Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2021shares | |
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, 2021 |
Document Fiscal Year Focus | 2021 |
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#2002, Building A |
Entity Address, Address Line Two | Wentley Center, 1st West Dawang Road, |
Entity Address, Address Line Three | Chaoyang District |
Entity Address, City or Town | Beijing |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 100020 |
Security Exchange Name | NASDAQ |
Title of 12(b) Security | Class B ordinary shares, par value US$0.0001 per share* |
Entity Interactive Data Current | Yes |
Document Accounting Standard | U.S. GAAP |
Auditor Name | Friedman LLP |
Auditor Location | New York |
Auditor Firm ID | 711 |
Business Contact [Member] | |
Document Information Line Items | |
Entity Address, Address Line One | Room#2002, Building A, |
Entity Address, Address Line Two | Wentley Center, 1st West Dawang Road |
Entity Address, Address Line Three | Chaoyang District |
Entity Address, City or Town | Beijing |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 100020 |
Contact Personnel Name | Shuo Shi, Chief Executive and Operations Officer |
Contact Personnel Email Address | sean@wimiar.com |
Local Phone Number | 53384913 |
City Area Code | 8610 |
Class A Ordinary Shares | |
Document Information Line Items | |
Entity Common Stock, Shares Outstanding | 20,115,570 |
Class B Ordinary Shares | |
Document Information Line Items | |
Entity Common Stock, Shares Outstanding | 153,300,513 |
Consolidated Balance Sheets
Consolidated Balance Sheets | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
CURRENT ASSETS | |||
Cash and cash equivalents | ¥ 751,904,587 | $ 117,932,868 | ¥ 355,020,149 |
Restricted cash | 442,560 | 69,414 | 13,088,949 |
Short term investments | 33,540,301 | 5,260,646 | 32,878,252 |
Accounts receivable, net | 26,235,989 | 4,114,997 | 172,614,623 |
Inventories | 6,841,745 | 1,073,097 | 4,117,807 |
Prepaid services fees | 29,063,036 | 4,558,407 | 31,710,307 |
Other receivables and prepaid expenses | 6,000,928 | 941,219 | 3,974,985 |
Other receivables-related parties | 27,589,530 | 4,327,294 | |
Consideration receivable from sale of equity interests | 40,972 | 6,426 | |
Loans receivable | 26,160,000 | 4,103,079 | |
Contract costs | 3,020,770 | ||
Total current assets | 907,819,648 | 142,387,447 | 616,425,842 |
PROPERTY AND EQUIPMENT, NET | 24,839,545 | 3,895,971 | 729,212 |
OTHER ASSETS | |||
Deferred merger cost | 3,839,567 | 602,219 | |
Cost method investments | 114,650,000 | 17,982,339 | 114,050,000 |
Prepaid expenses and deposits | 1,519,909 | 238,391 | 2,253,932 |
Prepayments | 142,527,894 | 22,354,862 | |
Intangible assets, net | 27,880,937 | 4,373,000 | 41,242,091 |
Operating lease right-of-use assets | 3,255,747 | 510,649 | 1,491,848 |
Goodwill | 276,978,601 | 43,442,853 | 396,228,760 |
Investment in unconsolidated subsidiary | 1,716,849 | 269,280 | |
Total non-current assets | 572,369,504 | 89,773,593 | 555,266,631 |
Total assets | 1,505,028,697 | 236,057,011 | 1,172,421,685 |
CURRENT LIABILITIES | |||
Accounts payable | 27,958,057 | 4,385,096 | 27,355,410 |
Deferred revenues | 21,902,430 | 3,435,298 | 10,475,681 |
Other payables and accrued liabilities | 13,655,554 | 2,141,810 | 5,070,624 |
Banking facility | 13,049,800 | ||
Current portion of related party loans | 20,000,000 | 3,136,910 | 63,876,153 |
Operating lease liabilities | 1,819,522 | 285,384 | 851,980 |
Taxes payable | 6,424,746 | 1,007,693 | 11,515,624 |
Total current liabilities | 91,760,309 | 14,392,191 | 132,195,272 |
OTHER LIABILITIES | |||
Business acquisition payable | 1,864,131 | ||
Non-current related party loans | 67,136,490 | 10,530,058 | 22,685,512 |
Operating lease liabilities – noncurrent | 1,413,490 | 221,700 | 640,242 |
Deferred tax liabilities, net | 5,254,143 | 824,089 | 5,984,605 |
Total other liabilities | 73,804,123 | 11,575,847 | 31,174,490 |
Total liabilities | 165,564,432 | 25,968,038 | 163,369,762 |
COMMITMENTS AND CONTINGENCIES | |||
SHAREHOLDERS’ EQUITY | |||
Class A ordinary shares, USD 0.0001 par value, 20,115,570 shares authorized, 20,115,570 shares issued and outstanding as of December 31, 2020 and 2021 | 13,095 | 2,054 | 13,095 |
Class B ordinary shares, USD 0.0001 par value, 466,967,730 shares authorized, 130,953,843 and 153,300,513 shares issued and outstanding as of December 31, 2020 and 2021, respectively | 102,127 | 16,018 | 87,539 |
Additional paid-in capital | 1,454,680,407 | 228,160,109 | 932,368,293 |
Retained earnings (accumulated deficit) | (164,334,928) | (25,775,198) | 76,207,925 |
Statutory reserves | 28,573,157 | 4,481,572 | 24,003,483 |
Accumulated other comprehensive loss | (54,970,351) | (8,621,853) | (35,434,146) |
Total WiMi Hologram Cloud, Inc. shareholders’ equity | 1,264,063,507 | 198,262,702 | 997,246,189 |
NONCONTROLLING INTERESTS | 75,400,758 | 11,826,271 | 11,805,734 |
Total equity | 1,339,464,265 | 210,088,973 | 1,009,051,923 |
Total liabilities and shareholders’ equity | ¥ 1,505,028,697 | $ 236,057,011 | ¥ 1,172,421,685 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
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 | 153,300,513 | 130,953,843 |
Ordinary shares, outstanding | 153,300,513 | 130,953,843 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Loss) | 12 Months Ended | |||
Dec. 31, 2021CNY (¥)¥ / sharesshares | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | |
OPERATING REVENUES | ||||
Total Operating Revenues | ¥ 933,791,519 | $ 146,461,019 | ¥ 766,013,586 | ¥ 319,181,424 |
COST OF REVENUES | (684,223,832) | (107,317,445) | (596,578,700) | (146,167,843) |
GROSS PROFIT | 249,567,687 | 39,143,574 | 169,434,886 | 173,013,581 |
OPERATING EXPENSES | ||||
Selling expenses | (10,603,800) | (1,663,159) | (3,746,873) | (1,924,784) |
General and administrative expenses | (65,815,883) | (10,322,927) | (34,294,568) | (38,306,958) |
Research and development expenses | (155,578,474) | (24,401,789) | (84,957,626) | (18,355,403) |
Provision for doubtful accounts | (138,379,533) | (21,704,210) | (1,156,935) | (1,574,896) |
Stock compensation expenses | (10,582,557) | (1,659,827) | (191,418,458) | |
Goodwill Impairment loss | (131,194,659) | (20,577,295) | (7,276,957) | |
Impairment loss from long-lived assets | (4,308,822) | (675,819) | ||
Change in fair value of business acquisition payable | 3,239,892 | 508,163 | ||
Total operating expenses | (513,223,836) | (80,496,863) | (322,851,417) | (60,162,041) |
INCOME (LOSS) FROM OPERATIONS | (263,656,149) | (41,353,289) | (153,416,531) | 112,851,540 |
OTHER INCOME (EXPENSE) | ||||
Gain from short term investments | 2,491,671 | 390,807 | 12,284,332 | |
Equity income from unconsolidated entities | 721,439 | 113,154 | 7,285 | |
Interest income | 3,365,198 | 527,816 | 476,234 | 1,231,833 |
Finance expenses, net | (7,073,809) | (1,109,495) | (3,818,949) | (11,140,346) |
Other income, net | 4,042,172 | 633,997 | 2,414,387 | 2,390,525 |
Gain from acquisition | 5,781,318 | 906,774 | ||
Loss from deconsolidation of subsidiaries | (901,526) | (141,400) | ||
Total other (expenses) income, net | 8,426,463 | 1,321,653 | 11,363,289 | (7,517,988) |
INCOME (LOSS) BEFORE INCOME TAXES | (255,229,686) | (40,031,636) | (142,053,242) | 105,333,552 |
BENEFIT OF (PROVISION FOR) INCOME TAXES | ||||
Current | (2,189,629) | (343,434) | (4,487,629) | (4,644,300) |
Deferred | 3,024,851 | 474,434 | 1,582,948 | 1,515,220 |
Total (provision for) benefit of income tax | 835,222 | 131,000 | (2,904,681) | (3,129,080) |
NET INCOME (LOSS) | (254,394,464) | (39,900,636) | (144,957,923) | 102,204,472 |
Less: Net income (loss) attributable to non-controlling interests | (18,421,285) | (2,889,296) | 6,209,945 | |
NET INCOME (LOSS) ATTRIBUTABLE TO WIMI HOLOGRAM CLOUD, INC. | (235,973,179) | (37,011,340) | (151,167,868) | 102,204,472 |
NET INCOME (LOSS) | (254,394,464) | (39,900,636) | (144,957,923) | 102,204,472 |
OTHER COMPREHENSIVE INCOME (LOSS) | ||||
Foreign currency translation adjustment | (19,852,192) | (3,113,727) | (38,876,201) | 1,589,076 |
COMPREHENSIVE INCOME (LOSS) | (274,246,656) | (43,014,363) | (183,834,124) | 103,793,548 |
Less: Comprehensive income (loss) attributable to non-controlling interests | (18,737,271) | (2,938,857) | 5,865,631 | |
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO WIMI HOLOGRAM CLOUD, INC. | ¥ (255,509,385) | $ (40,075,506) | ¥ (189,699,755) | ¥ 103,793,548 |
WEIGHTED AVERAGE NUMBER OF ORDINARY SHARES | ||||
Basic (in Shares) | 167,057,820 | 167,057,820 | 129,439,604 | 100,000,000 |
Diluted (in Shares) | 167,057,820 | 167,057,820 | 129,439,604 | 108,611,133 |
EARNINGS (LOSS) PER SHARE | ||||
Basic (in Dollars per share and Yuan Renminbi per share) | (per share) | ¥ (1.41) | $ (0.22) | ¥ (1.17) | ¥ 1.02 |
Diluted (in Dollars per share and Yuan Renminbi per share) | (per share) | ¥ (1.41) | $ (0.22) | ¥ (1.17) | ¥ 0.94 |
Products [Member] | ||||
OPERATING REVENUES | ||||
Total Operating Revenues | ¥ 449,019,437 | $ 70,426,688 | ¥ 395,195,137 | |
Services [Member] | ||||
OPERATING REVENUES | ||||
Total Operating Revenues | ¥ 484,772,082 | $ 76,034,331 | ¥ 370,818,449 | ¥ 319,181,424 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders’ Equity | Class AOrdinary sharesCNY (¥)shares | Class BOrdinary sharesCNY (¥)shares | Convertible preferred sharesCNY (¥)shares | Additional Paid-in CapitalCNY (¥) | Retained Earnings Statutory ReservesCNY (¥) | Retained Earnings UnrestrictedCNY (¥) | Accumulated Other Comprehensive IncomeCNY (¥) | Noncontrolling InterestsCNY (¥) | CNY (¥) | USD ($) |
BALANCE at Dec. 31, 2018 | ¥ 13,095 | ¥ 52,005 | ¥ 5,910 | ¥ 168,166,990 | ¥ 19,647,831 | ¥ 129,526,973 | ¥ 1,508,665 | ¥ 318,921,469 | $ 50,021,405 | |
BALANCE (in Shares) at Dec. 31, 2018 | 20,115,570 | 79,884,430 | 8,611,133 | |||||||
BALANCE at Dec. 31, 2019 | ¥ 13,095 | ¥ 52,005 | ¥ 5,910 | 168,166,990 | 22,201,382 | 229,177,894 | 3,097,741 | 422,715,017 | 66,300,958 | |
BALANCE (in Shares) at Dec. 31, 2019 | 20,115,570 | 79,884,430 | 8,611,133 | |||||||
Net (loss) income | 102,204,472 | 102,204,472 | 16,030,314 | |||||||
Statutory reserves | 2,553,551 | (2,553,551) | ||||||||
Foreign currency translation | 1,589,076 | 1,589,076 | 249,239 | |||||||
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 | 158,265,277 | |
BALANCE (in Shares) at Dec. 31, 2020 | 20,115,570 | 130,953,843 | ||||||||
Issuance of ordinary share through Initial public offering, net | ¥ 6,965 | 171,465,783 | 171,472,748 | 26,894,733 | ||||||
Issuance of ordinary share through Initial public offering, net (in Shares) | 9,838,280 | |||||||||
Conversion of Series A preferred shares into Class B ordinary shares | ¥ 5,910 | ¥ (5,910) | ||||||||
Conversion of Series A preferred shares into Class B ordinary shares (in Shares) | 8,611,133 | (8,611,133) | ||||||||
Issuance of ordinary share through public offering, net | ¥ 10,588 | 401,329,133 | 401,339,721 | 62,948,338 | ||||||
Issuance of ordinary share through public offering, net (in Shares) | 15,120,000 | |||||||||
Issuance of ordinary share for compensation and services | ¥ 12,071 | 191,406,387 | 191,418,458 | 30,023,128 | ||||||
Issuance of ordinary share for compensation and services (in Shares) | 17,500,000 | |||||||||
Noncontrolling interests acquired | 94,611,165 | 94,611,165 | 14,839,338 | |||||||
Noncontrolling interests subscriptions receivable | (88,671,062) | (88,671,062) | (13,907,659) | |||||||
Net (loss) income | (151,167,868) | 6,209,945 | (144,957,923) | (22,736,001) | ||||||
Statutory reserves | 1,802,101 | (1,802,101) | ||||||||
Foreign currency translation | (38,531,887) | (344,314) | (38,876,201) | (6,097,558) | ||||||
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 | 210,088,973 | |
BALANCE (in Shares) at Dec. 31, 2021 | 20,115,570 | 153,300,513 | ||||||||
Issuance of ordinary share through public offering, net | ¥ 14,588 | 508,118,380 | 508,132,968 | 79,698,381 | ||||||
Issuance of ordinary share through public offering, net (in Shares) | 22,346,670 | |||||||||
Vesting of employee share compensation | 10,582,557 | 10,582,557 | 1,659,827 | |||||||
Noncontrolling interest acquired | 330 | 330 | 52 | |||||||
Sale of subsidiary’s interest to noncontrolling holder | ¥ 3,611,177 | 83,758,123 | 87,369,300 | 13,703,484 | ||||||
Sale of subsidiaries’ controlling interest | (1,426,158) | (1,426,158) | (223,686) | |||||||
Net (loss) income | (235,973,179) | (18,421,285) | (254,394,464) | (39,900,633) | ||||||
Statutory reserves | ¥ | ¥ 4,569,674 | ¥ (4,569,674) | ||||||||
Foreign currency translation | ¥ (19,536,205) | ¥ (315,986) | ¥ (19,852,192) | $ (3,113,729) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||
Net income (loss) | ¥ (254,394,464) | $ (39,900,636) | ¥ (144,957,923) | ¥ 102,204,472 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||
Depreciation and amortization | 18,525,363 | 2,905,620 | 14,551,292 | 13,883,919 |
Provision for doubtful accounts | 130,140,248 | 20,411,915 | 1,156,935 | 1,574,896 |
Provision for doubtful accounts-other assets | 8,239,284 | 1,292,295 | ||
Stock compensation expenses | 10,582,557 | 1,659,827 | 191,418,458 | |
Deferred tax benefit | (3,024,853) | (474,435) | (1,582,948) | (1,515,220) |
Gain from short term investments | (2,491,671) | (390,807) | (12,284,332) | |
Loss from disposal of property and equipment | 208 | 33 | 31,556 | |
Loss from deconsolidation of subsidiaries | 901,526 | 141,400 | ||
Income from unconsolidated subsidiary | (721,439) | (113,154) | ||
Gain from acquisitions | (5,781,318) | (906,774) | ||
Amortization of operating lease right-of-use assets | 1,187,629 | 186,274 | 240,733 | |
Amortization of debt discount | 1,396,731 | 219,071 | 914,864 | 11,544,479 |
Goodwill impairment loss | 131,194,659 | 20,577,295 | 7,276,957 | |
Impairment loss from long-lived assets | 4,308,822 | 675,819 | ||
Impairment loss on inventory and contract costs | 11,074,431 | 1,736,975 | ||
Change in fair value of business acquisition payable | (3,239,892) | (508,163) | ||
Change in operating assets and liabilities: | ||||
Accounts receivables | 9,378,693 | 1,471,006 | (110,619,162) | 9,065,001 |
Inventories | (20,837,892) | (3,268,330) | (1,858,884) | |
Contract costs | 3,243,048 | 5,340,167 | ||
Prepaid services fees | (12,192,007) | (1,912,262) | (29,388,668) | (14,131) |
Other receivables and prepaid expenses | (12,335,295) | (1,934,736) | 3,863,170 | (3,080,906) |
Prepaid expenses and deposits | 496,610 | 77,891 | 200,136 | (403,511) |
Accounts payable | 5,553,298 | 871,010 | (2,099,143) | 5,661,871 |
Deferred revenues | 18,086,679 | 2,836,815 | 9,231,864 | 323,430 |
Other payables and accrued liabilities | 27,335,797 | 4,287,497 | 2,626,021 | 444,799 |
Other payable – related parties | (1,065) | |||
Operating lease liabilities | (1,140,006) | (178,805) | (240,358) | |
Taxes payable | (4,083,179) | (640,428) | 1,315,703 | (1,072,657) |
Net cash provided by (used in) operating activities | 58,160,519 | 9,122,213 | (66,960,681) | 143,955,544 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||
Payments of cost method investments | (600,000) | (94,107) | (109,700,000) | (3,850,000) |
Payments of Fe-da Electronics acquisition, net | (95,483,696) | |||
Payments of business acquisition payable – related parties | (122,433,894) | |||
Purchases of property and equipment | (25,165,482) | (3,947,093) | (484,774) | (195,998) |
Prepayments for purchase of real estate | (142,527,894) | (22,354,862) | ||
Purchases of short term investments | (201,322,736) | (31,576,570) | (173,557,366) | |
Redemption of short term investments | 202,383,746 | 31,742,984 | 151,096,293 | |
Cash decrease due to deconsolidation | (15,338,034) | (2,405,702) | ||
Payment for Shanghai Guoyu acquisition | (20,000,000) | (3,136,910) | ||
Cash received from Tapuyu and Pengcheng acquisitions | 161,638 | 25,352 | ||
Loan to third party | (26,160,000) | (4,103,079) | ||
Loan to unconsolidated subsidiary | (9,100,000) | (1,427,294) | ||
Net cash used in investing activities | (237,668,762) | (37,277,281) | (228,129,543) | (126,479,892) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||
Proceeds from public offerings, net | 508,132,968 | 79,698,381 | 572,812,469 | |
Proceeds from short term loan – banking facility | 7,628,698 | 1,196,527 | ||
Payments to banking facility | (20,531,708) | (3,220,306) | (16,062,786) | |
Proceeds from related party loans | 48,216,145 | 7,562,486 | 96,300,000 | 88,500,000 |
Repayments to related party loans | (47,560,843) | (7,459,705) | (96,350,000) | |
Capital contribution from noncontrolling interests | 5,940,103 | (129,474,000) | ||
Sale of subsidiary’s interest to noncontrolling holder | 87,369,300 | 13,703,484 | ||
Deferred merger costs | (3,839,567) | (602,219) | ||
Net cash (used in) provided by financing activities | 579,414,993 | 90,878,648 | 562,639,786 | (40,974,000) |
EFFECT OF EXCHANGE RATE ON CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (15,668,701) | (2,457,562) | (28,489,442) | 599,384 |
CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 384,238,049 | 60,266,018 | 239,060,120 | (22,898,964) |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of year | 368,109,098 | 57,736,264 | 129,048,978 | 151,947,942 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of year | 752,347,147 | 118,002,282 | 368,109,098 | 129,048,978 |
SUPPLEMENTAL CASH FLOW INFORMATION: | ||||
Cash paid for income taxes | 4,383,015 | 687,456 | 4,946,316 | 4,579,482 |
Cash paid for interest | 113,131 | 17,144 | 122,626 | |
NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||||
Acquisition of Fe-da Electronics with acquisition payables | 1,864,131 | |||
Operating lease right-of-use assets obtained in exchange for operating lease liabilities | 1,440,166 | 225,884 | 1,761,892 | |
Payments to vendors made by banking facility | 16,062,786 | |||
Reclassification of investment in subsidiary to additional paid in capital upon sales of subsidiary noncontrolling interest | 88,671,062 | |||
Consideration receivable from sale of equity interest | 40,972 | 6,426 | ||
Cash and cash equivalents | 751,904,587 | 117,932,868 | 355,020,149 | 129,048,978 |
Restricted cash | 442,560 | 69,414 | 13,088,949 | |
Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows | ¥ 752,347,147 | $ 118,002,282 | ¥ 368,109,098 | ¥ 129,048,978 |
Nature of Business and Organiza
Nature of Business and Organization | 12 Months Ended |
Dec. 31, 2021 | |
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. Prior to 2020, the Company has no substantive operations other than holding all of the outstanding share capital of WiMi Hologram Cloud Limited (“WiMi HK”) which was established in Hong Kong on September 4, 2018. 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”). (1) Reorganization with Beijing WiMi VIE and its subsidiaries in 2018 The Company, 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. Beijing WiMi acquired Shenzhen Yitian Internet Technology Co., Ltd. (“Shenzhen Yitian”) in 2015. Shenzhen Yitian established wholly owned subsidiaries Shenzhen Qianhai Wangxin Technology Co., Ltd. in 2015, Korgas 233 Technology Co., Ltd. Shenzhen in 2017. Shenzhen Yitian and subsidiaries mainly engage in AR advertising and entertainment services. Beijing WiMi acquired Shenzhen Kuxuanyou Technology Co., Ltd. (“Shenzhen Kuxuanyou”) in 2015, Shenzhen Kuxuanyou established wholly owned subsidiary Shenzhen Yiruan Tianxia Technology Co., Ltd. in 2016 and wholly owned subsidiaries Shenzhen Yiyun Technology Co., Ltd. and Korgas Shengyou Information Technology Co., Ltd. (“Korgas Shengyou”) in 2017, of which Korgas Shengyou was subsequently disposed in May 2020. Shenzhen Kuxuanyou engaged in AR entertainment and AR advertising services. Beijing WiMi acquired Shenzhen Yidian Network Technology Co., Ltd. (“Shenzhen Yidian”) in 2015, Shenzhen Yidian established Korgas Duodian Network Technology Co., Ltd. in 2016, Shenzhen Duodian Cloud Technology Co., Ltd. in 2017. Shenzhen Yidian and subsidiaries mainly engaged in AR advertising services. In 2016, Beijing WiMi established wholly owned subsidiaries Korgas WiMi Xinghe Network Technologies Co., Ltd. (“Korgas WiMi”) and Micro Beauty Lightspeed Investment Management HK Limited, of which Korgas WiMi was subsequently dissolved in February 2019. On March 7, 2017, Micro Beauty Lightspeed Investment Management HK Limited acquired 100% equity interest of Skystar Development Co., Ltd. Skystar engages in AR entertainment. On November 6, 2018, WiMi Cayman completed a reorganization of entities under common control of its shareholders, who collectively owned all of the equity interests of WiMi Cayman prior to the reorganization. WiMi Cayman, and WiMi HK were established as the holding companies of WiMi WFOE. WiMi WFOE is the primary beneficiary of Beijing WiMi and its subsidiaries through contractual agreements, (see contractual agreements below) and all of these entities included in WiMi Cayman are under common control which results in the consolidation of Beijing WiMi and subsidiaries which have been accounted for as a reorganization of entities under common control at carrying value. The consolidated financial statements are prepared on the basis as if the reorganization became effective as of the beginning of the first period presented in the accompanying consolidated financial statements of WiMi Cayman. (2) Subsidiaries established under Beijing WiMi from 2019 to 2020: From 2019 to 2020, the following On December 3, 2019, Shenzhen Yidian established Shenzhen Zhiyun Image Technology Co., Ltd. On September 24, 2020, Shenzhen Yidian established Shenzhen Yunzhan Image Network Technology Co., Ltd. On January 31, 2019, Shenzhen Yidian established Kashi Duodian Internet Technology Co., Ltd. On January 14, 2019, Shenzhen Yitian established Shenzhen Yiyou Online Technology Co., Ltd. On May 15, 2020, Shenzhen Yitian established Wuhan 233 Interactive Entertainment Technology Co., Ltd. On October 28, 2020, Shenzhen Yitian established Weidong Technology Co., Ltd. (“Weidong”). Weidong established a wholly owned subsidiary Korgas Weidong Technology Co., Ltd. in October 2020 and a 60% owned subsidiary Tianjin Weidong Technology Co., Ltd. in December 2020. All of the above new subsidiaries under Beijing WiMi are in the PRC and mainly engage in AR advertising services. (3) Establishment of VIYI and subsidiaries in 2020 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 November 15, 2020, WiMi Cayman entered into an equity transfer agreement with Bofeng Investment Limited and Bravo Great Enterprises Limited, pursuant to which it transferred 4.0% and 6.0% of the issued share capital of VIYI to Bofeng Investment Limited and Bravo Great Enterprises Limited, respectively, for a total consideration of US$10,000,000. On December 7, 2020, WiMi Cayman entered into an equity transfer agreement with Universal Winnings Holding Limited, pursuant to which it transferred 3.5% of the issued share capital of VIYI Technology Inc. to Universal Winnings Holding Limited for a consideration of US$3,500,000. The consideration was received by WiMi Cayman in January 2021. On March 26, 2021, Bofeng Investment Limited and Bravo Great Enterprises Limited transferred their respective shareholdings in VIYI to MIDI Capital Markets LLC (“MIDI”) and Guosheng Holdings Limited (“Guosheng”). On March 26, 2021, WiMi Cayman entered into an equity transfer agreement with MIDI and Guosheng, pursuant to which WiMi Cayman transferred total of 20% of the issued share capital of VIYI to Guosheng Holdings Limited for the same consideration of US$10,000,000. On March 26, 2021, WiMi Cayman entered into an equity transfer agreement with Universal Winnings Holding Limited (“Universal”) and Joyous Dragon Limited, pursuant to which WiMi Cayman transferred 7% of the issued share capital of VIYI for a consideration of USD 3,500,000. Joyous Dragon Limited subsequently transferred its equity interest to Milestone Investment Limited (“Milestone”). As such, MIDI, Guosheng, Universal and Milestone collectively owned 27% of VIYI for a total consideration of US13.5 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 -da -da -da 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 its wholly foreign owned entities Shenzhen Weiyixin Technology Co., Ltd. (“Shenzhen Weiyixin” or “VIYI WFOE”) 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 June 10, 2021, the Company, VIYI Algorithm Inc. and Venus Acquisition Corporation (NASDAQ: VENA) (“Venus”), a publicly traded special purpose acquisition company entered into a definitive merger agreement (the “Merger Agreement”). A newly created merger subsidiary of Venus will be merged with and into VIYI Algo with VIYI Algo being the surviving entity and becoming Venus’s wholly owned subsidiary. (4) Reorganization of Beijing WiMi and Shenzhen Yitian in December 2020 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 December 24, 2020, with consent of WiMi WFOE, Beijing WiMi transferred 99.0% and 1.0% equity interests in Shenzhen Yitian to Ms. Yao Zhaohua and Ms. Sun Yadong for consideration of RMB 1 and RMB 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. The reorganization has no effect on the consolidated financial statements as Beijing WiMi, Shenzhen Yitian and their subsidiaries are always under the common control of WiMi Cayman without change of reporting entities. On January 11, 2021, Shenzhen Yitian transferred its 100% equity interest of Weidong and subsidiaries to Shenzhen Weiyixin; its 100% equity interest YY Online to Weidong and its 100% equity interest in Horgos 233 and Wuhan 233 to YY Online. As a result, Wuhan 233 and Horgos 233 became wholly owned subsidiaries of YY Online and YY Online became wholly owned subsidiary of Weidong and Weidong became wholly owned subsidiary of Shenzhen Weiyixin. (5) Other subsidiaries established between 2020 to 2021 On August 4, 2020, WiMi Cayman established a wholly -owned -owned 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 12, 2020, ICinit established a wholly owned subsidiary Shenzhen ICinit Technology Co., Ltd. (“Shenzhen ICinit”) to support ICinit’s business in the PRC. On January 22, 2021, Shenzhen ICinit purchased 100% equity interests of Shenzhen Yichong Micro -Electronic -Electronic On March 1, 2021, Shenzhen ICinit purchased 100% equity interests of Shenzhen Shengtang Micro -Electronic On May 28, 2021, Shenzhen ICinit purchased 100% equity interests of Tianjin Yaodi Tomorrow Technology Co. (“Tianjin Yaodi”), Ltd., a provider of electronic components, for RMB 2 (approximately USD 0.3). 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 March 4, 2021, WiMi Cayman established a wholly owned entity of Tianjin Zhongzhengdaohe Investment Co., Ltd. (“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 April 15, 2021, VIYI Ltd formed a 55% owned subsidiary Viwo Technology Limited, a Hong Kong limited company to provide intelligent chips design and solution services. 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 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, Viwotong Tech acquired 100% equity interests of Guangzhou Tapuyu Internet Technology Co., Ltd. (“Tapuyu”), a provider of E -commerce (6) Deconsolidation of ICinit in 2021 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 USD 6,400) to streamline its operating subsidiaries in the semi -conductor The Company concluded that it has lost controlling financial interest in ICinit on October 1, 2021 and deconsolidated ICinit on October 1, 2021 and recorded the fair value of its investment as equity investment. As the deconsolidation did not present a strategic change on the Company’s operation, the deconsolidation was not presented as discontinued operations. See Note 5 for details. The accompanying consolidated financial statements reflect the activities of WiMi Cayman and each of the following entities as of December 31, 2021: Name Background Ownership WiMi HK • • • 100% owned by WiMi Cayman VIDA Semicon Co., Limited (“VIDA”) • • • 53% owned by WiMi HK Name Background Ownership ICinit Limited (“ICinit”) • • • 51% owned by WiMi HK before October 1, 2021; 49% owned by WiMi HK after October 1, 2021 Shenzhen ICinit Technology Co., Ltd. (“SZ ICinit”) • • • • 100% owned by ICinit Shenzhen Yichong Micro-Electronic Technology Co., Ltd. (“Shenzhen Yichong”) • • • • 100% owned by SZ ICinit Acquired in January 2021 Shenzhen Saineng Micro-Electronic Electronic Co., Ltd. (“Shenzhen Saineng”) • • • • 80% owned by Shenzhen Yichong Shenzhen Shengtang Micro-Electronic Technology Co., Ltd. (“Shenzhen Shengtang”) • • • • 100% owned by SZ ICinit Acquired in March 2021 Tianjin Yaodi Tomorrow Technology Co., Ltd. (“Tianjin Yaodi”) • • • • 100% owned by SZ ICinit Acquired in May 2021 WiMi WFOE • • • • 100% owned by WiMi HK Name Background Ownership Beijing WiMi • • • • VIE of WiMi WFOE Shenzhen Kuxuanyou Technology Co., Ltd. • • • • 100% owned by Beijing WiMi Shenzhen Yiruan Tianxia Technology Co., Ltd. • • • • 100% owned by Shenzhen Kuxuanyou Shenzhen Yiyun Technology Co., Ltd. • • • • 100% owned by Shenzhen Kuxuanyou Korgas Shengyou Information Technology Co., Ltd. • • • • 100% owned by Shenzhen Kuxuanyou Dissolved in May 2020 Korgas WiMi Xinghe Network Technology Co., Ltd. • • • • 100% owned by Beijing WiMi; Dissolved in February 2019 Shenzhen Yitian Internet Technology Co., Ltd. • • • • 100% owned by Beijing WiMi before December 24, 2020; VIE of Shenzhen Weiyixin starting on December 24, 2020 Name Background Ownership Korgas 233 Technology Co., Ltd. • • • • 100% owned by Shenzhen Yitian Shenzhen Qianhai Wangxin Technology Co., Ltd. • • • • 100% owned by Shenzhen Yitian Shenzhen Yiyou Online Technology Co., Ltd. • • • • 100% owned by Shenzhen Yitian Wuhan 233 Interactive Entertainment Technology Co., Ltd. (“Wuhan 233”) • • • • 100% owned by Shenzhen Yitian Weidong Technology Co., Ltd. (“Weidong”) • • • • 100% owned by Shenzhen Yitian Korgas Weidong Technology Co., Ltd. (“Korgas Weidong”) • • • • 100% owned by Weidong Tianjin Weidong Technology Co., Ltd. (“Tianjin Weidong”) • • • • • 60% owned by Weidong Name Background Ownership Shenzhen Yidian Network Technology Co., Ltd. • • • • 100% owned by Beijing WiMi Shenzhen Duodian Cloud Technology Co., Ltd. • • • • 100% owned by Shenzhen Yidian Korgas Duodian Network Technology Co., Ltd. • • • • 100% owned by Shenzhen Yidian Kashi Duodian Network Technology Co., Ltd. • • • • 100% owned by Shenzhen Yidian Shenzhen Zhiyun Image Technology Co., Ltd. (“Shenzhen Zhiyun”) • • • • 100% owned by Shenzhen Yidian Shenzhen Yunzhan Image Technology Co., Ltd. (“Shenzhen Yunzhan”) • • • • 100% owned by Shenzhen Yidian Micro Beauty Lightspeed Investment Management HK Limited • • • 100% owned by Beijing WiMi Skystar Development Co., Ltd • • • 100% owned by Micro Beauty Name Background Ownership Lixin Technology Co., Ltd. (“Lixin Technology”) • • • • 100% owned by WiMi Cayman Hainan Lixin Technology Co., Ltd. (“Hainan Lixin”) • • • • 100% owned by Lixin Technology Tianjin Zhongzhengdaohe Investment Co., Ltd. (“TJ Zhongzheng”) • • • • 100% owned by WiMi Cayman Shenzhen Hedaozhongshu Technology Co., Ltd. (“Shenzhen Hedao”) • • • • 100% owned by TJ Zhongzheng Kashi Daohezhongzheng Internet Technology Co., Ltd. (“Kashi Daohe”) • • • • 100% owned by Shenzhen Hedao VIYI Algorithm Inc. (“VIYI”), previously known as VIYI Technology Inc. • • • 86.5% owned by WiMi Cayman before March 26, 2021; 73% owned by WiMi Cayman after March 26, 2021 Name Background Ownership Fe-da Electronics Company Private Limited (“Fe-da Electronics”) • • • • 100% owned by VIYI Acquired in September 2020 Excel Crest Limited (“Excel Crest”) • • • -da 100% owned by Fe -da VIYI Technology Ltd. (“VIYI Ltd”) • • • • 100% owned by VIYI Shenzhen Weiyixin Technology Co., Ltd. (“Shenzhen Weiyixin” or “VIYI WFOE”) • • • • 100% owned by VIYI Ltd Shanghai Weimu Technology Co., Ltd. (“Shanghai Weimu”) • • • • 58% owned by VIYI Ltd Wisdom Lab Inc. (“Wisdom Lab”) • • • 100% owned by Fe -Da Viwo Technology Limited. (“Viwo Tech”) • • • • 55% owned by VIYI Ltd Shenzhen Viwotong Technology Co., Ltd. (“Viwotong Tech”) • • • 100% owned by Viwo Tech Shanghai Guoyu Information Technology Co., Ltd. (“Shanghai Guoyu”) • • • • 99% owned by Weidong, 1% owned by YY Online Name Background Ownership Kashi Guoyu Information Technology Co., Ltd. (“Kashi Guoyu”) • • • • 100% owned by Shanghai Guoyu Guangzhou Tapuyu Internet Technology Co., Ltd. (“Tapuyu”) • • • • -commerce 100% owned by Viwotong Tech Pengcheng Keyi (Xi’an) Intelligence Technology Co., Ltd. (“Pengcheng Keyi”) • • • • 100% owned by Viwotong Tech Contractual Arrangements Due to legal restrictions on foreign ownership and investment in, among other areas, value -added 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 -10 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 proceeds of such transfer is equal to or less than the principal of the loan under the loan agreement, the loan is considered interest -free Power of Attorney Pursuant to the power of attorney dated December 24, 2020, by Shenzhen Weiyixin and each shareholder of Shenzhen Yitian, respectively, each shareholder of Shenzhen Yitian irrevocably authorized Shenzhen Weiyixin or any person(s) designated by Shenzhen Weiyixin to exercise such shareholder’s voting rights in Shenzhen Yitian, 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 Shenzhen Yitian, and other shareholders’ voting rights permitted by PRC law and the Articles of Association of Shenzhen Yitian. The power of attorney remains irrevocable and continuously valid from the date of execution so long as each shareholder remains as a shareholder of Shenzhen Yitian. Spousal Consent Letters Pursuant to these letters, the spouses of the applicable shareholders of Shenzhen Yitian unconditionally and irrevocably agreed that the equity interest in Shenzhen Yitian held by them and registered in their names will be disposed of pursuant to the equity interest pledge agreement, the exclusive option agreement, and the power of attorney. Each of their spouses agreed not to assert any rights over the equity interest in Shenzhen Yitian held by their respective spouses. In addition, in the event that any spouse obtains any equity interest in Shenzhen Yitian 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, which grant Shenzhen Weiyixin effective control of Shenzhen Yitian and enable Shenzhen Weiyixin to receive all of their expected residual returns, the Company accounts for Shenzhen Yitian as a VIE on December 24, 2020. The reorganization under common control did not result in change in reporting entities of the Company therefore no impact to the Company’s consolidated financial statements as of December 31, 2020 and 2021. Due to the business strategy adjustment, Shenzhen Yitian and its subsidiaries no longer operate the business involving foreign investment restrictions since March |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Nature of business and organization [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 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 -based 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, ICinit 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 (35,434,146) and RMB (54,970,351) (USD 8,621,853) as of December 31, 2020 and 2021, respectively. The balance sheet amounts, with the exception of shareholders’ equity for WiMi HK and VIYI, at December 31, 2020 and 2021 were translated at RMB 1.00 to HKD 1.1882 and to HKD 1.2231, respectively. The average translation rates applied to statement of income accounts for the years ended December 31, 2019, 2020 and 2021 were RMB 1.00 to HKD 1.1363, HKD 1.1245 and to HKD 1.2048, respectively. The balance sheet amounts, with the exception of shareholders’ equity for WiMi Cayman, Skystar and Fe -da 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, 2021 are solely for the convenience of the reader and were calculated at the rate of RMB 1.00 to USD 0.1568, representing the mid -point Cash and cash equivalents Cash and cash equivalents primarily consists 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. 