WIMI · WiMi Hologram Cloud Inc.

This earnings release highlights a dramatic turnaround in WiMi’s profitability and operational efficiency for fiscal year 2025. Net income surged 235.9% year-over-year to RMB 347.1 million (USD 49.4 million), marking the second consecutive year of GAAP profitability — a material inflection point for a company previously characterized by early-stage losses. The growth was driven not by top-line expansion (which is not disclosed in this release), but by aggressive cost discipline: operating expenses declined 19.4% to RMB 147.6 million, underscoring management’s stated focus on 'outstanding cost-reduction effects' and 'enhanced cost control capabilities.' Simultaneously, working capital more than doubled to RMB 2,611.6 million as of December 31, 2025, reflecting improved cash conversion, inventory or receivables management, or both — though the release does not specify drivers. Management attributes the strengthened balance sheet to 'sufficient cash flow and capital reserves,' explicitly citing 'extremely strong risk resistance capacity.' Notably, the release contains no forward-looking financial guidance, revenue figures, or segment-level performance; all quantitative disclosures are limited to net income, operating expenses, and working capital. Investors should refer to the full audited Form 20-F for comprehensive financial statements, including revenue, gross margin, and cash flow details omitted here. The absence of revenue data limits assessment of organic growth, making expense leverage the dominant narrative of this filing.