Core Viewpoint - MicroAlgo Inc. has developed a quantum edge detection algorithm that significantly improves real-time image processing by reducing computational complexity from O(N²) to O(N) while maintaining high detection accuracy [1][2]. Technology Overview - The quantum edge detection algorithm utilizes quantum state encoding and quantum convolution principles, enhancing feature extraction through quantum gate operations and leveraging quantum parallelism for simultaneous processing of multiple pixel neighborhoods [2][3]. - The technology follows a hybrid architecture consisting of quantum preprocessing, quantum feature extraction, and classical post-processing, converting image data into quantum states for efficient processing [3][4]. Operational Mechanism - Quantum convolution circuits simulate edge detection kernels using parameterized quantum gates, allowing for dynamic adjustments in sensitivity and directionality of edge detection [4]. - Projective measurements convert quantum states into classical probability distributions, reconstructing edge images through maximum likelihood estimation or Bayesian inference [5]. Optimization Framework - A variational quantum algorithm (VQA) is employed to optimize quantum circuit parameters, utilizing a classical optimizer to enhance algorithm adaptability based on performance metrics [6]. Applications - The quantum edge detection technology has been applied in various fields, including medical imaging for precise tumor boundary detection, remote sensing for waterline extraction, industrial quality inspection for crack detection, and autonomous driving for improved lane line recognition [8]. Future Prospects - Future expansions of MicroAlgo's quantum edge detection algorithm are anticipated in areas such as multimodal image fusion, encrypted image analysis, and photonic quantum chip integration, aiming to transform image processing in intelligent security and biomedical research [9].

Exhibit 99.1 MicroAlgo Announces Profitable 2024 with Strong Growth in Central Processing Algorithm Services This press release contains statements that may constitute "forward-looking statements." Forward-looking statements are subject to numerous conditions, many of which are beyond the control of MicroAlgo, including those set forth in the Risk Factors section of MicroAlgo's periodic reports on Forms 20-F and 6-K filed with the SEC. Copies are available on the SEC's website, www.sec.gov. Words such as "e ...

Business Combination and Corporate Structure - MicroAlgo Inc. completed a business combination with VIYI Algorithm Inc. on December 12, 2022, and changed its name to MicroAlgo Inc. following the merger[24]. - The Class A Ordinary shares of MicroAlgo are listed on the Nasdaq under the symbol "MLGO" and Public Warrants are traded OTC under "VENAF"[25]. - The company operates as a "controlled company," with a major shareholder owning over 50% of voting power, which may limit protections for other shareholders[90]. - The dual-class share structure concentrates voting control with Class B shareholders, potentially limiting the influence of other investors on corporate matters[91]. Regulatory Environment and Compliance - The PCAOB has secured complete access to inspect and investigate registered public accounting firms in mainland China and Hong Kong as of December 15, 2022, which alleviates previous concerns regarding the HFCA Act[30]. - The company is required to file with the CSRC for overseas offerings of equity and equity-linked securities under the new Trial Measures effective March 31, 2023[34]. - The company faces substantial uncertainties regarding the enactment and implementation of the PRC Foreign Investment Law, which may impact its corporate structure and operations[43]. - The company is subject to extensive and evolving legal systems in the PRC, which may adversely affect its business and prospects[43]. - The PRC government has substantial control over the economy, and any changes in laws or regulations could adversely affect the company's operations and financial condition[131]. - The company is required to file with the CSRC for overseas securities offerings, and failure to comply could materially affect its ability to raise funds[135][136]. - The PRC legal system's uncertainties may limit legal protections and could materially affect the company's operations and the value of its Class A Ordinary shares[146]. - The PRC government is enhancing supervision over companies seeking listings overseas, which may result in significant operational changes or challenges for the company[149]. Financial Performance and Risks - MicroAlgo's ability to pay dividends is dependent on the dividends received from its subsidiaries in China, which may be restricted by debt instruments governing those subsidiaries[35]. - The company does not intend to pay cash dividends for the foreseeable future, impacting shareholder returns[46]. - The company may need additional capital to support or expand its business, and there is uncertainty regarding the ability to obtain such capital on favorable terms[41]. - The company may require additional financing for operations or growth, and failure to secure such financing could adversely affect development[201]. - The company faces significant risks related to competition, market evolution, and the ability to sustain growth due to its limited operating history[40]. - The company has a limited customer base, relying on a small number of customers for a significant portion of its revenues, which poses concentration risk[41]. - The company derived 9.3% and 12.0% of total revenues from its largest customer for the years ended December 31, 2023 and 2024, respectively[122]. - Accounts receivable for the years ended December 31, 2023 and 2024 showed that 54.1% and 50.5% were from 3 customers, respectively[122]. Market and Competitive Landscape - The company operates in a rapidly evolving market, relying on the growth of the central processing algorithm service industry in the PRC[47]. - The central processing algorithm service industry is rapidly evolving, and the company must continuously invest in new technologies to maintain its competitive advantage[60]. - The ability to obtain favorable pricing for services is affected by competitive pressures, which could materially impact the company's results of operations[64]. - The introduction of new services or technologies by competitors may reduce the differentiation of the company's offerings, impacting its competitiveness[61]. - Negative media coverage could adversely affect the company's brand recognition and sales of products and services[70]. Operational Risks and Challenges - The company faces significant risks related to competition, market evolution, and the ability to sustain growth due to its limited operating history[40]. - The company may face difficulties in maintaining adequate financial and management processes, which could lead to errors in financial reporting[56]. - The company’s operations are highly dependent on the performance and reliability of its information technology systems, which are vulnerable to various disruptions, potentially harming user experience and business reputation[80]. - The company partially depends on third-party services and technologies, and any disruption in these services could slow user growth and adversely affect financial performance[84]. - The company has limited insurance coverage for business disruptions, which could lead to substantial costs and resource diversion in the event of uninsured losses[86]. Taxation and Financial Implications - The company may be classified as a "PRC resident enterprise" under the PRC enterprise income tax law, potentially resulting in unfavorable tax consequences[44]. - Non-PRC resident holders of Class A Ordinary shares may face a 10% withholding tax on dividends and a 20% tax on capital gains sourced from within the PRC[156]. - The classification as a PRC resident enterprise could lead to a 25% enterprise income tax on global income and a 10% withholding tax on dividends paid to non-resident shareholders[191]. - The potential for regulatory changes in the PRC could delay or prevent the company from conducting business or accepting foreign investments[149]. Future Outlook and Projections - Key projected financial metrics are subject to significant risks and uncertainties, which may lead to material differences from expectations[198]. - The company operates in a rapidly evolving and highly competitive industry, making financial metrics difficult to forecast due to inherent risks and assumptions[199]. - The market price of Class A Ordinary shares has been volatile, influenced by both market factors and company-specific operations[194]. - The trading volume and market price of the company's shares could be negatively impacted if analysts do not publish favorable research or cease coverage[209].