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 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, 2020 and 2021, allowance for accounts receivable amounted to RMB 2,734,421 and RMB 111,639,312 (USD 17,510,126), 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 Short-term investments Short -term Loans receivable Loans receivable represent 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 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. As of December 31, 2021, no allowance was deemed necessary. Full amount of loans receivable was subsequently collected in May 2022. 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 includes 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, 2020 and 2021, 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 -off Other receivable- related parties of RMB 27,589,530 (USD 4,327,294) was amount owed by ICinit to the Company has a result of deconsolidation which the balance was eliminated in consolidation prior to October 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 Useful Life Office electronic equipment 3 years Office furniture and fixtures 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 Deferred merger costs Prepaid merger costs consist primarily of expenses paid to attorneys, consultants, underwriters, and etc. related to VIYI’s merger transaction. The balance will be offset with the proceeds received after the close of the merger. 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 -than-temporary -than-temporary -than-temporary Prepayments Prepayments are payments made to developers for commercial and residential properties which were paid in full according to purchase contracts. 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, 2021, no allowance was deemed necessary. The properties are expected to be completed between 2023 and 2024. Intangible assets, net The Company’s intangible assets with definite useful lives primarily consist of copyrights, customer relationship, non -compete -hows -line 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 -04 Investment in unconsolidated subsidiary 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 -accounted -for-sale Impairment for long-lived assets Long -lived -lived 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 • • • 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 -step -step Prior to fiscal year 2019, the Company recognizes revenue when all of the following have occurred: (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred or services have been rendered, (iii) the price or fees are fixed or determinable, and (iv) the ability to collect is reasonably assured. Revenue is presented in the consolidated statements of income and comprehensive income net of sales taxes. The Company does not offer rights of refund of previously paid or delivered amounts, rebates, rights of return or price protection. In all instances, the Company limits the amount of revenue recognized to the amounts for which it has the right to bill its’ customers. The application of the five -step -step (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 on line 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 The Company provides central processing algorithm performance -based 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 sub categories: 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 sub categories: 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 -10-55-39 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 are 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 reviewed impairment of contract costs at December 31, 2021 and provided impairment of contract costs of approximately RMB3.0 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 267,514,061 317,157,896 436,475,875 68,459,287 Mobile games 51,667,363 19,910,956 13,498,964 2,117,252 Sales of semiconductor products — 385,538,235 448,958,274 70,417,095 Software development — 43,406,499 34,858,406 5,467,385 Total revenues 319,181,424 766,013,586 933,791,519 146,461,019 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 319,181,424 722,607,087 898,933,113 140,993,634 Services transferred over time — 43,406,499 34,858,406 5,467,385 Total revenues 319,181,424 766,013,586 933,791,519 146,461,019 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 303,062,432 367,163,638 593,803,869 93,135,478 Hong Kong revenues 295,037 264,404,450 118,590,946 18,600,459 International revenues 15,823,955 134,445,498 221,396,704 34,725,082 Total revenues 319,181,424 766,013,586 933,791,519 146,461,019 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 consist 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 semiconductor business segment, the cost of revenue consist primarily of the costs of products sold and third party software development costs. Advertising costs Advertising costs amounted to RMB 59,091, RMB 97,820 and RMB 1,800 (USD 282) for the years ended December 31, 2019, 2020 and 2021, respectively. Advertising costs are expensed as incurred and included in selling expenses. Research and development Research and development expenses include salaries and other compensation -related 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 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 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 |
Variable Interest Entity (_VIE_
Variable Interest Entity (“VIE”) | 12 Months Ended |
Dec. 31, 2021 | |
Nature of business and organization [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 is 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. The carrying amount of the VIEs’ consolidated assets and liabilities are as follows: December 31, December 31, December 31, RMB RMB USD Current assets 124,531,422 82,728,636 12,975,616 Property and equipment, net 362,130 24,385,762 3,824,798 Other noncurrent assets 472,662,535 493,404,511 77,388,289 Total assets 597,556,087 600,518,909 94,188,703 Total liabilities (258,081,528 ) (614,667,803 ) (96,407,893 ) Net assets 339,474,559 (14,148,894 ) (2,219,190 ) December 31, December 31, December 31, RMB RMB USD Current liabilities: Accounts payable 24,921,108 15,072,302 2,364,023 Deferred revenues 10,475,681 9,713,168 1,523,467 Other payables and accrued liabilities 4,287,545 9,240,553 1,449,339 Other payables – related parties — 12,725,539 1,995,944 Current portion of shareholder loans 62,244,928 20,000,000 3,136,910 Operating lease liabilities 366,794 108,556 17,027 Taxes payable 9,452,749 5,858,717 918,914 Intercompany payable* 122,842,378 474,812,478 74,472,211 Total current liabilities 234,591,183 547,531,313 85,877,835 Non-current shareholder loan 22,016,710 67,136,490 10,530,058 Operating lease liabilities – noncurrent 120,033 — — Deferred tax liabilities, net 1,353,602 — — Total liabilities 258,081,528 614,667,803 96,407,893 * Intercompany balances will be eliminated upon consolidation. The summarized operating results of the VIE’s are as follows: For the year For the year For the year For the year RMB RMB RMB USD Operating revenues 319,181,424 336,709,317 202,340,230 31,736,159 Gross profit 173,013,581 122,273,631 30,883,606 4,843,955 Income (loss) from operations 122,754,439 55,174,632 (25,262,236 ) (3,962,269 ) Net income (loss) 110,135,996 46,233,277 (159,401,372 ) (25,001,392 ) The summarized statements of cash flow of the VIE’s are as follows: For the year For the year For the year For the year RMB RMB RMB USD Net cash provided by operating activities 193,845,889 127,238,346 44,560,277 6,989,080 Net cash used in investing activities (126,445,437 ) (109,815,861 ) (49,269,310 ) (7,727,671 ) Net cash (used in) provided by financing activities (40,770,037 ) (50,000 ) 2,929,456 459,472 Effect of exchange rate on cash and cash equivalents (327,988 ) 1,479,386 (1,061,729 ) (166,527 ) Net increase in cash and cash equivalents 26,302,427 18,851,871 (2,841,306 ) (445,646 ) Cash and cash equivalents, beginning of year 14,095,423 40,397,850 59,249,721 9,293,053 Cash, cash equivalents and restricted cash, end of year 40,397,850 59,249,721 56,408,415 8,847,407 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, 2019 2020 2021 2021 RMB RMB RMB USD Cash and cash equivalents 40,397,850 59,249,721 55,965,855 8,777,993 Restricted cash — — 442,560 69,414 Total cash, cash equivalents and restricted cash 40,397,850 59,249,721 56,408,415 8,847,407 |
Business Combination
Business Combination | 12 Months Ended |
Dec. 31, 2021 | |
Business Combinations [Abstract] | |
Business combination | Note 4 Business combination Acquisition of Fe-da Electronics 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 -da -da -da -da least USD 3 million (approximately RMB 19.6 million); the second payment of USD 6 million (approximately RMB 39.1 million) is due on March 31, 2023 if the net income of Fe -da -da -da -da The main businesses of Fe -da -da -da -da The Company’s acquisition of Fe -da -weighted -da -related The following table summarizes the fair value of consideration to acquire Fe -da RMB USD Present value of cash to be paid by November 30, 2020 101,472,360 14,867,309 Present value of contingent cash installments 1,949,926 285,695 Total consideration at fair value 103,422,286 15,153,004 As of December 31, 2020 and 2021, acquisition payable amounted to RMB 1,864,131, net of discount of RMB 1,830,546, and RMB The change in fair value measurement of acquisition payable amounted to RMB 3,239,892 (USD 508,163) for the year ended December 31, 2021 and the acquisition payable decreased to RMB 0. 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 Fe -da Fair value Fair value RMB USD Cash and cash equivalents 2,413,276 353,583 Other current assets 42,183,452 6,180,544 Plant and equipment 9,930 1,455 Intangible assets 30,353,889 4,447,326 Other noncurrent assets 89,252 13,078 Total assets 75,049,799 10,995,986 Total liabilities (27,170,661 ) (3,980,933 ) Fair value of net assets acquired 47,879,138 7,015,053 Goodwill 55,543,148 8,137,951 Total consideration 103,422,286 15,153,004 Customer relationship, including the customer list, the awareness of customer views and expectations and continuous interactions with customers, with a fair value of approximately RMB 27.3 million (USD 4.0 million) and estimated finite useful life of 4 years and technology know -hows Approximately RMB 55.5 million (USD 8.1 million) of goodwill arising from the acquisition is mainly attributable to the excess of the consideration paid over the fair value of the net assets acquired that cannot be recognized separately as identifiable assets under U.S. GAAP, and comprise (a) the assembled work force and (b) the expected but unidentifiable business growth as a result of the synergy resulting from the acquisition. The amount of revenue and net income what resulted from the acquisition and included in the consolidated statements of operations and comprehensive income (loss) during the twelve months ended December 31, 2020 were RMB 124,413,884 (USD 19,067,554) and RMB 7,734,713 (USD 1,185,415), respectively. Unaudited pro forma revenue and net income for the year ended December 31, 2020 were RMB 478,653,124 (USD 73,357,925) and RMB 8,956,366 (USD 1,372,644), respectively as if the acquisition happened on January 1, 2020. Acquisitions of Shenzhen Yichong, Shenzheng Shengtang and Tianjin Yaodi On January 22, 2021, Shenzhen ICinit purchased 100% equity interests of Shenzhen Yichong Micro -Electronic -Electronic -Electronic The Company’s acquisitions of Shenzhen Yichong, Shenzheng Shengtang and Tianjin Yaodi were accounted for as business combination in accordance with ASC 805. The Company then allocated the fair value of consideration of Shenzhen Yichong, Shenzheng Shengtang and Tianjin 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 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 Shenzheng 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 Tianjin Yaodi and translated the fair value from USD to RMB using the exchange rate on May 28, 2021, 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 income (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 (USD 15,947,348) and RMB (783,032) (USD 120,999), respectively. The Company subsequently deconsolidated ICinit on October 1, 2021, as a result the above acquired companies were deconsolidated as of December 31, 2021. See Note 5 for details. 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 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. Pro forma results of operations for the acquisition described above have not been presented because it is not material to the consolidated statements of income and comprehensive income. 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 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 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. Pro forma results of operations for the acquisition described above have not been presented because it is not material to the consolidated statements of income and comprehensive income. |
Deconsolidation of VIDA and ICi
Deconsolidation of VIDA and ICinit | 12 Months Ended |
Dec. 31, 2021 | |
Deconsolidation of VIDA and ICinit [Abstract] | |
Deconsolidation of VIDA and ICinit | Note 5 — 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 (USD 6,000), 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 receivable 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 2,471,019 387,568 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 (USD 63,603). As result of deconsolidation, the Company recognized RMB 27,589,530 (USD 4,327,294) of related party receivable from ICinit, which was previously eliminated in consolidation. The balance was repaid to the Company on May Income from ICinit for the three months from October |
Short Term Investments
Short Term Investments | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Short term investments | Note 6 — Short term investments Short term investments consist of the following: December 31, December 31, December 31, RMB RMB USD Marketable securities (1) 32,878,252 33,540,301 5,260,646 Fair value disclosure: December 31, December 31, 2020 Level 1 Level 2 Level 3 RMB RMB RMB RMB Marketable securities 32,878,252 32,878,252 — — December 31, December 31, 2021 Level 1 Level 2 Level 3 RMB RMB RMB RMB Marketable securities 33,540,301 33,540,301 — — There is no transfer between the levels for the periods presented. (1) During the year ended December 31, 2020, the Company invested a total of approximately RMB 173.6 million in marketable securities and redeemed approximately RMB 151.1 million. During the year ended December 31, 2021, the Company invested a total of approximately RMB 149.1 million (USD 23.1 million) in marketable securities and redeemed approximately RMB 150.9 million (USD 23.4 million). The fair value change resulted in gains of approximately RMB 12.3 million and RMB 2.5 million (USD 0.4 million) for the years ended December 31, 2020 and 2021. |
Accounts Receivable, Net
Accounts Receivable, Net | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Accounts receivable, net | Note 7 — Accounts receivable, net Accounts receivable, net consisted of the following: December 31, December 31, December 31, RMB RMB USD Accounts receivable 175,349,044 137,875,301 21,625,124 Less: allowance for doubtful accounts (2,734,421 ) (111,639,312 ) (17,510,127 ) Accounts receivable, net 172,614,623 26,235,989 4,114,997 The following table summarizes the changes in allowance for doubtful accounts: December 31, December 31, December 31, RMB RMB USD Beginning balance 1,577,486 2,734,421 428,882 Addition 1,156,935 128,392,115 20,137,728 Deconsolidation of ICinit and subsidiaries — (19,487,224 ) (3,056,484 ) Ending balance 2,734,421 111,639,312 17,510,126 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 8 — Inventories Inventories consist of the following: December 31, December 31, December 31, RMB RMB USD Finished goods – holographic accessories 3,167,879 1,590,495 249,462 Finished goods – semiconductors 949,928 5,251,250 823,635 Total inventories 4,117,807 6,841,745 1,073,097 Inventory impairment amounted to RMB 8,116,218 (USD 1,272,992) for the year ended December |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment, net | Note 9 — Property and equipment, net Property and equipment, net consist of the following: December 31, December 31, December 31, RMB RMB USD Office electronic equipment 1,859,484 1,758,527 275,817 Office fixtures and furniture 88,577 41,392 6,492 Building — 24,825,710 3,893,801 Leasehold improvements 1,368,922 1,363,989 213,936 Subtotal 3,316,983 27,989,618 4,390,046 Less: accumulated depreciation (2,587,771 ) (3,150,073 ) (494,075 ) Total 729,212 24,839,545 3,895,971 Depreciation expense for the years ended December 31, 2019, 2020 and 2021 amounted to RMB 690,400, RMB 483,658 and RMB 1,124,655 (USD 176,397), respectively. Impairment loss amounted to |
Cost Method Investments
Cost Method Investments | 12 Months Ended |
Dec. 31, 2021 | |
Cost and Method Investments Disclosure [Abstract] | |
Cost method investments | Note 10 — Cost method investments Cost method investments consist of the following: December 31, December 31, December 31, RMB RMB USD 9.0% Investment (1 company in the AR and virtual reality (“VR”) areas) 45,000,000 45,000,000 7,058,048 8.0% Investment (2 companies in the AR and VR areas) 1,100,000 1,100,000 172,530 6.0% Investment (1 company in the AR, VR, software and robotic areas) 600,000 600,000 94,107 5.5% Investment (1 company in the AR, VR and game 600,000 600,000 94,107 5.0% Investment (21 and 22 companies in the AR, VR and digital marketing areas as of December 31, 2020 and 2021) 50,400,000 51,000,000 7,999,122 4.5% Investment (1 company in the VR medical treatment areas) 200,000 200,000 31,369 4.0% Investment (14 companies in the AR, VR, 3D animation and software areas) 8,400,000 8,400,000 1,317,502 3.5% Investment (2 companies in the AR and VR areas) 1,200,000 1,200,000 188,215 3.0% Investment (5 companies in the AR, VR and 3D animation areas) 3,900,000 3,900,000 611,698 2.0% Investment (4 companies in the AR, VR, 3D animation and software areas) 1,200,000 1,200,000 188,215 1.0% Investment (5 companies in the AR, VR, 3D animation, hardware and software areas) 1,450,000 1,450,000 227,426 Total 114,050,000 114,650,000 17,982,339 During the years ended December 31, 2019, 2020 and 2021, the Company totally made RMB 3,850,000, RMB 109,700,000 and RMB 600,000 (USD 94,107) in cost method investments, respectively. |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2021 | |
Intangible Assets, Net [Abstract] | |
Intangible assets, net | Note 11 — Intangible assets, net The Company’s intangible assets with definite useful lives primarily consist of copyrights, customer relationship, non -compete -hows December 31, December 31, December 31, RMB RMB USD Copyrights* 579,722 8,955,000 1,404,552 Customer relationship* 26,099,600 25,502,800 4,000,000 Non-compete agreements** 64,370,622 42,200,000 6,618,881 Technology know-hows** 14,709,556 2,852,016 447,327 Subtotal 105,759,500 79,509,816 12,470,760 Less: accumulated amortization (64,517,409 ) (51,628,879 ) (8,097,760 ) Intangible assets, net 41,242,091 27,880,937 4,373,000 * The Company’s subsidiary Shenzhen Kuxuanyou and Shenzhen Yiran, recorded impairment of RMB 278,679 (USD 43,710) for the year ended December 31, 2021. The addition of copy right of RMB 8,955,000 (USD 1,404,552) was from acquisition of Guoyu, see note 4. ** Micro Beauty acquired Skystar in 2017 to acquire 100% of the capital stock of Skystar for an aggregate consideration of RMB 58,450,000 (approximately USD 9.0 million). The fair value of non -complete -hows Amortization expense for the years ended December 31, 2019, 2020 and 2021 amounted to RMB 13,193,519, RMB 14,067,634 and RMB 17,400,708 (USD 2,729,222), respectively. The estimated amortization is as follows: Twelve months ending December 31, Estimated Estimated RMB USD 2022 8,737,103 1,370,376 2023 8,737,103 1,370,376 2024 7,143,178 1,120,376 2025 3,263,553 511,872 Thereafter — — Total 27,880,937 4,373,000 |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2021 | |
Deconsolidation of VIDA and ICinit [Abstract] | |
Goodwill | Note 12 — 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. The following table summarizes the components of acquired goodwill balances as of: December 31, December 31, December 31, RMB RMB USD Goodwill from Shenzhen Kuxuanyou acquisition (a) 87,908,370 — — Goodwill from Shenzhen Yidian acquisition (b) 137,060,340 137,060,340 21,497,301 Goodwill from Shenzhen Yitian acquisition (c) 92,990,256 92,990,256 14,585,105 Goodwill from Skystar acquisition (d) 25,170,478 — — Goodwill from Fe-da Electronics acquisition (e) 53,099,316 33,644,255 5,276,950 Goodwill from Guoyu acquisition (f) — 13,283,750 2,083,497 Goodwill 396,228,760 276,978,601 43,442,853 (a) Beijing WiMi acquired Shenzhen Kuxuanyou in 2015 to acquire 100% of the capital stock of Shenzhen Kuxuanyou for an aggregate consideration of RMB 113.0 million (approximately USD 16.5 million). The excess fair value of consideration over the identifiable assets acquired of RMB 87,908,370 (USD 13,472,754) was allocated to goodwill. Impairment loss of RMB 87,913,368 (USD 13,788,818) was recognized for the year ended December 31, 2021. (b) Beijing WiMi acquired Shenzhen Yidian in 2015 to acquire 100% of the capital stock of Shenzhen Yidian for an aggregate consideration of RMB 168.0 million (approximately USD 24.5 million). The excess fair value of consideration over the identifiable assets acquired of RMB 137,060,340 (USD 21,005,738) was allocated to goodwill. (c) Beijing WiMi acquired Shenzhen Yitian in 2015 to acquire 100% of the capital stock of Shenzhen Yitian for an aggregate consideration of RMB 192.0 million (approximately USD 28.0 million). The excess fair value of consideration over the identifiable assets acquired of RMB 160,990,256 (USD 24,673,214) was allocated to goodwill. Impairment loss of RMB 68,000,000 (USD 10,421,615) was recognized for the year ended December 31, 2016. (d) Micro Beauty acquired Skystar in 2017 to acquire 100% of the capital stock of Skystar for an aggregate consideration of RMB 58,450,000 (approximately USD 9.0 million). The excess fair value of consideration over the identifiable assets acquired of RMB 32,057,115 (USD 4,913,042) was allocated to goodwill. Impairment loss of RMB 7,276,957 and RMB 24,823,549 (USD 3,893,463) was recognized for the years ended December 31, 2020 and 2021. (e) VIYI acquired Fe -da -da (f) Weidong and YY Online acquired Shanghai Guoyu in 2021 to acquire 100% of the capital stock of Shanghai Guoyu for a net consideration of RMB 20,000,000 (approximately USD 3.1 million). The excess fair value of consideration over the identifiable assets acquired of RMB 13,283,750 (approximately USD 2.0 million) was allocated to goodwill for the central processing algorithm services segment. The changes in the carrying amount of goodwill allocated to reportable segments as of December 31, 2020 and 2021 are as follows: AR advertising AR Semiconductor Total Total RMB RMB RMB RMB USD As of December 31, 2019 137,060,340 215,019,494 — 352,079,834 55,222,145 Add: acquisition of Fe-da Electronics — — 55,543,148 55,543,148 8,711,694 Less: impairment loss — (7,276,957 ) — (7,276,957 ) (1,141,358 ) Translation difference — (1,673,433 ) (2,443,832 ) (4,117,265 ) (645,775 ) As of December 31, 2020 137,060,340 206,069,104 53,099,316 396,228,760 62,146,706 Add: acquisition of Guoyu 13,283,750 — — 13,283,750 2,083,497 Less: impairment loss — (112,736,917 ) (18,457,742 ) (131,194,659 ) (20,577,295 ) Translation difference — (341,931 ) (997,319 ) (1,339,250 ) (210,055 ) As of December 31, 2021 150,344,090 92,990,256 33,644,255 276,978,601 43,442,853 The Company tests for impairment annually, and between annual tests if the Company becomes aware of an event or a change in circumstances that would indicate the carrying value may be impaired. Accordingly, the Company performed a quantitative assessment of the Company’s fair value of goodwill as of December 31, 2020 using an income approach with assumptions that are considered level 3 inputs with the assistance of a third party valuation firm. The Company concluded that the carrying value of Skystar reporting unit exceeded its respective fair value, resulting in a goodwill impairment of approximately RMB 7.3 million (USD 1.1 million) for the year ended December 31, 2020. The carrying value of Skystar, Fe -da -lived -lived |
Other Payables and Accrued Liab
Other Payables and Accrued Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Other Payables and Accrued Liabilities [Abstract] | |
Other payables and accrued liabilities | Note 13 — 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 1,880,897 2,011,702 315,524 Other payables and accrued expenses 60,328 3,446,740 540,606 Accrued interest payable 3,129,399 8,197,112 1,285,680 Total other payables and accrued liabilities 5,070,624 13,655,554 2,141,810 |
Related Party Balances and Tran
Related Party Balances and Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related party balances and transactions | Note 14 — Related party balances and transactions Loans — related party The Company borrows funds from Jie Zhao, the Company’s major shareholder for operation purpose. The loans are interest free, no collateral and are due in 2021. During the year ended December 31, 2018, the Company borrowed RMB 14,581,993 and repaid RMB 14,826,000. During the year ended December 31, 2019, the Company borrowed RMB 13,000,000 and repaid RMB 129,474,000. During the year ended December 31, 2020, the Company repaid RMB 4,850,000 (USD 743,306) to Jie Zhao. During the year ended December 31, 2021, the Company repaid the remaining balance of RMB 6,154,468 (USD 965,000) to Jie Zhao. 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 (USD 14,023,203) during the year ended December 31, 2020. The Company also borrowed additional RMB 96,300,000 (USD 14,758,847) during the year ended December 31, 2020. The Company borrowed additional RMB 42,600,000 (USD 6,681,619) repaid RMB 35,763,510 (USD 6,154,468) during the year ended December 31, 2021.The loan has an annual interest rate of 7% and is due in 2021 and 2022. During the year ended December 31, 2019, 2020 and 2021, interest expense related to this loan, included in finance expense, amounted to RMB 290,208, RMB 2,281,611 and RMB 5,625,293 (USD 882,302). The Company’s subsidiary Shanghai Weimu borrowed a total of RMB 5,616,000 (USD 880,867) from Gou Lei (Non -controlling The Company’s subsidiary Shenzhen Yiyun borrowed a total of RMB 16,100,000 (USD 2,525,213) 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. Name of Related Parties Relationship Nature December 31, December 31, December 31, RMB RMB USD Jie Zhao Chairman of WiMi Cayman Loan 6,261,665 — — Yang Cui Executive director of Beijing WiMi Loan — 16,100,000 2,525,213 Shanghai Junei Internet Co. Under common control of Jie Zhao Loan 80,300,000 71,036,490 11,141,755 Total: 86,561,665 87,136,490 13,666,968 Current portion of related party loan 63,876,153 20,000,000 3,136,910 Related party loan – non-current 22,685,512 67,136,490 10,530,058 The maturities schedule is as follows: Twelve months ending December 31, RMB USD 2022 20,000,000 3,136,910 2023 67,136,490 10,530,058 Total 87,136,490 13,666,968 As result of deconsolidation of ICinit on October |
