WiMi Hologram Cloud, an augmented reality (‘AR’) service provider in China, has announced that its wholly-owned subsidiary, VIYI Technology, has entered into an agreement for the acquisition of 100 per cent equity interests of Singapore-based Fe-da Electronics Company to accelerate the development of the Company’s semiconductor chip business.
According to the financial statements provided by Fe-da Electronics, the revenues of Fe-da Electronics amounted to US$45,892,564 and US$70,770,218 for 2018 and 2019, respectively, both of which have exceeded the total revenues of WiMi in their respective periods.
Through integrating Fe-da Electronics, the Company seeks to further optimise its financial model so as to improve its business growth and market size and create more value for its investors.
The main businesses of Fe-da Electronics are the customisation of central processing units (‘CPU’) for computers and servers and the production of storage devices, including SSD and RAM storage devices.
After integrating Fe-da Electronics into VIYI Technology, the Company plans to both retain and strengthen Fe-da Electronics’ current team, fostering meaningful synergies in its development of central processing algorithm services.
The Company also plans to utilise Fe-da Electronics’ existing Artificial Intelligence (‘AI’) and cloud computing technologies to further unlock its potential in the development of cloud service solutions.
Through the Company’s integration of Fe-da Electronics’ semiconductor businesses, the Company will further strengthen its central processing algorithm services, launch an integrated hardware-software system for enterprise and industrial data centres, and help better facilitate the digital transformation process by providing the entire industry, especially small- and medium-sized enterprises, with integrated cloud computing products and services.
Furthermore, the Company will also leverage Fe-da Electronics’ resources to further establish its presence in Mainland China, Hong Kong, Taiwan, Southeast Asia, and other areas.
“Our acquisition of Fe-da Electronics marks a very important milestone in our journey to achieve our long-term goal of becoming a global leader in CPU AI algorithms. In addition, our integration with Fe-da Electronics will create significant synergies in the areas of technology, product development, and market coverage, helping us to seize those market opportunities in the field of central processing algorithm services and develop more unique competitive advantages,” said Shuo Shi, CEO of WiMi.
“Going forward, we plan to leverage these advantages to capture related market opportunities, move closer towards the fulfilment of our long-term goals in both AI algorithms and cloud computing services, and create more value for our shareholders over the long term,” added Shi.
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