🧾 What This Document Is

This is a 6-K filing from MicroAlgo, which foreign companies use to report major events to the SEC. This specific filing is an earnings release for their full year 2025. Think of it as the company's official, detailed announcement of how much money they made and lost.

👉 Why it matters: It’s the first official word on their yearly performance. Investors read these to see if the company is growing, profitable, and efficient.

🏢 What The Company Does

In simple terms, MicroAlgo is a software and technology services company. They specialize in creating custom ("bespoke") algorithms—essentially, specialized computer instructions—that make processing faster and more efficient.

They help clients, primarily in internet advertising, do things like:

• Get more customers
• Save on computing costs
• Reduce power consumption

They integrate these algorithms into a customer's existing software or hardware, acting as a performance booster.

💰 Financial Highlights: A Year of Growth

The numbers show a very strong 2025 compared to 2024.

Net Profit & Earnings Per Share (EPS)

• Net Profit: RMB 127.56 million (USD 18.15 million). This is a 143.5% increase from last year!
• Diluted EPS: RMB 14.87 (USD 2.12). This is a 272.7% jump from RMB 3.99 in 2024. 👉 This means the company became much more profitable, and each share owned became significantly more valuable.

Revenue & Margins

• Operating Revenue: RMB 422.05 million (USD 60.05 million).
• Gross Profit: RMB 108.82 million (USD 15.48 million).
• Gross Margin: 25.8%. This is the percentage of revenue left after paying for the direct costs of providing their service.

Shareholders' Equity

• This is the net value of the company belonging to shareholders. It more than doubled, reaching RMB 2,321.80 million (USD 330.33 million). 👉 A doubling of equity signals a massive strengthening of the company's financial foundation.

⚙️ Operational Efficiency: Doing More With Less

A big story here is cost control. While revenue grew, the company managed its expenses much better.

• Operating Expenses fell 35.3% year-over-year.
• Why? They finished some major algorithm development projects and implemented strict cost-saving measures.
• Result: Operating Profit hit RMB 22.38 million (USD 3.18 million), up 11.1%. 👉 This shows management is focused not just on growth, but on profitable, efficient growth.

💬 Management's Take: What the CEO Said

Min Shu, the CEO, framed 2025 as a breakout year. Key points from their quote:

• Achieved "strong growth in net profit."
• Maintained "stable cash flow and ample liquidity."
• Believes the company has a "solid financial foundation" and is ready for "sustainable growth." 👉 Leadership is expressing confidence that this performance isn't a one-off, but a base for the future.

🏢 Company Background & Context

MicroAlgo is incorporated in the Cayman Islands but operates out of Shenzhen, China. It's a newer, high-growth tech firm focused on a niche but critical area: optimizing computing power through software. Their client base in internet advertising is a sector where performance and cost-efficiency are king.

🔮 What's Next & What To Watch

The filing points investors to the full annual report (Form 20-F) for all the audited details. The forward-looking disclaimer hints they are focused on continuing their current strategy.

Key things for investors to monitor next:

1. Sustainability: Can they maintain this growth and efficiency into 2026?
2. Client Expansion: Will they successfully grow beyond their current internet advertising customers?
3. Market Position: How do they stack up against competitors in the broader tech and AI optimization space?

⚖️ Big Picture: Strengths & Risks

👍 Strengths:

• Explosive profit growth (143.5% net profit increase).
• Drastic improvement in cost management.
• Very strong balance sheet with doubled shareholder equity.

⚠️ Risks & Considerations:

• Reliance on the internet advertising sector.
• Being a smaller, niche player in the vast tech industry.
• Future results are never guaranteed, despite strong past performance.

🧠 The Analogy

Think of MicroAlgo like a brilliant student who finally got organized. Previously, they were smart but spent too much (high expenses). In 2025, they not only maintained their good grades (revenue) but also got a tutor and a planner (cost controls), leading to top-of-the-class report cards (profits) and a huge boost in their academic reputation (shareholders' equity).

📇 Key Contacts & People

• Company: MicroAlgo Inc.
• Investor Relations Email: [email protected]
• CEO: Min Shu

🧩 Final Takeaway

MicroAlgo delivered a phenomenal 2025, transforming profitability through a powerful mix of revenue growth and sharp cost discipline. The key question now is whether this operational turnaround marks the start of a new, sustainable growth chapter.