Banking Facility
Banking Facility | 12 Months Ended |
Dec. 31, 2021 | |
Banking Facility [Abstract] | |
Banking facility | Note 15 — Banking facility Outstanding balance of banking facility consisted of the following: Lender Term Interest rate Collateral/Guarantee December 31, December 31, December 31, RMB RMB USD DBS Bank, Ltd. (“DBS”) July 8, 2020 to February 28, 2021 DBS Prevailing Cost of Funds +2.5% (Approximately 5%-5.5%) Guaranteed by Mr. Huang Guanchao (Fe-da Electronics’ former director) and Mr. Lim Tzea (Fe-da Electronics’ general manager and director) and Mr. Lim Tzea’s assigned life insurance 13,049,800 — — On July 8, 2020, Fe -da -Da -DA During the year ended December 31, 2020, Fe -da -da -da |
Taxes
Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Taxes | Note 16 — Taxes Income tax Cayman Islands Under the current laws of the Cayman Islands, WiMi Cayman 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, Excel Crest, 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 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 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 -apply -tech Shenzhen Yiruan, Shenzhen Yiyun, Shenzhen Yidian and Shenzhen Duodian are qualified as software companies by local taxing authority, and obtained two years of tax exempt status and three years at reduced income tax rate of 12.5%. After the initial 5 years, the Company can apply for the reduced rate in a yearly basis. In addition, 75% of R&D expenses of Shenzhen Kuxuanyou and Shenzhen Yiruan are subject to additional deduction from pre -tax Korgas Shengyou, Korgas WiMi, Korgas Duodian, Korgas 233 and Korgas Weidong were formed and registered in Korgas in Xinjiang Provence, China from 2016 to 2020, and Kashi Duodian was formed and registered in Kashi in Xinjiang Provence, 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, 2019, 2020 and 2021 amounted to RMB 23,679,290, RMB 14,543,996 and RMB 18,153,904 (USD 2,847,358), respectively. The Company’s basic and diluted earnings per shares would have been lower by RMB 0.24 and RMB 0.22 per share for the year ended December 31, 2019 without the preferential tax rate reduction, respectively. The Company’s basic and diluted earnings per shares would have been lower by RMB 0.11 (USD 0.02) and RMB 0.11 (USD 0.02) per share for the year ended December 31, 2020 without the preferential tax rate reduction, respectively. The Company’s basic and diluted earnings per shares would have been lower by RMB 0.14 (USD 0.02) and RMB 0.14 (USD 0.02) per share for the year ended December 31, 2021 without the preferential tax rate reduction, respectively. Significant components of the benefit of (provision for) income taxes are as follows: For the year For the year For the year For the year RMB RMB RMB USD Current (4,644,300 ) (4,487,629 ) (2,189,629 ) (343,434 ) Deferred 1,515,220 1,582,948 3,024,851 474,434 (Provision for) benefit of income taxes (3,129,080 ) (2,904,681 ) 835,222 131,000 The following table reconciles China statutory rates to the Company’s effective tax rate: For the year For the year For the year China statutory income tax rate 25.0 % 25.0 % 25.0 % Preferential tax rate in China (22.5 )% 8.3 % (14.0 )% Tax rate difference outside China (1) — (35.9 )% (7.0 )% Change in valuation allowance 0.4% (0.4 )% 4.7 % Additional R&D deduction in China (0.5 )% 2.0 % (8.5 )% Permanent difference 0.6 % (1.0 )% 0.1 % Effective tax rate 3.0 % (2.0 )% 0.3 % (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 160,287 142,316 22,322 Impairment loss from inventories — 1,014,527 159,124 Net operating loss carryforwards 2,080,433 11,086,999 1,738,946 Less: valuation allowance (2,080,433 ) (12,101,526 ) (1,898,070 ) Deferred tax assets, net 160,287 142,316 22,322 Deferred tax liabilities: Recognition of intangible assets arising from business combinations 6,144,892 5,396,459 846,411 Total deferred tax liabilities, net 5,984,605 5,254,143 824,089 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 evidences to the extent it could be objectively verified. The Company’s cumulative net operating loss (“NOL”) of approximately RMB 44,347,998 (USD 6,955,785) as of December 31, 2021 was mainly from NOL of Beijing WiMi, Shenzhen Yidian and Shenzhen Duodian, Shenzhen Yitian, Shanghai Weimu and Wuhan 233. The NOL starts to expire in 2024. Management considers projected future losses outweighs other factors and made a full allowance of related deferred tax assets. 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, 2020 and 2021, 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, 2019, 2020 and 2021 and also does not anticipate any significant increases or decreases in unrecognized tax benefits in the next 12 months from December 31, 2021. 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 1,555,978 168,384 26,410 Income taxes payable 9,704,988 6,217,156 975,134 Other taxes payable 254,658 39,206 6,149 Totals 11,515,624 6,424,746 1,007,693 |
Concentration of Risk
Concentration of Risk | 12 Months Ended |
Dec. 31, 2021 | |
Risks and Uncertainties [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, 2021, cash balance of RMB 278,803,307 (USD 43,729,051) was deposited with financial institutions located in China, of which RMB 260,939,899 (USD 40,927,255) 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, 2021, cash balance of HKD 573,226,984, approximately RMB 468,670,382 (USD 73,508,851) was maintained at financial institutions in Hong Kong, of which HKD 568,115,902 approximately RMB 464,491,561 (USD 72,853,422) 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, 2021, cash balance of SGD 816,155 approximately RMB 4,024,785 (USD 631,270) was maintained at DI Scheme banks in Singapore, of which SGD 666,155 approximately RMB 3,285,075 (USD 515,249) was subject to credit risk. In the US, the insurance coverage of each bank is USD 250,000. As of December 31, 2021, cash balance of USD 133,111 (RMB 848,673) 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, 2021, a total of RMB 33,131,501 (USD 5,196,528) 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 years ended December 31, 2019 and 2020, no customer accounted for more than 10% of the Company’s total revenues. For the year ended December 2021, one customer accounted for 13.6% of the Company’s total revenues. As of December 31, 2020, three customers accounted for 19.1%, 14.0% and 12.2% of the Company’s accounts receivable. As of December 31, 2021, three customer accounted for 32.4%, 15.1% and 14.1% of the Company’s accounts receivable. Vendor concentration risk For the year ended December 31, 2019, one vendor accounted for 26.6% of the Company’s total purchases. For the year ended December 31, 2020, three vendors accounted for 15.6%, 12.4% and 10.7% of the Company’s total purchases. For the year ended December 31, 2021, one vendor accounted for 13.7% of the Company’s total purchases. As of December 31, 2020, four vendors accounted for 25.9%, 18.6%, 13.9% and 11.0% of the Company’s accounts payable, respectively. As of December 31, 2021, four vendors accounted for 24.6%, 12.6%, 12.2% and 10.7% of the Company’s accounts payable. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Lease [Abstract] | |
Leases | Note 18 — Leases Lease commitments 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 The Company has entered into eleven non -cancellable -02 Operating lease expenses are allocated between the cost of revenue and selling, general, and administrative expenses. Rent expense for the years ended December 31, 2019, 2020 and 2021 was RMB 3,707,039, RMB 3,770,003 and RMB 4,672,111 (USD 732,800), respectively. The maturity of the Company’s lease obligations is presented below: Twelve Months Ending December 31, Operating Operating RMB USD 2022 2,270,181 356,068 2023 941,699 147,701 2024 71,287 11,181 2025 71,287 11,181 2026 35,644 5,591 Total lease payments 3,390,098 531,722 Less: Interest (157,086 ) (24,638 ) Present value of lease liabilities 3,233,012 507,084 The Company has operating leases commitment of RMB 552,223 (USD 86,613) with a term less than one year as of December |
Shareholders' equity
Shareholders' equity | 12 Months Ended |
Dec. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
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 On March 31, 2020, the Company completed its IPO of 4,750,000 American Depository Shares (“ADS”) and the exercise of over -allotment 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 USD 79.7 million (RMB 508.1 million) after deducting underwriting commission and other expenses of approximately USD 6.0 million (RMB 38.9 million). Approximately RMB 108.5 Warrants The Company’s outstanding warrants are classified as equity since they qualify for exception from derivative accounting as they are considered to be indexed to the Company’s own stock and require net share settlement. The fair value of the warrants of RMB 108.5 -Scholes-Merton -in Annual dividend yield — Expected life (years) 2.0 Risk-free interest rate 0.92 % Expected volatility 180.03 % As of December 31, 2021, 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 1.25 years. Following is a summary of the status of warrants outstanding and exercisable as of December 31, 2021: Warrants Weighted Warrants outstanding, as of December 31, 2018 — $ — Issued — — Exercised — — Expired — — Warrants outstanding, as of December 31, 2019 — — Issued — — Exercised — — Expired — — Warrants outstanding, as of December 31, 2020 — — Issued 4,469,334 $ 8.6 Exercised — — Expired — — Warrants outstanding, as of December 31, 2021 4,469,334 $ 8.6 Warrants exercisable, as of December 31, 2021 4,469,334 $ 8.6 Preferred shares On November 22, 2018, the Company entered into share purchase agreement with two institutional investors pursuant to which the investors purchased 8,611,133 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. The Company recorded compensation expense of RMB 189,064,940 for the year ended December 31, 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 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 As of December 31, 2021, total of 16,038,240 Class B ordinary shares were granted and issued under the 2020 Plan. For the years ended December 31, 2019, 2020 and 2021, the Company recorded nil 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 WFOE, Lixin Technology, SZ Weiyixin, SH Weimu, Beijing WiMi and Shenzhen Yitian (collectively “WiMi 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 -tax -tax -owned 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, 2021, amounts restricted are the paid -in-capital Statutory reserve As of December 31, 2020 and 2021, WiMi PRC entities collectively attributed RMB 24,003,483 and RMB 28,573,157 (USD 4,481,572), of retained earnings for their statutory reserves, respectively. |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 20 — Commitments and contingencies Contingencies From time to time, the Company is party to certain legal proceedings, as well as certain asserted and un -asserted 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. Coronavirus (“COVID-19”) The ongoing outbreak of the novel coronavirus (COVID -19 -19 -March -from-home -19 Legal proceedings The Company’s VIE Shenzhen Yiyun filed a lawsuit in September 2021 where Shenzhen Yiyun sued three companies for breach of contract and seeking damages of approximately RMB 364,000 (USD 57,000). In March 2020, Shenzhen Yiyun was awarded requested damages by People’s Court of Shenzhen Qianhai District. The three companies subsequently filed appeal with the Intermediate People’s Court of Shenzhen in May 2020 and the appeal was overruled by the court in November 2020. The three companies then filed suit with People’s Court of Shenzhen Qianhai District in August 2021 and sued Shenzhen Yiyun for breach of contract and seeking damages of approximately RMB 313,000 (USD 49,000) plus applicable fees. The court dismissed the case in December 2021. The three companies filed appeal with the Intermediate People’s Court of Shenzhen in February 2022 and at the same time filed for asset protection with the court. The case is now under review by the court and the asset protection for the three companies was granted and a total of RMB 442,560 (USD 69,414) of Shenzhen Yiyun’s cash was restricted from period of September Yingke network technology (Hainan) Co., Ltd., the plaintiff, filed a lawsuit against Shenzhen Kuxuanyou, the defendant, for a service contract regarding the plaintiff’s RMB 673,537 (USD 105,641) of unconsumed recharge and the corresponding loss of interest on capital occupation, as well as the penalty of RMB 322,939 (USD 50,652). If the liability for breach of contract agreed by both parties and resulting in punishment is determined by the court as the cause of the Company, the relative’s party’s lawsuit may be supported, and the Company may be faced with the legal risk of returning the unused recharge and paying liquidated damages. The management of the Company thinks that there is more than 50% possibility for the company to compensate the liquidated damages and refund the unconsumed recharge, so the provision for losses was made. |
Segments
Segments | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Segments | Note 21 — 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, 2019, 2020 and 2021: AR AR Total RMB RMB RMB Revenues 267,514,061 51,667,363 319,181,424 Cost of revenues 140,716,036 5,451,807 146,167,843 Gross profit 126,798,025 46,215,556 173,013,581 Depreciation and amortization 9,455,226 4,428,693 13,883,919 Total capital expenditures 161,505 34,493 195,998 AR AR Semiconductor Total RMB RMB RMB RMB Revenues 307,328,308 29,740,544 428,944,734 766,013,586 Cost of revenues 211,297,881 3,137,805 382,143,014 596,578,700 Gross profit 96,030,427 26,602,739 46,801,720 169,434,886 Depreciation and amortization 9,505,919 3,155,190 1,890,183 14,551,292 Total capital expenditures 94,964 20,897 368,913 484,774 AR AR Semiconductor Total Total RMB RMB RMB RMB USD Revenues 435,917,971 14,056,868 483,816,680 933,791,519 146,461,019 Cost of revenues 254,217,297 4,385,783 425,620,752 684,223,832 107,317,445 Gross profit 181,700,674 9,671,085 58,195,928 249,567,687 39,143,574 Depreciation and amortization 5,936,500 5,385,869 7,202,994 18,525,363 2,905,620 Total capital expenditures 23,782,060 17,120 1,366,302 25,165,482 3,947,093 Total assets as of: December 31, December 31, December 31, RMB RMB USD AR advertising services 532,715,074 1,306,152,502 204,864,171 AR entertainment 165,442,969 12,487,702 1,958,639 Semiconductor business 474,263,642 186,388,493 29,234,201 Total assets 1,172,421,685 1,505,028,697 236,057,011 The Company’s operations are primarily based in the PRC, where the Company derives a substantial portion of their revenues. Management also review 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 303,062,432 367,163,638 593,803,869 93,135,478 Hong Kong revenues 295,037 264,404,450 118,590,946 18,600,459 International revenues 15,823,955 134,445,498 221,396,704 34,725,082 Total revenues 319,181,424 766,013,586 933,791,519 146,461,019 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent events | Note 22 — Subsequent events 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. |
Condensed financial information
Condensed financial information of the parent company | 12 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Financial Information of the Parent Company | Note 23 — 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 -08 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 PARENT COMPANY BALANCE SHEETS December 31, December 31, December 31, RMB RMB USD ASSETS CURRENT ASSETS Cash in bank 41,981,726 402,451,863 63,122,773 Restricted cash 13,088,949 — — Short term investment 32,878,252 33,540,301 5,260,646 Prepaid expenses 1,589,372 — — Other receivables – intercompany 345,178,017 522,047,391 81,880,796 Total current assets 434,716,316 958,039,555 150,264,215 OTHER ASSETS Other receivable – related parties — 5,738,130 900,000 Investment in subsidiaries 571,354,800 300,285,822 47,098,487 Total assets 1,006,071,116 1,264,063,507 198,262,702 LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES Shareholder loan 1,631,225 — — Other payables – intercompany 6,524,900 — — Total current payables 8,156,125 — — OTHER LIABILITIES Non-current shareholder loan 668,802 — — Total liabilities 8,824,927 — — COMMITMENTS AND CONTINGENCIES 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, 2020 and 2021 13,095 13,095 2,054 Class B ordinary shares, USD 0.0001 par value, 466,967,730 shares authorized, 130,953,843 and 153,300,513 shares issued and outstanding of December 31, 2020 and 2021 87,539 102,127 16,018 Additional paid-in capital 932,368,293 1,454,680,407 228,160,109 Retained earnings (accumulated deficit) 76,207,925 (164,334,928 ) (25,775,198 ) Statutory reserves 24,003,483 28,573,157 4,481,572 Accumulated other comprehensive loss (35,434,146 ) (54,970,351 ) (8,621,853 ) Total shareholders’ equity 997,246,189 1,264,063,507 198,262,702 Total liabilities and shareholders’ equity 1,006,071,116 1,264,063,507 198,262,702 PARENT COMPANY STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) For the Years Ended December 31, 2019 2020 2021 2021 RMB RMB RMB USD OPERATING EXPENSES General and administrative (7,972,189 ) (8,400,720 ) (10,704,897 ) (1,679,015 ) Research and development — (43,402,651 (27,394,359 ) (4,296,683 ) Stock compensation — (191,418,458 ) (10,582,557 ) (1,659,827 ) Total operating expenses (7,972,189 ) (243,221,829 ) (48,681,813 ) (7,653,525 ) LOSS FROM OPERATIONS (7,972,189 ) (243,221,829 ) (48,681,813 ) (7,653,525 ) OTHER INCOME (EXPENSE) Investment income — 12,284,332 2,491,671 390,807 Interest income 1,025,954 37,679 2,408 378 Finance expense (5,456 ) (32,259 ) (21,282 ) (3,338 ) Other expenses, net — (147 ) 503,806 79,020 Equity income (loss) of subsidiaries 109,156,163 79,764,356 (190,267,969 ) (29,842,682 ) Total other income (loss), net 110,176,661 92,053,961 (187,291,366 ) (29,375,815 ) NET INCOME (LOSS) 102,204,472 (151,167,868 ) (235,973,179 ) (37,011,340 ) FOREIGN CURRENCY TRANSLATION ADJUSTMENT 1,589,076 (38,531,887 ) (19,536,206 ) (3,064,166 ) COMPREHENSIVE INCOME (LOSS) 103,793,548 (189,699,755 ) (255,509,385 ) (40,075,506 ) PARENT COMPANY STATEMENTS OF CASH FLOWS For the Years Ended December 31, 2019 2020 2021 2021 RMB RMB RMB USD CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) 102,204,472 (151,167,868 ) (235,973,179 ) (37,011,340 ) Adjustments to reconcile net income to cash used in operating activities: Stock compensation expense — 191,418,458 10,582,557 1,659,827 Gain from short term investment — (12,284,332 ) (2,491,671 ) (390,807 ) Equity (income) loss of subsidiaries and VIEs (109,156,163 ) (79,764,356 ) 190,267,969 29,842,682 Change in operating assets and Intercompany (62,298,143 (295,669,805 ) (199,216,770 ) (31,246,258 ) Prepaid expenses — (1,680,156 ) 1,571,484 246,480 Net cash used in operating (69,249,834 ) (349,148,059 ) (235,259,610 ) (36,899,416 ) CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of short term investments — (173,557,366 ) (98,023,653 ) (15,374,571 ) Redemptions of short term investments — 151,096,293 99,084,663 15,540,986 Long term investment in subsidiaries — (202,168,656 ) 870,953 136,605 Net cash (used in) provided by investing activities — (224,629,729 ) 1,931,963 303,020 CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from issuance of Series A convertible preferred shares — — Proceeds from public offerings, net — 572,812,469 508,132,968 79,698,381 Repayment to related party loans — — (2,274,154 ) (356,691 ) Sale of subsidiary’s noncontrolling — — 87,369,300 13,703,484 Net cash provided by financing — 572,812,469 593,228,114 93,045,174 EFFECT OF EXCHANGE RATE ON 1,448,063 (14,014,753 ) (12,519,279 ) (1,963,594 ) CHANGES IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH (67,801,772 ) (14,980,072 ) 347,381,188 54,485,184 CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning 137,852,519 70,050,747 55,070,675 8,637,589 CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of year 70,050,747 55,070,675 402,451,863 63,122,773 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, 2019 2020 2021 2021 RMB RMB RMB USD Cash and cash equivalents 70,050,747 41,981,726 402,451,863 63,122,773 Restricted cash — 13,088,949 — — Total cash, cash equivalents and restricted cash shown in the parent company statements of cash flows 70,050,747 55,070,675 402,451,863 63,122,773 |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Nature of business and organization [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 |
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 -based |
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, ICinit 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 (35,434,146) and RMB (54,970,351) (USD 8,621,853) as of December 31, 2020 and 2021, respectively. The balance sheet amounts, with the exception of shareholders’ equity for WiMi HK and VIYI, at December 31, 2020 and 2021 were translated at RMB 1.00 to HKD 1.1882 and to HKD 1.2231, respectively. The average translation rates applied to statement of income accounts for the years ended December 31, 2019, 2020 and 2021 were RMB 1.00 to HKD 1.1363, HKD 1.1245 and to HKD 1.2048, respectively. The balance sheet amounts, with the exception of shareholders’ equity for WiMi Cayman, Skystar and Fe -da |
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, 2021 are solely for the convenience of the reader and were calculated at the rate of RMB 1.00 to USD 0.1568, representing the mid -point |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents primarily consists 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. 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 |
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, 2020 and 2021, allowance for accounts receivable amounted to RMB 2,734,421 and RMB 111,639,312 (USD 17,510,126), 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 |
Short-term investments | Short-term investments Short -term |
Loans receivable | Loans receivable Loans receivable represent 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 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. As of December 31, 2021, no allowance was deemed necessary. Full amount of loans receivable was subsequently collected in May 2022. |
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 includes 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, 2020 and 2021, 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 -off Other receivable- related parties of RMB 27,589,530 (USD 4,327,294) was amount owed by ICinit to the Company has a result of deconsolidation which the balance was eliminated in consolidation prior to October |
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 Useful Life Office electronic equipment 3 years Office furniture and fixtures 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 |
Deferred merger costs | Deferred merger costs Prepaid merger costs consist primarily of expenses paid to attorneys, consultants, underwriters, and etc. related to VIYI’s merger transaction. The balance will be offset with the proceeds received after the close of the merger. |
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 -than-temporary -than-temporary -than-temporary |
Prepayments | Prepayments Prepayments are payments made to developers for commercial and residential properties which were paid in full according to purchase contracts. 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, 2021, no allowance was deemed necessary. The properties are expected to be completed between 2023 and 2024. |
Intangible assets, net | Intangible assets, net The Company’s intangible assets with definite useful lives primarily consist of copyrights, customer relationship, non -compete -hows -line |
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 -04 |
Investment in unconsolidated entities | Investment in unconsolidated subsidiary 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 -accounted -for-sale |
Impairment for long-lived assets | Impairment for long-lived assets Long -lived -lived |
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 • • • 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 -step -step Prior to fiscal year 2019, the Company recognizes revenue when all of the following have occurred: (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred or services have been rendered, (iii) the price or fees are fixed or determinable, and (iv) the ability to collect is reasonably assured. Revenue is presented in the consolidated statements of income and comprehensive income net of sales taxes. The Company does not offer rights of refund of previously paid or delivered amounts, rebates, rights of return or price protection. In all instances, the Company limits the amount of revenue recognized to the amounts for which it has the right to bill its’ customers. The application of the five -step -step (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 on line 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 The Company provides central processing algorithm performance -based 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 sub categories: 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 sub categories: 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 -10-55-39 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 are 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 reviewed impairment of contract costs at December 31, 2021 and provided impairment of contract costs of approximately RMB3.0 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 267,514,061 317,157,896 436,475,875 68,459,287 Mobile games 51,667,363 19,910,956 13,498,964 2,117,252 Sales of semiconductor products — 385,538,235 448,958,274 70,417,095 Software development — 43,406,499 34,858,406 5,467,385 Total revenues 319,181,424 766,013,586 933,791,519 146,461,019 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 319,181,424 722,607,087 898,933,113 140,993,634 Services transferred over time — 43,406,499 34,858,406 5,467,385 Total revenues 319,181,424 766,013,586 933,791,519 146,461,019 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 303,062,432 367,163,638 593,803,869 93,135,478 Hong Kong revenues 295,037 264,404,450 118,590,946 18,600,459 International revenues 15,823,955 134,445,498 221,396,704 34,725,082 Total revenues 319,181,424 766,013,586 933,791,519 146,461,019 |
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 consist 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 semiconductor business segment, the cost of revenue consist primarily of the costs of products sold and third party software development costs. |
Advertising costs | Advertising costs Advertising costs amounted to RMB 59,091, RMB 97,820 and RMB 1,800 (USD 282) for the years ended December 31, 2019, 2020 and 2021, 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 |
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 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. PRC tax returns filed in 2019 to 2021 are subject to examination by any applicable tax authorities. |
Other Income, net | Other Income, net Other Income includes government subsidies which are amounts granted by local government authorities as an incentive for companies to promote development of the local technology industry. The Company receives government subsidies related to government sponsored projects, and records such government subsidies as a liability when it is received. The Company records government subsidies as other income when there is no further performance obligation. Total government subsidies amounted to RMB 1,356,800 and RMB 1,097,498 and RMB 1,035,527 (USD 162,418) for the years ended December 31, 2019, 2020 and 2021, respectively. Other income also includes RMB 851,583, RMB 1,282,807 and RMB 2,429,701 (USD 381,088) of input VAT credit the Company redeemed during the years ended December 31, 2019, 2020 and 2021. As part of VAT reform in 2019, from April 1, 2019 to December 31, 2021, a taxpayer in certain service industries could claim additional 10% of input VAT credit based on total input VAT paid to suppliers, the credit was applied to offset with the Company’s VAT payable. |
Leases | Leases The Company adopted FASB ASU 2016 -02 -lease 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 -line The Company reviews the impairment of its ROU assets consistent with the approach applied for its other long -lived -lived -tax -tax |
Stock-based compensation | Stock-based compensation The Company records stock -based -employees -based -line The Company accounts for share -based -based -based |
Warrants | Warrants The Company accounts for warrants as either equity -classified -classified 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 -cash -for-fixed -40-25 |
Employee benefit | Employee benefit The full -time -sponsored |
Noncontrolling interests | Noncontrolling interests Noncontrolling interests consists of an aggregate of 47.0% of the equity interest of VIDA, 49.0% of the equity interest of ICinit and 13.5% of the equity interest of VIYI as of December 31, 2020, Noncontrolling interests subscriptions receivable amounted to RMB 88,671,062 as of December 31, 2020, which includes RMB 172,528 from two individual investors of VIDA, RMB 412,384 from one individual investor of ICinit, and RMB 88,086,150 (USD 13,500,000) from Bofeng Investment Limited, Bravo Great Enterprises Limited and Universal Winnings Holding Limited which was subsequently received in January 2021. Noncontrolling interests consists of an aggregate of 47.0% of the equity interest of VIDA, 27% of the equity interest of VIYI as of December Noncontrolling interests subscriptions receivable amounted to RMB 172,528 from two individual investors of VIDA as of December Excess of contribution received from noncontrolling shareholders over carrying value of the entity is recorded in additional paid in capital. The noncontrolling interests are presented in the consolidated balance sheets, separately from equity attributable to the shareholders of the Company. Noncontrolling interests in the results of the Company are presented on the face of the consolidated statement of operations as an allocation of the total income or loss for the year between non -controlling Noncontrolling interests consist of the following: December 31, December 31, December 31, RMB RMB USD VIDA 4,630,583 (31,675,783 ) (4,968,205 ) ICinit 781,772 — — VIYI 95,064,441 107,249,069 16,821,536 Noncontrolling interests subscriptions receivable (88,671,062 ) (172,528 ) (27,060 ) Total noncontrolling interests 11,805,734 75,400,758 11,826,271 |
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 |
Statutory reserves | Statutory reserves Pursuant to the laws applicable to the PRC, PRC entities must make appropriations from after -tax -distributable -tax -end -tax -end |
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. |
Reclassification | Reclassification Certain prior year amounts have been reclassified to conform to the current year presentation mainly reclassifying prepaid services fees from other receivables and prepaid expenses. The reclassification have no effect on the Company’s reported total assets, revenues or net income. |
