SHENZHEN, China, April 22, 2025 /PRNewswire/ -- MicroCloud Hologram Inc. (NASDAQ: HOLO) ("HOLO" or the "Company"), a Hologram Digital Twins Technology provider, today announced that it developed an innovative solution aiming to provide an effective reconstruction for blockchain when it gets attacked. The solution employs verifiable secret sharing (VSS) technology to ensure that the blockchain system can quickly restore and maintain data integrity and consistency even under extreme circumstances. HOLO's bloc ...

SHENZHEN, China, March 21, 2025 /PRNewswire/ -- MicroCloud Hologram Inc. (Nasdaq: HOLO) ("MicroCloud" or the "Company") today filed its operational and financial results for the fiscal year ended December 31, 2024, on Form 20-F with the U.S. Securities and Exchange Commission (the "SEC"). MicroCloud is dedicated to the research, development, and application of holographic technology, striving to offer leading holographic technology services to customers worldwide. In 2024, the Company achieved remarkable su ...

Customer and Vendor Concentration - The company's five largest customers accounted for approximately 41.6% of revenues for the year ended December 31, 2024, with the largest customer contributing about 13.4%[59] - For the years ended December 31, 2023 and 2024, 62.6% and 32.0% of total purchases were from three and two vendors, respectively, indicating a significant vendor concentration risk[60] Research and Development - The company expects to incur substantial research and development costs, which could significantly reduce profitability, with no guarantee of generating future revenue[56] - The company's success in the automotive sector relies on the commercialization of its holographic ADAS solutions, which are still in the early stages of development by customers[46] Market Risks - The market adoption of LiDAR technology, particularly holographic LiDAR, remains uncertain, which could adversely affect the company's business if adoption does not develop as expected[50] - The company faces intense competition in the holographic service market, which could create downward pressure on pricing and profitability[47] - Continued pricing pressures from automotive OEMs could lead to low profitability or losses for the company[65] Financial and Capital Risks - The company may need to raise additional capital in the future, which may not be available on favorable terms, potentially limiting growth opportunities[57] - The company's financial results could be adversely affected if any key supplier fails to fulfill contractual obligations, impacting cash flows and profitability[61] - The company has a limited operating history, and its past growth rates may not be indicative of future performance[66] - Rapid growth has placed strain on management and resources, affecting the company's ability to sustain growth[67] Operational Challenges - Attracting and retaining skilled personnel is critical for future success, with intense competition for talent[68] - Negative media coverage could harm the company's brand and adversely affect sales[69] - The company relies on third-party services, and disruptions could slow user growth and negatively impact operations[79] - Insurance coverage is limited, and any uninsured disruptions could result in substantial costs and affect financial condition[81] Internal Controls and Compliance - The company has identified material weaknesses in internal control over financial reporting, particularly in understanding U.S. GAAP, which may lead to misstatements in financial statements[94] - The company plans to hire personnel with U.S. GAAP experience to strengthen its financial reporting function and address identified weaknesses[95] - The company may incur additional operating costs as it implements measures to remediate identified weaknesses in internal controls[96] Regulatory Environment - The company is subject to extensive regulations in China, which may create uncertainties regarding compliance and operational continuity[87] - The company faces risks related to data protection and cybersecurity, which could lead to unexpected costs and enforcement actions[89] - The company is subject to evolving PRC laws regarding data security and privacy, which may create uncertainties in compliance[121] Economic and Political Risks - The company is exposed to risks from adverse changes in China's economic, political, or social conditions, which could materially affect its financial condition[103] - The international economic relations between the U.S. and China remain volatile, affecting the company's competitive position and market demand[107] Taxation and Financial Regulations - The PRC withholding tax rate on dividends paid by PRC subsidiaries to foreign enterprises is currently 10%[146] - The withholding tax rate may be reduced to 5% if certain conditions are met under the Double Tax Avoidance Arrangement[146] - The PRC enterprise income tax rate is generally 25% for indirect transfers of assets by non-PRC resident enterprises[152] Foreign Exchange and Liquidity Risks - Fluctuations in exchange rates could materially affect the company's results of operations and investment value, with the Renminbi having appreciated over 20% against the U.S. dollar since 2005[176] - The company relies on dividends from its PRC subsidiaries to fund cash requirements, and approval from SAFE is needed for converting Renminbi into foreign currency for capital expenses[178] - The company is exposed to liquidity risk, which may hinder its ability to meet commitments and business needs[559] Shareholder and Market Risks - The trading prices of the company's Ordinary shares may be volatile due to various factors, including market conditions and performance of other PRC companies listed in the U.S.[193] - The sale of substantial amounts of Ordinary shares could adversely affect the market price and the company's ability to raise capital in the future[199] - If securities analysts do not publish research or publish unfavorable reports, the company's share price and trading volume could decline[200]

