Interim Report 2024 of iFLYTEK Co., Ltd.(English Simplified Version)
iFLYTEK Co., Ltd.
Interim Report 2024
(English Simplified Version)
September 2024
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Interim Report 2024 of iFLYTEK Co., Ltd.(English Simplified Version)
Section I Important Notice, Contents and Definitions
The Board of Directors, Supervisory Board, and all senior management
members of iFLYTEK Co., Ltd. (the "Company") collectively guarantee the
truthfulness, accuracy, and completeness of the information in this Interim
Report, affirming the absence of any false records, misleading statements, or
significant omissions, and accept full joint and severable legal accountability for
its contents.
Liu Qingfeng, the Company's Chairman; Wang Ming, the person
responsible for accounting; and Zhao Linyue, the head of the accounting
department (accounting supervisor), hereby declare that the financial
statements in this Interim Report are authentic, accurate, and complete.
All directors were present at the Board of Directors meeting that reviewed
this Interim Report.
In "Section III: Management Discussion and Analysis," under "X.
Company's Risks and Countermeasures," the Company analyzes potential
risks it faces along with corresponding countermeasures, and invites investors
to pay attention to these details.
The Company plans not to distribute cash dividends, issue bonus shares, or
convert capital reserves into share capital.
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Interim Report 2024 of iFLYTEK Co., Ltd.(English Simplified Version)
Contents
Section I Important Notice, Contents and Definitions ............................................................................................................................. 2
Section II Company Information and Financial Highlights ..................................................................................................................... 7
Section III Management Discussions and Analysis ............................................................................................................................... 10
Section IV Corporate Governance ......................................................................................................................................................... 42
Section V Environmental and Social Responsibility ............................................................................................................................. 45
Section VI Significant Events ................................................................................................................................................................ 54
Section VII Changes in Shares and Shareholder Information ................................................................................................................ 66
Section VIII Preferred Shares ................................................................................................................................................................ 71
Section IX Bonds................................................................................................................................................................................... 72
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Interim Report 2024 of iFLYTEK Co., Ltd.(English Simplified Version)
List of Documents for Inspection
1. Financial statements signed and sealed by the legal representative, the person responsible for
accounting, and the head of the accounting department.
2. Originals of all company documents and announcements publicly disclosed in the newspapers
designated by the China Securities Regulatory Commission (CSRC) during the reporting
period; and
3. The original Interim Report 2024 signed by the Chairman.
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Interim Report 2024 of iFLYTEK Co., Ltd.(English Simplified Version)
Definitions
Term refers to Definition
Artificial Intelligence (AI) is an emerging field of technical science that
involves the research and development of theories, methods, technologies, and
application systems aimed at simulating, extending, and enhancing human
intelligence. AI refers to artificial programs or systems capable of perceiving,
recognizing, deciding, and acting like humans. Perceptual intelligence enables
Artificial
refers to machines to "hear and speak, see and recognize," primarily involving
Intelligence (AI)
technologies such as speech synthesis, speech recognition, image recognition,
and multilingual voice processing. Cognitive intelligence allows machines to
"understand and think," encompassing services such as educational evaluations,
medical diagnostic aids, judicial assistance in courtrooms, intelligent customer
support, and machine translation.
Known as iFLYTEK Spark, this is a new-generation cognitive large language
model (LLM) launched by iFLYTEK. It possesses cross-domain knowledge and
language understanding capabilities, capable of understanding and executing
tasks based on natural conversational interactions. It continuously evolves from
massive data and extensive knowledge to achieve a full-process closed loop
from proposing and planning to solving problems. iFLYTEK Spark has seven
iFLYTEK Spark refers to
core capabilities: text generation, language understanding, knowledge-based
Q&A, logical reasoning, mathematical ability, coding ability, and multimodal
capacity. iFLYTEK Spark is empowering various industries, accelerating
application implementation, collaborating with leading companies in multiple
fields to set benchmarks for LLM applications, and co-creating the Spark
ecosystem with individual users, developers, and corporate institutions.
This technology enables machines to "listen and speak" like humans. It
encompasses technologies such as speech recognition (automatically converting
speech to text), speech synthesis (automatically converting text to speech),
Intelligent Speech refers to voiceprint recognition (identifying the speaker), and language recognition
(identifying languages and dialects). These technologies are part of perceptual
intelligence within artificial intelligence and serve as the core supporting
technologies for the transformation of human-machine voice interaction.
Speech Synthesis refers to This technology automatically converts text to speech using machines.
Speech This technology automatically converts speech signals into text and related
refers to
Recognition information using machines.
Speech Evaluation
This technology enables machines to automatically assess pronunciation levels,
(Spoken Language refers to
detect errors, and provide correction instructions.
Evaluation)
This technology uses computers to process, analyze, and understand images to
Image Recognition refers to
recognize objects and patterns across various models.
This is the process of using a computer to translate text from one natural
Machine
refers to language (the source language) to another (the target language). It is also known
Translation
as automatic translation.
An important branch of research in computer science and artificial intelligence,
it focuses on the theories and practices that enable effective communication
between humans and computers using natural languages. Its ultimate goal is to
Natural Language
refers to enable computers to understand and use natural languages, such as Chinese and
Understanding
English, to facilitate natural language communication between humans and
machines. This aims to replace part of human mental labor, including
information retrieval, answering questions, excerpting documents, compiling
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Interim Report 2024 of iFLYTEK Co., Ltd.(English Simplified Version)
data, and handling all other tasks related to natural language.
Launched in 2022, this ambitious plan sets a strategic roadmap for advancing
the company’s technological and product development over the medium to long
term. This visionary plan aims to develop a complex intelligent system based on
cognitive intelligence that enhances human-machine collaboration and self-
evolution. This plan focuses on creating machines that surpass human
perceptual abilities, deeply understand specialized domain knowledge, and
“Super Brain
refers to continuously evolve autonomously. These machines are envisioned to fully
2030” Plan
perceive humans and their environments, possess emotional intelligence, and
demonstrate flexible mobility and multi-dimensional expression. Aimed at
integrating advanced family companion robots into numerous households, the
core objective of this plan is to leverage artificial intelligence to address
emerging social challenges and meet essential future demands, positioning
iFLYTEK as a leader in global AI innovation.
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Interim Report 2024 of iFLYTEK Co., Ltd.(English Simplified Version)
Section II Company Information and Financial Highlights
I. Company Information
Stock Name iFLYTEK Stock Code 002230
Stock exchange Shenzhen Stock Exchange
Company Name in Chinese 科大讯飞股份有限公司
Name Abbreviation in Chinese
科大讯飞
(if any)
Company Name in English (if
iFLYTEK CO.,LTD
any)
Name Abbreviation in English
iFLYTEK
(if any)
Legal Representative of the
Liu Qingfeng
Company
II. Contact Information
Secretary of the Board Representative
Name Jiang Tao Chang Xiaoming
666 West Wangjiang Road, High-tech 666 West Wangjiang Road,High-tech
Contact address
Development Zone, Hefei Development Zone, Hefei
Company Hotline: 4000-199199 Company Hotline: 4000-199199
Telephone
Investor hotline: 0551-67892230 Investor hotline: 0551-67892230
Fax 0551-65331802 0551-65331802
E-mail taojiang@iflytek.com xmchang@iflytek.com
III. Other Relevant Information
1. Change to contact information
Is there change to the Company's registered address, office address and postal code, company website, email
address during this reporting period?
□ Yes √ No
No change has occurred to the Company's registered address, office address and postal code, company website,
email address, etc., during the reporting period. For details, please refer to the Company’s 2023 Annual Report.
2. Change to outlets and websites for disclosure and the location where copies of this Interim
Report is kept
Is there any change to the outlets and websites for disclosure and the location where copies of this Interim Report
is kept during this reporting period?
□ Yes √ No
The websites of the stock exchange and media outlets where the Company discloses its Interim Report, as well as
the location where copies of this report are kept, have not changed during this reporting period. For details,
please refer to the Company’s 2023 Annual Report.
3. Change to other relevant information
Is there any change to other relevant information during this reporting period?
□ Yes √ No
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Interim Report 2024 of iFLYTEK Co., Ltd.(English Simplified Version)
IV. Financial Highlights
Does the Company need to retroactive adjust or restate accounting data for previous years?
