Except where the context otherwise indicates and for the purpose of this annual report only:
| ● | “ADSs” refer to the American depositary shares, each representing two Class B ordinary shares; |
| ● | “AR” refers to augmented reality, a technology that enhances the real world through the use of sensory information (visual, audio, or otherwise), which is added to the actual view of the real world; |
| ● | “China” or “PRC” refers to the People’s Republic of China; |
| ● | “CPM” refers to cost per thousand impressions, a term used in traditional online advertising and marketing related to web traffic that measures the cost or expense incurred for every thousand potential customers who view the advertisement; |
| ● | “GAAP” refers to the generally accepted accounting principles in the United States; |
| ● | “HK$”, “HKD” or “Hong Kong dollars” refer to the legal currency of the Hong Kong SAR; |
| ● | “ordinary shares” refer to ordinary shares consisted of our Class A ordinary shares, par value US$0.002 per share, and Class B ordinary shares, par value US$0.002 per share; |
| ● | “RMB” or “Renminbi” refers to the legal currency of the People’s Republic of China; |
| ● | “US$”, “dollars”, “USD” or “U.S. dollars” refer to the legal currency of the United States; |
| ● | “View” refers to the number of times an advertisement is fetched (each time an advertisement is fetched, it is counted as one impression or one view or one impression); and |
| ● | “Venus” refers to “Venus Acquisition Corporation”, which changed its name to MicroAlgo Inc. on December 12, 2022; |
| ● | “WIMI”, “WiMi Cayman”, “we”, “us”, “our company”, “the company”, “our”, or similar terms used in this annual report refer to WiMi Hologram Cloud Inc., a Cayman Islands exempted company, including its wholly-owned and majority-owned subsidiaries. and, in the context of describing our operations and consolidated financial information, including its VIE and its subsidiaries. |
Our reporting currency is the Renminbi. This annual report on Form 20-F also contains translations of certain foreign currency amounts into U.S. dollars for the convenience of the reader. Unless otherwise stated, all translations from Renminbi to U.S. dollars were made at the rate of USD 1.00 to RMB 7.0288, representing the mid-point reference rate set by People’s Bank of China on December 31, 2025, the last business day for the year ended December 31, 2025. We make no representation that the Renminbi or U.S. dollar amounts referred to in this annual report could have been or could be converted into U.S. dollars or Renminbi, as the case may be, at any particular rate or at all. The PRC government imposes control over its foreign currency reserves in part through direct regulation of the conversion of Renminbi into foreign exchange and through restrictions on foreign trade.
As of the close of business on April 2, 2025, New York time (the “ADR Termination Date”), the Company’s American Depositary Shares (ADSs) was automatically cancelled. In connection with this cancellation, each ADS holder was entitled to receive two (2) Class B ordinary shares of the Company per ADS held.
Effective from April 14, 2025, we conducted a 20-to-1 share consolidation, which consolidated twenty (20) shares with a par value of US$0.0001 each into one (1) share with a par value of US$0.002. Upon the effectiveness of such share consolidation, our authorized share capital became US$50,000 divided into 25,000,000 shares comprising (i) 1,250,000 Class A ordinary shares of a par value of US$0.002 each; (ii) 13,750,000 Class B ordinary shares of a par value of US$0.002 each; and (iii) 10,000,000 shares of a par value of US$0.002 each of such class or classes (however designated) as the board of directors may determine.
On March 25, 2025, the shareholders of the Company approved the Company’s share capital increase after the Share Consolidation, the authorized share capital of the Company was increased to US$1,500,000 divided into 750,000,000 shares comprising (i) 37,500,000 Class A ordinary shares of a par value of US$0.002 each; (ii) 412,500,000 Class B ordinary shares of a par value of US$0.002 each; and (iii) 300,000,000 shares with a par value of US$0.002 each of such class or classes (however designated) as the board of directors may determine.
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