1,301,713 Deferred revenues 14,402 - - Other payables and accrued liabilities 16,654,682 16,422,802 2,318,721 Current portion of shareholder loans 42,421,345 - - Taxes payable 4,913,881 6,901,910 974,474 Third-party loan - 186,932,179 49,914,977 Intercompany payable* 510,069,231 353,532,807 26,392,785 Total current liabilities 585,116,575 573,009,341 80,902,670 Non-current shareholder loan - 35,991,345 5,081,585 Total liabilities 585,116,575 609,000,686 85,984,255 * Intercompany balances will be eliminated upon consolidation. The summarized operating results of the VIE’s are as follows: For the For the For the For the RMB RMB RMB USD Operating revenues 202,340,230 32,112,603 2,779,482 392,433 Gross profit 30,883,606 14,442,464 (210,922 ) (29,780 ) Income (loss) from operations (25,262,236 ) 589,775 (285,922,484 ) (40,369,137 ) Net income (loss) (159,401,372 ) 5,700,402 (286,436,377 ) (40,441,693 ) The summarized statements of cash flow of the VIE’s are as follows: For the For the For the For the RMB RMB RMB USD Net cash provided by operating activities 44,560,277 29,324,687 (117,520,675 ) (16,592,638 ) Net cash (used in) provided by investing activities (49,269,310 ) 5,043,123 (67,043,921 ) (9,465,870 ) Net cash (used in) provided by financing activities 2,929,456 (84,715,145 ) 180,502,179 25,484,939 Effect of exchange rate on cash and cash equivalents (1,061,729 ) 11,795 90,793 (1,720 ) Net increase/(decrease) in cash and cash equivalents (2,841,306 ) (50,335,540 ) (3,971,624 ) (575,289 ) Cash and cash equivalents, beginning of year 59,249,721 56,408,415 6,072,875 871,963 Cash, cash equivalents and restricted cash, end of year 56,408,415 6,072,875 2,101,251 296,674 The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the parent company balance sheets that sum to the total of the same amounts shown in the parent company statements of cash flows: For the Years Ended December 31, 2021 2022 2023 2023 RMB RMB RMB USD Cash and cash equivalents 55,965,855 6,072,875 2,101,250 296,674 Restricted cash 442,560 - - - Total cash, cash equivalents and restricted cash 56,408,415 6,072,875 2,101,250 296,674 |
Business Combination
Business Combination | 12 Months Ended |
Dec. 31, 2023 | |
Business Combinations [Abstract] | |
Business combination | Note 4 — Business combination Acquisition of Younike On December 23, 2022, Shenzhen Viwotong entered into Acquisition Framework Agreement to acquire 100% equity interests of Beijing Younike Information Technology Co., Ltd. (“Younike”), a provider of advertising services. The aggregate purchase price is RMB 0 and the transaction consummated on January 1, 2023. The Company’s acquisitions of Younike was accounted for as business combination in accordance with ASC 805. The Company then allocated the fair value of consideration of Younike based upon the fair value of the identifiable assets acquired and liabilities assumed on the acquisition date. The Company estimated the fair values of the assets acquired and liabilities assumed at the acquisition date in accordance with the Business Combination standard issued by the FASB with the valuation methodologies using level 3 inputs, except for other current assets and current liabilities were valued using the cost approach. Management of the Company is responsible for determining the fair value of assets acquired, liabilities assumed and intangible assets identified as of the acquisition. Acquisition-related costs incurred for the acquisitions are not material and have been expensed as incurred in general and administrative expense. The following table summarizes the fair value of the identifiable assets acquired and liabilities assumed on the acquisition date, which represents the net purchase price allocation on the date of the acquisition of Younike and translated the fair value from USD to RMB using the exchange rate on January 1, 2023 at the rate of USD 1.00 to RMB 6.9646. Fair value Fair value RMB USD Cash 21,936 3,149 Other current assets 4,821,002 692,215 Current liabilities (4,842,938 ) (695,364 ) Total consideration - - Acquisitions of Bimai On September 23, 2022, Viwotong Tech entered into Acquisition Framework Agreement to acquire 100% equity interests of Guangzhou Bimai Network Technology Co., Ltd. (“Bimai”), a provider of advertising services. The aggregate purchase price is RMB 2 (USD 0.3) and the transaction consummated on September 23, 2022. The Company’s acquisitions of Bimai accounted for as business combination in accordance with ASC 805. The Company then allocated the fair value of consideration of Bimai based upon the fair value of the identifiable assets acquired and liabilities assumed on the acquisition date. The Company estimated the fair values of the assets acquired and liabilities assumed at the acquisition date in accordance with the Business Combination standard issued by the FASB with the valuation methodologies using level 3 inputs, except for other current assets and current liabilities were valued using the cost approach. Management of the Company is responsible for determining the fair value of assets acquired, liabilities assumed and intangible assets identified as of the acquisition. Acquisition-related costs incurred for the acquisitions are not material and have been expensed as incurred in general and administrative expense. The following table summarizes the fair value of the identifiable assets acquired and liabilities assumed on the acquisition date, which represents the net purchase price allocation on the date of the acquisition of Bimai and translated the fair value from USD to RMB using the exchange rate on September 23, 2022 at the rate of USD 1.00 to RMB 6.9920 and the net purchase price allocation on the date of the acquisition. Fair value Fair value RMB USD Cash 2,035 291 Other current assets 2,213,241 316,539 Current liabilities (2,215,276 ) (316,830 ) Total consideration - - The amount of revenue and net loss that resulted from the acquisitions were approximately RMB 4.6 million (USD 0.7 million) and RMB 0.6 million (USD 0.1 million) during the years ended December 31, 2022. On January 1, 2023, Viwotong Tech entered into an equity transfer agreement to transfer 100% of the issued share capital of Bimai to one unrelated individual at RMB 0. The disposal resulted in a loss from disposal of approximately . Acquisitions of Shenzhen Yichong, Shenzhen Shengtang and Shenzhen Yaodi On January 22, 2021, Shenzhen ICinit purchased 100% equity interests of Shenzhen Yichong Micro-Electronic Technology Co., Ltd. (“Shenzhen Yichong”), together with its 80% owned subsidiary, Shenzhen Saineng Micro-Electronic Electronic Co., Ltd. (“Shenzhen Saineng”), a provider of electronic components, for RMB 2 (approximately USD 0.3). On March 1, 2021, Shenzhen ICinit purchased 100% equity interests of Shenzhen Shengtang Micro-Electronic Technology Co. (“Shenzhen Shengtang”), Ltd., a provider of electronic components, for RMB 2 (approximately USD 0.3). On May 28, 2021, Shenzhen ICinit purchased 100% equity interests of Tianjin Yaodi Tomorrow Technology Co. (“Shenzhen Yaodi”), Ltd., a provider of electronic components, for RMB 2 (approximately USD 0.3). The Company’s acquisitions of Shenzhen Yichong, Shenzhen Shengtang and Shenzhen Yaodi were accounted for as business combination in accordance with ASC 805. The Company then allocated the fair value of consideration of Shenzhen Yichong, Shenzhen Shengtang and Shenzhen Yaodi based upon the fair value of the identifiable assets acquired and liabilities assumed on the acquisition date. The Company estimated the fair values of the assets acquired and liabilities assumed at the acquisition date in accordance with the Business Combination standard issued by the FASB with the valuation methodologies using level 3 inputs, except for other current assets and current liabilities were valued using the cost approach. Management of the Company is responsible for determining the fair value of assets acquired, liabilities assumed and intangible assets identified as of the acquisition date and considered a number of factors including valuations from independent appraisers. Acquisition-related costs incurred for the acquisitions are not material and have been expensed as incurred in general and administrative expense. The following table summarizes the fair value of the identifiable assets acquired and liabilities assumed on the acquisition date, which represents the net purchase price allocation on the date of the acquisition of Shenzhen Yichong and translated the fair value from USD to RMB using the exchange rate on January 22, 2021 at the rate of USD 1.00 to RMB 6.4617, the net purchase price allocation on the date of the acquisition of Shenzhen Shengtang and translated the fair value from USD to RMB using the exchange rate on March 1, 2021, 2021 at the rate of USD 1.00 to RMB 6.4754, and the net purchase price allocation on the date of the acquisition of Shenzhen Yaodi and translated the fair value from USD to RMB using the exchange rate on May 28, 2021 at the rate of USD 1.00 to RMB 6.3858. Fair value Fair value RMB USD Cash 7,252,052 1,122,073 Other current assets 14,478,000 2,238,141 Plant and equipment 987,482 152,736 Current liabilities (16,936,210 ) (2,619,871 ) Net assets of acquirees 5,781,324 893,079 Gain on acquisition (5,781,318 ) (893,078 ) Total consideration 6 1 The amount of sales and net loss that resulted from the acquisitions and included in the consolidated statements of income and comprehensive income during the year ended December 31, 2021 were RMB 103,201,670 and RMB 783,032, respectively. Acquisition of Shanghai Guoyu On July 1, 2021, Weidong acquired 99% interest of Shanghai Guoyu Information Technologies Co., Ltd (“Shanghai Guoyu”). The remaining 1% of Shanghai Guoyu is acquired by YY Online. The aggregate purchase price is RMB 20,000,000. On July 19, 2021 Shanghai Guoyu established 100% owned subsidiary Kashi Guoyu Information Technologies Co., Ltd (“Kashi Guoyu”). On July 14, 2021, Weidong transferred its 100% equity interest of Horgas 233 and Horgas Weidong to Shanghai Guoyu. Shanghai Guoyu is committed to the R&D and application of intelligent visual algorithm technology, using image recognition, data analysis and modeling, virtual imaging, visual artificial intelligence algorithm and other technologies, integrating algorithm and data processing capabilities, and integrating functions from data processing to algorithm application, so as to provide customers with a full stack of intelligent visual algorithm services. At present, Shanghai Guoyu mainly serves the Internet marketing industry. The development of Shanghai Guoyu’s business is closely related to the progress and development of the computer vision industry and the Internet marketing industry. The Company’s acquisition of Shanghai Guoyu was accounted for as business combination in accordance with ASC 805. The Company then allocated the fair value of consideration of Shanghai Guoyu based upon the fair value of the identifiable assets acquired and liabilities assumed on the acquisition date. The Company estimated the fair values of the assets acquired and liabilities assumed at the acquisition date in accordance with the Business Combination standard issued by the FASB with the valuation methodologies using level 3 inputs, except for other current assets and current liabilities were valued using the cost approach. Management of the Company is responsible for determining the fair value of assets acquired, liabilities assumed and intangible assets identified as of the acquisition date and considered a number of factors including valuations from independent appraisers. Acquisition-related costs incurred for the acquisitions are not material and have been expensed as incurred in general and administrative expense. The following table summarizes the fair value of the identifiable assets acquired and liabilities assumed on the acquisition date, which represents the net purchase price allocation on the date of the acquisition of Shanghai Guoyu based on valuation performed by an independent valuation firm engaged by the Company and translated the fair value from USD to RMB using the exchange rate on July 1, 2021 at the rate of USD 1.00 to RMB 6.4709. Fair value Fair value RMB USD Copyright 8,955,000 1,383,888 Goodwill 13,283,750 2,052,844 Deferred tax liabilities (2,238,750 ) (345,972 ) Total consideration 20,000,000 3,090,760 Software consists of mainly data algorithm software, with a fair value of approximately RMB 9.0 million (USD 1.4 million) and estimated finite useful life of 6 years. The amount of sales and net income that resulted from the acquisitions and included in the consolidated statements of income and comprehensive income during the year ended December 31, 2021 were immaterial. Acquisitions of Tapuyu and Pengcheng Keyi On November 17, 2021, Viwotong Tech entered into Acquisition Framework Agreement to acquire 100% equity interests of Guangzhou Tapuyu Internet Technology Co., Ltd. (“Tapuyu”), a provider of E-commerce services and application of intelligent visual algorithm technology. The aggregate purchase price is RMB 2 (USD 0.3) and the transaction consummated on November 19, 2021. On November 17, 2021, Viwotong Tech entered into Acquisition Framework Agreement to acquire 100% equity interests of Pengcheng Keyi (Xi’an) Intelligence Technology Co., Ltd. (“Pengcheng Keyi”), a provider of testing equipment development and sales. The aggregate purchase price is RMB 2 (USD 0.3) and the purchase consummated on December 7, 2021. The Company’s acquisitions of Tapuyu and Pengcheng Keyi were accounted for as business combination in accordance with ASC 805. The Company then allocated the fair value of consideration of Tapuyu and Pengcheng Keyi based upon the fair value of the identifiable assets acquired and liabilities assumed on the acquisition date. The Company estimated the fair values of the assets acquired and liabilities assumed at the acquisition date in accordance with the Business Combination standard issued by the FASB with the valuation methodologies using level 3 inputs, except for other current assets and current liabilities were valued using the cost approach. Management of the Company is responsible for determining the fair value of assets acquired, liabilities assumed and intangible assets identified as of the acquisition date and considered a number of factors including valuations from independent appraisers. Acquisition-related costs incurred for the acquisitions are not material and have been expensed as incurred in general and administrative expense. The following table summarizes the fair value of the identifiable assets acquired and liabilities assumed on the acquisition date, which represents the net purchase price allocation on the date of the acquisition of Tapuyu and translated the fair value from USD to RMB using the exchange rate on November 19, 2021 at the rate of USD 1.00 to RMB 6.3825 and the net purchase price allocation on the date of the acquisition of Pengcheng Keyi and translated the fair value from USD to RMB using the exchange rate on December 7, 2021 at the rate of USD 1.00 to RMB 6.3738. Fair value Fair value RMB USD Cash 161,638 25,335 Other current assets 1,701,734 266,815 Current liabilities (1,863,372 ) (292,150 ) Total consideration - - The amount of sales and net income that resulted from the acquisitions and included in the consolidated statements of income and comprehensive income during the year ended December 31, 2021 were immaterial. On July 1, 2022, Viwotong Tech entered into an equity transfer agreement to transfer 99.0% and 1.0% of the issued share capital of Pengcheng Keyi to two unrelated individuals at RMB 1.0 and RMB 0.1, respectively. The disposal resulted in a gain from disposal of approximately RMB 66,000 (USD 9,000). |
Deconsolidation
Deconsolidation | 12 Months Ended |
Dec. 31, 2023 | |
Deconsolidation [Abstract] | |
Deconsolidation | Note 5 — Deconsolidation Deconsolidation of ICinit On October 1, 2021, the Company’s board approved the equity transfer agreement between WiMi HK and Lucky Monkey Holding Limited, pursuant to which WiMi Cayman transferred 2% of the issued share capital of ICinit for a consideration of HKD 50,000 approximately RMB 41,000 to streamline its operating subsidiaries in the semiconductor segment. The sale resulted in a loss of control of the subsidiaries while the Company retained 49% noncontrolling interest in ICinit. The Company’s decision to divest ICinit is to improve the operating results of the Company’s semiconductor segment. The fair value of the operations of ICinit, determined as of October 1, 2021, included the estimated consideration received, less costs to sell. Gain from sales of this transaction is as follows: RMB USD Consideration received 40,975 6,427 Fair value of retained noncontrolling interest (49%) 1,003,886 157,455 Carrying value of noncontrolling interest 1,426,158 223,687 2,471,019 387,569 Less: ICinit’s book value (3,361,955 ) (527,308 ) Exchange rate difference (10,590 ) - Loss on deconsolidation (901,526 ) (139,739 ) Net loss on revaluation of retained interest amounted to RMB 410,337. As result of deconsolidation, the Company recognized RMB 27,589,530 of related party receivable from ICinit, which was previously eliminated in consolidation. The balance was repaid to the Company on May 7, 2022. Income from ICinit for the three months from October 1, 2021 to December 31, 2021 amounted to RMB 721,439. On May 25, 2022, the Company entered into equity transfer agreement between WiMi HK and Lucky Monkey Holding Limited, pursuant to which WiMi HK transferred 30% of the issued share capital of ICinit for a consideration of HKD 3,050,000 (USD 391,186). The consideration was received in July 2022. As a result of the transfer, the Company now owns 19% equity interest of ICinit and concluded the Company no longer has significant influence over ICinit and investment in ICinit from RMB 1,460,484 (USD 209,701) is accounted for as a cost method investment. The Company recognized RMB 387,632 (USD 55,657) gain from this transfer. Income from ICinit from January 1, 2022 to May 25, 2022 amounted to RMB 1,826,318 (USD 262,229). Disposal of Pengcheng Keyi On July 1, 2022, Viwotong Tech entered into an equity transfer agreement to transfer 99.0% and 1.0% of the issued share capital of Pengcheng Keyi to two unrelated individuals at RMB 1.0 and RMB 0.1, respectively. The disposal resulted in a gain from disposal of RMB 65,587 (USD 9,417). Disposal of Shenzhen Kuxuanyou and its subsidiaries On November 1, 2022, the Company’s board approved the equity transfer agreement between Beijing WiMi and Cui, Yang and Shenzhen Zhangshangkuyu Technology Ltd. to transfer 100% equity interest of Shenzhen Kuxuanyou and its subsidiaries Shenzhen Yiruan Tianxia Technology Co., Ltd. (“Shenzhen Yiruan”) and Shenzhen Yiyun Technology Co., Ltd. (“Shenzhen Yiyun”), and recognized RMB 8,887,165 (USD 1,276,049) of gain from the transfer. The transfer was effect on November 10, 2022. Since the disposal did not represent any strategic change of the Company’s operation, the disposal was not presented as discontinued operations. Net assets of the entities disposed and gain on disposal was as follows: December 31, RMB Total current assets 13,370,652 Total other assets 25,022 Total assets 13,395,674 Total current liabilities 22,402,087 Total net assets (9,006,413 ) Noncontrolling interests 53,661 Total consideration - Total gain on disposal 8,952,752 Disposal of Bimai On January 1, 2023, Viwotong Tech entered into an equity transfer agreement to transfer 100% of the issued share capital of Bimai to one unrelated individual at RMB 0. The disposal resulted in a loss from disposal of approximately RMB 1.1 million (USD 0.2 million). Disposal of Fe-da Electronics and its subsidiaries On April 6, 2023, the Company’s board approved the equity transfer agreement between VIYI and LIM TZEA, to transfer 100% equity interest of Fe-da Electronics Co., Ltd and its subsidiaries Wisdom Lab Inc., EXCEL Technology Co., Ltd. and recognized RMB 17,801,786 (USD 2,526,259) of loss from the transfer. Since the disposal did not represent any strategic change of the Company’s operation, the disposal was not presented as discontinued operations. Net assets of the entities disposed and gain on disposal was as follows: RMB USD Total current assets 3,583,579 505,962 Total other assets 115,270 16,275 Total assets 3,698,849 522,237 Total current liabilities 301,464 42,563 Total net assets 3,397,385 479,674 Total consideration - - Total loss on disposal 17,801,786 2,526,259 |
Recapitalization
Recapitalization | 12 Months Ended |
Dec. 31, 2023 | |
Recapialization Abstract | |
Recapitalization | Note 6 — Recapitalization VIYI entered into the Business Combination and Merger Agreement dated June 10, 2021 (as amended on January 24, 2022, August 2, 2022, August 3, 2022 and August 10, 2022, the “Merger Agreement”), by and among WiMi, Venus Acquisition Corporation (“Venus”), Venus Merger Sub Corporation (“Venus Merger Sub”), a Cayman Islands exempted company incorporated for the purpose of effectuating the Business Combination. On December 9, 2022, in accordance with the Merger Agreement, the closing of the business combination (the “Closing”) occurred, pursuant to which Venus issued 39,603,961 ordinary shares to VIYI shareholders. As a result of the consummation of the business combination, VIYI is now a wholly-owned subsidiary of the Venus, which has changed its name to MicroAlgo Inc. The business combination was accounted for as a reverse recapitalization in accordance with U.S. GAAP. Under this method of accounting, Venus will be treated as the “acquired” company for financial reporting purposes. This determination was primarily based on the holders of VIYI expecting to have a majority of the voting power of the post-combination company, VIYI senior management comprising substantially all of the senior management of the post-combination company, the relative size of VIYI compared to Venus, and VIYI operations comprising the ongoing operations of the post-combination company. Accordingly, for accounting purposes, the business combination will be treated as the equivalent of VIYI issuing shares for the net assets of Venus, accompanied by a recapitalization. The net assets of Venus will be stated at historical cost, with no goodwill or other intangible assets recorded. Operations prior to the business combination will be those of VIYI. Immediately after giving effect to the Business Combination, MicroAlgo has 43,856,706 ordinary shares issued and outstanding consisting of (i) the 3,963,745 ordinary shares held by previous Venus public shareholders and its Sponsor; (ii) the 39,603,961 newly issued Venus ordinary shares to the VIYI shareholders pursuant to the Merger Agreement, of which 792,079 ordinary shares issued to the Majority Shareholder will be held in escrow to satisfy any potential indemnification claims(s) which may be made by Venus under the Merger Agreement; (iii) the 214,000 newly issued Venus ordinary shares to the Joyous JD Limited as part of the backstop investment; and (iv) the 75,000 ordinary shares held by Venus’ underwriter. Venus rights held by its Sponsor and previous public investors were automatically converted to 482,500 ordinary shares upon the consummation of the Business Combination. Immediately after the closing of the Business Combination, MicroAlgo has 4,825,000 warrants issued and outstanding, consisting of (i) 4,600,000 warrants held by previous public investors of Venus; and (ii) 225,000 warrants held by the Sponsor of Venus. Common shares issued and outstanding following the Closing are as follows: Venus public shares after redemption 2,106,245 Venus shares converted from rights 482,500 Venus Sponsor shares 1,375,000 Venus shares issued to underwriter 75,000 Venus shares issued in the Business Combination 39,603,961 Venus shares issued to Joyous JD Limited 214,000 Weighted average shares outstanding 43,856,706 Percent of shares owned by VIYI shareholders 90.3 % Percent of shares owned by underwriter 0.17 % Percent of shares owned by Venus 9.04 % Percent of shares owned by Joyous JD limited 0.49 % As of December 31, 2022 and 2023, WiMi had 65.9 % and 56.0% outstanding equity interest in MicroAlgo, respectively. |
Short Term Investments
Short Term Investments | 12 Months Ended |
Dec. 31, 2023 | |
Short Term Investments [Abstract] | |
Short term investments | Note 7 — Short term investments Short term investments consist of the following: December 31, 2022 December 31, 2023 December 31, 2023 RMB RMB USD Marketable securities 38,448,624 435,659,383 61,510,354 Fair value disclosure: December 31, 2022 December 31, Fair Value 2022 Level 1 Level 2 Level 3 RMB RMB RMB RMB Marketable securities 38,448,624 38,448,624 - - December 31, 2023 December 31, Fair Value 2023 Level 1 Level 2 Level 3 RMB RMB RMB RMB Marketable securities 435,659,383 435,659,383 - - There is no transfer between the levels for the periods presented. Gain (loss) from sales of investments amounted to of approximately RMB 2.5 million, RMB (88.3) million and RMB 52.7 million (USD 7.4 million) for the years ended December 31, 2021, 2022 and 2023, respectively. |
Accounts Receivable, Net
Accounts Receivable, Net | 12 Months Ended |
Dec. 31, 2023 | |
Accounts Receivable, Net [Abstract] | |
Accounts receivable, net | Note 8 — Accounts receivable, net Accounts receivable, net consisted of the following: December 31, December 31, December 31, RMB RMB USD Accounts receivable 137,427,191 51,457,258 7,265,204 Less: allowance for doubtful accounts (117,080,588 ) (27,735,262 ) (3,915,917 ) Accounts receivable, net 20,346,603 23,721,996 3,349,287 The following table summarizes the changes in allowance for doubtful accounts: December 31, 2022 December 31, 2023 December 31, 2023 RMB RMB USD Beginning balance 111,639,312 117,080,588 16,810,813 Provision for credit losses, net of recovery 4,743,475 (80,857,764 ) (11,416,234 ) Deconsolidation of ICinit and Shenzhen Kuxuanyou and subsidiaries (7,932,721 ) - - Deconsolidation of Fe-da and subsidiaries - (8,487,562 ) (1,198,351 ) Exchange rate difference 8,630,522 - (280,311 ) Ending balance 117,080,588 27,735,262 3,915,917 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 9 — Inventories Inventories consist of the following: December 31, December 31, December 31, RMB RMB USD Finished goods – holographic accessories 1,494,770 - - Finished goods – semiconductors 909,048 - - Total inventories 2,403,818 - - Inventory impairment amounted to RMB 8,116,218, nil nil |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment, net | Note 10 — Property and equipment, net Property and equipment, net consist of the following: December 31, December 31, December 31, RMB RMB USD Office electronic equipment 1,381,602 1,144,347 161,569 Office fixtures and furniture 35,533 174,652 24,659 Vehicles 1,201,452 1,201,452 169,632 Building 24,825,710 94,259,656 13,308,435 Leasehold improvements 1,153,205 271,572 38,343 Subtotal 28,597,502 97,051,679 13,702,638 Less: accumulated depreciation (4,449,209 ) (4,916,961 ) (694,221 ) Total 24,148,293 92,134,718 13,008,417 Depreciation expense for the years ended December 31, 2021, 2022 and 2023 amounted to RMB 1,124,655, RMB 1,663,412 and RMB 1,513,067 (USD 213,629), respectively. Impairment loss amounted to RMB 38,573, RMB 136,701 and nil |
Cost Method Investments
Cost Method Investments | 12 Months Ended |
Dec. 31, 2023 | |
Cost Method Investments [Abstract] | |
Cost method investments | Note 11 — Cost method investments Cost method investments consist of the following: December 31, December 31, December 31, RMB RMB USD 19.0% Investment (1 company in the sales of semiconductor products and related accessories areas) 1,460,484 1,114,030 157,289 10% Investment (1 company) 38,000,000 268,422 37,898 9.0% Investment (2 company in the AR and virtual reality (“VR”) areas) 45,000,000 8,689,076 1,226,803 8.0% Investment (2 companies in the AR and VR areas) 1,100,000 - - 6.0% Investment (1 company in the AR, VR, software and robotic areas) 600,000 - - 5.5% Investment (1 company in the AR, VR 600,000 - - 5.0% Investment (23 companies in the AR, VR and digital marketing areas as of December 31, 2023 13,600,000 542,654 76,617 4.5% Investment (1 company in the VR medical treatment areas) 200,000 - - 4.0% Investment (13 companies in the AR, VR, 3D animation and software areas) 8,400,000 289,369 40,856 3.5% Investment (2 companies in the AR and VR areas) 1,200,000 342,948 48,421 3.0% Investment (5 companies in the AR, VR and 3D animation areas) 3,900,000 43,867 6,193 2.55% Investment (1 company in the AR, VR and 3D animation areas) 13,929,200 - - 2.0% Investment (3 companies in the AR, VR, 3D animation and software areas) 1,200,000 25,022 3,533 1.0% Investment (12 companies in the AR, VR, 3D animation, hardware and software areas) 41,450,000 185,320 26,165 Total 170,639,684 11,500,708 1,623,775 During the years ended December 31, 2021, 2022 and 2023, the Company totally made RMB 600,000, RMB 55,462,670 and nil On May 25, 2022, WiMi HK transferred 30% of the issued share capital of ICinit for a consideration of HKD 3,050,000 (approximately USD 391,186) to a third party. As a result of the transfer, the Company now owns 19% equity interest of ICinit and concluded the Company no longer has significant influence over ICinit and investment in ICinit from RMB 1,460,484 (USD 209,701) is accounted for as a cost method investment. |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2023 | |
Intangible Assets, Net [Abstract] | |
Intangible assets, net | Note 12 — Intangible assets, net The Company’s intangible assets with definite useful lives primarily consist of copyrights, software, customer relationship, non-compete agreements and technology know-hows. The following table summarizes acquired intangible asset balances as of: December 31, December 31, December 31, RMB RMB USD Copyrights 8,955,000 3,731,250 526,812 Non-compete agreements 42,200,000 42,200,000 5,958,180 Subtotal 51,155,000 45,931,250 6,484,992 Less: accumulated amortization (44,438,750 ) (45,931,250 ) (6,484,992 ) Intangible assets, net 6,716,250 - - Amortization expense for the years ended December 31, 2021, 2022 and 2023 amounted to RMB 17,400,708, RMB 8,820,352 and RMB 1,516,092 (USD 214,056), respectively. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill [Abstract] | |
Goodwill | Note 13 — Goodwill Goodwill represents the excess of the consideration paid of an acquisition over the fair value of the net identifiable assets of the acquired subsidiaries at the date of acquisition. Goodwill is not amortized and is tested for impairment at least annually, more often when circumstances indicate impairment may have occurred. We performed goodwill impairment assessment for the reporting units as of December 31, 2023 using an asset-based approach with the assistance of a third party valuation firm. The valuation of 100% of the equity interest of the reporting unit is based on the asset-based approach, which directly incorporates information about the economic benefits contributed by the underlying asset, and determines the value of the subject matter based on the balance sheet at the appraisal date and the value of all assets and liabilities at the appraisal date. We have three reporting units that have goodwill. The following table categorizes our goodwill by reporting unit as of December 31, 2023 Segment Reporting Net Fair Carrying (in RMB thousands) (in RMB thousands) (in RMB thousands) AR advertising services Shenzhen Yidian - 175,860 187,829 AR advertising services Shenzhen Yitian - 203,596 203,596 AR advertising services Guoyu - 159 159 The Company’s goodwill impairment analysis is performed, and related impairment charges recorded, after the impairment analysis and recognition, of impairment charges for long-lived assets other than goodwill and indefinite-lived intangible assets. The Company concluded that the carrying value of Shenzhen Yidian, Shenzhen Yitian and Guoyu exceeds or equals their respective fair value, resulting in a fully goodwill impairment for Shenzhen Yidian, Shenzhen Yitian and Guoyu for the year ended December 31, 2023. |
Other Payables and Accrued Liab
Other Payables and Accrued Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Other Payables and Accrued Liabilities [Abstract] | |
Other payables and accrued liabilities | Note 14 — Other payables and accrued liabilities Other payables and accrued liabilities consist of the following: December 31, December 31, December 31, RMB RMB USD Salary payables 1,909,260 1,068,104 150,805 Other payables and accrued expenses 10,233,141 159,677,872 22,544,774 Accrued interest payable 10,086,400 9,739,427 1,375,101 Total other payables and accrued liabilities 22,228,801 170,485,403 24,070,680 Other payables and accrued expenses include other payables with the amount of RMB 151,178,632 (USD 21,344,774) and other payments-intercompany with the amount of RMB 8,499,240 (USD 1,200,000), which are the temparary loans. |
Related Party Balances and Tran
Related Party Balances and Transactions | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Balances and Transactions [Abstract] | |
