Hong Kong - Recently, TickerWin, the leading market research firm, has released a research report "The Internet Advertising Industry Grew at a Compound Annual Growth Rate of 8.4%, VIYI's SPAC Announced Merger with Venus". On June 10, 2021, 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.

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.

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, thereby helping them to 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 customers through bespoke central processing algorithms serves as a driving force for VIYI's long-term development.

Currently, VIYI is focused on developing and delivering central processing algorithm solutions to customers engaged in internet advertisement and gaming, and intelligent chips. Moreover, VIYI's customer base is rapidly growing due to a general demand for more efficient data processing in various industries driven by the growing internet population and prevalence of AI. According to the CIC Report, revenue of central processing algorithm services derived from internet advertisement and online gaming alone grew 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.

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.

Generally, [for customers in the field of internet advertisement, like internet advertising integration agencies, VIYI's central processing algorithm solutions helps them engage in more efficient data processing and management, which culminates in more effective programmed advertising and dynamic content optimization with the goal to improve consumer conversion rate, which means the rate at which individuals who have seen an advertisement turn into a user or purchaser of the service or items contemplated by the advertisement.

VIYI's proprietary central processing algorithm solutions improve upon the processes by which VIYI's customers are able to make one of their most crucial business decisions — the effective placement of advertisements. In sum, VIYI's customers provide advertisement materials in the form of 3D models or images, which VIYI processes in its back servers into more detailed data such as color key and fusion image; VIYI then purchases advertisement placement opportunities from ad traffic wholesalers and begins analyzing multimedia sources hosted on such traffic wholesalers with VIYI's image recognition software to extract scenario data from such videos to determine data points such as the location, time, space and other useful information. At the same time, VIYI is also processing internet users' data to achieve effective and precise placement of advertisements.

The diagram below illustrates the key steps of providing solutions to VIYI's digital marketing customers:

VIYI first obtains advertisement placement opportunities from internet traffic wholesalers. VIYI then uses its image recognition software to perform scenario-based classification of such videos to determine their location, time, space, and other relevant information to identify the most appropriate places to insert VIYI's customers' advertisements. With such data, VIYI establishes dynamic information databases in relation to these multimedia sources with technology such as Relational Database Service (RDS) to be further processed at VIYI's disposal. At the same time, VIYI's back servers are communicating with these traffic wholesaler's servers to collect user behavioral data, which VIYI then processes with its crowd-based socio-cognitive systems (SCS) for the purpose of effectively placing VIYI's customer's advertisement through a process of dynamic content optimization (DCO), with the aim of improving VIYI's customers' consumer conversion rate.

In sum, VIYI provides effective advertising solutions for digital marketers by optimizing advertising content and precisely matching content with suitable consumers by processing a massive amount of data through efficient automation. Eligible consumers are selected in accordance with their demographics and personal preferences, which VIYI's central processing algorithm service is able to analyze for the purpose of maximizing the internet advertisement effect.

VIYI ensures high-quality engineering architecture for VIYI's proprietary central processing algorithms, which means VIYI's services are being provided at low latencies while being highly scalable. VIYI is capable of powerful real-time transcoding with stable, smooth, and low latency, which provides VIYI's customers valuable insights into consumer behavior.

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.

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.

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