SHENZHEN, China, March 18, 2025 (GLOBE NEWSWIRE) -- MicroCloud Hologram Inc. (NASDAQ:HOLO), ("HOLO" or the "Company"), a technology service provider, announced the proposal of a new method based on Matrix Product States (MPS) that enables high-precision quantum state preparation with a mirror-symmetric probability distribution. This research not only reduces the entanglement of the probability distribution but also significantly improves the accuracy of the matrix product state approximation, resulting in a ...

SHENZHEN, China, March 17, 2025 (GLOBE NEWSWIRE) -- MicroCloud Hologram Inc. (NASDAQ:HOLO), ("HOLO" or the "Company"), a technology service provider, they are researching CV-QNN (Continuous Variable Quantum Neural Networks) technology, with the aim of building Variational Quantum Circuits embedded in CV architecture. In this way, it is possible not only to quantumize classical neural networks, but also to design various specialized quantum models, such as convolutional quantum networks, recursive quantum ne ...

Core Viewpoint - MicroCloud Hologram Inc. has proposed an innovative high-dimensional quantum key distribution (QKD) protocol that utilizes quantum Fourier transform, enhancing security and information efficiency in quantum transmission [1][5]. Group 1: Quantum Key Distribution Protocol - The proposed QKD protocol employs a coding framework that ensures secure key distribution through quantum operations, specifically quantum Fourier transform and quantum-controlled NOT gate [1][2]. - The secret information is concealed within the relative phases of high-dimensional entangled states, allowing for secure storage and retrieval of information [2][3]. - High-dimensional quantum states significantly increase information-carrying capacity compared to traditional binary states, breaking the previous limit of 1 bit per particle [3][4]. Group 2: Security and Performance - The QKD protocol demonstrates superior cryptographic performance, surpassing traditional methods that rely on mathematical problems, thus reducing the risk of compromise as computational power increases [4]. - The protocol is based on quantum mechanics principles, such as the no-cloning theorem and Heisenberg's uncertainty principle, which fundamentally prevent information eavesdropping or tampering [4][5]. - The high-dimensional quantum state key allows for the transmission of more keys under the same conditions, addressing the growing demands for information security in the big data era [4][5]. Group 3: Future Implications - The advancements made by MicroCloud in the QKD protocol lay a solid foundation for the future development of quantum key distribution technology, potentially leading the field into a new stage of development [5].

Core Viewpoint - MicroCloud Hologram Inc. has introduced a new Bitcoin blockchain hybrid consensus algorithm aimed at enhancing the performance, scalability, security, and consistency of the Bitcoin Blockchain system [1][4]. Group 1: Hybrid Consensus Algorithm - The hybrid consensus algorithm utilizes a PoS based on the verifiable random function (VRF) protocol to ensure fairness and randomness in the consensus process, thereby preventing power concentration and malicious behavior [2][3]. - This algorithm improves network security and reliability by effectively defending against attacks from malicious nodes and ensuring transaction accuracy and integrity [3][4]. - The algorithm's adaptability allows it to intelligently select the most suitable consensus method based on actual demand and resource conditions, catering to various application scenarios [3][4]. Group 2: Financial Position and Investments - The company currently holds a cash reserve of approximately $303 million and plans to call up to $200 million in funds for investments in Bitcoin, other digital currencies, and related securities [5]. - MicroCloud has reported cumulative investment returns of $8.13 million, reflecting its commitment to maintaining a strong financial position and creating long-term value for shareholders [5]. - The company aims to enhance the diversity and risk resistance of its overall asset portfolio through these investments [5]. Group 3: Holographic Technology Services - MicroCloud provides advanced holographic technology services, including high-precision holographic LiDAR solutions and holographic digital twin technology [6]. - The company has developed a proprietary holographic digital twin technology resource library that captures 3D holographic forms using various advanced technologies [6].