Related party balances and transactions | Note 15 — Related party balances and transactions The Company borrowed RMB 75,500,000 from Shanghai Junei Internet Co. (which is under common control of Jie Zhao) in 2019 for cash flow purpose. The Company repaid RMB 91,500,000 during the year ended December 31, 2020. The Company also borrowed additional RMB 96,300,000 during the year ended December 31, 2020. The Company borrowed additional RMB 42,600,000 and repaid RMB 35,763,510 during the year ended December 31, 2021. The Company borrowed additional RMB 47,029,482 repaid RMB 75,644,627 during the year ended December 31, 2022. We repaid RMB 6,430,000 (USD 907,846) during the year ended December 31, 2023.The loan has an annual interest rate of 7% and is due in 2021 and 2022. During the year ended December 31, 2021, 2022 and 2023, interest expense related to this loan, included in finance expense, amounted to RMB 5,625,293, and RMB 1,542,315 and nil Our subsidiary Shenzhen Yiyun borrowed a total of RMB 16,100,000 from Yang Cui (executive director of Shenzhen Yiyun) on August 20, 2021 for cash flow purpose. The loan bears no interest and is due in five years. We repaid RMB 1,500,000 (USD 215,375) during the year ended December 31, 2022. We transferred Shenzhen Yiyun on November, 2022. (See Note 5 for detail) Therefore, the loan balance RMB 14,600,000 (USD 2,096,316) was transferred and the balance was RMB 0 as of December 31, 2022. Name of Related Parties Relationship Nature December 31, December 31, December 31, December 31, RMB RMB RMB USD Yang Cui Executive director of Loan 16,100,000 - - - Shanghai Junei Internet Co. Under common control of Loan 71,036,490 42,421,345 35,991,345 5,081,585 Total: 87,136,490 42,421,345 35,991,345 5,081,585 Related party loan – current 20,000,000 42,421,345 - - Related party loan – non-current 67,136,490 - 35,991,345 5,081,585 The maturities schedule is as follows: Twelve months ending December 31, RMB USD 2024 - - 2025 35,991,345 5,081,585 Total 35,991,345 5,081,585 Joyous JD is a non-controlling shareholder of MicroAlgo. The amount below represents advance to Venus Acquisition Corp prior to the merger. The amount was non-interest bearing and due on demand. December 31, December 31, December 31, December 31, 2021 2022 2023 2023 RMB RMB RMB USD Other payables Related Party-Joyous JD - 1,067,903 1,086,012 153,333 |
Taxes
Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Taxes [Abstract] | |
Taxes | Note 16 — Taxes Income tax Cayman Islands Under the current laws of the Cayman Islands, WiMi Cayman, MicroAlgo and VIYI are not subject to tax on income or capital gain. Additionally, upon payments of dividends to the shareholders, no Cayman Islands withholding tax will be imposed. Hong Kong WiMi HK, Micro Beauty, VIDA, ICinit, VIYI Ltd, Viwo Tech and Viwotong Tech are incorporated in Hong Kong and are subject to Hong Kong Profits Tax on the taxable income as reported in its statutory financial statements adjusted in accordance with relevant Hong Kong tax laws. The applicable tax rate is 16.5% in Hong Kong. The Company did not make any provisions for Hong Kong profit tax as there were no assessable profits derived from or earned in Hong Kong since inception. Under Hong Kong tax law, WiMi HK is exempted from income tax on its foreign-derived income and there are no withholding taxes in Hong Kong on remittance of dividends. Seychelles Skystar is incorporated in Seychelles and is not subject to tax on income generated outside of Seychelles under the current law. In addition, upon payments of dividends by these entities to their shareholders, no withholding tax will be imposed. Singapore Fe-da Electronics and Weeto are incorporated in Singapore and is subject to Singapore Profits Tax on the taxable income as reported in its statutory financial statements adjusted in accordance with relevant Singapore tax laws. The applicable tax rate is 17% in Singapore, with 75% of the first SGD 10,000 (approximately RMB 49,000) taxable income and 50% of the next SGD 190,000 (approximately RMB 937,000) taxable income are exempted from income tax. PRC The subsidiaries and VIE incorporated in the PRC are governed by the income tax laws of the PRC and the income tax provision in respect to operations in the PRC is calculated at the applicable tax rates on the taxable income for the periods based on existing legislation, interpretations and practices in respect thereof. Under the Enterprise Income Tax Laws of the PRC (the “EIT Laws”), domestic enterprises and Foreign Investment Enterprises (the “FIE”) are usually subject to a unified 25% enterprise income tax rate while preferential tax rates, tax holidays and even tax exemption may be granted on case-by-case basis. EIT grants preferential tax treatment to certain High and New Technology Enterprises (“HNTEs”). Under this preferential tax treatment, HNTEs are entitled to an income tax rate of 15%, subject to a requirement that they re-apply for HNTE status every three years. Korgas Duodian, and Korgas Weidong were formed and registered in Korgas in Xinjiang, China from 2016 to 2020, and Kashi Duodian was formed and registered in Kashi in Xinjiang, China in 2019. These companies are not subject to income tax for 5 years and can obtain another two years of tax exempt status and three years at reduced income tax rate of 12.5% after the 5 years due to the local tax policies to attract companies in various industries. Shenzhen Qianhai was formed and registered in Qianhai District in Guangdong Provence, China in 2015. It is subject to income tax at a reduced rate of 15% due to the local tax policies to attract companies in various industries. Lixin Technology and Weidong were formed and registered in the free tax zone in Hainan Provence, China in 2020. These companies are subject to income tax at a reduced rate of 15% due to the local tax policies to attract companies in various industries. Tax savings for the years ended December 31, 2021, 2022 and 2023 amounted to RMB 18,153,904, RMB 10,314,162 and RMB 497,152 (USD 70,551), respectively. The Company’s basic and diluted earnings per shares would have been lowered by RMB 0.14 and RMB 0.14 per share for the year ended December 31, 2021 without the preferential tax rate reduction, respectively. The Company’s basic and diluted earnings per shares would have been lowered by RMB 0.06 and RMB 0.06 per share for the year ended December 31, 2022 without the preferential tax rate reduction, respectively. The Company’s basic and diluted earnings per shares would have been lowered by RMB 0.18 (USD 0.03) and RMB 0.18 (USD 0.03) per share for the year ended December 31, 2023 without the preferential tax rate reduction, respectively. Significant components of the benefit of (provision for) income taxes are as follows: For the For the For the For the RMB RMB RMB USD Current (2,189,629 ) (135,968 ) (140,037 ) (19,772 ) Deferred 3,024,851 3,758,877 2,666,910 376,539 Income tax credit 835,222 3,622,909 2,526,873 356,767 The following table reconciles China statutory rates to the Company’s effective tax rate: For the For the For the China statutory income tax rate 25.0 % 25.0 % 25.0 % Preferential tax rate in China (14.0 )% (2.6 )% (20.0 )% Tax rate difference outside China (1) (7.0 )% (18.0 )% (16.8 )% Change in valuation allowance 4.7 % (9.9 )% (5.0 )% Additional R&D deduction in China (8.5 )% (0.3 )% - Permanent difference 0.1 % 6.8 % 17.2 % Effective tax rate 0.3 % 1.0 % 0.5 % (1) It is mainly due to the lower tax rate of the entities incorporated in Hong Kong, Singapore, and tax exempt in Cayman Islands. Deferred tax assets and liabilities Significant components of deferred tax assets and liabilities were as follows: December 31, December 31, December 31, RMB RMB USD Deferred tax assets: Allowance for doubtful accounts 372,554 987,848 139,473 Net operating loss carryforward 49,695,212 19,352,270 2,732,329 Less: valuation allowance (50,067,766 ) (19,352,270 ) (2,732,329 ) Deferred tax assets, net - 987,848 139,473 Deferred tax liabilities: Recognition of intangible assets arising from business combinations 1,679,063 - - Total deferred tax liabilities, net 1,679,063 - - The Company evaluated the recoverable amounts of deferred tax assets and provided a valuation allowance to the extent that future taxable profits will be available against which the net operating loss and temporary difference can be utilized. The Company considers both positive and negative factors when assessing the future realization of the deferred tax assets and applied weigh to the relative impact of the evidence to the extent it could be objectively verified. The Company’s cumulative net operating loss (“NOL”) was RMB 19,352,270 (USD 2,732,329) as of December 31, 2023. The Company recognized deferred tax liabilities related to the excess of the intangible assets reporting basis over its income tax basis as a result of fair value adjustment from acquisitions in 2015. The deferred tax liabilities will reverse as the intangible assets are amortized for financial statement reporting purposes. Uncertain tax positions The Company evaluates each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measure the unrecognized benefits associated with the tax positions. As of December 31, 2022 and 2023, the Company did not have any significant unrecognized uncertain tax positions. The Company did not incur any interest and penalties related to potential underpaid income tax expenses for the years ended December 31, 2021, 2022 and 2023 and also does not anticipate any significant increases or decreases in unrecognized tax benefits in the next 12 months from December 31, 2023. Value added taxes (“VAT”) and goods and services taxes (“GST”) Revenue represents the invoiced value of service, net of VAT or GST. The VAT and GST are based on gross sales price. VAT rate is 6% on services and 13% on goods in China, and GST rate is generally 7% in Singapore. Taxes payable consisted of the following: December 31, December 31, December 31, RMB RMB USD VAT taxes payable 41,902 396,457 55,975 Income taxes payable 5,363,733 5,024,623 709,422 Other taxes payable 24,094 2,009,768 283,758 Total 5,429,729 7,430,848 1,049,155 |
Concentration of Risk
Concentration of Risk | 12 Months Ended |
Dec. 31, 2023 | |
Concentration of Risk [Abstract] | |
Concentration of risk | Note 17 — Concentration of risk Credit risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and short term investments. In China, the insurance coverage for cash deposits of each bank is RMB 500,000. As of December 31, 2023, cash balance of RMB 152,936,317 (USD 21,592,940) was deposited with financial institutions located in China, of which RMB 139,482,320 (USD 19,693,382) was subject to credit risk. The Hong Kong Deposit Protection Board pays compensation up to a limit of HKD 500,000 (approximately USD 64,000) if the bank with which an individual/a company hold its eligible deposit fails. As of December 31, 2023, cash balance of HKD 201,286,738, approximately RMB 182,410,068 (USD 25,754,312) was maintained at financial institutions in Hong Kong, of which HKD 197,908,616 approximately RMB 179,348,746 (USD 25,322,087) was subject to credit risk. The Singapore Deposit Insurance Corporation Limited (SDIC) insures deposits in a Deposit Insurance (DI) Scheme member bank or finance company up to SGD 75,000 (approximately USD 57,000) per account. As of December 31, 2023, cash balance of SGD 374,514 approximately RMB 2,013,835 (USD 284,332) was maintained at DI Scheme banks in Singapore, of which SGD 77,013 approximately RMB 414,112 (USD 58,468) was subject to credit risk. In the US, the insurance coverage of each bank is USD 250,000. As of December 31, 2023, cash balance of USD 110,000 (RMB 779,097) was deposited with a financial institution located in US, none of cash was subject to credit risk. The Company’s short term investments are mainly securities traded in US and Hong Kong markets held in a brokerage account in Hong Kong. The HK securities are protected by Investor Compensation Fund regulated by Securities and Futures Commission for up to HKD 500,000 per account. As of December 31, 2023, a total of RMB 39,793,621 (USD 5,113,875) short term investments deposited with a securities company located in Hong Kong was subject to credit risk. While management believes that these financial institutions are of high credit quality, it also continually monitors their credit worthiness. A majority of the Company’s expense transactions are denominated in RMB and a significant portion of the Company and its subsidiaries’ assets and liabilities are denominated in RMB. RMB is not freely convertible into foreign currencies. In the PRC, certain foreign exchange transactions are required by law to be transacted only by authorized financial institutions at exchange rates set by the PBOC. Remittances in currencies other than RMB by the Company in China must be processed through the PBOC or other China foreign exchange regulatory bodies which require certain supporting documentation in order to affect the remittance. To the extent that the Company needs to convert U.S. dollars into RMB for capital expenditures and working capital and other business purposes, appreciation of RMB against U.S. dollar would have an adverse effect on the RMB amount the Company would receive from the conversion. Conversely, if the Company decides to convert RMB into U.S. dollar for the purpose of making payments for dividends, strategic acquisition or investments or other business purposes, appreciation of U.S. dollar against RMB would have a negative effect on the U.S. dollar amount available to the Company. Customer concentration risk For the year ended December 31, 2021, one customer accounted for 13.6% of the Company’s total revenues. For the year ended December 2022, one customer accounted for 15.9% of the Company’s total revenues. For the year ended December 2023, one customer accounted for 9.2% of the Company’s total revenues. As of December 31, 2022, three customers accounted for 35.6%, 16.6%, and 15.4% of the Company’s accounts receivable. As of December 31, 2023, three customers accounted for 27.3%, 14.5%, and 10.9% of the Company’s accounts receivable. Vendor concentration risk For the year ended December 31, 2021, one vendor accounted for 13.7% of the Company’s total purchases. For the year ended December 31, 2022, one vendor accounted for 10.9% of the Company’s total purchases. For the year ended December 31, 2023, one vendor accounted for 11.2% of the Company’s total purchases. As of December 31, 2022, four vendors accounted for 29.7%, 19.8%, 13.9% and 12.6% of the Company’s accounts payable. As of December 31, 2023, four vendors accounted for 26.5%, 25.1%13.3% and 11.7% of the Company’s accounts payable. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | Note 18 — Leases The Company determines if a contract contains a lease at inception. US GAAP requires that the Company’s leases be evaluated and classified as operating or finance leases for financial reporting purposes. The classification evaluation begins at the commencement date and the lease term used in the evaluation includes the non-cancellable period for which the Company has the right to use the underlying asset, together with renewal option periods when the exercise of the renewal option is reasonably certain and failure to exercise such option which result in an economic penalty. The Company has entered into 8 non-cancellable operating lease agreements. The Company’s operating lease agreements do not contain any material residual value guarantees or material restrictive covenants. The leases generally do not contain options to extend at the time of expiration and the weighted average remaining lease terms is 1 year as of December 31, 2023. Lease expenses are allocated between the cost of revenue and selling, general, and administrative expenses. For the years ended December 31, 2021, December 31, 2022 and December 31, 2023, total lease expenses were RMB 4,672,111, RMB 4,225,631 and RMB 1,431,155 (USD 203,096). The maturity of the Company ’ Twelve Months Ending December 31, Operating Operating RMB USD 2023 447,365 * 63,163 2024 - - 2025 - - 2026 - - 2027 - - Total lease payments 447,365 63,163 Less: Interest (14,891 ) (2,102 ) Present value of lease liabilities 432,474 61,061 * Include the operating leases with a term less than one year. |
Shareholders_ Equity
Shareholders’ Equity | 12 Months Ended |
Dec. 31, 2023 | |
Shareholders’ Equity [Line Items] | |
Shareholders’ equity | Note 19 — Shareholders’ equity Ordinary Shares WiMi Cayman was established under the laws of Cayman Islands on August 16, 2018 with authorized share of 20,115,570 Class A Ordinary Shares of par value USD 0.0001 each, 466,967,730 Class B Ordinary Shares of par value USD 0.0001 each and 12,916,700 Series A Preferred Shares of par value USD 0.0001 each. Each Class A Ordinary Share shall be entitled to ten (10) votes on all matters subject to vote at general meetings of the Company, and each Class B Ordinary Share shall be entitled to one (1) vote on all matters subject to vote at general meetings of the Company. Each Class A Ordinary Share is convertible into one (1) Class B Ordinary Share at any time by the holder. Except for the voting right and conversion right, the Class A ordinary shares and Class B ordinary shares shall carry equal rights and rank pari passu with one another, including but not limited to the rights to dividends and other capital distributions. During the fourth quarter of 2018, WiMi Cayman issued 20,115,570 of Class A Ordinary Shares and 79,884,430 shares of Class B Ordinary shares, and the shares were accounted as if they were issued and outstanding at the beginning of the period presented pursuant to the reorganization as stated in Note 1 - Nature of business and organization. On March 31, 2020, the Company completed its IPO of 4,750,000 American Depository Shares (“ADS”) and the exercise of over-allotment option 169,140 ADSs at a public offering price of USD 5.50 per ADS, each ADS represents two of the Company’s Class B ordinary shares, par value USD 0.0001 per share, resulting in net proceeds to the Company of USD 24,201,881 (RMB 171,472,748) after deducting underwriting commission and other expenses of USD 2,853,389 RMB 18,618,078). On July 27, 2020, the Company completed its second public offering of 7,560,000 American Depository Shares (“ADS”) at a public offering price of USD 8.18 per ADS, each ADS represents two of the Company’s Class B ordinary shares, par value USD 0.0001 per share, resulting in net proceeds to the Company of USD 57,310,503 (RMB 401,339,721) after deducting underwriting commission and other expenses of USD 4,530,297 (RMB 29,559,735). On March 24, 2021, the Company completed its third public offering of 11,173,335 units at the public offering price of USD 7.50 per unit, with each unit consisting of one ADS and four-tenths of a warrant to purchase one ADS at an exercise price of USD 8.60 per ADS and exercisable at any time after the date of issuance and expire on the second anniversary of the date of issuance. Each ADS represents two of the Company’s Class B ordinary shares, par value USD 0.0001 per share. The offering resulted in net proceeds to the Company of approximately USD 77.8 million (RMB 507.9 million) after deducting underwriting commission and other expenses of approximately USD 6.0 million (RMB 38.9 million). Warrants As of December 31, 2022, the Company had 4,469,334 warrants outstanding to purchase 11,173,335 ADS with weighed average exercise price of USD 8.60 per ADS and remaining contractual lives of 0.25 years. During the year ended December 31, 2023, all of the Company’s outstanding warrants expired. No warrants were excised before expiration. The Company’s outstanding warrants were classified as equity since they qualified for exception from derivative accounting as they were considered to be indexed to the Company’s own stock and require net share settlement. The fair value of the warrants was RMB 108.5 million (USD 16.8 million), which was valued based on the Black-Scholes-Merton model and was recorded as additional paid-in capital from common stock based on the relative fair value of net proceeds received using the following assumptions: Annual dividend yield - Expected life (years) 2.0 Risk-free interest rate 0.92 % Expected volatility 180.03 % Following is a summary of the status of warrants outstanding and exercisable as of December 31, 2023: Warrants Weighted Warrants outstanding, as of December 31, 2020 4,469,334 $ 8.6 Issued - - Exercised - - Expired - - Warrants outstanding, as of December 31, 2021 4,469,334 $ 8.6 Issued - - Exercised - - Expired - - Warrants outstanding, as of December 31, 2022 4,469,334 $ 8.6 Issued - $ - Exercised - - Expired (4,469,334 ) $ 8.6 Warrants outstanding, as of December 31, 2023 - $ - Warrants exercisable, as of December 31, 2023 - $ - Stock based compensation On June 6, 2020, the Company’s shareholders approved the Company’s 2020 Equity Incentive Plan (the “2020 Plan”) to be administered by the Company’s board. The maximum aggregate number of Class B ordinary shares that may be issued under the 2020 Equity Incentive Plan is 17,500,000. The awards could be granted in the form of share options, restricted shares, restricted share units and other local awards. On June 6, 2020, the board of directors approved and granted 15,890,000 Class B ordinary shares valued at USD 1.73 per share on the grant date with an aggregated fair value of USD 27,489,700 under the 2020 Plan to employees, vested on October 1, 2020. On September 12, 2020, the board of directors approved and granted 148,240 Class B ordinary shares valued at USD 3.31 per share on the grant date with an aggregated fair value of USD 490,674 under the 2020 Plan to employees and consultants, of which 103,240 shares vested on October 15, 2020. The remaining 45,000 shares granted to consultants are vesting in three equal annual installments, with the first instalment vesting on October 15, 2021, the second vesting on October 15, 2022 and the third vesting on October 15, 2023. On January 26, 2021, the board of directors approved the grant of 720,000 Class B ordinary shares to management and employees. The shares were valued at USD 5.05 per share with grant date fair value of approximately RMB 25.1 million (approximately USD 3.6 million). 180,000 shares are to be vested on March 31, 2021 and remaining shares to be vested over a three year period from March 31, 2021. As of December 31, 2022, total of 153,300,513 Class B ordinary shares were granted and issued under the 2020 Plan. For the years ended December 31, 2020, 2021 and 2022, the Company recorded RMB 191,418,458, RMB 10,582,557 and RMB 6,447,471 compensation expense related to the stock grants, respectively. As of December 31, 2022, total of 236,250 Class B ordinary shares under the 2020 and 2021 Plan with grant date fair value of approximately RMB 6.7 million were to be amortized through March 31, 2024. On January 26, 2023, the Company’s Board approved the Company’s 2023 Equity Incentive Plan (the “2023 Plan”). The maximum aggregate number of Class B ordinary shares that may be issued under the 2023 Equity Incentive Plan is 23,000,000. The awards could be granted in the form of share options, restricted shares, restricted share units and other local awards. Restricted assets The Company’s ability to pay dividends is primarily dependent on the Company receiving distributions of funds from its subsidiary. Relevant PRC statutory laws and regulations permit payments of dividends by WiMi’s PRC entities only out of its retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. The results of operations reflected in the accompanying consolidated financial statements prepared in accordance with U.S. GAAP differ from those reflected in the statutory financial statements of WiMi PRC entities. WiMi PRC entities are required to set aside at least 10% of their after-tax profits each year, if any, to fund certain statutory reserve funds until such reserve funds reach 50% of its registered capital. In addition, WiMi PRC entities may allocate a portion of its after-tax profits based on PRC accounting standards to enterprise expansion fund and staff bonus and welfare fund at its discretion. WIMI PRC entities may allocate a portion of its after-tax profits based on PRC accounting standards to a discretionary surplus fund at its discretion. The statutory reserve funds and the discretionary funds are not distributable as cash dividends. Remittance of dividends by a wholly foreign-owned company out of China is subject to examination by the banks designated by State Administration of Foreign Exchange. As a result of the foregoing restrictions, WiMi PRC entities are restricted in their ability to transfer their assets to the Company. Foreign exchange and other regulation in the PRC may further restrict WiMi PRC entities from transferring funds to the Company in the form of dividends, loans and advances. As of December 31, 2023, amounts restricted are the paid-in-capital and statutory reserve of WIMI PRC entities, which amounted to RMB 1,633,700,950 (USD 230,660,758). Statutory reserve As of December 31, 2022 and 2023, WIMI PRC entities collectively attributed RMB 24,478,153 and RMB 25,647,972 (USD 3,621,214), of retained earnings for their statutory reserves, respectively. |
Warrant Liability
Warrant Liability | 12 Months Ended |
Dec. 31, 2023 | |
Warrant Liability [Abstract] | |
Warrant liability | Note 20 — Warrant liability The Company’s subsidiary, MicroAlgo Inc. (“MicroAlgo”), consummated a private placement of 270,500 Private Units at RMB 69.4 (USD 10.0) per unit simultaneously with the closing of its initial public offering in 2021 (See Note 1 - Nature of business and organization). Each Unit consists of one ordinary share of MicroAlgo Inc, par value $0.001 per share, one warrant (“Private Warrant”) entitling its holder to purchase one-half of one share at a price of $11.50 per share, and one right to receive one-tenth (1/10) of one share upon the consummation of the Company’s initial business combination. The Private Warrants will be exercisable on a cashless basis and will be non-redeemable so long as they are held by the initial purchasers or their permitted transferees. If the Private Warrants are held by someone other than the initial purchasers or their permitted transferees, the Private Warrants will be redeemable by MicroAlgo and exercisable by such holders on the same basis as the Public Warrants. The private warrants are accounted for as liabilities in accordance with ASC 815-40 and are presented within warrant liabilities on the balance sheets. The warrants were classified as Level 3 at the initial measurement date due to the use of unobservable inputs. MicroAlgo established the initial fair value for the private warrants at USD 380,000 on February 11, 2021, the date of the Company’s Initial Public Offering, using a Black-Scholes model. The key inputs into the Black-Scholes model were as follows at their following measurement dates: December 09, December 31, December 31, December 31, December 31, USD USD RMB USD RMB Input Share price 10.47 1.25 8.71 0.91 6.45 Risk-free interest rate 3.8 % 4.0 % 4.0 % 3.95 % 3.95 % Volatility 5.7 % 5.7 % 5.7 % 5.7 % 5.7 % Exercise price 11.50 11.50 80.09 11.50 81.45 Warrant life (yr) 4.97 4.92 4.92 3.92 3.92 As of December 09, 2022, the aggregate value of the private warrants was RMB 861,869 (USD 123,750). The change in fair value from January 1, 2022 to December 9, 2022 was approximately RMB 2.1 million (USD 0.3 million) was included in the historical retained earnings (accumulated deficits) of MicroAlgo. The fair value of the warrants on December 31, 2022 was nil nil |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies [Abstract] | |
Commitments and contingencies | Note 21 — Commitments and contingencies Contingencies From time to time, the Company is party to certain legal proceedings, as well as certain asserted and un-asserted claims. Amounts accrued, as well as the total amount of reasonably possible losses with respect to such matters, individually and in the aggregate, are not deemed to be material to the consolidated financial statements. Variable interest entity structure In the opinion of management, (i) the corporate structure of the Company is in compliance with existing PRC laws and regulations; (ii) the Contractual Arrangements are valid and binding, and do not result in any violation of PRC laws or regulations currently in effect; and (iii) the business operations of WiMi WFOE and the VIE are in compliance with existing PRC laws and regulations in all material respects. However, there are substantial uncertainties regarding the interpretation and application of current and future PRC laws and regulations. Accordingly, the Company cannot be assured that PRC regulatory authorities will not ultimately take a contrary view to the foregoing opinion of its management. If the current corporate structure of the Company or the Contractual Arrangements is found to be in violation of any existing or future PRC laws and regulations, the Company may be required to restructure its corporate structure and operations in the PRC to comply with changing and new PRC laws and regulations. In the opinion of management, the likelihood of loss in respect of the Company’s current corporate structure or the Contractual Arrangements is remote based on current facts and circumstances. |
Segments
Segments | 12 Months Ended |
Dec. 31, 2023 | |
Segments [Abstract] | |
Segments | Note 22 — Segments ASC 280, “Segment Reporting”, establishes standards for reporting information about operating segments on a basis consistent with the Company’s internal organizational structure as well as information about geographical areas, business segments and major customers in financial statements for detailing the Company’s business segments. The Company’s chief operating decision maker is the Chief Executive Officer, who reviews the financial information of the separate operating segments when making decisions about allocating resources and assessing the performance of the group. The Company has determined that it has three operating segments: (1) AR advertising services, (2) AR entertainment and (3) semiconductor related products and services. The following tables present summary information by segment for the years ended December 31, 2021, 2022 and 2023: AR AR Semiconductor Total RMB RMB RMB RMB Revenues 435,917,971 14,056,868 483,816,680 933,791,519 Cost of revenues 254,217,297 4,385,783 425,620,752 684,223,832 Gross profit 181,700,674 9,671,085 58,195,928 249,567,687 Depreciation and amortization 5,936,500 5,385,869 7,202,994 18,525,363 Total capital expenditures 23,782,060 17,120 1,366,302 25,165,482 AR AR Semiconductor Total RMB RMB RMB RMB Revenues 480,322,821 1,356,556 200,613,602 682,292,979 Cost of revenues 337,945,690 145,397 201,155,503 539,246,590 Gross profit 142,528,452 1,059,838 (541,901 ) 143,046,389 Depreciation and amortization 2,939,581 2,761 7,541,422 10,483,764 Total capital expenditures 1,105,905 - - 1,105,905 AR AR Semiconductor Total Total RMB RMB RMB RMB USD Revenues 571,842,123 732,505 12,791,309 585,365,937 82,647,287 Cost of revenues 397,499,842 1,449,637 12,714,387 411,663,866 58,122,449 Gross profit 174,342,281 (717,132 ) 76,922 173,702,071 24,524,838 Depreciation and amortization 3,767,215 737,384 412,362 4,916,961 694,221 Total capital expenditures 69,520,884 - - 69,520,884 9,865,736 Total assets as of: December 31, December 31, December 31, RMB RMB USD AR advertising services 1,071,603,048 551,391,408 77,850,455 AR entertainment 9,504,306 471,845,963 66,619,504 Semiconductor business 179,234,012 7,773,250 1,097,498 Total assets 1,260,341,366 1,031,010,621 145,567,457 The Company’s operations are primarily based in the PRC, where the Company derives a substantial portion of their revenues. Management also reviews consolidated financial results by business locations. Disaggregated information of revenues by geographic locations are as follows: For the year For the year For the year For the year RMB RMB RMB USD Mainland PRC revenues 593,803,869 483,328,411 542,958,194 76,659,777 Hong Kong revenues 118,590,946 61,882,662 32,297,915 4,560,113 International revenues 221,396,704 137,081,906 10,109,828 1,427,397 Total revenues 933,791,519 682,292,979 585,365,937 82,647,287 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent events | Note 23 — Subsequent events The Company evaluated all events and transactions that occurred after December 31, 2023 up through the date the Company issued these consolidated financial statements. On January 4, 2024, we entered into a Securities Purchase Agreement with our subsidiary MicroAlgo Inc.(“MicroAlgo”), pursuant to which the MicroAlgo sold to WiMi 8,000,000 ordinary shares for a total consideration of $4,000,000, representing a per share consideration of $0.50 (“Share Purchase”). On January 8, 2024, the closing of the Share Purchase occurred. In addition to making a cash injection, the purpose of the Share Purchase is to mitigate risk of dilution in anticipation of potential issuance and sale of additional securities by the MicroAlgo pursuant to the MicroAlgo’s registration statement on Form F-3 which became effective on December 27, 2023. On January 10, 2024, our subsidiary MicroAlgo Inc.(“MicroAlgo”) entered into securities purchase agreements with certain investors pursuant to which the MicroAlgo sold an aggregate of 5,800,000 ordinary shares for a total consideration of $2,900,000 ordinary shares at a per share consideration of $0.5 per share. On February 27, 2024, our subsidiary MicroAlgo Inc.(“MicroAlgo”) entered into Securities Purchase Agreements with certain investors (the “Investors”), relating to its issuance of an aggregate of $11,000,000 (the “Principal Amount”) Convertible Promissory Notes due after 360 days of issuance (the “Convertible Notes”) and the ordinary shares that are issuable upon conversion of the Convertible Note. On February 27, 2024, we entered into a Forward Purchase Agreement with MicroAlgo, pursuant to which we will purchase up to $11,000,000 of ordinary shares of the MicroAlgo at the Conversion Price in the event the Investors elect to receive conversion shares. The purpose of the potential sale and purchase under the Forward Purchase Agreement is to ensure that WIMI’s shareholding in the MicroAlgo remains above 51% in the event the purchasers of MicroAlgo’s notes pursuant to the February 27, 2024 convertible note purchase agreements elect to convert all or a portion of the outstanding balance to MicroAlgo’s ordinary shares. On March 22, 2024, MicroAlgo’s Share Consolidation plan became effective. Pursuant to the plan, every ten (10) shares of the MicroAlgo’s ordinary share issued, par value of US$0.001, was consolidated into one (1) share of ordinary share, par value $0.01, and the authorized share capital of the MicroAlgo was reduced from US$200,000 divided into 200,000,000 shares of a nominal or par value of US$0.0001 each to US$200,000 divided into 20,000,000 shares of a nominal or par value of US$0.01 each (the “Share Consolidation”). No fractional shares be issued in connection with the Share Consolidation and all fractional shares (after aggregating all fractional shares that would otherwise be received by a shareholder) resulting from the Share Consolidation shall instead be rounded up to the nearest whole number of shares.Immediately following the Share Consolidation, the authorized share capital of the MicroAlgo be increased from US$200,000 divided into 20,000,000 shares of a nominal or par value of US$0.01 each to US$2,000,000 divided into 200,000,000 shares of a nominal or par value of US$0.01 each, by the creation of an additional 180,000,000 shares of a nominal or par value of US$0.01 each to rank pari passu in all respects with the existing shares in the capital of the MicroAlgo.Following the Share Consolidation, the exercise price of the MicroAlgo’s warrants to purchase ordinary shares will be adjusted from $11.50 to $115.00 pursuant to the warrant agreement. |
