TLDR
- HOLO stock jumped 40.77% to $1.0650 per share
- Company reported 42.16% increase in 2024 revenue, reaching approximately $40.76 million
- Cash and cash equivalents grew by 575.54% year-over-year to about $118.45 million
- Service business revenue increased by 53.04% to RMB 277 million
- Company announced plans to invest up to $200 million in Bitcoin and related securities
MicroCloud Hologram Inc. (NASDAQ: HOLO) saw its stock price surge more than 40% today as investors reacted to the company’s strong financial performance for fiscal year 2024.
The Shenzhen-based holographic technology company reported that its shares reached $1.0650, representing a gain of $0.3095 or 40.77% from the previous close.
Trading volume was exceptionally high at over 111 million shares, compared to the average daily volume of about 35 million shares.
The stock traded in a wide range throughout the day, moving between $0.6726 and $1.2100.
Despite the impressive daily gain, HOLO shares are still trading well below their 52-week high of $100.
The surge follows the release of MicroCloud’s fiscal year 2024 results, which revealed total operating revenue of RMB 290 million (approximately $40.76 million).
This represents a 42.16% increase compared to the previous year.
The company’s service business showed particularly strong growth, with revenue rising by 53.04% from RMB 181 million in 2023 to RMB 277 million in 2024.
MicroCloud also reported a dramatic improvement in its cash position, with cash and cash equivalents increasing by 575.54% year-over-year to RMB 851.47 million (approximately $118.45 million).
The company currently maintains a healthy current ratio of 13.53, holding more cash than debt.
Wei Peng, Chairman of the Board of Directors, attributed the successful year to several strategic priorities including financial resilience, market expansion, and commitment to technological innovation.
Peng highlighted the importance of aligning with market demands and praised the team’s dedication to innovation as key factors in driving the year’s achievements.
MicroCloud has outlined plans to continue investing in research and development of holographic technologies and enhancing its product and service quality.
The company aims to expand globally and further integrate cutting-edge solutions to maintain its competitive advantage in the market.
Holographic Industry
MicroCloud offers various services in the holographic industry, including holographic light detection and ranging (LiDAR) solutions, holographic imaging technology, and holographic vehicle intelligent vision technology.
These technologies contribute to advanced driver assistance systems (ADAS) in vehicles.
The company also provides holographic digital twin technology services and maintains a proprietary technology resource library.
In recent developments, MicroCloud has unveiled a new quantum key distribution protocol aimed at enhancing quantum transmission security and information efficiency.
This protocol uses quantum Fourier transform techniques and represents an advancement in quantum computing and cryptography.
The company has also announced a strategic move into cryptocurrency, planning to invest up to $200 million in Bitcoin and related securities derivatives.
This investment will leverage MicroCloud’s substantial cash reserves of $303 million to diversify its portfolio.
MicroCloud Hologram has reported accumulated dividends reaching $8.13 million, showing its commitment to delivering shareholder value.
The company has also developed a new balancing mechanism for scaling large language models in open-source configurations, which improves computational resource efficiency.
MicroCloud’s full annual report on Form 20-F, including audited consolidated financial statements, is available on the U.S. Securities and Exchange Commission’s website.
The company’s current market capitalization stands at approximately $21.96 million, suggesting the stock may be trading below its fair value based on recent financial performance and cash position.