□ Yes √ No
Item H1 2024 H1 2023 Change (increase/decrease)
Operating Revenue (RMB yuan) 9,324,545,041.14 7,841,552,405.17 18.91%
Net profit attributable to the Company's
-400,665,617.21 73,571,996.11 -644.59%
shareholders (RMB yuan)
Net profit excluding non-recurring profits
and losses attributable to the Company's -483,098,935.79 -304,109,160.61 -58.86%
shareholders (RMB yuan)
Net cash flows from operating activities
-1,535,556,254.51 -1,528,741,829.11 -0.45%
(RMB yuan)
Basic earnings per share (RMB yuan) -0.1736 0.0318 -645.91%
Diluted earnings per share (RMB yuan) -0.1729 0.0318 -643.71%
Weighted average return on net assets (%) -2.36% 0.44% -2.80%
Item End of H1 2024 End of 2023 Change (increase/decrease)
Total assets (RMB yuan) 38,256,440,253.38 37,831,122,978.15 1.12%
Net assets attributable to the Company's
16,656,438,953.58 17,032,284,511.72 -2.21%
shareholders (RMB yuan)
Note: For more reasons behind the changes in net profit attributable to the Company's shareholders and net profit
excluding non-recurring profits and losses attributable to the Company's shareholders, please refer to "III.
Analysis of Core Business Activities: 1. Overview" under Section IIII below.
V. Differences in Accounting Data under Chinese and International Accounting Standards
1. Differences in Net Profit and Net Assets in Financial Reports Prepared Under IFRS and
CAS
□ Applicable √ Not applicable
There were no differences in net profit and net assets between financial reports prepared under the International
Financial Reporting Standards (IFRS) and the Chinese Accounting Standards (CAS) during this reporting period.
2. Differences in Net Profit and Net Assets in Financial Reports Prepared Under Overseas
Accounting Standards and CAS
□ Applicable √ Not applicable
The company did not experience any differences in net profit and net assets between financial reports prepared
under overseas accounting standards and the Chinese Accounting Standards (CAS) during this reporting period.
VI. Non-recurring Profits and Losses: Items and Amounts
□ Applicable √ Not applicable
In RMB yuan
Item Amount
Gain or loss on disposal of non-current assets (including the write-off of provisions
-1,382,878.19
for impairment losses)
Government grants recorded in current profits or losses (excluding those that are
closely related to the company’s normal operations, comply with national policies,
62,849,478.72
and are consistently provided in a predetermined standard amount or quota that have
a lasting impact on the company’s profits and losses)
Gains or losses from changes in the fair value of financial assets and financial
liabilities held for trading and derivatives, and investment income from the disposal 96,777,872.51
of these assets and liabilities, except for effective hedging related to the Company’s
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Interim Report 2024 of iFLYTEK Co., Ltd.(English Simplified Version)
normal operations
Gains or losses on entrusting others with investment or asset management 318,402.59
Other non-operating incomes and expenses, except for the above items -64,580,341.20
Less: Income tax impact 12,177,641.51
Impact on non-controlling interests (after tax) -628,425.66
Total 82,433,318.58
Clarification of other items of profits and losses qualified as non-recurring profits and losses
□ Applicable √ Not applicable
There are no other profits and losses that meet the definition of non-recurring profits and losses.
Clarification of circumstances where non-recurring profits and losses, as listed in Explanatory Announcement No.
1 on Information Disclosure for Publicly Traded Companies — Non-Recurring Profits and Losses, are
categorized as recurring profits and losses
□ Applicable √ Not applicable
The Company does not have any circumstances where non-recurring profits and losses, as listed in Explanatory
Announcement No. 1 on Information Disclosure for Publicly Traded Companies — Non-Recurring Profits and
Losses, are categorized as recurring profits and losses.
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Interim Report 2024 of iFLYTEK Co., Ltd.(English Simplified Version)
Section III Management Discussions and Analysis
I. Business Highlights During This Reporting Period
1.Industry Overview
The Company complies with the disclosure requirements for the software and information technology
services industry as stipulated in the Guidelines of Self-Regulation for Companies Traded on Shenzhen Stock
Exchange No. 3: Industry Information Disclosure.
Since 2023, the emergence of cognitive large language models like ChatGPT have demonstrated significant
advancements towards general artificial intelligence, marking a major technological leap in AI development.
This has triggered a global surge in large language models, attracting major tech companies, significant
governmental interest, and widespread industry adoption, which collectively highlight the vast potential of these
technologies to initiate a new growth era. In April 2023, Goldman Sachs forecasted that generative AI, driven by
these large language models, would increase global GDP by 7% over the next decade, amounting to nearly 7
trillion US dollars. Further emphasizing this trend, Gartner's October 2023 report predicted that over 80% of
businesses will deploy generative AI by 2026.
Continuous breakthroughs in AI development and its vast potential for growth are providing strong
momentum across the entire industry chain, transforming AI from a beneficial supplement to a core driver of
digital and intelligent industry transformation. This shift moves the focus from “+AI” to “AI+”. As a pivotal
force in the latest industrial revolution, AI is rapidly becoming as fundamental as water and electricity,
empowering diverse sectors and promoting societal progress and development.
In terms of industry policy, artificial intelligence has been included in China’s National Program for
Medium and Long-term Science and Technology Development (2021-2035), which serves as a prominent
example of the robust government support for the sustained development of the AI industry.
January 31, 2024: During the 11th collective study session of the 20th Politburo of the CPC Central
Committee, General Secretary Xi Jinping stressed the need “to strengthen scientific and technological
innovation, especially original and disruptive innovations, accelerate the efforts to boost self-reliance
and strength in science and technology, and do a good job in making breakthroughs in core technologies
in key fields, so that original and disruptive scientific and technological innovations can emerge one
after another, and foster more momentum for the development of new productive forces."
March 2024: The government work report delivered to the National People's Congress further proposed
to "step up R&D and application of big data and AI” and to launch its AI+ initiative, underscoring the
critical role of AI in promoting economic and social development.
June 2024: The Ministry of Industry and Information Technology, the Cyberspace Administration of
China, the National Development and Reform Commission, and the National Standards Committee
jointly issued the Guidelines for Comprehensive, Standard and Systematic Development of the Artificial
Intelligence Industry (2024)," demonstrating a strong commitment to the systematic planning of AI
development efforts and accelerating the establishment of a standards system that aligns with the high-
quality development goals of the AI industry and empowerment for “AI+”.
July 4, 2024: Premier Li Qiang of the State Council, at the 2024 World AI Conference and High-level
Meeting on Global AI Governance, announced that China will work to achieve the innovative
development of artificial intelligence.
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Interim Report 2024 of iFLYTEK Co., Ltd.(English Simplified Version)
July 2024: The Third Plenary Session of the 20th CPC Central Committee emphasized "boosting self-
reliance and strength in science and technology," "fully leveraging the strengths of the new system for
mobilizing resources nationwide to improve China’s performance innovation across the board,"
"developing new productive forces characterized by high technology, high efficiency, and high quality,"
"updating policies and governance systems that promote the development of strategic industries like
next-generation IT and AI," and "recognizing the principal role of businesses in technological
innovation, establishing mechanisms to nurture and grow leading technology companies," reflecting the
CPC Central Committee's resolve to support technological innovation.
The gradual introduction and implementation of supportive industry policies will fuel the advancement of
China's AI technology and the accelerated development of the industry, ultimately supporting the high-quality
development of China's economy. A favorable policy and macro environment is emerging for enterprises to drive
core technology innovation and the scaled industrial implementation of artificial intelligence.
2.Business Overview
Since its inauguration, iFLYTEK has adhered to a "reaching for the sky, rooted on the ground" development
strategy. "Reaching for the sky" refers to maintaining a leading international position in core technologies, while
"rooted on the ground" involves the scaled industrial application of technological achievements. The Company
continues to focus on core underlying AI technologies such as intelligent speech, natural language understanding,
multimodal intelligence, and cognitive intelligence, managing to always remain at the cutting edge of the world.
It actively promotes the research and development of AI products and their application in various industries,
committed to making machines that can listen, speak, understand and think, and creating a better world with AI.
iFLYTEK launched its advanced large language model, known as “iFLYTEK Spark”, on May 6, 2023,
building on its long-term development of foundational core technologies. This model is undergoing continuous,
rapid enhancements and iterations. Through rigorous, systematic, and authoritative evaluations, iFLYTEK Spark
has established itself as a leader among testable large language models developed by Chinese companies. It now
serves as the foundational platform for the Company's AI industrialization, playing an increasingly crucial role
across various business sectors and in the operation of its open platform.
iFLYTEK has adopted a two-prong “platform + business” approach, positioning itself as a leader in China’s
AI industry. Through the iFLYTEK Open Platform, one of the first national new-generation AI open innovation
platforms, the Company empowers developers with 708 AI capabilities and delivers comprehensive AI solutions.