Condensed Financial Information
Condensed Financial Information of the Parent Company | 12 Months Ended |
Dec. 31, 2023 | |
Condensed Financial Information of the Parent Company [Abstract] | |
Condensed financial information of the parent company | Note 24 — Condensed financial information of the parent company The Company performed a test on the restricted net assets of consolidated subsidiary in accordance with Securities and Exchange Commission Regulation S-X Rule 4-08 (3), “General Notes to Financial Statements” and concluded that it was applicable for the Company to disclose the financial statements for the parent company. The subsidiary did not pay any dividend to the Company for the periods presented. For the purpose of presenting parent only financial information, the Company records its investment in its subsidiary under the equity method of accounting. Such investment is presented on the separate condensed balance sheets of the Company as “Investment in subsidiary” and the income of the subsidiary is presented as “share of income of subsidiary”. Certain information and footnote disclosures generally included in financial statements prepared in accordance with U.S. GAAP have been condensed and omitted. The Company did not have significant capital and other commitments, long-term obligations, or guarantees as of December 31, 2022 and 2023. PARENT COMPANY BALANCE SHEETS December 31, December 31, December 31, RMB RMB USD ASSETS CURRENT ASSETS Cash in bank 17,660,758 3,578,051 505,182 Short term investment 27,761,919 378,843,373 53,488,553 Other receivables – intercompany 875,276,939 733,775,060 103,601,036 Total current assets 920,699,616 1,116,196,484 157,594,771 NON-CURRENT ASSETS Other receivable-related parties 49,794,054 - - Investment in subsidiaries 80,972,615 - - Total non-current assets 130,766,669 - - Total assets 1,051,466,285 1,116,196,484 157,594,771 LIABILITIES AND SHAREHOLDERS’ EQUITY Other payables - 68,209,284 9,630,407 Other payables - intercompany - 999,427 141,108 Total liabilities - 69,208,711 9,771,515 SHAREHOLDERS’ EQUITY Class A ordinary shares, USD 0.0001 par value, 20,115,570 shares authorized, 20,115,570 shares issued and outstanding of December 31, 2022 and 2023 13,095 13,095 1,849 Class B ordinary shares, USD 0.0001 par value, 466,967,730 shares authorized, 153,300,513 shares and 176,300,513 shares issued and outstanding of December 31, 2022 and 2023 102,127 117,681 16,615 Additional paid-in capital 1,552,410,496 1,608,052,978 227,039,544 Accumulated deficit (517,971,017 ) (646,273,236 ) (91,246,733 ) Statutory reserves 24,478,153 25,647,972 3,621,214 Accumulated other comprehensive loss (7,566,569 ) 59,429,283 8,390,767 Total shareholders’ equity 1,051,466,285 1,046,987,773 147,823,256 Total liabilities and shareholders’ equity 1,051,466,285 1,116,196,484 157,594,771 PARENT COMPANY STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS For the Years Ended December 31, 2021 2022 2023 2023 RMB RMB RMB USD OPERATING EXPENSES General and administrative (10,704,897 ) (7,372,851 ) (4,400,226 ) (621,264 ) Research and development (27,394,359 ) (242,803,298 ) - - Stock compensation (10,582,557 ) (6,447,471 ) (55,171,257 ) (7,789,580 ) Total operating expenses (48,681,813 ) (256,623,620 ) (59,571,483 ) (8,410,844 ) LOSS FROM OPERATIONS (48,681,813 ) (256,623,620 ) (59,571,483 ) (8,410,844 ) OTHER INCOME (EXPENSE) Investment income (loss) 2,491,671 (29,052,387 ) 8,645,424 1,220,640 Interest income 2,408 78,931 3,697,152 521,998 Finance expense (21,282 ) (22,526 ) (100,698 ) (14,217 ) Other income (expense), net 503,806 3,452,034 - - Equity income (loss) of subsidiaries (190,267,969 ) (75,563,525 ) (80,972,615 ) (11,432,450 ) Total other income (expense), net (187,291,366 ) (101,107,473 ) (68,730,737 ) (9,704,029 ) NET LOSS (235,973,179 ) (357,731,093 ) (128,302,220 ) (18,114,873 ) FOREIGN CURRENCY TRANSLATION ADJUSTMENT (19,536,206 ) 47,403,782 66,841,729 9,437,323 COMPREHENSIVE LOSS (255,509,385 ) (310,327,311 ) (61,460,491 ) (8,677,550 ) PARENT COMPANY STATEMENTS OF CASH FLOWS For the Years Ended December 31, 2021 2022 2023 2023 RMB RMB RMB USD CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) (235,973,179 ) (357,731,093 ) (128,302,220 ) (18,114,873 ) Adjustments to reconcile net income to cash used in operating activities: Stock compensation expense 10,582,557 6,447,471 56,827,855 8,023,473 (Gain) loss from short term investment (2,491,671 ) 29,052,387 (8,645,424 ) (1,220,640 ) Equity (income) loss of subsidiaries and VIEs 190,267,969 75,563,525 - - Change in operating assets and liabilities Other receivable - related parties - - 49,794,054 7,030,377 Other payables 68,209,284 9,630,407 Intercompany (199,216,770 ) (140,366,420 ) 142,501,305 20,119,630 Prepaid expenses 1,571,484 - - - Net cash used in operating activities (235,259,610 ) (387,034,130 ) 180,384,854 25,468,374 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of short term investments (98,023,653 ) (314,610,239 ) (342,436,029 ) (48,348,233 ) Redemptions of short term investments 99,084,663 294,130,260 - - Long term investment in subsidiaries 870,953 - 80,972,615 11,432,450 Net cash (used in) provided by investing activities 1,931,963 (20,479,979 ) (261,463,414 ) (36,915,783 ) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from public offerings, net 508,132,968 - - - Repayment to related party loans (2,274,154 ) - - - Sale of subsidiary’s noncontrolling interest 87,369,300 - - - Net cash provided by financing activities 593,228,114 - - - EFFECT OF EXCHANGE RATE ON CASH (12,519,279 ) 22,723,004 66,995,853 9,416,802 CHANGES IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH 347,381,188 (384,791,105 ) (14,082,707 ) (2,030,607 ) CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of year 55,070,675 402,451,863 17,660,758 2,535,789 CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of year 402,451,863 17,660,758 3,578,051 505,182 The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the parent company balance sheets that sum to the total of the same amounts shown in the parent company statements of cash flows: For the Years Ended December 31, 2021 2022 2023 2023 RMB RMB RMB USD Cash and cash equivalents 402,451,863 17,660,758 3,578,051 505,182 Restricted cash - - - - Total cash, cash equivalents and restricted cash shown in the parent company statements of cash flows 402,451,863 17,660,758 3,578,051 505,182 |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Summary of Significant Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The accompanying consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and applicable rules and regulations of the Securities and the SEC. |
Principles of consolidation | Principles of consolidation The consolidated financial statements include the financial statements of the Company and its subsidiaries, which include the wholly-foreign owned enterprise (“WFOE”) and VIEs over which the Company exercises control and, when applicable, entities for which the Company has a controlling financial interest or is the primary beneficiary. All transactions and balances among the Company and its subsidiaries have been eliminated upon consolidation. |
Use of estimates and assumptions | Use of estimates and assumptions The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the periods presented. Significant accounting estimates reflected in the Company’s consolidated financial statements include the useful lives of property and equipment and intangible assets, impairment of long-lived assets and goodwill, allowance for doubtful accounts, provision for contingent liabilities, revenue recognition, deferred taxes and uncertain tax position, purchase price allocations for business combination, the fair value of contingent consideration related to business acquisitions, and valuation of stock-based compensation. Actual results could differ from these estimates. |
Foreign currency translation and other comprehensive income (loss) | Foreign currency translation and other comprehensive income (loss) The Company uses Renminbi (“RMB”) as its reporting currency. The functional currency of the Company, its subsidiaries in Seychelles and Singapore and two subsidiaries, WiMi HK and VIDA, in Hong Kong is U.S. dollar, and its other subsidiaries which are incorporated in Hong Kong and PRC are Hong Kong Dollar and RMB, respectively, which are their respective local currencies based on the criteria of ASC 830, “Foreign Currency Matters”. In the consolidated financial statements, the financial information of the Company and other entities located outside of the PRC has been translated into RMB. Assets and liabilities are translated at the exchange rates on the balance sheet date, equity amounts are translated at historical exchange rates, and revenues, expenses, gains and losses are translated using the average rate for the period. Translation adjustments included in accumulated other comprehensive income (loss) amounted to RMB 7,373,437 and RMB 59,429,283 (USD 8,390,767) as of December 31, 2022 and 2023, respectively. The balance sheet amounts, with the exception of shareholders’ equity for WiMi HK and VIYI, on December 31, 2022 and 2023 were translated at RMB 1.00 to HKD 1.1194 and to HKD 1.1035, respectively. The average translation rates applied to statement of income accounts for the years ended December 31, 2021, 2022 and 2023 were RMB 1.00 to HKD 1.2048, HKD 1.1643 and to HKD1 .1109 |
Convenience translation | Convenience translation Translations of balances in the consolidated balance sheets, consolidated statements of income and consolidated statements of cash flows from RMB into USD as of and for the year ended December 31, 2023 are solely for the convenience of the reader and were calculated at the rate of USD 1.00 to USD 7.0827, representing the mid-point reference rate set by Peoples’ Bank of China on December 29, 2023, the last business day for the year ended December 31, 2023. No representation is made that the RMB amounts represent or could have been, or could be, converted, realized or settled into USD at that rate, or at any other rate. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents primarily consist of bank deposits with original maturities of three months or less, which are unrestricted as to withdrawal and use. Cash and cash equivalents also consist of funds earned from the Company’s operating revenues which were held at third party platform fund accounts which are unrestricted as to immediate use or withdraw. The Company maintains most of its bank accounts in the PRC, HK, Singapore and US. |
Restricted cash | Restricted cash Restricted cash consists of any cash balances that are legally restricted as to withdrawal and use. The Company’s restricted cash for the year ended December 31, 2020 was in connection with the Company’s initial public offering in March 2020 and subsequent public offering in July 2020, a total of USD 2,006,000 of the net proceeds received is deposited in escrow accounts and restricted to withdraw for a year since closing date. In connection with the Company’s March 2021 public offering with the same escrow agent, USD 1 million of the July 2020 offering escrow proceeds was extended for an additional escrow period terminating on the six-month anniversary of the closing date of the March 2021 offering. |
Accounts receivable, net | Accounts receivable, net Accounts receivable include trade accounts due from customers. Accounts are considered overdue after 90 days. Management reviews its receivables on a regular basis to determine if the bad debt allowance is adequate, and provides allowance when necessary. The allowance is based on management’s best estimates of specific losses on individual customer exposures, as well as the historical trends of collections. Account balances are charged off against the allowance after all means of collection have been exhausted and the likelihood of collection is not probable. As of December 31, 2022 and 2023, allowances for accounts receivable amounted to RMB 117,080,588 and RMB 27,735,262 (USD 3,915,917), respectively. |
Inventories | Inventories Inventories are comprised of finished goods and are stated at the lower of cost or net realizable value using the weighted average method. Management reviews inventories for obsolescence and cost in excess of net realizable value periodically when appropriate and records a reserve against the inventory when the carrying value exceeds net realizable value. For the year ended December 31, 2023, 2022 and 2021, impairment of inventory amounted to approximately nil nil |
Short-term investments | Short-term investments Short-term investments are investment in marketable equity securities that are measured and recorded at fair value based on quoted prices in active markets on reporting dates with changes in fair value, whether realized or unrealized, recorded through the income statement. |
Loans receivable | Loans receivable Loans receivable represents loans to a third party under the terms of the agreements signed in November and December 2021 at 3.85% interest per annum. The loans have terms of one-year and has no collateral. Management regularly reviews the aging of loans receivable and changes in payment trends and records allowances when management believes collection of amounts due are at risk. Loans receivable considered uncollectable are written off against allowances after exhaustive efforts at collection are made. Full amount of loans receivable was subsequently collected in May 2022. The balance of loans receivable is nil |
Prepaid services fees | Prepaid services fees Prepaid services fees are mainly payments made to vendors or services providers for future services. These amounts are refundable and bear no interest. Prepaid services fees also include money deposited with certain channel providers to ensure the contents of the advertisement do not violate the terms of the channel providers. The deposits usually have one year term and are refundable upon contract termination. Management reviews its prepaid services fees on a regular basis to determine if the allowance is adequate, and adjusts the allowance when necessary. As of December 31, 2022 and 2023, no allowance was deemed necessary. |
Other receivables and prepaid expenses | Other receivables and prepaid expenses Other receivables that are short term in nature include employee advances to pay certain of the Company’s expenses in the normal course of business and certain short-term deposits. Prepaid expenses included utilities or system services and prepaid VAT. An allowance for doubtful accounts may be established and recorded based on management’s assessment of the likelihood of collection. Management reviews these items on a regular basis to determine if the allowance for doubtful accounts is adequate, and adjusts the allowance when necessary. Delinquent account balances are written-off against the allowance for doubtful accounts after management has determined that the likelihood of collection is not probable. As of December 31, 2022 and 2023, allowance for other receivable amounted to RMB 1,180 and RMB 3,229,486 (USD 455,968), respectively. |
Property and equipment, net | Property and equipment, net Property and equipment are stated at cost less accumulated depreciation and impairment if applicable. Depreciation is computed using the straight-line method over the estimated useful lives of the assets with 5% residual value. The estimated useful lives are as follows: Useful Life Office equipment 3 years Office furniture and fixtures 3 – 5 years Vehicles 3 – 5 years Building 20 years Leasehold improvements lesser of lease term or expected useful life The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the consolidated statements of income and comprehensive income. Expenditures for maintenance and repairs are charged to earnings as incurred, while additions, renewals and betterments, which are expected to extend the useful life of assets, are capitalized. The Company also re-evaluates the periods of depreciation to determine whether subsequent events and circumstances warrant revised estimates of useful lives. |
Cost method investments | Cost method investments The Company accounts for investments with less than 20% of the voting shares and does not have the ability to exercise significant influence over operating and financial policies of the investee using the cost method. The Company records cost method investments at the historical cost in its consolidated financial statements and subsequently records any dividends received from the net accumulated earrings of the investee as income. Dividends received in excess of earnings are considered a return of investment and are recorded as reduction in the cost of the investments. Cost method investments are evaluated for impairment when facts or circumstances indicate that the fair value of the long-term investments is less than its carrying value. An impairment is recognized when a decline in fair value is determined to be other-than-temporary. The Company reviews several factors to determine whether a loss is other-than-temporary. These factors include, but are not limited to, the: (i) nature of the investment; (ii) cause and duration of the impairment; (iii) extent to which fair value is less than cost; (iv) financial condition and near term prospects of the investments; and (v) ability to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value. For the year ended December 31, 2023, the Company recognized the impairment loss of RMB 144,863,324 (USD 20,453,122) for the cost method investment, mainly due to the weak financial conditions recognized of Beijing WIMI’s and Shenzhen Weiyixin’s investments in near periods. |
Prepayments | Prepayments Prepayments are payments made to housing developers for commercial and residential properties down payments. These amounts are refundable and bear an interest ranging from 0% to 3.85% per annum if the housing developers were not able to provide the qualified houses as stated in the contracts. Management reviews its prepayments on a regular basis to determine if the allowance is adequate, and adjusts the allowance when necessary. As of December 31, 2023, no allowance was deemed necessary. The properties are expected to be completed in 2024. |
Intangible assets, net | Intangible assets, net The Company’s intangible assets with definite useful lives primarily consist of copyrights, software, customer relationship, non-compete agreements, technology know-hows. Identifiable intangible assets resulting from the acquisitions of subsidiaries accounted for using the purchase method of accounting are estimated by management based on the fair value of assets received. The Company amortizes its intangible assets with definite useful lives over their estimated useful lives and reviews these assets for impairment. The Company typically amortizes its intangible assets with definite useful lives on a straight-line basis over the shorter of the contractual terms or the estimated useful lives of five to ten years. |
Goodwill | Goodwill Goodwill represents the excess of the consideration paid of an acquisition over the fair value of the net identifiable assets of the acquired subsidiaries at the date of acquisition. Goodwill is not amortized and is tested for impairment at least annually, more often when circumstances indicate impairment may have occurred. Goodwill is carried at cost less accumulated impairment losses. If impairment exists, goodwill is immediately written off to its fair value and the loss is recognized in the consolidated statements of operations and comprehensive loss. Impairment losses on goodwill are not reversed. The Company reviews the carrying value of intangible assets not subject to amortization, including goodwill, to determine whether impairment may exist annually or more frequently if events and circumstances indicate that it is more likely than not that an impairment has occurred. The Company has the option to assess qualitative factors to determine whether it is necessary to perform further impairment testing in accordance with ASC 350-20, as amended by ASU 2017-04. If the Company believes, as a result of the qualitative assessment, that it is more likely than not that the fair value of the reporting unit is less than its carrying amount, then the impairment test described below is required. The Company compares the fair values of each reporting unit to its carrying amount, including goodwill. If the fair value of each reporting unit exceeds its carrying amount, goodwill is not considered to be impaired. If the carrying amount of a reporting unit exceeds its fair value, impairment is recognized for the difference, limited to the amount of goodwill recognized for the reporting unit. Estimating fair value is performed by utilizing various valuation techniques, with the primary technique being an asset-based approach. |
Cost method investments | Investment in unconsolidated entities The Company accounts for investments with more than 20% and less than 50% of the voting shares and have the ability to exercise significant influence over operating and financial policies of the investee using the equity method. The Company records an equity method investment on the balance sheet as a single amount. The Company records equity method investments at the historical cost in its consolidated financial statements and subsequently increases/decreases the investment account by an amount proportionate to the investor’s shares in the profit/loss from the investee. Dividends received are recorded as reduction from the account. |
Deconsolidation | Deconsolidation Upon the loss of control, the Company derecognizes the assets and liabilities of the subsidiary, any non-controlling interests and the other components of equity related to the subsidiary. Any surplus or deficit arising on the loss of control is recognized in profit or loss. If the Company retains any interest in the previous subsidiary, then such interest is measured at fair value at the date that control is lost. Subsequently it is accounted for as an equity-accounted investee or as cost method investment depending on the level of influence retained. |
Impairment for long-lived assets | Impairment for long-lived assets Long-lived assets, including property and equipment and intangible assets with finite lives are reviewed for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying value of an asset may not be recoverable. The Company assesses the recoverability of the assets based on the undiscounted future cash flows the assets are expected to generate and recognize an impairment loss when estimated undiscounted future cash flows expected to result from the use of the asset plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. If an impairment is identified, the Company would reduce the carrying amount of the asset to its estimated fair value based on a discounted cash flow approach or, when available and appropriate, to comparable market values. For the years ended December 31, 2021, 2022 and 2023, RMB 4,308,822, RMB 13,713,235 and RMB 5,499,260 (USD 776,436) impairment of long-lived assets was recognized. |
Business combination | Business combination The purchase price of an acquired company is allocated between tangible and intangible assets acquired and liabilities assumed from the acquired business based on their estimated fair values, with the residual of the purchase price recorded as goodwill. Transaction costs associated with business combinations are expensed as incurred, and are included in general and administrative expenses in the Company’s consolidated statements of operations. The results of operations of the acquired business are included in the Company’s operating results from the date of acquisition. |
Fair value measurement | Fair value measurement The accounting standard regarding fair value of financial instruments and related fair value measurements defines financial instruments and requires disclosure of the fair value of financial instruments held by the Company. The accounting standards define fair value, establish a three-level valuation hierarchy for disclosures of fair value measurement and enhance disclosure requirements for fair value measures. The three levels are defined as follow: ● Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. ● Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. ● Level 3 inputs to the valuation methodology are unobservable and significant to the fair value. Financial instruments included in current assets and current liabilities are reported in the consolidated balance sheets at face value or cost, which approximate fair value because of the short period of time between the origination of such instruments and their expected realization and their current market rates of interest. |
Revenue recognition | Revenue recognition The Company adopted Accounting Standards Update (“ASU”) 2014-09 Revenue from Contracts with Customers (ASC Topic 606) The ASU requires the use of a new five-step model to recognize revenue from customer contracts. The five-step model requires that the Company (i) identifies the contract with the customer, (ii) identifies the performance obligations in the contract, (iii) determines the transaction price, including variable consideration to the extent that it is probable that a significant future reversal will not occur, (iv) allocates the transaction price to the respective performance obligations in the contract, and (v) recognizes revenue when (or as) the Company satisfies the performance obligation. The application of the five-step model to the revenue streams compared to the prior guidance did not result in significant changes in the way the Company records its revenue. Upon adoption, the Company evaluated its revenue recognition policy for all revenue streams within the scope of the ASU under previous standards and using the five-step model under the new guidance and confirmed that there were no differences in the pattern of revenue recognition. (i) AR Advertising Services — AR advertising display services AR advertisements are the use holographic materials integrated into advertisement on the online media platforms or offline display. The Company’s performance obligation is to identify advertising spaces, embed holographic AR images or videos into films, shows and short form videos that are hosted by leading online streaming platforms in China. Revenue is recognized at a point in time when the related services have been delivered based on the specific terms of the contract, which are commonly based on specific action (i.e., cost per impression (“CPM”) or cost per action (“CPA”) for online display and service period for offline display contracts. The Company enters into advertising contracts with advertisers where the amounts charged per specific action are fixed and determinable, the specific terms of the contracts were agreed on by the Company, the advertisers and channel providers, and collectability is probable. Revenue is recognized on a CPM basis as impressions or clicks are delivered while revenue on a CPA basis is recognized once agreed actions are performed or service period is completed. The Company considers itself as provider of the services as it has control of the specified services and products at any time before it is transferred to the customers which is evidenced by (1) the Company is primarily responsible to its customers for products and services offered where the products were designed in house and the Company has customer services team to directly service the customers; and (2) having latitude in establish pricing. Therefore, the Company acts as the principal of these arrangements and reports revenue earned and costs incurred related to these transactions on a gross basis. — Performance-based advertising service The Company provides central processing algorithm performance-based advertising services for its customers, which enable the customers to get the optimal business opportunities. The Company’s performance obligation is to help customers to accurately match consumers and traffic users, and thereby increasing the conversion rate of product sale using its proprietary data optimization algorithms. The Company’s revenue is recognized at a point when an ender user completes a transaction at a rate specified in contract. Related service fees are generally billed monthly, based on a per transaction basis. The Company considers itself as provider of the services as it has control of the specified services and products at any time before it is transferred to the customers which is evidenced by (1) it is primarily responsible to its customers for the services offered where the algorithms and data optimization were designed and performed in house and it has customer services team to directly serve the customers; and (2) having latitude in establish pricing. Therefore, VIYI acts as the principal of these arrangements and reports revenue earned and costs incurred related to these transactions on a gross basis. In addition, through the Company’s data algorithm optimization, it is able to identify certain end user needs and it facilitates certain value added services to the end users. The Company engages third party services provider to perform the services. The Company concludes that it does not control the services as the third party service provider is responsible for providing the service and its responsibility is merely to facilitate the provision of these value added service to the end users and charges a fee. As such the Company recorded revenue from the value added services on a net basis when the services is provided by third party service provider. (ii) AR Entertainment The Company’s AR entertainment includes mainly three subcategories: SDK payment channel services, software development and mobile games operations and technology developments. a. SDK Payment Channel Services The Company’s SDK payment channel services enable game players/app users to make online payments through Alipay, Unipay or Wechat pay etc. to various online content providers. When game players/app users make payments in the game or app, the SDK payment channel will automatically populate payment services for the users to fulfill payments. The Company charges a fee for the payment channel services, the pricing of which is based on the predetermined rates specified in the contract. The Company’s performance obligation is to facilitate payment services and recognizes SDK payment channel service revenue at a point in time when a user completes a payment transaction via a payment channel and is entitled to payment. Related fees are generally billed monthly, based on a per transaction basis. The Company assessed that its promise to customer is to facilitate the service of third party instead of providing the payment services itself as the Company does not have control of the services provided as the Company do not service the users directly and does not have the latitude to establish the price, and therefore, revenue from SDK payment service is recorded on a net basis. b. MR software development services The Company’s MR software development service contracts are primarily on a fixed price basis, which require the Company to perform services for MR application design, content development and integrating based on customers’ specific needs. These services also require significant production and customization. The required customization work period is generally less than one year. The Company currently does not have any modification of contract and the contracts currently do not have any variable consideration. The software customization, application design, upgrades and integration are considered as one performance obligation. The promises to transfer software, customization and upgrades are not separately identifiable as the customers do not obtain benefits from these services on its own. The Company’s MR software development service contracts are generally recognized over time during the contract period as the Company has no alternative use of the customized software and application without incurring significant additional costs. Revenue is recognized based on the Company’s measurement of progress