Month: August 2021

Hong Kong – Recently, TickerWin, the leading market research firm, has released a research report “VIYI Algorithm’s Scene Solutions: Internet Advertising, Games, Smart Chips, Will Be Listed Together with Venus”. 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.

Effective central processing algorithm solutions can empower downstream industries experiencing high demand for data analysis and computing power optimization, which applies to internet advertising, internet game applications, finance, retail, logistics, and other industries. Because of huge downstream demands, the overall market of central processing algorithm services is enormous.

According to the report,VIYI Algorithms, Inc. (“VIYI Algo”), a Cayman Islands exempted company operating in China, announced that it would go public through a merger with Venus Acquisition Corporation, a special purpose Acquisition Company (SPAC). In connection with the transaction, VIYI algorithms is valued at $400 million. Upon completion of the transaction, Venus will be renamed MicroAlgo Inc. The listing merger will be completed in the third quarter of 2021.

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, to streamline their digital services for end-users or technological development purposes, 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 includes 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 VIYI’s customers through bespoke central processing algorithms serves as a driving force for VIYI’s long-term development.

Currently, VIYI’s technology and solutions are mainly in the field of internet multimedia video advertising, internet gaming entertainment, where VIYI has historically been successful in providing advertising distribution solutions, online game agent solutions, software services, and comprehensive solutions for enterprise customers. Starting in September 2020, VIYI developed its intelligent chips solutions by acquiring 100% owned subsidiary Fe-da Electronics as VIYI believes that the demand for algorithms in the semiconductor sector is growing rapidly, representing huge market potentials.

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 VIYI’s 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.

VIYI will continue to strengthen its central processing algorithm solutions for its core customers in internet advertisement, gaming, and intelligent chip businesses to ensure a steady revenue stream.

VIYI’s core customers in internet advertisement, gaming, and intelligent chip businesses represent industries experiencing significant growth in recent years and are expected to continue growing. VIYI will continue to strengthen and market its central processing algorithm solutions applicable to its core industry customers to deliver measurable results and ensure a constant stream of revenue.

The digital marketing industry has grown from RMB 218.5 billion in 2015 to RMB 665.8 billion in 2019 in terms of internet advertisement spending, representing a CAGR of 27.5%, and is expected to continue to grow at a CAGR of 8.4%, reaching RMB 1,545.5 billion by 2024, according to the CIC Report. In addition, VIYI understands its customers are increasingly focusing on measurable advertising results, with performance-based advertising solutions experiencing rapid growth. VIYI’s scalable central processing algorithm solutions are well suited to meet this increasing demand and customers’ need for measurable results, i.e., measurable conversion rate.

In terms of the gaming industry, the CIC Report indicates that the overall Chinese gaming market has been continuously growing in the past five years. The market size in terms of consumer spending was RMB 275.5 billion in 2019, representing a year-on-year growth rate of 6.3% since 2018. Notably, mobile games have moved into a leading position in consumer spending and market share in relation to the overall games industry. In 2019, the market for mobile games was ranked number 1 by a proportion of 73.9% and has surpassed traditional PC and web games to become gamers’ dominant choice in the market. The number of mobile gamers in China also increased from 455 million in 2015, to 620 million in 2019, representing a CAGR of 8.0%. Moreover, the average daily time spent by mobile gamers is expected to grow at a CAGR of 7.0%, reaching 30 minutes per day by 2024, according to the CIC Report. VIYI’s game distribution platform coupled with the capability to provide central processing algorithm solutions to upstream developers and gamers alike is uniquely positioned to capture this growing market opportunity.

In terms of the intelligent chip industry, according to the CIC Report, technologies that are critical to the intelligent chip industry have become increasingly mature since the beginning of the 21st century. Intelligent chips have also been entering into consumers’ daily lives at an increasing rate as components to mobile phones, personal computers, and smart TVs. Since 2017, driven by the demand from emerging industries such as AI, smartphones, IoT, 5G, cloud computing, smart healthcare, and security, the global chip industry has grown from US$274.5 billion in 2015 to US$333.4 billion in 2019. Growth is expected to continue at a CAGR of 7.5% per year, reaching US$515.7 billion by 2025 due to increasing downstream demand. Notably, the AI market has significantly benefitted from the development of IoT, cloud computing technology, and an increase in government investments. From a quantitative perspective, the scale of the core industry is expected to reach RMB 400 billion by 2025, representing an increase of RMB 350 billion from 2020 to 2025. The development of AI will be a significant driving force behind the monetization market for central processing algorithm solutions intended to optimize intelligent chip performance.