This initiative is continuously broadening the AI industry ecosystem, with a particular focus on key sectors such
as education, healthcare, smart cities, telecommunications, automotive, and finance. iFLYTEK sets practical,
scalable, and verifiable benchmarks for AI applications, establishing sustainable “strategic bases”. Additionally,
the Company has secured a prominent market position and reliable revenue streams through consumer products,
including AI learning devices, smart notebooks, recorders, translators, hearing aids, and iFLYREC .
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Interim Report 2024 of iFLYTEK Co., Ltd.(English Simplified Version)
Figure 1: Overview of iFLYTEK’S key businesses
3.Major Business Developments During this Reporting Period
iFLYTEK’s Large Language Model:iFLYTEK Spark
As China's leading artificial intelligence company, iFLYTEK has built the country's State Key Laboratory
for Cognitive Intelligence and the National Engineering Research Center of Speech and Language Information
Processing. The Company has exceptional expertise in deep learning and natural language processing.
Significant early technological breakthroughs include the first AI systems to pass China's National Practicing
Physician Qualification Examination and China Accreditation Test for Translators and Interpreters (CATTI) at
level II for Chinese-English interpreting, and machine reading comprehension capabilities that exceeded the
average human performance in the SQuAD 2.0 challenge.
Building on its long-term expertise and robust foundations in AI, iFLYTEK launched its large language
model, known as 'iFLYTEK Spark', on May 6, 2023, which continues to be upgraded iteratively. In numerous
rigorous, scientific, and authoritative third-party evaluations, iFLYTEK Spark consistently ranks first among
testable large language models developed by Chinese companies. For instance, according to an evaluation report
by the Xinhua Institute released in August 2023, iFLYTEK Spark topped the overall rankings with the highest
IQ and the strongest tool efficiency capability among Chinese large language models. Furthermore, a report by
the Development Research Center of the State Council in January 2024 stated that iFLYTEK Spark possesses the
best comprehensive capabilities among Chinese models and is internationally first-class.
Continual upgrades and iterations of iFLYTEK Spark: On January 30, 2024, iFLYTEK Spark V3.5, an open
model trained on China's first fully domestic TH/s computing platform Feixing-1, was released, surpassing
ChatGPT-4 Turbo in language understanding, mathematical abilities, and voice interaction capabilities,
possessing 96% of ChatGPT-4 Turbo’s code and 91% of GPT-4V’s multimodal understanding capabilities.
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Interim Report 2024 of iFLYTEK Co., Ltd.(English Simplified Version)
Additionally, iFLYTEK has released its first voice model using iFLYTEK Spark’s foundational capabilities,
surpassing OpenAI Whisper V3 across 37 languages in voice recognition and elevating the MOS score by 0.25
on average across 40 languages in voice synthesis, achieving a near-human synthesis MOS of 4.5 with 83%
human likeness.
On April 26, iFLYTEK released iFLYTEK Spark V3.5, which supports long texts, extended mixed media
content, and long voice inputs. This update introduced the iFLYTEK Spark image-text recognition model,
featuring multi-emotion hyper-realistic synthesis and single-sentence voice replication capabilities.
On June 27, iFLYTEK Spark V4.0 was released. iFLYTEK Spark V4.0 is the only fully autonomously
controlled, domestically powered (trained on China's first fully domestic TH/s computing platform Feixing-1)
open large model in China, and it matches up comprehensively with ChatGPT-4 Turbo. iFLYTEK Spark 4.0
excels in 8 out of the 12 mainstream test sets in Chinese and English, both domestic and international. iFLYTEK
Spark's voice model made further breakthroughs, possessing dialogue capabilities in 74 languages/dialects
without the need for switching, solving the challenges of voice recognition under strong interference, and
capable of voice transcription in challenging and complex circumstances.
Strengthening domestic computation foundations to ensure the sustainable development of AI in
China: iFLYTEK, listed on the US Entity List and successfully countering extreme pressures, has gradually
achieved full autonomy in core technology research and product development. The core capabilities developed
under these conditions have given iFLYTEK a first-mover advantage in developing autonomously controllable
large language models. In collaboration with Huawei, iFLYTEK is building computation foundations for general
AI in China, placing domestic large models on a platform of self-developed hardware and software, achieving
full autonomous control over the core technological infrastructure of these large models.
On October 24, 2023, iFLYTEK, in collaboration with Huawei, announced the official launch of Feixing-1,
China's first fully domestic trillion-parameter computing platform designed to support the training of large
language models. On January 30, 2024, iFLYTEK released its updated large language model, iFLYTEK Spark
V3.5, which is a hundred-billion-parameter model trained on the Feixing-1 platform. This model boasts
outstanding performance indicators within China, confirming the reliability of Feixing-1. Then, on June 27,
iFLYTEK launched SparkV4.0, also based on Feixing-1. This update enhanced seven core capabilities and
achieved parity with ChatGPT-4 Turbo, further demonstrating the effectiveness of this computational platform.
Empowering the iFLYTEK Open Platform, Accelerating AI Ecosystem Development: On its Open Platform,
the Company offers 708 AI capabilities and foundational capabilities of its large language model to
developers/teams, fostering an ecosystem with an API matrix and a comprehensive third-party plugin market. It
also engages in industry collaborations and empowerment initiatives with startups and universities. From January
30, 2024, when iFLYTEK Spark V3.5 was released, to June 30, 2024, the number of developers on the
iFLYTEK Open Platform grew from 5.98 million to 7.06 million. The platform also supports more than 400,000
overseas developers and 580,000 large model developers. For enterprises, the Company is enhancing industry
empowerment, developing innovative applications of iFLYTEK Spark together with over 360,000 corporate
clients, and has partnered with leading companies like Chery Automobile, Pacific Insurance, Bank of
Communications, National Energy Group, and China Mobile to create benchmarks in industry-specific large
model applications, accelerating industrial upgrades.
To accelerate the development of an original developer ecosystem, iFLYTEK launched the first open-source
large model, Spark-13B, on January 30, 2024. This model provides developers, universities, and businesses with
a comprehensive, independent, controllable, and free Spark optimization suite. It is not only highly optimized for
domestic computational resources but also delivers leading application performance in various scenarios. This
supports enhanced academic collaborations and industry explorations.
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Enabling diverse business applications: Since the official release of iFLYTEK Spark, it has achieved
significant industrial application results across various business areas of the Company, including education,
healthcare, consumer platforms, smart cities, and telecommunications.
1. Smart Education
In the field of education, guided by its commitment to "using artificial intelligence to aid education and
provide personalized instructions to realize dreams," iFLYTEK works to address major educational issues. By
deeply integrating AI technologies in educational and teaching scenarios, and leveraging its foundational large
model technologies, iFLYTEK provides targeted and convenient services to students, teachers, and education
administrators at all levels. This facilitates the accumulation and application of data in the teaching and learning
processes, helps reduce burdens and increase efficiency for teachers and students alike, and thus promotes
educational progress. Currently, iFLYTEK's smart education products are used in 32 provincial regions across
China as well as in overseas markets like Japan and Singapore.
iFLYTEK's smart education endeavors revolve around the goals of "reducing student homework burden
while improving learning quality; reducing exams while scientifically assessing learning effectiveness; and
promoting balanced education development while aligning with the goal of building a technologically advanced
nation." In line with national and regional strategies for achieving digital transformation in education and high-
quality educational development, iFLYTEK systematically constructs a business system tailored to customers on
three sides: G (government), B (business), and C (consumer): G-side business mainly focuses on regional
development, including the county/district level, offering comprehensive education solutions for local
educational administrators and customized solutions for individual school teachers and students; B-side
business primarily targets school infrastructure, offering smart blackboards, smart classrooms, big data-driven
targeted teaching assistance, English listening and speaking classes, digital homework, and innovative education
solutions; and C-side business primarily aims at parents as direct purchasers, offering products such as AI
learning devices, personalized learning guides, and after-school services.