towards completion based on input or output methods. Input methods are used only when there is a direct correlation between hours incurred and the end product delivered and output method is used when the Company could appropriately measure the customization progress towards completion. Assumptions, risks and uncertainties inherent in the estimates used to measure progress could affect the amount of revenues, receivables and deferred revenues at each reporting period. The Company has a long history of developing various MR software resulting in its ability to reasonably estimate the progress toward completion on each fixed price customized contracts. c. Mobile Games Services The Company generates revenue from jointly operated mobile game publishing services and the licensed out games. In accordance with ASC 606, Revenue Recognition: Principal Agent Considerations, the Company evaluates agreements with the game developers, distribution channels and payment channels in order to determine whether or not the Company acts as the principal or as an agent in the arrangement with each party respectively. The determination of whether to record the revenues gross or net is based on whether the Company’s promise to its customers is to provide the products or services or to facilitate a sale by a third party. The nature of the promise depends on whether the Company controls the products or services prior to transferring it. Control is evidenced by if the Company is primarily responsible for fulling the provision of services and has discretion in establishing the selling price. When the Company controls the products or services, its promise is to provide and deliver the products and revenue is presented gross. When the Company does not control the products, the promise is to facilitate the sale and revenue is presented net. — Jointly operated mobile game publishing services The Company is offering publishing services for mobile games developed by third party game developers. The Company acted as a distribution channel that it will publish the games on their own app or a third party owned app or website, named game portals. Through these game portals, game players can download the mobile games to their mobile devices and purchase coins, the virtual currency, for in game premium features to enhance their game playing experience. The Company contracts with third party payment platforms for collection services offered to game players who have purchased coins. The third party game developers, third party payment platforms and the co publishers are entitled to profit sharing based on a prescribed percentage of the gross amount charged to the game players. The Company’s obligation in the publishing services is completed at a point in time when the game players made a payment to purchase coins. With respect to the publishing services arrangements between the Company and the game developer, the Company considered that the Company does not control the services as evidenced by (i) developers are responsible for providing the game product desired by the game players; (ii) the hosting and maintenance of game servers for running the online mobile games is the responsibility of the third party platforms; (iii) the developers or third party platforms have the right to change the pricing of in game virtual items. The Company’s responsibilities are publishing, providing payment solution and market promotion service, and thus the Company views the game developers to be its customers and considers itself as the facilitator of the game developers in the arrangements with game players. Accordingly, the Company records the game publishing service revenue from these games, net of amounts paid to the game developers. — Licensed out mobile games The Company also licenses third parties to operate its mobile games developed internally through mobile portal and receives revenue from the third party licensee operators on a monthly basis. The Company’s performance obligation is to provide mobile games to game operators which enable players of the mobile games to make in game purchases and the Company recognized revenue at a point in time when game players completed the purchases. The Company records revenues on a net basis, as the Company does not have the control of the services provided as it does not have the primary responsibility for fulfillment nor does not have the right to change the pricing of the game services. d. Technology developments The Company’s technology development contract requires the Company to design applications based on customers’ specific needs. The duration of the design period is short, usually approximately 3 months or less. Revenues are generally recognized at a point in time where the Company has transferred control of the asset upon completion of the design and after the acceptance by its customer with no more future obligation of the design project. (iii) Semiconductor business The Company’s semiconductor business includes two subcategories: sale of products and software development. a. Sale of products Starting in July 2020, the Company also engage in sales of semiconductor products and other electronic accessories. The Company typically enters into written contracts with its customer where the rights of the parties, including payment terms, are identified and sales prices to the customers are fixed with no separate sales rebate, discount, or other incentive and no right of return exists on sales of inventory. The Company’s performance obligation is to deliver products according to contract specifications. The Company recognizes gross product revenue at a time when the control of products or services are transferred to customers. To distinguish a promise to provide products from a promise to facilitate the sale from a third party, the Company considers the guidance of control in ASC 606-10-55-37A and the indicators in 606-10-55-39. The Company considers this guidance in conjunction with the terms in the Company’s arrangements with both suppliers and customers. In general, the Company controls the products as it has the obligation to (i) fulfill the products delivery and (ii) bear any inventory risk as legal owners. In addition, when establishing the selling prices for delivery of the resale products, the Company has control to set its selling price to ensure it would generate profit for the products delivery arrangements. The Company believes that all these factors indicate that the Company is acting as a principal in this transaction. As a result, revenue from the sales of products is presented on a gross basis. b. Revenue from software development The Company also designs software for central processing units based on customers’ specific needs. The contract is typically fixed priced and does not provide any post contract customer support or upgrades. The Company’s performance obligation is to design, develop, test and install the related software for customers, all of which are considered one performance obligation as the customers do not obtain benefit for each separate service. The duration of the development period is short, usually less than one year. The Company’s revenue from software development contracts is generally recognized over time during the development period the Company has no alternative use of the customized software and application without incurring significant additional costs. Revenue is recognized based on the Company’s measurement of progress towards completion based on output methods when the Company could appropriately measure the customization progress towards completion by reaching certain milestones specified in contracts. Assumptions, risks and uncertainties inherent in the estimates used to measure progress could affect the amount of revenues, receivables and deferred revenues at each reporting period. Contract balances: The Company records receivable related to revenue when it has an unconditional right to invoice and receive payment. Payments received from customers before all of the relevant criteria for revenue recognition met are recorded as deferred revenue. Contract costs: Contract costs represent costs incurred in advance of revenue recognition arising from direct costs in respect of the revenue contracts according to the customer’s requirements prior to the delivery of services, and such deferred costs will be recognized upon the recognition of the related revenue. Estimated contract costs are based on the budgeted service hours, which are updated based on the progress toward completion on a monthly basis. Pursuant to the contract terms, the Company has enforceable right on payments for the work performed. Provisions for estimated losses, if any, on uncompleted contracts are recorded in the period in which such losses become probable based on the current contract estimates. The Company’s disaggregate revenue streams are summarized below: December 31, December 31, December 31, December 31, RMB RMB RMB USD Online AR advertising services 436,475,875 480,322,821 571,842,123 80,737,872 Mobile games 13,498,964 1,356,556 732,505 103,422 Sales of semiconductor products 448,958,274 200,613,602 12,791,309 1,805,993 Software development 34,858,406 - - - Total revenues 933,791,519 682,292,979 585,365,937 82,647,287 The Company’s revenue by timing of transfer of goods or services are summarized below: December 31, December 31, December 31, December 31, RMB RMB RMB USD Goods and services transferred at a point in time 898,933,113 682,292,979 585,365,937 82,647,287 Services transferred over time 34,858,406 - - - Total revenues 933,791,519 682,292,979 585,365,937 82,647,287 The Company’s revenue by geographic locations are summarized below: December 31, December 31, December 31, December 31, RMB RMB RMB USD Mainland PRC revenues 593,803,869 483,328,411 542,958,194 76,659,777 Hong Kong revenues 118,590,946 61,882,662 32,297,915 4,560,113 International revenues 221,396,704 137,081,906 10,109,828 1,427,397 Total revenues 933,791,519 682,292,979 585,365,937 82,647,287 |
Cost of revenues | Cost of revenues For AR advertising services, the cost of revenue comprised of costs paid to channel distributors based on the sales agreements. For AR entertainment segment, the cost of revenue consists of the shared costs with content providers based on the profit sharing arrangements, third party consulting services expenses and compensation expenses for the Company’s professionals. For computer chip and intelligent chip business segment, the cost of revenue consists primarily of the costs of products sold and third party software development costs. |
Advertising costs | Advertising costs Advertising costs amounted to RMB 1,800, RMB 47,170 and RMB 126,751 (USD 17,896) for the years ended December 31, 2021, 2022 and 2023, respectively. Advertising costs are expensed as incurred and included in selling expenses. |
Research and development | Research and development Research and development expenses include salaries and other compensation-related expenses to the Company’s research and product development personnel, outsourced subcontractors, as well as office rental, depreciation and related expenses for the Company’s research and product development team. |
Value added taxes (“VAT”) and goods and services taxes (“GST”) | Value added taxes (“VAT”) and goods and services taxes (“GST”) Revenue represents the invoiced value of service, net of VAT or GST. The VAT and GST are based on gross sales price. VAT rate is 6% on services and 13% on goods in China, and GST rate is generally 7% in Singapore. Entities that are VAT/GST general taxpayers are allowed to offset qualified input VAT/GST paid to suppliers against their output VAT/GST liabilities. Net VAT/GST balance between input VAT/GST and output VAT/GST is recorded in tax payable. All of the VAT/GST returns filed by the Company’s subsidiaries in China and Singapore, have been and remain subject to examination by the tax authorities for five years from the date of filing. |
Income taxes | Income taxes The Company accounts for current income taxes in accordance with the laws of the relevant tax authorities. The charge for taxation is based on the results for the fiscal year as adjusted for items, which are non-assessable or disallowed. It is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred taxes is accounted for using the asset and liability method in respect of temporary differences arising from differences between the carrying amount of assets and liabilities in the consolidated financial statements and the corresponding tax basis used in the computation of assessable tax profit. In principle, deferred tax liabilities are recognized for all taxable temporary differences. Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which deductible temporary differences can be utilized. Deferred tax is calculated using tax rates that are expected to apply to the period when the asset is realized or the liability is settled. Deferred tax is charged or credited in the income statement, except when it is related to items credited or charged directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current income taxes are provided for in accordance with the laws of the relevant taxing authorities. An uncertain tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. No penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the period incurred. |
Leases | Leases The Company adopted FASB ASU 2016-02, “Leases” (Topic 842) for the year ended December 31, 2020, and elected the practical expedients that does not require us to reassess: (1) whether any expired or existing contracts are, or contain, leases, (2) lease classification for any expired or existing leases and (3) initial direct costs for any expired or existing leases. For lease terms of twelve months or fewer, a lessee is permitted to make an accounting policy election not to recognize lease assets and liabilities. The Company also adopted the practical expedient that allows lessees to treat the lease and non-lease components of a lease as a single lease component. Operating lease ROU assets and lease liabilities are recognized at the adoption date or the commencement date, whichever is earlier, based on the present value of lease payments over the lease term. Since the implicit rate for the Company’s leases is not readily determinable, the Company use its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The incremental borrowing rate is the rate of interest that the Company would have to pay to borrow, on a collateralized basis, an amount equal to the lease payments, in a similar economic environment and over a similar term. Lease terms used to calculate the present value of lease payments generally do not include any options to extend, renew, or terminate the lease, as the Company does not have reasonable certainty at lease inception that these options will be exercised. The Company generally considers the economic life of its operating lease ROU assets to be comparable to the useful life of similar owned assets. The Company has elected the short-term lease exception, therefore operating lease ROU assets and liabilities do not include leases with a lease term of twelve months or less. Its leases generally do not provide a residual guarantee. The operating lease ROU asset also excludes lease incentives. Lease expense is recognized on a straight-line basis over the lease term. The Company reviews the impairment of its ROU assets consistent with the approach applied for its other long-lived assets. The Company reviews the recoverability of its long-lived assets when events or changes in circumstances occur that indicate that the carrying value of the asset may not be recoverable. The assessment of possible impairment is based on its ability to recover the carrying value of the asset from the expected undiscounted future pre-tax cash flows of the related operations. The Company has elected to include the carrying amount of operating lease liabilities in any tested asset group and include the associated operating lease payments in the undiscounted future pre-tax cash flows. |
Stock-based compensation | Stock-based compensation The Company records stock-based compensation expense for employees and non-employees at fair value on the grant date. Share-based compensation is recognized net of forfeitures, as amortized expense on a straight-line basis over the requisite service period, which is the vesting period. The Company accounts for share-based compensation expenses using an estimated forfeiture rate at the time of grant and revising, if necessary, in subsequent periods if actual forfeitures differ from initial estimates. Share-based compensation expenses are recorded net of estimated forfeitures such that expenses are recorded only for those share-based awards that are expected to vest. |
Warrants | Warrants The Company accounts for warrants as either equity-classified or liability-classified instruments based on an assessment of the warrant’s specific terms and applicable authoritative guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 480, Distinguishing Liabilities from Equity (“ASC 480”) and ASC 815, Derivatives and Hedging (“ASC 815”). The assessment considers whether the warrants are freestanding financial instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, and whether the warrants meet all of the requirements for equity classification under ASC 815, including whether the warrants are indexed to the Company’s own ordinary shares and whether the warrant holders could potentially require “net cash settlement” in a circumstance outside of the Company’s control, among other conditions for equity classification. This assessment, which requires the use of professional judgment, is conducted at the time of warrant issuance and as of each subsequent quarterly period end date while the warrants are outstanding. For issued or modified warrants that meet all of the criteria for equity classification, the warrants are required to be recorded as a component of additional paid-in capital at the time of issuance. For issued or modified warrants that do not meet all the criteria for equity classification, the warrants are required to be recorded at their initial fair value on the date of issuance, and each balance sheet date thereafter. Changes in the estimated fair value of the warrants are recognized as a non-cash gain or loss on the statements of operations. The Company evaluated its warrants and determined the warrants are indexed to the Company’s own stock as the warrants do not contain any exercise contingencies, the warrants’ settlement amount equals the difference between the fair value of the Company’s common stock price and the warrant contract strike price and the only variables which could affect the settlement amount would be inputs to the fair value for a fixed-for-fixed option on equity shares. The Company also analyzed ASC 815-40-25 to determine whether the warrant contracts should be classified in stockholders’ equity in the Company’s statements of financial condition and concluded that the warrant contracts meet all of the criteria for classification as equity as the Company is not required to net settle. Based on this analysis, the Company determined the warrant contracts should be classified as equity. |
Employee benefit | Employee benefit The full-time employees of the Company are entitled to staff welfare benefits including medical care, housing fund, pension benefits, unemployment insurance and other welfare, which are government mandated defined contribution plans. The Company is required to accrue for these benefits based on certain percentages of the employees’ respective salaries, subject to certain ceilings, in accordance with the relevant PRC regulations, and make cash contributions to the state-sponsored plans out of the amounts accrued. Total expenses for the plans were RMB 2,683,929, RMB 2,939,923 and RMB 2,046,371 (USD 288,925) for the years ended December 31, 2021, 2022 and 2023, respectively. |
Noncontrolling interests | Noncontrolling interests Noncontrolling interests consists of an aggregate of 47.0% of the equity interest of VIDA, 34.1% of the equity interest of MicroAlgo and 45.0% of the equity interest of Viru as of December 31, 2022. Noncontrolling interests consists of an aggregate of 47.0% of the equity interest of VIDA, 44.0% of the equity interest of MicroAlgo and 45.0% of the equity interest of Viru as of December 31, 2023. Noncontrolling interests consist of the following: December 31, December 31, December 31, RMB RMB USD VIDA (65,276,176 ) (39,704,812 ) (5,605,887 ) Viru 4,293,087 (141,931 ) (20,039 ) VIYI/MicroAlgo 159,054,091 48,415,473 6,835,737 Noncontrolling interests subscriptions receivable (172,528 ) - - Total noncontrolling interests 97,898,474 8,568,730 1,209,811 |
Earnings/(loss) per share | Earnings/(loss) per share The Company computes earnings/loss per share (“EPS”) in accordance with ASC 260, “Earnings per Share”. ASC 260 requires companies to present basic and diluted EPS. Basic EPS is measured as net income/loss divided by the weighted average ordinary share outstanding for the period. Diluted EPS presents the dilutive effect on a per share basis of the potential ordinary shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential ordinary shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. During the years ended December 31, 2021, 2022 and 2023, there was no dilutive effect of potential shares due to the Company’s net loss. |
Statutory reserves | Statutory reserves Pursuant to the laws applicable to the PRC, PRC entities must make appropriations from after-tax profit to the non-distributable “statutory surplus reserve fund”. Subject to certain cumulative limits, the “statutory surplus reserve fund” requires annual appropriations of 10% of after-tax profit until the aggregated appropriations reach 50% of the registered capital (as determined under accounting principles generally accepted in the PRC (“PRC GAAP”) at each year-end). For foreign invested enterprises and joint ventures in the PRC, annual appropriations should be made to the “reserve fund”. For foreign invested enterprises, the annual appropriation for the “reserve fund” cannot be less than 10% of after-tax profits until the aggregated appropriations reach 50% of the registered capital (as determined under PRC GAAP at each year-end). If the Company has accumulated loss from prior periods, the Company is able to use the current period net income after tax to offset against the accumulate loss. |
Segment reporting | Segment reporting ASC 280, “Segment Reporting”, establishes standards for reporting information about operating segments on a basis consistent with the Company’s internal organizational structure as well as information about geographical areas, business segments and major customers in financial statements for detailing the Company’s business segments. |
Recently issued accounting pronouncements | Recently issued accounting pronouncements In May 2019, the FASB issued ASU 2019-05, which is an update to ASU Update No. 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which introduced the expected credit losses methodology for the measurement of credit losses on financial assets measured at amortized cost basis, replacing the previous incurred loss methodology. The amendments in Update 2016-13 added Topic 326, Financial Instruments — Credit Losses, and made several consequential amendments to the Codification. Update 2016-13 also modified the accounting for available-for-sale debt securities, which must be individually assessed for credit losses when fair value is less than the amortized cost basis, in accordance with Subtopic 326-30, Financial Instruments — Credit Losses — Available-for-Sale Debt Securities. The amendments in this Update address those stakeholders’ concerns by providing an option to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost basis. For those entities, the targeted transition relief will increase comparability of financial statement information by providing an option to align measurement methodologies for similar financial assets. Furthermore, the targeted transition relief also may reduce the costs for some entities to comply with the amendments in Update 2016-13 while still providing financial statement users with decision-useful information. In November 2019, the FASB issued ASU No. 2019-10, which to update the effective date of ASU No. 2016-02 for private companies, not-for-profit organizations and certain smaller reporting companies applying for credit losses, leases, and hedging standard. The new effective date for these preparers is for fiscal years beginning after December 15, 2022. The Company adopted this ASU on January 1, 2023 and the adoption did not have a material effect on the Company’s consolidated financial statements. In October 2021, the FASB issued ASU 2021-08, “Business Combinations”. The amendments in this Update address how to determine whether a contract liability is recognized by the acquirer in a business combination and resolve the inconsistency of measuring revenue contracts with customers acquired in a business combination by providing specific guidance on how to recognize and measure acquired contract assets and contract liabilities from revenue contracts in a business combination. The amendments in this Update apply to all entities that enter into a business combination within the scope of Subtopic 805-10, Business Combination-Overalls. For public business entities, ASU 2021-08 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early application is permitted. The amendments in this Update should be applied prospectively to business combinations occurring on or after the effective date of the amendments. The Company adopted this ASU on January 1, 2023 and the adoption did not have a material impact on its consolidated financial statements. Except as mentioned above, the Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the Company’s consolidated balance sheets, statements of income and comprehensive income and statements of cash flows. |
Nature of Business and Organi_2
Nature of Business and Organization (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Nature of business and organization [Abstract] | |
Schedule of Consolidated Financial Statements Reflect the Activities of Wimi Cayman and Each of Entities | The accompanying consolidated financial statements reflect the activities of WiMi Cayman and each of the following entities as of December 31, 2023: Name Background Ownership WiMi Hologram Cloud Limited(“WiMi HK”) ● A Hong Kong company ● Incorporated on September 4, 2018 ● Primarily engages in the sales of semiconductor products and related accessories 100% owned by WiMi Cayman Beijing Hologram WiMi Cloud Network Technology Co., Ltd.(“WiMi WFOE”) ● A PRC limited liability company and deemed a wholly foreign owned enterprise (“WFOE”) ● Incorporated on September 20, 2018 ● A holding company 100% owned by WiMi HK Beijing WiMi Cloud Software Co., Ltd.(“Beijing WiMi”) ● A PRC limited liability company ● Incorporated on May 27, 2015 ● Primarily engages in Hologram advertising services VIE of WiMi WFOE Shenzhen Yidian Network Technology Co., Ltd. ● A PRC limited liability company ● Incorporated on May 20, 2014 ● Primarily engages in AR advertising services 100% owned by Beijing WiMi Shenzhen Duodian Cloud Technology Co., Ltd. ● A PRC limited liability company ● Incorporated on August 24, 2017 ● Primarily engages in AR advertising services 100% owned by Shenzhen Yidian Korgas Duodian Network Technology Co., Ltd. ● A PRC limited liability company ● Incorporated on November 25, 2016 ● Primarily engages in AR advertising services 100% owned by Shenzhen Yidian Kashi Duodian Network Technology Co., Ltd. ● A PRC limited liability company ● Incorporated on January 31, 2019 ● Primarily engages in AR advertising services 100% owned by Shenzhen Yidian Name Background Ownership Shenzhen Zhiyun Image Technology Co., Ltd. (“Shenzhen Zhiyun”) ● A PRC limited liability company ● Incorporated on December 3, 2019 ● Primarily engages in AR advertising services 100% owned by Shenzhen Yidian Shenzhen Shiyunyanxi Technology Co., Ltd. (“Shenzhen Shiyun”) ● A PRC limited liability company ● Incorporated on June 9, 2021 ● Primarily engages in AR advertising services 100% owned by Shenzhen Yidian Shenzhen Yunzhan Image Technology Co., Ltd. (“Shenzhen Yunzhan”) ● A PRC limited liability company ● Incorporated on September 24, 2020 ● Primarily engages in AR advertising services 100% owned by Shenzhen Yidian Micro Beauty Lightspeed Investment Management HK Limited ● A Hong Kong company ● Incorporated on February 22, 2016 ● Primarily engages in MR software development and licensing 100% owned by Beijing WiMi Skystar Development Co., Ltd ● A Republic of Seychelles Company ● Incorporated on March 30, 2016 ● Primarily engages in MR software development and licensing 100% owned by Micro Beauty Viru Technology Limited (“Viru”) ● A Hong Kong company ● Incorporated on April 15, 2021 ● Primarily engages in AR advertising services 55% owned by Wimi HK Shenzhen Weiruntong Technology Co., Ltd. ● A PRC limited liability company ● Incorporated on August 26, 2022 ● Primarily engages in AR advertising services and no material operation as of December 31, 2023 100% owned by Viru Name Background Ownership VIDA Semicon Co., Limited (“VIDA”) ● A Hong Kong company ● Incorporated on August 21, 2020 ● Primarily engages in the sales of semiconductor products and related accessories 53% owned by WiMi HK Weeto Investment PTE. Ltd (“Weeto”) ● A Singapore limited liability company ● Incorporated on April 28, 2022 ● Primarily engages in AR advertising services. No material operations as of December 31, 2023 100% owned by Wimi Cayman Lixin Technology Co., Ltd. (“Lixin Technology”) ● A PRC limited liability company and deemed a wholly foreign owned enterprise (“WFOE”) ● Incorporated on August 4, 2020 ● Primarily engages in research, development and sale of computer chip and intelligent chip products 100% owned by WiMi Cayman Hainan Lixin Technology Co., Ltd. (“Hainan Lixin”) ● A PRC limited liability company ● Incorporated on October 10, 2020 ● Plan to support the daily operations of Lixin Technology 100% owned by Lixin Technology Tianjin Zhongzhengdaohe Investment Co., Ltd. (“TJ Zhongzheng”) ● A PRC limited liability company and deemed a wholly foreign owned enterprise (“WFOE”) ● Incorporated on March 4, 2021 ● A holding company 100% owned by WiMi Cayman Shenzhen Hedaozhongshu Technology Co., Ltd. (“Shenzhen Hedao”) ● A PRC limited liability company ● Incorporated on May 21, 2021 ● Plan to engage AR advertising services 100% owned by TJ Zhongzheng Kashi Daohezhongzheng Internet Technology Co., Ltd. (“Kashi Daohe”) ● A PRC limited liability company ● Incorporated on May 26, 2021 ● Plan to engage AR advertising services 100% owned by Shenzhen Hedao Dissolved on June 2, 2023 Name Background Ownership MicroAlgo Inc. (“MicroAlgo”) ● A Cayman company ● Incorporated on May 14, 2018 ● A holding company 56% owned by Wimi Cayman VIYI Algorithm Inc. (“VIYI”), previously known as VIYI Technology Inc. ● A Cayman company ● Incorporated on September 24, 2020 ● Primarily engages in the development of central processing algorithm and cloud computing services 86.5% owned by WiMi Cayman before March 26, 2021; 73% owned by WiMi Cayman after March 26, 2021; 100% owned by MicroAlgo after December 9, 2022 Fe-da Electronics Company Private Limited (“Fe-da Electronics”) ● A Singapore company ● Incorporated on January 9, 2009 ● Primarily engages in customization of central processing units 100% owned by VIYI Acquired in September 2020 Disposed in April 2023 Wisdom Lab Inc. (“Wisdom Lab”) ● A Cayman Islands company ● Incorporated on May 6, 2021 ● Engages in software solution for intelligent chips 100% owned by Fe-Da Electronics Disposed in April 2023 Excel Crest Limited (“Excel Crest”) ● A Hong Kong company ● Incorporated on September 10, 2020 ● Support the daily operations of Fe-da Electronics in Hong Kong 100% owned by Fe-da Electronics Disposed in April 2023 VIYI Technology Ltd. (“VIYI Ltd”) ● A Hong Kong company ● Incorporated on October 9, 2020 ● A holding company 100% owned by VIYI Shenzhen Weiyixin Technology Co., Ltd. (“Shenzhen Weiyixin”) ● A PRC limited liability company and deemed a wholly foreign owned enterprise (“WFOE”) ● Incorporated on November 18, 2020 ● A holding company 100% owned by VIYI Ltd Name Background Ownership Shanghai Weimu Technology Co., Ltd. (“Shanghai Weimu”) ● A PRC limited liability company ● Incorporated on November 30, 2020 ● Engages in providing software support services 58% owned by Shenzhen Weiyixin Weidong Technology Co., Ltd. (“Weidong”) ● A PRC limited liability company ● Incorporated on October 28, 2020 ● Primarily engages in AR advertising services 100% owned by Shenzhen Yitian before January 11, 2021; 100% owned by Shenzhen Weiyixin after January 11, 2021 Shanghai Guoyu Information Technology Co., Ltd. (“Shanghai Guoyu”) ● A PRC limited liability company ● Incorporated on March 18, 2019 ● Engages in R&D and application of intelligent visual algorithm technology 99% owned by Weidong, 1% owned by SZ Weidong Korgas Weidong Technology Co., Ltd. (“Korgas Weidong”) ● A PRC limited liability company ● Incorporated on October 30, 2020 ● Primarily engages in AR advertising services 100% owned by Weidong July 14, 2021 Shanghai Guoyu July 14, 2021 Korgas 233 Technology Co., Ltd. (“Korgas 233”) ● ● ● 100% owned by Shenzhen Yitian before January 11, 2021; 100% owned by YY Online after January 11, 2021; Dissolved in October 2023; Shenzhen Yiyou Online Technology Co., Ltd. (“YY Online”) ● A PRC limited liability company ● Incorporated on January 14, 2019 ● Primarily engages in AR advertising services 100% owned by Weidong Name Background Ownership Shenzhen Yitian Internet Technology Co., Ltd. ● A PRC limited liability company ● Incorporated on March 08, 2011 ● Primarily engages in mobile games development 100% owned by Beijing WiMi before December 24, 2020; VIE of Shenzhen Weiyixin starting on December 24, 2020; 100% owned by Shenzhen Weiyixin starting April 1, 2022 Shenzhen Qianhai Wangxin Technology Co., Ltd. ● A PRC limited liability company ● Incorporated on October 16, 2015 ● Primarily engages in AR advertising services 100% owned by Shenzhen Yitian CDDI Capital Ltd (“CDDI”) ● A ● 100% owned by VIYI Technology Limited VIWO AI Technology Inc. ● Incorporated on June 5, 2023, under the laws of the Cayman Islands ● A holding company 55% owned by CDDI Capital Ltd Viwo Technology Limited. ● A Hong Kong company ● Incorporated on April 15, 2021 ● Engages in intelligent chips design 100% owned by VIWO Cayman Shenzhen Viwotong Technology Co., Ltd. (“Viwotong Tech”) ● A PRC limited liability company ● Incorporated on July 19, 2021 ● No operations as of December 31, 2022 100% owned by Viwo Tech Guangzhou Tapuyu Internet Technology Co., Ltd. (“Tapuyu”) ● A PRC limited liability company ● Incorporated on June 22, 2021 ● Engages in E-commerce services and application of intelligent visual algorithm technology 100% owned by Viwotong Tech Beijing Younike Information Technology Co., Ltd. (“Younike”) ● ● ● 100% owned by Viwotong Tech Shenzhen Weidong Technology Co., Ltd. (“SZ Weidong”) ● ● I ● 100% owned by Weidong VIWO Technology (HK) Limited (VIWO HK) ● A Hong Kong company ● Incorporated on December 20,2023 ● A holding company 100% owned by VIWO Cayman |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Summary of Significant Accounting Policies [Abstract] | |