Recently issued accounting pronouncements | Recently issued accounting pronouncements In May 2019, the FASB issued ASU 2019 -05 -13 -13 -13 -for-sale -30 -for-Sale -13 -useful -10 -02 -for-profit In January 2020, the FASB issued ASU 2020 -01 -10-15-141 settlement of the forward contract or exercise of the purchased option, individually or with existing investments, the underlying securities would be accounted for under the equity method in ASC 323 or the fair value option in accordance with ASC 825. The ASU is effective for interim and annual reporting periods beginning after December 15, 2020. Early adoption is permitted, including adoption in any interim period. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements. In October 2020, the FASB issued ASU 2020 -08 -20 -08 -08 In October 2020, the FASB issued ASU 2020 -10 -10 In October 2021, the FASB issued ASU 2021 -08 -10 -Overalls -08 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, 2021 | |
Nature of business and organization [Abstract] | |
Schedule consolidated financial statements reflect the activities of WiMi Cayman and each of entities | Name Background Ownership WiMi HK • • • 100% owned by WiMi Cayman VIDA Semicon Co., Limited (“VIDA”) • • • 53% owned by WiMi HK Name Background Ownership ICinit Limited (“ICinit”) • • • 51% owned by WiMi HK before October 1, 2021; 49% owned by WiMi HK after October 1, 2021 Shenzhen ICinit Technology Co., Ltd. (“SZ ICinit”) • • • • 100% owned by ICinit Shenzhen Yichong Micro-Electronic Technology Co., Ltd. (“Shenzhen Yichong”) • • • • 100% owned by SZ ICinit Acquired in January 2021 Shenzhen Saineng Micro-Electronic Electronic Co., Ltd. (“Shenzhen Saineng”) • • • • 80% owned by Shenzhen Yichong Shenzhen Shengtang Micro-Electronic Technology Co., Ltd. (“Shenzhen Shengtang”) • • • • 100% owned by SZ ICinit Acquired in March 2021 Tianjin Yaodi Tomorrow Technology Co., Ltd. (“Tianjin Yaodi”) • • • • 100% owned by SZ ICinit Acquired in May 2021 WiMi WFOE • • • • 100% owned by WiMi HK Name Background Ownership Beijing WiMi • • • • VIE of WiMi WFOE Shenzhen Kuxuanyou Technology Co., Ltd. • • • • 100% owned by Beijing WiMi Shenzhen Yiruan Tianxia Technology Co., Ltd. • • • • 100% owned by Shenzhen Kuxuanyou Shenzhen Yiyun Technology Co., Ltd. • • • • 100% owned by Shenzhen Kuxuanyou Korgas Shengyou Information Technology Co., Ltd. • • • • 100% owned by Shenzhen Kuxuanyou Dissolved in May 2020 Korgas WiMi Xinghe Network Technology Co., Ltd. • • • • 100% owned by Beijing WiMi; Dissolved in February 2019 Shenzhen Yitian Internet Technology Co., Ltd. • • • • 100% owned by Beijing WiMi before December 24, 2020; VIE of Shenzhen Weiyixin starting on December 24, 2020 Name Background Ownership Korgas 233 Technology Co., Ltd. • • • • 100% owned by Shenzhen Yitian Shenzhen Qianhai Wangxin Technology Co., Ltd. • • • • 100% owned by Shenzhen Yitian Shenzhen Yiyou Online Technology Co., Ltd. • • • • 100% owned by Shenzhen Yitian Wuhan 233 Interactive Entertainment Technology Co., Ltd. (“Wuhan 233”) • • • • 100% owned by Shenzhen Yitian Weidong Technology Co., Ltd. (“Weidong”) • • • • 100% owned by Shenzhen Yitian Korgas Weidong Technology Co., Ltd. (“Korgas Weidong”) • • • • 100% owned by Weidong Tianjin Weidong Technology Co., Ltd. (“Tianjin Weidong”) • • • • • 60% owned by Weidong Name Background Ownership Shenzhen Yidian Network Technology Co., Ltd. • • • • 100% owned by Beijing WiMi Shenzhen Duodian Cloud Technology Co., Ltd. • • • • 100% owned by Shenzhen Yidian Korgas Duodian Network Technology Co., Ltd. • • • • 100% owned by Shenzhen Yidian Kashi Duodian Network Technology Co., Ltd. • • • • 100% owned by Shenzhen Yidian Shenzhen Zhiyun Image Technology Co., Ltd. (“Shenzhen Zhiyun”) • • • • 100% owned by Shenzhen Yidian Shenzhen Yunzhan Image Technology Co., Ltd. (“Shenzhen Yunzhan”) • • • • 100% owned by Shenzhen Yidian Micro Beauty Lightspeed Investment Management HK Limited • • • 100% owned by Beijing WiMi Skystar Development Co., Ltd • • • 100% owned by Micro Beauty Name Background Ownership Lixin Technology Co., Ltd. (“Lixin Technology”) • • • • 100% owned by WiMi Cayman Hainan Lixin Technology Co., Ltd. (“Hainan Lixin”) • • • • 100% owned by Lixin Technology Tianjin Zhongzhengdaohe Investment Co., Ltd. (“TJ Zhongzheng”) • • • • 100% owned by WiMi Cayman Shenzhen Hedaozhongshu Technology Co., Ltd. (“Shenzhen Hedao”) • • • • 100% owned by TJ Zhongzheng Kashi Daohezhongzheng Internet Technology Co., Ltd. (“Kashi Daohe”) • • • • 100% owned by Shenzhen Hedao VIYI Algorithm Inc. (“VIYI”), previously known as VIYI Technology Inc. • • • 86.5% owned by WiMi Cayman before March 26, 2021; 73% owned by WiMi Cayman after March 26, 2021 Name Background Ownership Fe-da Electronics Company Private Limited (“Fe-da Electronics”) • • • • 100% owned by VIYI Acquired in September 2020 Excel Crest Limited (“Excel Crest”) • • • -da 100% owned by Fe -da VIYI Technology Ltd. (“VIYI Ltd”) • • • • 100% owned by VIYI Shenzhen Weiyixin Technology Co., Ltd. (“Shenzhen Weiyixin” or “VIYI WFOE”) • • • • 100% owned by VIYI Ltd Shanghai Weimu Technology Co., Ltd. (“Shanghai Weimu”) • • • • 58% owned by VIYI Ltd Wisdom Lab Inc. (“Wisdom Lab”) • • • 100% owned by Fe -Da Viwo Technology Limited. (“Viwo Tech”) • • • • 55% owned by VIYI Ltd Shenzhen Viwotong Technology Co., Ltd. (“Viwotong Tech”) • • • 100% owned by Viwo Tech Shanghai Guoyu Information Technology Co., Ltd. (“Shanghai Guoyu”) • • • • 99% owned by Weidong, 1% owned by YY Online Name Background Ownership Kashi Guoyu Information Technology Co., Ltd. (“Kashi Guoyu”) • • • • 100% owned by Shanghai Guoyu Guangzhou Tapuyu Internet Technology Co., Ltd. (“Tapuyu”) • • • • -commerce 100% owned by Viwotong Tech Pengcheng Keyi (Xi’an) Intelligence Technology Co., Ltd. (“Pengcheng Keyi”) • • • • 100% owned by Viwotong Tech |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Nature of business and organization [Abstract] | |
Schedule of estimated useful lives | Useful Life Office electronic equipment 3 years Office furniture and fixtures 3 – 5 years Building 20 years Leasehold improvements lesser of lease term or expected useful life |
Schedule of disaggregate revenue streams | December 31, December 31, December 31, December 31, RMB RMB RMB USD Online AR advertising services 267,514,061 317,157,896 436,475,875 68,459,287 Mobile games 51,667,363 19,910,956 13,498,964 2,117,252 Sales of semiconductor products — 385,538,235 448,958,274 70,417,095 Software development — 43,406,499 34,858,406 5,467,385 Total revenues 319,181,424 766,013,586 933,791,519 146,461,019 |
Schedule of revenue by timing of transfer of goods or services | December 31, December 31, December 31, December 31, RMB RMB RMB USD Goods and services transferred at a point in time 319,181,424 722,607,087 898,933,113 140,993,634 Services transferred over time — 43,406,499 34,858,406 5,467,385 Total revenues 319,181,424 766,013,586 933,791,519 146,461,019 |
Schedule of revenue by geographic locations | December 31, December 31, December 31, December 31, RMB RMB RMB USD Mainland PRC revenues 303,062,432 367,163,638 593,803,869 93,135,478 Hong Kong revenues 295,037 264,404,450 118,590,946 18,600,459 International revenues 15,823,955 134,445,498 221,396,704 34,725,082 Total revenues 319,181,424 766,013,586 933,791,519 146,461,019 |
Schedule of noncontrolling interests | December 31, December 31, December 31, RMB RMB USD VIDA 4,630,583 (31,675,783 ) (4,968,205 ) ICinit 781,772 — — VIYI 95,064,441 107,249,069 16,821,536 Noncontrolling interests subscriptions receivable (88,671,062 ) (172,528 ) (27,060 ) Total noncontrolling interests 11,805,734 75,400,758 11,826,271 |
Variable Interest Entity (_VI_2
Variable Interest Entity (“VIE”) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Nature of business and organization [Abstract] | |
Schedule of Condensed Balance Sheet | December 31, December 31, December 31, RMB RMB USD Current assets 124,531,422 82,728,636 12,975,616 Property and equipment, net 362,130 24,385,762 3,824,798 Other noncurrent assets 472,662,535 493,404,511 77,388,289 Total assets 597,556,087 600,518,909 94,188,703 Total liabilities (258,081,528 ) (614,667,803 ) (96,407,893 ) Net assets 339,474,559 (14,148,894 ) (2,219,190 ) December 31, December 31, December 31, RMB RMB USD Current liabilities: Accounts payable 24,921,108 15,072,302 2,364,023 Deferred revenues 10,475,681 9,713,168 1,523,467 Other payables and accrued liabilities 4,287,545 9,240,553 1,449,339 Other payables – related parties — 12,725,539 1,995,944 Current portion of shareholder loans 62,244,928 20,000,000 3,136,910 Operating lease liabilities 366,794 108,556 17,027 Taxes payable 9,452,749 5,858,717 918,914 Intercompany payable* 122,842,378 474,812,478 74,472,211 Total current liabilities 234,591,183 547,531,313 85,877,835 Non-current shareholder loan 22,016,710 67,136,490 10,530,058 Operating lease liabilities – noncurrent 120,033 — — Deferred tax liabilities, net 1,353,602 — — Total liabilities 258,081,528 614,667,803 96,407,893 |
Schedule of Condensed Income Statement | For the year For the year For the year For the year RMB RMB RMB USD Operating revenues 319,181,424 336,709,317 202,340,230 31,736,159 Gross profit 173,013,581 122,273,631 30,883,606 4,843,955 Income (loss) from operations 122,754,439 55,174,632 (25,262,236 ) (3,962,269 ) Net income (loss) 110,135,996 46,233,277 (159,401,372 ) (25,001,392 ) |
Schedule of Condensed Cash Flow Statement | For the year For the year For the year For the year RMB RMB RMB USD Net cash provided by operating activities 193,845,889 127,238,346 44,560,277 6,989,080 Net cash used in investing activities (126,445,437 ) (109,815,861 ) (49,269,310 ) (7,727,671 ) Net cash (used in) provided by financing activities (40,770,037 ) (50,000 ) 2,929,456 459,472 Effect of exchange rate on cash and cash equivalents (327,988 ) 1,479,386 (1,061,729 ) (166,527 ) Net increase in cash and cash equivalents 26,302,427 18,851,871 (2,841,306 ) (445,646 ) Cash and cash equivalents, beginning of year 14,095,423 40,397,850 59,249,721 9,293,053 Cash, cash equivalents and restricted cash, end of year 40,397,850 59,249,721 56,408,415 8,847,407 |
Schedule of cash, cash equivalents and restricted cash | For the Years Ended December 31, 2019 2020 2021 2021 RMB RMB RMB USD Cash and cash equivalents 40,397,850 59,249,721 55,965,855 8,777,993 Restricted cash — — 442,560 69,414 Total cash, cash equivalents and restricted cash 40,397,850 59,249,721 56,408,415 8,847,407 |
Business Combination (Tables)
Business Combination (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Business Combination (Tables) [Line Items] | |
Schedule of fair value of consideration to acquire Fe-da Electronics | RMB USD Present value of cash to be paid by November 30, 2020 101,472,360 14,867,309 Present value of contingent cash installments 1,949,926 285,695 Total consideration at fair value 103,422,286 15,153,004 |
Schedule of fair value of the identifiable assets acquired and liabilities | Fair value Fair value RMB USD Cash and cash equivalents 2,413,276 353,583 Other current assets 42,183,452 6,180,544 Plant and equipment 9,930 1,455 Intangible assets 30,353,889 4,447,326 Other noncurrent assets 89,252 13,078 Total assets 75,049,799 10,995,986 Total liabilities (27,170,661 ) (3,980,933 ) Fair value of net assets acquired 47,879,138 7,015,053 Goodwill 55,543,148 8,137,951 Total consideration 103,422,286 15,153,004 |
Shenzhen Yichong [Member] | |
Business Combination (Tables) [Line Items] | |
Schedule of fair value of the identifiable assets acquired and liabilities | 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 |
Shanghai Guoyu [Member] | |
Business Combination (Tables) [Line Items] | |
Schedule of fair value of the identifiable assets acquired and liabilities | 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 |
Pengcheng Keyi [Member] | |
Business Combination (Tables) [Line Items] | |
Schedule of fair value of the identifiable assets acquired and liabilities | 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 of VIDA and I_2
Deconsolidation of VIDA and ICinit (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Deconsolidation of VIDA and ICinit [Abstract] | |
Schedule of loss from sales of this transaction | RMB USD Consideration receivable 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 2,471,019 387,568 Less: ICinit’s book value (3,361,955 ) (527,308 ) Exchange rate difference (10,590 ) — Loss on deconsolidation (901,526 ) (139,739 ) |
Short Term Investments (Tables)
Short Term Investments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of short term investments | December 31, December 31, December 31, RMB RMB USD Marketable securities (1) 32,878,252 33,540,301 5,260,646 (1) During the year ended December 31, 2020, the Company invested a total of approximately RMB 173.6 million in marketable securities and redeemed approximately RMB 151.1 million. During the year ended December 31, 2021, the Company invested a total of approximately RMB 149.1 million (USD 23.1 million) in marketable securities and redeemed approximately RMB 150.9 million (USD 23.4 million). The fair value change resulted in gains of approximately RMB 12.3 million and RMB 2.5 million (USD 0.4 million) for the years ended December 31, 2020 and 2021. |
Schedule of fair value disclosure | December 31, December 31, 2020 Level 1 Level 2 Level 3 RMB RMB RMB RMB Marketable securities 32,878,252 32,878,252 — — December 31, December 31, 2021 Level 1 Level 2 Level 3 RMB RMB RMB RMB Marketable securities 33,540,301 33,540,301 — — |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Schedule of accounts receivable, net | December 31, December 31, December 31, RMB RMB USD Accounts receivable 175,349,044 137,875,301 21,625,124 Less: allowance for doubtful accounts (2,734,421 ) (111,639,312 ) (17,510,127 ) Accounts receivable, net 172,614,623 26,235,989 4,114,997 |
Schedule of changes in allowance for doubtful accounts | December 31, December 31, December 31, RMB RMB USD Beginning balance 1,577,486 2,734,421 428,882 Addition 1,156,935 128,392,115 20,137,728 Deconsolidation of ICinit and subsidiaries — (19,487,224 ) (3,056,484 ) Ending balance 2,734,421 111,639,312 17,510,126 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | December 31, December 31, December 31, RMB RMB USD Finished goods – holographic accessories 3,167,879 1,590,495 249,462 Finished goods – semiconductors 949,928 5,251,250 823,635 Total inventories 4,117,807 6,841,745 1,073,097 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment, net | December 31, December 31, December 31, RMB RMB USD Office electronic equipment 1,859,484 1,758,527 275,817 Office fixtures and furniture 88,577 41,392 6,492 Building — 24,825,710 3,893,801 Leasehold improvements 1,368,922 1,363,989 213,936 Subtotal 3,316,983 27,989,618 4,390,046 Less: accumulated depreciation (2,587,771 ) (3,150,073 ) (494,075 ) Total 729,212 24,839,545 3,895,971 |
Cost Method Investments (Tables
Cost Method Investments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Cost and Method Investments Table [Abstract] | |
Schedule of cost method investments | December 31, December 31, December 31, RMB RMB USD 9.0% Investment (1 company in the AR and virtual reality (“VR”) areas) 45,000,000 45,000,000 7,058,048 8.0% Investment (2 companies in the AR and VR areas) 1,100,000 1,100,000 172,530 6.0% Investment (1 company in the AR, VR, software and robotic areas) 600,000 600,000 94,107 5.5% Investment (1 company in the AR, VR and game 600,000 600,000 94,107 5.0% Investment (21 and 22 companies in the AR, VR and digital marketing areas as of December 31, 2020 and 2021) 50,400,000 51,000,000 7,999,122 4.5% Investment (1 company in the VR medical treatment areas) 200,000 200,000 31,369 4.0% Investment (14 companies in the AR, VR, 3D animation and software areas) 8,400,000 8,400,000 1,317,502 3.5% Investment (2 companies in the AR and VR areas) 1,200,000 1,200,000 188,215 3.0% Investment (5 companies in the AR, VR and 3D animation areas) 3,900,000 3,900,000 611,698 2.0% Investment (4 companies in the AR, VR, 3D animation and software areas) 1,200,000 1,200,000 188,215 1.0% Investment (5 companies in the AR, VR, 3D animation, hardware and software areas) 1,450,000 1,450,000 227,426 Total 114,050,000 114,650,000 17,982,339 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Intangible Assets, Net [Abstract] | |
Schedule of acquired intangible asset | December 31, December 31, December 31, RMB RMB USD Copyrights* 579,722 8,955,000 1,404,552 Customer relationship* 26,099,600 25,502,800 4,000,000 Non-compete agreements** 64,370,622 42,200,000 6,618,881 Technology know-hows** 14,709,556 2,852,016 447,327 Subtotal 105,759,500 79,509,816 12,470,760 Less: accumulated amortization (64,517,409 ) (51,628,879 ) (8,097,760 ) Intangible assets, net 41,242,091 27,880,937 4,373,000 |
Schedule of estimated amortization | Twelve months ending December 31, Estimated Estimated RMB USD 2022 8,737,103 1,370,376 2023 8,737,103 1,370,376 2024 7,143,178 1,120,376 2025 3,263,553 511,872 Thereafter — — Total 27,880,937 4,373,000 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Deconsolidation of VIDA and ICinit [Abstract] | |
Schedule of components of acquired goodwill balances | December 31, December 31, December 31, RMB RMB USD Goodwill from Shenzhen Kuxuanyou acquisition (a) 87,908,370 — — Goodwill from Shenzhen Yidian acquisition (b) 137,060,340 137,060,340 21,497,301 Goodwill from Shenzhen Yitian acquisition (c) 92,990,256 92,990,256 14,585,105 Goodwill from Skystar acquisition (d) 25,170,478 — — Goodwill from Fe-da Electronics acquisition (e) 53,099,316 33,644,255 5,276,950 Goodwill from Guoyu acquisition (f) — 13,283,750 2,083,497 Goodwill 396,228,760 276,978,601 43,442,853 (a) Beijing WiMi acquired Shenzhen Kuxuanyou in 2015 to acquire 100% of the capital stock of Shenzhen Kuxuanyou for an aggregate consideration of RMB 113.0 million (approximately USD 16.5 million). The excess fair value of consideration over the identifiable assets acquired of RMB 87,908,370 (USD 13,472,754) was allocated to goodwill. Impairment loss of RMB 87,913,368 (USD 13,788,818) was recognized for the year ended December 31, 2021. (b) Beijing WiMi acquired Shenzhen Yidian in 2015 to acquire 100% of the capital stock of Shenzhen Yidian for an aggregate consideration of RMB 168.0 million (approximately USD 24.5 million). The excess fair value of consideration over the identifiable assets acquired of RMB 137,060,340 (USD 21,005,738) was allocated to goodwill. (c) Beijing WiMi acquired Shenzhen Yitian in 2015 to acquire 100% of the capital stock of Shenzhen Yitian for an aggregate consideration of RMB 192.0 million (approximately USD 28.0 million). The excess fair value of consideration over the identifiable assets acquired of RMB 160,990,256 (USD 24,673,214) was allocated to goodwill. Impairment loss of RMB 68,000,000 (USD 10,421,615) was recognized for the year ended December 31, 2016. (d) Micro Beauty acquired Skystar in 2017 to acquire 100% of the capital stock of Skystar for an aggregate consideration of RMB 58,450,000 (approximately USD 9.0 million). The excess fair value of consideration over the identifiable assets acquired of RMB 32,057,115 (USD 4,913,042) was allocated to goodwill. Impairment loss of RMB 7,276,957 and RMB 24,823,549 (USD 3,893,463) was recognized for the years ended December 31, 2020 and 2021. (e) VIYI acquired Fe -da -da (f) Weidong and YY Online acquired Shanghai Guoyu in 2021 to acquire 100% of the capital stock of Shanghai Guoyu for a net consideration of RMB 20,000,000 (approximately USD 3.1 million). The excess fair value of consideration over the identifiable assets acquired of RMB 13,283,750 (approximately USD 2.0 million) was allocated to goodwill for the central processing algorithm services segment. |
Schedule of changes in the carrying amount of goodwill allocated to reportable segments | AR advertising AR Semiconductor Total Total RMB RMB RMB RMB USD As of December 31, 2019 137,060,340 215,019,494 — 352,079,834 55,222,145 Add: acquisition of Fe-da Electronics — — 55,543,148 55,543,148 8,711,694 Less: impairment loss — (7,276,957 ) — (7,276,957 ) (1,141,358 ) Translation difference — (1,673,433 ) (2,443,832 ) (4,117,265 ) (645,775 ) As of December 31, 2020 137,060,340 206,069,104 53,099,316 396,228,760 62,146,706 Add: acquisition of Guoyu 13,283,750 — — 13,283,750 2,083,497 Less: impairment loss — (112,736,917 ) (18,457,742 ) (131,194,659 ) (20,577,295 ) Translation difference — (341,931 ) (997,319 ) (1,339,250 ) (210,055 ) As of December 31, 2021 150,344,090 92,990,256 33,644,255 276,978,601 43,442,853 |
Other Payables and Accrued Li_2
Other Payables and Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Payables and Accrued Liabilities [Abstract] | |
Schedule of other payables and accrued liabilities | December 31, December 31, December 31, RMB RMB USD Salary payables 1,880,897 2,011,702 315,524 Other payables and accrued expenses 60,328 3,446,740 540,606 Accrued interest payable 3,129,399 8,197,112 1,285,680 Total other payables and accrued liabilities 5,070,624 13,655,554 2,141,810 |
Related Party Balances and Tr_2
Related Party Balances and Transactions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Schedule of related party transactions | Name of Related Parties Relationship Nature December 31, December 31, December 31, RMB RMB USD Jie Zhao Chairman of WiMi Cayman Loan 6,261,665 — — Yang Cui Executive director of Beijing WiMi Loan — 16,100,000 2,525,213 Shanghai Junei Internet Co. Under common control of Jie Zhao Loan 80,300,000 71,036,490 11,141,755 Total: 86,561,665 87,136,490 13,666,968 Current portion of related party loan 63,876,153 20,000,000 3,136,910 Related party loan – non-current 22,685,512 67,136,490 10,530,058 |
Schedule of maturities | Twelve months ending December 31, RMB USD 2022 20,000,000 3,136,910 2023 67,136,490 10,530,058 Total 87,136,490 13,666,968 |
Banking Facility (Tables)
Banking Facility (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Banking Facility [Abstract] | |
Schedule of outstanding balance of banking facility | Lender Term Interest rate Collateral/Guarantee December 31, December 31, December 31, RMB RMB USD DBS Bank, Ltd. (“DBS”) July 8, 2020 to February 28, 2021 DBS Prevailing Cost of Funds +2.5% (Approximately 5%-5.5%) Guaranteed by Mr. Huang Guanchao (Fe-da Electronics’ former director) and Mr. Lim Tzea (Fe-da Electronics’ general manager and director) and Mr. Lim Tzea’s assigned life insurance 13,049,800 — — |
Taxes (Tables)
Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of the benefit of (provision for) income taxes | For the year For the year For the year For the year RMB RMB RMB USD Current (4,644,300 ) (4,487,629 ) (2,189,629 ) (343,434 ) Deferred 1,515,220 1,582,948 3,024,851 474,434 (Provision for) benefit of income taxes (3,129,080 ) (2,904,681 ) 835,222 131,000 |
Schedule of effective income tax rate reconciliation | For the year For the year For the year China statutory income tax rate 25.0 % 25.0 % 25.0 % Preferential tax rate in China (22.5 )% 8.3 % (14.0 )% Tax rate difference outside China (1) — (35.9 )% (7.0 )% Change in valuation allowance 0.4% (0.4 )% 4.7 % Additional R&D deduction in China (0.5 )% 2.0 % (8.5 )% Permanent difference 0.6 % (1.0 )% 0.1 % Effective tax rate 3.0 % (2.0 )% 0.3 % |
Schedule of components of deferred tax assets and liabilities | December 31, December 31, December 31, RMB RMB USD Deferred tax assets: Allowance for doubtful accounts 160,287 142,316 22,322 Impairment loss from inventories — 1,014,527 159,124 Net operating loss carryforwards 2,080,433 11,086,999 1,738,946 Less: valuation allowance (2,080,433 ) (12,101,526 ) (1,898,070 ) Deferred tax assets, net 160,287 142,316 22,322 Deferred tax liabilities: Recognition of intangible assets arising from business combinations 6,144,892 5,396,459 846,411 Total deferred tax liabilities, net 5,984,605 5,254,143 824,089 |
Schedule of taxes payable | December 31, December 31, December 31, RMB RMB USD VAT taxes payable 1,555,978 168,384 26,410 Income taxes payable 9,704,988 6,217,156 975,134 Other taxes payable 254,658 39,206 6,149 Totals 11,515,624 6,424,746 1,007,693 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Lease [Abstract] | |
Schedule of maturity lease obligations | Twelve Months Ending December 31, Operating Operating RMB USD 2022 2,270,181 356,068 2023 941,699 147,701 2024 71,287 11,181 2025 71,287 11,181 2026 35,644 5,591 Total lease payments 3,390,098 531,722 Less: Interest (157,086 ) (24,638 ) Present value of lease liabilities 3,233,012 507,084 |
Shareholders' equity (Tables)
Shareholders' equity (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Schedule of common stock based on the relative fair value of net proceeds | Annual dividend yield — Expected life (years) 2.0 Risk-free interest rate 0.92 % Expected volatility 180.03 % |
Schedule of warrants outstanding and exercisable | Warrants Weighted Warrants outstanding, as of December 31, 2018 — $ — Issued — — Exercised — — Expired — — Warrants outstanding, as of December 31, 2019 — — Issued — — Exercised — — Expired — — Warrants outstanding, as of December 31, 2020 — — Issued 4,469,334 $ 8.6 Exercised — — Expired — — Warrants outstanding, as of December 31, 2021 4,469,334 $ 8.6 Warrants exercisable, as of December 31, 2021 4,469,334 $ 8.6 |
Segments (Tables)
Segments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of information by segment | AR AR Total RMB RMB RMB Revenues 267,514,061 51,667,363 319,181,424 Cost of revenues 140,716,036 5,451,807 146,167,843 Gross profit 126,798,025 46,215,556 173,013,581 Depreciation and amortization 9,455,226 4,428,693 13,883,919 Total capital expenditures 161,505 34,493 195,998 AR AR Semiconductor Total RMB RMB RMB RMB Revenues 307,328,308 29,740,544 428,944,734 766,013,586 Cost of revenues 211,297,881 3,137,805 382,143,014 596,578,700 Gross profit 96,030,427 26,602,739 46,801,720 169,434,886 Depreciation and amortization 9,505,919 3,155,190 1,890,183 14,551,292 Total capital expenditures 94,964 20,897 368,913 484,774 AR AR Semiconductor Total Total RMB RMB RMB RMB USD Revenues 435,917,971 14,056,868 483,816,680 933,791,519 146,461,019 Cost of revenues 254,217,297 4,385,783 425,620,752 684,223,832 107,317,445 Gross profit 181,700,674 9,671,085 58,195,928 249,567,687 39,143,574 Depreciation and amortization 5,936,500 5,385,869 7,202,994 18,525,363 2,905,620 Total capital expenditures 23,782,060 17,120 1,366,302 25,165,482 3,947,093 |
Schedule of total assets | December 31, December 31, December 31, RMB RMB USD AR advertising services 532,715,074 1,306,152,502 204,864,171 AR entertainment 165,442,969 12,487,702 1,958,639 Semiconductor business 474,263,642 186,388,493 29,234,201 Total assets 1,172,421,685 1,505,028,697 236,057,011 |
Schedule of information of revenues by geographic locations | For the year For the year For the year For the year RMB RMB RMB USD Mainland PRC revenues 303,062,432 367,163,638 593,803,869 93,135,478 Hong Kong revenues 295,037 264,404,450 118,590,946 18,600,459 International revenues 15,823,955 134,445,498 221,396,704 34,725,082 Total revenues 319,181,424 766,013,586 933,791,519 146,461,019 |
Condensed financial informati_2
Condensed financial information of the parent company (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of parent company balance sheets | December 31, December 31, December 31, RMB RMB USD ASSETS CURRENT ASSETS Cash in bank 41,981,726 402,451,863 63,122,773 Restricted cash 13,088,949 — — Short term investment 32,878,252 33,540,301 5,260,646 Prepaid expenses 1,589,372 — — Other receivables – intercompany 345,178,017 522,047,391 81,880,796 Total current assets 434,716,316 958,039,555 150,264,215 OTHER ASSETS Other receivable – related parties — 5,738,130 900,000 Investment in subsidiaries 571,354,800 300,285,822 47,098,487 Total assets 1,006,071,116 1,264,063,507 198,262,702 LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES Shareholder loan 1,631,225 — — Other payables – intercompany 6,524,900 — — Total current payables 8,156,125 — — OTHER LIABILITIES Non-current shareholder loan 668,802 — — Total liabilities 8,824,927 — — COMMITMENTS AND CONTINGENCIES 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, 2020 and 2021 13,095 13,095 2,054 Class B ordinary shares, USD 0.0001 par value, 466,967,730 shares authorized, 130,953,843 and 153,300,513 shares issued and outstanding of December 31, 2020 and 2021 87,539 102,127 16,018 Additional paid-in capital 932,368,293 1,454,680,407 228,160,109 Retained earnings (accumulated deficit) 76,207,925 (164,334,928 ) (25,775,198 ) Statutory reserves 24,003,483 28,573,157 4,481,572 Accumulated other comprehensive loss (35,434,146 ) (54,970,351 ) (8,621,853 ) Total shareholders’ equity 997,246,189 1,264,063,507 198,262,702 Total liabilities and shareholders’ equity 1,006,071,116 1,264,063,507 198,262,702 |
Schedule of parent company statements of income | For the Years Ended December 31, 2019 2020 2021 2021 RMB RMB RMB USD OPERATING EXPENSES General and administrative (7,972,189 ) (8,400,720 ) (10,704,897 ) (1,679,015 ) Research and development — (43,402,651 (27,394,359 ) (4,296,683 ) Stock compensation — (191,418,458 ) (10,582,557 ) (1,659,827 ) Total operating expenses (7,972,189 ) (243,221,829 ) (48,681,813 ) (7,653,525 ) LOSS FROM OPERATIONS (7,972,189 ) (243,221,829 ) (48,681,813 ) (7,653,525 ) OTHER INCOME (EXPENSE) Investment income — 12,284,332 2,491,671 390,807 Interest income 1,025,954 37,679 2,408 378 Finance expense (5,456 ) (32,259 ) (21,282 ) (3,338 ) Other expenses, net — (147 ) 503,806 79,020 Equity income (loss) of subsidiaries 109,156,163 79,764,356 (190,267,969 ) (29,842,682 ) Total other income (loss), net 110,176,661 92,053,961 (187,291,366 ) (29,375,815 ) NET INCOME (LOSS) 102,204,472 (151,167,868 ) (235,973,179 ) (37,011,340 ) FOREIGN CURRENCY TRANSLATION ADJUSTMENT 1,589,076 (38,531,887 ) (19,536,206 ) (3,064,166 ) COMPREHENSIVE INCOME (LOSS) 103,793,548 (189,699,755 ) (255,509,385 ) (40,075,506 ) |
Schedule of parent company cash flows | For the Years Ended December 31, 2019 2020 2021 2021 RMB RMB RMB USD CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) 102,204,472 (151,167,868 ) (235,973,179 ) (37,011,340 ) Adjustments to reconcile net income to cash used in operating activities: Stock compensation expense — 191,418,458 10,582,557 1,659,827 Gain from short term investment — (12,284,332 ) (2,491,671 ) (390,807 ) Equity (income) loss of subsidiaries and VIEs (109,156,163 ) (79,764,356 ) 190,267,969 29,842,682 Change in operating assets and Intercompany (62,298,143 (295,669,805 ) (199,216,770 ) (31,246,258 ) Prepaid expenses — (1,680,156 ) 1,571,484 246,480 Net cash used in operating (69,249,834 ) (349,148,059 ) (235,259,610 ) (36,899,416 ) CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of short term investments — (173,557,366 ) (98,023,653 ) (15,374,571 ) Redemptions of short term investments — 151,096,293 99,084,663 15,540,986 Long term investment in subsidiaries — (202,168,656 ) 870,953 136,605 Net cash (used in) provided by investing activities — (224,629,729 ) 1,931,963 303,020 CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from issuance of Series A convertible preferred shares — — Proceeds from public offerings, net — 572,812,469 508,132,968 79,698,381 Repayment to related party loans — — (2,274,154 ) (356,691 ) Sale of subsidiary’s noncontrolling — — 87,369,300 13,703,484 Net cash provided by financing — 572,812,469 593,228,114 93,045,174 EFFECT OF EXCHANGE RATE ON 1,448,063 (14,014,753 ) (12,519,279 ) (1,963,594 ) CHANGES IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH (67,801,772 ) (14,980,072 ) 347,381,188 54,485,184 CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning 137,852,519 70,050,747 55,070,675 8,637,589 CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of year 70,050,747 55,070,675 402,451,863 63,122,773 For the Years Ended December 31, 2019 2020 2021 2021 RMB RMB RMB USD Cash and cash equivalents 70,050,747 41,981,726 402,451,863 63,122,773 Restricted cash — 13,088,949 — — Total cash, cash equivalents and restricted cash shown in the parent company statements of cash flows 70,050,747 55,070,675 402,451,863 63,122,773 |