In his report to the 20th National Congress of the Communist Party of China, General Secretary Xi Jinping
promised to “promote the digitalization of education and build a society and country of learning where lifelong
learning is pursued by all.” It was the first time that “digitalization of education” was included as a goal in an
official report delivered to the national congress of the CPC. In January 2024, Chinese Minister of Education
Huai Jinpeng stressed at the 2024 World Digital Education Conference that China “needs to place high
importance on the digitalization of education, treating it as a crucial breakthrough for pioneering new pathways
in educational development and shaping new advantages.” On May 24, Deputy Minister of Education Wu Yan
announced at the Digital China Summit that China would implement an action plan to advance the application of
large AI models in the education sector. This plan includes accelerating the development of an education-specific
large AI model, designed to harness AI's capabilities to enhance personalized learning experiences. This
initiative aims to achieve the long-standing goal of personalized education, adapting teaching methods and
materials to the needs and abilities of individual students. On July 19, Minister Huai Jinpeng stated at a press
conference held by the CPC Central Committee that China is committed to advancing the development of smart
campuses, deploying large AI models tailored for the education sector to enable mass personalized education and
foster innovative and personalized teaching methods, aiming to substantially enhance the quality of education to
meet the public's expectations. This initiative represents a strategic effort to integrate advanced technologies into
educational activities, thereby enhancing educational outcomes and experiences across the country. The
aforementioned policies have created a favorable environment for the seamless integration of information
technology and educational practices through advanced artificial intelligence applications. Furthermore, these
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Interim Report 2024 of iFLYTEK Co., Ltd.(English Simplified Version)
policies offer strong support for iFLYTEK’s deployment of comprehensive, scenario-based smart education
solutions.
1.1 Promotion of region-specific personalized education solutions
During the reporting period, iFLYTEK significantly expanded its personalized teaching solutions in five
regions: Fugu County in Shaanxi Yulin, Zhuji City in Zhejiang, Pingtan Comprehensive Pilot Zone in Fujian,
Jingzhou City in Hubei, and Changchun City in Jilin. These efforts supported the “Double Reduction” initiative
as part of China’s ongoing education reform, notably with a smart homework project in Xiaoshan District,
Zhejiang. Collaborating with the Hubei Provincial Department of Education, iFLYTEK helped establish a
provincial-level education data center, setting benchmarks and advancing the digital transformation and quality
development of education. To date, iFLYTEK’s personalized education solutions have been implemented in over
60 cities, districts, and counties, proving effective in reducing workload and increasing efficiency for teachers
and students alike. This scaled application has increased the efficacy of regional teaching management through
digital tools, with intelligent teaching assistants significantly easing teachers' grading and planning burdens.
Additionally, it has developed student-centered learning profiles, increased teaching effectiveness, tailored
instruction to individual learning needs, and shifted away from rote learning methods. These widespread
applications have markedly enhanced teaching quality in these regions.
In the same period, intelligent grading technology has been successfully applied in paper grading for college
entrance exams across 14 provinces and cities. In 2024, the application of this technology in paper grading
extended to cover college entrance exams in one additional province and 3 cities, along with the middle school
exams in 3 more prefecture-level cities. Now, it covers college entrance exams in 25 provincial regions and
middle school exams in 111 cities, enhancing the accuracy and efficiency of grading.
1.2 Enhancing product value in school scenarios
In the classroom, the “Three New” teaching reform is deepening with an extensive roll-out of personalized
and innovative teaching methods. In response, iFLYTEK has upgraded and integrated its previously separate and
independent smart classroom and smart window products into a unified, green, safe, and intelligent “classroom
product system”. This integration has led to the creation of a new brand of intelligent equipment that consolidates
high-quality teaching resources and tools across various scenarios. This comprehensive digital and intelligent
system is designed to better cater to the primary teaching environments, continuously enhancing the quality of
education and creating sustained value for users.
In the field of intelligent equipment, the launch of iFLYTEK Spark 4.0 has redefined classroom screens via
the Spark Smart Blackboard. This technology incorporates multi-modal understanding and recommendation,
fully natural interaction, virtual assistant learning, and intelligent recording and sharing, four key features that
transform traditional blackboards into AI teaching assistants. In the realm of lesson preparation and delivery, the
Spark Teacher Assistant has expanded its capabilities in subjects like mathematics, English, and Chinese,
introducing new real-time recording and classroom analysis tools that now serve nearly ten thousand teachers.
Data indicates a 56% increase in the efficiency of resource retrieval and presentation creation, with a satisfaction
rate exceeding 85%. Moreover, the latest generation of smart classrooms, which connect large screens to students’
mobile devices, enhances teaching efficiency and effectiveness through an integrated teaching and evaluation
system. This system supports the innovation of teaching methods and improves overall teaching quality.
Regarding schooling data services, in response to the ongoing implementation of the “Double Reduction”
policy, the increasing demands of exam management, and the broader context of digital education, iFLYTEK has
upgraded and integrated its digital teaching products, which were originally designed for independent use in
exams and homework support. This integration has resulted in the creation of a comprehensive and efficient
“schooling data service system”. This system extends across all school-related scenarios, both inside and outside
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of the school environment, benefiting a variety of educational roles including administrators, teachers, and
students. It delivers continual value by reducing workload and meeting the personalized educational needs of
students.
In the area of teaching management, iFLYTEK's “resource and supervision management” platform helps to
optimize the design and distribution of teaching resources for balance and efficiency. In examinations and
homework management, iFLYTEK's “precise exam and digital homework” system dramatically reduces the time
taken to design an exam paper from 2 hours to under 10 minutes. Additionally, the newly introduced iFLYTEK
Spark Smart Grader cuts down grading time for all subjects and question types from 90 minutes to just 5 minutes.
This system enables a teacher to scan, grade, and analyze an entire class's papers within 10 minutes, reducing the
workload significantly. It improves the adaptability of educational content by about 30%, delivering personalized
homework tailored to individual learning needs and reducing ineffective practices.
In the area of after-school service, empowered by iFLYTEK Spark, a course platform provides a wealth of
quality course resources and content for teachers and students, greatly reducing the burden of teachers in lesson
preparation. Additionally, the “Inquisitive Classroom” module, which integrates cognitive big model of
iFLYTEK Spark and digital virtual person technology, can respond instantly to every child's curiosity in class
and after class, effectively alleviating the contradiction between the limited knowledge reserve of front-line
teachers and the infinite curiosity of students, encouraging students to dare to ask questions, be good at asking
questions. The “Inquisitive Classroom” boasts an effective answer rate of over 98%. To date, after-school
services have covered over 13,000 schools in more than 460 districts and counties nationwide, gradually
narrowing the urban-rural gap, promoting balanced regional development, and driving the paradigm shift from
traditional knowledge teaching to cultivating students' capabilities and comprehensive qualities.
At the same time, in alignment with the national initiative to pursue education, technology, and talent
development goals at the same time, iFLYTEK has introduced a comprehensive science education solution to
integrate science education in basic schooling. This solution includes high-quality course resources, AI teaching
tools, project-based inquiry systems, digital inquiry environments, and expansive social classrooms that bridge
home, school, and community. Additionally, it focuses on building a culture of science and technology among
educators. These support teachers in delivering effective science lessons, enhance students' science and
technology literacy, and inspire children to pursue their dreams of becoming scientists by instilling a passion for
science in their hearts.
In response to the national initiative to enhance digital education and universal digital literacy, iFLYTEK
has introduced a technology curriculum solution centered around experimental teaching and guided by
curriculum standards. This solution utilizes the cognitive big model capabilities of iFLYTEK Spark to address
the challenges in teaching, learning, and evaluating information technology subjects. It significantly enhances the
efficiency of teachers' preparation for experimental teaching, cutting down preparation time from 4 hours to just
30 minutes. This not only boosts student engagement but also nurtures future talent equipped with digital literacy
and innovative skills, aligning with national educational goals.
1.3 Promoting AI self-learning aids for students
Since its launch, iFLYTEK’s AI Learning Machine has been a leader in its market segment, introducing a
personalized and effective learning method, and consistently maintaining the highest Net Promoter Score (NPS)
in the industry. Amidst fierce competition, the market share and brand recognition of iFLYTEK’s AI Learning
Machine have continuously grown. With the release of the upgraded iFLYTEK Spark V4.0, the smart learning
machine now features an enhanced AI-based 1-on-1 tutoring function, pioneering a new interactive mode that
encourages children to think and ask questions proactively. In line with the 2022 curriculum standards, which
emphasize respecting individuality and autonomous learning, iFLYTEK has partnered with renowned national
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institutions to develop high-quality learning content closely aligned with these standards, including AI-enhanced
courses in Chinese writing, intensive reading, cognitive development, and elementary mathematics, bringing
children innovative ways of learning and a better learning experience.
iFLYTEK’s key consumer product, Personalized Learning Handbook, has been further developed to
integrate iFLYTEK Spark’s cognitive big model capabilities. Features like English Essay Correction and
Polishing blend language understanding and text generation for advanced corrections and address key challenges
in English teaching for the “new” college entrance exam. New features such as Science Subjective Question
Correction enhance mathematical ability and logical reasoning through stepwise corrections and personalized
error correction. Additionally, in response to the trend of homework digitalization, the Digital Homework
Notebook, developed to complement the Spark Smart Grader used by teachers, provides students with
personalized homework tailored to their educational needs. This model has been successfully applied in key
schools across Jiangsu, Jiangxi, Hubei, Anhui, Shandong, Guangxi, and Chongqing, receiving favorable
feedback from schools, teachers, and students for its practical value in differentiated instruction.