Schedule of Estimated Useful Lives | Depreciation is computed using the straight-line method over the estimated useful lives of the assets with 5% residual value. The estimated useful lives are as follows: Useful Life Office equipment 3 years Office furniture and fixtures 3 – 5 years Vehicles 3 – 5 years Building 20 years Leasehold improvements lesser of lease term or expected useful life |
Schedule of Disaggregate Revenue Streams | The Company’s disaggregate revenue streams are summarized below: December 31, December 31, December 31, December 31, RMB RMB RMB USD Online AR advertising services 436,475,875 480,322,821 571,842,123 80,737,872 Mobile games 13,498,964 1,356,556 732,505 103,422 Sales of semiconductor products 448,958,274 200,613,602 12,791,309 1,805,993 Software development 34,858,406 - - - Total revenues 933,791,519 682,292,979 585,365,937 82,647,287 |
Schedule of Revenue by Timing of Transfer of Goods or Services | The Company’s revenue by timing of transfer of goods or services are summarized below: December 31, December 31, December 31, December 31, RMB RMB RMB USD Goods and services transferred at a point in time 898,933,113 682,292,979 585,365,937 82,647,287 Services transferred over time 34,858,406 - - - Total revenues 933,791,519 682,292,979 585,365,937 82,647,287 |
Schedule of Revenue by Geographic Locations | The Company’s revenue by geographic locations are summarized below: December 31, December 31, December 31, December 31, RMB RMB RMB USD Mainland PRC revenues 593,803,869 483,328,411 542,958,194 76,659,777 Hong Kong revenues 118,590,946 61,882,662 32,297,915 4,560,113 International revenues 221,396,704 137,081,906 10,109,828 1,427,397 Total revenues 933,791,519 682,292,979 585,365,937 82,647,287 |
Schedule of Noncontrolling Interests | Noncontrolling interests consist of the following: December 31, December 31, December 31, RMB RMB USD VIDA (65,276,176 ) (39,704,812 ) (5,605,887 ) Viru 4,293,087 (141,931 ) (20,039 ) VIYI/MicroAlgo 159,054,091 48,415,473 6,835,737 Noncontrolling interests subscriptions receivable (172,528 ) - - Total noncontrolling interests 97,898,474 8,568,730 1,209,811 |
Variable Interest Entity (_VI_2
Variable Interest Entity (“VIE”) (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Variable Interest Entity (“VIE”) [Abstract] | |
Schedule of Condensed Balance Sheet | The carrying amount of the VIEs’ consolidated assets and liabilities are as follows: December 31, December 31, December 31, RMB RMB USD Current assets 13,264,579 48,490,650 6,846,351 Property and equipment, net 23,132,180 91,369,608 12,900,392 Other noncurrent assets 630,494,750 265,926,480 37,545,919 Total assets 666,891,509 405,786,738 57,292,662 Total liabilities (585,116,575 ) (609,000,686 ) (85,984,255 ) Net assets (81,771,934 ) (203,213,948 ) (28,691,593 ) December 31, December 31, December 31, RMB RMB USD Current liabilities: Accounts payable 11,043,034 9,219,643 1,301,713 Deferred revenues 14,402 - - Other payables and accrued liabilities 16,654,682 16,422,802 2,318,721 Current portion of shareholder loans 42,421,345 - - Taxes payable 4,913,881 6,901,910 974,474 Third-party loan - 186,932,179 49,914,977 Intercompany payable* 510,069,231 353,532,807 26,392,785 Total current liabilities 585,116,575 573,009,341 80,902,670 Non-current shareholder loan - 35,991,345 5,081,585 Total liabilities 585,116,575 609,000,686 85,984,255 * Intercompany balances will be eliminated upon consolidation. |
Schedule of Condensed Income Statement | The summarized operating results of the VIE’s are as follows: For the For the For the For the RMB RMB RMB USD Operating revenues 202,340,230 32,112,603 2,779,482 392,433 Gross profit 30,883,606 14,442,464 (210,922 ) (29,780 ) Income (loss) from operations (25,262,236 ) 589,775 (285,922,484 ) (40,369,137 ) Net income (loss) (159,401,372 ) 5,700,402 (286,436,377 ) (40,441,693 ) |
Schedule of Condensed Cash Flow Statement | The summarized statements of cash flow of the VIE’s are as follows: For the For the For the For the RMB RMB RMB USD Net cash provided by operating activities 44,560,277 29,324,687 (117,520,675 ) (16,592,638 ) Net cash (used in) provided by investing activities (49,269,310 ) 5,043,123 (67,043,921 ) (9,465,870 ) Net cash (used in) provided by financing activities 2,929,456 (84,715,145 ) 180,502,179 25,484,939 Effect of exchange rate on cash and cash equivalents (1,061,729 ) 11,795 90,793 (1,720 ) Net increase/(decrease) in cash and cash equivalents (2,841,306 ) (50,335,540 ) (3,971,624 ) (575,289 ) Cash and cash equivalents, beginning of year 59,249,721 56,408,415 6,072,875 871,963 Cash, cash equivalents and restricted cash, end of year 56,408,415 6,072,875 2,101,251 296,674 |
Schedule of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the parent company balance sheets that sum to the total of the same amounts shown in the parent company statements of cash flows: For the Years Ended December 31, 2021 2022 2023 2023 RMB RMB RMB USD Cash and cash equivalents 55,965,855 6,072,875 2,101,250 296,674 Restricted cash 442,560 - - - Total cash, cash equivalents and restricted cash 56,408,415 6,072,875 2,101,250 296,674 |
Business Combination (Tables)
Business Combination (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Business Combinations [Abstract] | |
Schedule of Fair Value of the Identifiable Assets Acquired and Liabilities Assumed | The following table summarizes the fair value of the identifiable assets acquired and liabilities assumed on the acquisition date, which represents the net purchase price allocation on the date of the acquisition of Younike and translated the fair value from USD to RMB using the exchange rate on January 1, 2023 at the rate of USD 1.00 to RMB 6.9646. Fair value Fair value RMB USD Cash 21,936 3,149 Other current assets 4,821,002 692,215 Current liabilities (4,842,938 ) (695,364 ) Total consideration - - Fair value Fair value RMB USD Cash 2,035 291 Other current assets 2,213,241 316,539 Current liabilities (2,215,276 ) (316,830 ) Total consideration - - Fair value Fair value RMB USD Cash 7,252,052 1,122,073 Other current assets 14,478,000 2,238,141 Plant and equipment 987,482 152,736 Current liabilities (16,936,210 ) (2,619,871 ) Net assets of acquirees 5,781,324 893,079 Gain on acquisition (5,781,318 ) (893,078 ) Total consideration 6 1 Fair value Fair value RMB USD Copyright 8,955,000 1,383,888 Goodwill 13,283,750 2,052,844 Deferred tax liabilities (2,238,750 ) (345,972 ) Total consideration 20,000,000 3,090,760 Fair value Fair value RMB USD Cash 161,638 25,335 Other current assets 1,701,734 266,815 Current liabilities (1,863,372 ) (292,150 ) Total consideration - - |
Deconsolidation (Tables)
Deconsolidation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Deconsolidation [Abstract] | |
Schedule of Fair Value of the Operations | The fair value of the operations of ICinit, determined as of October 1, 2021, included the estimated consideration received, less costs to sell. Gain from sales of this transaction is as follows: RMB USD Consideration received 40,975 6,427 Fair value of retained noncontrolling interest (49%) 1,003,886 157,455 Carrying value of noncontrolling interest 1,426,158 223,687 2,471,019 387,569 Less: ICinit’s book value (3,361,955 ) (527,308 ) Exchange rate difference (10,590 ) - Loss on deconsolidation (901,526 ) (139,739 ) |
Schedule of Net Assets | Net assets of the entities disposed and gain on disposal was as follows: December 31, RMB Total current assets 13,370,652 Total other assets 25,022 Total assets 13,395,674 Total current liabilities 22,402,087 Total net assets (9,006,413 ) Noncontrolling interests 53,661 Total consideration - Total gain on disposal 8,952,752 RMB USD Total current assets 3,583,579 505,962 Total other assets 115,270 16,275 Total assets 3,698,849 522,237 Total current liabilities 301,464 42,563 Total net assets 3,397,385 479,674 Total consideration - - Total loss on disposal 17,801,786 2,526,259 |
Recapitalization (Tables)
Recapitalization (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Recapialization Abstract | |
Schedule of Common Shares Issued and Outstanding | Common shares issued and outstanding following the Closing are as follows: Venus public shares after redemption 2,106,245 Venus shares converted from rights 482,500 Venus Sponsor shares 1,375,000 Venus shares issued to underwriter 75,000 Venus shares issued in the Business Combination 39,603,961 Venus shares issued to Joyous JD Limited 214,000 Weighted average shares outstanding 43,856,706 Percent of shares owned by VIYI shareholders 90.3 % Percent of shares owned by underwriter 0.17 % Percent of shares owned by Venus 9.04 % Percent of shares owned by Joyous JD limited 0.49 % |
Short Term Investments (Tables)
Short Term Investments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Short Term Investments [Abstract] | |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | December 31, 2022 December 31, 2023 December 31, 2023 RMB RMB USD Marketable securities 38,448,624 435,659,383 61,510,354 December 31, 2022 December 31, Fair Value 2022 Level 1 Level 2 Level 3 RMB RMB RMB RMB Marketable securities 38,448,624 38,448,624 - - December 31, 2023 December 31, Fair Value 2023 Level 1 Level 2 Level 3 RMB RMB RMB RMB Marketable securities 435,659,383 435,659,383 - - |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounts Receivable, Net [Abstract] | |
Schedule of Accounts Receivable, Net | Accounts receivable, net consisted of the following: December 31, December 31, December 31, RMB RMB USD Accounts receivable 137,427,191 51,457,258 7,265,204 Less: allowance for doubtful accounts (117,080,588 ) (27,735,262 ) (3,915,917 ) Accounts receivable, net 20,346,603 23,721,996 3,349,287 |
Schedule of Changes in Allowance for Doubtful Accounts | The following table summarizes the changes in allowance for doubtful accounts: December 31, 2022 December 31, 2023 December 31, 2023 RMB RMB USD Beginning balance 111,639,312 117,080,588 16,810,813 Provision for credit losses, net of recovery 4,743,475 (80,857,764 ) (11,416,234 ) Deconsolidation of ICinit and Shenzhen Kuxuanyou and subsidiaries (7,932,721 ) - - Deconsolidation of Fe-da and subsidiaries - (8,487,562 ) (1,198,351 ) Exchange rate difference 8,630,522 - (280,311 ) Ending balance 117,080,588 27,735,262 3,915,917 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consist of the following: December 31, December 31, December 31, RMB RMB USD Finished goods – holographic accessories 1,494,770 - - Finished goods – semiconductors 909,048 - - Total inventories 2,403,818 - - |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, net consist of the following: December 31, December 31, December 31, RMB RMB USD Office electronic equipment 1,381,602 1,144,347 161,569 Office fixtures and furniture 35,533 174,652 24,659 Vehicles 1,201,452 1,201,452 169,632 Building 24,825,710 94,259,656 13,308,435 Leasehold improvements 1,153,205 271,572 38,343 Subtotal 28,597,502 97,051,679 13,702,638 Less: accumulated depreciation (4,449,209 ) (4,916,961 ) (694,221 ) Total 24,148,293 92,134,718 13,008,417 |
Cost Method Investments (Tables
Cost Method Investments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Cost Method Investments [Abstract] | |
Schedule of Cost Method Investments | Cost method investments consist of the following: December 31, December 31, December 31, RMB RMB USD 19.0% Investment (1 company in the sales of semiconductor products and related accessories areas) 1,460,484 1,114,030 157,289 10% Investment (1 company) 38,000,000 268,422 37,898 9.0% Investment (2 company in the AR and virtual reality (“VR”) areas) 45,000,000 8,689,076 1,226,803 8.0% Investment (2 companies in the AR and VR areas) 1,100,000 - - 6.0% Investment (1 company in the AR, VR, software and robotic areas) 600,000 - - 5.5% Investment (1 company in the AR, VR 600,000 - - 5.0% Investment (23 companies in the AR, VR and digital marketing areas as of December 31, 2023 13,600,000 542,654 76,617 4.5% Investment (1 company in the VR medical treatment areas) 200,000 - - 4.0% Investment (13 companies in the AR, VR, 3D animation and software areas) 8,400,000 289,369 40,856 3.5% Investment (2 companies in the AR and VR areas) 1,200,000 342,948 48,421 3.0% Investment (5 companies in the AR, VR and 3D animation areas) 3,900,000 43,867 6,193 2.55% Investment (1 company in the AR, VR and 3D animation areas) 13,929,200 - - 2.0% Investment (3 companies in the AR, VR, 3D animation and software areas) 1,200,000 25,022 3,533 1.0% Investment (12 companies in the AR, VR, 3D animation, hardware and software areas) 41,450,000 185,320 26,165 Total 170,639,684 11,500,708 1,623,775 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Intangible Assets, Net [Abstract] | |
Schedule of Acquired Intangible Asset | The following table summarizes acquired intangible asset balances as of: December 31, December 31, December 31, RMB RMB USD Copyrights 8,955,000 3,731,250 526,812 Non-compete agreements 42,200,000 42,200,000 5,958,180 Subtotal 51,155,000 45,931,250 6,484,992 Less: accumulated amortization (44,438,750 ) (45,931,250 ) (6,484,992 ) Intangible assets, net 6,716,250 - - |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill [Abstract] | |
Schedule of Goodwill | We have three reporting units that have goodwill. The following table categorizes our goodwill by reporting unit as of December 31, 2023 Segment Reporting Net Fair Carrying (in RMB thousands) (in RMB thousands) (in RMB thousands) AR advertising services Shenzhen Yidian - 175,860 187,829 AR advertising services Shenzhen Yitian - 203,596 203,596 AR advertising services Guoyu - 159 159 |
Other Payables and Accrued Li_2
Other Payables and Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Payables and Accrued Liabilities [Abstract] | |
Schedule of Other Payables and Accrued Liabilities | Other payables and accrued liabilities consist of the following: December 31, December 31, December 31, RMB RMB USD Salary payables 1,909,260 1,068,104 150,805 Other payables and accrued expenses 10,233,141 159,677,872 22,544,774 Accrued interest payable 10,086,400 9,739,427 1,375,101 Total other payables and accrued liabilities 22,228,801 170,485,403 24,070,680 |
Related Party Balances and Tr_2
Related Party Balances and Transactions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Balances and Transactions [Abstract] | |
Schedule of Related Party Transactions | Name of Related Parties Relationship Nature December 31, December 31, December 31, December 31, RMB RMB RMB USD Yang Cui Executive director of Loan 16,100,000 - - - Shanghai Junei Internet Co. Under common control of Loan 71,036,490 42,421,345 35,991,345 5,081,585 Total: 87,136,490 42,421,345 35,991,345 5,081,585 Related party loan – current 20,000,000 42,421,345 - - Related party loan – non-current 67,136,490 - 35,991,345 5,081,585 |
Schedule of Maturities | The maturities schedule is as follows: Twelve months ending December 31, RMB USD 2024 - - 2025 35,991,345 5,081,585 Total 35,991,345 5,081,585 |
Schedule of Non-Interest Bearing and Due On Demand | December 31, December 31, December 31, December 31, 2021 2022 2023 2023 RMB RMB RMB USD Other payables Related Party-Joyous JD - 1,067,903 1,086,012 153,333 |
Taxes (Tables)
Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Taxes [Abstract] | |
Schedule of Components of the Benefit of (Provision for) Income Taxes | Significant components of the benefit of (provision for) income taxes are as follows: For the For the For the For the RMB RMB RMB USD Current (2,189,629 ) (135,968 ) (140,037 ) (19,772 ) Deferred 3,024,851 3,758,877 2,666,910 376,539 Income tax credit 835,222 3,622,909 2,526,873 356,767 |
Schedule of Reconciles China Statutory Rates to the Company’s Effective Tax Rate | The following table reconciles China statutory rates to the Company’s effective tax rate: For the For the For the China statutory income tax rate 25.0 % 25.0 % 25.0 % Preferential tax rate in China (14.0 )% (2.6 )% (20.0 )% Tax rate difference outside China (1) (7.0 )% (18.0 )% (16.8 )% Change in valuation allowance 4.7 % (9.9 )% (5.0 )% Additional R&D deduction in China (8.5 )% (0.3 )% - Permanent difference 0.1 % 6.8 % 17.2 % Effective tax rate 0.3 % 1.0 % 0.5 % (1) It is mainly due to the lower tax rate of the entities incorporated in Hong Kong, Singapore, and tax exempt in Cayman Islands. |
Schedule of Components of Deferred Tax Assets and Liabilities | Significant components of deferred tax assets and liabilities were as follows: December 31, December 31, December 31, RMB RMB USD Deferred tax assets: Allowance for doubtful accounts 372,554 987,848 139,473 Net operating loss carryforward 49,695,212 19,352,270 2,732,329 Less: valuation allowance (50,067,766 ) (19,352,270 ) (2,732,329 ) Deferred tax assets, net - 987,848 139,473 Deferred tax liabilities: Recognition of intangible assets arising from business combinations 1,679,063 - - Total deferred tax liabilities, net 1,679,063 - - |
Schedule of Taxes Payable | Taxes payable consisted of the following: December 31, December 31, December 31, RMB RMB USD VAT taxes payable 41,902 396,457 55,975 Income taxes payable 5,363,733 5,024,623 709,422 Other taxes payable 24,094 2,009,768 283,758 Total 5,429,729 7,430,848 1,049,155 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Schedule of Maturity Lease Obligations | The maturity of the Company ’ Twelve Months Ending December 31, Operating Operating RMB USD 2023 447,365 * 63,163 2024 - - 2025 - - 2026 - - 2027 - - Total lease payments 447,365 63,163 Less: Interest (14,891 ) (2,102 ) Present value of lease liabilities 432,474 61,061 * Include the operating leases with a term less than one year. |
Shareholders_ Equity (Tables)
Shareholders’ Equity (Tables) - Warrant [Member] | 12 Months Ended |
Dec. 31, 2023 | |
Shareholders’ Equity (Tables) [Line Items] | |
Schedule of Fair Value of Net Proceeds Received | The fair value of the warrants was RMB 108.5 million (USD 16.8 million), which was valued based on the Black-Scholes-Merton model and was recorded as additional paid-in capital from common stock based on the relative fair value of net proceeds received using the following assumptions: Annual dividend yield - Expected life (years) 2.0 Risk-free interest rate 0.92 % Expected volatility 180.03 % |
Schedule of Warrants Outstanding and Exercisable | Following is a summary of the status of warrants outstanding and exercisable as of December 31, 2023: Warrants Weighted Warrants outstanding, as of December 31, 2020 4,469,334 $ 8.6 Issued - - Exercised - - Expired - - Warrants outstanding, as of December 31, 2021 4,469,334 $ 8.6 Issued - - Exercised - - Expired - - Warrants outstanding, as of December 31, 2022 4,469,334 $ 8.6 Issued - $ - Exercised - - Expired (4,469,334 ) $ 8.6 Warrants outstanding, as of December 31, 2023 - $ - Warrants exercisable, as of December 31, 2023 - $ - |
Warrant Liability (Tables)
Warrant Liability (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Warrant Liability [Abstract] | |
Schedule of Key Inputs into the Black-Scholes Model | The key inputs into the Black-Scholes model were as follows at their following measurement dates: December 09, December 31, December 31, December 31, December 31, USD USD RMB USD RMB Input Share price 10.47 1.25 8.71 0.91 6.45 Risk-free interest rate 3.8 % 4.0 % 4.0 % 3.95 % 3.95 % Volatility 5.7 % 5.7 % 5.7 % 5.7 % 5.7 % Exercise price 11.50 11.50 80.09 11.50 81.45 Warrant life (yr) 4.97 4.92 4.92 3.92 3.92 |
Segments (Tables)
Segments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segments (Tables) [Line Items] | |
Schedule of Information by Segment | The following tables present summary information by segment for the years ended December 31, 2021, 2022 and 2023: AR AR Semiconductor Total RMB RMB RMB RMB Revenues 435,917,971 14,056,868 483,816,680 933,791,519 Cost of revenues 254,217,297 4,385,783 425,620,752 684,223,832 Gross profit 181,700,674 9,671,085 58,195,928 249,567,687 Depreciation and amortization 5,936,500 5,385,869 7,202,994 18,525,363 Total capital expenditures 23,782,060 17,120 1,366,302 25,165,482 AR AR Semiconductor Total RMB RMB RMB RMB Revenues 480,322,821 1,356,556 200,613,602 682,292,979 Cost of revenues 337,945,690 145,397 201,155,503 539,246,590 Gross profit 142,528,452 1,059,838 (541,901 ) 143,046,389 Depreciation and amortization 2,939,581 2,761 7,541,422 10,483,764 Total capital expenditures 1,105,905 - - 1,105,905 AR AR Semiconductor Total Total RMB RMB RMB RMB USD Revenues 571,842,123 732,505 12,791,309 585,365,937 82,647,287 Cost of revenues 397,499,842 1,449,637 12,714,387 411,663,866 58,122,449 Gross profit 174,342,281 (717,132 ) 76,922 173,702,071 24,524,838 Depreciation and amortization 3,767,215 737,384 412,362 4,916,961 694,221 Total capital expenditures 69,520,884 - - 69,520,884 9,865,736 |
Schedule of Total Assets | Total assets as of: December 31, December 31, December 31, RMB RMB USD AR advertising services 1,071,603,048 551,391,408 77,850,455 AR entertainment 9,504,306 471,845,963 66,619,504 Semiconductor business 179,234,012 7,773,250 1,097,498 Total assets 1,260,341,366 1,031,010,621 145,567,457 |
Schedule of Information of Revenues by Geographic Locations | The Company’s revenue by geographic locations are summarized below: December 31, December 31, December 31, December 31, RMB RMB RMB USD Mainland PRC revenues 593,803,869 483,328,411 542,958,194 76,659,777 Hong Kong revenues 118,590,946 61,882,662 32,297,915 4,560,113 International revenues 221,396,704 137,081,906 10,109,828 1,427,397 Total revenues 933,791,519 682,292,979 585,365,937 82,647,287 |
PRC [Member] | |
Segments (Tables) [Line Items] | |
Schedule of Information of Revenues by Geographic Locations | The Company’s operations are primarily based in the PRC, where the Company derives a substantial portion of their revenues. Management also reviews consolidated financial results by business locations. Disaggregated information of revenues by geographic locations are as follows: For the year For the year For the year For the year RMB RMB RMB USD Mainland PRC revenues 593,803,869 483,328,411 542,958,194 76,659,777 Hong Kong revenues 118,590,946 61,882,662 32,297,915 4,560,113 International revenues 221,396,704 137,081,906 10,109,828 1,427,397 Total revenues 933,791,519 682,292,979 585,365,937 82,647,287 |
Condensed Financial Informati_2
Condensed Financial Information of the Parent Company (Tables) - Parent Company [Member] | 12 Months Ended |
Dec. 31, 2023 | |
Condensed Financial Information of the Parent Company (Tables) [Line Items] | |
Schedule of Parent Company Balance Sheets | PARENT COMPANY BALANCE SHEETS December 31, December 31, December 31, RMB RMB USD ASSETS CURRENT ASSETS Cash in bank 17,660,758 3,578,051 505,182 Short term investment 27,761,919 378,843,373 53,488,553 Other receivables – intercompany 875,276,939 733,775,060 103,601,036 Total current assets 920,699,616 1,116,196,484 157,594,771 NON-CURRENT ASSETS Other receivable-related parties 49,794,054 - - Investment in subsidiaries 80,972,615 - - Total non-current assets 130,766,669 - - Total assets 1,051,466,285 1,116,196,484 157,594,771 LIABILITIES AND SHAREHOLDERS’ EQUITY Other payables - 68,209,284 9,630,407 Other payables - intercompany - 999,427 141,108 Total liabilities - 69,208,711 9,771,515 SHAREHOLDERS’ EQUITY Class A ordinary shares, USD 0.0001 par value, 20,115,570 shares authorized, 20,115,570 shares issued and outstanding of December 31, 2022 and 2023 13,095 13,095 1,849 Class B ordinary shares, USD 0.0001 par value, 466,967,730 shares authorized, 153,300,513 shares and 176,300,513 shares issued and outstanding of December 31, 2022 and 2023 102,127 117,681 16,615 Additional paid-in capital 1,552,410,496 1,608,052,978 227,039,544 Accumulated deficit (517,971,017 ) (646,273,236 ) (91,246,733 ) Statutory reserves 24,478,153 25,647,972 3,621,214 Accumulated other comprehensive loss (7,566,569 ) 59,429,283 8,390,767 Total shareholders’ equity 1,051,466,285 1,046,987,773 147,823,256 Total liabilities and shareholders’ equity 1,051,466,285 1,116,196,484 157,594,771 |
Schedule of Parent Company Statements of Operations and Comprehensive Loss | PARENT COMPANY STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS For the Years Ended December 31, 2021 2022 2023 2023 RMB RMB RMB USD OPERATING EXPENSES General and administrative (10,704,897 ) (7,372,851 ) (4,400,226 ) (621,264 ) Research and development (27,394,359 ) (242,803,298 ) - - Stock compensation (10,582,557 ) (6,447,471 ) (55,171,257 ) (7,789,580 ) Total operating expenses (48,681,813 ) (256,623,620 ) (59,571,483 ) (8,410,844 ) LOSS FROM OPERATIONS (48,681,813 ) (256,623,620 ) (59,571,483 ) (8,410,844 ) OTHER INCOME (EXPENSE) Investment income (loss) 2,491,671 (29,052,387 ) 8,645,424 1,220,640 Interest income 2,408 78,931 3,697,152 521,998 Finance expense (21,282 ) (22,526 ) (100,698 ) (14,217 ) Other income (expense), net 503,806 3,452,034 - - Equity income (loss) of subsidiaries (190,267,969 ) (75,563,525 ) (80,972,615 ) (11,432,450 ) Total other income (expense), net (187,291,366 ) (101,107,473 ) (68,730,737 ) (9,704,029 ) NET LOSS (235,973,179 ) (357,731,093 ) (128,302,220 ) (18,114,873 ) FOREIGN CURRENCY TRANSLATION ADJUSTMENT (19,536,206 ) 47,403,782 66,841,729 9,437,323 COMPREHENSIVE LOSS (255,509,385 ) (310,327,311 ) (61,460,491 ) (8,677,550 ) |
Schedule of Parent Company Statements of Cash Flows | PARENT COMPANY STATEMENTS OF CASH FLOWS For the Years Ended December 31, 2021 2022 2023 2023 RMB RMB RMB USD CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) (235,973,179 ) (357,731,093 ) (128,302,220 ) (18,114,873 ) Adjustments to reconcile net income to cash used in operating activities: Stock compensation expense 10,582,557 6,447,471 56,827,855 8,023,473 (Gain) loss from short term investment (2,491,671 ) 29,052,387 (8,645,424 ) (1,220,640 ) Equity (income) loss of subsidiaries and VIEs 190,267,969 75,563,525 - - Change in operating assets and liabilities Other receivable - related parties - - 49,794,054 7,030,377 Other payables 68,209,284 9,630,407 Intercompany (199,216,770 ) (140,366,420 ) 142,501,305 20,119,630 Prepaid expenses 1,571,484 - - - Net cash used in operating activities (235,259,610 ) (387,034,130 ) 180,384,854 25,468,374 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of short term investments (98,023,653 ) (314,610,239 ) (342,436,029 ) (48,348,233 ) Redemptions of short term investments 99,084,663 294,130,260 - - Long term investment in subsidiaries 870,953 - 80,972,615 11,432,450 Net cash (used in) provided by investing activities 1,931,963 (20,479,979 ) (261,463,414 ) (36,915,783 ) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from public offerings, net 508,132,968 - - - Repayment to related party loans (2,274,154 ) - - - Sale of subsidiary’s noncontrolling interest 87,369,300 - - - Net cash provided by financing activities 593,228,114 - - - EFFECT OF EXCHANGE RATE ON CASH (12,519,279 ) 22,723,004 66,995,853 9,416,802 CHANGES IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH 347,381,188 (384,791,105 ) (14,082,707 ) (2,030,607 ) CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of year 55,070,675 402,451,863 17,660,758 2,535,789 CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of year 402,451,863 17,660,758 3,578,051 505,182 For the Years Ended December 31, 2021 2022 2023 2023 RMB RMB RMB USD Cash and cash equivalents 402,451,863 17,660,758 3,578,051 505,182 Restricted cash - - - - Total cash, cash equivalents and restricted cash shown in the parent company statements of cash flows 402,451,863 17,660,758 3,578,051 505,182 |
Nature of Business and Organi_3
Nature of Business and Organization (Details) | 1 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||
Apr. 06, 2023 CNY (¥) | Apr. 06, 2023 USD ($) | Nov. 01, 2022 CNY (¥) | Nov. 01, 2022 USD ($) | Sep. 23, 2022 CNY (¥) | Sep. 23, 2022 USD ($) | May 25, 2022 CNY (¥) | May 25, 2022 USD ($) | May 25, 2022 CNY (¥) | May 25, 2022 USD ($) | May 25, 2022 HKD ($) | Oct. 01, 2021 CNY (¥) | Oct. 01, 2021 USD ($) | Oct. 01, 2021 HKD ($) | Sep. 23, 2022 CNY (¥) | Sep. 23, 2022 USD ($) | Dec. 31, 2023 CNY (¥) | Dec. 24, 2020 CNY (¥) | Dec. 24, 2020 USD ($) | Feb. 28, 2024 | Jun. 27, 2023 | Jan. 01, 2023 | Dec. 31, 2022 CNY (¥) | Dec. 09, 2022 shares | May 25, 2022 USD ($) | Apr. 01, 2022 | Dec. 31, 2021 CNY (¥) | Apr. 15, 2021 | Mar. 04, 2021 CNY (¥) | Mar. 04, 2021 USD ($) | Dec. 18, 2020 | Nov. 30, 2020 | Sep. 28, 2020 | Aug. 21, 2020 | Jun. 01, 2020 | |
Nature of Business and Organization [Line Items] | |||||||||||||||||||||||||||||||||||
Consideration | ¥ 1 | $ 0.1 | ¥ 3,594,155 | $ 391,186 | $ 3,050,000 | ||||||||||||||||||||||||||||||
Investment | ¥ 1,460,484 | ¥ 1,460,484 | ¥ 55,462,670 | $ 209,701 | ¥ 600,000 | ||||||||||||||||||||||||||||||
Consideration value | ¥ 1 | $ 0.2 | |||||||||||||||||||||||||||||||||
Advertising services description | On July 19, 2021, Viwo Technology established a fully owned subsidiary Shenzhen Viwotong Technology Co., Ltd. (“Viwotong Tech”) in Shenzhen to support its operations. On November 19, 2021 Viwotong Tech acquired 100% equity interests of Guangzhou Tapuyu Internet Technology Co., Ltd. (“Tapuyu”), a provider of advertising services, for RMB 2 (approximately USD 0.3). On December 7, 2021, Viwotong Tech purchased Pengcheng Keyi (Xi’an) Intelligence Technology Co., Ltd. (“Pengcheng Keyi”), a provider of testing equipment development and sales, for RMB 2 (approximately USD 0.3). On July 1, 2022, Viwo Technology Inc. entered into an equity transfer agreement to transfer 99.0% and 1.0% of the issued share capital of Pengcheng Keyi to two unrelated individuals at RMB 1.0 and RMB 0.1(USD$ 0.01), respectively. (See Note 4 for details) | ||||||||||||||||||||||||||||||||||
Loss amount | ¥ 1,100,000 | $ 200,000 | |||||||||||||||||||||||||||||||||
Transfer | ¥ 17,801,786 | $ 2,526,259 | ¥ 387,632 | $ 55,657 | |||||||||||||||||||||||||||||||
Term of agreement | 10 years | ||||||||||||||||||||||||||||||||||
Shenzhen Zhangshangkuyu Technology Ltd [Member] | |||||||||||||||||||||||||||||||||||
Nature of Business and Organization [Line Items] | |||||||||||||||||||||||||||||||||||
Equity interest percentage | 100% | 100% | |||||||||||||||||||||||||||||||||
Fe-da Electronics Company Private Limited (“Fe-da Electronics”) [Member] | |||||||||||||||||||||||||||||||||||
Nature of Business and Organization [Line Items] | |||||||||||||||||||||||||||||||||||
Equity interest percentage | 100% | ||||||||||||||||||||||||||||||||||
Shenzhen Yitian [Member] | |||||||||||||||||||||||||||||||||||
Nature of Business and Organization [Line Items] | |||||||||||||||||||||||||||||||||||
Equity interest percentage | 100% | ||||||||||||||||||||||||||||||||||
Viwotong Tech [Member] | |||||||||||||||||||||||||||||||||||
Nature of Business and Organization [Line Items] | |||||||||||||||||||||||||||||||||||
Equity interest percentage | 100% | 100% | 100% | 100% | 100% | 100% | |||||||||||||||||||||||||||||
Vize Technology Limited (“Vize”) [Member] | |||||||||||||||||||||||||||||||||||
Nature of Business and Organization [Line Items] | |||||||||||||||||||||||||||||||||||
Equity interest percentage | 100% | 100% | |||||||||||||||||||||||||||||||||
Beijing Viwotong [Member] | |||||||||||||||||||||||||||||||||||
Nature of Business and Organization [Line Items] | |||||||||||||||||||||||||||||||||||
Equity interest percentage | 100% | ||||||||||||||||||||||||||||||||||
Lucky Monkey Holding Limited [Member] | |||||||||||||||||||||||||||||||||||
Nature of Business and Organization [Line Items] | |||||||||||||||||||||||||||||||||||
Consideration | ¥ 60,321 | $ 6,400 | $ 50,000 | ||||||||||||||||||||||||||||||||
Bofeng Investment Limited [Member] | |||||||||||||||||||||||||||||||||||
Nature of Business and Organization [Line Items] | |||||||||||||||||||||||||||||||||||
Equity transfer percentage | 30% | 30% | 30% | ||||||||||||||||||||||||||||||||
Beijing WiMi [Member] | |||||||||||||||||||||||||||||||||||
Nature of Business and Organization [Line Items] | |||||||||||||||||||||||||||||||||||
Ownership percentage | 99% | 99% | 17.90% | ||||||||||||||||||||||||||||||||
Ms. Yao Zhaohua [Member] | |||||||||||||||||||||||||||||||||||
