On April 7th, Chinese AI giant iFlytek released its brief financial results for 2020 and financial report for Q1 2021. For the whole year, iFlytek’s revenue totaled RMB13.025 billion, compared with RMB10.08 billion in 2019, a year-on-year increase of 29.23%; net profit was RMB1.06 billion, a year-on-year increase of 66.48%. In the first quarter of 2021, iFlytek has turned losses into profits, with an estimated profit of RMB125 million to 145 million.
The increase was driven by the development of the artificial intelligence industry, and the company’s “basic science and technology” strategic layout has empowered the improvement in profitability.
Analysts from Huaan Securities believed that iFlytek’s rapid revenue growth was mainly due to that its 2G2B2C business model has been working for the education industry. Plus, its smart education solution achieves large-scale commercial use and is expected to be replicated in other tracks such as medical.