2. Smart Healthcare
In the field of smart healthcare, iFLYTEK is committed to creating an AI diagnostic assistant for every
doctor and an AI health assistant for every citizen. Utilizing the foundational capabilities of AI, it empowers a
healthcare system that spans from community medical stations to hospitals, patients, citizens, and regional
healthcare administrators. It offers products and solutions that cover the entire process from health risk early
warning, early screening, diagnosis, treatment, follow-up on rehabilitation, post-diagnostic management, and
chronic disease management.
Marking a milestone with the breakthrough in medical cognitive technology by passing the general written
test of China's National Practicing Physician Qualification Examination, iFLYTEK has continued to delve
deeply into medical natural language processing, medical knowledge learning, and knowledge representation.
Based on massive industry data, the Company has developed a cognitive large model for healthcare based on
iFLYTEK Spark (“medical big model”). In October 2023, iFLYTEK launched the Xunfei HealthBot to meet the
consultation needs of patients before, during, and after diagnosis. On June 27, 2024, the medical big model and
the Xunfei HealthBot were upgraded again, releasing a family health assistant. For the first time, a personal
digital health assistant went online, capable of constructing a "personal digital health space" based on
individualized data such as electronic medical records, test reports, and physical examination reports. Before a
patient visits a doctor, it can help analyze the causes of illnesses, provide personalized judgments on drug
contraindications during medication, and give comparative data changes after examinations. By switching roles,
it allows understanding of other family members' health conditions, creating also a health assistant for everyone.
iFLYTEK’s smart healthcare business primarily includes services and solutions for community medical
institutions, hospitals, patients, and regional health administrators.
2.1 Community medical services
iFLYTEK’s medical services line consists of the “AI Medical Assistant” robot and the chronic disease
management system, offering the first mature AI solutions aimed at community medical institutions.
AI Medical Assistant: iFLYTEK’s AI Medical Assistant, which passed the general written test of China's
National Practicing Physician Qualification Examination in 2017, is the first and only system in the world to
achieve this feat. It provides a technological foundation for general medical diagnostic assistance, offering AI-
assisted diagnosis and treatment recommendations to doctors at community medical institutions. It enhances
medical capabilities, standardizes diagnostic and treatment procedures, and reduces medical errors. It also
provides monitoring services for medical regulators such as provincial health commissions, achieving evidence-
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based quality control and precise management. As of June 30, 2024, iFLYTEK’s AI Medical Assistant has been
implemented in more than 53,000 community medical institutions across over 600 districts and counties in more
than 30 provinces nationwide, providing approximately 810 million AI-assisted diagnostic suggestions and about
310 million electronic medical record recommendations. The system has corrected over 1.44 million valuable
medical records and identified 69 million inappropriate prescriptions. The reliability of initial diagnoses has
increased from about 96% in 2021 to 98% currently, and the reliability of prescription audits from about 93% in
2021 to about 97% currently, covering more than 1,800 diseases and significantly reducing the risks of
misdiagnosis, missed diagnosis, and medication errors.
Chronic disease management: iFLYTEK’s AI chronic disease management system automatically assists
family doctors with chronic disease screening, stratification, personalized health education, and automated
lifestyle interventions as part of everyday chronic disease management services. This allows family doctors to
focus on chronic disease diagnosis and treatment and patient care, effectively promoting the integration of
medical prevention and improving the control of chronic diseases and reducing hospitalization rates for
complications. During this reporting period, the system has been applied in the Economic Development Zone of
Wuxi City in Jiangsu, Puyang County in Puyang City of Henan Province, Linzi District of Zibo City in
Shandong Province, with four new districts and counties added including Jieshou City and Yiwu County.
2.2 Hospital services
iFLYTEK’s hospital services include a smart hospital solution and Diagnostic Assistant, integrating diverse
medical scenarios within the hospital ecosystem, enhancing the diagnostic and management efficiency of tertiary
hospitals and doctors while empowering medical services.
Smart hospital solution: iFLYTEK provided a comprehensive solution that connects hospitals, doctors, and
patients before, during, and after diagnosis, aimed at improving doctors' efficiency in diagnostics and treatment.
At West China Hospital affiliated to Sichuan University, this solution has supported pre-diagnosis triage for over
13,000 symptoms and more than 5,000 diseases, accurately matching patients with the appropriate departments
based on their symptoms. In April 2024, iFLYTEK Medical, West China Hospital, and Huawei signed a strategic
cooperation agreement. The three parties will utilize their respective resources and technological advantages to
deepen collaboration in key areas such as innovative medical service models, improving medical experiences,
and the application of large model capabilities for healthcare, aiming to promote the development of hospital AI
and enhance public healthcare.
Diagnostic Assistant: iFLYTEK’s Diagnostic Assistant primarily includes general and specialty Clinical
Decision Support Systems (CDSS) tools, such as the intelligent Venous Thromboembolism (VTE) prevention
and management system and AI quality control across all cases, assisting hospitals and doctors in managing
diagnoses, treatments, and administration for general and specialty diseases, thereby enhancing the efficiency
and quality of services provided by tertiary hospital doctors. As of June 30, 2024, the specialty CDSS covers
more than 50 diseases, and the VTE system is able to make intelligent assessments for over 170 VTE-related
items, with AI assessment achieving consistency rate of over 90% with expert assessments. It has provided
services to more than 40 hospitals among China's top 100 public hospitals, including the top 5 public hospitals.
2.3 Patient services
iFLYTEK’s patient services business line includes smart hospital patient services and post-diagnostic
management (including Xunfei HealthBot APP and mini-programs), the Imaging cloud platform, and intelligent
hardware. By now, the scope of patient services has been extended to cover end-users within the medical system,
supporting long-term and stable profitability and growth.
Smart hospital patient services and post-diagnostic management: iFLYTEK’s smart hospital patient services
and post-diagnostic management platform is developed to customize post-diagnostic patient management plans.
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Patients can maintain contact with doctors through this platform after receiving medical treatment, upload
recovery information, receive medication reminders, and perform self-reporting. During the recovery process,
patients can obtain answers to common questions through a medically knowledgeable chatbot built into the
platform, which also serves as a tool for doctors to collect and analyze data on patient recovery. During this
reporting period, upgrades have been made to address evolving customer needs, utilizing the latest technological
advancements such as AI large models. These upgrades include intelligent follow-up systems using hyper-
realistic technology and enhancements to intelligent accompanying systems for medical large models, which are
aimed at improving intelligent Q&A functionalities and the interpretation of examination reports. The latest
achievements have been implemented in hospitals such as West China Hospital affiliated to Sichuan University,
Tongji Medical College of Huazhong University of Science and Technology, Jiangsu Provincial People’s
Hospital, and the First Affiliated Hospital of the University of Science and Technology of China. Post-discharge
follow-up coverage at West China Hospital has reached 95% after the upgrade.
Imaging cloud platform: Following national policy guidance and responding to healthcare system reforms,
iFLYTEK Medical has actively promoted tiered diagnostic and treatment and established a mechanism for the
mutual sharing of examination results. The Anhui Imaging Cloud Platform provides remote medical imaging
services across the province and assists in implementing the tiered diagnostic and treatment system. Doctors
from hospitals at all levels in the province can upload imaging results to the cloud platform and consult imaging
data and reports uploaded by other hospitals. This helps achieve medical data interoperability, reduces
unnecessary repeated examinations, and prevents patients from unnecessary radiation exposure. During this
reporting period, the Anhui Province Imaging Interconnection was selected as one of the top ten AI application
scenarios in the Yangtze River Delta for 2024. As of June 30, 2024, the Anhui Province Imaging Cloud has
networked over 1,900 hospitals in the province, covering more than 30,000 doctor workstations through imaging
data interoperability between hospitals, with doctors accessing images over 400,000 times, patients viewing
images over 7 million times, and over 20 million reminders issued; more than 400 remote imaging consultation
teams have been created, including over 3,000 registered consultation experts conducting over 7.5 million remote
consultations. The imaging cloud platform has brought superior medical resources to the community level,
enhancing the patient experience.
Intelligent hardware: By the end of the 14th Five-Year Plan period, China's population aged 60 and over is
expected to exceed 300 million, transitioning the country from a mildly aged to a moderately aged society.