Nature of Business and Organization [Line Items] | |||||||||||||||||||||||||||||||||||
Ownership percentage | 99.90% | ||||||||||||||||||||||||||||||||||
Consideration value | $ | $ 0.2 | ||||||||||||||||||||||||||||||||||
Ms. Sun Yadong [Member] | |||||||||||||||||||||||||||||||||||
Nature of Business and Organization [Line Items] | |||||||||||||||||||||||||||||||||||
Ownership percentage | 0.10% | ||||||||||||||||||||||||||||||||||
ICinit Limited [Member] | |||||||||||||||||||||||||||||||||||
Nature of Business and Organization [Line Items] | |||||||||||||||||||||||||||||||||||
Ownership percentage | 51% | ||||||||||||||||||||||||||||||||||
Lucky Monkey Holding Limited [Member] | |||||||||||||||||||||||||||||||||||
Nature of Business and Organization [Line Items] | |||||||||||||||||||||||||||||||||||
Ownership percentage | 2% | 2% | 2% | ||||||||||||||||||||||||||||||||
ICinit [Member] | |||||||||||||||||||||||||||||||||||
Nature of Business and Organization [Line Items] | |||||||||||||||||||||||||||||||||||
Ownership percentage | 19% | 19% | 34.10% | 19% | |||||||||||||||||||||||||||||||
VIDA Semicon Co., Limited (“VIDA”) [Member] | |||||||||||||||||||||||||||||||||||
Nature of Business and Organization [Line Items] | |||||||||||||||||||||||||||||||||||
Ownership percentage | 53% | ||||||||||||||||||||||||||||||||||
Viru Technology Limited (“Viru”) [Member] | |||||||||||||||||||||||||||||||||||
Nature of Business and Organization [Line Items] | |||||||||||||||||||||||||||||||||||
Ownership percentage | 55% | ||||||||||||||||||||||||||||||||||
Shenzhen Weiyixi [Member] | |||||||||||||||||||||||||||||||||||
Nature of Business and Organization [Line Items] | |||||||||||||||||||||||||||||||||||
Ownership percentage | 58% | ||||||||||||||||||||||||||||||||||
Shenzhen Yitian Internet Technology Co., Ltd. (“Shenzhen Yitian”) [Member] | |||||||||||||||||||||||||||||||||||
Nature of Business and Organization [Line Items] | |||||||||||||||||||||||||||||||||||
Ownership percentage | 1% | 1% | |||||||||||||||||||||||||||||||||
VIWO AI Technology Inc. (“VIWO Cayman”) [Member] | |||||||||||||||||||||||||||||||||||
Nature of Business and Organization [Line Items] | |||||||||||||||||||||||||||||||||||
Ownership percentage | 1% | 1% | 55% | ||||||||||||||||||||||||||||||||
Ms. Yao Zhaohua [Member] | Beijing WiMi [Member] | |||||||||||||||||||||||||||||||||||
Nature of Business and Organization [Line Items] | |||||||||||||||||||||||||||||||||||
Ownership percentage | 17.90% | ||||||||||||||||||||||||||||||||||
Guangzhou Bimai Network Technology Co., Ltd. (“Bimai”) [Member] | |||||||||||||||||||||||||||||||||||
Nature of Business and Organization [Line Items] | |||||||||||||||||||||||||||||||||||
Aggregate purchase price | ¥ 2 | $ 0.3 | |||||||||||||||||||||||||||||||||
TJ Zhongzheng [Member] | |||||||||||||||||||||||||||||||||||
Nature of Business and Organization [Line Items] | |||||||||||||||||||||||||||||||||||
Register capital | ¥ 195,700,000 | $ 30,000,000 | |||||||||||||||||||||||||||||||||
Beijing WiMi [Member] | Exclusive Share Purchase Option Agreement [Member] | |||||||||||||||||||||||||||||||||||
Nature of Business and Organization [Line Items] | |||||||||||||||||||||||||||||||||||
Term of agreement | 10 years | ||||||||||||||||||||||||||||||||||
Business Combination [Member] | |||||||||||||||||||||||||||||||||||
Nature of Business and Organization [Line Items] | |||||||||||||||||||||||||||||||||||
Acquired description | On July 1, 2021, VIYI acquired 100% interest of Shanghai Guoyu Information Technologies Co., Ltd (“Shanghai Guoyu”). The aggregate purchase price is $3.0 million (RMB 20,000,000). On July 19, 2021 Shanghai Guoyu established 100% owned subsidiary Kashi Guoyu Information Technologies Co., Ltd (“Kashi Guoyu”). | ||||||||||||||||||||||||||||||||||
Shenzhen Yitian [Member] | |||||||||||||||||||||||||||||||||||
Nature of Business and Organization [Line Items] | |||||||||||||||||||||||||||||||||||
Ownership percentage | 100% | ||||||||||||||||||||||||||||||||||
ICinit [Member] | |||||||||||||||||||||||||||||||||||
Nature of Business and Organization [Line Items] | |||||||||||||||||||||||||||||||||||
Investment | ¥ 1,460,484 | ¥ 1,460,484 | $ 209,701 | ||||||||||||||||||||||||||||||||
Shenzhen Kuxuanyou [Member] | |||||||||||||||||||||||||||||||||||
Nature of Business and Organization [Line Items] | |||||||||||||||||||||||||||||||||||
Consideration | ¥ 1 | $ 0.1 | |||||||||||||||||||||||||||||||||
Ms. Yao Zhaohua [Member] | |||||||||||||||||||||||||||||||||||
Nature of Business and Organization [Line Items] | |||||||||||||||||||||||||||||||||||
Consideration value | ¥ | ¥ 1 | ||||||||||||||||||||||||||||||||||
VIYI shareholders [Member] | |||||||||||||||||||||||||||||||||||
Nature of Business and Organization [Line Items] | |||||||||||||||||||||||||||||||||||
Share issued (in Shares) | shares | 39,603,961 |
Nature of Business and Organi_4
Nature of Business and Organization (Details) - Schedule of Consolidated Financial Statements Reflect the Activities of Wimi Cayman and Each of Entities | 12 Months Ended |
Dec. 31, 2023 | |
WiMi Hologram Cloud Limited [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Name | WiMi Hologram Cloud Limited(“WiMi HK”) |
Background | ● A Hong Kong company ● Incorporated on September 4, 2018 ● Primarily engages in the sales of semiconductor products and related accessories |
Ownership | 100% owned by WiMi Cayman |
Beijing Hologram WiMi Cloud Network Technology Co., Ltd. [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Name | Beijing Hologram WiMi Cloud Network Technology Co., Ltd.(“WiMi WFOE”) |
Background | ● A PRC limited liability company and deemed a wholly foreign owned enterprise (“WFOE”) ● Incorporated on September 20, 2018 ● A holding company |
Ownership | 100% owned by WiMi HK |
Beijing WiMi Cloud Software Co., Ltd. [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Name | Beijing WiMi Cloud Software Co., Ltd.(“Beijing WiMi”) |
Background | ● A PRC limited liability company ● Incorporated on May 27, 2015 ● Primarily engages in Hologram advertising services |
Ownership | VIE of WiMi WFOE |
Shenzhen Yidian Network Technology Co., Ltd. (“Shenzhen Yidian”) [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Name | Shenzhen Yidian Network Technology Co., Ltd. (“Shenzhen Yidian”) |
Background | ● A PRC limited liability company ● Incorporated on May 20, 2014 ● Primarily engages in AR advertising services |
Ownership | 100% owned by Beijing WiMi |
Shenzhen Duodian Cloud Technology Co., Ltd. (“Shenzhen Duodian”) [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Name | Shenzhen Duodian Cloud Technology Co., Ltd. (“Shenzhen Duodian”) |
Background | ● A PRC limited liability company ● Incorporated on August 24, 2017 ● Primarily engages in AR advertising services |
Ownership | 100% owned by Shenzhen Yidian |
Korgas Duodian Network Technology Co., Ltd. (“Korgas Duodian”) [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Name | Korgas Duodian Network Technology Co., Ltd. (“Korgas Duodian”) |
Background | ● A PRC limited liability company ● Incorporated on November 25, 2016 ● Primarily engages in AR advertising services |
Ownership | 100% owned by Shenzhen Yidian |
Kashi Duodian Network Technology Co., Ltd. (“Kashi Duodian”) [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Name | Kashi Duodian Network Technology Co., Ltd. (“Kashi Duodian”) |
Background | ● A PRC limited liability company ● Incorporated on January 31, 2019 ● Primarily engages in AR advertising services |
Ownership | 100% owned by Shenzhen Yidian |
Shenzhen Zhiyun Image Technology Co., Ltd. (“Shenzhen Zhiyun”) [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Name | Shenzhen Zhiyun Image Technology Co., Ltd. (“Shenzhen Zhiyun”) |
Background | ● A PRC limited liability company ● Incorporated on December 3, 2019 ● Primarily engages in AR advertising services |
Ownership | 100% owned by Shenzhen Yidian |
Shenzhen Shiyunyanxi Technology Co., Ltd. (“Shenzhen Shiyun”) [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Name | Shenzhen Shiyunyanxi Technology Co., Ltd. (“Shenzhen Shiyun”) |
Background | ● A PRC limited liability company ● Incorporated on June 9, 2021 ● Primarily engages in AR advertising services |
Ownership | 100% owned by Shenzhen Yidian |
Shenzhen Yunzhan Image Technology Co., Ltd. (“Shenzhen Yunzhan”) [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Name | Shenzhen Yunzhan Image Technology Co., Ltd. (“Shenzhen Yunzhan”) |
Background | ● A PRC limited liability company ● Incorporated on September 24, 2020 ● Primarily engages in AR advertising services |
Ownership | 100% owned by Shenzhen Yidian |
Micro Beauty Lightspeed Investment Management HK Limited (“Micro Beauty”) [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Name | Micro Beauty Lightspeed Investment Management HK Limited (“Micro Beauty”) |
Background | ● A Hong Kong company ● Incorporated on February 22, 2016 ● Primarily engages in MR software development and licensing |
Ownership | 100% owned by Beijing WiMi |
Skystar Development Co., Ltd (“Skystar”) [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Name | Skystar Development Co., Ltd (“Skystar”) |
Background | ● A Republic of Seychelles Company ● Incorporated on March 30, 2016 ● Primarily engages in MR software development and licensing |
Ownership | 100% owned by Micro Beauty |
Viru Technology Limited (“Viru”) [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Name | Viru Technology Limited (“Viru”) |
Background | ● A Hong Kong company ● Incorporated on April 15, 2021 ● Primarily engages in AR advertising services |
Ownership | 55% owned by Wimi HK |
Shenzhen Weiruntong Technology Co., Ltd. (“Shenzhen Weiruntong”) [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Name | Shenzhen Weiruntong Technology Co., Ltd. (“Shenzhen Weiruntong”) |
Background | ● A PRC limited liability company ● Incorporated on August 26, 2022 ● Primarily engages in AR advertising services and no material operation as of December 31, 2023 |
Ownership | 100% owned by Viru |
VIDA Semicon Co., Limited (“VIDA”) [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Name | VIDA Semicon Co., Limited (“VIDA”) |
Background | ● A Hong Kong company ● Incorporated on August 21, 2020 ● Primarily engages in the sales of semiconductor products and related accessories |
Ownership | 53% owned by WiMi HK |
Weeto Investment PTE. Ltd (“Weeto”) [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Name | Weeto Investment PTE. Ltd (“Weeto”) |
Background | ● A Singapore limited liability company ● Incorporated on April 28, 2022 ● Primarily engages in AR advertising services. No material operations as of December 31, 2023 |
Ownership | 100% owned by Wimi Cayman |
Lixin Technology Co., Ltd. (“Lixin Technology”) [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Name | Lixin Technology Co., Ltd. (“Lixin Technology”) |
Background | ● A PRC limited liability company and deemed a wholly foreign owned enterprise (“WFOE”) ● Incorporated on August 4, 2020 ● Primarily engages in research, development and sale of computer chip and intelligent chip products |
Ownership | 100% owned by WiMi Cayman |
Hainan Lixin Technology Co., Ltd. (“Hainan Lixin”) [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Name | Hainan Lixin Technology Co., Ltd. (“Hainan Lixin”) |
Background | ● A PRC limited liability company ● Incorporated on October 10, 2020 ● Plan to support the daily operations of Lixin Technology |
Ownership | 100% owned by Lixin Technology |
Tianjin Zhongzhengdaohe Investment Co., Ltd. (“TJ Zhongzheng”) [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Name | Tianjin Zhongzhengdaohe Investment Co., Ltd. (“TJ Zhongzheng”) |
Background | ● A PRC limited liability company and deemed a wholly foreign owned enterprise (“WFOE”) ● Incorporated on March 4, 2021 ● A holding company |
Ownership | 100% owned by WiMi Cayman |
Shenzhen Hedaozhongshu Technology Co., Ltd. (“Shenzhen Hedao”) [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Name | Shenzhen Hedaozhongshu Technology Co., Ltd. (“Shenzhen Hedao”) |
Background | ● A PRC limited liability company ● Incorporated on May 21, 2021 ● Plan to engage AR advertising services |
Ownership | 100% owned by TJ Zhongzheng |
Kashi Daohezhongzheng Internet Technology Co., Ltd. (“Kashi Daohe”) [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Name | Kashi Daohezhongzheng Internet Technology Co., Ltd. (“Kashi Daohe”) |
Background | ● A PRC limited liability company ● Incorporated on May 26, 2021 ● Plan to engage AR advertising services |
Ownership | 100% owned by Shenzhen Hedao Dissolved on June 2, 2023 |
MicroAlgo Inc. (“MicroAlgo”) [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Name | MicroAlgo Inc. (“MicroAlgo”) |
Background | ● A Cayman company ● Incorporated on May 14, 2018 ● A holding company |
Ownership | 56% owned by Wimi Cayman |
VIYI Algorithm Inc. (“VIYI”), previously known as VIYI Technology Inc. [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Name | VIYI Algorithm Inc. (“VIYI”), previously known as VIYI Technology Inc. |
Background | ● A Cayman company ● Incorporated on September 24, 2020 ● Primarily engages in the development of central processing algorithm and cloud computing services |
Ownership | 86.5% owned by WiMi Cayman before March 26, 2021; 73% owned by WiMi Cayman after March 26, 2021; 100% owned by MicroAlgo after December 9, 2022 |
Fe-da Electronics Company Private Limited (“Fe-da Electronics”) [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Name | Fe-da Electronics Company Private Limited (“Fe-da Electronics”) |
Background | ● A Singapore company ● Incorporated on January 9, 2009 ● Primarily engages in customization of central processing units |
Ownership | 100% owned by VIYI Acquired in September 2020 Disposed in April 2023 |
Wisdom Lab Inc. (“Wisdom Lab”) [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Name | Wisdom Lab Inc. (“Wisdom Lab”) |
Background | ● A Cayman Islands company ● Incorporated on May 6, 2021 ● Engages in software solution for intelligent chips |
Ownership | 100% owned by Fe-Da Electronics Disposed in April 2023 |
Excel Crest Limited (“Excel Crest”) [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Name | Excel Crest Limited (“Excel Crest”) |
Background | ● A Hong Kong company ● Incorporated on September 10, 2020 ● Support the daily operations of Fe-da Electronics in Hong Kong |
Ownership | 100% owned by Fe-da Electronics Disposed in April 2023 |
VIYI Technology Ltd. (“VIYI Ltd”) [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Name | VIYI Technology Ltd. (“VIYI Ltd”) |
Background | ● A Hong Kong company ● Incorporated on October 9, 2020 ● A holding company |
Ownership | 100% owned by VIYI |
Shenzhen Weiyixin Technology Co., Ltd. (“Shenzhen Weiyixin”) [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Name | Shenzhen Weiyixin Technology Co., Ltd. (“Shenzhen Weiyixin”) |
Background | ● A PRC limited liability company and deemed a wholly foreign owned enterprise (“WFOE”) ● Incorporated on November 18, 2020 ● A holding company |
Ownership | 100% owned by VIYI Ltd |
Shanghai Weimu Technology Co., Ltd. (“Shanghai Weimu”) [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Name | Shanghai Weimu Technology Co., Ltd. (“Shanghai Weimu”) |
Background | ● A PRC limited liability company ● Incorporated on November 30, 2020 ● Engages in providing software support services |
Ownership | 58% owned by Shenzhen Weiyixin |
Weidong Technology Co., Ltd. (“Weidong”) [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Name | Weidong Technology Co., Ltd. (“Weidong”) |
Background | ● A PRC limited liability company ● Incorporated on October 28, 2020 ● Primarily engages in AR advertising services |
Ownership | 100% owned by Shenzhen Yitian before January 11, 2021; 100% owned by Shenzhen Weiyixin after January 11, 2021 |
Shanghai Guoyu Information Technology Co., Ltd. (“Shanghai Guoyu”) [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Name | Shanghai Guoyu Information Technology Co., Ltd. (“Shanghai Guoyu”) |
Background | ● A PRC limited liability company ● Incorporated on March 18, 2019 ● Engages in R&D and application of intelligent visual algorithm technology |
Ownership | 99% owned by Weidong, 1% owned by SZ Weidong |
Korgas Weidong Technology Co., Ltd. (“Korgas Weidong”) [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Name | Korgas Weidong Technology Co., Ltd. (“Korgas Weidong”) |
Background | ● A PRC limited liability company ● Incorporated on October 30, 2020 ● Primarily engages in AR advertising services |
Ownership | 100% owned by Weidong before July 14, 2021; 100% owned by Shanghai Guoyu after July 14, 2021 |
Korgas 233 Technology Co., Ltd. (“Korgas 233”) [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Name | Korgas 233 Technology Co., Ltd. (“Korgas 233”) |
Background | ● A PRC limited liability company ● Incorporated on September 15, 2017 ● Primarily engages in central processing algorithm in mobile games industry |
Ownership | 100% owned by Shenzhen Yitian before January 11, 2021; 100% owned by YY Online after January 11, 2021; Dissolved in October 2023; |
Shenzhen Yiyou Online Technology Co., Ltd. (“YY Online”) [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Name | Shenzhen Yiyou Online Technology Co., Ltd. (“YY Online”) |
Background | ● A PRC limited liability company ● Incorporated on January 14, 2019 ● Primarily engages in AR advertising services |
Ownership | 100% owned by Weidong |
Shenzhen Yitian Internet Technology Co., Ltd. (“Shenzhen Yitian”) [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Name | Shenzhen Yitian Internet Technology Co., Ltd. (“Shenzhen Yitian”) |
Background | ● A PRC limited liability company ● Incorporated on March 08, 2011 ● Primarily engages in mobile games development |
Ownership | 100% owned by Beijing WiMi before December 24, 2020; VIE of Shenzhen Weiyixin starting on December 24, 2020; 100% owned by Shenzhen Weiyixin starting April 1, 2022 |
Shenzhen Qianhai Wangxin Technology Co., Ltd. (“Shenzhen Qianhai”) [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Name | Shenzhen Qianhai Wangxin Technology Co., Ltd. (“Shenzhen Qianhai”) |
Background | ● A PRC limited liability company ● Incorporated on October 16, 2015 ● Primarily engages in AR advertising services |
Ownership | 100% owned by Shenzhen Yitian |
CDDI Capital Ltd (“CDDI”) [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Name | CDDI Capital Ltd (“CDDI”) |
Background | ● A British Virgin Islands Company ● Incorporated on June 5, 2023 |
Ownership | 100% owned by VIYI Technology Limited |
VIWO AI Technology Inc. (“VIWO Cayman”) [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Name | VIWO AI Technology Inc. (“VIWO Cayman”) |
Background | ● Incorporated on June 5, 2023, under the laws of the Cayman Islands ● A holding company |
Ownership | 55% owned by CDDI Capital Ltd |
Viwo Technology Limited. (“Viwo Tech”) [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Name | Viwo Technology Limited. (“Viwo Tech”) |
Background | ● A Hong Kong company ● Incorporated on April 15, 2021 ● Engages in intelligent chips design |
Ownership | 100% owned by VIWO Cayman |
Shenzhen Viwotong Technology Co., Ltd. (“Viwotong Tech”) [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Name | Shenzhen Viwotong Technology Co., Ltd. (“Viwotong Tech”) |
Background | ● A PRC limited liability company ● Incorporated on July 19, 2021 ● No operations as of December 31, 2022 |
Ownership | 100% owned by Viwo Tech |
Guangzhou Tapuyu Internet Technology Co., Ltd. (“Tapuyu”) [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Name | Guangzhou Tapuyu Internet Technology Co., Ltd. (“Tapuyu”) |
Background | ● A PRC limited liability company ● Incorporated on June 22, 2021 ● Engages in E-commerce services and application of intelligent visual algorithm technology |
Ownership | 100% owned by Viwotong Tech |
Beijing Younike Information Technology Co., Ltd. (“Younike”) [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Name | Beijing Younike Information Technology Co., Ltd. (“Younike”) |
Background | ● A PRC limited liability company ● Incorporated on July 22, 2022 ● Engages in central processing algorithm in advertising industry |
Ownership | 100% owned by Viwotong Tech |
Shenzhen Weidong Technology Co., Ltd. (“SZ Weidong”) [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Name | Shenzhen Weidong Technology Co., Ltd. (“SZ Weidong”) |
Background | ● A PRC limited liability company ● Incorporated on March 27, 2023 ● Primarily engages in central processing algorithm in advertising industry |
Ownership | 100% owned by Weidong |
VIWO Technology (HK) Limited (VIWO HK) [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Name | VIWO Technology (HK) Limited (VIWO HK) |
Background | ● A Hong Kong company ● Incorporated on December 20,2023 ● A holding company |
Ownership | 100% owned by VIWO Cayman |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) | 1 Months Ended | 12 Months Ended | ||||||
Jul. 31, 2020 USD ($) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | May 25, 2022 | |
Summary of Significant Accounting Policies [Line Items] | ||||||||
Accumulated other comprehensive income (loss) | ¥ 59,475,542 | ¥ (7,566,569) | $ 8,397,298 | |||||
Convenience translation, description | Translations of balances in the consolidated balance sheets, consolidated statements of income and consolidated statements of cash flows from RMB into USD as of and for the year ended December 31, 2023 are solely for the convenience of the reader and were calculated at the rate of USD 1.00 to USD 7.0827, representing the mid-point reference rate set by Peoples’ Bank of China on December 29, 2023, the last business day for the year ended December 31, 2023 | Translations of balances in the consolidated balance sheets, consolidated statements of income and consolidated statements of cash flows from RMB into USD as of and for the year ended December 31, 2023 are solely for the convenience of the reader and were calculated at the rate of USD 1.00 to USD 7.0827, representing the mid-point reference rate set by Peoples’ Bank of China on December 29, 2023, the last business day for the year ended December 31, 2023 | ||||||
Net received (in Dollars) | $ 2,006,000 | |||||||
Escrow deposit (in Dollars) | $ 1,000,000 | |||||||
Accounts receivable | ¥ 27,735,262 | 117,080,588 | 3,915,917 | |||||
Inventory | ¥ 8,100,000 | |||||||
Third party | 3.85% | |||||||
Loans receivable (in Dollars) | ||||||||
Other receivable | ¥ 3,229,486 | 1,180 | $ 455,968 | |||||
Residual value percentage | 5% | 5% | ||||||
Impairment loss | ¥ 144,863,324 | $ 20,453,122 | ||||||
Estimated useful lives description | The Company typically amortizes its intangible assets with definite useful lives on a straight-line basis over the shorter of the contractual terms or the estimated useful lives of five to ten years. | The Company typically amortizes its intangible assets with definite useful lives on a straight-line basis over the shorter of the contractual terms or the estimated useful lives of five to ten years. | ||||||
Impairment of long-lived assets | ¥ 5,499,260 | $ 776,436 | 13,713,235 | ¥ 4,308,822 | ||||
Advertising costs | ¥ 126,751 | $ 17,896 | 47,170 | 1,800 | ||||
VAT Percentage | 6% | 6% | ||||||
Recognized tax benefit | 50% | 50% | ||||||
Total expenses for plans | ¥ 2,046,371 | ¥ 2,939,923 | ¥ 2,683,929 | $ 288,925 | ||||
Statutory rate | 25% | 25% | 25% | 25% | ||||
Aggregate rate | 50% | 50% | ||||||
Registeered capital rate | 50% | 50% | ||||||
Minimum [Member] | ||||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||
Bear interest percentage | 0% | 0% | ||||||
Investments | 20% | 20% | ||||||
Maximum [Member] | ||||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||
Bear interest percentage | 3.85% | 3.85% | ||||||
Investments | 50% | 50% | ||||||
CHINA | ||||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||
VAT Percentage | 13% | 13% | ||||||
Statutory rate | 10% | 10% | ||||||
Singapore [Member] | ||||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||
GST rate | 7% | 7% | ||||||
Statutory rate | 17% | 17% | ||||||
Other Comprehensive Income (Loss) [Member] | ||||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||
Accumulated other comprehensive income (loss) | ¥ 59,429,283 | ¥ 7,373,437 | $ 8,390,767 | |||||
VIYI [Member] | ||||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||
Equity interest rate | 45% | 45% | ||||||
Noncontrolling interests [Member] | ||||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||
Equity interest rate | 47% | 47% | 47% | 47% | ||||
ICinit [Member] | ||||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||
Equity interest rate | 34.10% | 34.10% | 19% | |||||
VIDA [Member] | ||||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||
Equity interest rate | 45% | 45% | ||||||
RMB [Member] | ||||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||
Average translation rates | 1 | |||||||
RMB [Member] | VIYI [Member] | ||||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||
Translation rate | 1 | 1 | ||||||
HKD [Member] | VIYI [Member] | ||||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||
Translation rate | 1.1035 | 1.1035 | ||||||
USD [Member] | ||||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||
Average translation rates | 0.1419 | 0.1487 | 0.155 | 0.1419 | 0.1487 | |||
Investments [Member] | ||||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||
Voting interest percentage | 20% | 20% | ||||||
WiMi Cayman [Member] | RMB [Member] | ||||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||
Translation rate | 1 | 1 | ||||||
Average translation rates | 1 | |||||||
WiMi Cayman [Member] | HKD [Member] | ||||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||
Average translation rates | 1.2048 | 1.2048 | ||||||
Skystar [Member] | HKD [Member] | ||||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||
Average translation rates | 1.1643 | 1.1643 | ||||||
Skystar [Member] | USD [Member] | ||||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||
Translation rate | 0.1412 | 0.1412 | ||||||
Fe-da Electronics [Member] | HKD [Member] | ||||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||
Average translation rates | 1.109 | 1.109 | ||||||
Fe-da Electronics [Member] | USD [Member] | ||||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||
Translation rate | 0.1436 | 0.1436 | ||||||
ICinit [Member] | VIYI [Member] | ||||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||
Equity interest rate | 44% | 44% | ||||||
VIYI [Member] | HKD [Member] | ||||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||
Translation rate | 1.1194 | 1.1194 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of Estimated Useful Lives | 12 Months Ended |
Dec. 31, 2023 | |
Office equipment [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 3 years |
Office furniture and fixtures [Member] | Minimum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 3 years |
Office furniture and fixtures [Member] | Maximum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 5 years |
Vehicles [Member] | Minimum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 3 years |
Vehicles [Member] | Maximum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 5 years |
Building [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 20 years |
Leasehold improvements [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | lesser of lease term or expected useful life |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details) - Schedule of Disaggregate Revenue Streams | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Disaggregation of Revenue [Line Items] | ||||
Total revenues | ¥ 585,365,937 | $ 82,647,287 | ¥ 682,292,979 | ¥ 933,791,519 |
Online AR advertising services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 571,842,123 | 80,737,872 | 480,322,821 | 436,475,875 |
Mobile games [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 732,505 | 103,422 | 1,356,556 | 13,498,964 |
Sales of semiconductor products [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 12,791,309 | 1,805,993 | 200,613,602 | 448,958,274 |
Software Development [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | ¥ 34,858,406 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details) - Schedule of Revenue by Timing of Transfer of Goods or Services | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Revenue from External Customer [Line Items] | ||||
Total revenues | ¥ 585,365,937 | $ 82,647,287 | ¥ 682,292,979 | ¥ 933,791,519 |
Goods and services transferred at a point in time [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 585,365,937 | 82,647,287 | 682,292,979 | 898,933,113 |
Services transferred over time [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | ¥ 34,858,406 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Details) - Schedule of Revenue by Geographic Locations | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Summary of Significant Accounting Policies (Details) - Schedule of Revenue by Geographic Locations [Line Items] | ||||
Total revenues | ¥ 585,365,937 | $ 82,647,287 | ¥ 682,292,979 | ¥ 933,791,519 |
Mainland PRC revenues [Member] | ||||
Summary of Significant Accounting Policies (Details) - Schedule of Revenue by Geographic Locations [Line Items] | ||||
Total revenues | 542,958,194 | 76,659,777 | 483,328,411 | 593,803,869 |
Hong Kong revenues [Member] | ||||
Summary of Significant Accounting Policies (Details) - Schedule of Revenue by Geographic Locations [Line Items] | ||||
Total revenues | 32,297,915 | 4,560,113 | 61,882,662 | 118,590,946 |
International revenues [Member] | ||||
Summary of Significant Accounting Policies (Details) - Schedule of Revenue by Geographic Locations [Line Items] | ||||
Total revenues | ¥ 10,109,828 | $ 1,427,397 | ¥ 137,081,906 | ¥ 221,396,704 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies (Details) - Schedule of Noncontrolling Interests | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Redeemable Noncontrolling Interest [Line Items] | |||
Total noncontrolling interests | ¥ 8,568,730 | $ 1,209,811 | ¥ 97,898,474 |
Noncontrolling interests subscriptions receivable | (172,528) | ||
VIDA [Member] | |||
Redeemable Noncontrolling Interest [Line Items] | |||
Total noncontrolling interests | (39,704,812) | (5,605,887) | (65,276,176) |
ICinit [Member] | |||
Redeemable Noncontrolling Interest [Line Items] | |||
Total noncontrolling interests | (141,931) | (20,039) | 4,293,087 |
VIYI [Member] | |||
Redeemable Noncontrolling Interest [Line Items] | |||
Total noncontrolling interests | ¥ 48,415,473 | $ 6,835,737 | ¥ 159,054,091 |
Variable Interest Entity (_VI_3
Variable Interest Entity (“VIE”) (Details) | Apr. 01, 2022 |
Shenzhen Yitian [Member] | |
Variable Interest Entity (“VIE”) (Details) [Line Items] | |
Equity interest | 100% |
Variable Interest Entity (_VI_4
Variable Interest Entity (“VIE”) (Details) - Schedule of Condensed Balance Sheet - Variable Interest Entity, Primary Beneficiary [Member] | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | |
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Current assets | ¥ 48,490,650 | $ 6,846,351 | ¥ 13,264,579 | |
Property and equipment, net | 91,369,608 | 12,900,392 | 23,132,180 | |
Other noncurrent assets | 265,926,480 | 37,545,919 | 630,494,750 | |
Total assets | 405,786,738 | 57,292,662 | 666,891,509 | |
Total liabilities | (609,000,686) | (85,984,255) | (585,116,575) | |
Net assets | (203,213,948) | (28,691,593) | (81,771,934) | |
Current liabilities: | ||||
Accounts payable | 9,219,643 | 1,301,713 | 11,043,034 | |
Deferred revenues | 14,402 | |||
Other payables and accrued liabilities | 16,422,802 | 2,318,721 | 16,654,682 | |
Current portion of shareholder loans | 42,421,345 | |||
Taxes payable | 6,901,910 | 974,474 | 4,913,881 | |
Third-party loan | 186,932,179 | 49,914,977 | ||
Intercompany payable | [1] | 353,532,807 | 26,392,785 | 510,069,231 |
Total current liabilities | 573,009,341 | 80,902,670 | 585,116,575 | |
Non-current shareholder loan | 35,991,345 | 5,081,585 | ||
Total liabilities | ¥ 609,000,686 | $ 85,984,255 | ¥ 585,116,575 | |
[1]Intercompany balances will be eliminated upon consolidation. |
Variable Interest Entity (_VI_5
Variable Interest Entity (“VIE”) (Details) - Schedule of Condensed Income Statement - Variable Interest Entity, Primary Beneficiary [Member] | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Condensed Income Statements, Captions [Line Items] | ||||
Operating revenues | ¥ 2,779,482 | $ 392,433 | ¥ 32,112,603 | ¥ 202,340,230 |
Gross profit | (210,922) | (29,780) | 14,442,464 | 30,883,606 |
Income (loss) from operations | (285,922,484) | (40,369,137) | 589,775 | (25,262,236) |
Net income (loss) | ¥ (286,436,377) | $ (40,441,693) | ¥ 5,700,402 | ¥ (159,401,372) |
Variable Interest Entity (_VI_6
Variable Interest Entity (“VIE”) (Details) - Schedule of Condensed Cash Flow Statement - Variable Interest Entity, Primary Beneficiary [Member] | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net cash provided by operating activities | ¥ (117,520,675) | $ (16,592,638) | ¥ 29,324,687 | ¥ 44,560,277 |
Net cash (used in) provided by investing activities | (67,043,921) | (9,465,870) | 5,043,123 | (49,269,310) |
Net cash (used in) provided by financing activities | 180,502,179 | 25,484,939 | (84,715,145) | 2,929,456 |
Effect of exchange rate on cash and cash equivalents | 90,793 | (1,720) | 11,795 | (1,061,729) |
Net increase/(decrease) in cash and cash equivalents | (3,971,624) | (575,289) | (50,335,540) | (2,841,306) |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of year | 6,072,875 | 871,963 | 56,408,415 | 59,249,721 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of year | ¥ 2,101,251 | $ 296,674 | ¥ 6,072,875 | ¥ 56,408,415 |
Variable Interest Entity (_VI_7
Variable Interest Entity (“VIE”) (Details) - Schedule of Cash, Cash Equivalents and Restricted Cash - Variable Interest Entity, Primary Beneficiary [Member] | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) |
