VIYI Algorithms Will Be Valued at $400 Million through the IPO of SPAC and Venus Acquisition Corporation
Hong Kong – Recently, TickerWin, the leading market research firm, has released a research report “VIYI Algorithms Will Be Valued at $400 Million through the IPO of SPAC and Venus Acquisition Corporation”. Recently, VIYI Algorithms, Inc. (“VIYI Algo”) 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.
The combined entity will be named MicroAlgo Inc. when the transaction closes, which is expected by the end of the third quarter of this year.
VIYI Algo is dedicated to the development and application of customized central processing algorithms. By integrating central processing algorithms with software or hardware or both, VIYI Algo provides customers with comprehensive solutions that help them increase customer numbers, improve end user satisfaction, achieve direct cost savings, reduce power consumption, and achieve technical goals.
VIYI Algo’s services range from algorithmic optimization, accelerated computing power without hardware upgrades, lightweight data processing and data intelligence services. VIYI Algo’s ability to effectively provide customers with software and hardware optimization through customized central processing algorithms is the driving force behind VIYI Algo’s long-term growth.
According to the CIC report, revenue from central processing algorithm services generated by Internet advertising and online games alone grew from RMB2.2 billion in 2016 to RMB6.9 billion in 2020, representing a compound annual growth rate of 32.7%. The market is expected to maintain its rapid growth trend, growing at a COMPOUND annual growth rate of 15% between 2020 and 2025.
Venus Acquisition Corporation was launched on January 22 last year and completed its INITIAL public offering of 4 million units on February 10 this year, raising $40 million.
VIYI ranks as one of the top five Chinese companies for central processing algorithm services. According to the CIC Report, as of 2020, VIYI has captured 5% of the market share for central processing algorithm services provided to internet advertisement and online gaming acceleration industries.
VIYI is ideally positioned to grow its revenue quickly as a leading central processing algorithm service provider in China. According to the CIC Report, VIYI is the only company amongst its competitors to provide central processing algorithm service solutions in both internet advertisement and online game acceleration industries. As a result, since 2017, VIYI’s revenue growth has been increasing on a cumulative basis, specifically, VIYI has achieved a year-on-year revenue growth rate of 31.9% in 2018, 52.6% in 2019, and 176.8% in 2020.
Customized central processing algorithm solutions in a diverse range of scenarios, serving customers in a diverse and growing range of industry verticals
VIYI’s diverse range of customers from multiple industries is evidence that its central processing algorithm technology is highly versatile, which allows VIYI to ensure a constant stream of revenue from various sources. VIYI primarily provides central processing algorithm solutions to enterprise customers in three industry verticals: internet advertisement, gaming, and intelligent chips, which translate to a range of customers including advertisement integration agencies, game developers and distributors, electronics manufacturers, internet information infrastructure service providers, and intelligent chip designers and integrators. Having the capability to service customers from a range of industries works to VIYI’s advantage because it can derive business from multiple industry sources to ensure a stream of revenue even when one industry faces downturns.
Generally, the central processing algorithm services of VIYI achieve computing power acceleration, digital lightweight processing, and intelligent data management and processing. These improvements help VIYI’s customers grow and enhance their businesses’ operational quality and overall efficiency. Currently, VIYI’s central processing algorithm solutions have the following applications to its existing core customers:
For customers in the internet advertisement industry, VIYI’s proprietary central processing algorithms allow them to effectively optimize advertisement content, match internet traffic, and deliver targeted advertisements to increase conversion rate;
For customers in the gaming industry, VIYI provides a platform for distributing games augmented by cloud-based software and hardware optimization and acceleration, dynamic games marketing based on gamer preference, and lightweight data processing solutions to increase VIYI’s customers’ revenue;
For customers in the intelligent chip industry, VIYI provides value-added data processing solutions and optimized hardware for more efficient data services, promoting VIYI’s customers’ efficiency in developing new technologies.
VIYI derives its revenue primarily from central processing algorithms services for the internet advertisement and internet gaming industries and 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 main purpose of the central processing algorithm service is to achieve intelligent management of data (data collection, analysis, classification, matching, etc.) and optimize the allocation of resources. Sensors and chips are the fundamental equipment for realizing “data + computing power + algorithm”, while algorithm technology is the technical support for the development of big data, cloud computing and IoT. Currently, VIYI’s central processing algorithm services mainly focus on the industry application in the fields of internet advertising distribution solutions and online game agent solutions.
According to the CIC Report, with the rapid growth of the demand for computing power and algorithm optimization services in the internet advertisement and online game industry, the scale of central processing algorithm application in these two industries has reached a CAGR of 38.1% in the past five years and will continue to grow rapidly. The application scale of central processing algorithms reached RMB 7.3 billion in 2019 and is expected to reach RMB 16.1 billion by 2024.
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