Hearing loss is anticipated to become increasingly prevalent among the elderly. In 2022, iFLYTEK released its
intelligent hearing aids, and in the same year, an upgraded deluxe version was launched. Thanks to its excellent
performance, intelligent experience, and affordable prices, it has been fully recognized by the market and
consumers. In April this year, iFLYTEK launched the latest intelligent behind-the-ear hearing aid, featuring 64
intelligent channels, 32 adjustable frequency points, and a full-scale gain of up to 70 decibels, meeting the needs
of people with severe hearing loss. During the "618 Shopping Festival" (June 18 sales campaign) on China’s two
major e-commerce platforms, JD.com and T-mall, it won first place in the hearing aid category on T-mall and
second place on JD.com. As of June 30, 2024, iFLYTEK has over 90,000 registered intelligent hearing aid users.
2.4 Regional health administration solutions
This business line encompasses intelligent health solutions and smart medical insurance.
Intelligent health solutions: iFLYTEK’s intelligent health solutions comprise an Infectious Disease
Monitoring and Early Warning System, a Universal Health Information Platform, and a County-level Medical
Community Solution. These enable regional health administrators to monitor and manage the capabilities of
healthcare professionals such as doctors at community medical institutions, as well as to conduct infectious
disease prevention and control. For instance, in 2022, iFLYTEK Medical established an Infectious Disease
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Monitoring and Early Warning System in Hefei, Anhui Province. Capable of comprehensive risk assessments
with high sensitivity and accuracy, the platform performs spatial-temporal clustering analysis, epidemiological
trend extrapolation, and deep knowledge reasoning supported by medical knowledge graphs, enabling rapid
identification of infectious disease outbreaks. This effectively supports emergency responses and public health
investigations, aiding the digitalization of infectious disease prevention and control. As of June 30, 2024, based
on multimodal data gathered from over 17,000 community medical institutions and about 20 tertiary hospitals,
the system effectively monitored 41 statutory infectious diseases, 15 non-statutory infectious diseases, and six
major syndrome monitoring signals.
Smart medical insurance: iFLYTEK Medical actively responds to the application of DRG/DIP payment
methods by developing a comprehensive medical record analysis system to achieve smart medical insurance
management. Hospitals and doctors using iFLYTEK’s Smart Medical Insurance receive alerts about pre-hospital
medical records, report bundled billing and other abnormal activities, and can promptly identify potential
compliance risks. This system helps hospitals analyze, control, and coach on diagnostic pathways, medical
record front pages, and coding, enhancing the compliance of designated medical institutions, improving the
regulatory efficiency, and achieving systematic and standardized fund management. After winning first place in
the National Medical Insurance Administration's Smart Medical Insurance Solution Competition in 2022,
iFLYTEK’s Smart Medical Insurance has entered into normal operation in Lyuliang (Shanxi Province) and Pu'er
(Yunnan Province), and has delivered products in Hefei (Anhui), Nanjing (Jiangsu), Guiyang (Guizhou),
Changzhi (Shanxi), Wuzhou (Guangxi), and Jiujiang (Jiangxi). This further enhances application effectiveness,
promoting coordinated development and governance of medical insurance, healthcare, and pharmaceuticals.
3. Smart City
In the smart city domain, iFLYTEK is leveraging the opportunities presented by China's digital
development initiatives, utilizing the leading foundational capabilities of its general AI large model iFLYTEK
Spark. The Company captures the digital transformation needs of governments at all levels, continually rolling
out innovative and competitive products and solutions. Focusing on government services, social governance, and
data utilization, iFLYTEK is enabling digital government services across comprehensive networks for integrated
and collaborative management, service, and governance, supporting the digital transformation of governments
while reaping the value of data resources. Additionally, iFLYTEK provides cities with integrated solutions,
including software, hardware, and operational support, for building intelligent computing centers. Notably, in
Lichuan (Hubei Province) and Wenzhou (Zhejiang Province), iFLYTEK has developed industry-specific large
models based on its large language model iFLYTEK Spark to fuel local industrial growth. The smart city domain
is now expanding into smart agriculture, smart parks, smart buildings, and smart water management,
significantly broadening its market presence across China and establishing a robust, comprehensive, and
ecologically rich smart city framework.
3.1 Digital government
During this reporting period, iFLYTEK's digital government business made significant strides by
integrating the foundational capabilities of its large language model, iFLYTEK Spark, and leveraging its deep
industry expertise. The Company has achieved iterative enhancements to its digital government products and
solutions based on iFLYTEK Spark, using its upgraded foundational capabilities for digital government services,
and creating a holistic digital solution that encompasses government services, social governance, community
governance, data governance, urban flood control, drainage, and digital twin for irrigation. Additionally,
iFLYTEK successfully developed innovative large model-driven products such as Comprehensive Window
Assistant, Smart Inquiry and Handling, Digital Social Worker, and Law Enforcement Assistant.
In Anhui Province, iFLYTEK has continued to strengthen its presence in the local market, accelerating the
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deployment of the first batch of digital government applications. In this province, the construction of focal points
for city integration has sped up, the county-level market continues to expand, and the operational model is being
developed at a faster pace. The expansion of the national digital government market has accelerated, with
iFLYTEK rolling out county-level solutions in partnership with enterprises in the ecosystem. Noteworthy market
brands such as Shanghai Tangqiao's "Digital Social Worker" have been established, forming a series of
significant project prototypes. Up to now, iFLYTEK’s digital government solution has performed very well and
demonstrated effectiveness in cities like Pudong (Shanghai), Huangshi (Hubei), Benxi (Liaoning), and Chengdu
(Sichuan). Moving forward, iFLYTEK’s digital government business will continue to build on its large model
capabilities, upgrading its products and solutions, enhancing ecological cooperation, and supporting the
implementation of digital government applications.
During this reporting period, iFLYTEK actively integrated intelligent computing power, foundational large
language model capabilities, and upper-layer application scenarios to empower the upgrade of traditional urban
sectors and the cultivation of emerging industries, boosting the rejuvenation of urban industries. Currently, in the
city of Lichuan, Hubei, focusing on the construction of domestic intelligent computing centers and the incubation
of large models for the cultural and tourism industry, iFLYTEK empowered the city’s digital economy
development, exploring a new model of iFLYTEK Spark empowering industries. In the city of Wenzhou,
Zhejiang, iFLYTEK delivered comprehensive and high-quality cloud computing and artificial intelligence
services to enterprises and public institutions.
3.2 Smart judiciary
During this reporting period, iFLYTEK’s legal large language model version 1.5 based on iFLYTEK Spark
was released, trained on massive high-quality judicial data. This updated version, trained on massive high-quality
judicial data, demonstrated a 13% improvement in performance over its predecessor, version 1.0, across 12
fundamental industry capabilities. In addition to this enhancement, a specialized judicial knowledge base was
developed. This foundation supports a variety of large language model scenario services tailored to the specific
needs of the legal sector. Among these, a streamlined court transcript recording system has been implemented in
more than ten courts, and the legal consulting service has generated a total of 70,000 legal complaints, receiving
unanimous approval from the courts. Moving forward, the foundational capabilities of the large language model
will be further leveraged to explore a model of fully integrated human-machine collaborative digital judge
assistant application in court trials, providing courts with intelligent tools to enhance the quality and efficiency of
case handling.
During this reporting period, the iFLYTEK Spark-based legal large language model was used to create a
version 2.0 of comprehensive human-machine collaborative services, which enhances the intelligence of the
court case handling process, identifying bottlenecks in the case handling process more quickly and accurately.
From January to June 2024, the People’s Court of Hefei High-tech Zone saw a continuous increase in the number
of new cases, ranking among the top in the city across 18 indicators. The quality and efficiency of the People’s
Court of Donghu District of Wuhan continued to improve, with the case processing cycle reduced by 51.89%,
down 26.21%a year on year. Further efforts will combine foundational large language model capabilities to
explore a comprehensive service model at the provincial and municipal level, constructing provincial and
municipal “12368” litigation services and intensive, refined cataloging services to enhance case handling
efficiency and reduce costs.