Variable Interest Entity (“VIE”) (Details) - Schedule of Cash, Cash Equivalents and Restricted Cash [Line Items] | ||||
Cash and cash equivalents | ¥ 2,101,250 | $ 296,674 | ¥ 6,072,875 | ¥ 55,965,855 |
Restricted cash | 442,560 | |||
Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows | ¥ 2,101,250 | $ 296,674 | ¥ 6,072,875 | ¥ 56,408,415 |
Business Combination (Details)
Business Combination (Details) | 12 Months Ended | |||||||||||||||||||
Jan. 01, 2023 CNY (¥) | Jan. 01, 2023 USD ($) | Dec. 23, 2022 ¥ / shares | Sep. 23, 2022 $ / shares | Sep. 23, 2022 ¥ / shares | May 28, 2021 CNY (¥) | May 28, 2021 USD ($) | Mar. 01, 2021 CNY (¥) | Mar. 01, 2021 USD ($) | Jan. 22, 2021 CNY (¥) | Jan. 22, 2021 USD ($) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Jul. 01, 2022 CNY (¥) | Jul. 01, 2022 USD ($) | Jul. 01, 2021 | Mar. 31, 2021 | |
Business Combination (Details) [Line Items] | ||||||||||||||||||||
Revenue | ¥ 585,365,937 | $ 82,647,287 | ¥ 682,292,979 | ¥ 933,791,519 | ||||||||||||||||
Net loss | (421,190,362) | (59,467,484) | (357,731,093) | (235,973,179) | ||||||||||||||||
Loss from disposal | ¥ 1,100,000 | $ 200,000 | 1,100,000 | 200,000 | ||||||||||||||||
Electronic components | ¥ 2 | $ 0.3 | ||||||||||||||||||
Fair value | ¥ 9,000,000 | $ 1,400,000 | ||||||||||||||||||
Estimated finite useful life | 6 years | 6 years | ||||||||||||||||||
Gain from disposal | ¥ 66,000 | $ 9,000 | ||||||||||||||||||
Shenzhen Yichong [Member] | USD [Member] | ||||||||||||||||||||
Business Combination (Details) [Line Items] | ||||||||||||||||||||
Exchange rate | 1 | 1 | ||||||||||||||||||
Shenzhen Yichong [Member] | RMB [Member] | ||||||||||||||||||||
Business Combination (Details) [Line Items] | ||||||||||||||||||||
Exchange rate | 6.4617 | 6.4617 | ||||||||||||||||||
Shanghai Guoyu [Member] | ||||||||||||||||||||
Business Combination (Details) [Line Items] | ||||||||||||||||||||
Description of acquisitions | On July 1, 2021, Weidong acquired 99% interest of Shanghai Guoyu Information Technologies Co., Ltd (“Shanghai Guoyu”). The remaining 1% of Shanghai Guoyu is acquired by YY Online. The aggregate purchase price is RMB 20,000,000. On July 19, 2021 Shanghai Guoyu established 100% owned subsidiary Kashi Guoyu Information Technologies Co., Ltd (“Kashi Guoyu”). On July 14, 2021, Weidong transferred its 100% equity interest of Horgas 233 and Horgas Weidong to Shanghai Guoyu. | On July 1, 2021, Weidong acquired 99% interest of Shanghai Guoyu Information Technologies Co., Ltd (“Shanghai Guoyu”). The remaining 1% of Shanghai Guoyu is acquired by YY Online. The aggregate purchase price is RMB 20,000,000. On July 19, 2021 Shanghai Guoyu established 100% owned subsidiary Kashi Guoyu Information Technologies Co., Ltd (“Kashi Guoyu”). On July 14, 2021, Weidong transferred its 100% equity interest of Horgas 233 and Horgas Weidong to Shanghai Guoyu. | ||||||||||||||||||
Shanghai Guoyu [Member] | USD [Member] | ||||||||||||||||||||
Business Combination (Details) [Line Items] | ||||||||||||||||||||
Exchange rate | 1 | |||||||||||||||||||
Shanghai Guoyu [Member] | RMB [Member] | ||||||||||||||||||||
Business Combination (Details) [Line Items] | ||||||||||||||||||||
Exchange rate | 6.4709 | |||||||||||||||||||
Tapuyu and Pengcheng Keyi [Member] | ||||||||||||||||||||
Business Combination (Details) [Line Items] | ||||||||||||||||||||
Description of acquisitions | On November 17, 2021, Viwotong Tech entered into Acquisition Framework Agreement to acquire 100% equity interests of Guangzhou Tapuyu Internet Technology Co., Ltd. (“Tapuyu”), a provider of E-commerce services and application of intelligent visual algorithm technology. The aggregate purchase price is RMB 2 (USD 0.3) and the transaction consummated on November 19, 2021. On November 17, 2021, Viwotong Tech entered into Acquisition Framework Agreement to acquire 100% equity interests of Pengcheng Keyi (Xi’an) Intelligence Technology Co., Ltd. (“Pengcheng Keyi”), a provider of testing equipment development and sales. The aggregate purchase price is RMB 2 (USD 0.3) and the purchase consummated on December 7, 2021. | On November 17, 2021, Viwotong Tech entered into Acquisition Framework Agreement to acquire 100% equity interests of Guangzhou Tapuyu Internet Technology Co., Ltd. (“Tapuyu”), a provider of E-commerce services and application of intelligent visual algorithm technology. The aggregate purchase price is RMB 2 (USD 0.3) and the transaction consummated on November 19, 2021. On November 17, 2021, Viwotong Tech entered into Acquisition Framework Agreement to acquire 100% equity interests of Pengcheng Keyi (Xi’an) Intelligence Technology Co., Ltd. (“Pengcheng Keyi”), a provider of testing equipment development and sales. The aggregate purchase price is RMB 2 (USD 0.3) and the purchase consummated on December 7, 2021. | ||||||||||||||||||
Younike [Member] | ||||||||||||||||||||
Business Combination (Details) [Line Items] | ||||||||||||||||||||
Equity interests percentage | 100% | |||||||||||||||||||
Aggregate purchase price | ¥ / shares | ¥ 0 | |||||||||||||||||||
Net purchase price allocation description | The following table summarizes the fair value of the identifiable assets acquired and liabilities assumed on the acquisition date, which represents the net purchase price allocation on the date of the acquisition of Younike and translated the fair value from USD to RMB using the exchange rate on January 1, 2023 at the rate of USD 1.00 to RMB 6.9646. | The following table summarizes the fair value of the identifiable assets acquired and liabilities assumed on the acquisition date, which represents the net purchase price allocation on the date of the acquisition of Younike and translated the fair value from USD to RMB using the exchange rate on January 1, 2023 at the rate of USD 1.00 to RMB 6.9646. | ||||||||||||||||||
Bimai [Member] | ||||||||||||||||||||
Business Combination (Details) [Line Items] | ||||||||||||||||||||
Equity interests percentage | 100% | 100% | ||||||||||||||||||
Aggregate purchase price | (per share) | $ 0.3 | ¥ 2 | ||||||||||||||||||
Net purchase price allocation description | The following table summarizes the fair value of the identifiable assets acquired and liabilities assumed on the acquisition date, which represents the net purchase price allocation on the date of the acquisition of Bimai and translated the fair value from USD to RMB using the exchange rate on September 23, 2022 at the rate of USD 1.00 to RMB 6.9920 and the net purchase price allocation on the date of the acquisition. | The following table summarizes the fair value of the identifiable assets acquired and liabilities assumed on the acquisition date, which represents the net purchase price allocation on the date of the acquisition of Bimai and translated the fair value from USD to RMB using the exchange rate on September 23, 2022 at the rate of USD 1.00 to RMB 6.9920 and the net purchase price allocation on the date of the acquisition. | ||||||||||||||||||
Revenue | 4,600,000 | $ 700,000 | ||||||||||||||||||
Net loss | ¥ 600,000 | $ 100,000 | ||||||||||||||||||
Share capital issued percentage | 100% | 100% | ||||||||||||||||||
Issued share capital (in Yuan Renminbi) | ¥ 0 | |||||||||||||||||||
Shenzhen Yichong Micro-Electronic Technology Co., Ltd [Member] | ||||||||||||||||||||
Business Combination (Details) [Line Items] | ||||||||||||||||||||
Equity interests percentage | 100% | 100% | ||||||||||||||||||
Shenzhen Yichong Micro-Electronic Technology Co., Ltd [Member] | Shenzhen Saineng [Member] | ||||||||||||||||||||
Business Combination (Details) [Line Items] | ||||||||||||||||||||
Subsidiary ownership percentage | 80% | 80% | ||||||||||||||||||
Shenzheng Shengtang [Member] | ||||||||||||||||||||
Business Combination (Details) [Line Items] | ||||||||||||||||||||
Equity interests percentage | 100% | 100% | ||||||||||||||||||
Electronic components | ¥ 2 | $ 0.3 | ||||||||||||||||||
Shenzheng Shengtang [Member] | USD [Member] | ||||||||||||||||||||
Business Combination (Details) [Line Items] | ||||||||||||||||||||
Exchange rate | 1 | |||||||||||||||||||
Shenzheng Shengtang [Member] | RMB [Member] | ||||||||||||||||||||
Business Combination (Details) [Line Items] | ||||||||||||||||||||
Exchange rate | 6.4754 | |||||||||||||||||||
Shenzhen Yaodi [Member] | ||||||||||||||||||||
Business Combination (Details) [Line Items] | ||||||||||||||||||||
Equity interests percentage | 100% | 100% | ||||||||||||||||||
Electronic components | ¥ 2 | $ 0.3 | ||||||||||||||||||
Shenzhen Yaodi [Member] | USD [Member] | ||||||||||||||||||||
Business Combination (Details) [Line Items] | ||||||||||||||||||||
Exchange rate | 1 | 1 | ||||||||||||||||||
Shenzhen Yaodi [Member] | RMB [Member] | ||||||||||||||||||||
Business Combination (Details) [Line Items] | ||||||||||||||||||||
Exchange rate | 6.3858 | 6.3858 | ||||||||||||||||||
Shenzhen [Member] | ||||||||||||||||||||
Business Combination (Details) [Line Items] | ||||||||||||||||||||
Revenue | 103,201,670 | |||||||||||||||||||
Net loss | ¥ 783,032 | |||||||||||||||||||
Tapuyu and Pengcheng Keyi [Member] | ||||||||||||||||||||
Business Combination (Details) [Line Items] | ||||||||||||||||||||
Net purchase price allocation description | the net purchase price allocation on the date of the acquisition of Tapuyu and translated the fair value from USD to RMB using the exchange rate on November 19, 2021 at the rate of USD 1.00 to RMB 6.3825 and the net purchase price allocation on the date of the acquisition of Pengcheng Keyi and translated the fair value from USD to RMB using the exchange rate on December 7, 2021 at the rate of USD 1.00 to RMB 6.3738. | the net purchase price allocation on the date of the acquisition of Tapuyu and translated the fair value from USD to RMB using the exchange rate on November 19, 2021 at the rate of USD 1.00 to RMB 6.3825 and the net purchase price allocation on the date of the acquisition of Pengcheng Keyi and translated the fair value from USD to RMB using the exchange rate on December 7, 2021 at the rate of USD 1.00 to RMB 6.3738. | ||||||||||||||||||
Description of acquisitions | On July 1, 2022, Viwotong Tech entered into an equity transfer agreement to transfer 99.0% and 1.0% of the issued share capital of Pengcheng Keyi to two unrelated individuals at RMB 1.0 and RMB 0.1, respectively. | On July 1, 2022, Viwotong Tech entered into an equity transfer agreement to transfer 99.0% and 1.0% of the issued share capital of Pengcheng Keyi to two unrelated individuals at RMB 1.0 and RMB 0.1, respectively. |
Business Combination (Details)
Business Combination (Details) - Schedule of Fair Value of the Identifiable Assets Acquired and Liabilities Assumed | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Business Combination (Details) - Schedule of Fair Value of the Identifiable Assets Acquired and Liabilities Assumed [Line Items] | |||
Goodwill | ¥ 243,334,346 | ||
Total consideration | |||
Younike [Member] | |||
Business Combination (Details) - Schedule of Fair Value of the Identifiable Assets Acquired and Liabilities Assumed [Line Items] | |||
Cash | 21,936 | 3,149 | |
Other current assets | 4,821,002 | 692,215 | |
Current liabilities | (4,842,938) | (695,364) | |
Bimai [Member] | |||
Business Combination (Details) - Schedule of Fair Value of the Identifiable Assets Acquired and Liabilities Assumed [Line Items] | |||
Cash | 2,035 | 291 | |
Other current assets | 2,213,241 | 316,539 | |
Current liabilities | (2,215,276) | (316,830) | |
Shenzhen Yichong, Shenzhen Shengtang and Shenzhen Yaodi [Member] | |||
Business Combination (Details) - Schedule of Fair Value of the Identifiable Assets Acquired and Liabilities Assumed [Line Items] | |||
Cash | 7,252,052 | 1,122,073 | |
Other current assets | 14,478,000 | 2,238,141 | |
Plant and equipment | 987,482 | 152,736 | |
Current liabilities | (16,936,210) | (2,619,871) | |
Net assets of acquirees | 5,781,324 | 893,079 | |
Gain on acquisition | (5,781,318) | (893,078) | |
Total consideration | 6 | 1 | |
Shanghai Guoyu [Member] | |||
Business Combination (Details) - Schedule of Fair Value of the Identifiable Assets Acquired and Liabilities Assumed [Line Items] | |||
Total consideration | 20,000,000 | 3,090,760 | |
Copyright | 8,955,000 | 1,383,888 | |
Goodwill | 13,283,750 | 2,052,844 | |
Deferred tax liabilities | (2,238,750) | (345,972) | |
Tapuyu and Pengcheng Keyi [Member] | |||
Business Combination (Details) - Schedule of Fair Value of the Identifiable Assets Acquired and Liabilities Assumed [Line Items] | |||
Cash | 161,638 | 25,335 | |
Other current assets | 1,701,734 | 266,815 | |
Current liabilities | ¥ (1,863,372) | $ (292,150) |
Deconsolidation (Details)
Deconsolidation (Details) | 3 Months Ended | 5 Months Ended | 12 Months Ended | ||||||||||||||||||
Apr. 06, 2023 CNY (¥) | Apr. 06, 2023 USD ($) | Jan. 01, 2023 CNY (¥) | Jan. 01, 2023 USD ($) | Jul. 01, 2022 CNY (¥) | Jul. 01, 2022 USD ($) | May 25, 2022 CNY (¥) | May 25, 2022 USD ($) | May 25, 2022 USD ($) | Oct. 01, 2021 CNY (¥) | Oct. 01, 2021 HKD ($) | Dec. 31, 2021 CNY (¥) | May 25, 2022 CNY (¥) | May 25, 2022 USD ($) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2023 USD ($) | Nov. 01, 2022 | May 25, 2022 HKD ($) | |
Deconsolidation (Details) [Line Items] | |||||||||||||||||||||
Noncontrolling interest percentage | 49% | 49% | |||||||||||||||||||
Related party receivable | ¥ 3,229,486 | ¥ 1,180 | $ 455,968 | ||||||||||||||||||
Issued share capital, amount | ¥ 0 | $ 391,186 | $ 391,186 | $ 391,186 | $ 3,050,000 | ||||||||||||||||
Cost method investments | ¥ 1,460,484 | 209,701 | |||||||||||||||||||
Recognized gain loss amount | ¥ 17,801,786 | $ 2,526,259 | ¥ 387,632 | $ 55,657 | |||||||||||||||||
Income | ¥ 1,826,318 | $ 262,229 | ¥ 8,952,752 | ¥ (901,526) | |||||||||||||||||
Disposal rate | 99% | 99% | |||||||||||||||||||
Unrelated individuals rate | ¥ 1 | ||||||||||||||||||||
Gain on disposal | ¥ 65,587 | $ 9,417 | |||||||||||||||||||
Equity interest amount | 8,887,165,000,000 | $ 1,276,049,000,000 | |||||||||||||||||||
loss from disposal | ¥ 1,100,000 | $ 200,000 | 1,100,000 | 200,000 | |||||||||||||||||
Recognized gain loss amount | ¥ 17,801,786 | $ 2,526,259 | |||||||||||||||||||
Shenzhen Kuxuanyou [Member] | |||||||||||||||||||||
Deconsolidation (Details) [Line Items] | |||||||||||||||||||||
Equity interest | 100% | ||||||||||||||||||||
Bimai [Member] | |||||||||||||||||||||
Deconsolidation (Details) [Line Items] | |||||||||||||||||||||
Equity interest | 100% | ||||||||||||||||||||
Fe-da Electronics [Member] | |||||||||||||||||||||
Deconsolidation (Details) [Line Items] | |||||||||||||||||||||
Equity interest | 100% | 100% | |||||||||||||||||||
ICinit [Member] | |||||||||||||||||||||
Deconsolidation (Details) [Line Items] | |||||||||||||||||||||
Equity interest | 19% | ||||||||||||||||||||
Pengcheng Keyi [Member] | |||||||||||||||||||||
Deconsolidation (Details) [Line Items] | |||||||||||||||||||||
Acquisition description | On July 1, 2022, Viwotong Tech entered into an equity transfer agreement to transfer 99.0% and 1.0% of the issued share capital of Pengcheng Keyi to two unrelated individuals at RMB 1.0 and RMB 0.1, respectively. The disposal resulted in a gain from disposal of RMB 65,587 (USD 9,417). | On July 1, 2022, Viwotong Tech entered into an equity transfer agreement to transfer 99.0% and 1.0% of the issued share capital of Pengcheng Keyi to two unrelated individuals at RMB 1.0 and RMB 0.1, respectively. The disposal resulted in a gain from disposal of RMB 65,587 (USD 9,417). | |||||||||||||||||||
Disposal rate | 1% | 1% | |||||||||||||||||||
Unrelated individuals rate | ¥ 0.1 | ||||||||||||||||||||
ICinit [Member] | |||||||||||||||||||||
Deconsolidation (Details) [Line Items] | |||||||||||||||||||||
Issued share capital percentage | 30% | 2% | 2% | ||||||||||||||||||
Consideration amount | ¥ 41,000,000,000 | $ 50,000 | |||||||||||||||||||
Retained interest amounted | ¥ 410,337 | ||||||||||||||||||||
Income | ¥ 721,439 | ||||||||||||||||||||
ICinit [Member] | Related Party [Member] | |||||||||||||||||||||
Deconsolidation (Details) [Line Items] | |||||||||||||||||||||
Related party receivable | ¥ 27,589,530 |
Deconsolidation (Details) - Sch
Deconsolidation (Details) - Schedule of Fair Value of the Operations - 12 months ended Dec. 31, 2023 | CNY (¥) | USD ($) |
Schedule of Fair Value of the Operations [Abstract] | ||
Consideration received | ¥ 40,975 | $ 6,427 |
Fair value of retained noncontrolling interest (49%) | 1,003,886 | 157,455 |
Carrying value of noncontrolling interest | 1,426,158 | 223,687 |
Consideration received total | 2,471,019 | 387,569 |
Less: ICinit’s book value | (3,361,955) | (527,308) |
Exchange rate difference | (10,590) | |
Loss on deconsolidation | ¥ (901,526) | $ (139,739) |
Deconsolidation (Details) - S_2
Deconsolidation (Details) - Schedule of Fair Value of the Operations (Parentheticals) | 12 Months Ended |
Dec. 31, 2023 | |
Schedule of Fair Value of the Operations [Abstract] | |
Fair value of noncontrolling interest | 49% |
Deconsolidation (Details) - S_3
Deconsolidation (Details) - Schedule of Net Assets - Disposal of Shenzhen Kuxuanyou and its subsidiaries [Member] | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Deconsolidation (Details) - Schedule of Net Assets [Line Items] | |||
Total current assets | ¥ 3,583,579 | $ 505,962 | ¥ 13,370,652 |
Total other assets | 115,270 | 16,275 | 25,022 |
Total assets | 3,698,849 | 522,237 | 13,395,674 |
Total current liabilities | 301,464 | 42,563 | 22,402,087 |
Total net assets | 3,397,385 | 479,674 | (9,006,413) |
Noncontrolling interests | 53,661 | ||
Total consideration | |||
Total gain loss on disposal | ¥ 17,801,786 | $ 2,526,259 | ¥ 8,952,752 |
Recapitalization (Details)
Recapitalization (Details) - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 09, 2022 | |
Recapitalization (Details) [Line Items] | |||
Ordinary shares issued | 176,300,513 | 153,300,513 | |
Converted ordinary shares | 482,500 | ||
MicroAlgo [Member] | |||
Recapitalization (Details) [Line Items] | |||
Outstanding equity interest percentage | 56% | 65.90% | |
Merger Agreement [Member] | |||
Recapitalization (Details) [Line Items] | |||
Shares issued | 39,603,961 | ||
MicroAlgo [Member] | |||
Recapitalization (Details) [Line Items] | |||
Ordinary shares issued | 43,856,706 | ||
Ordinary shares held, description | (i) the 3,963,745 ordinary shares held by previous Venus public shareholders and its Sponsor; (ii) the 39,603,961 newly issued Venus ordinary shares to the VIYI shareholders pursuant to the Merger Agreement, of which 792,079 ordinary shares issued to the Majority Shareholder will be held in escrow to satisfy any potential indemnification claims(s) which may be made by Venus under the Merger Agreement; (iii) the 214,000 newly issued Venus ordinary shares to the Joyous JD Limited as part of the backstop investment; and (iv) the 75,000 ordinary shares held by Venus’ underwriter. | ||
Warrants issued | 4,825,000 | ||
Warrants outstanding | 4,825,000 | ||
Public Investors [Member] | |||
Recapitalization (Details) [Line Items] | |||
Warrants | 4,600,000 | ||
Sponsor [Member] | |||
Recapitalization (Details) [Line Items] | |||
Shares issued | 1,375,000 | ||
Warrants | 225,000 |
Recapitalization (Details) - Sc
Recapitalization (Details) - Schedule of Common Shares Issued and Outstanding - shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 09, 2022 | |
Schedule of Capitalization [Line Items] | ||
Venus public shares after redemption | 2,106,245 | |
Venus shares converted from rights | 482,500 | |
Weighted average shares outstanding | 43,856,706 | |
Sponsor [Member] | ||
Schedule of Capitalization [Line Items] | ||
Venus shares issued | 1,375,000 | |
Underwriter [Member] | ||
Schedule of Capitalization [Line Items] | ||
Venus shares issued | 75,000 | |
Percent of shares owned | 0.17% | |
Venus [Member] | ||
Schedule of Capitalization [Line Items] | ||
Percent of shares owned | 9.04% | |
Venus [Member] | Business Combination [Member] | ||
Schedule of Capitalization [Line Items] | ||
Venus shares issued | 39,603,961 | |
Joyous JD Limited [Member] | ||
Schedule of Capitalization [Line Items] | ||
Venus shares issued | 214,000 | |
Percent of shares owned | 0.49% | |
VIYI shareholders [Member] | ||
Schedule of Capitalization [Line Items] | ||
Venus shares issued | 39,603,961 | |
Percent of shares owned | 90.30% |
Short Term Investments (Details
Short Term Investments (Details) ¥ in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Short Term Investments [Abstract] | ||||
Gain (loss) from sales of investments | ¥ 52.7 | $ 7.4 | ¥ (88.3) | ¥ 2.5 |
Short Term Investments (Detai_2
Short Term Investments (Details) - Short term investments consist of the following: | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Short Term Investments (Details) - Short term investments consist of the following: [Line Items] | |||
Marketable securities | ¥ 435,659,383 | $ 61,510,354 | ¥ 38,448,624 |
Level 1 [Member] | |||
Short Term Investments (Details) - Short term investments consist of the following: [Line Items] | |||
Marketable securities | ¥ 435,659,383 | ¥ 38,448,624 |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Details) - Schedule of Accounts Receivable, Net | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Schedule of Accounts Receivable, Net [Abstract] | |||
Accounts receivable | ¥ 51,457,258 | $ 7,265,204 | ¥ 137,427,191 |
Less: allowance for doubtful accounts | (27,735,262) | (3,915,917) | (117,080,588) |
Accounts receivable, net | ¥ 23,721,996 | $ 3,349,287 | ¥ 20,346,603 |
Accounts Receivable, Net (Det_2
Accounts Receivable, Net (Details) - Schedule of Changes in Allowance for Doubtful Accounts | 12 Months Ended | ||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | |
Schedule of Changes in Allowance for Doubtful Accounts [Abstract] | |||
Beginning balance | ¥ 117,080,588 | $ 16,810,813 | ¥ 111,639,312 |
Provision for credit losses, net of recovery | (80,857,764) | (11,416,234) | 4,743,475 |
Deconsolidation of ICinit and Shenzhen Kuxuanyou and subsidiaries | (7,932,721) | ||
Deconsolidation of Fe-da and subsidiaries | (8,487,562) | (1,198,351) | |
Exchange rate difference | (280,311) | 8,630,522 | |
Ending balance | ¥ 27,735,262 | $ 3,915,917 | ¥ 117,080,588 |
Inventories (Details)
Inventories (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |||
Inventory impairment | ¥ 8,116,218 |
Inventories (Details) - Schedul
Inventories (Details) - Schedule of Inventories | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Inventory [Line Items] | |||
Total inventories | ¥ 2,403,818 | ||
Holographic Accessories [Member] | |||
Inventory [Line Items] | |||
Total inventories | 1,494,770 | ||
Semiconductors [Member] | |||
Inventory [Line Items] | |||
Total inventories | ¥ 909,048 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Property and Equipment, Net (Details) [Line Items] | ||||
Depreciation expense | ¥ 1,513,067 | $ 213,629 | ¥ 1,663,412 | ¥ 1,124,655 |
Impairment loss | 5,499,260 | $ 776,436 | 13,713,235 | 4,308,822 |
Property, Plant and Equipment [Member] | ||||
Property and Equipment, Net (Details) [Line Items] | ||||
Impairment loss | ¥ 136,701 | ¥ 38,573 |
Property and Equipment, Net (_2
Property and Equipment, Net (Details) - Schedule of Property and Equipment, Net | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, subtotal | ¥ 97,051,679 | $ 13,702,638 | ¥ 28,597,502 |
Less: accumulated depreciation | (4,916,961) | (694,221) | (4,449,209) |
Total | 92,134,718 | 13,008,417 | 24,148,293 |
Office electronic equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, subtotal | 1,144,347 | 161,569 | 1,381,602 |
Office fixtures and furniture [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, subtotal | 174,652 | 24,659 | 35,533 |
Vehicles [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, subtotal | 1,201,452 | 169,632 | 1,201,452 |
Building [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, subtotal | 94,259,656 | 13,308,435 | 24,825,710 |
Leasehold improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, subtotal | ¥ 271,572 | $ 38,343 | ¥ 1,153,205 |
Cost Method Investments (Detail
Cost Method Investments (Details) | 12 Months Ended | |||||||
May 25, 2022 CNY (¥) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Jan. 01, 2023 CNY (¥) | Dec. 31, 2022 CNY (¥) | May 25, 2022 USD ($) | May 25, 2022 HKD ($) | Dec. 31, 2021 CNY (¥) | |
Cost Method Investments [Abstract] | ||||||||
Cost method investment | ¥ 1,460,484 | ¥ 55,462,670 | $ 209,701 | ¥ 600,000 | ||||
Impairment charges | ¥ 144,863,324 | $ 20,453,122 | ||||||
Issued share capital, percentage | 30% | |||||||
Issued share capital, amount | ¥ 0 | $ 391,186 | $ 3,050,000 | |||||
Interest rate | 19% | 19% | 19% |
Cost Method Investments (Deta_2
Cost Method Investments (Details) - Schedule of Cost Method Investments | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | May 25, 2022 CNY (¥) | May 25, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Schedule of Investments [Line Items] | ||||||
Total | ¥ 55,462,670 | ¥ 1,460,484 | $ 209,701 | ¥ 600,000 | ||
2.32% Investment [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Total | 1,114,030 | $ 157,289 | 1,460,484 | |||
9.0% Investment [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Total | 8,689,076 | 1,226,803 | 45,000,000 | |||
8.0% Investment [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Total | 1,100,000 | |||||
6.0% Investment [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Total | 600,000 | |||||
5.5% Investment [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Total | 600,000 | |||||
5.0% Investment [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Total | 542,654 | 76,617 | 13,600,000 | |||
4.5% Investment [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Total | 200,000 | |||||
4.0% Investment [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Total | 289,369 | 40,856 | 8,400,000 | |||
3.5% Investment [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Total | 342,948 | 48,421 | 1,200,000 | |||
3.0% Investment [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Total | 43,867 | 6,193 | 3,900,000 | |||
2.0% Investment [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Total | 25,022 | 3,533 | 1,200,000 | |||
1.0% Investment [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Total | 185,320 | 26,165 | 41,450,000 | |||
Total [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Total | 11,500,708 | 1,623,775 | 170,639,684 | |||
10%Investment | ||||||
Schedule of Investments [Line Items] | ||||||
Total | ¥ 268,422 | $ 37,898 | 38,000,000 | |||
1 company in the AR, VR and 3D animation areas [Member] | 2.55% Investment [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Total | ¥ 13,929,200 |
Cost Method Investments (Deta_3
Cost Method Investments (Details) - Schedule of Cost Method Investments (Parentheticals) | Dec. 31, 2023 |
1 company in the AR, VR and 3D animation areas [Member] | |
Schedule of Investments [Line Items] | |
Investment interest rate | 2.32% |
1 company [Member] | |
Schedule of Investments [Line Items] | |
Investment interest rate | 10% |
2 company in the AR and virtual reality (“VR”) areas [Member] | |
Schedule of Investments [Line Items] | |
Investment interest rate | 9% |
2 companies in the AR and VR areas [Member] | |
Schedule of Investments [Line Items] | |
Investment interest rate | 8% |
1 company in the AR, VR, software and robotic areas [Member] | |
Schedule of Investments [Line Items] | |
Investment interest rate | 6% |
1 company in the AR, VR and game areas [Member] | |
Schedule of Investments [Line Items] | |
Investment interest rate | 5.50% |
23 companies in the AR, VR and digital marketing areas [Member] | |
Schedule of Investments [Line Items] | |
Investment interest rate | 5% |
1 company in the VR medical treatment areas [Member] | |
Schedule of Investments [Line Items] | |
Investment interest rate | 4.50% |
13 companies in the AR, VR, 3D animation and software areas [Member] | |
Schedule of Investments [Line Items] | |
Investment interest rate | 4% |
2 companies in the AR and VR areas [Member] | |
Schedule of Investments [Line Items] | |
Investment interest rate | 3.50% |
5 companies in the AR, VR and 3D animation areas [Member] | |
Schedule of Investments [Line Items] | |
Investment interest rate | 3% |
3 companies in the AR, VR, 3D animation and software areas [Member] | |
Schedule of Investments [Line Items] | |
Investment interest rate | 2% |
12 companies in the AR, VR, 3D animation, hardware and software areas [Member] | |
Schedule of Investments [Line Items] | |
Investment interest rate | 1% |
Intangible Assets, Net (Details
Intangible Assets, Net (Details) | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Intangible Assets, Net [Line Items] | ||||
Amortization expense | ¥ 1,516,092 | $ 214,056 | ¥ 8,820,352 | ¥ 17,400,708 |
Intangible Assets, Net (Detai_2
Intangible Assets, Net (Details) - Schedule of Acquired Intangible Asset | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Finite-Lived Intangible Assets, Net [Abstract] | |||
Copyrights | ¥ 3,731,250 | $ 526,812 | ¥ 8,955,000 |
Non-compete agreements | 42,200,000 | 5,958,180 | 42,200,000 |
Subtotal | 45,931,250 | 6,484,992 | 51,155,000 |
Less: accumulated amortization | (45,931,250) | (6,484,992) | (44,438,750) |
Intangible assets, net | ¥ 6,716,250 |
Goodwill (Details)
Goodwill (Details) | Dec. 31, 2023 |
Goodwill [Abstract] | |
Equity interest | 100% |
Goodwill (Details) - Schedule o
Goodwill (Details) - Schedule of Goodwill ¥ in Thousands | Dec. 31, 2023 CNY (¥) |
Shenzhen Yidian [Member] | |
Schedule of Goodwill [Line Items] | |
Net Goodwill | |
Fair value | 175,860 |
Carrying Value | 187,829 |
Shenzhen Yitian One [Member] | |
Schedule of Goodwill [Line Items] | |
Net Goodwill | |
Fair value | 203,596 |
Carrying Value | 203,596 |
Guoyu [Member] | |
Schedule of Goodwill [Line Items] | |
Net Goodwill | |
Fair value | 159 |
Carrying Value | ¥ 159 |
Other Payables and Accrued Li_3
Other Payables and Accrued Liabilities (Details) - Dec. 31, 2023 | CNY (¥) | USD ($) |
Other Payables and Accrued Liabilities [Abstract] | ||
Other payables and accrued expenses | ¥ 151,178,632 | $ 21,344,774 |
Temparary loans | ¥ 8,499,240 | $ 1,200,000 |
Other Payables and Accrued Li_4
Other Payables and Accrued Liabilities (Details) - Schedule of Other Payables and Accrued Liabilities | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Schedule of other payables and accrued liabilities [Abstract] | |||
Salary payables | ¥ 1,068,104 | $ 150,805 | ¥ 1,909,260 |
Other payables and accrued expenses | 159,677,872 | 22,544,774 | 10,233,141 |
Accrued interest payable | 9,739,427 | 1,375,101 | 10,086,400 |
Total other payables and accrued liabilities | ¥ 170,485,403 | $ 24,070,680 | ¥ 22,228,801 |
Related Party Balances and Tr_3
Related Party Balances and Transactions (Details) | 12 Months Ended | ||||||||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2023 USD ($) | Aug. 20, 2021 CNY (¥) | |
Related Party Balances and Rransactions [Line Items] | |||||||||
Repaid Amount | ¥ 91,500,000 | ||||||||
Borrowed additional amount | ¥ 47,029,482 | ||||||||
Repaid of related party debt | ¥ 3,228,306 | $ 455,802 | 77,144,627 | ¥ 47,560,843 | |||||
Loan payable | 14,600,000 | $ 0 | $ 2,096,316 | ||||||
Shanghai Junei Internet Co [Member] | |||||||||
Related Party Balances and Rransactions [Line Items] | |||||||||
Borrowed from related party | 75,500,000 | ||||||||
Repaid Amount | 75,644,627 | 35,763,510 | |||||||
Borrowed additional amount | ¥ 42,600,000 | ¥ 96,300,000 | |||||||
Interest expense related to loan | 1,542,315 | ||||||||
Loan due period, description | The loan has an annual interest rate of 7% and is due in 2021 and 2022. | The loan has an annual interest rate of 7% and is due in 2021 and 2022. | |||||||
Annual interest rate | 7% | 7% | 7% | ||||||
Finance expense | ¥ 5,625,293 | ||||||||
Shanghai Weimu [Member] | |||||||||
Related Party Balances and Rransactions [Line Items] | |||||||||
Interest expense related to loan | ¥ 6,430,000 | $ 907,846 | |||||||
Chief Executive Officer [Member] | Yang Cui [Member] | |||||||||
Related Party Balances and Rransactions [Line Items] | |||||||||
Borrowed amount | ¥ 16,100,000 | ||||||||
Debt instrument term | 5 years | 5 years | |||||||
Repaid of related party debt | ¥ 1,500,000 | $ 215,375 |
Related Party Balances and Tr_4
Related Party Balances and Transactions (Details) - Schedule of Related Party Transactions | 12 Months Ended | ||||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2023 USD ($) | |
Related Party Transaction [Line Items] | |||||
Total Related Parties | ¥ 35,991,345 | $ 5,081,585 | ¥ 42,421,345 | ¥ 87,136,490 | |
Related party loan – current | 42,421,345 | 20,000,000 | |||
Related party loan – non-current | 35,991,345 | 67,136,490 | $ 5,081,585 | ||
Yang Cui [Member] | |||||
Related Party Transaction [Line Items] | |||||
Total Related Parties | 16,100,000 | ||||
Relationship | Executive director of Shenzhen Yiyun | Executive director of Shenzhen Yiyun | |||
Shanghai Junei Internet Co. [Member] | |||||
Related Party Transaction [Line Items] | |||||
Total Related Parties | ¥ 35,991,345 | $ 5,081,585 | ¥ 42,421,345 | ¥ 71,036,490 | |
Relationship | Under common control of Jie Zhao | Under common control of Jie Zhao |
Related Party Balances and Tr_5
Related Party Balances and Transactions (Details) - Schedule of Maturities - Dec. 31, 2023 | CNY (¥) | USD ($) |
Schedule of maturities [Abstract] | ||
2024 | ||
2025 | 35,991,345 | 5,081,585 |
Total | ¥ 35,991,345 | $ 5,081,585 |
Related Party Balances and Tr_6
Related Party Balances and Transactions (Details) - Schedule of Non-Interest Bearing and Due On Demand | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) |
Joyous Dragon [Member] | ||||
