Hong Kong – Recently, TickerWin, the leading market research firm, has released a research report “VIYI Algorithms Will Go Public Via SPAC and Venus at a Valuation of $400 Million “. SPAC (special purpose acquisition company) is an innovative listing financing mode different from traditional IPO and backdoor listing. It can be roughly understood as the establishment of “cash shell company with no assets and no business” to be listed and raised, and then use the raised funds to acquire unlisted companies and load assets.
In 2020, SPAC emerged as a new force in the US capital market. A total of 248 SPACS were listed (accounting for 52.7% of the TOTAL number of IPOS in the US in that year), raising 83.042 billion US dollars (accounting for 53.5% of the total amount of IPOS in the US in that year), surpassing the traditional IPO mode for the first time and becoming a milestone in the capital market.
VIYI Algo has announced that it will go public through a merger with SPAC Venus Acquisition Corporation. VIYI algorithms is valued at $400 million. Venus will be renamed MicroAlgo Inc. after the deal closes. The merger will be completed in the third quarter of 2021. It is reported that VIYI algorithm is one of the top five central processing algorithm services in China. By 2020, VIYI had captured 5 percent of the market for central processing algorithm services to the Internet advertising and online game acceleration industries, according to the CIC report.
VIYI is dedicated to the development and application of bespoke central processing algorithms. VIYI provides comprehensive solutions to customers by integrating central processing algorithms with software or hardware, or both, thereby helping them increase the number of customers, improve end-user satisfaction, achieve direct cost savings, reduce power consumption, and achieve technical goals. The range of VIYI’s services include algorithm optimization, accelerating computing power without the need for hardware upgrades, lightweight data processing, and data intelligence services. VIYI’s ability to efficiently deliver software and hardware optimization to customers through bespoke central processing algorithms serves as a driving force for VIYI’s long-term development.
Central processing algorithms refer to a range of computing algorithms, including analytical algorithms, recommendation algorithms, and acceleration algorithms. According to the CIC Report, businesses engaged in internet advertisement, game development, intelligent chip design, finance, retail, and logistics depend on the ability to efficiently process and analyze data with optimized computing software and hardware capable of handling the data workload. Bespoke central processing algorithms suitable to each customer’s distinct needs help them achieve this purpose.
Currently, VIYI is focused on developing and delivering central processing algorithm solutions to customers engaged in internet advertisement and gaming, and intelligent chips. Moreover, VIYI’s customer base is rapidly growing due to the increase in a general demand for more efficient data processing in various industries driven by the growing internet population and prevalence of AI. According to the CIC Report, revenue of central processing algorithm services derived from internet advertisement and online gaming alone has grown from RMB 2.2 billion in 2016 to RMB 6.9 billion in 2020, representing a CAGR of 32.7%. This market is expected to maintain a rapid growth trend, expanding at a CAGR of 15% during the period from 2020 to 2025 in terms of dollar value.
In the mid-to-long term, VIYI will continue to adhere to its strategic mindset. By improving upon each iteration of VIYI’s one-stop intelligent data management solutions made possible by its proprietary central processing algorithm services, VIYI can help customers to enhance their service efficiency and make model innovations in business, and actively enhance the industry value of the central processing algorithm services in the general field of data intelligent processing industry.
VIYI derives its revenue primarily from (i) central processing algorithms services for the internet advertisement and internet gaming industries and (ii) intelligent chips and services, including software development.
VIYI’s revenue from central processing algorithms for the year ended December 31, 2020 was RMB 307.8 million, which represents an increase of RMB 196.6 million, or 176.8%, from VIYI’s total revenues of RMB 111.2 million for the year ended December 31, 2019. VIYI’s gross profit for the year ended December 31, 2020 was RMB 125.2 million, representing an increase of RMB 61.1 million, or 95.3%, from RMB 64.1 million for the year ended December 31, 2019. VIYI’s net income for the year ended December 31, 2020 was RMB 91.5 million, representing an increase of RMB 48.1 million, or 110.7%, from RMB 43.4 million for the year ended December 31, 2019.
The operation mode and financing method of Chinese enterprises listing and financing in the United States through reverse merger and acquisition of SPAC is completely different from that of traditional IPO. SPAC’s listing and financing methods focus on the characteristics and purposes of financial products such as direct listing, overseas m&a, reverse takeover and private placement, and optimize the characteristics of each financial product to achieve the purpose of listing and financing of enterprises. After IPO, backdoor listing and APO, SPAC is a new way that is more suitable for domestic smes to go public in overseas financing, which is fast and has a relatively low threshold.
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