Shenzhen, April 28, 2025 (GLOBE NEWSWIRE) -- Shenzhen, China, April 28, 2025 – MicroAlgo Inc. (NASDAQ: MLGO), (the "Company"), a leading developer and application provider of bespoke central processing algorithms, today announced its financial results for the year ended December 31, 2024. The Company reported total revenues of RMB 541.5 million (USD 75.3 million) and net income of RMB 53.4 million (USD 7.3 million), marking a significant turnaround from the previous year's net loss of RMB 266.2 million and ...

Core Idea - MicroAlgo Inc. has developed the Classical Boosted Quantum Optimization Algorithm (CBQOA), which combines classical and quantum computing to solve constrained optimization problems more efficiently [1][10]. Technology Overview - CBQOA integrates classical optimization methods with quantum computing techniques, allowing for effective solutions to combinatorial optimization problems without altering the cost function [1][10]. - The algorithm first uses classical methods to identify high-quality feasible solutions, which are then refined using quantum computing [3][10]. Classical Optimization Techniques - Efficient classical optimization algorithms such as greedy algorithms, heuristic algorithms, and simulated annealing are employed initially to generate feasible solutions [4][10]. - Specific classical strategies can be tailored to different problems, such as using heuristic algorithms for the Maximum Cut Problem and greedy algorithms for the Maximum Independent Set Problem [5][4]. Quantum Computing Integration - After classical optimization, CBQOA utilizes Continuous-Time Quantum Walk (CTQW) to search the solution space, enhancing the efficiency of the search process [6][10]. - CTQW allows quantum states to propagate within the feasible solution space, reducing ineffective searches and increasing the likelihood of finding the global optimum [7][10]. Practical Applications and Impact - The introduction of CBQOA is expected to advance quantum computing from theoretical research to real-world applications, particularly in industries facing complex optimization challenges [11]. - The algorithm is anticipated to become a core component of next-generation optimization algorithms, fostering interdisciplinary research across fields such as computer science, operations research, and artificial intelligence [11][10]. Company Background - MicroAlgo Inc. specializes in developing bespoke central processing algorithms and offers solutions that enhance customer satisfaction, reduce costs, and improve technical performance [12].

Core Insights - WiMi Hologram Cloud Inc. has increased its stake in MicroAlgo Inc. to 67.65% and has committed to a ten-year lock-up period for its shares [1][2]. Company Overview - WiMi Hologram Cloud, Inc. is a leading provider of holographic cloud technology, focusing on areas such as holographic AR automotive HUD software, 3D holographic pulse LiDAR, and holographic semiconductor technology [3]. - The company's services include various holographic AR technologies, such as automotive applications, advertising, entertainment, and interactive communication [3]. Shareholding Details - As of March 27, 2025, WiMi holds a total of 44,878,261 restricted Class B ordinary shares, 1,810,658 restricted Class A ordinary shares, and 40,000 unrestricted Class A ordinary shares of MicroAlgo, representing a total equity stake of 67.65% [2]. - WiMi has no plans to sell or dispose of any MicroAlgo shares during the lock-up period [2].