Related Party Balances and Transactions (Details) - Schedule of Non-Interest Bearing and Due On Demand [Line Items] | ||||
Other payables Related Party-Joyous JD | ¥ 1,086,012 | $ 153,333 | ¥ 1,067,903 |
Taxes (Details)
Taxes (Details) | 12 Months Ended | ||||||
Dec. 31, 2023 CNY (¥) ¥ / shares | Dec. 31, 2023 USD ($) $ / shares | Dec. 31, 2023 SGD ($) | Dec. 31, 2022 CNY (¥) ¥ / shares | Dec. 31, 2021 CNY (¥) ¥ / shares | Dec. 31, 2021 $ / shares | Dec. 31, 2023 USD ($) | |
Taxes [Line Items] | |||||||
Statutory income tax rate | 25% | 25% | 25% | 25% | 25% | ||
Income tax rate | 75% | 75% | 75% | ||||
Taxable income | ¥ 49,000 | $ 937,000 | $ 190,000 | ||||
Taxable income percentage | 50% | 50% | 50% | ||||
Income tax due | 5 years | 5 years | 5 years | ||||
Income tax saving amount | ¥ 497,152 | $ 70,551 | ¥ 10,314,162 | ¥ 18,153,904 | |||
Basic | (per share) | ¥ (2.41) | $ (0.34) | ¥ (2.08) | ¥ (1.41) | $ 0.06 | ||
Diluted | (per share) | ¥ (2.41) | $ (0.34) | ¥ (2.08) | (1.41) | $ 0.06 | ||
Net operating loss carry forwards | ¥ 19,352,270 | $ 2,732,329 | |||||
VAT Percentage | 6% | 6% | 6% | ||||
Hong Kong [Member] | |||||||
Taxes [Line Items] | |||||||
Statutory income tax rate | 16.50% | 16.50% | 16.50% | ||||
Singapore [Member] | |||||||
Taxes [Line Items] | |||||||
Statutory income tax rate | 17% | 17% | 17% | ||||
Taxable income | $ 10,000 | ||||||
GST rate | 7% | 7% | 7% | ||||
China [Member] | |||||||
Taxes [Line Items] | |||||||
Statutory income tax rate | 10% | 10% | 10% | ||||
Reduced income tax | 12.50% | 12.50% | 12.50% | ||||
VAT Percentage | 13% | 13% | 13% | ||||
Guangdong Provence [Member] | |||||||
Taxes [Line Items] | |||||||
Income tax reduced rate | 15% | 15% | 15% | ||||
Hainan Provence [Member] | |||||||
Taxes [Line Items] | |||||||
Income tax reduced rate | 15% | 15% | 15% | ||||
PRC [Member] | |||||||
Taxes [Line Items] | |||||||
Basic | (per share) | ¥ 0.18 | $ 0.03 | 0.14 | ||||
Diluted | (per share) | ¥ 0.18 | $ 0.03 | ¥ 0.14 | ||||
Enterprise Income Tax [Member] | |||||||
Taxes [Line Items] | |||||||
Enterprise income tax rate | 25% | 25% | 25% | ||||
High and New Technology Enterprises [Member] | |||||||
Taxes [Line Items] | |||||||
Enterprise income tax rate | 15% | 15% | 15% |
Taxes (Details) - Schedule of C
Taxes (Details) - Schedule of Components of the Benefit of (Provision for) Income Taxes | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Schedule of Components of the Benefit of (Provision for) Income Taxes [Abstract] | ||||
Current | ¥ (140,037) | $ (19,772) | ¥ (135,968) | ¥ (2,189,629) |
Deferred | 2,666,910 | 376,539 | 3,758,877 | 3,024,851 |
Income tax credit | ¥ 2,526,873 | $ 356,767 | ¥ 3,622,909 | ¥ 835,222 |
Taxes (Details) - Schedule of R
Taxes (Details) - Schedule of Reconciles China Statutory Rates to the Company’s Effective Tax Rate | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Schedule of Reconciles China Statutory Rates to the Company’s Effective Tax Rate [Abstract] | ||||
China statutory income tax rate | 25% | 25% | 25% | |
Preferential tax rate in China | (20.00%) | (2.60%) | (14.00%) | |
Tax rate difference outside China | [1] | (16.80%) | (18.00%) | (7.00%) |
Change in valuation allowance | (5.00%) | (9.90%) | 4.70% | |
Additional R&D deduction in China | (0.30%) | (8.50%) | ||
Permanent difference | 17.20% | 6.80% | 0.10% | |
Effective tax rate | 0.50% | 1% | 0.30% | |
[1]It is mainly due to the lower tax rate of the entities incorporated in Hong Kong, Singapore, and tax exempt in Cayman Islands. |
Taxes (Details) - Schedule of_2
Taxes (Details) - Schedule of Components of Deferred Tax Assets and Liabilities | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Deferred tax assets: | |||
Allowance for doubtful accounts | ¥ 987,848 | $ 139,473 | ¥ 372,554 |
Net operating loss carryforward | 19,352,270 | 2,732,329 | 49,695,212 |
Less: valuation allowance | (19,352,270) | (2,732,329) | (50,067,766) |
Deferred tax assets, net | 987,848 | 139,473 | |
Deferred tax liabilities: | |||
Recognition of intangible assets arising from business combinations | 1,679,063 | ||
Total deferred tax liabilities, net | ¥ 1,679,063 |
Taxes (Details) - Schedule of T
Taxes (Details) - Schedule of Taxes Payable | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Schedule of Taxes Payable [Abstract] | |||
VAT taxes payable | ¥ 396,457 | $ 55,975 | ¥ 41,902 |
Income taxes payable | 5,024,623 | 709,422 | 5,363,733 |
Other taxes payable | 2,009,768 | 283,758 | 24,094 |
Total | ¥ 7,430,848 | $ 1,049,155 | ¥ 5,429,729 |
Concentration of Risk (Details)
Concentration of Risk (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Concentration Risk [Line Items] | |||
Cash deposits (in Yuan Renminbi) | ¥ 500,000 | ||
Description of credit risk | cash balance of RMB 152,936,317 (USD 21,592,940) was deposited with financial institutions located in China, of which RMB 139,482,320 (USD 19,693,382) was subject to credit risk. The Hong Kong Deposit Protection Board pays compensation up to a limit of HKD 500,000 (approximately USD 64,000) if the bank with which an individual/a company hold its eligible deposit fails. As of December 31, 2023, cash balance of HKD 201,286,738, approximately RMB 182,410,068 (USD 25,754,312) was maintained at financial institutions in Hong Kong, of which HKD 197,908,616 approximately RMB 179,348,746 (USD 25,322,087) was subject to credit risk. The Singapore Deposit Insurance Corporation Limited (SDIC) insures deposits in a Deposit Insurance (DI) Scheme member bank or finance company up to SGD 75,000 (approximately USD 57,000) per account. As of December 31, 2023, cash balance of SGD 374,514 approximately RMB 2,013,835 (USD 284,332) was maintained at DI Scheme banks in Singapore, of which SGD 77,013 approximately RMB 414,112 (USD 58,468) was subject to credit risk. In the US, the insurance coverage of each bank is USD 250,000. As of December 31, 2023, cash balance of USD 110,000 (RMB 779,097) was deposited with a financial institution located in US, none of cash was subject to credit risk. The Company’s short term investments are mainly securities traded in US and Hong Kong markets held in a brokerage account in Hong Kong. The HK securities are protected by Investor Compensation Fund regulated by Securities and Futures Commission for up to HKD 500,000 per account. As of December 31, 2023, a total of RMB 39,793,621 (USD 5,113,875) short term investments deposited with a securities company located in Hong Kong was subject to credit risk. | ||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | One Customers [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 27.30% | 35.60% | |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Two Customers [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 14.50% | 16.60% | |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Three Customers [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 10.90% | 15.40% | |
Purchases [Member] | Customer Concentration Risk [Member] | One Vendor [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 11.20% | 10.90% | 13.70% |
Accounts Payable [Member] | Customer Concentration Risk [Member] | One Vendor [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 29.70% | ||
Accounts Payable [Member] | Customer Concentration Risk [Member] | Two Vendor [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 19.80% | ||
Accounts Payable [Member] | Customer Concentration Risk [Member] | Three Vendor [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 13.90% | ||
Accounts Payable [Member] | Customer Concentration Risk [Member] | Four vendor [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 12.60% | ||
Total Revenues [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | One Customers [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 9.20% | 15.90% | 13.60% |
Accounts Payable [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | One Vendor [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 26.50% | ||
Accounts Payable [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Two Vendor [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 25.10% | ||
Accounts Payable [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Three Vendor [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 13.30% | ||
Accounts Payable [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Four vendor [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 11.70% |
Leases (Details)
Leases (Details) | 12 Months Ended | ||||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2023 USD ($) | |
Leases [Abstract] | |||||
Weighted average remaining lease terms | 1 year | 1 year | |||
Weighted average discount rate | 7% | 7% | |||
Right of use assets | ¥ 538,987 | ¥ 1,478,975 | $ 76,099 | ||
Lease liabilities | 432,474 | 1,432,595 | $ 61,061 | ||
Rent expense | ¥ 1,431,155 | $ 203,096 | ¥ 4,225,631 | ¥ 4,672,111 | |
Operating leases term | 1 year | 1 year |
Leases (Details) - Schedule of
Leases (Details) - Schedule of Maturity Lease Obligations | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | |
Lessee, Operating Lease, Liability, to be Paid, Fiscal Year Maturity [Abstract] | ||||
2023 | ¥ 447,365 | [1] | $ 63,163 | |
2024 | ||||
2025 | ||||
2026 | ||||
2027 | ||||
Total lease payments | 447,365 | 63,163 | ||
Less: Interest | (14,891) | (2,102) | ||
Present value of lease liabilities | ¥ 432,474 | $ 61,061 | ¥ 1,432,595 | |
[1]Include the operating leases with a term less than one year. |
Shareholders_ Equity (Details)
Shareholders’ Equity (Details) | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
Dec. 09, 2022 CNY (¥) | Dec. 09, 2022 USD ($) | Mar. 24, 2021 CNY (¥) shares | Mar. 24, 2021 USD ($) $ / shares shares | Jan. 26, 2021 CNY (¥) shares | Jan. 26, 2021 USD ($) $ / shares shares | Sep. 12, 2020 USD ($) $ / shares shares | Jul. 27, 2020 CNY (¥) shares | Jul. 27, 2020 USD ($) $ / shares shares | Jun. 06, 2020 USD ($) $ / shares | Mar. 31, 2020 CNY (¥) shares | Mar. 31, 2020 USD ($) $ / shares shares | Aug. 16, 2018 $ / shares shares | Dec. 31, 2018 shares | Dec. 31, 2023 CNY (¥) shares | Dec. 31, 2023 USD ($) shares | Dec. 31, 2022 CNY (¥) shares | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Jan. 26, 2023 shares | Dec. 31, 2022 $ / shares shares | |
Shareholders’ equity [Line Items] | |||||||||||||||||||||
Net proceeds | ¥ 2,471,019 | $ 387,569 | |||||||||||||||||||
Other expenses | ¥ 38,900,000 | $ 6,000,000 | ¥ 29,559,735 | $ 4,530,297 | ¥ 18,618,078 | $ 2,853,389 | |||||||||||||||
Net proceeds | ¥ 507,900,000 | $ 77,800,000 | |||||||||||||||||||
Exercise price (in Dollars per share) | $ / shares | $ 8.6 | ||||||||||||||||||||
Weighted average live | 3 months | ||||||||||||||||||||
Fair value of the warrants | ¥ 108,500,000 | $ 16,800,000 | |||||||||||||||||||
Fair value | ¥ 861,869 | $ 123,750 | |||||||||||||||||||
Vested date | Mar. 31, 2021 | Mar. 31, 2021 | |||||||||||||||||||
Number of shares | 180,000 | 180,000 | |||||||||||||||||||
Description of vesting period | remaining shares to be vested over a three year period from March 31, 2021. | remaining shares to be vested over a three year period from March 31, 2021. | |||||||||||||||||||
Ordinary share | 236,250 | ||||||||||||||||||||
Amortization expense (in Yuan Renminbi) | ¥ | ¥ 6,700,000 | ||||||||||||||||||||
Description of statutory reserve | WiMi PRC entities are required to set aside at least 10% of their after-tax profits each year, if any, to fund certain statutory reserve funds until such reserve funds reach 50% of its registered capital. | WiMi PRC entities are required to set aside at least 10% of their after-tax profits each year, if any, to fund certain statutory reserve funds until such reserve funds reach 50% of its registered capital. | |||||||||||||||||||
Statutory reserve amount | ¥ 1,633,700,950 | $ 230,660,758 | |||||||||||||||||||
Statutory reserves | ¥ 24,478,153 | $ 3,621,214 | ¥ 25,647,972 | ||||||||||||||||||
Warrants [Member] | |||||||||||||||||||||
Shareholders’ equity [Line Items] | |||||||||||||||||||||
Warrants outstanding | 4,469,334 | ||||||||||||||||||||
Class A Ordinary Share [Member] | |||||||||||||||||||||
Shareholders’ equity [Line Items] | |||||||||||||||||||||
Number of shares issued | 20,115,570 | 20,115,570 | |||||||||||||||||||
Par value (in Dollars per share) | $ / shares | $ 0.0001 | ||||||||||||||||||||
Class B Ordinary Shares [Member] | |||||||||||||||||||||
Shareholders’ equity [Line Items] | |||||||||||||||||||||
Number of shares issued | 466,967,730 | 79,884,430 | |||||||||||||||||||
Par value (in Dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||||||||||||||
Voting shares, description | Each Class A Ordinary Share shall be entitled to ten (10) votes on all matters subject to vote at general meetings of the Company, and each Class B Ordinary Share shall be entitled to one (1) vote on all matters subject to vote at general meetings of the Company. Each Class A Ordinary Share is convertible into one (1) Class B Ordinary Share at any time by the holder. Except for the voting right and conversion right, the Class A ordinary shares and Class B ordinary shares shall carry equal rights and rank pari passu with one another, including but not limited to the rights to dividends and other capital distributions. | Each Class A Ordinary Share shall be entitled to ten (10) votes on all matters subject to vote at general meetings of the Company, and each Class B Ordinary Share shall be entitled to one (1) vote on all matters subject to vote at general meetings of the Company. Each Class A Ordinary Share is convertible into one (1) Class B Ordinary Share at any time by the holder. Except for the voting right and conversion right, the Class A ordinary shares and Class B ordinary shares shall carry equal rights and rank pari passu with one another, including but not limited to the rights to dividends and other capital distributions. | |||||||||||||||||||
Net proceeds | ¥ 171,472,748 | $ 24,201,881 | |||||||||||||||||||
Net proceeds | ¥ 401,339,721 | $ 57,310,503 | |||||||||||||||||||
Ordinary share | 23,000,000 | ||||||||||||||||||||
Series A Preferred Shares [Member] | |||||||||||||||||||||
Shareholders’ equity [Line Items] | |||||||||||||||||||||
Number of shares issued | 12,916,700 | ||||||||||||||||||||
Par value (in Dollars per share) | $ / shares | $ 0.0001 | ||||||||||||||||||||
ADS [Member] | |||||||||||||||||||||
Shareholders’ equity [Line Items] | |||||||||||||||||||||
Per share price (in Dollars per share) | $ / shares | $ 5.5 | ||||||||||||||||||||
ADS [Member] | IPO [Member] | |||||||||||||||||||||
Shareholders’ equity [Line Items] | |||||||||||||||||||||
Number of shares issued | 4,750,000 | 4,750,000 | |||||||||||||||||||
ADS [Member] | Over-Allotment Option [Member] | |||||||||||||||||||||
Shareholders’ equity [Line Items] | |||||||||||||||||||||
Number of shares issued | 169,140 | 169,140 | |||||||||||||||||||
ADS [Member] | Second Public Offering [Member] | |||||||||||||||||||||
Shareholders’ equity [Line Items] | |||||||||||||||||||||
Number of shares issued | 7,560,000 | 7,560,000 | |||||||||||||||||||
Per share price (in Dollars per share) | $ / shares | $ 8.18 | ||||||||||||||||||||
ADS [Member] | Third Public Offering [Member] | |||||||||||||||||||||
Shareholders’ equity [Line Items] | |||||||||||||||||||||
Number of shares issued | 11,173,335 | 11,173,335 | |||||||||||||||||||
Per share price (in Dollars per share) | $ / shares | $ 7.5 | ||||||||||||||||||||
ADS [Member] | Warrants [Member] | |||||||||||||||||||||
Shareholders’ equity [Line Items] | |||||||||||||||||||||
Exercise price (in Dollars per share) | $ / shares | $ 8.6 | ||||||||||||||||||||
Warrants outstanding | 11,173,335 | ||||||||||||||||||||
Board of Directors [Member] | Class B Ordinary Shares [Member] | |||||||||||||||||||||
Shareholders’ equity [Line Items] | |||||||||||||||||||||
Per share price (in Dollars per share) | $ / shares | $ 5.05 | $ 3.31 | $ 1.73 | ||||||||||||||||||
Shares issued (in Dollars) | $ | $ 720,000 | $ 148,240 | $ 15,890,000 | ||||||||||||||||||
Fair value | ¥ 25,100,000 | $ 3,600,000 | $ 490,674 | 27,489,700 | |||||||||||||||||
Consultants [Member] | |||||||||||||||||||||
Shareholders’ equity [Line Items] | |||||||||||||||||||||
Number of shares | 45,000 | 45,000 | |||||||||||||||||||
2020 Equity Incentive Plan [Member] | |||||||||||||||||||||
Shareholders’ equity [Line Items] | |||||||||||||||||||||
Shares issued (in Dollars) | $ | $ 17,500,000 | ||||||||||||||||||||
Vested date | Oct. 15, 2020 | Oct. 01, 2020 | |||||||||||||||||||
Description of vesting period | The remaining 45,000 shares granted to consultants are vesting in three equal annual installments, with the first instalment vesting on October 15, 2021, the second vesting on October 15, 2022 and the third vesting on October 15, 2023. | The remaining 45,000 shares granted to consultants are vesting in three equal annual installments, with the first instalment vesting on October 15, 2021, the second vesting on October 15, 2022 and the third vesting on October 15, 2023. | |||||||||||||||||||
2020 Equity Incentive Plan [Member] | Class B Ordinary Shares [Member] | |||||||||||||||||||||
Shareholders’ equity [Line Items] | |||||||||||||||||||||
Number of shares | 153,300,513 | ||||||||||||||||||||
2020 Equity Incentive Plan [Member] | Consultants [Member] | |||||||||||||||||||||
Shareholders’ equity [Line Items] | |||||||||||||||||||||
Number of shares | 103,240 | ||||||||||||||||||||
Restricted stock [Member] | |||||||||||||||||||||
Shareholders’ equity [Line Items] | |||||||||||||||||||||
Compensation expense (in Yuan Renminbi) | ¥ | ¥ 6,447,471 | ¥ 10,582,557 | ¥ 191,418,458 |
Shareholders_ Equity (Details)
Shareholders’ Equity (Details) - Schedule of Fair Value of Net Proceeds Received | Dec. 31, 2023 |
Annual Dividend Yield [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Warrants | |
Expected Life [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Warrants | 2 |
Risk Free Interest Rate [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Warrants | 0.92 |
Expected Volatility [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Warrants | 180.03 |
Shareholders_ Equity (Details_2
Shareholders’ Equity (Details) - Schedule of Warrants Outstanding and Exercisable - Warrant [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Warrants Outstanding and Exercisable [Line Items] | |||
Warrants, Warrants outstanding beginning | 4,469,334 | 4,469,334 | 4,469,334 |
Weighted Average Exercise Price, Warrants outstanding | $ 8.6 | $ 8.6 | $ 8.6 |
Warrants, Warrants outstanding ending | 4,469,334 | 4,469,334 | |
Weighted Average Exercise Price, Warrants outstanding ending | $ 8.6 | $ 8.6 | |
Warrants, Warrants exercisable | |||
Weighted Average Exercise Price, Warrants exercisable | |||
Warrants, Issued | |||
Weighted Average Exercise Price, Issued | |||
Warrants, Exercised | |||
Weighted Average Exercise Price, Exercised | |||
Warrants, Expired | (4,469,334) | ||
Weighted Average Exercise Price, Expired | $ 8.6 |
Warrant Liability (Details)
Warrant Liability (Details) | 1 Months Ended | 12 Months Ended | ||||||||
Dec. 09, 2022 CNY (¥) | Dec. 09, 2022 USD ($) | Feb. 11, 2021 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2023 CNY (¥) shares | Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 CNY (¥) | Dec. 31, 2022 ¥ / shares shares | |
Warrant Liability [Line Items] | ||||||||||
Pivate placement per units | $ 11.5 | |||||||||
Par value (in Dollars per share) | $ 0.0001 | |||||||||
Number of Warrants (in Shares) | shares | 1 | 1 | ||||||||
Fair value private warrants | ¥ 861,869 | ¥ (832,355) | ||||||||
Aggregate fair value | ¥ 861,869 | $ 123,750 | ||||||||
Accumulated deficits fair value | ¥ 2,100,000 | $ 300,000 | ||||||||
Warrants [Member] | ||||||||||
Warrant Liability [Line Items] | ||||||||||
Fair value private warrants | $ | ||||||||||
MicroAlgo [Member] | ||||||||||
Warrant Liability [Line Items] | ||||||||||
Par value (in Dollars per share) | $ 0.001 | |||||||||
Fair value private warrants | $ | $ 380,000 | |||||||||
MicroAlgo [Member] | IPO [Member] | ||||||||||
Warrant Liability [Line Items] | ||||||||||
Private placement shares (in Shares) | shares | 270,500 | 270,500 | ||||||||
Pivate placement per units | (per share) | $ 10 | ¥ 69.4 |
Warrant Liability (Details) - S
Warrant Liability (Details) - Schedule of Key Inputs into the Black-Scholes Model | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 09, 2022 |
USD | Share Price [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Warrant liability | 0.91 | 1.25 | 10.47 |
USD | Risk Free Interest Rate [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Warrant liability | 3.95 | 4 | 3.8 |
USD | Volatility [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Warrant liability | 5.7 | 5.7 | 5.7 |
USD | Exercise Price [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Warrant liability | 11.5 | 11.5 | 11.5 |
USD | Warrant Life (yr) [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Warrant liability | 3.92 | 4.92 | 4.97 |
RMB | Share Price [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Warrant liability | 6.45 | 8.71 | |
RMB | Risk Free Interest Rate [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Warrant liability | 3.95 | 4 | |
RMB | Volatility [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Warrant liability | 5.7 | 5.7 | |
RMB | Exercise Price [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Warrant liability | 81.45 | 80.09 | |
RMB | Warrant Life (yr) [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Warrant liability | 3.92 | 4.92 |
Segments (Details)
Segments (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Segments [Abstract] | |
Operating segments | 3 |
Segments (Details) - Schedule o
Segments (Details) - Schedule of Information by Segment | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Schedule of Information by Segment [Line Items] | ||||
Revenues | ¥ 585,365,937 | $ 82,647,287 | ¥ 682,292,979 | ¥ 933,791,519 |
Cost of revenues | 411,663,866 | 58,122,449 | 539,246,590 | 684,223,832 |
Gross profit | 173,702,071 | 24,524,838 | 143,046,389 | 249,567,687 |
Depreciation and amortization | 4,916,961 | 694,221 | 10,483,764 | 18,525,363 |
Total capital expenditures | 69,520,884 | $ 9,865,736 | 1,105,905 | 25,165,482 |
AR advertising services [Member] | ||||
Schedule of Information by Segment [Line Items] | ||||
Revenues | 571,842,123 | 480,322,821 | 435,917,971 | |
Cost of revenues | 397,499,842 | 337,945,690 | 254,217,297 | |
Gross profit | 174,342,281 | 142,528,452 | 181,700,674 | |
Depreciation and amortization | 3,767,215 | 2,939,581 | 5,936,500 | |
Total capital expenditures | 69,520,884 | 1,105,905 | 23,782,060 | |
AR entertainment [Member] | ||||
Schedule of Information by Segment [Line Items] | ||||
Revenues | 732,505 | 1,356,556 | 14,056,868 | |
Cost of revenues | 1,449,637 | 145,397 | 4,385,783 | |
Gross profit | (717,132) | 1,059,838 | 9,671,085 | |
Depreciation and amortization | 737,384 | 2,761 | 5,385,869 | |
Total capital expenditures | 17,120 | |||
Semiconductor business [Member] | ||||
Schedule of Information by Segment [Line Items] | ||||
Revenues | 12,791,309 | 200,613,602 | 483,816,680 | |
Cost of revenues | 12,714,387 | 201,155,503 | 425,620,752 | |
Gross profit | 76,922 | (541,901) | 58,195,928 | |
Depreciation and amortization | ¥ 412,362 | 7,541,422 | 7,202,994 | |
Total capital expenditures | ¥ 1,366,302 |
Segments (Details) - Schedule_2
Segments (Details) - Schedule of Total Assets | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Schedule of Total Assets [Line Items] | |||
Total Assets | ¥ 1,031,010,621 | $ 145,567,457 | ¥ 1,260,341,366 |
AR advertising services [Member] | |||
Schedule of Total Assets [Line Items] | |||
Total Assets | 551,391,408 | 77,850,455 | 1,071,603,048 |
AR entertainment [Member] | |||
Schedule of Total Assets [Line Items] | |||
Total Assets | 471,845,963 | 66,619,504 | 9,504,306 |
Semiconductor business [Member] | |||
Schedule of Total Assets [Line Items] | |||
Total Assets | ¥ 7,773,250 | $ 1,097,498 | ¥ 179,234,012 |
Segments (Details) - Schedule_3
Segments (Details) - Schedule of Information of Revenues by Geographic Locations | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Schedule of Information of Revenues by Geographic Locations [Line Items] | ||||
Revenues | ¥ 585,365,937 | $ 82,647,287 | ¥ 682,292,979 | ¥ 933,791,519 |
Mainland PRC revenues [Member] | ||||
Schedule of Information of Revenues by Geographic Locations [Line Items] | ||||
Revenues | 542,958,194 | 76,659,777 | 483,328,411 | 593,803,869 |
Hong Kong revenues [Member] | ||||
Schedule of Information of Revenues by Geographic Locations [Line Items] | ||||
Revenues | 32,297,915 | 4,560,113 | 61,882,662 | 118,590,946 |
International revenues [Member] | ||||
Schedule of Information of Revenues by Geographic Locations [Line Items] | ||||
Revenues | ¥ 10,109,828 | $ 1,427,397 | ¥ 137,081,906 | ¥ 221,396,704 |
Subsequent Events (Details)
Subsequent Events (Details) | 12 Months Ended | ||||||
Mar. 22, 2024 USD ($) $ / shares shares | Feb. 27, 2024 USD ($) | Jan. 10, 2024 CNY (¥) | Jan. 10, 2024 USD ($) $ / shares | Jan. 04, 2024 USD ($) $ / shares shares | Dec. 31, 2023 $ / shares shares | Mar. 24, 2021 $ / shares | |
Subsequent Event [Line Items] | |||||||
Shares Par value | $ 0.0001 | ||||||
Converted shares (in Shares) | shares | 482,500 | ||||||
Warrants purchase price | $ 8.6 | ||||||
Subsequent Event [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Ordinary shares (in Shares) | shares | 200,000,000 | 8,000,000 | |||||
Total consideration | ¥ 2,900,000 | $ 4,000,000 | |||||
Per share unit | $ 0.5 | $ 0.5 | |||||
Purchase agreement,investors (in Dollars) | $ | $ 5,800,000 | ||||||
Shares Par value | $ 0.01 | ||||||
Converted amount (in Dollars) | $ | $ 200,000 | ||||||
Converted shares (in Shares) | shares | 20,000,000 | ||||||
Warrant (in Dollars) | $ | $ 2,000,000 | ||||||
Additional shares issued (in Shares) | shares | 180,000,000 | ||||||
Subsequent Event [Member] | Maximum [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Ordinary shares issued (in Shares) | shares | 10 | ||||||
Shares Par value | $ 0.001 | ||||||
Warrants purchase price | $ 115 | ||||||
Subsequent Event [Member] | Minimum [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Ordinary shares issued (in Shares) | shares | 1 | ||||||
Shares Par value | $ 0.01 | ||||||
Warrants purchase price | 11.5 | ||||||
Subsequent Event [Member] | Share Consolidation [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Shares Par value | 0.01 | ||||||
Subsequent Event [Member] | Ordinary Share [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Shares Par value | $ 0.01 | ||||||
Forecast [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Aggregate principal amount (in Dollars) | $ | $ 11,000,000 | ||||||
Purchase price (in Dollars) | $ | $ 11,000,000 | ||||||
Shares remains holdings | 51% | ||||||
MicroAlgo’s [Member] | Subsequent Event [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Ordinary shares (in Shares) | shares | 0.01 | ||||||
Shares Par value | $ 0.0001 | ||||||
Converted amount (in Dollars) | $ | $ 200,000 | ||||||
Converted shares (in Shares) | shares | 200,000,000 |
Condensed Financial Informati_3
Condensed Financial Information of the Parent Company (Details) - Schedule of Parent Company Balance Sheets - Parent Company [Member] | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
CURRENT ASSETS | |||
Cash in bank | ¥ 3,578,051 | $ 505,182 | ¥ 17,660,758 |
Short term investment | 378,843,373 | 53,488,553 | 27,761,919 |
Other receivables – intercompany | 733,775,060 | 103,601,036 | 875,276,939 |
Total current assets | 1,116,196,484 | 157,594,771 | 920,699,616 |
NON-CURRENT ASSETS | |||
Other receivable-related parties | 49,794,054 | ||
Investment in subsidiaries | 80,972,615 | ||
Total non-current assets | 130,766,669 | ||
Total assets | 1,116,196,484 | 157,594,771 | 1,051,466,285 |
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||
Other payables | 68,209,284 | 9,630,407 | |
Other payables - intercompany | 999,427 | 141,108 | |
Total liabilities | 69,208,711 | 9,771,515 | |
SHAREHOLDERS’ EQUITY | |||
Ordinary shares, value | 117,681 | 16,615 | 102,127 |
Additional paid-in capital | 1,608,052,978 | 227,039,544 | 1,552,410,496 |
Accumulated deficit | (646,273,236) | (91,246,733) | (517,971,017) |
Statutory reserves | 25,647,972 | 3,621,214 | 24,478,153 |
Accumulated other comprehensive loss | 59,429,283 | 8,390,767 | (7,566,569) |
Total shareholders’ equity | 1,046,987,773 | 147,823,256 | 1,051,466,285 |
Total liabilities and shareholders’ equity | 1,116,196,484 | 157,594,771 | 1,051,466,285 |
Class A Ordinary Shares [Member] | |||
SHAREHOLDERS’ EQUITY | |||
Ordinary shares, value | ¥ 13,095 | $ 1,849 | ¥ 13,095 |
Condensed Financial Informati_4
Condensed Financial Information of the Parent Company (Details) - Schedule of Parent Company Balance Sheets (Parentheticals) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Ordinary shares, par value (in Dollars per share and Yuan Renminbi per share) | $ 0.0001 | |
Ordinary shares authorized | 466,967,730 | 466,967,730 |
Ordinary shares issued | 176,300,513 | 153,300,513 |
Ordinary shares outstanding | 176,300,513 | 153,300,513 |
Class A Ordinary Shares [Member] | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Ordinary shares, par value (in Dollars per share and Yuan Renminbi per share) | $ 0.0001 | $ 0.0001 |
Ordinary shares authorized | 20,115,570 | 20,115,570 |
Ordinary shares issued | 20,115,570 | 20,115,570 |
Ordinary shares outstanding | 20,115,570 | 20,115,570 |
Parent Company [Member] | Class A Ordinary Shares [Member] | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Ordinary shares, par value (in Dollars per share and Yuan Renminbi per share) | $ 0.0001 | |
Ordinary shares authorized | 20,115,570 | 20,115,570 |
Ordinary shares issued | 20,115,570 | 20,115,570 |
Ordinary shares outstanding | 20,115,570 | 20,115,570 |
Condensed Financial Informati_5
Condensed Financial Information of the Parent Company (Details) - Schedule of Parent Company Statements of Operations and Comprehensive Loss - Parent [Member] | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
OPERATING EXPENSES | ||||
General and administrative | ¥ (4,400,226) | $ (621,264) | ¥ (7,372,851) | ¥ (10,704,897) |
Research and development | (242,803,298) | (27,394,359) | ||
Stock compensation | (55,171,257) | (7,789,580) | (6,447,471) | (10,582,557) |
Total operating expenses | (59,571,483) | (8,410,844) | (256,623,620) | (48,681,813) |
LOSS FROM OPERATIONS | (59,571,483) | (8,410,844) | (256,623,620) | (48,681,813) |
OTHER INCOME (EXPENSE) | ||||
Investment income (loss) | 8,645,424 | 1,220,640 | (29,052,387) | 2,491,671 |
Interest income | 3,697,152 | 521,998 | 78,931 | 2,408 |
Finance expense | (100,698) | (14,217) | (22,526) | (21,282) |
Other income (expense), net | 3,452,034 | 503,806 | ||
Equity income (loss) of subsidiaries | (80,972,615) | (11,432,450) | (75,563,525) | (190,267,969) |
Total other income (expense), net | (68,730,737) | (9,704,029) | (101,107,473) | (187,291,366) |
NET LOSS ATTRIBUTABLE TO WIMI HOLOGRAM CLOUD, INC. | (128,302,220) | (18,114,873) | (357,731,093) | (235,973,179) |
FOREIGN CURRENCY TRANSLATION ADJUSTMENT | 66,841,729 | 9,437,323 | 47,403,782 | (19,536,206) |
COMPREHENSIVE LOSS ATTRIBUTABLE TO WIMI HOLOGRAM CLOUD, INC. | ¥ (61,460,491) | $ (8,677,550) | ¥ (310,327,311) | ¥ (255,509,385) |
Condensed Financial Informati_6
Condensed Financial Information of the Parent Company (Details) - Schedule of Parent Company Statements of Cash Flows - Parent Company [Member] | 12 Months Ended | ||||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2023 USD ($) | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||
Net income (loss) | ¥ (128,302,220) | $ (18,114,873) | ¥ (357,731,093) | ¥ (235,973,179) | |
Adjustments to reconcile net income to cash used in operating activities: | |||||
Stock compensation expense | 56,827,855 | 8,023,473 | 6,447,471 | 10,582,557 | |
(Gain) loss from short term investment | (8,645,424) | (1,220,640) | 29,052,387 | (2,491,671) | |
Equity (income) loss of subsidiaries and VIEs | 75,563,525 | 190,267,969 | |||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||
Purchases of short term investments | (342,436,029) | (48,348,233) | (314,610,239) | (98,023,653) | |
Redemptions of short term investments | 294,130,260 | 99,084,663 | |||
Long term investment in subsidiaries | 80,972,615 | 11,432,450 | 870,953 | ||
Net cash (used in) provided by investing activities | (261,463,414) | (36,915,783) | (20,479,979) | 1,931,963 | |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||
Proceeds from public offerings, net | 508,132,968 | ||||
Repayment to related party loans | (2,274,154) | ||||
Sale of subsidiary’s noncontrolling interest | 87,369,300 | ||||
Net cash provided by financing activities | 593,228,114 | ||||
EFFECT OF EXCHANGE RATE ON CASH | 66,995,853 | 9,416,802 | 22,723,004 | (12,519,279) | |
CHANGES IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (14,082,707) | (2,030,607) | (384,791,105) | 347,381,188 | |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of year | 17,660,758 | 2,535,789 | 402,451,863 | 55,070,675 | |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of year | 3,578,051 | 505,182 | 17,660,758 | 402,451,863 | |
Cash and cash equivalents | 3,578,051 | 17,660,758 | 402,451,863 | $ 505,182 | |
Restricted cash | |||||
Total cash, cash equivalents and restricted cash shown in the parent company statements of cash flows | 3,578,051 | 17,660,758 | 402,451,863 | $ 505,182 | |
Other receivable - related parties | 49,794,054 | 7,030,377 | |||
Other payables | 68,209,284 | 9,630,407 | |||
Intercompany | 142,501,305 | 20,119,630 | (140,366,420) | (199,216,770) | |
Prepaid expenses | 1,571,484 | ||||
Net cash used in operating activities | ¥ 180,384,854 | $ 25,468,374 | ¥ (387,034,130) | ¥ (235,259,610) |