Nature of Business and Organi_3
Nature of Business and Organization (Details) | Dec. 07, 2021CNY (¥)$ / shares | Oct. 01, 2021USD ($) | Oct. 01, 2021HKD ($) | Jul. 01, 2021 | Mar. 01, 2021CNY (¥) | Mar. 01, 2021USD ($) | Jan. 11, 2021CNY (¥) | May 28, 2021 | Jan. 22, 2021 | Dec. 31, 2020 | Dec. 24, 2020CNY (¥) | Nov. 30, 2020HKD ($) | Nov. 19, 2019CNY (¥) | Nov. 19, 2019$ / shares | Nov. 06, 2018 | Dec. 31, 2021USD ($) | Apr. 15, 2021 | Mar. 26, 2021USD ($) | Mar. 04, 2021CNY (¥) | Mar. 04, 2021USD ($) | Dec. 18, 2020 | Dec. 07, 2020USD ($) | Nov. 15, 2020USD ($) | Oct. 01, 2020 | Sep. 27, 2020 | Aug. 21, 2020 | Jun. 01, 2020 | Mar. 07, 2017 |
Nature of Business and Organization (Details) [Line Items] | ||||||||||||||||||||||||||||
Equity method investment, ownership percentage | 55.00% | 53.00% | 51.00% | |||||||||||||||||||||||||
Equity transfer percentage | 7.00% | |||||||||||||||||||||||||||
Total consideration (in Dollars) | $ 3,500,000 | |||||||||||||||||||||||||||
Collectively owned percentage | 27.00% | |||||||||||||||||||||||||||
Total consideration (in Dollars) | $ 500,000 | |||||||||||||||||||||||||||
Excel crest (in Dollars) | $ 1 | |||||||||||||||||||||||||||
Consideration amount | ¥ 2 | $ 0.3 | ||||||||||||||||||||||||||
Share transfer agreement, description | Weidong and its 100% equity interest in Horgos 233 and Wuhan 233 to YY Online. As a result, Wuhan 233 and Horgos 233 | Shenzhen ICinit purchased 100% equity interests of Tianjin Yaodi Tomorrow Technology Co. (“Tianjin Yaodi”), Ltd., a provider of electronic components, for RMB 2 (approximately USD 0.3). | 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. (“Tianjin Yaodi”), Ltd., a provider of electronic components, for RMB 2 (approximately USD 0.3).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 March 4, 2021, WiMi Cayman established a wholly owned entity of Tianjin Zhongzhengdaohe Investment Co., Ltd. (“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 April 15, 2021, VIYI Ltd formed a 55% owned subsidiary Viwo Technology Limited, a Hong Kong limited company to provide intelligent chips design and solution services.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 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, Viwotong Tech acquired 100% equity interests of Guangzhou Tapuyu Internet Technology Co., Ltd. (“Tapuyu”), a provider of E-commerce 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).(6) Deconsolidation of ICinit in 2021On 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 USD 6,400) to streamline its operating subsidiaries in the semi-conductor segment.The Company concluded that it has lost controlling financial interest in ICinit on October 1, 2021 and deconsolidated ICinit on October 1, 2021 and recorded the fair value of its investment as equity investment. As the deconsolidation did not present a strategic change on the Company’s operation, the deconsolidation was not presented as discontinued operations. See Note 5 for details.The accompanying consolidated financial statements reflect the activities of WiMi Cayman and each of the following entities as of December 31, 2021: Name Background Ownership 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 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 Name Background Ownership ICinit Limited (“ICinit”) • A Hong Kong company • Incorporated on June 1, 2020 • Primarily engages in the sales of semiconductor products and related accessories 51% owned by WiMi HK before October 1, 2021; 49% owned by WiMi HK after October 1, 2021 Shenzhen ICinit Technology Co., Ltd. (“SZ ICinit”) • A PRC limited liability company and deemed a wholly foreign owned enterprise (“WFOE”) • Incorporated on October 12, 2020 • Registered capital of RMB 10,000,000 (USD 1,568,455) • Plan to engage in the sales of computer chip and intelligent chip products 100% owned by ICinit Shenzhen Yichong Micro-Electronic Technology Co., Ltd. (“Shenzhen Yichong”) • A PRC limited liability company • Incorporated on July 9, 2008 • Registered capital of RMB 11,000,000 (USD 1,725,301) • Primarily engages in the sales of computer chip and intelligent chip products 100% owned by SZ ICinit Acquired in January 2021 Shenzhen Saineng Micro-Electronic Electronic Co., Ltd. (“Shenzhen Saineng”) • A PRC limited liability company • Incorporated on June 11, 2018 • Registered capital of RMB 10,000,000 (USD 1,568,455) • Primarily engages in the sales of computer chip and intelligent chip products 80% owned by Shenzhen Yichong Shenzhen Shengtang Micro-Electronic Technology Co., Ltd. (“Shenzhen Shengtang”) • A PRC limited liability company • Incorporated on May 13, 2020 • Registered capital of RMB 5,000,000 (USD 784,228) • Primarily engages in the sales of computer chip and intelligent chip products 100% owned by SZ ICinit Acquired in March 2021 Tianjin Yaodi Tomorrow Technology Co., Ltd. (“Tianjin Yaodi”) • A PRC limited liability company • Incorporated on May 5, 2020 • Registered capital of RMB 5,000,000 (USD 784,228) • Primarily engages in the sales of computer chip and intelligent chip products 100% owned by SZ ICinit Acquired in May 2021 WiMi WFOE • A PRC limited liability company and deemed a wholly foreign owned enterprise (“WFOE”) • Incorporated on September 20, 2018 • Registered capital of RMB 325,500,000 (USD 50,000,000) • A holding company 100% owned by WiMi HK Name Background Ownership Beijing WiMi • A PRC limited liability company • Incorporated on May 27, 2015 • Registered capital of RMB 5,154,639 (USD 808,482) • Primarily engages in Hologram advertising services VIE of WiMi WFOE Shenzhen Kuxuanyou Technology Co., Ltd. (“Shenzhen Kuxuanyou”) • A PRC limited liability company • Incorporated on June 18, 2012 • Registered capital of RMB 10,000,000 (USD 1,568,455) • Primarily engages in AR advertising services 100% owned by Beijing WiMi Shenzhen Yiruan Tianxia Technology Co., Ltd. (“Shenzhen Yiruan”) • A PRC limited liability company • Incorporated on January 06, 2016 • Registered capital of RMB 10,000,000 (USD 1,568,455) • Primarily engages in AR advertising services 100% owned by Shenzhen Kuxuanyou Shenzhen Yiyun Technology Co., Ltd. (“Shenzhen Yiyun”) • A PRC limited liability company • Incorporated on November 15, 2017 • Registered capital of RMB 10,000,000 (USD 1,568,455) • Primarily engages in AR advertising services 100% owned by Shenzhen Kuxuanyou Korgas Shengyou Information Technology Co., Ltd. (“Korgas Shengyou”)** • A PRC limited liability company • Incorporated on February 13, 2017 • Registered capital of RMB 5,000,000 (USD 784,228) • Primarily engages in SDK payment channel services 100% owned by Shenzhen Kuxuanyou Dissolved in May 2020 Korgas WiMi Xinghe Network Technology Co., Ltd. (“Korgas WiMi”) * • A PRC limited liability company • Incorporated on October 18, 2016 • Registered capital of RMB 5,000,000 (USD 784,228) • Primarily engages in Hologram advertising services 100% owned by Beijing WiMi; Dissolved in February 2019 Shenzhen Yitian Internet Technology Co., Ltd. (“Shenzhen Yitian”) • A PRC limited liability company • Incorporated on March 08, 2011 • Registered capital of RMB 20,000,000 (USD 3,136,910) • Primarily engages in mobile games development 100% owned by Beijing WiMi before December 24, 2020; VIE of Shenzhen Weiyixin starting on December 24, 2020 Name Background Ownership Korgas 233 Technology Co., Ltd. (“Korgas 233”) • A PRC limited liability company • Incorporated on September 15, 2017 • Registered capital of RMB 1,000,000 (USD 156,846) • Primarily engages in mobile games development 100% owned by Shenzhen Yitian Shenzhen Qianhai Wangxin Technology Co., Ltd. (“Shenzhen Qianhai”) • A PRC limited liability company • Incorporated on October 16, 2015 • Registered capital of RMB 5,000,000 (USD 784,228) • Primarily engages in AR advertising services 100% owned by Shenzhen Yitian Shenzhen Yiyou Online Technology Co., Ltd. (“YY Online”) • A PRC limited liability company • Incorporated on January 14, 2019 • Registered capital of RMB 100,000 (USD 15,685) • Primarily engages in AR advertising services 100% owned by Shenzhen Yitian Wuhan 233 Interactive Entertainment Technology Co., Ltd. (“Wuhan 233”) • A PRC limited liability company • Incorporated on May 15, 2020 • Registered capital of RMB 100,000 (USD 15,685) • Primarily engages in mobile games development 100% owned by Shenzhen Yitian Weidong Technology Co., Ltd. (“Weidong”) • A PRC limited liability company • Incorporated on October 28, 2020 • Registered capital of RMB 50,000,000 (USD 7,842,276) • Primarily engages in AR advertising services 100% owned by Shenzhen Yitian Korgas Weidong Technology Co., Ltd. (“Korgas Weidong”) • A PRC limited liability company • Incorporated on October 30, 2020 • Registered capital of RMB 20,000,000 (USD 3,136,910) • Primarily engages in AR advertising services 100% owned by Weidong Tianjin Weidong Technology Co., Ltd. (“Tianjin Weidong”) • A PRC limited liability company • Incorporated on October 30, 2020 • Registered capital of RMB 20,000,000 (USD 3,136,910) • Primarily engages in AR advertising services • No operations as of December 31, 2020 60% owned by Weidong Name Background Ownership Shenzhen Yidian Network Technology Co., Ltd. (“Shenzhen Yidian”) • A PRC limited liability company • Incorporated on May 20, 2014 • Registered capital of RMB 10,000,000 (USD 1,568,455) • Primarily engages in AR advertising services 100% owned by Beijing WiMi Shenzhen Duodian Cloud Technology Co., Ltd. (“Shenzhen Duodian”) • A PRC limited liability company • Incorporated on August 24, 2017 • Registered capital of RMB 5,000,000 (USD 784,228) • Primarily engages in AR advertising services 100% owned by Shenzhen Yidian Korgas Duodian Network Technology Co., Ltd. (“Korgas Duodian”) • A PRC limited liability company • Incorporated on November 25, 2016 • Registered capital of RMB 5,000,000 (USD 784,228) • Primarily engages in AR advertising services 100% owned by Shenzhen Yidian Kashi Duodian Network Technology Co., Ltd. (“Kashi Duodian”) • A PRC limited liability company • Incorporated on January 31, 2019 • Registered capital of RMB 5,000,000 (USD 784,228) • Primarily engages in AR advertising services 100% owned by Shenzhen Yidian Shenzhen Zhiyun Image Technology Co., Ltd. (“Shenzhen Zhiyun”) • A PRC limited liability company • Incorporated on December 3, 2019 • Registered capital of RMB 5,000,000 (USD 784,228) • 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 • Registered capital of RMB 10,000,000 (USD 1,568,455) • Primarily engages in AR advertising services 100% owned by Shenzhen Yidian Micro Beauty Lightspeed Investment Management HK Limited (“Micro Beauty”) • 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 (“Skystar”) • A Republic of Seychelles Company • Incorporated on March 30, 2016 • Primarily engages in MR software development and licensing 100% owned by Micro Beauty Name Background Ownership Lixin Technology Co., Ltd. (“Lixin Technology”) • A PRC limited liability company and deemed a wholly foreign owned enterprise (“WFOE”) • Incorporated on August 4, 2020 • Registered capital of RMB 200,000,000 (USD 31,369,105) • 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 • Registered capital of RMB 50,000,000 (USD 7,842,276) • Plan to support the daily operations of Lixin Technology, no operations as of December 31, 2021 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 • Registered capital of RMB 195,747,000 (USD 30,000,000) • 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 • Registered capital of RMB 200,000,000 (USD 7,842,276) • Plan to engage AR advertising services, no material operations as of December 31, 2021 100% owned by TJ Zhongzheng Kashi Daohezhongzheng Internet Technology Co., Ltd. (“Kashi Daohe”) • A PRC limited liability company • Incorporated on May 26, 2021 • Registered capital of RMB 200,000,000 (USD 7,842,276) • Plan to engage AR advertising services, no material operations as of December 31, 2021 100% owned by Shenzhen Hedao 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 Name Background Ownership Fe-da Electronics Company Private Limited (“Fe-da Electronics”) • A Singapore company • Incorporated on January 9, 2009 • Capital of RMB 3,187,856 (USD 500,001) • Primarily engages in customization of central processing units 100% owned by VIYI Acquired in September 2020 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, no material operations as of December 31, 2021 100% owned by Fe-da Electronics VIYI Technology Ltd. (“VIYI Ltd”) • A Hong Kong company • Incorporated on October 9, 2020 • A holding company • No operations as of December 31, 2020 100% owned by VIYI Shenzhen Weiyixin Technology Co., Ltd. (“Shenzhen Weiyixin” or “VIYI WFOE”) • A PRC limited liability company and deemed a wholly foreign owned enterprise (“WFOE”) • Incorporated on November 18, 2020 • Registered capital of RMB 191,271,000 (USD 30,000,000) • A holding company 100% owned by VIYI Ltd Shanghai Weimu Technology Co., Ltd. (“Shanghai Weimu”) • A PRC limited liability company • Incorporated on November 30, 2020 • Registered capital of RMB 50,000,000 (USD 7,842,276) • Engages in providing software support services 58% owned by VIYI Ltd 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 Viwo Technology Limited. (“Viwo Tech”) • A Hong Kong company • Incorporated on April 15, 2021 • Engages in intelligent chips design • No operations as of December 31, 2021 55% owned by VIYI Ltd Shenzhen Viwotong Technology Co., Ltd. (“Viwotong Tech”) • A PRC limited liability company • Incorporated on July 19, 2021 • Registered capital of RMB 10,000,000 (USD 1,568,455) 100% owned by Viwo Tech Shanghai Guoyu Information Technology Co., Ltd. (“Shanghai Guoyu”) • A PRC limited liability company • Incorporated on March 18, 2019 • Registered capital of RMB 20,000,000 (USD 3,136,910 ) • Engages in R&D and application of intelligent visual algorithm technology 99% owned by Weidong, 1% owned by YY Online Name Background Ownership Kashi Guoyu Information Technology Co., Ltd. (“Kashi Guoyu”) • A PRC limited liability company • Registered capital of RMB 10,000,000 (USD 1,568,455) • Incorporated on July 23, 2021 • Engages in R&D and application of intelligent visual algorithm technology 100% owned by Shanghai Guoyu Guangzhou Tapuyu Internet Technology Co., Ltd. (“Tapuyu”) • A PRC limited liability company • Registered capital of RMB 1,000,000 (USD 156,846 ) • Incorporated on June 22, 2021 • Engages in E-commerce services and application of intelligent visual algorithm technology 100% owned by Viwotong Tech Pengcheng Keyi (Xi’an) Intelligence Technology Co., Ltd. (“Pengcheng Keyi”) • A PRC limited liability company • Registered capital of RMB 5,000,000 (USD 784,228) • Incorporated on July 29, 2021 • Engages in testing equipment development and sales 100% owned by Viwotong Tech | |||||||||||||||||||||||||
Equity method investment, ownership percentage | 100.00% | |||||||||||||||||||||||||||
E-commerce services (in Yuan Renminbi) | ¥ | ¥ 2 | |||||||||||||||||||||||||||
E-commerce service (in Dollars per share) | $ / shares | $ 0.3 | |||||||||||||||||||||||||||
Testing equipment development and sales (in Yuan Renminbi) | ¥ | ¥ 2 | |||||||||||||||||||||||||||
Testing equipment development and sale (in Dollars per share) | $ / shares | ¥ 0.3 | |||||||||||||||||||||||||||
Issued share capital percentage | 100.00% | 100.00% | ||||||||||||||||||||||||||
Term of agreement | 10 years | |||||||||||||||||||||||||||
Micro Beauty Lightspeed Investment Management HK Limited [Member] | ||||||||||||||||||||||||||||
Nature of Business and Organization (Details) [Line Items] | ||||||||||||||||||||||||||||
Equity method investment, ownership percentage | 100.00% | |||||||||||||||||||||||||||
Korgas Weidong Technology Co., Ltd. [Member] | ||||||||||||||||||||||||||||
Nature of Business and Organization (Details) [Line Items] | ||||||||||||||||||||||||||||
Equity method investment, ownership percentage | 60.00% | |||||||||||||||||||||||||||
Bofeng Investment Limited [Member] | ||||||||||||||||||||||||||||
Nature of Business and Organization (Details) [Line Items] | ||||||||||||||||||||||||||||
Equity transfer percentage | 4.00% | |||||||||||||||||||||||||||
Bravo Great Enterprises Limited [Member] | ||||||||||||||||||||||||||||
Nature of Business and Organization (Details) [Line Items] | ||||||||||||||||||||||||||||
Equity transfer percentage | 6.00% | |||||||||||||||||||||||||||
Great Enterprises Limited, [Member] | ||||||||||||||||||||||||||||
Nature of Business and Organization (Details) [Line Items] | ||||||||||||||||||||||||||||
Total consideration (in Dollars) | $ 10,000,000 | |||||||||||||||||||||||||||
Universal Winnings Holdings Limited [Member] | ||||||||||||||||||||||||||||
Nature of Business and Organization (Details) [Line Items] | ||||||||||||||||||||||||||||
Equity transfer percentage | 3.50% | |||||||||||||||||||||||||||
Total consideration (in Dollars) | $ 3,500,000 | |||||||||||||||||||||||||||
WiMi Cayman [Member] | ||||||||||||||||||||||||||||
Nature of Business and Organization (Details) [Line Items] | ||||||||||||||||||||||||||||
Equity transfer percentage | 20.00% | |||||||||||||||||||||||||||
Guosheng Holdings Limited [Member] | ||||||||||||||||||||||||||||
Nature of Business and Organization (Details) [Line Items] | ||||||||||||||||||||||||||||
Total consideration (in Dollars) | $ 10,000,000 | |||||||||||||||||||||||||||
Excel Crest Limited [Member] | ||||||||||||||||||||||||||||
Nature of Business and Organization (Details) [Line Items] | ||||||||||||||||||||||||||||
Equity method investment, ownership percentage | 100.00% | |||||||||||||||||||||||||||
Shenzhen Weiyixi [Member] | ||||||||||||||||||||||||||||
Nature of Business and Organization (Details) [Line Items] | ||||||||||||||||||||||||||||
Outstanding equity percentage | 58.00% | |||||||||||||||||||||||||||
ICinit Limited [Member] | ||||||||||||||||||||||||||||
Nature of Business and Organization (Details) [Line Items] | ||||||||||||||||||||||||||||
Issued share capital percentage | 2.00% | 2.00% | ||||||||||||||||||||||||||
Consideration amount | $ 6,400,000,000 | $ 50,000 | ||||||||||||||||||||||||||
Acquisition Framework Agreement [Member] | ||||||||||||||||||||||||||||
Nature of Business and Organization (Details) [Line Items] | ||||||||||||||||||||||||||||
Equity method investment, ownership percentage | 100.00% | |||||||||||||||||||||||||||
Exclusive Share Purchase Option Agreement [Member] | Beijing WiMi [Member] | ||||||||||||||||||||||||||||
Nature of Business and Organization (Details) [Line Items] | ||||||||||||||||||||||||||||
Term of agreement | 10 years | |||||||||||||||||||||||||||
Business Combination [Member] | ||||||||||||||||||||||||||||
Nature of Business and Organization (Details) [Line Items] | ||||||||||||||||||||||||||||
Acquired description | 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. | |||||||||||||||||||||||||||
Beijing WiMi [Member] | ||||||||||||||||||||||||||||
Nature of Business and Organization (Details) [Line Items] | ||||||||||||||||||||||||||||
Original shareholders percentage | 17.90% | |||||||||||||||||||||||||||
Equity interests percentage | 17.90% | |||||||||||||||||||||||||||
Number of contractual agreement | four | |||||||||||||||||||||||||||
Ms. Yao Zhaohua [Member] | ||||||||||||||||||||||||||||
Nature of Business and Organization (Details) [Line Items] | ||||||||||||||||||||||||||||
Equity method investment, ownership percentage | 99.00% | 99.90% | ||||||||||||||||||||||||||
Consideration amount | ¥ | ¥ 1 | |||||||||||||||||||||||||||
Ms. Sun Yadong [Member] | ||||||||||||||||||||||||||||
Nature of Business and Organization (Details) [Line Items] | ||||||||||||||||||||||||||||
Equity method investment, ownership percentage | 1.00% | 0.10% | ||||||||||||||||||||||||||
Consideration amount | ¥ | ¥ 1 | |||||||||||||||||||||||||||
Shenzhen Yitian [Member] | ||||||||||||||||||||||||||||
Nature of Business and Organization (Details) [Line Items] | ||||||||||||||||||||||||||||
Equity interests percentage | 100.00% | |||||||||||||||||||||||||||
Shenzhen Weiyixin [Member] | ||||||||||||||||||||||||||||
Nature of Business and Organization (Details) [Line Items] | ||||||||||||||||||||||||||||
Equity interests percentage | 100.00% | |||||||||||||||||||||||||||
Shenzhen ICinit [Member] | ||||||||||||||||||||||||||||
Nature of Business and Organization (Details) [Line Items] | ||||||||||||||||||||||||||||
Equity interests percentage | 100.00% | 100.00% | ||||||||||||||||||||||||||
TJ Zhongzheng [Member] | ||||||||||||||||||||||||||||
Nature of Business and Organization (Details) [Line Items] | ||||||||||||||||||||||||||||
Register capital | ¥ 30,000,000 | $ 195,700,000 |
Nature of Business and Organi_4
Nature of Business and Organization (Details) - Schedule consolidated financial statements reflect the activities of WiMi Cayman and each of entities | 12 Months Ended |
Dec. 31, 2021 | |
Wimi HK [Member] | |
Nature of Business and Organization (Details) - Schedule consolidated financial statements reflect the activities of WiMi Cayman and each of entities [Line Items] | |
Name | 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 |
VIDA Semicon Co., Limited [Member] | |
Nature of Business and Organization (Details) - Schedule consolidated financial statements reflect the activities of WiMi Cayman and each of entities [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 |
ICinit Limited [Member] | |
Nature of Business and Organization (Details) - Schedule consolidated financial statements reflect the activities of WiMi Cayman and each of entities [Line Items] | |
Name | ICinit Limited (“ICinit”) |
Background | • A Hong Kong company • Incorporated on June 1, 2020 • Primarily engages in the sales of semiconductor products and related accessories |
Ownership | 51% owned by WiMi HK before October 1, 2021; 49% owned by WiMi HK after October 1, 2021 |
Shenzhen ICinit Technology Co., Ltd. [Member] | |
Nature of Business and Organization (Details) - Schedule consolidated financial statements reflect the activities of WiMi Cayman and each of entities [Line Items] | |
Name | Shenzhen ICinit Technology Co., Ltd. (“SZ ICinit”) |
Background | • A PRC limited liability company and deemed a wholly foreign owned enterprise (“WFOE”) • Incorporated on October 12, 2020 • Registered capital of RMB 10,000,000 (USD 1,568,455) • Plan to engage in the sales of computer chip and intelligent chip products |
Ownership | 100% owned by ICinit |
Shenzhen Yichong Micro-Electronic Technology Co., Ltd. [Member] | |
Nature of Business and Organization (Details) - Schedule consolidated financial statements reflect the activities of WiMi Cayman and each of entities [Line Items] | |
Name | Shenzhen Yichong Micro-Electronic Technology Co., Ltd. (“Shenzhen Yichong”) |
Background | • A PRC limited liability company • Incorporated on July 9, 2008 • Registered capital of RMB 11,000,000 (USD 1,725,301) • Primarily engages in the sales of computer chip and intelligent chip products |
Ownership | 100% owned by SZ ICinit Acquired in January 2021 |
Shenzhen Saineng Micro-Electronic Electronic Co., Ltd. [Member] | |
Nature of Business and Organization (Details) - Schedule consolidated financial statements reflect the activities of WiMi Cayman and each of entities [Line Items] | |
Name | Shenzhen Saineng Micro-Electronic Electronic Co., Ltd. (“Shenzhen Saineng”) |
Background | • A PRC limited liability company • Incorporated on June 11, 2018 • Registered capital of RMB 10,000,000 (USD 1,568,455) • Primarily engages in the sales of computer chip and intelligent chip products |
Ownership | 80% owned by Shenzhen Yichong |
Shenzhen Shengtang Micro-Electronic Technology Co., Ltd. [Member] | |
Nature of Business and Organization (Details) - Schedule consolidated financial statements reflect the activities of WiMi Cayman and each of entities [Line Items] | |
Name | Shenzhen Shengtang Micro-Electronic Technology Co., Ltd. (“Shenzhen Shengtang”) |
Background | • A PRC limited liability company • Incorporated on May 13, 2020 • Registered capital of RMB 5,000,000 (USD 784,228) • Primarily engages in the sales of computer chip and intelligent chip products |
Ownership | 100% owned by SZ ICinit Acquired in March 2021 |
Tianjin Yaodi Tomorrow Technology Co., Ltd. [Member] | |
Nature of Business and Organization (Details) - Schedule consolidated financial statements reflect the activities of WiMi Cayman and each of entities [Line Items] | |
Name | Tianjin Yaodi Tomorrow Technology Co., Ltd. (“Tianjin Yaodi”) |
Background | • A PRC limited liability company • Incorporated on May 5, 2020 • Registered capital of RMB 5,000,000 (USD 784,228) • Primarily engages in the sales of computer chip and intelligent chip products |
Ownership | 100% owned by SZ ICinit Acquired in May 2021 |
Wimi WFOE [Member] | |
Nature of Business and Organization (Details) - Schedule consolidated financial statements reflect the activities of WiMi Cayman and each of entities [Line Items] | |
Name | WiMi WFOE |
Background | • A PRC limited liability company and deemed a wholly foreign owned enterprise (“WFOE”) • Incorporated on September 20, 2018 • Registered capital of RMB 325,500,000 (USD 50,000,000) • A holding company |
Ownership | 100% owned by WiMi HK |
Beijing WiMi [Member] | |
Nature of Business and Organization (Details) - Schedule consolidated financial statements reflect the activities of WiMi Cayman and each of entities [Line Items] | |
Name | Beijing WiMi |
Background | • A PRC limited liability company • Incorporated on May 27, 2015 • Registered capital of RMB 5,154,639 (USD 808,482) • Primarily engages in Hologram advertising services |
Ownership | VIE of WiMi WFOE |
Shenzhen Kuxuanyou Technology Co Ltd [Member] | |
Nature of Business and Organization (Details) - Schedule consolidated financial statements reflect the activities of WiMi Cayman and each of entities [Line Items] | |
Name | Shenzhen Kuxuanyou Technology Co., Ltd. (“Shenzhen Kuxuanyou”) |
Background | • A PRC limited liability company • Incorporated on June 18, 2012 • Registered capital of RMB 10,000,000 (USD 1,568,455) • Primarily engages in AR advertising services |
Ownership | 100% owned by Beijing WiMi |
Shenzhen Yiruan Tianxia Technology Co., Ltd. [Member] | |
Nature of Business and Organization (Details) - Schedule consolidated financial statements reflect the activities of WiMi Cayman and each of entities [Line Items] | |
Name | Shenzhen Yiruan Tianxia Technology Co., Ltd. (“Shenzhen Yiruan”) |
Background | • A PRC limited liability company • Incorporated on January 06, 2016 • Registered capital of RMB 10,000,000 (USD 1,568,455) • Primarily engages in AR advertising services |
Ownership | 100% owned by Shenzhen Kuxuanyou |
Shenzhen Yiyun Technology Co., Ltd. [Member] | |
Nature of Business and Organization (Details) - Schedule consolidated financial statements reflect the activities of WiMi Cayman and each of entities [Line Items] | |
Name | Shenzhen Yiyun Technology Co., Ltd. (“Shenzhen Yiyun”) |
Background | • A PRC limited liability company • Incorporated on November 15, 2017 • Registered capital of RMB 10,000,000 (USD 1,568,455) • Primarily engages in AR advertising services |
Ownership | 100% owned by Shenzhen Kuxuanyou |
Korgas Shengyou Information Technology Co., Ltd. [Member] | |
Nature of Business and Organization (Details) - Schedule consolidated financial statements reflect the activities of WiMi Cayman and each of entities [Line Items] | |
Name | Korgas Shengyou Information Technology Co., Ltd. (“Korgas Shengyou”)** |
Background | • A PRC limited liability company • Incorporated on February 13, 2017 • Registered capital of RMB 5,000,000 (USD 784,228) • Primarily engages in SDK payment channel services |
Ownership | 100% owned by Shenzhen Kuxuanyou Dissolved in May 2020 |
Korgas WiMi Xinghe Network Technology Co., Ltd. [Member] | |
Nature of Business and Organization (Details) - Schedule consolidated financial statements reflect the activities of WiMi Cayman and each of entities [Line Items] | |
Name | Korgas WiMi Xinghe Network Technology Co., Ltd. (“Korgas WiMi”) * |
Background | • A PRC limited liability company • Incorporated on October 18, 2016 • Registered capital of RMB 5,000,000 (USD 784,228) • Primarily engages in Hologram advertising services |
Ownership | 100% owned by Beijing WiMi; Dissolved in February 2019 |
Shenzhen Yitian Internet Technology Co., Ltd. [Member] | |
Nature of Business and Organization (Details) - Schedule consolidated financial statements reflect the activities of WiMi Cayman and each of entities [Line Items] | |
Name | Shenzhen Yitian Internet Technology Co., Ltd. (“Shenzhen Yitian”) |
Background | • A PRC limited liability company • Incorporated on March 08, 2011 • Registered capital of RMB 20,000,000 (USD 3,136,910) • 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 |
Korgas 233 Technology Co., Ltd. [Member] | |
Nature of Business and Organization (Details) - Schedule consolidated financial statements reflect the activities of WiMi Cayman and each of entities [Line Items] | |
Name | Korgas 233 Technology Co., Ltd. (“Korgas 233”) |
Background | • A PRC limited liability company • Incorporated on September 15, 2017 • Registered capital of RMB 1,000,000 (USD 156,846) • Primarily engages in mobile games development |
Ownership | 100% owned by Shenzhen Yitian |
Shenzhen Qianhai Wangxin Technology Co., Ltd. [[Member] | |
Nature of Business and Organization (Details) - Schedule consolidated financial statements reflect the activities of WiMi Cayman and each of entities [Line Items] | |
Name | Shenzhen Qianhai Wangxin Technology Co., Ltd. (“Shenzhen Qianhai”) |
Background | • A PRC limited liability company • Incorporated on October 16, 2015 • Registered capital of RMB 5,000,000 (USD 784,228) • Primarily engages in AR advertising services |
Ownership | 100% owned by Shenzhen Yitian |
Shenzhen Yiyou Online Technology Co., Ltd. [Member] | |
Nature of Business and Organization (Details) - Schedule consolidated financial statements reflect the activities of WiMi Cayman and each of entities [Line Items] | |
Name | Shenzhen Yiyou Online Technology Co., Ltd. (“YY Online”) |
Background | • A PRC limited liability company • Incorporated on January 14, 2019 • Registered capital of RMB 100,000 (USD 15,685) • Primarily engages in AR advertising services |
Ownership | 100% owned by Shenzhen Yitian |
Wuhan 233 Interactive Entertainment Technology Co., Ltd. [Member] | |
Nature of Business and Organization (Details) - Schedule consolidated financial statements reflect the activities of WiMi Cayman and each of entities [Line Items] | |
Name | Wuhan 233 Interactive Entertainment Technology Co., Ltd. (“Wuhan 233”) |
Background | • A PRC limited liability company • Incorporated on May 15, 2020 • Registered capital of RMB 100,000 (USD 15,685) • Primarily engages in mobile games development |
Ownership | 100% owned by Shenzhen Yitian |
Weidong Technology Co., Ltd. [Member] | |
