iFlytek 2021 Revenue Jumps 40.61%, Net Profit Increases 14.13%

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iFlytek’s total revenue in 2021 reached CNY 18.314 billion (USD 2.876 billion), an increase of 40.61% year-on-year, and net profit is CNY 1.556 billion, up 14.13 % compared to the same period of the previous year. About 50% of the total turnover came from the “core business”.

iFlytek (Chinese: 科大讯飞), a partially state-owned Chinese artificial intelligence company, issued a statement in response to investor concerns on April 11.

According to the statement, titled “Announcement on voluntary disclosure of information on operating conditions and active response to general investor concerns,” the company’s total revenue in 2021 reached CNY 18.314 billion (USD 2.876 billion). ), or 40.61% more than the previous year.

Its net income rose 14.13% to 1.556 billion yuan. Fifty percent of the company’s total turnover comes from its so-called “Base Business”.

iFlytek increased its R&D expenditure by CNY 628 million in 2021, and total R&D expenditure reached CNY 2.839 billion, a year-on-year increase of 28.43%. During the corresponding period, the company added 3,301 employees.

In February 2021, iFlytek announced the goals for the 14th Five-Year Plan (2021-2025), China’s national economic and social development plan. The goal includes one billion users, CNY 100 billion in revenue, and an ecosystem worth CNY 1 trillion.

iFlytek’s goal is to implement a two-pronged strategy, consisting of “Base Business” and “Systematic Innovation”. From iFlytek’s explanation, “Base Business” refers to companies that can genuinely create long-term value in various industries. Currently, iFlytek covers education, smart city, consumer, medical, automotive, and telecom carrier sectors.

According to a company announcement, Base Business has four valuation standards which are good user dependence, long-term operating ability, sustainable growth potential, and industry demonstration value.

In February, Liu Qingfeng, Founder and Chairman of iFlytek, predicted that iFlytek’s “Base Business” would become profitable in 2022, with an expected growth rate of over 60%.

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