4. Open Platform and Consumer Business
4.1 iFLYTEK Open Platform
As one of the first new-generation artificial intelligence open innovation platforms in China, iFLYTEK
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Open Platform actively builds “new productive forces” powered by large language models. The Company
continuously advances the construction of its open service platform utilizing the foundational capabilities of its
large language model, pursue innovative large language model development paradigms, establishes benchmarks
for scenario-based applications of large language models, and works to foster an open, innovative, autonomous,
secure, and thriving new ecosystem. iFLYTEK Open Platform continues to provide developers, especially
entrepreneurs at the forefront of innovation, with strong support in technology, branding, channels, and
investment, aiding developers in their innovative explorations. In collaboration with industry ecosystem partners,
the Company explores a range of sectors including intelligent manufacturing, energy, finance, e-commerce, and
customer service, developing industry benchmarks and scenario-based solutions. This initiative drives and guides
AI developers in developing and implementing industry-specific applications.
By the end of this reporting period, the iFLYTEK Open Platform had made 708 leading international AI
capabilities and solutions available to over 7.06 million developers who have created more than 2.48 million
applications on this platform. Since its API became open in September last year, the iFLYTEK Spark platform
has attracted over 580,000 large model developers. The platform has launched online sites overseas in Singapore,
South Korea, Japan, and Hungary, and established local operations teams in Singapore, Thailand, Malaysia,
Saudi Arabia, and the UAE. With its multilingual AI capabilities, it has served over 400,000 developers abroad
across industries such as education, finance, government, and telecommunications. The Super Brain platform,
focusing on embodied intelligence such as robot dialogue and understanding, significantly enhances multimodal
interaction capabilities. Currently, it covers 90% of the Chinese service robot market.
iFLYTEK Spark is dedicated to making large language model applications universally accessible,
transforming it into an AI assistant that deeply understands human needs. On June 27 this year, the Company
launched iFLYTEK Spark V4.0, introducing the industry’s first “personal space.” This feature allows users to
seamlessly store and manage content related to learning, work, life, and health, thereby enabling the model to
offer personalized services and generate customized content. Furthermore, iFLYTEK Spark provides an end-to-
end, customizable intelligent agent development platform. This platform empowers users to create personal
assistants without any coding requirements and enables developers to effortlessly build native applications,
significantly enhancing the growth of the industrial ecosystem. Leveraging the foundational capabilities of
iFLYTEK Spark, the Company has created an AI-native application suite that includes intelligent PPT, a
document knowledge base, and role simulation. Additionally, our AI virtual human interaction platform has
launched iFLYTEK Smart Creation, an AIGC product that has already attracted over 4 million users. This
innovative tool allows users to create personal digital avatars with just a single sentence, simplifying video
content creation for everyone.
In the arena of digital marketing, iFLYTEK’s AI marketing business leverages AI technology and big data
to maintain a competitive edge. This is achieved by continuously enhancing operational efficiency and seizing
new business opportunities. iFLYTEK has evolved its AI algorithms and product solutions to establish
partnerships with all six major international 4A advertising agencies, leading to stable growth in customer base
and revenue, and setting benchmarks with several key account (KA) customer case studies in various industries.
With its global expansion strategy well underway, iFLYTEK has made significant inroads in the overseas digital
advertising market. Utilizing its AI algorithm capabilities, the company has rapidly expanded its e-commerce
clientele and cost per sale (CPS) business, covering top e-commerce platforms across Southeast Asia, Europe,
and America. It has also strategically developed the overseas traffic ecosystem, enhancing collaborations with
developers, manufacturers, and top-tier aggregation platforms, achieving over 10 billion daily page views (PVs).
The swift advancements of iFLYTEK Spark have injected new momentum into marketing solutions. In the first
half of 2024, the iFLYTEK Marketing Assistant, built on iFLYTEK Spark, was entitled the Best Digital
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Marketing Platform of the Year by the Golden Mouse, laying a robust foundation for exploring new AI
marketing opportunities.
4.2 Consumer business
The consumer business always centers around the user, growing through deeply understanding user needs
and steadily enhancing product competitiveness. With the support of iFLYTEK Spark, the Company’s consumer
business continues to strengthen the application of AI technology in both software and hardware products,
regularly updating and iterating hardware and software products and services to make them efficient and
convenient and consolidate industry leadership.
During this reporting period, iFLYTEK’s AI consumer products performed very well at major sales events.
During the "618 Shopping Festival", the GMV for smart office notebooks, translators, and recorders increased by
43% year on year. The Company continued to capture the sales championship across several categories on both
JD.com and T-mall, winning broader consumer favor, with user satisfaction and positive product ratings
continuing to rise. On the software side, products such as iFLYTEK Spark, iFLYTEK Input Method, iFLYREC,
and others that are based on iFLYTEK Spark, significantly enhance user experience, making work more efficient
and life more convenient.
During this reporting period, while domestic operations flourished, the consumer business accelerated its
expansion into overseas markets. Business units such as consumer hardware and software have been strategically
deployed in regions including Europe, the Middle East, and Asia-Pacific, and were introduced in large-scale
international trade shows and market events. During the Mobile World Congress in February 2024, iFLYTEK's
products, such as its translator, smart recorder, audiobooks, Simultaneous Translation app, and virtual humans,
received high attention and praise, enhancing iFLYTEK's international brand image. Meanwhile, the
construction of overseas platforms has progressively advanced. The systems supporting overseas channel
partnerships, brand marketing, sales, after-sales service, and local offices have been further strengthened, laying
a solid foundation for the expansion of its consumer business abroad.
Figure 2: iFLYTEK’s smart office hardware products
4.2.1 AI+ office scenarios
iFLYTEK Smart Office Notebook: During this reporting period, iFLYTEK’s Smart Office Notebook
continued to lead the ink screen market, with sales in the first half of the year increasing by 40% year on year. At
the mid-year "618 Shopping Festival”, it maintained its position as the top-selling product on JD.com, T-mall,
and Douyin for the fourth consecutive year (source: JD.com Business Intelligence & T-mall Business Advisor),
continuing to lead the industry. The X3 series has continued to hold the top spot in the office category,
solidifying its flagship status.
Driven by the continuous iteration of iFLYTEK Spark, iFLYTEK’s Smart Office Notebook series has
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upgraded the effectiveness of its AI functions such as "Meeting Minutes," "AI Writing," "Spark Q&A," and "AI
Weekly Reports." New AI features like “Document Reading” and “AI Assistants” were also introduced, focusing
on personal office scenarios to help users enhance their office efficiency. Users have highly rated the product's
transcription accuracy, writing experience, and core functions like the large model capabilities of iFLYTEK
Spark, with e-commerce positive reviews exceeding 98%. iFLYTEK continues to drive and participate in the
formulation of related standards for smart office notebooks, serving as the leader in drafting the T/DZJN 228-
2024 standard for Electronic Paper Meeting Notebooks organized by the China Electronic Energy Saving
Technology Association, enhancing industry influence and promoting industry-standard development.
iFLYTEK Smart Recorder: During this reporting period, iFLYTEK’s Smart Recorder continued to lead the
smart recording industry, securing the top sales position on JD.com and T-mall during the "618 Shopping
Festival" promotion campaign for the seventh consecutive year (source: JD.com Business Intelligence & T-mall
Business Advisor).
Power by iFLYTEK Spark, iFLYTEK’s smart recorder can instantly generate meeting minutes, extract key
information, generate to-do items, and intelligently remove filler words, significantly improving work efficiency.
In foreign language classrooms or speeches, the Simultaneous Translation feature allows users to listen to the
translated audio through headphones, facilitating the understanding of classroom content or speeches, making the
recorder a smart assistant for office and learning purposes.
In the first half of 2024, iFLYTEK continued efforts to expand into the overseas market, developing new
localized online and offline sales channels in markets such as South Korea, Singapore, the USA, and Canada.
Product sales and user reputation have steadily enhanced, with users now spanning Asia, Europe, America, and
other regions across 180 countries.
iFLYREC (Meetings + SaaS): During this reporting period, iFLYTEK launched a large smart office model,
which is deeply integrated into the iFLYREC Meeting Office product series, providing government and
corporate clients with a continuously optimized “AI+ office” service solution. iFLYREC Meeting Office has
now served 3,000 government and corporate clients. In industry applications, the iFLYREC smart meeting
system has served the national CPPCC sessions for six years and supported NPC and CPPCC meetings at various
venues for three years. Moving forward, it will deliver more technologies in key regions such as Anhui Province,
Zhejiang Province, Shanghai, Yunnan Province, Guizhou Province, Henan Province, and the Guangdong-Hong
Kong-Macao Greater Bay Area, enhancing the efficiency of smart governance. On July 4, 2024, the iFLYREC
Smart Office solution was awarded the "Top 10 Corporate Digital Empowerment Cases of China 2024" by the
Zhongguancun Digital Economic Industry Alliance.