Nature of Business and Organization (Details) - Schedule consolidated financial statements reflect the activities of WiMi Cayman and each of entities [Line Items] | |
Name | Weidong Technology Co., Ltd. (“Weidong”) |
Background | • A PRC limited liability company • Incorporated on October 28, 2020 • Registered capital of RMB 50,000,000 (USD 7,842,276) • Primarily engages in AR advertising services |
Ownership | 100% owned by Shenzhen Yitian |
Korgas Weidong Technology Co., Ltd. [Member] | |
Nature of Business and Organization (Details) - Schedule consolidated financial statements reflect the activities of WiMi Cayman and each of entities [Line Items] | |
Name | Korgas Weidong Technology Co., Ltd. (“Korgas Weidong”) |
Background | • A PRC limited liability company • Incorporated on October 30, 2020 • Registered capital of RMB 20,000,000 (USD 3,136,910) • Primarily engages in AR advertising services |
Ownership | 100% owned by Weidong |
Tianjin Weidong Technology Co., Ltd. [Member] | |
Nature of Business and Organization (Details) - Schedule consolidated financial statements reflect the activities of WiMi Cayman and each of entities [Line Items] | |
Name | Tianjin Weidong Technology Co., Ltd. (“Tianjin Weidong”) |
Background | • A PRC limited liability company • Incorporated on October 30, 2020 • Registered capital of RMB 20,000,000 (USD 3,136,910) • Primarily engages in AR advertising services • No operations as of December 31, 2020 |
Ownership | 60% owned by Weidong |
Shenzhen Yidian Network Technology Co., Ltd. [Member] | |
Nature of Business and Organization (Details) - Schedule consolidated financial statements reflect the activities of WiMi Cayman and each of entities [Line Items] | |
Name | Shenzhen Yidian Network Technology Co., Ltd. (“Shenzhen Yidian”) |
Background | • A PRC limited liability company • Incorporated on May 20, 2014 • Registered capital of RMB 10,000,000 (USD 1,568,455) • Primarily engages in AR advertising services |
Ownership | 100% owned by Beijing WiMi |
Shenzhen Duodian Cloud Technology Co., Ltd. [member] | |
Nature of Business and Organization (Details) - Schedule consolidated financial statements reflect the activities of WiMi Cayman and each of entities [Line Items] | |
Name | Shenzhen Duodian Cloud Technology Co., Ltd. (“Shenzhen Duodian”) |
Background | • A PRC limited liability company • Incorporated on August 24, 2017 • Registered capital of RMB 5,000,000 (USD 784,228) • Primarily engages in AR advertising services |
Ownership | 100% owned by Shenzhen Yidian |
Korgas Duodian Network Technology Co., Ltd. [Member] | |
Nature of Business and Organization (Details) - Schedule consolidated financial statements reflect the activities of WiMi Cayman and each of entities [Line Items] | |
Name | Korgas Duodian Network Technology Co., Ltd. (“Korgas Duodian”) |
Background | • A PRC limited liability company • Incorporated on November 25, 2016 • Registered capital of RMB 5,000,000 (USD 784,228) • Primarily engages in AR advertising services |
Ownership | 100% owned by Shenzhen Yidian |
Kashi Duodian Network Technology Co., Ltd. [Member] | |
Nature of Business and Organization (Details) - Schedule consolidated financial statements reflect the activities of WiMi Cayman and each of entities [Line Items] | |
Name | Kashi Duodian Network Technology Co., Ltd. (“Kashi Duodian”) |
Background | • A PRC limited liability company • Incorporated on January 31, 2019 • Registered capital of RMB 5,000,000 (USD 784,228) • Primarily engages in AR advertising services |
Ownership | 100% owned by Shenzhen Yidian |
Shenzhen Zhiyun Image Technology Co., Ltd. [Member] | |
Nature of Business and Organization (Details) - Schedule consolidated financial statements reflect the activities of WiMi Cayman and each of entities [Line Items] | |
Name | Shenzhen Zhiyun Image Technology Co., Ltd. (“Shenzhen Zhiyun”) |
Background | • A PRC limited liability company • Incorporated on December 3, 2019 • Registered capital of RMB 5,000,000 (USD 784,228) • Primarily engages in AR advertising services |
Ownership | 100% owned by Shenzhen Yidian |
Shenzhen Yunzhan Image Technology Co., Ltd. [member | |
Nature of Business and Organization (Details) - Schedule consolidated financial statements reflect the activities of WiMi Cayman and each of entities [Line Items] | |
Name | Shenzhen Yunzhan Image Technology Co., Ltd. (“Shenzhen Yunzhan”) |
Background | • A PRC limited liability company • Incorporated on September 24, 2020 • Registered capital of RMB 10,000,000 (USD 1,568,455) • Primarily engages in AR advertising services |
Ownership | 100% owned by Shenzhen Yidian |
Micro Beauty Lightspeed Investment Management HK Limited [Member] | |
Nature of Business and Organization (Details) - Schedule consolidated financial statements reflect the activities of WiMi Cayman and each of entities [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 [Member] | |
Nature of Business and Organization (Details) - Schedule consolidated financial statements reflect the activities of WiMi Cayman and each of entities [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 |
Lixin Technology Co., Ltd. [Member] | |
Nature of Business and Organization (Details) - Schedule consolidated financial statements reflect the activities of WiMi Cayman and each of entities [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 • Registered capital of RMB 200,000,000 (USD 31,369,105) • 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. [Member] | |
Nature of Business and Organization (Details) - Schedule consolidated financial statements reflect the activities of WiMi Cayman and each of entities [Line Items] | |
Name | Hainan Lixin Technology Co., Ltd. (“Hainan Lixin”) |
Background | • A PRC limited liability company • Incorporated on October 10, 2020 • Registered capital of RMB 50,000,000 (USD 7,842,276) • Plan to support the daily operations of Lixin Technology, no operations as of December 31, 2021 |
Ownership | 100% owned by Lixin Technology |
Tianjin Zhongzhengdaohe Investment Co., Ltd. [Member] | |
Nature of Business and Organization (Details) - Schedule consolidated financial statements reflect the activities of WiMi Cayman and each of entities [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 • Registered capital of RMB 195,747,000 (USD 30,000,000) • A holding company |
Ownership | 100% owned by WiMi Cayman |
Shenzhen Hedaozhongshu Technology Co., Ltd. [Member] | |
Nature of Business and Organization (Details) - Schedule consolidated financial statements reflect the activities of WiMi Cayman and each of entities [Line Items] | |
Name | Shenzhen Hedaozhongshu Technology Co., Ltd. (“Shenzhen Hedao”) |
Background | • A PRC limited liability company • Incorporated on May 21, 2021 • Registered capital of RMB 200,000,000 (USD 7,842,276) • Plan to engage AR advertising services, no material operations as of December 31, 2021 |
Ownership | 100% owned by TJ Zhongzheng |
Kashi Daohezhongzheng Internet Technology Co., Ltd. [Member] | |
Nature of Business and Organization (Details) - Schedule consolidated financial statements reflect the activities of WiMi Cayman and each of entities [Line Items] | |
Name | Kashi Daohezhongzheng Internet Technology Co., Ltd. (“Kashi Daohe”) |
Background | • A PRC limited liability company • Incorporated on May 26, 2021 • Registered capital of RMB 200,000,000 (USD 7,842,276) • Plan to engage AR advertising services, no material operations as of December 31, 2021 |
Ownership | 100% owned by Shenzhen Hedao |
VIYI Algorithm Inc. (“VIYI”), previously known as VIYI Technology Inc. [Member] | |
Nature of Business and Organization (Details) - Schedule consolidated financial statements reflect the activities of WiMi Cayman and each of entities [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 |
Fe-da Electronics Company Private Limited [Member] | |
Nature of Business and Organization (Details) - Schedule consolidated financial statements reflect the activities of WiMi Cayman and each of entities [Line Items] | |
Name | Fe-da Electronics Company Private Limited (“Fe-da Electronics”) |
Background | • A Singapore company • Incorporated on January 9, 2009 • Capital of RMB 3,187,856 (USD 500,001) • Primarily engages in customization of central processing units |
Ownership | 100% owned by VIYI Acquired in September 2020 |
Excel Crest Limited [Member] | |
Nature of Business and Organization (Details) - Schedule consolidated financial statements reflect the activities of WiMi Cayman and each of entities [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, no material operations as of December 31, 2021 |
Ownership | 100% owned by Fe-da Electronics |
VIYI Technology Ltd. [Member] | |
Nature of Business and Organization (Details) - Schedule consolidated financial statements reflect the activities of WiMi Cayman and each of entities [Line Items] | |
Name | VIYI Technology Ltd. (“VIYI Ltd”) |
Background | • A Hong Kong company • Incorporated on October 9, 2020 • A holding company • No operations as of December 31, 2020 |
Ownership | 100% owned by VIYI |
Shenzhen Weiyixin Technology Co., Ltd. [Member] | |
Nature of Business and Organization (Details) - Schedule consolidated financial statements reflect the activities of WiMi Cayman and each of entities [Line Items] | |
Name | Shenzhen Weiyixin Technology Co., Ltd. (“Shenzhen Weiyixin” or “VIYI WFOE”) |
Background | • A PRC limited liability company and deemed a wholly foreign owned enterprise (“WFOE”) • Incorporated on November 18, 2020 • Registered capital of RMB 191,271,000 (USD 30,000,000) • A holding company |
Ownership | 100% owned by VIYI Ltd |
Shanghai Weimu Technology Co., Ltd. [Member] | |
Nature of Business and Organization (Details) - Schedule consolidated financial statements reflect the activities of WiMi Cayman and each of entities [Line Items] | |
Name | Shanghai Weimu Technology Co., Ltd. (“Shanghai Weimu”) |
Background | • A PRC limited liability company • Incorporated on November 30, 2020 • Registered capital of RMB 50,000,000 (USD 7,842,276) • Engages in providing software support services |
Ownership | 58% owned by VIYI Ltd |
Wisdom Lab Inc. [Member] | |
Nature of Business and Organization (Details) - Schedule consolidated financial statements reflect the activities of WiMi Cayman and each of entities [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 |
Viwo Technology Limited. [Member] | |
Nature of Business and Organization (Details) - Schedule consolidated financial statements reflect the activities of WiMi Cayman and each of entities [Line Items] | |
Name | Viwo Technology Limited. (“Viwo Tech”) |
Background | • A Hong Kong company • Incorporated on April 15, 2021 • Engages in intelligent chips design • No operations as of December 31, 2021 |
Ownership | 55% owned by VIYI Ltd |
Shenzhen Viwotong Technology Co., Ltd. [Member] | |
Nature of Business and Organization (Details) - Schedule consolidated financial statements reflect the activities of WiMi Cayman and each of entities [Line Items] | |
Name | Shenzhen Viwotong Technology Co., Ltd. (“Viwotong Tech”) |
Background | • A PRC limited liability company • Incorporated on July 19, 2021 • Registered capital of RMB 10,000,000 (USD 1,568,455) |
Ownership | 100% owned by Viwo Tech |
Shanghai Guoyu Information Technology Co., Ltd. [Member] | |
Nature of Business and Organization (Details) - Schedule consolidated financial statements reflect the activities of WiMi Cayman and each of entities [Line Items] | |
Name | Shanghai Guoyu Information Technology Co., Ltd. (“Shanghai Guoyu”) |
Background | • A PRC limited liability company • Incorporated on March 18, 2019 • Registered capital of RMB 20,000,000 (USD 3,136,910 ) • Engages in R&D and application of intelligent visual algorithm technology |
Ownership | 99% owned by Weidong, 1% owned by YY Online |
Kashi Guoyu Information Technology Co., Ltd. [Member] | |
Nature of Business and Organization (Details) - Schedule consolidated financial statements reflect the activities of WiMi Cayman and each of entities [Line Items] | |
Name | Kashi Guoyu Information Technology Co., Ltd. (“Kashi Guoyu”) |
Background | • A PRC limited liability company • Registered capital of RMB 10,000,000 (USD 1,568,455) • Incorporated on July 23, 2021 • Engages in R&D and application of intelligent visual algorithm technology |
Ownership | 100% owned by Shanghai Guoyu |
Guangzhou Tapuyu Internet Technology Co., Ltd. [Member] | |
Nature of Business and Organization (Details) - Schedule consolidated financial statements reflect the activities of WiMi Cayman and each of entities [Line Items] | |
Name | Guangzhou Tapuyu Internet Technology Co., Ltd. (“Tapuyu”) |
Background | • A PRC limited liability company • Registered capital of RMB 1,000,000 (USD 156,846 ) • Incorporated on June 22, 2021 • Engages in E-commerce services and application of intelligent visual algorithm technology |
Ownership | 100% owned by Viwotong Tech |
Pengcheng Keyi (Xi’an) Intelligence Technology Co., Ltd. [Member] | |
Nature of Business and Organization (Details) - Schedule consolidated financial statements reflect the activities of WiMi Cayman and each of entities [Line Items] | |
Name | Pengcheng Keyi (Xi’an) Intelligence Technology Co., Ltd. (“Pengcheng Keyi”) |
Background | • A PRC limited liability company • Registered capital of RMB 5,000,000 (USD 784,228) • Incorporated on July 29, 2021 • Engages in testing equipment development and sales |
Ownership | 100% owned by Viwotong Tech |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) | 1 Months Ended | 12 Months Ended | ||||||||||
Sep. 30, 2021CNY (¥) | Sep. 30, 2021USD ($) | Jul. 31, 2020USD ($) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥)shares | Dec. 31, 2021USD ($) | Apr. 15, 2021 | Aug. 21, 2020 | Jun. 01, 2020 | |
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||||
Translation adjustments description | Translation adjustments included in accumulated other comprehensive income (loss) amounted to RMB (35,434,146) and RMB (54,970,351) (USD 8,621,853) as of December 31, 2020 and 2021, respectively. The balance sheet amounts, with the exception of shareholders’ equity for WiMi HK and VIYI, at December 31, 2020 and 2021 were translated at RMB 1.00 to HKD 1.1882 and to HKD 1.2231, respectively. The average translation rates applied to statement of income accounts for the years ended December 31, 2019, 2020 and 2021 were RMB 1.00 to HKD 1.1363, HKD 1.1245 and to HKD 1.2048, respectively. The balance sheet amounts, with the exception of shareholders’ equity for WiMi Cayman, Skystar and Fe-da Electronics, at December 31, 2020 and 2021 were translated at RMB 1.00 to USD 0.1533 and to USD 0.1568, respectively. The average translation rates applied to statement of income accounts for the years ended December 31, 2019, 2020 and 2021 were RMB 1.00 to USD USD 0.1450, USD 0.1450 and to USD 0.1550, respectively. The shareholders’ equity accounts were stated at their historical rate. Cash flows are also translated at average translation rates for the periods, therefore, amounts reported on the statement of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheet. | Translation adjustments included in accumulated other comprehensive income (loss) amounted to RMB (35,434,146) and RMB (54,970,351) (USD 8,621,853) as of December 31, 2020 and 2021, respectively. The balance sheet amounts, with the exception of shareholders’ equity for WiMi HK and VIYI, at December 31, 2020 and 2021 were translated at RMB 1.00 to HKD 1.1882 and to HKD 1.2231, respectively. The average translation rates applied to statement of income accounts for the years ended December 31, 2019, 2020 and 2021 were RMB 1.00 to HKD 1.1363, HKD 1.1245 and to HKD 1.2048, respectively. The balance sheet amounts, with the exception of shareholders’ equity for WiMi Cayman, Skystar and Fe-da Electronics, at December 31, 2020 and 2021 were translated at RMB 1.00 to USD 0.1533 and to USD 0.1568, respectively. The average translation rates applied to statement of income accounts for the years ended December 31, 2019, 2020 and 2021 were RMB 1.00 to USD USD 0.1450, USD 0.1450 and to USD 0.1550, respectively. The shareholders’ equity accounts were stated at their historical rate. Cash flows are also translated at average translation rates for the periods, therefore, amounts reported on the statement of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheet. | ||||||||||
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, 2021 are solely for the convenience of the reader and were calculated at the rate of RMB 1.00 to USD 0.1568, representing the mid-point reference rate set by Peoples’ Bank of China on December 31, 2021. | 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, 2021 are solely for the convenience of the reader and were calculated at the rate of RMB 1.00 to USD 0.1568, representing the mid-point reference rate set by Peoples’ Bank of China on December 31, 2021. | ||||||||||
Net received (in Dollars) | $ | $ 2,006,000 | |||||||||||
Escrow deposit (in Dollars) | $ | $ 1,000,000 | |||||||||||
Legal proceeding | ¥ 442,560 | $ 69,414 | ||||||||||
Restricted cash | ¥ 442,560 | ¥ 13,088,949 | $ 69,414 | |||||||||
Allowance for doubtful accounts | ¥ 2,734,421 | 111,639,312 | 17,510,126 | |||||||||
Third party | 3.85% | 3.85% | ||||||||||
Loan terms | 1 year | 1 year | ||||||||||
Real estate property | ¥ 24,000,000 | 3,800,000 | ||||||||||
Other receivable | 326,268 | 1,180 | $ 51,000 | |||||||||
Other receivable- related parties | ¥ 27,589,530 | $ 4,327,294 | ||||||||||
Residual value percentage | 5.00% | 5.00% | ||||||||||
Properties description | The properties are expected to be completed between 2023 and 2024. | The properties are expected to be completed between 2023 and 2024. | ||||||||||
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 to be Disposed of | ¥ 4,308,822 | $ 675,819 | 0 | ¥ 0 | ||||||||
contract costs | 3,000,000 | 500,000 | ||||||||||
Advertising costs | ¥ 1,800 | $ 282 | 97,820 | 59,091 | ||||||||
VAT Percentage | 6.00% | 6.00% | ||||||||||
Recognized tax benefit | 50.00% | 50.00% | ||||||||||
Government subsidies | ¥ 1,035,527 | $ 162,418 | 1,097,498 | 1,356,800 | ||||||||
Other income | ¥ 4,042,172 | $ 633,997 | 2,414,387 | 2,390,525 | ||||||||
Additional input VAT percentage | 10.00% | 10.00% | ||||||||||
Right of use asset | ¥ 1,800,000 | |||||||||||
Incremental borrowing rate | 7.00% | 7.00% | ||||||||||
Total expenses | ¥ 2,683,929 | $ 420,962 | 1,123,211 | ¥ 1,451,938 | ||||||||
Equity interest rate | 55.00% | 53.00% | 51.00% | |||||||||
Noncontrolling interests subscriptions receivable (in Dollars) | $ | $ 88,671,062 | |||||||||||
Noncontrolling interests subscriptions receivable | (88,671,062) | (13,907,659) | ||||||||||
Noncontrolling interests, description | Noncontrolling interests consists of an aggregate of 47.0% of the equity interest of VIDA, 27% of the equity interest of VIYI as of December 31, 2021. ICinit was deconsolidated in October 2021. On March 26, 2021, Bofeng Investment Limited and Bravo Great Enterprises Limited transferred their respective shareholdings in VIYI to MIDI Capital Markets LLC (“MIDI”) and Guosheng Holdings Limited (“Guosheng”). On March 26, 2021, WiMi Cayman entered into an equity transfer agreement with MIDI and Guosheng, pursuant to which WiMi Cayman transferred total of 20% of the issued share capital of VIYI to Guosheng Holdings Limited for the same consideration of US$10,000,000. On March 26, 2021, WiMi Cayman entered into an equity transfer agreement with Universal Winnings Holding Limited (“Universal”) and Joyous Dragon Limited, pursuant to which WiMi Cayman transferred 7% of the issued share capital of VIYI for a consideration of USD 3,500,000. Joyous Dragon Limited subsequently transferred its equity interest to Milestone Investment Limited (“Milestone”). As such, MIDI, Guosheng, Universal and Milestone collectively owned 27% of VIYI for a total consideration of US13.5 million. | Noncontrolling interests consists of an aggregate of 47.0% of the equity interest of VIDA, 27% of the equity interest of VIYI as of December 31, 2021. ICinit was deconsolidated in October 2021. On March 26, 2021, Bofeng Investment Limited and Bravo Great Enterprises Limited transferred their respective shareholdings in VIYI to MIDI Capital Markets LLC (“MIDI”) and Guosheng Holdings Limited (“Guosheng”). On March 26, 2021, WiMi Cayman entered into an equity transfer agreement with MIDI and Guosheng, pursuant to which WiMi Cayman transferred total of 20% of the issued share capital of VIYI to Guosheng Holdings Limited for the same consideration of US$10,000,000. On March 26, 2021, WiMi Cayman entered into an equity transfer agreement with Universal Winnings Holding Limited (“Universal”) and Joyous Dragon Limited, pursuant to which WiMi Cayman transferred 7% of the issued share capital of VIYI for a consideration of USD 3,500,000. Joyous Dragon Limited subsequently transferred its equity interest to Milestone Investment Limited (“Milestone”). As such, MIDI, Guosheng, Universal and Milestone collectively owned 27% of VIYI for a total consideration of US13.5 million. | ||||||||||
Dilutive shares (in Shares) | shares | 8,611,133 | |||||||||||
Statutory surplus reserve fund, description | 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. | 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. | ||||||||||
Other Income Net [Member] | ||||||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||||
Other income | ¥ 2,429,701 | $ 381,088 | 1,282,807 | ¥ 851,583 | ||||||||
Minimum [Member] | ||||||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||||
Bear interest percentage | 0.00% | 0.00% | ||||||||||
Investments | 20.00% | 20.00% | ||||||||||
Maximum [Member] | ||||||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||||
Bear interest percentage | 3.85% | 3.85% | ||||||||||
Investments | 50.00% | 50.00% | ||||||||||
CHINA | ||||||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||||
VAT Percentage | 13.00% | 13.00% | ||||||||||
SINGAPORE | ||||||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||||
GST rate | 7.00% | 7.00% | ||||||||||
Two Individual Investors of VIDA [Member] | ||||||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||||
Noncontrolling interests subscriptions receivable | 172,528 | |||||||||||
One Individual Investor of ICinit [Member] | ||||||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||||
Noncontrolling interests subscriptions receivable | ¥ 412,384 | |||||||||||
VIDA [Member] | ||||||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||||
Equity interest rate | 47.00% | |||||||||||
ICinit [Member] | ||||||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||||
Equity interest rate | 49.00% | |||||||||||
VIYI [Member] | ||||||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||||
Equity interest rate | 13.50% | |||||||||||
Noncontrolling interests subscriptions receivable | ¥ 88,086,150 | $ 13,500,000 | ||||||||||
Two Individual Investors of VIDA [Member] | ||||||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||||
Noncontrolling interests subscriptions receivable | ¥ 172,528 | |||||||||||
Investments [Member] | ||||||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||||
Voting interest percentage | 20.00% | 20.00% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives | 12 Months Ended |
Dec. 31, 2021 | |
Office electronic equipment [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives [Line Items] | |
Property plant and equipment useful life | 3 years |
Office furniture and fixtures [Member] | Minimum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives [Line Items] | |
Property plant and equipment useful life | 3 years |
Office furniture and fixtures [Member] | Maximum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives [Line Items] | |
Property plant and equipment useful life | 5 years |
Building [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives [Line Items] | |
Property plant and equipment useful life | 20 years |
Leasehold improvements [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives [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, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Disaggregation of Revenue [Line Items] | ||||
Total revenues | ¥ 933,791,519 | $ 146,461,019 | ¥ 766,013,586 | ¥ 319,181,424 |
Online AR advertising services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 436,475,875 | 68,459,287 | 317,157,896 | 267,514,061 |
Mobile games [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 13,498,964 | 2,117,252 | 19,910,956 | 51,667,363 |
Sales of semiconductor products [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 448,958,274 | 70,417,095 | 385,538,235 | |
Software Development [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | ¥ 34,858,406 | $ 5,467,385 | ¥ 43,406,499 |
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, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Schedule of revenue by timing of transfer of goods or services [Abstract] | ||||
Goods and services transferred at a point in time | ¥ 898,933,113 | $ 140,993,634 | ¥ 722,607,087 | ¥ 319,181,424 |
Services transferred over time | 34,858,406 | 5,467,385 | 43,406,499 | |
Total revenues | ¥ 933,791,519 | $ 146,461,019 | ¥ 766,013,586 | ¥ 319,181,424 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Details) - Schedule of revenue by geographic locations | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Summary of Significant Accounting Policies (Details) - Schedule of revenue by geographic locations [Line Items] | ||||
Total revenues | ¥ 933,791,519 | $ 146,461,019 | ¥ 766,013,586 | ¥ 319,181,424 |
Mainland PRC revenues [Member] | ||||
Summary of Significant Accounting Policies (Details) - Schedule of revenue by geographic locations [Line Items] | ||||
Total revenues | 593,803,869 | 93,135,478 | 367,163,638 | 303,062,432 |
Hong Kong revenues [Member] | ||||
Summary of Significant Accounting Policies (Details) - Schedule of revenue by geographic locations [Line Items] | ||||
Total revenues | 118,590,946 | 18,600,459 | 264,404,450 | 295,037 |
International revenues [Member] | ||||
Summary of Significant Accounting Policies (Details) - Schedule of revenue by geographic locations [Line Items] | ||||
Total revenues | ¥ 221,396,704 | $ 34,725,082 | ¥ 134,445,498 | ¥ 15,823,955 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies (Details) - Schedule of noncontrolling interests | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Other Ownership Interests [Line Items] | |||
Total noncontrolling interests | ¥ 75,400,758 | $ 11,826,271 | ¥ 11,805,734 |
VIDA [Member] | |||
Other Ownership Interests [Line Items] | |||
Noncontrolling interests | (31,675,783) | (4,968,205) | 4,630,583 |
ICinit [Member] | |||
Other Ownership Interests [Line Items] | |||
Noncontrolling interests | 781,772 | ||
VIYI [Member] | |||
Other Ownership Interests [Line Items] | |||
Noncontrolling interests | 107,249,069 | 16,821,536 | 95,064,441 |
Noncontrolling interests subscriptions receivable [Member] | |||
Other Ownership Interests [Line Items] | |||
Noncontrolling interests | ¥ (172,528) | $ (27,060) | ¥ (88,671,062) |
Variable Interest Entity (_VI_3
Variable Interest Entity (“VIE”) (Details) - Schedule of Condensed Balance Sheet - Variable Interest Entity, Primary Beneficiary [Member] | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | |
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Current assets | ¥ 82,728,636 | $ 12,975,616 | ¥ 124,531,422 | |
Property and equipment, net | 24,385,762 | 3,824,798 | 362,130 | |
Other noncurrent assets | 493,404,511 | 77,388,289 | 472,662,535 | |
Total assets | 600,518,909 | 94,188,703 | 597,556,087 | |
Total liabilities | (614,667,803) | (96,407,893) | (258,081,528) | |
Net assets | (14,148,894) | (2,219,190) | 339,474,559 | |
Accounts payable | 15,072,302 | 2,364,023 | 24,921,108 | |
Deferred revenues | 9,713,168 | 1,523,467 | 10,475,681 | |
Other payables and accrued liabilities | 9,240,553 | 1,449,339 | 4,287,545 | |
Other payables – related parties | 12,725,539 | 1,995,944 | ||
Current portion of shareholder loans | 20,000,000 | 3,136,910 | 62,244,928 | |
Operating lease liabilities | 108,556 | 17,027 | 366,794 | |
Taxes payable | 5,858,717 | 918,914 | 9,452,749 | |
Intercompany payable | [1] | 474,812,478 | 74,472,211 | 122,842,378 |
Total current liabilities | 547,531,313 | 85,877,835 | 234,591,183 | |
Non-current shareholder loan | 67,136,490 | 10,530,058 | 22,016,710 | |
Operating lease liabilities – noncurrent | 120,033 | |||
Deferred tax liabilities, net | 1,353,602 | |||
Total liabilities | ¥ 614,667,803 | $ 96,407,893 | ¥ 258,081,528 | |
[1] | Intercompany balances will be eliminated upon consolidation. |
Variable Interest Entity (_VI_4
Variable Interest Entity (“VIE”) (Details) - Schedule of Condensed Income Statement - Variable Interest Entity, Primary Beneficiary [Member] | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Condensed Income Statements, Captions [Line Items] | ||||
Operating revenues | ¥ 202,340,230 | $ 31,736,159 | ¥ 336,709,317 | ¥ 319,181,424 |
Gross profit | 30,883,606 | 4,843,955 | 122,273,631 | 173,013,581 |
Income (loss) from operations | (25,262,236) | (3,962,269) | 55,174,632 | 122,754,439 |
Net income (loss) | ¥ (159,401,372) | $ (25,001,392) | ¥ 46,233,277 | ¥ 110,135,996 |
Variable Interest Entity (_VI_5
Variable Interest Entity (“VIE”) (Details) - Schedule of Condensed Cash Flow Statement - Variable Interest Entity, Primary Beneficiary [Member] | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net cash provided by operating activities | ¥ 44,560,277 | $ 6,989,080 | ¥ 127,238,346 | ¥ 193,845,889 |
Net cash used in investing activities | (49,269,310) | (7,727,671) | (109,815,861) | (126,445,437) |
Net cash (used in) provided by financing activities | 2,929,456 | 459,472 | (50,000) | (40,770,037) |
Effect of exchange rate on cash and cash equivalents | (1,061,729) | (166,527) | 1,479,386 | (327,988) |
Net increase in cash and cash equivalents | (2,841,306) | (445,646) | 18,851,871 | 26,302,427 |
Cash and cash equivalents, beginning of year | 59,249,721 | 9,293,053 | 40,397,850 | 14,095,423 |
Cash, cash equivalents and restricted cash, end of year | ¥ 56,408,415 | $ 8,847,407 | ¥ 59,249,721 | ¥ 40,397,850 |
Variable Interest Entity (_VI_6
Variable Interest Entity (“VIE”) (Details) - Schedule of cash, cash equivalents and restricted cash - Variable Interest Entity, Primary Beneficiary [Member] | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) |
Variable Interest Entity (“VIE”) (Details) - Schedule of cash, cash equivalents and restricted cash [Line Items] | ||||
Cash and cash equivalents | ¥ 55,965,855 | $ 8,777,993 | ¥ 59,249,721 | ¥ 40,397,850 |
Restricted cash | 442,560 | 69,414 | ||
Total cash, cash equivalents and restricted cash | ¥ 56,408,415 | $ 8,847,407 | ¥ 59,249,721 | ¥ 40,397,850 |
Business Combination (Details)
Business Combination (Details) | Mar. 01, 2021CNY (¥) | Sep. 28, 2020 | Mar. 26, 2020USD ($) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2021USD ($) | Jul. 01, 2021CNY (¥) | Jul. 01, 2021USD ($) | May 28, 2021CNY (¥) | May 28, 2021USD ($) | Mar. 01, 2021USD ($) | Jan. 22, 2021CNY (¥) | Jan. 22, 2021USD ($) | Nov. 27, 2020CNY (¥) | Nov. 27, 2020USD ($) |
Business Combination (Details) [Line Items] | |||||||||||||||||
Description of acquisitions | (“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. (“Tianjin Yaodi”), Ltd., a provider of electronic components, for RMB 2 (approximately USD 0.3). | ||||||||||||||||
Business acquisition payable | ¥ 1,864,131 | ¥ 1,864,131 | |||||||||||||||