From the perspective of applications of VIYI’s central processing algorithms in relation to intelligent chips, VIYI understands that AI — from cloud to edge or down to terminals — is inseparable from the ability for intelligent chips to efficiently execute “training” and “inference” computing tasks, which cannot occur unless the baseline software and hardware are optimized correctly. Moreover, industrial applications of intelligent chips are wide-ranging and include information infrastructure services, electronic products manufacturing, image recognition, voice recognition, machine translation, smart IoT, and other smart applications. These demands create a distinct market for VIYI’s central processing algorithms solutions, while giving off better energy efficiency ratios during such data processing exercises.

VIYI’s Ecosystem and Its Participants

VIYI has effectively established an ecosystem centered around internet advertisement, games, and intelligent chip optimization. VIYI connects with market participants representing every stage in these core industry verticals. They include advertisers, internet advertising integration agencies, internet traffic wholesalers, online platforms, online game developers and distributors, cloud service providers, electronics manufacturers, internet information infrastructure service providers, and internet users, as illustrated in the diagram below:

VIYI’s revenue from digital marketing is derived based on the effectiveness of VIYI’s ad placement. VIYI’s one-stop-shop service solutions enable internet advertising integration agencies to complete cost-effective advertising placements, which allows them to acquire, transform and retain advertisers efficiently.

As cost outlays, VIYI purchases advertisement placement opportunities from internet traffic wholesalers. VIYI also pays corresponding fees to internet traffic wholesalers based on the CPM charging model.

To ensure a continuous stream of revenue, VIYI is constantly updating the inventory of advertisements ready for placement to internet traffic wholesalers with whom VIYI partners. They include short video platforms, video platforms for drama series and films, as well as news and information platforms. VIYI is constantly updating internet traffic wholesalers’ advertisement inventories in real-time for maximum effectiveness. The central processing algorithm services VIYI provides are able to meet these real-time requirements. Therefore, VIYI believes that its services are critical to helping VIYI’s customers to achieve high conversion rates.

VIYI’s revenue from the gaming industry is mainly derived from sales commissions. VIYI collaborated with numerous online game developers and game distributors in operating online games, which are made available on VIYI’s online game platform. VIYI provides online game developers and game distributors with value-added services through customized central processing algorithm processing services, including lightweight data processing, computing power, and algorithm optimizations as well as game acceleration.

VIYI also uses cloud services to ensure that its central processing algorithm services are maintained in a safe and reliable environment.

VIYI’s revenue from the intelligent chip industry is derived from service fees and sales revenue. Electronics manufacturers and internet information infrastructure service providers rely on VIYI’s intelligent chip optimization solutions; VIYI provides them with hardware and software integrated intelligent chip optimization solution services that combine chip hardware and smart application software.

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Do you remember the virtual reality simulation created by James Halliday in Ready Player One? Now it’s not just science fiction.

Recently, science community and venture capitalists have been fiercely discussing a concept: Metaverse. Some people say that the significance of concept “Metaverse” is equivalent to that of “Internet”, and it will have a tremendous impact on human society in the next 10 years.

Wikipedia explains the Metaverse as a collective virtual shared space, created by the convergence of virtually enhanced physical reality and physically persistent virtual space, including the sum of all virtual worlds, augmented reality, and the Internet. The Metaverse extends people’s real life, existing as a separate parallel world. Some predict it the ultimate form of Internet just as what Ready Player one showed.

Simply put, everyone and everything in the real world are digitally projected into this virtual world, and in this world your routine in real life persists. Go out there for dinner and shopping with friends, or even socialize with virtual Facebook, go shopping on virtual Amazon. Seemingly you live a normal life like before. What’s more thrilling is that you can try something new, for instance, teleporting to Los Angeles for shopping.

Presuming Metaverse as virtual world with only one parallel to reality definitely despises it too much. The Metaverse enables multiple virtual worlds to exist at the same time. In other words, any person or company can build their own virtual world like a game world, an amusement park, a shopping world… The huge market allows companies to make big profits not only in the real world, but also in the virtual world.

Attention to the Metaverse follows the favorable trend. In the context of investment potential of mobile Internet fading, capitalists are seeking a new generation of interactive carriers after the Internet time of personal computers and the mobile, which is expected to start a new wave.

The Metaverse has become a hot topic in the global capital market and is considered to be the revolution of Internet interaction. On the one hand, the VR industry has witnessed a turning point. The latest products of Facebook Oculus, AR glasses and other human-computer interaction projects have detonated the market, taking on its economical-friendly performance and good user experience. On the other hand, Roblox, the prototype of Metaverse, was listed in market in March with soaring stock price afterwards.

As the first company to include Metaverse in its prospectus, Roblox attracted 42 million daily active users and created more than 1,800 thousand of game experiences. Under the running method, the highly active developers and considerable users’ support predict development potential of the market.

