Why did holographic solutions revenue increase 726.2% while service revenue decreased 22.0% in H1 2025?

MicroCloud Hologram Inc. (NASDAQ: HOLO) reported a significant increase in its holographic solutions revenue and a decrease in its holographic technology service revenue for the first half of 2025.

Holographic solutions revenue for MicroCloud Hologram Inc. surged by 726.2%, increasing from RMB 7.6 million in H1 2024 to RMB 65.3 million (approximately USD 9.1 million) in H1 2025. This substantial growth was primarily attributed to an increased demand from customers for their holographic solutions.1

Conversely, the company's holographic technology service revenue experienced a 22.0% decrease, falling from RMB 121.1 million in H1 2024 to RMB 94.3 million (approximately USD 13.1 million) in H1 2025. The company indicated that this decline was mainly due to a sluggish market environment and a reduction in customer demand, impacting their ability to retain and attract customers.1