Core Viewpoint - MicroAlgo Inc. plans to issue new shares at $0.8 per share to repay a $20 million convertible bond, which was agreed upon with creditors on October 7, 2024, and has a maturity period of 360 days [1][2]. Group 1: Convertible Bond Agreement - The convertible bond purchase agreement involves a total amount of $20 million, with bonds convertible into common shares at a price equal to 70% of the lowest closing market price during the 60 trading days preceding the conversion request [1]. - Creditors have requested the issuance of new shares at $0.8 per share as part of the debt repayment process [2]. Group 2: Company Overview - MicroAlgo Inc. is a Cayman Islands exempted company focused on developing and applying bespoke central processing algorithms, providing solutions that enhance customer acquisition, end-user satisfaction, cost savings, and technical goals [4]. - The company's services include algorithm optimization, computing power acceleration without hardware upgrades, lightweight data processing, and data intelligence services [4].

Core Concept - MicroAlgo Inc. has introduced a multi-simulator collaborative algorithm based on subgraph isomorphism to enhance quantum computing performance by overcoming qubit limitations and utilizing distributed computing [1][13]. Algorithm Overview - The algorithm decomposes large quantum circuits into smaller sub-circuits, allowing for parallel and distributed computing across multiple quantum devices [2][6]. - It employs subgraph isomorphism algorithms to identify subgraph structures within quantum circuits, ensuring that each sub-circuit operates independently and efficiently [3][5]. Computational Efficiency - The partitioning strategy optimizes computational efficiency by ensuring that sub-circuits do not interfere with each other during parallel execution [4][7]. - Quantum circuit optimization techniques are applied to reduce computational complexity and enhance execution efficiency [8]. Result Validation - MicroAlgo has conducted tests demonstrating that the results from the parallel execution of sub-circuits match those from a single quantum computer, validating the algorithm's effectiveness [10][11]. - The algorithm has been tested on various types of quantum circuits, proving its capability to handle both simple and complex circuits efficiently [12]. Future Potential - The multi-simulator collaborative algorithm is expected to play a significant role in advancing quantum computing applications and may be integrated with other quantum algorithms for more complex tasks [14][15]. - MicroAlgo aims to further optimize the algorithm for large-scale quantum circuits, enhancing its scalability and application in various fields [14][15]. Company Background - MicroAlgo Inc. focuses on developing bespoke central processing algorithms and provides solutions that integrate these algorithms with software or hardware to improve customer satisfaction and operational efficiency [16].

Core Insights - MicroAlgo Inc. has enhanced the stability and practicality of the Grover algorithm by optimizing quantum circuit design and reducing qubit error rates, which improves performance in real-world applications [1] - The Grover algorithm theoretically reduces search complexity to O(√N), providing exponential speedup for large-scale unordered databases, thus significantly improving search efficiency [7] - Continuous advancements in quantum chip manufacturing and algorithm optimization are expected to broaden the application of MicroAlgo's Grover algorithm across various fields, enhancing information search and processing tasks [9] Company Overview - MicroAlgo Inc. is focused on developing bespoke central processing algorithms and offers comprehensive solutions by integrating these algorithms with software and hardware [10] - The company aims to help clients increase customer numbers, improve end-user satisfaction, achieve cost savings, and reduce power consumption through its services [11] - MicroAlgo's long-term development is driven by its ability to efficiently deliver software and hardware optimization through tailored central processing algorithms [11]

Core Insights - MicroAlgo Inc. has developed a quantum neural network-based intelligent search system that enhances data processing efficiency by utilizing quantum machine learning techniques [1][6][7] - The system employs Grover's algorithm for precise searching, significantly improving search efficiency, especially in big data contexts [5][6][7] Technology Overview - Quantum Neural Networks combine quantum mechanics with artificial neural networks, enabling high-speed data processing and advanced optimization analysis [2] - The intelligent search system follows a structured process that includes data preprocessing, feature extraction, subset focusing, and result feedback for continuous optimization [3][4][5] Application and Impact - The integration of quantum neural networks with Grover's algorithm has the potential to revolutionize database management, reduce search costs, and enhance efficiency in various fields such as big data analysis, information security, and bioinformatics [7][8] - As quantum technology matures, MicroAlgo aims to expand the application of its technology, addressing complex real-world problems and enhancing data processing capabilities across industries [8] Company Profile - MicroAlgo Inc. is focused on developing bespoke central processing algorithms and offers comprehensive solutions that integrate these algorithms with software and hardware [9][10] - The company's services include algorithm optimization, computing power acceleration, lightweight data processing, and data intelligence services, contributing to long-term development and customer satisfaction [10]