With maturity and stability of technology, the ultimate development stage of Metaverse is to reconstruct the realistic socializing, life, economic and social systems in the digital world. The cognition of the Metaverse will be deepened in the market. From Internet based on consumers to Internet based on products, the Metaverse will show up to integrate online sales and offline supply. Under this new set of system, the creation, transaction, and production of users in Metaverse are combined with the real world to realize a closed-loop social economic system.

The meta-universe industry chain can be divided into multiple layers from the visible usage scenario to the hidden technology.

· Experience

The game is currently the “entry” closest to the Metaverse. The game will evolve and provide users with more experience for entertainment, social interaction, consumption, learning and business, covering various life scenarios.

· Spatial Computing

Integrate the digital and the real world, so that the two worlds can perceive, understand and interact with each other. Relevant technology includes 3D Engine, VR, AR, XR (Extended Reality), Speech and Gesture Recognition, Spatial Mapping, Digital Twin…

· Human-Computer Interaction

With the realization of miniaturized sensors, Embedded AI, and Edge Computing in low latency, it is expected that future human-computer interaction devices will bring more applications in the Metaverse. VR/AR headsets are generally perceived to be the main terminal device to enter the Metaverse. Wearable devices, brain-computer interfaces and other devices that further enhance immersion are also at the range.

· Infrastructure

The basement of Metaverse is an inevitable outcome of the infrastructure technology’s development. With the maturity of 5G, cloud computing, and semiconductor technologies, the real-time communication capabilities in the virtual world allow a large number of users online at the same time and achieve a more immersive experience.

In short, under this great prospect, the Metaverse will further change the way of life and work of mankind. Metaverse is a 3D virtual world that connects everyone to each other. Based on VR, AR, 5G, blockchain and other technical means, people have their own digital identities in Metaverse, and they can interact with each other in that world and create whatever content they want as well just as they do now.

Now both the technology industry and the Internet industry are barely overlooking the prospect of the Metaverse, let alone companies that are known for multi-industry and cross-fields. WiMi Hologram (WIMI) is one of the models.

With years of accumulation, WIMI currently covers eight categories of AI, AR, 5G, VR, high performance computing, high expansion computing, edge computing and semiconductor chip equipment. Meanwhile, with the world’s leading 3D computer vision technology and SaaS (Software-as-a-Service) platform technology, by cloud algorithms WIMI turns ordinary images into holographic 3D’s form, which is widely utilized in holographic advertising, holographic entertainment, holographic education, holographic communication and other fields.

In the past year or two, WIMI has made great breakthroughs in maturity and commercialization of the specific technologies involved in Metaverse, including VR, AR, and Brain Computer Interface.

Last year, WIMI, as the first share of the hologram field, was successfully listed. It has successively obtained strategic investment from some well-known investment institutions such as Weibo, and its revenue has increased substantially by several hundred-million-yuan year-on-year.

Through financing mergers and acquisitions, the investment arrangement was been implemented by WIMI. Cross-field cooperation on production and research was carried out in AR chip technology. WIMI has great technical advantages in the fields of 3D holographic pulse lidar products, VR/AR, HUD (Head Up Display), and sensors.

According to Sullivan Consulting, WIMI has become a leading holographic AR application platform from the perspective of overall industry situation in 2020

WIMI adheres to the R&D of human-computer interaction technologies represented by VR and AR, and announced that it has obtained a patent for holographic AR head-mounted display.

According to its annual report, WIMI established a visual design research project and entered the field of VR/AR digital content development. The 5G+AR education has already begun to take shape.

Its representative said that in the future, the company will work with relevant partners to jointly promote a highly simulated, immersive, and interactive overall solution that combines VR/AR hardware, software and digital content. In addition, WIMI relies on an excellent visual design team to steep in the AR live technology and launch relevant service.

The WIMI AR+ live system, in simple terms, uses AR holographic technology to provide ultra-high-definition live services in mobile scenarios. In terms of video formats, it is compatible with VR, AR, and 4K/8K, by multi-view switching satisfying the higher demand of audiences.

WIMI also has attainments in software technology. It covers AI, machine recognition, machine learning, model theory, video image processing technology and the leading AR holographic application platform. It is currently mainly used in entertainment, advertising, medical care and others.

WIMI has committed to in-depth R&D and actual applications in all aspects of holographic 3D computer vision acquisition, AI synthesis, transmission, presentation, and application. Its capabilities cover everything from vision production, service platform construction, to software development and technical support. It’s not impossible for WIMI to promote the gradual evolution of the Metaverse into a high-precision duplication of the “real world” in the virtual environment.

With the Metaverse concept hitting the field, WIMI’s strategy revolves around the creation of virtual images, virtual objects and virtual scenes, which will also drive the development of 3D industries. It bears no doubt that with the support of WIMI’s holographic virtual technology, the marketing method of various industries such as social network, brand marketing, culture and entertainment will undergo remarkable renovation. After all, people are full of expectations for Metaverse.

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