MicroAlgo (MLGO) - 2024 Q4 - Annual Report

Financial Highlights and Strategic Shift MicroAlgo Inc. achieved profitability and substantial cash growth in 2024, driven by a strategic shift to central processing algorithm services 2024 Financial Performance Overview MicroAlgo Inc. achieved profitability in 2024 with significant revenue and net income, reversing previous losses and substantially increasing cash reserves Key Financial Metrics | Metric | 2024 (RMB million) | 2024 (USD million) | 2023 (RMB million) | | :----------------------- | :----------------- | :----------------- | :----------------- | | Total Revenues | 541.5 | 75.3 | - | | Net Income / (Loss) | 53.4 | 7.3 | (266.2) | | Cash & Cash Equivalents | 1,035.9 | 144.1 | 317 | Strategic Business Shift and Focus The company successfully shifted its strategy, exiting intelligent chips and services to focus entirely on central processing algorithm services, which now comprise 100% of revenues - Strategic shift away from the intelligent chips and services segment[1] - Central processing algorithm services accounted for 100% of revenues in 2024[1] Business Operations and Future Strategy MicroAlgo's operations center on bespoke central processing algorithm services, supported by significant R&D investment and strategic market expansion initiatives Central Processing Algorithm Services MicroAlgo's core business provides comprehensive, bespoke central processing algorithm solutions, integrating with customer needs across industries like internet advertising and online gaming - Provides comprehensive solutions by integrating central processing algorithms with software or hardware[5] - Services encompass algorithm optimization, accelerating computing power, lightweight data processing, and data intelligence services[5] - Capitalizing on demand in industries such as internet advertising and online gaming[3] Research & Development and Market Expansion The company demonstrates a strong commitment to innovation through substantial R&D investment and strategic initiatives for market expansion and customer diversification R&D Investment | Metric | 2024 (RMB million) | 2024 (USD million) | | :---------------- | :----------------- | :----------------- | | R&D Investment | 111.7 | 15.5 | - Strategic initiatives include expanding application fields and diversifying the customer base[3] CEO's Outlook and Future Strategy CEO Min Shu outlined future plans for continued R&D investment, market expansion, and strategic opportunities to solidify industry leadership and drive shareholder value - Commitment to innovation and providing cutting-edge solutions[4] - Future plans include continued investment in research and development, expanding market reach, and pursuing strategic opportunities[4] - Aims to solidify its position as a leader in the data intelligence processing industry and drive sustainable growth[4] Company Information and Disclosures This section provides essential company information, including its business focus, disclaimers regarding forward-looking statements, and investor contact details About MicroAlgo Inc. MicroAlgo Inc., a Cayman Islands exempted company, specializes in developing and applying bespoke central processing algorithms to achieve diverse customer technical and operational goals - MicroAlgo Inc. is a Cayman Islands exempted company dedicated to the development and application of bespoke central processing algorithms[5] - Helps customers increase customer numbers, improve end-user satisfaction, achieve direct cost savings, reduce power consumption, and achieve technical goals[5] Safe Harbor / Forward-Looking Statements This section disclaims forward-looking statements, noting their inherent risks and the company's limited obligation to update them unless legally required - The press release contains statements that may constitute "forward-looking statements" subject to numerous conditions and risks[6] - MicroAlgo undertakes no obligation to update these statements for revisions or changes after the date of release, except as required by law[7] - Risk factors are set forth in MicroAlgo's periodic reports on Forms 20-F and 6-K filed with the SEC[6] Investor Relations Contact Investor Relations contact information for MicroAlgo Inc. is provided for all inquiries - Investor Relations contact email: ir@microalgor.com[8]