Net of discount | 0 | 1,830,546 | |||||||||||||||
Business combination, amortization expense | 556,909 | 914,864 | $ 87,349 | ||||||||||||||
Fair value measurement of acquisition payable | 3,239,892 | $ 508,163 | |||||||||||||||
Acquisition payable decreased | 0 | ||||||||||||||||
Fair value of customer relationship | ¥ 27,300,000 | $ 4,000,000 | |||||||||||||||
Estimated average finite useful lives | 4 years | 4 years | |||||||||||||||
Fair value of cloud computing technologies | ¥ 3,100,000 | $ 400,000 | |||||||||||||||
Estimated average finite useful lives of technologies | 5 years | 5 years | |||||||||||||||
Goodwill arising from acquisition | ¥ 55,500,000 | $ 8,100,000 | |||||||||||||||
Amount of revenue | 124,413,884 | $ 19,067,554 | |||||||||||||||
Net income from the acquisition | 7,734,713 | 1,185,415 | |||||||||||||||
Unaudited pro forma revenue | 478,653,124 | 73,357,925 | |||||||||||||||
Unaudited pro forma net income | ¥ 8,956,366 | $ 1,372,644 | |||||||||||||||
Description of acquisitions | 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 | 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 | |||||||||||||||
Fair value exchange rate | ¥ 6.3858 | $ 1 | |||||||||||||||
Amount of sales | 103,201,670 | $ 15,947,348 | |||||||||||||||
Amount of net income | (783,032) | 120,999 | |||||||||||||||
Fair value | ¥ 9,000,000 | $ 1,400,000 | |||||||||||||||
Estimated finite useful life | 6 years | 6 years | |||||||||||||||
Acquisition description | 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. | 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. | |||||||||||||||
Fe-da Electronics [Member] | |||||||||||||||||
Business Combination (Details) [Line Items] | |||||||||||||||||
Acquired equity interests percentage | 100.00% | ||||||||||||||||
Acquisition consideration, description | According to the agreement, acquisition consideration is up to USD 35 million (approximately RMB 228.4 million) to acquire the 100% equity interests of Fe-da Electronics. Pursuant to the amended and supplemented agreement, VIYI is to pay USD 15 million (approximately RMB 97.9 million) in cash, and the remaining cash payments for this acquisition are expected to be made in three installments during the next three years, subject to the fulfilment of certain performance conditions by Fe-da Electronics. The first payment of USD 6 million (approximately RMB 39.1 million) is due on March 31, 2022 if the net income of Fe-da Electronics for the year of 2021 is at least USD 3 million (approximately RMB 19.6 million); the second payment of USD 6 million (approximately RMB 39.1 million) is due on March 31, 2023 if the net income of Fe-da Electronics for the year of 2022 is at least USD 6 million (approximately RMB 39.1 million); and the third payment of USD 8 million (approximately RMB 52.2 million) is due on March 31, 2024 if the net income of Fe-da Electronics for the year of 2023 is at least USD 9 million (approximately RMB 58.7 million). | ||||||||||||||||
Number of installments | 3 | ||||||||||||||||
Settlement term | 3 years | ||||||||||||||||
Target net income (in Dollars) | $ | $ 20,000,000 | ||||||||||||||||
Foreign currency translation adjustment, description | the Company and translated the fair value from USD to RMB using the exchange rate on September 28, 2020 at the rate of USD 1.00 to RMB 6.8252. | ||||||||||||||||
VIYI [Member] | |||||||||||||||||
Business Combination (Details) [Line Items] | |||||||||||||||||
Business acquisition payable | ¥ 97,900,000 | $ 15,000,000 | |||||||||||||||
Acquisitions of Tapuyu and Pengcheng Keyi [Member] | |||||||||||||||||
Business Combination (Details) [Line Items] | |||||||||||||||||
Description of acquisitions | 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 Pte Ltd. (“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 consummated on September 28, 2020 | 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 Pte Ltd. (“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 consummated on September 28, 2020 | |||||||||||||||
Shenzhen Yichong [Member] | |||||||||||||||||
Business Combination (Details) [Line Items] | |||||||||||||||||
Fair value exchange rate | ¥ 6.4617 | $ 1 | |||||||||||||||
Shenzheng Shengtang [Member] | |||||||||||||||||
Business Combination (Details) [Line Items] | |||||||||||||||||
Fair value exchange rate | ¥ 6.4754 | $ 1 | |||||||||||||||
Shanghai Guoyu [Member] | |||||||||||||||||
Business Combination (Details) [Line Items] | |||||||||||||||||
Description of acquisitions | , 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”). | , 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”). | |||||||||||||||
Fair value exchange rate | ¥ 6.4709 | $ 1 |
Business Combination (Details)
Business Combination (Details) - Schedule of fair value of consideration to acquire Fe-da Electronics - 1 months ended Sep. 28, 2020 - Fe-da Electronics [Member] | CNY (¥) | USD ($) |
Business Acquisition, Contingent Consideration [Line Items] | ||
Present value of cash to be paid by November 30, 2020 | ¥ 101,472,360 | $ 14,867,309 |
Present value of contingent cash installments | 1,949,926 | 285,695 |
Total consideration at fair value | ¥ 103,422,286 | $ 15,153,004 |
Business Combination (Details_2
Business Combination (Details) - Schedule of fair value of the identifiable assets acquired and liabilities - Dec. 31, 2021 | CNY (¥) | USD ($) |
Schedule of fair value of the identifiable assets acquired and liabilities [Abstract] | ||
Cash and cash equivalents | ¥ 2,413,276 | $ 353,583 |
Other current assets | 42,183,452 | 6,180,544 |
Plant and equipment | 9,930 | 1,455 |
Intangible assets | 30,353,889 | 4,447,326 |
Other noncurrent assets | 89,252 | 13,078 |
Total assets | 75,049,799 | 10,995,986 |
Total liabilities | (27,170,661) | (3,980,933) |
Fair value of net assets acquired | 47,879,138 | 7,015,053 |
Goodwill | 55,543,148 | 8,137,951 |
Total consideration | ¥ 103,422,286 | $ 15,153,004 |
Business Combination (Details_3
Business Combination (Details) - Schedule of fair value of the identifiable assets acquired and liabilities - Dec. 31, 2021 | CNY (¥) | USD ($) |
Schedule of fair value of the identifiable assets acquired and liabilities [Abstract] | ||
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 |
Business Combination (Details_4
Business Combination (Details) - Schedule of fair value of the identifiable assets acquired and liabilities - Dec. 31, 2021 | CNY (¥) | USD ($) |
Schedule of fair value of the identifiable assets acquired and liabilities [Abstract] | ||
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 |
Business Combination (Details_5
Business Combination (Details) - Schedule of fair value of the identifiable assets acquired and liabilities - Dec. 31, 2021 | CNY (¥) | USD ($) |
Schedule of fair value of the identifiable assets acquired and liabilities [Abstract] | ||
Cash | ¥ 161,638 | $ 25,335 |
Other current assets | 1,701,734 | 266,815 |
Current liabilities | (1,863,372) | (292,150) |
Total consideration |
Deconsolidation of VIDA and I_3
Deconsolidation of VIDA and ICinit (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Oct. 01, 2021CNY (¥) | Oct. 01, 2021USD ($) | Oct. 01, 2021HKD ($) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2021USD ($) | |
Deconsolidation of VIDA and ICinit (Details) [Line Items] | ||||||||
Noncontrolling interest | 49.00% | 49.00% | 49.00% | |||||
Proceeds from related party | ¥ 27,589,530 | $ 4,327,294 | ||||||
Income | ¥ 721,439 | $ 113,154 | ||||||
ICinit [Member] | ||||||||
Deconsolidation of VIDA and ICinit (Details) [Line Items] | ||||||||
Issued share capital percentage | 2.00% | 2.00% | 2.00% | |||||
Consideration amount | ¥ 41,000 | $ 6,000 | $ 50,000 | |||||
Retained interest amounted | ¥ 410,337 | ¥ 410,337 | $ 63,603 |
Deconsolidation of VIDA and I_4
Deconsolidation of VIDA and ICinit (Details) - Schedule of loss from sales of this transaction - 1 months ended Oct. 01, 2021 - ICinit [Member] | CNY (¥) | USD ($) |
Deconsolidation of VIDA and ICinit (Details) - Schedule of loss from sales of this transaction [Line Items] | ||
Consideration receivable | ¥ 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 | 387,568 |
Less: ICinit’s book value | (3,361,955) | (527,308) |
Exchange rate difference | (10,590) | |
Loss on deconsolidation | ¥ (901,526) | $ (139,739) |
Short Term Investments (Details
Short Term Investments (Details) ¥ in Millions, $ in Millions | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Debt Disclosure [Abstract] | |||
Investment total | ¥ 149.1 | $ 23.1 | ¥ 173.6 |
Marketable securities and redeemed | 150.9 | 23.4 | 151.1 |
Fair value gains | ¥ 2.5 | $ 0.4 | ¥ 12.3 |
Short Term Investments (Detai_2
Short Term Investments (Details) - Schedule of short term investments | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | |
Short-Term Investments [Member] | ||||
Short-Term Debt [Line Items] | ||||
Marketable securities | [1] | ¥ 33,540,301 | $ 5,260,646 | ¥ 32,878,252 |
[1] | During the year ended December 31, 2020, the Company invested a total of approximately RMB 173.6 million in marketable securities and redeemed approximately RMB 151.1 million. During the year ended December 31, 2021, the Company invested a total of approximately RMB 149.1 million (USD 23.1 million) in marketable securities and redeemed approximately RMB 150.9 million (USD 23.4 million). The fair value change resulted in gains of approximately RMB 12.3 million and RMB 2.5 million (USD 0.4 million) for the years ended December 31, 2020 and 2021. |
Short Term Investments (Detai_3
Short Term Investments (Details) - Schedule of fair value disclosure - CNY (¥) | Dec. 31, 2021 | Dec. 31, 2020 |
Short Term Investments (Details) - Schedule of fair value disclosure [Line Items] | ||
Marketable securities | ¥ 33,540,301 | ¥ 32,878,252 |
Level 1 [Member] | ||
Short Term Investments (Details) - Schedule of fair value disclosure [Line Items] | ||
Marketable securities | 33,540,301 | 32,878,252 |
Level 2 [Member] | ||
Short Term Investments (Details) - Schedule of fair value disclosure [Line Items] | ||
Marketable securities | ||
Level 3 [Member] | ||
Short Term Investments (Details) - Schedule of fair value disclosure [Line Items] | ||
Marketable securities |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Details) - Schedule of accounts receivable, net | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Schedule of accounts receivable, net [Abstract] | |||
Accounts receivable | ¥ 137,875,301 | $ 21,625,124 | ¥ 175,349,044 |
Less: allowance for doubtful accounts | (111,639,312) | (17,510,127) | (2,734,421) |
Accounts receivable, net | ¥ 26,235,989 | $ 4,114,997 | ¥ 172,614,623 |
Accounts Receivable, Net (Det_2
Accounts Receivable, Net (Details) - Schedule of changes in allowance for doubtful accounts | 12 Months Ended | ||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | |
Schedule of changes in allowance for doubtful accounts [Abstract] | |||
Beginning balance | ¥ 2,734,421 | $ 428,882 | ¥ 1,577,486 |
Addition | 128,392,115 | 20,137,728 | 1,156,935 |
Deconsolidation of ICinit and subsidiaries | (19,487,224) | (3,056,484) | |
Ending balance | ¥ 111,639,312 | $ 17,510,126 | ¥ 2,734,421 |
Inventories (Details)
Inventories (Details) - Dec. 31, 2021 | CNY (¥) | USD ($) |
Inventory Disclosure [Abstract] | ||
Inventory impairment amount | ¥ 8,116,218 | $ 1,272,992 |
Inventories (Details) - Schedul
Inventories (Details) - Schedule of inventories | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Inventory [Line Items] | |||
Total inventories | ¥ 6,841,745 | $ 1,073,097 | ¥ 4,117,807 |
Holographic Accessories [Member] | |||
Inventory [Line Items] | |||
Total inventories | 1,590,495 | 249,462 | 3,167,879 |
Semiconductor [Member] | |||
Inventory [Line Items] | |||
Total inventories | ¥ 5,251,250 | $ 823,635 | ¥ 949,928 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) | 12 Months Ended | |||||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | |
Property, Plant and Equipment [Abstract] | ||||||
Depreciation expense | ¥ 1,124,655 | $ 176,397 | ¥ 483,658 | ¥ 690,400 | ||
Impairment loss | ¥ 38,573 | $ 6,050 | $ 0 | $ 0 |
Property and Equipment, Net (_2
Property and Equipment, Net (Details) - Schedule of property and equipment, net | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Property, Plant and Equipment [Line Items] | |||
Less: accumulated depreciation | ¥ (3,150,073) | $ (494,075) | ¥ (2,587,771) |
Total | 24,839,545 | 3,895,971 | 729,212 |
Office electronic equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property plant and equipment, subtotal | 1,758,527 | 275,817 | 1,859,484 |
Office fixtures and furniture [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property plant and equipment, subtotal | 41,392 | 6,492 | 88,577 |
Building [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property plant and equipment, subtotal | 24,825,710 | 3,893,801 | |
Leasehold improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property plant and equipment, subtotal | 1,363,989 | 213,936 | 1,368,922 |
Subtotal [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property plant and equipment, subtotal | ¥ 27,989,618 | $ 4,390,046 | ¥ 3,316,983 |
Cost Method Investments (Detail
Cost Method Investments (Details) | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Cost And Method Investments Disclosure [Abstract] | ||||
Total cost method investments | ¥ 600,000 | $ 94,107 | ¥ 109,700,000 | ¥ 3,850,000 |
Cost Method Investments (Deta_2
Cost Method Investments (Details) - Schedule of cost method investments | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
9.0% Investment [Member] | |||
Cost Method Investments (Details) - Schedule of cost method investments [Line Items] | |||
Total | ¥ 45,000,000 | $ 7,058,048 | ¥ 45,000,000 |
8.0% Investment [Member] | |||
Cost Method Investments (Details) - Schedule of cost method investments [Line Items] | |||
Total | 1,100,000 | 172,530 | 1,100,000 |
6.0% Investment [Member] | |||
Cost Method Investments (Details) - Schedule of cost method investments [Line Items] | |||
Total | 600,000 | 94,107 | 600,000 |
5.5% Investment [Member] | |||
Cost Method Investments (Details) - Schedule of cost method investments [Line Items] | |||
Total | 600,000 | 94,107 | 600,000 |
5.0% Investment [Member] | |||
Cost Method Investments (Details) - Schedule of cost method investments [Line Items] | |||
Total | 51,000,000 | 7,999,122 | 50,400,000 |
4.5% Investment [Member] | |||
Cost Method Investments (Details) - Schedule of cost method investments [Line Items] | |||
Total | 200,000 | 31,369 | 200,000 |
4.0% Investment [Member] | |||
Cost Method Investments (Details) - Schedule of cost method investments [Line Items] | |||
Total | 8,400,000 | 1,317,502 | 8,400,000 |
3.5% Investment [Member] | |||
Cost Method Investments (Details) - Schedule of cost method investments [Line Items] | |||
Total | 1,200,000 | 188,215 | 1,200,000 |
3.0% Investment [Member] | |||
Cost Method Investments (Details) - Schedule of cost method investments [Line Items] | |||
Total | 3,900,000 | 611,698 | 3,900,000 |
2.0% Investment [Member] | |||
Cost Method Investments (Details) - Schedule of cost method investments [Line Items] | |||
Total | 1,200,000 | 188,215 | 1,200,000 |
1.0% Investment [Member] | |||
Cost Method Investments (Details) - Schedule of cost method investments [Line Items] | |||
Total | 1,450,000 | 227,426 | 1,450,000 |
Total [Member] | |||
Cost Method Investments (Details) - Schedule of cost method investments [Line Items] | |||
Total | ¥ 114,650,000 | $ 17,982,339 | ¥ 114,050,000 |
Cost Method Investments (Deta_3
Cost Method Investments (Details) - Schedule of cost method investments (Parentheticals) | Dec. 31, 2021 |
1 company in the AR and virtual reality (“VR”) areas [Member] | |
Cost Method Investments (Details) - Schedule of cost method investments (Parentheticals) [Line Items] | |
Investment interest rate | 9.00% |
2 companies in the AR and VR areas [Member] | |
Cost Method Investments (Details) - Schedule of cost method investments (Parentheticals) [Line Items] | |
Investment interest rate | 8.00% |
1 company in the AR, VR, software and robotic areas [Member] | |
Cost Method Investments (Details) - Schedule of cost method investments (Parentheticals) [Line Items] | |
Investment interest rate | 6.00% |
1 company in the AR, VR and game areas [Member] | |
Cost Method Investments (Details) - Schedule of cost method investments (Parentheticals) [Line Items] | |
Investment interest rate | 5.50% |
22 companies in the AR, VR and digital marketing area [Member] | |
Cost Method Investments (Details) - Schedule of cost method investments (Parentheticals) [Line Items] | |
Investment interest rate | 5.00% |
1 company in the VR medical treatment areas [Member] | |
Cost Method Investments (Details) - Schedule of cost method investments (Parentheticals) [Line Items] | |
Investment interest rate | 4.50% |
14 companies in the AR, VR, 3D animation and software areas [Member] | |
Cost Method Investments (Details) - Schedule of cost method investments (Parentheticals) [Line Items] | |
Investment interest rate | 4.00% |
2 companies in the AR and VR areas [Member] | |
Cost Method Investments (Details) - Schedule of cost method investments (Parentheticals) [Line Items] | |
Investment interest rate | 3.50% |
5 companies in the AR, VR and 3D animation areas [Member] | |
Cost Method Investments (Details) - Schedule of cost method investments (Parentheticals) [Line Items] | |
Investment interest rate | 3.00% |
4 companies in the AR, VR, 3D animation and software areas [Member] | |
Cost Method Investments (Details) - Schedule of cost method investments (Parentheticals) [Line Items] | |
Investment interest rate | 2.00% |
5 companies in the AR, VR, 3D animation, hardware and software areas [Member] | |
Cost Method Investments (Details) - Schedule of cost method investments (Parentheticals) [Line Items] | |
Investment interest rate | 1.00% |
Intangible Assets, Net (Details
Intangible Assets, Net (Details) | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Intangible Assets, Net [Abstract] | ||||
Impairment amount | ¥ 278,679 | $ 43,710 | ||
Acquisition of guoyu | ¥ 8,955,000 | $ 1,404,552 | ||
Acquire capital stock percentage | 100.00% | 100.00% | ||
Aggregate consideration | ¥ 58,450,000 | $ 9,000,000 | ||
Fair value of non-complete agreement | 20,363,661 | 4,913,042 | ||
Accumulated amortization (in Dollars) | 16,431,724 | |||
Impairment loss | 3,991,570 | 626,060 | ||
Amortization expense | ¥ 17,400,708 | $ 2,729,222 | ¥ 14,067,634 | ¥ 13,193,519 |
Intangible Assets, Net (Detai_2
Intangible Assets, Net (Details) - Schedule of acquired intangible asset | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | |
Schedule of acquired intangible asset [Abstract] | ||||
Copyrights | [1] | ¥ 8,955,000 | $ 1,404,552 | ¥ 579,722 |
Customer relationship | 25,502,800 | 4,000,000 | 26,099,600 | |
Non-compete agreements | [2] | 42,200,000 | 6,618,881 | 64,370,622 |
Technology know-hows | [2] | 2,852,016 | 447,327 | 14,709,556 |
Subtotal | 79,509,816 | 12,470,760 | 105,759,500 | |
Less: accumulated amortization | (51,628,879) | (8,097,760) | (64,517,409) | |
Intangible assets, net | ¥ 27,880,937 | $ 4,373,000 | ¥ 41,242,091 | |
[1] | The Company’s subsidiary Shenzhen Kuxuanyou and Shenzhen Yiran, recorded impairment of RMB 278,679 (USD 43,710) for the year ended December 31, 2021. The addition of copy right of RMB 8,955,000 (USD 1,404,552) was from acquisition of Guoyu, see note 4. | |||
[2] | Micro Beauty acquired Skystar in 2017 to acquire 100% of the capital stock of Skystar for an aggregate consideration of RMB 58,450,000 (approximately USD 9.0 million). The fair value of non-complete agreement and technology know-hows were evaluated at of RMB 20,363,661 (USD 4,913,042), and their accumulated amortization as of December 31, 2021 was RMB 16,431,724. Impairment loss of RMB 3,991,570 (USD 626,060) was recognized for the year ended December 31, 2021. |
Intangible Assets, Net (Detai_3
Intangible Assets, Net (Details) - Schedule of estimated amortization - Dec. 31, 2021 | CNY (¥) | USD ($) |
Schedule of estimated amortization [Abstract] | ||
2022 | ¥ 8,737,103 | $ 1,370,376 |
2023 | 8,737,103 | 1,370,376 |
2024 | 7,143,178 | 1,120,376 |
2025 | 3,263,553 | 511,872 |
Thereafter | ||
Total | ¥ 27,880,937 | $ 4,373,000 |
Goodwill (Details)
Goodwill (Details) | 12 Months Ended | |||||||||||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2015USD ($) | |
Cost and Method Investments Details [Abstract] | ||||||||||||
Goodwill impairment | ¥ 131,200,000 | $ 20,600,000 | ¥ 7,300,000 | $ 1,100,000 | ||||||||
Shenzhen Kuxuanyou [Member] | ||||||||||||
Cost and Method Investments Details [Abstract] | ||||||||||||
Acquired percentage | 100.00% | 100.00% | ||||||||||
Aggregate consideration | ¥ 113,000,000 | $ 16,500,000 | ||||||||||
Identifiable assets acquired | ¥ 87,908,370 | $ 13,472,754 | ||||||||||
Impairment loss | 87,913,368 | $ 13,788,818 | ||||||||||
Shenzhen Yidian [Member] | ||||||||||||
Cost and Method Investments Details [Abstract] | ||||||||||||
Acquired percentage | 100.00% | 100.00% | ||||||||||
Aggregate consideration | ¥ 168,000,000 | $ 24,500,000 | ||||||||||
Identifiable assets acquired | 137,060,340 | $ 21,005,738 | ||||||||||
Shenzhen Yitian [Member] | ||||||||||||
Cost and Method Investments Details [Abstract] | ||||||||||||
Acquired percentage | 100.00% | 100.00% | ||||||||||
Aggregate consideration | ¥ 192,000,000 | $ 28,000,000 | ||||||||||
Identifiable assets acquired | ¥ 160,990,256 | $ 24,673,214 | ||||||||||
Impairment loss | ¥ 68,000,000 | $ 10,421,615 | ||||||||||
Skystar [Member] | ||||||||||||
Cost and Method Investments Details [Abstract] | ||||||||||||
Acquired percentage | 100.00% | 100.00% | ||||||||||
Aggregate consideration | ¥ 58,450,000 | $ 9,000,000 | ||||||||||
Identifiable assets acquired | ¥ 32,057,115 | $ 4,913,042 | ||||||||||
Impairment loss | 24,823,549 | ¥ 7,276,957 | 3,893,463 | |||||||||
Fe-da Electronics [Member] | ||||||||||||
Cost and Method Investments Details [Abstract] | ||||||||||||
Acquired percentage | 100.00% | 100.00% | ||||||||||
Aggregate consideration | ¥ 104,646,044 | $ 15,300,000 | ||||||||||
Identifiable assets acquired | ¥ 53,099,316 | $ 8,137,951,000,000 | ||||||||||
Impairment loss | ¥ 18,457,742 | $ 2,895,014 | ||||||||||
Shanghai Guoyu [Member] | ||||||||||||
Cost and Method Investments Details [Abstract] | ||||||||||||
Acquired percentage | 100.00% | 100.00% | ||||||||||
Aggregate consideration | ¥ 20,000,000 | $ 3,100,000 | ||||||||||
Identifiable assets acquired | ¥ 13,283,750 | $ 2,000,000 |
Goodwill (Details) - Schedule o
Goodwill (Details) - Schedule of components of acquired goodwill balances | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | ||
Goodwill (Details) - Schedule of components of acquired goodwill balances [Line Items] | ||||
Goodwill | ¥ 276,978,601 | $ 43,442,853 | ¥ 396,228,760 | |
Goodwill from Shenzhen Kuxuanyou acquisition [Member] | ||||
Goodwill (Details) - Schedule of components of acquired goodwill balances [Line Items] | ||||
Goodwill | [1] | 87,908,370 | ||
Goodwill from Shenzhen Yidian acquisition [Member] | ||||
Goodwill (Details) - Schedule of components of acquired goodwill balances [Line Items] | ||||
Goodwill | [2] | 137,060,340 | 21,497,301 | 137,060,340 |
Goodwill from Shenzhen Yitian acquisition [Member] | ||||
Goodwill (Details) - Schedule of components of acquired goodwill balances [Line Items] | ||||
Goodwill | [3] | 92,990,256 | 14,585,105 | 92,990,256 |
Goodwill from Skystar acquisition [Member] | ||||
Goodwill (Details) - Schedule of components of acquired goodwill balances [Line Items] | ||||
Goodwill | [4] | 25,170,478 | ||
Goodwill from Fe-da Electronics acquisition [Member] | ||||
Goodwill (Details) - Schedule of components of acquired goodwill balances [Line Items] | ||||
Goodwill | [5] | 33,644,255 | 5,276,950 | 53,099,316 |
Goodwill from Guoyu acquisition [Member] | ||||
Goodwill (Details) - Schedule of components of acquired goodwill balances [Line Items] | ||||
Goodwill | [6] | ¥ 13,283,750 | $ 2,083,497 | |
[1] | Beijing WiMi acquired Shenzhen Kuxuanyou in 2015 to acquire 100% of the capital stock of Shenzhen Kuxuanyou for an aggregate consideration of RMB 113.0 million (approximately USD 16.5 million). The excess fair value of consideration over the identifiable assets acquired of RMB 87,908,370 (USD 13,472,754) was allocated to goodwill. Impairment loss of RMB 87,913,368 (USD 13,788,818) was recognized for the year ended December 31, 2021. | |||
[2] | Beijing WiMi acquired Shenzhen Yidian in 2015 to acquire 100% of the capital stock of Shenzhen Yidian for an aggregate consideration of RMB 168.0 million (approximately USD 24.5 million). The excess fair value of consideration over the identifiable assets acquired of RMB 137,060,340 (USD 21,005,738) was allocated to goodwill. | |||
[3] | Beijing WiMi acquired Shenzhen Yitian in 2015 to acquire 100% of the capital stock of Shenzhen Yitian for an aggregate consideration of RMB 192.0 million (approximately USD 28.0 million). The excess fair value of consideration over the identifiable assets acquired of RMB 160,990,256 (USD 24,673,214) was allocated to goodwill. Impairment loss of RMB 68,000,000 (USD 10,421,615) was recognized for the year ended December 31, 2016. | |||
[4] | Micro Beauty acquired Skystar in 2017 to acquire 100% of the capital stock of Skystar for an aggregate consideration of RMB 58,450,000 (approximately USD 9.0 million). The excess fair value of consideration over the identifiable assets acquired of RMB 32,057,115 (USD 4,913,042) was allocated to goodwill. Impairment loss of RMB 7,276,957 and RMB 24,823,549 (USD 3,893,463) was recognized for the years ended December 31, 2020 and 2021. | |||
[5] | VIYI acquired Fe -da -da | |||
[6] | Weidong and YY Online acquired Shanghai Guoyu in 2021 to acquire 100% of the capital stock of Shanghai Guoyu for a net consideration of RMB 20,000,000 (approximately USD 3.1 million). The excess fair value of consideration over the identifiable assets acquired of RMB 13,283,750 (approximately USD 2.0 million) was allocated to goodwill for the central processing algorithm services segment. |
Goodwill (Details) - Schedule_2
Goodwill (Details) - Schedule of changes in the carrying amount of goodwill allocated to reportable segments | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | |
Goodwill [Line Items] | ||||
Balance | ¥ 396,228,760 | $ 62,146,706 | ¥ 352,079,834 | $ 55,222,145 |
Add: acquisition of Fe-da Electronics | 55,543,148 | 8,711,694 | ||
Less: impairment loss | (131,194,659) | (20,577,295) | (7,276,957) | (1,141,358) |
Translation difference | (1,339,250) | (210,055) | (4,117,265) | (645,775) |
Balance | 276,978,601 | 43,442,853 | 396,228,760 | $ 62,146,706 |
Add: acquisition of Guoyu | 13,283,750 | $ 2,083,497 | ||
AR advertising services [Member] | ||||
Goodwill [Line Items] | ||||
Balance | 137,060,340 | 137,060,340 | ||
Add: acquisition of Fe-da Electronics | ||||
Less: impairment loss | ||||
Translation difference | ||||
Balance | 150,344,090 | 137,060,340 | ||
Add: acquisition of Guoyu | 13,283,750 | |||
AR entertainment [Member] | ||||
Goodwill [Line Items] | ||||
Balance | 206,069,104 | 215,019,494 | ||
Add: acquisition of Fe-da Electronics | ||||
Less: impairment loss | (112,736,917) | (7,276,957) | ||
Translation difference | (341,931) | (1,673,433) | ||
Balance | 92,990,256 | 206,069,104 | ||
Add: acquisition of Guoyu | ||||
Semiconductor business [Member] | ||||
Goodwill [Line Items] | ||||
Balance | 53,099,316 | |||
Add: acquisition of Fe-da Electronics | 55,543,148 | |||
Less: impairment loss | (18,457,742) | |||
Translation difference | (997,319) | (2,443,832) | ||
Balance | 33,644,255 | ¥ 53,099,316 | ||
Add: acquisition of Guoyu |
Other Payables and Accrued Li_3
Other Payables and Accrued Liabilities (Details) - Schedule of other payables and accrued liabilities | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Schedule of other payables and accrued liabilities [Abstract] | |||
Salary payables | ¥ 2,011,702 | $ 315,524 | ¥ 1,880,897 |
Other payables and accrued expenses | 3,446,740 | 540,606 | 60,328 |
Accrued interest payable | 8,197,112 | 1,285,680 | 3,129,399 |
Total other payables and accrued liabilities | ¥ 13,655,554 | $ 2,141,810 | ¥ 5,070,624 |
Related Party Balances and Tr_3
Related Party Balances and Transactions (Details) | Oct. 01, 2021CNY (¥) | Oct. 01, 2021USD ($) | Oct. 10, 2021CNY (¥) | Oct. 10, 2021USD ($) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2021USD ($) |
Related Party Balances and Transactions (Details) [Line Items] | |||||||||||
Repayment of debt | ¥ 47,560,843 | $ 7,459,705 | ¥ 96,350,000 | ||||||||
Related party receivable | ¥ 27,589,530 | $ 4,327,294 | |||||||||
Jie Zhao [Member] | |||||||||||
Related Party Balances and Transactions (Details) [Line Items] | |||||||||||
Borrowed from related party | 13,000,000 | ¥ 14,581,993 | |||||||||
Repayment of debt | 129,474,000 | ¥ 14,826,000 | |||||||||
Repaid the remaining balance | 6,154,468 | 965,000 | 4,850,000 | $ 743,306 | |||||||
Shanghai Junei Internets Co [Member] | |||||||||||
Related Party Balances and Transactions (Details) [Line Items] | |||||||||||
Borrowed from related party | 75,500,000 | ||||||||||
Repayment of debt | 91,500,000 | 14,023,203 | |||||||||
Borrowed additional amount | 42,600,000 | 6,681,619 | 96,300,000 | $ 14,758,847 | |||||||
Repaid Amount | ¥ 35,763,510 | $ 6,154,468 | |||||||||
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 | 7.00% | 7.00% | |||||||||
Interest expense related to loan | ¥ 2,281,611 | ¥ 290,208 | |||||||||
Finance expense | ¥ 5,625,293 | $ 882,302 | |||||||||
Shanghai Weimu [Member] | |||||||||||
Related Party Balances and Transactions (Details) [Line Items] | |||||||||||
Borrowed from related party | ¥ 5,616,000 | $ 880,867 | |||||||||
Interest expense related to loan | ¥ 62,209 | $ 9,757 | |||||||||
Loans bear interest | 7.00% | 7.00% | |||||||||
Shenzhen Yiyun Technology Co Ltd [Member] | |||||||||||
Related Party Balances and Transactions (Details) [Line Items] | |||||||||||
Borrowed from related party | ¥ 16,100,000 | $ 2,525,213 | |||||||||
Related party due , description | The loan bears no interest and is due in five years. | The loan bears no interest and is due in five years. |
Related Party Balances and Tr_4
Related Party Balances and Transactions (Details) - Schedule of related party transactions | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Related Party Transaction [Line Items] | |||
Total | ¥ 87,136,490 | $ 13,666,968 | ¥ 86,561,665 |
Current portion of related party loan | 20,000,000 | 3,136,910 | 63,876,153 |
Related party loan – non-current | 67,136,490 | 10,530,058 | 22,685,512 |
Loan [Member] | Jie Zhao [Member] | Chairman of Wimi Cayman One [Member] | |||
Related Party Transaction [Line Items] | |||
Total | 6,261,665 | ||
Loan [Member] | Yang Cui [Member] | Executive director of Beijing WiMi [Member] | |||
Related Party Transaction [Line Items] | |||
Total | 16,100,000 | 2,525,213 | |
Loan [Member] | Shanghai Junei Internet Co. [Member] | Under common control of Jie Zhao [Member] | |||
Related Party Transaction [Line Items] | |||
Total | ¥ 71,036,490 | $ 11,141,755 | ¥ 80,300,000 |
Related Party Balances and Tr_5
Related Party Balances and Transactions (Details) - Schedule of maturities - Dec. 31, 2021 | CNY (¥) | USD ($) |
Schedule of maturities [Abstract] | ||
2021 | ¥ 20,000,000 | $ 3,136,910 |
2022 | 67,136,490 | 10,530,058 |
Total | ¥ 87,136,490 | $ 13,666,968 |
Banking Facility (Details)
Banking Facility (Details) | 12 Months Ended | ||||