Core Insights - MicroCloud Hologram Inc. has announced the purchase of up to $200 million in Bitcoin and cryptocurrency-related securities derivatives, indicating a strategic move into the cryptocurrency sector [1][2][3] - The company currently holds $303 million in cash reserves, which will be allocated towards derivatives and technology development in areas such as blockchain, quantum computing, and AI-powered AR [1][3] - The total accumulated dividends have reached $8.13 million, reflecting the company's commitment to maintaining a strong financial position and creating long-term value for shareholders [3] Financial Strategy - The investment in Bitcoin and its derivatives is part of HOLO's capital reserve strategy aimed at enhancing financial stability and long-term growth potential through diversified investments [2][3] - The allocated funds will primarily target cryptocurrencies with significant market influence and growth potential, contributing to the diversity and risk resilience of HOLO's overall asset portfolio [3] Technological Advancements - As a technology service provider, HOLO has made significant breakthroughs in quantum system research and large-scale DeepSeek integration, which support its investments in the cryptocurrency sector [4] - The company's innovations in holographic technology services, including high-precision LiDAR solutions and holographic digital twin technology, position it well for future business expansion [6]

Core Insights - MicroCloud Hologram Inc. (HOLO) has made significant advancements in scaling laws for large models, particularly in open-source configurations of 7B and 67B [1] - The company has discovered a new balancing mechanism that optimizes the relationship between model parameters and data volume, allowing for efficient scaling without performance bottlenecks [2][3] Scaling Mechanism - HOLO's new mechanism dynamically adjusts the ratio of model parameters to data volume based on specific model needs and computational limitations, enhancing resource utilization during scaling [2] - This approach addresses traditional scaling issues, leading to improved performance and efficiency across different scales [3] Deepseek LLM Project - The Deepseek LLM project aims to develop a robust open-source language model ecosystem through technological innovation and community collaboration, focusing on model performance, interpretability, security, and sustainable development [4] - HOLO has created a comprehensive dataset for the pre-training phase of Deepseek LLM, enhancing the model's adaptability and generalization capabilities [5] Optimization Techniques - The company has implemented supervised fine-tuning (SFT) and direct preference optimization (DPO) to improve the Deepseek LLM Base model, resulting in enhanced performance on specific tasks and alignment with user expectations [6] Industry Impact - HOLO's breakthroughs in large language model scaling technologies are expected to drive digital transformation across various industries, including intelligent customer service, smart writing, and intelligent translation, significantly improving work efficiency and service quality [7]

Core Viewpoint - MicroCloud Hologram Inc. is investing up to $200 million to develop quantum blockchain technology, specifically focusing on a quantum asymmetric consensus chain algorithm based on the Bitcoin blockchain to enhance security and reliability in digital transactions [1][10]. Investment and Development - The company plans to allocate no more than $200 million for investment in derivatives and technology development in cutting-edge fields related to Bitcoin, including blockchain, quantum computing, and artificial intelligence [1][10]. - The technological advancements resulting from this investment will be integrated into the company's capital operation strategy [10]. Technology Overview - The quantum asymmetric consensus chain algorithm integrates quantum technology with blockchain, enhancing the security of traditional encryption methods against potential threats from quantum computing [3][8]. - This technology aims to create a stable digital transaction platform suitable for the quantum computing era, addressing security issues in the digital economy [8][9]. Consensus Mechanism - The system's stake consensus does not require mining operations, which increases decentralization and allows all participants holding stakes to engage in the consensus process [4][5]. - A fair voting mechanism based on a delegated proof-of-stake consensus algorithm allows users to generate blocks through delegated stakes, making the consensus process more equitable [6][7]. Network Architecture - The blockchain network architecture features high decentralization, employing a distributed ledger and peer-to-peer network, enabling independent verification and storage of transaction information [7]. - The absence of mining processes leads to a fairer reward mechanism, where users earn the right to generate new blocks based on their stakes [7]. Future Prospects - The company aims to continuously improve the quantum asymmetric consensus chain algorithm to enhance system performance and security, adapting to the evolving quantum computing environment [11]. - Quantum blockchain technology is expected to integrate with various industries such as finance, supply chain, and healthcare, providing a robust infrastructure for digital transformation [11].