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MicroAlgo (MLGO) - 2024 Q2 - Quarterly Report
MLGOMicroAlgo (MLGO)2024-09-25 10:03

Financial Performance - Total operating revenues for the six months ending June 30, 2024, reached RMB 290,441,871, an increase from RMB 263,642,156 for the same period in 2023, representing a growth of approximately 10.5%[6] - Gross profit for the six months ending June 30, 2024, was RMB 87,480,980, compared to RMB 80,546,972 for the same period in 2023, indicating a gross profit margin improvement[6] - The net income attributable to MicroAlgo Inc. for the six months ending June 30, 2024, was RMB 16,259,664, a significant recovery from a net loss of RMB 37,073,643 in the same period of 2023[6] - The company reported a comprehensive income of RMB 24,268,763 for the six months ending June 30, 2024, compared to a comprehensive loss of RMB 33,493,252 for the same period in 2023[6] - The company achieved a basic earnings per share of RMB 1.55 for the six months ending June 30, 2024, compared to a loss per share of RMB 8.45 in the same period of 2023[7] - The net loss for the six months ending June 30, 2024, was RMB 22,176,601, compared to a net loss of RMB 42,010,860 for the same period in 2023[13] - Total revenues for the Company increased from RMB 263,642,156 in June 30, 2023 to RMB 290,441,871 in June 30, 2024, representing a growth of approximately 10.5%[69] - The gross profit for the six months ended June 30, 2024, was RMB 87,480,980, compared to RMB 80,546,972 for the same period in 2023, indicating an increase of about 8.5%[156] Assets and Liabilities - Total current assets increased to RMB 764,871,520 as of June 30, 2024, compared to RMB 408,287,084 as of December 31, 2023, marking a growth of approximately 87.2%[1] - Total liabilities as of June 30, 2024, were RMB 215,613,714, up from RMB 85,315,757 as of December 31, 2023, indicating a rise of approximately 153.1%[1] - Cash and cash equivalents increased to RMB 433,416,702 as of June 30, 2024, from RMB 317,212,066 as of December 31, 2023, representing a growth of approximately 36.7%[1] - As of June 30, 2024, the total shareholders' equity amounted to RMB 551,172,525, an increase from RMB 325,204,502 as of December 31, 2023[10] - As of June 30, 2024, total assets increased to RMB 766,786,239 from RMB 410,520,259 as of December 31, 2023, showing a growth of approximately 86.7%[157] Research and Development - Research and development expenses decreased to RMB 75,820,156 for the six months ending June 30, 2024, down from RMB 92,239,461 in the same period of 2023, reflecting a reduction of approximately 17.7%[6] - Research and development expenses for the six months ended June 30, 2024 were RMB 730,287 (USD 102,785), up from RMB 356,265 in the same period of 2023[86] Revenue Streams - Revenue from central processing advertising algorithm services was RMB 253,706,643 in June 30, 2023, and increased to RMB 290,441,871 in June 30, 2024, indicating a growth of about 14.5%[69] - Revenues from Mainland PRC for the six months ended June 30, 2024, were RMB 239,512,194, a decrease from RMB 253,706,643 in the same period of 2023, representing a decline of about 5.6%[157] - Hong Kong revenues for the six months ended June 30, 2024, were RMB 31,038,985, which is a new revenue stream compared to no revenues in the same period of 2023[157] - International revenues rose from RMB 9,935,513 in June 30, 2023 to RMB 19,890,692 in June 30, 2024, reflecting an increase of about 100%[71] Shareholder Information - The weighted average number of ordinary shares increased to 10,486,035 for the six months ending June 30, 2024, from 4,385,671 in the same period of 2023, reflecting a significant increase due to share consolidation[7] - The company had a total of 17,359,442 ordinary shares outstanding as of June 30, 2024[10] - As of June 30, 2024, the Company had 17,359,442 ordinary shares issued and outstanding with a par value of USD 0.01 each following a share consolidation[139] Investments and Financing - The company issued shares worth RMB 129,082,990 during the six months ending June 30, 2024, as part of its financing activities[14] - The company issued 30,000,000inunsecuredconvertiblepromissorynotesonAugust2,2024,tocertaininvestors,indicatingastrategytoraisecapital[159]−ThecompanyinvestedatotalofRMB28,115,954(USD3,945,102)inshort−terminvestmentsduringthesixmonthsendedJune30,2024[109]TaxandCompliance−ThecompanyreportedcurrentincometaxexpensesofRMB(35,872)forthesixmonthsendedJune30,2024,comparedtoRMB(52,912)forthesameperiodin2023[125]−Thecompany′stotaltaxespayableasofJune30,2024,amountedtoRMB669,839(USD93,988),whichincludesVAT,incometaxes,andothertaxes[128]−ThecompanyhasnotmadeanyprovisionsforHongKongprofittaxastherewerenoassessableprofitsderivedfromorearnedinHongKongsinceinception[121]LegalandRegulatory−ThecompanyreceivedanoticefromNasdaqregardingtheclosingbidpricebeingbelowtheminimumrequirementof30,000,000 in unsecured convertible promissory notes on August 2, 2024, to certain investors, indicating a strategy to raise capital[159] - The company invested a total of RMB 28,115,954 (USD 3,945,102) in short-term investments during the six months ended June 30, 2024[109] Tax and Compliance - The company reported current income tax expenses of RMB (35,872) for the six months ended June 30, 2024, compared to RMB (52,912) for the same period in 2023[125] - The company's total taxes payable as of June 30, 2024, amounted to RMB 669,839 (USD 93,988), which includes VAT, income taxes, and other taxes[128] - The company has not made any provisions for Hong Kong profit tax as there were no assessable profits derived from or earned in Hong Kong since inception[121] Legal and Regulatory - The company received a notice from Nasdaq regarding the closing bid price being below the minimum requirement of 1.00 per share, which may impact future trading[160] - The company has not recorded material liabilities related to legal proceedings as of December 31, 2023, and June 30, 2024[153]