Dec. 31, 2021CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2021USD ($) | Jul. 08, 2020CNY (¥) | Jul. 08, 2020USD ($) | |
Banking Facility [Abstract] | |||||
Revised amount received | ¥ 13,000,000 | $ 2,000,000 | |||
Credit line repaid | ¥ 20,531,708 | $ 2,328,750 | $ 3,182,468 | ||
Interest expense | 50,198 | $ 87,460 | |||
Borrowed additional amount | ¥ 7,628,698 | 1,182,468 | |||
Interest expense | $ 7,780 |
Banking Facility (Details) - Sc
Banking Facility (Details) - Schedule of outstanding balance of banking facility - DBS Bank, Ltd. (“DBS”) [Member] | 12 Months Ended | ||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | |
Banking Facility (Details) - Schedule of outstanding balance of banking facility [Line Items] | |||
Term | July 8, 2020 to February 28, 2021 | July 8, 2020 to February 28, 2021 | |
Interest rate, description | DBS Prevailing Cost of Funds +2.5% (Approximately 5%-5.5%) | DBS Prevailing Cost of Funds +2.5% (Approximately 5%-5.5%) | |
Collateral/Guarantee | Guaranteed by Mr. Huang Guanchao (Fe-da Electronics’ former director) and Mr. Lim Tzea (Fe-da Electronics’ general manager and director) and Mr. Lim Tzea’s assigned life insurance | Guaranteed by Mr. Huang Guanchao (Fe-da Electronics’ former director) and Mr. Lim Tzea (Fe-da Electronics’ general manager and director) and Mr. Lim Tzea’s assigned life insurance | |
Outstanding balance of bank facility | ¥ 13,049,800 |
Taxes (Details)
Taxes (Details) | 1 Months Ended | 12 Months Ended | ||||||
Oct. 31, 2015 | Dec. 31, 2021CNY (¥)¥ / shares | Dec. 31, 2021USD ($)$ / shares | Dec. 31, 2020CNY (¥)¥ / shares | Dec. 31, 2020$ / shares | Dec. 31, 2019CNY (¥)¥ / shares | Dec. 31, 2021USD ($) | ||
Taxes (Details) [Line Items] | ||||||||
Statutory income tax rate | 25.00% | 25.00% | 25.00% | 25.00% | ||||
Enterprise income tax rate | [1] | (7.00%) | (7.00%) | (35.90%) | ||||
Taxes, description | Shenzhen Yiruan, Shenzhen Yiyun, Shenzhen Yidian and Shenzhen Duodian are qualified as software companies by local taxing authority, and obtained two years of tax exempt status and three years at reduced income tax rate of 12.5%. After the initial 5 years, the Company can apply for the reduced rate in a yearly basis. In addition, 75% of R&D expenses of Shenzhen Kuxuanyou and Shenzhen Yiruan are subject to additional deduction from pre-tax income. | Shenzhen Yiruan, Shenzhen Yiyun, Shenzhen Yidian and Shenzhen Duodian are qualified as software companies by local taxing authority, and obtained two years of tax exempt status and three years at reduced income tax rate of 12.5%. After the initial 5 years, the Company can apply for the reduced rate in a yearly basis. In addition, 75% of R&D expenses of Shenzhen Kuxuanyou and Shenzhen Yiruan are subject to additional deduction from pre-tax income. | ||||||
Tax exemption, description | Korgas Shengyou, Korgas WiMi, Korgas Duodian, Korgas 233 and Korgas Weidong were formed and registered in Korgas in Xinjiang Provence, China from 2016 to 2020, and Kashi Duodian was formed and registered in Kashi in Xinjiang Provence, 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. | Korgas Shengyou, Korgas WiMi, Korgas Duodian, Korgas 233 and Korgas Weidong were formed and registered in Korgas in Xinjiang Provence, China from 2016 to 2020, and Kashi Duodian was formed and registered in Kashi in Xinjiang Provence, 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. | ||||||
Basic | (per share) | ¥ (1.41) | $ (0.22) | ¥ (1.17) | ¥ 1.02 | ||||
Diluted | (per share) | ¥ (1.41) | $ (0.22) | ¥ (1.17) | ¥ 0.94 | ||||
Net operating loss carry forwards | ¥ 44,347,998 | $ 6,955,785 | ||||||
VAT Percentage | 6.00% | 6.00% | ||||||
Enterprise Income Tax [Member] | ||||||||
Taxes (Details) [Line Items] | ||||||||
Enterprise income tax rate | 25.00% | 25.00% | ||||||
High and New Technology Enterprises [Member] | ||||||||
Taxes (Details) [Line Items] | ||||||||
Enterprise income tax rate | 15.00% | 15.00% | ||||||
Taxes, description | subject to a requirement that they re-apply for HNTE status every three years. Shenzhen KXY obtained the “high-tech enterprise” tax status in October 2015, which reduced its statutory income tax rate to 15% from November 2016 to November 2019. Shenzhen Kuxuanyou renewed the HNTE tax status in December 2020, and the status will expire in December 2023. | |||||||
Hong Kong [Member] | ||||||||
Taxes (Details) [Line Items] | ||||||||
Statutory income tax rate | 16.50% | 16.50% | ||||||
Singapore [Member] | ||||||||
Taxes (Details) [Line Items] | ||||||||
Statutory income tax rate | 17.00% | 17.00% | ||||||
Exemption from taxable income, description | 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. | 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. | ||||||
GST rate | 7.00% | 7.00% | ||||||
Guangdong Provence [Member] | ||||||||
Taxes (Details) [Line Items] | ||||||||
Income tax reduced rate | 15.00% | 15.00% | ||||||
Hainan Provence [Member] | ||||||||
Taxes (Details) [Line Items] | ||||||||
Income tax reduced rate | 15.00% | 15.00% | ||||||
PRC [Member] | ||||||||
Taxes (Details) [Line Items] | ||||||||
Income tax saving amount | ¥ 18,153,904 | $ 2,847,358 | ¥ 14,543,996 | ¥ 23,679,290 | ||||
Basic | (per share) | ¥ 0.14 | $ 0.02 | ¥ 0.11 | $ 0.02 | ¥ 0.24 | |||
Diluted | (per share) | ¥ 0.14 | $ 0.02 | ¥ 0.11 | $ 0.02 | ¥ 0.22 | |||
China [Member] | ||||||||
Taxes (Details) [Line Items] | ||||||||
VAT Percentage | 13.00% | 13.00% | ||||||
[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 c
Taxes (Details) - Schedule of components of the benefit of (provision for) income taxes | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Schedule of components of the benefit of (provision for) income taxes [Abstract] | ||||
Current | ¥ (2,189,629) | $ (343,434) | ¥ (4,487,629) | ¥ (4,644,300) |
Deferred | 3,024,851 | 474,434 | 1,582,948 | 1,515,220 |
(Provision for) benefit of income taxes | ¥ 835,222 | $ 131,000 | ¥ (2,904,681) | ¥ (3,129,080) |
Taxes (Details) - Schedule of e
Taxes (Details) - Schedule of effective income tax rate reconciliation | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Schedule of effective income tax rate reconciliation [Abstract] | ||||
China statutory income tax rate | 25.00% | 25.00% | 25.00% | |
Preferential tax rate in China | (14.00%) | 8.30% | (22.50%) | |
Tax rate difference outside China | [1] | (7.00%) | (35.90%) | |
Change in valuation allowance | 4.70% | (0.40%) | 0.40% | |
Additional R&D deduction in China | (8.50%) | 2.00% | (0.50%) | |
Permanent difference | 0.10% | (1.00%) | 0.60% | |
Effective tax rate | 0.30% | (2.00%) | 3.00% | |
[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 | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | |
Deferred tax assets: | ||||
Allowance for doubtful accounts | ¥ 142,316 | $ 22,322 | ¥ 160,287 | |
Impairment loss from inventories | 1,014,527 | $ 159,124 | ||
Net operating loss carryforwards | 11,086,999 | 1,738,946 | 2,080,433 | |
Less: valuation allowance | (12,101,526) | (1,898,070) | (2,080,433) | |
Deferred tax assets, net | 142,316 | 22,322 | 160,287 | |
Deferred tax liabilities: | ||||
Recognition of intangible assets arising from business combinations | 5,396,459 | 846,411 | 6,144,892 | |
Total deferred tax liabilities, net | ¥ 5,254,143 | $ 824,089 | ¥ 5,984,605 |
Taxes (Details) - Schedule of t
Taxes (Details) - Schedule of taxes payable | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Schedule of taxes payable [Abstract] | |||
VAT taxes payable | ¥ 168,384 | $ 26,410 | ¥ 1,555,978 |
Income taxes payable | 6,217,156 | 975,134 | 9,704,988 |
Other taxes payable | 39,206 | 6,149 | 254,658 |
Totals | ¥ 6,424,746 | $ 1,007,693 | ¥ 11,515,624 |
Concentration of Risk (Details)
Concentration of Risk (Details) | 12 Months Ended | ||
Dec. 31, 2021HKD ($) | Dec. 31, 2020 | Dec. 31, 2019 | |
Concentration of Risk (Details) [Line Items] | |||
Insurance coverage of credit risk (in Dollars) | $ 500,000 | ||
Description of credit risk | cash balance of RMB 278,803,307 (USD 43,729,051) was deposited with financial institutions located in China, of which RMB 260,939,899 (USD 40,927,255) 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, 2021, cash balance of HKD 573,226,984, approximately RMB 468,670,382 (USD 73,508,851) was maintained at financial institutions in Hong Kong, of which HKD 568,115,902 approximately RMB 464,491,561 (USD 72,853,422) 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, 2021, cash balance of SGD 816,155 approximately RMB 4,024,785 (USD 631,270) was maintained at DI Scheme banks in Singapore, of which SGD 666,155 approximately RMB 3,285,075 (USD 515,249) was subject to credit risk. In the US, the insurance coverage of each bank is USD 250,000. As of December 31, 2021, cash balance of USD 133,111 (RMB 848,673) 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, 2021, a total of RMB 33,131,501 (USD 5,196,528) short term investments deposited with a securities company located in Hong Kong was subject to credit risk. | ||
Number of customers | 3 | 3 | |
Number of vendor | 1 | 3 | 1 |
Total Revenues [Member] | |||
Concentration of Risk (Details) [Line Items] | |||
Number of customers | 1 | ||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | |||
Concentration of Risk (Details) [Line Items] | |||
Concentration risk percentage | 10.00% | 10.00% | |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | One Customers [Member] | |||
Concentration of Risk (Details) [Line Items] | |||
Concentration risk percentage | 32.40% | 19.10% | |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Two Customers [Member] | |||
Concentration of Risk (Details) [Line Items] | |||
Concentration risk percentage | 15.10% | 14.00% | |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Three Customers [Member] | |||
Concentration of Risk (Details) [Line Items] | |||
Concentration risk percentage | 14.10% | 12.20% | |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | One Vendor [Member] | |||
Concentration of Risk (Details) [Line Items] | |||
Concentration risk percentage | 13.70% | 15.60% | 26.60% |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Two Vendor [Member] | |||
Concentration of Risk (Details) [Line Items] | |||
Concentration risk percentage | 12.40% | ||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Three Vendor [Member] | |||
Concentration of Risk (Details) [Line Items] | |||
Concentration risk percentage | 10.70% | ||
Total Revenues [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | One Customers [Member] | |||
Concentration of Risk (Details) [Line Items] | |||
Concentration risk percentage | 13.60% | ||
Accounts Payable [Member] | |||
Concentration of Risk (Details) [Line Items] | |||
Number of vendor | 4 | 4 | |
Accounts Payable [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | One Vendor [Member] | |||
Concentration of Risk (Details) [Line Items] | |||
Concentration risk percentage | 24.60% | 25.90% | |
Accounts Payable [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Two Vendor [Member] | |||
Concentration of Risk (Details) [Line Items] | |||
Concentration risk percentage | 12.60% | 18.60% | |
Accounts Payable [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Three Vendor [Member] | |||
Concentration of Risk (Details) [Line Items] | |||
Concentration risk percentage | 12.20% | 13.90% | |
Accounts Payable [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Four vendor [Member] | |||
Concentration of Risk (Details) [Line Items] | |||
Concentration risk percentage | 10.70% | 11.00% |
Leases (Details)
Leases (Details) | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Lease [Abstract] | ||||
Right of use assets | ¥ 1,800,000 | |||
Weighted average discount rate | 7.00% | |||
Weighted average remaining lease terms | 1 year 6 months | |||
Rent expense | ¥ 4,672,111 | $ 732,800 | ¥ 3,770,003 | ¥ 3,707,039 |
Operating leases commitment | ¥ 552,223 | $ 86,613 |
Leases (Details) - Schedule of
Leases (Details) - Schedule of maturity lease obligations - Dec. 31, 2021 | CNY (¥) | USD ($) |
Schedule of maturity lease obligations [Abstract] | ||
2022 | ¥ 2,270,181 | $ 356,068 |
2023 | 941,699 | 147,701 |
2024 | 71,287 | 11,181 |
2025 | 71,287 | 11,181 |
2026 | 35,644 | 5,591 |
Total lease payments | 3,390,098 | 531,722 |
Less: Interest | (157,086) | (24,638) |
Present value of lease liabilities | ¥ 3,233,012 | $ 507,084 |
Shareholders' equity (Details)
Shareholders' equity (Details) | Oct. 15, 2020shares | Sep. 12, 2020USD ($)$ / sharesshares | Jun. 06, 2020USD ($)$ / shares | Mar. 24, 2021CNY (¥)shares | Mar. 24, 2021USD ($)$ / sharesshares | Jan. 26, 2021CNY (¥)shares | Jan. 26, 2021USD ($)$ / sharesshares | Jul. 27, 2020CNY (¥)shares | Jul. 27, 2020USD ($)$ / sharesshares | Mar. 31, 2020CNY (¥)shares | Mar. 31, 2020USD ($)$ / sharesshares | Nov. 22, 2018USD ($)shares | Aug. 16, 2018$ / sharesshares | Dec. 31, 2018shares | Dec. 31, 2021CNY (¥)shares | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2019USD ($) |
Shareholders' equity (Details) [Line Items] | ||||||||||||||||||
Net proceeds | ¥ 508,100,000 | $ 79,700,000 | ||||||||||||||||
Other expenses | 38,900,000 | $ 6,000,000 | ¥ 29,559,735 | $ 4,530,297 | ¥ 18,618,078 | $ 2,853,389 | ||||||||||||
Exercise price (in Dollars per share) | $ / shares | $ 8.6 | |||||||||||||||||
Proceed allocated to fair value of warrants | ¥ 108,500,000 | $ 16 | ||||||||||||||||
Warrants | ¥ 108,500,000 | $ 16 | ||||||||||||||||
Vested date | Mar. 31, 2021 | Mar. 31, 2021 | ||||||||||||||||
Compensation expense | 319,833 | $ 49,575 | ¥ 189,064,940 | |||||||||||||||
Number of shares (in Shares) | 180,000 | 180,000 | ||||||||||||||||
Description of vesting period | The remaining 45,000 shares granted to consultants are vesting in three equal annual instalments, with the first instalment vesting on October 15, 2021, the second vesting on October 15, 2022 and the third vesting on October 15, 2023. | 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 (in Shares) | 435,000 | |||||||||||||||||
Amortization expense | ¥ 13,800,000 | $ 2,100,000 | ||||||||||||||||
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 | ¥ 556,487,571 | $ 87,282,584 | ||||||||||||||||
Statutory reserves | 28,573,157 | $ 4,481,572 | ¥ 24,003,483 | |||||||||||||||
Warrants [Member] | ||||||||||||||||||
Shareholders' equity (Details) [Line Items] | ||||||||||||||||||
Warrants outstanding (in Shares) | 4,469,334 | |||||||||||||||||
Weighted average live | 1 year 3 months | |||||||||||||||||
Class A Ordinary Share [Member] | ||||||||||||||||||
Shareholders' equity (Details) [Line Items] | ||||||||||||||||||
Number of shares issued (in Shares) | 20,115,570 | 20,115,570 | ||||||||||||||||
Par value (in Dollars per share) | $ / shares | $ 0.0001 | |||||||||||||||||
Class B Ordinary Shares [Member] | ||||||||||||||||||
Shareholders' equity (Details) [Line Items] | ||||||||||||||||||
Number of shares issued (in Shares) | 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. | |||||||||||||||||
Net proceeds | ¥ 401,339,721 | $ 57,310,503 | ¥ 171,472,748 | $ 24,201,881 | ||||||||||||||
Converted shares (in Shares) | 8,611,133 | |||||||||||||||||
Series A Preferred Shares [Member] | ||||||||||||||||||
Shareholders' equity (Details) [Line Items] | ||||||||||||||||||
Number of shares issued (in Shares) | 12,916,700 | |||||||||||||||||
Par value (in Dollars per share) | $ / shares | $ 0.0001 | |||||||||||||||||
ADS [Member] | ||||||||||||||||||
Shareholders' equity (Details) [Line Items] | ||||||||||||||||||
Per share price (in Dollars per share) | $ / shares | $ 5.5 | |||||||||||||||||
ADS [Member] | IPO [Member] | ||||||||||||||||||
Shareholders' equity (Details) [Line Items] | ||||||||||||||||||
Number of shares issued (in Shares) | 4,750,000 | 4,750,000 | ||||||||||||||||
ADS [Member] | Over-Allotment Option [Member] | ||||||||||||||||||
Shareholders' equity (Details) [Line Items] | ||||||||||||||||||
Number of shares issued (in Shares) | 169,140 | 169,140 | ||||||||||||||||
ADS [Member] | Second Public Offering [Member] | ||||||||||||||||||
Shareholders' equity (Details) [Line Items] | ||||||||||||||||||
Number of shares issued (in Shares) | 7,560,000 | 7,560,000 | ||||||||||||||||
Per share price (in Dollars per share) | $ / shares | $ 8.18 | |||||||||||||||||
ADS [Member] | Third Public Offering [Member] | ||||||||||||||||||
Shareholders' equity (Details) [Line Items] | ||||||||||||||||||
Number of shares issued (in Shares) | 11,173,335 | 11,173,335 | ||||||||||||||||
Per share price (in Dollars per share) | $ / shares | $ 7.5 | |||||||||||||||||
ADS [Member] | Warrants [Member] | ||||||||||||||||||
Shareholders' equity (Details) [Line Items] | ||||||||||||||||||
Exercise price (in Dollars per share) | $ / shares | $ 8.6 | |||||||||||||||||
Warrants outstanding (in Shares) | 11,173,335 | |||||||||||||||||
Series A Convertible Preferred Stock [Member] | ||||||||||||||||||
Shareholders' equity (Details) [Line Items] | ||||||||||||||||||
Purchased shares (in Shares) | 8,611,133 | |||||||||||||||||
Total proceed amount | $ | $ 20,000,000 | |||||||||||||||||
Board of Directors [Member] | ||||||||||||||||||
Shareholders' equity (Details) [Line Items] | ||||||||||||||||||
Compensation expense | ¥ 10,262,724 | $ 1,590,750 | ¥ 2,353,518 | |||||||||||||||
Board of Directors [Member] | Class B Ordinary Shares [Member] | ||||||||||||||||||
Shareholders' equity (Details) [Line Items] | ||||||||||||||||||
Per share price (in Dollars per share) | $ / shares | $ 3.31 | $ 1.73 | $ 5.05 | |||||||||||||||
Shares issued | $ | $ 148,240 | $ 15,890,000 | $ 720,000 | |||||||||||||||
Fair value | $ 490,674 | 27,489,700 | ¥ 25,100,000 | $ 3,600,000 | ||||||||||||||
Consultants [Member] | ||||||||||||||||||
Shareholders' equity (Details) [Line Items] | ||||||||||||||||||
Number of shares (in Shares) | 45,000 | |||||||||||||||||
2020 Equity Incentive Plan [Member] | ||||||||||||||||||
Shareholders' equity (Details) [Line Items] | ||||||||||||||||||
Shares issued | $ | $ 17,500,000 | |||||||||||||||||
Vested date | Oct. 15, 2020 | Oct. 1, 2020 | ||||||||||||||||
2020 Equity Incentive Plan [Member] | Class B Ordinary Shares [Member] | ||||||||||||||||||
Shareholders' equity (Details) [Line Items] | ||||||||||||||||||
Number of shares (in Shares) | 16,038,240 | 16,038,240 | ||||||||||||||||
2020 Equity Incentive Plan [Member] | Consultants [Member] | ||||||||||||||||||
Shareholders' equity (Details) [Line Items] | ||||||||||||||||||
Number of shares (in Shares) | 103,240 | |||||||||||||||||
Restricted stock [Member] | ||||||||||||||||||
Shareholders' equity (Details) [Line Items] | ||||||||||||||||||
Compensation expense | ¥ 10,582,557 | $ 1,659,827 | ¥ 191,418,458 |
Shareholders' equity (Details)
Shareholders' equity (Details) - Schedule of common stock based on the relative fair value of net proceeds | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of common stock based on the relative fair value of net proceeds [Abstract] | |
Annual dividend yield | |
Expected life (years) | 2 years |
Risk-free interest rate | 0.92% |
Expected volatility | 180.03% |
Shareholders' equity (Details_2
Shareholders' equity (Details) - Schedule of warrants outstanding and exercisable - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of warrants outstanding and exercisable [Abstract] | |||
Warrants, Warrants outstanding | 4,469,334 | ||
Weighted Average Exercise Price, Warrants outstanding | $ 8.6 | ||
Warrants, Issued | 4,469,334 | ||
Weighted Average Exercise Price, Issued | $ 8.6 | ||
Warrants, Exercised | |||
Weighted Average Exercise Price, Exercised | |||
Warrants, Expired | |||
Weighted Average Exercise Price, Expired | |||
Warrants, Warrants exercisable | 4,469,334 | ||
Weighted Average Exercise Price, Warrants exercisable | $ 8.6 |
Commitments and contingencies (
Commitments and contingencies (Details) | 1 Months Ended | 12 Months Ended | |||||
Aug. 31, 2021CNY (¥) | Aug. 31, 2021USD ($) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2021USD ($) | Sep. 02, 2021CNY (¥) | Sep. 02, 2021USD ($) | |
Commitments and contingencies (Details) [Line Items] | |||||||
Contract and seeking damages | ¥ 364,000 | $ 57,000 | |||||
Applicable fees | $ | $ 49,000 | ||||||
Loss possibility related to damages, percentage | 50.00% | 50.00% | |||||
Shenzhen Yiyun [Member] | |||||||
Commitments and contingencies (Details) [Line Items] | |||||||
Applicable fees | ¥ | ¥ 313,000 | ||||||
Granted amount | ¥ 442,560 | $ 69,414 | |||||
Shenzhen Kuxuanyou [Member] | |||||||
Commitments and contingencies (Details) [Line Items] | |||||||
Contract and seeking damages | ¥ 673,537 | $ 105,641 | |||||
Penalty | ¥ 322,939 | $ 50,652 |
Segments (Details) - Schedule o
Segments (Details) - Schedule of information by segment | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Segment Reporting Information [Line Items] | ||||
Revenues | ¥ 933,791,519 | $ 146,461,019 | ¥ 766,013,586 | ¥ 319,181,424 |
Cost of revenues | 684,223,832 | 107,317,445 | 596,578,700 | 146,167,843 |
Gross profit | 249,567,687 | 39,143,574 | 169,434,886 | 173,013,581 |
Depreciation and amortization | 18,525,363 | 2,905,620 | 14,551,292 | 13,883,919 |
Total capital expenditures | 25,165,482 | $ 3,947,093 | 484,774 | 195,998 |
AR advertising services[Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 435,917,971 | 307,328,308 | 267,514,061 | |
Cost of revenues | 254,217,297 | 211,297,881 | 140,716,036 | |
Gross profit | 181,700,674 | 96,030,427 | 126,798,025 | |
Depreciation and amortization | 5,936,500 | 9,505,919 | 9,455,226 | |
Total capital expenditures | 23,782,060 | 94,964 | 161,505 | |
AR entertainment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 14,056,868 | 29,740,544 | 51,667,363 | |
Cost of revenues | 4,385,783 | 3,137,805 | 5,451,807 | |
Gross profit | 9,671,085 | 26,602,739 | 46,215,556 | |
Depreciation and amortization | 5,385,869 | 3,155,190 | 4,428,693 | |
Total capital expenditures | 17,120 | 20,897 | ¥ 34,493 | |
Semiconductor business [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 483,816,680 | 428,944,734 | ||
Cost of revenues | 425,620,752 | 382,143,014 | ||
Gross profit | 58,195,928 | 46,801,720 | ||
Depreciation and amortization | 7,202,994 | 1,890,183 | ||
Total capital expenditures | ¥ 1,366,302 | ¥ 368,913 |
Segments (Details) - Schedule_2
Segments (Details) - Schedule of total assets | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total Assets | ¥ 1,505,028,697 | $ 236,057,011 | ¥ 1,172,421,685 |
AR advertising services [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total Assets | 1,306,152,502 | 204,864,171 | 532,715,074 |
AR entertainment [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total Assets | 12,487,702 | 1,958,639 | 165,442,969 |
Semiconductor business [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total Assets | ¥ 186,388,493 | $ 29,234,201 | ¥ 474,263,642 |
Segments (Details) - Schedule_3
Segments (Details) - Schedule of information of revenues by geographic locations | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenues | ¥ 933,791,519 | $ 146,461,019 | ¥ 766,013,586 | ¥ 319,181,424 |
Mainland PRC revenues [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenues | 593,803,869 | 93,135,478 | 367,163,638 | 303,062,432 |
Hong Kong revenues [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenues | 118,590,946 | 18,600,459 | 264,404,450 | 295,037 |
International revenues [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenues | ¥ 221,396,704 | $ 34,725,082 | ¥ 134,445,498 | ¥ 15,823,955 |
Subsequent Events (Details)
Subsequent Events (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Ownership percentage | 100.00% |
Condensed financial informati_3
Condensed financial information of the parent company (Details) - Schedule of parent company balance sheets | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
CURRENT ASSETS | |||
Cash in bank | ¥ 751,904,587 | $ 117,932,868 | ¥ 355,020,149 |
Short term investment | 33,540,301 | 5,260,646 | 32,878,252 |
Prepaid expenses | 29,063,036 | 4,558,407 | 31,710,307 |
Other receivables-intercompany | 40,972 | 6,426 | |
Total current assets | 907,819,648 | 142,387,447 | 616,425,842 |
OTHER ASSETS | |||
Other receivable – related parties | 5,738,130 | 900,000 | |
Investment in subsidiaries | 1,716,849 | 269,280 | |
Total assets | 1,505,028,697 | 236,057,011 | 1,172,421,685 |
OTHER LIABILITIES | |||
Total liabilities | 165,564,432 | 25,968,038 | 163,369,762 |
COMMITMENTS AND CONTINGENCIES | |||
SHAREHOLDERS’ EQUITY | |||
ordinary shares | 13,095 | 2,054 | 13,095 |
Additional paid-in capital | 1,454,680,407 | 228,160,109 | 932,368,293 |
Retained earnings (accumulated deficit) | (164,334,928) | (25,775,198) | 76,207,925 |
Accumulated other comprehensive loss | (54,970,351) | (8,621,853) | (35,434,146) |
Total shareholders’ equity | 1,264,063,507 | 198,262,702 | 997,246,189 |
Total liabilities and shareholders’ equity | 1,505,028,697 | 236,057,011 | 1,172,421,685 |
Parent Company [Member] | |||
CURRENT ASSETS | |||
Cash in bank | 402,451,863 | 63,122,773 | 41,981,726 |
Restricted cash | 13,088,949 | ||
Short term investment | 33,540,301 | 5,260,646 | 32,878,252 |
Prepaid expenses | 1,589,372 | ||
Other receivables-intercompany | 522,047,391 | 81,880,796 | 345,178,017 |
Total current assets | 958,039,555 | 150,264,215 | 434,716,316 |
OTHER ASSETS | |||
Investment in subsidiaries | 300,285,822 | 47,098,487 | 571,354,800 |
Total assets | 1,264,063,507 | 198,262,702 | 1,006,071,116 |
CURRENT LIABILITIES | |||
Shareholder loan | 1,631,225 | ||
Other payables – intercompany | 6,524,900 | ||
Total current payables | 8,156,125 | ||
OTHER LIABILITIES | |||
Non-current shareholder loan | 668,802 | ||
Total liabilities | 8,824,927 | ||
SHAREHOLDERS’ EQUITY | |||
Additional paid-in capital | 1,454,680,407 | 228,160,109 | 932,368,293 |
Retained earnings (accumulated deficit) | (164,334,928) | (25,775,198) | 76,207,925 |
Statutory reserves | 28,573,157 | 4,481,572 | 24,003,483 |
Accumulated other comprehensive loss | (54,970,351) | (8,621,853) | (35,434,146) |
Total shareholders’ equity | 1,264,063,507 | 198,262,702 | 997,246,189 |
Total liabilities and shareholders’ equity | 1,264,063,507 | 198,262,702 | 1,006,071,116 |
Common Class A [Member] | Parent Company [Member] | |||
SHAREHOLDERS’ EQUITY | |||
ordinary shares | 13,095 | 2,054 | 13,095 |
Common Class B [Member] | Parent Company [Member] | |||
SHAREHOLDERS’ EQUITY | |||
ordinary shares | ¥ 102,127 | $ 16,018 | ¥ 87,539 |
Condensed financial informati_4
Condensed financial information of the parent company (Details) - Schedule of parent company balance sheets (Parentheticals) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
Common Class A [Member] | ||
Condensed financial information of the parent company (Details) - Schedule of parent company balance sheets (Parentheticals) [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 |
Common Class A [Member] | Parent Company [Member] | ||
Condensed financial information of the parent company (Details) - Schedule of parent company balance sheets (Parentheticals) [Line Items] | ||
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 |
Common Class B [Member] | ||
Condensed financial information of the parent company (Details) - Schedule of parent company balance sheets (Parentheticals) [Line Items] | ||
Ordinary shares, par value (in Dollars per share and Yuan Renminbi per share) | $ 0.0001 | $ 0.0001 |
Ordinary shares authorized | 466,967,730 | 466,967,730 |
Ordinary shares issued | 153,300,513 | 130,953,843 |
Ordinary shares outstanding | 153,300,513 | 130,953,843 |
Common Class B [Member] | Parent Company [Member] | ||
Condensed financial information of the parent company (Details) - Schedule of parent company balance sheets (Parentheticals) [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 | 153,300,513 | 153,300,513 |
Ordinary shares outstanding | 153,300,513 | 153,300,513 |
Condensed financial informati_5
Condensed financial information of the parent company (Details) - Schedule of parent company statements of income - Parent Company [Member] | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
OPERATING EXPENSES | ||||
General and administrative | ¥ (10,704,897) | $ (1,679,015) | ¥ (8,400,720) | ¥ (7,972,189) |
Research and development | (27,394,359) | (4,296,683) | 43,402,651 | |
Stock compensation | (10,582,557) | (1,659,827) | (191,418,458) | |
Total operating expenses | (48,681,813) | (7,653,525) | (243,221,829) | (7,972,189) |
LOSS FROM OPERATIONS | (48,681,813) | (7,653,525) | (243,221,829) | (7,972,189) |
OTHER INCOME (EXPENSE) | ||||
Investment income | 2,491,671 | 390,807 | 12,284,332 | |
Interest income | 2,408 | 378 | 37,679 | 1,025,954 |
Finance expense | (21,282) | (3,338) | (32,259) | (5,456) |
Other expenses, net | 503,806 | 79,020 | (147) | |
Equity income (loss) of subsidiaries | (190,267,969) | (29,842,682) | 79,764,356 | 109,156,163 |
Total other income (loss), net | (187,291,366) | (29,375,815) | 92,053,961 | 110,176,661 |
NET INCOME (LOSS) | (235,973,179) | (37,011,340) | (151,167,868) | 102,204,472 |
FOREIGN CURRENCY TRANSLATION ADJUSTMENT | (19,536,206) | (3,064,166) | (38,531,887) | 1,589,076 |
COMPREHENSIVE INCOME (LOSS) | ¥ (255,509,385) | $ (40,075,506) | ¥ (189,699,755) | ¥ 103,793,548 |
Condensed financial informati_6
Condensed financial information of the parent company (Details) - Schedule of parent company cash flows - Parent Company [Member] | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||
Net income (loss) | ¥ (235,973,179) | $ (37,011,340) | ¥ (151,167,868) | ¥ 102,204,472 |
Stock compensation expense | 10,582,557 | 1,659,827 | 191,418,458 | |
Gain from short term investment | (2,491,671) | (390,807) | (12,284,332) | |
Equity (income) loss of subsidiaries and VIEs | 190,267,969 | 29,842,682 | (79,764,356) | (109,156,163) |
Intercompany | (199,216,770) | (31,246,258) | (295,669,805) | 62,298,143 |
Prepaid expenses | 1,571,484 | 246,480 | (1,680,156) | |
Net cash used in operating activities | (235,259,610) | (36,899,416) | (349,148,059) | (69,249,834) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||
Purchases of short term investments | (98,023,653) | (15,374,571) | (173,557,366) | |
Redemptions of short term investments | 99,084,663 | 15,540,986 | 151,096,293 | |
Long term investment in subsidiaries | 870,953 | 136,605 | (202,168,656) | |
Net cash (used in) provided by investing activities | 1,931,963 | 303,020 | (224,629,729) | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||
Proceeds from issuance of Series A convertible preferred shares | ||||
Proceeds from public offerings, net | 508,132,968 | 79,698,381 | 572,812,469 | |
Repayment to related party loans | (2,274,154) | (356,691) | ||
Sale of subsidiary’s noncontrolling interest | 87,369,300 | 13,703,484 | ||
Net cash provided by financing activities | 593,228,114 | 93,045,174 | 572,812,469 | |
EFFECT OF EXCHANGE RATE ON CASH | (12,519,279) | (1,963,594) | (14,014,753) | 1,448,063 |
CHANGES IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 347,381,188 | 54,485,184 | (14,980,072) | (67,801,772) |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of year | 55,070,675 | 8,637,589 | 70,050,747 | 137,852,519 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of year | 402,451,863 | 63,122,773 | 55,070,675 | 70,050,747 |
Cash and cash equivalents | 402,451,863 | 63,122,773 | 41,981,726 | 70,050,747 |
Restricted cash | 13,088,949 | |||
Total cash, cash equivalents and restricted cash shown in the parent company statements of cash flows | ¥ 402,451,863 | $ 63,122,773 | ¥ 55,070,675 | ¥ 70,050,747 |