During this reporting period, iFLYREC Simultaneous Translation provided global users with high-quality
language service solutions, delivering 22% more conference services than the previous period. It continued to
provide AI-based Simultaneous Translation services to dozens of Fortune 500 companies and international
events such as the Zhongguancun Forum in Beijing, the Mobile World Congress in Spain, the International
Advertising Festival in Malaysia, and the BEYOND EXPO in Macau. Additionally, public cloud services and
product innovations continue to break through, further expanding iFLYTEK's influence in the international
market. In public cloud services, iFLYTEK’s Simultaneous Translation app registered a 168% increase year on
year, and app services were launched in the Hong Kong and Macau, targeting international clients primarily in
the Greater Bay Area. In terms of product innovation, iFLYTEK launched new Simultaneous Translation
earphones for commercial scenarios, allowing users to immerse themselves in international conferences.
iFLYTEK also reached cooperation intentions with several national museums and international scenic spots
using Simultaneous Translation earphones. The international version of iFLYTEK Simultaneous Translation app,
iFLYTRANS, now supports Japanese, Korean, and Traditional Chinese, and is available for all-in-one and SaaS
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deployments in Europe, the Middle East, and other regions.
iFLYTEK's smart office SaaS platform drives user growth with innovative technology. During this
reporting period, the number of ecosystem users exceeded 200 million, reaching over 74 million terminal users
which include more than 3 million monthly active users, ranking first in efficiency transcription in mobile app
stores (iOS system). After the upgrade in 2024, iFLYTEK's smart office SaaS platform will integrate multiple
smart office hardware and software products from iFLYTEK to provide a one-stop smart office experience,
achieving highly efficient AI office throughout the entire chain. In terms of business development, powered by
the foundational capabilities of iFLYTEK Spark, iFLYTEK Writing accrued 1240% more new paying users, and
the overall number of paying users on the platform exceeded 20% of the total. iFLYTEK has reached
cooperation with well-known enterprises such as China Telecom and Industrial and Commercial Bank of China,
enhancing AI efficiency across various sectors. In terms of the international development of SaaS products,
iFLYTEK’s iFLYREC and Simultaneous Translation app were launched in Hong Kong and Macau; Deepting,
the international version, started market expansion in the European Union, the United Kingdom, Southeast Asia,
Japan, and Korea. In terms of ecosystem development, iFLYTEK continued to deepen its strategic cooperation
with HarmonyOS and its smart office SaaS platform became one of the first native applications for HarmonyOS.
Enterprise Digitalization: During this reporting period, the iterated iFLYTEK Spark V4.0 significantly
enhanced seven core capabilities, leading to substantial upgrades in Digital Employee products. The iFLYTEK
Spark Bid Evaluator offers Digital Employee assistance throughout the bidding process, significantly enhancing
bidding evaluation efficiency. Utilizing the foundational capabilities of large language model, this Digital
Employee analyze and identify essential bidding information such as "bidding requirements and key points,"
automatically reviewing, scoring, and providing arguments, which boosts review efficiency by 75%. Operating
in sectors like energy, this Digital Employee serves prominent clients such as China National Coal Development
Co., Ltd., creating "AI bid evaluators" that intelligently elevate corporate procurement processes.
The iFLYTEK Spark Contract Assistant, another Digital Employee, manages the entire lifecycle of contract
management by resolving efficiency bottlenecks and management risks through utilizing the large language
model’s foundational capabilities. This establishes a scientific and standardized contract management system.
This Digital Employee enhances the efficiency of contract drafting through generative techniques, reduce
contract compliance risks through comprehensive risk reviews, improve contract performance efficiency via
semantic-level element extraction, and augment contract archiving efficiency through document knowledge
Q&A. Serving numerous large private enterprises, this Digital Employee has notably assisted clients like Wanda
Commercial Management Group in reviewing an average of 300,000 contracts per month, substantially
improving review efficiency.
Additionally, the iFLYTEK Spark Smart Cockpit has served numerous large enterprises both home and
abroad, markedly improving intelligent interaction efficiency in customers’ exhibition halls and management
scenarios. Leveraging large language model and AI capabilities, the iFLYTEK Spark Smart Cockpit facilitates
enterprise data Q&A, knowledge Q&A, and automatic explanations through interactive dialogues with virtual
humans (Virtual Employees). This greatly enhances efficiency and deeply empowers enterprises across multiple
business scenarios including exhibition hall presentation, data acquisition, and intelligent reporting.
4.2.2 AI+ life scenarios
iFLYTEK Input Method: Leveraging the comprehensive upgrade of iFLYTEK Spark, iFLYTEK has
advanced its AI input method to adapt to user expression scenarios. As of June 2024, the monthly active users for
iFLYTEK Input Method have increased by 3.6% year on year in the open market, maintaining the fastest growth
rate in the industry. During this reporting period, iFLYTEK’s smart input function "Versatile Persona" was
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released, enhancing the richness and fun of user expression content; the effectiveness of its AI voice input was
enhanced, further expanding its usage scenarios, with daily voice activation increasing by 15% year on year; and
the AI Pinyin engine was upgraded, significantly improving input efficiency.
Continued product innovation has led to enhanced input experience. iFLYTEK Input Method has further
increased its market attraction for young users, becoming one of the TOP 10 favorite apps among Gen-Z users. It
has been widely recognized in the industry, winning the ITGSA 2023 "Quality Application in the Utility
Category" as well as the "HarmonyOS Pioneer - Shining Star Plan Ecological Innovation Award" and
"HarmonyOS Pioneer - Ecological Contribution Award." (Source: iResearch’s China Mobile Internet Traffic
Quarterly Report Q1 2024.)
iFLYTEK Translator: During this reporting period, the activation rate of iFLYTEK Translator grew by 74%
and had the largest market share in the domestic market. Fueled by the full recovery of global tourism and
business activities, the demand and sales volume of iFLYTEK Translator have significantly increased. During
this reporting period, through the application of iFLYTEK's independently developed large language model
iFLYTEK Spark, the iFLYTEK Dual-Screen Translator and Translator 4.0 were launched after three major
upgrades, significantly enhancing the capabilities of automatic language recognition, translation accuracy, and
practicality, thereby further improving user experience. With its efficient and accurate translation and
transcription capabilities, iFLYTEK Translator is widely used in business negotiations, international conferences,
international travel, and overseas studies, and is highly recognized and well-reviewed by users.
iFLYTEK Sweeping and Mopping Robot: During this reporting period, after continuous upgrades,
iFLYTEK’s AI-powered Sweeping and Mopping Robot X3 was officially released in March this year, achieving
a 100% positive online review on JD.com. This robot, integrating the foundational capabilities of iFLYTEK
Spark, possesses industry-leading voice interaction capabilities and precise positioning for cleaning, capable of
understanding and handling complex cleaning tasks under long voice commands. Also, by optimizing SLAM
and path planning algorithms, the robot has significantly improved cleaning efficiency and positioning accuracy,
optimized the recognition and obstacle avoidance capabilities in challenging home scenarios, making cleaning
faster and more reliable. Powered by AI, the cleaning scheduling architecture was continuously optimized,
supporting users in real-time adjustment of cleaning strategies. During this reporting period, iFLYTEK’s AI-
powered Sweeping and Mopping Robot X3 made its debut at the 4th China International Consumer Products
Expo, where its excellent stain recognition and obstacle avoidance performance won high praise from users on-
site.
5. AI Solutions for Enterprise Customers in Telecom, Smart Automotive, and Smart Finance
Sectors
5.1 Telecom
iFLYTEK works to meet the needs of the three major telecom operators and TV broadcasters, especially
their digital transformation needs. In addition to enterprise users, the Company offers innovative 5G+AI products
and solutions for individuals and families, continuously creating value for users and injecting intelligence to
boost the development of a digital economy society.
For individual users, utilizing the foundational capabilities of iFLYTEK Spark, iFLYTEK collaborates with
telecom operators to develop a comprehensive communication model, providing a series of products and
solutions for various call scenarios including pre-call, during the call, missed calls, and post-call. Collaborations
with the three major telecom operators include advancements in the 5G new calling domain, promoting the
development of innovations like AIGC-based video ringtone content, Celebrity Caller ID, AI Secretary, and AI
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Shorthand.
For the family segment, in collaboration with telecom operators, an all-screen interaction large model is
developed. Leveraging the foundational capabilities of iFLYTEK Spark medical large model, products such as
AI Family Doctor and TV AI Assistant have been launched to meet the needs of family users. The AI Family
Doctor offers AI-based self-diagnosis of diseases and online health consultation services via TV screens. The TV
AI Assistant, integrating virtual humans and voice interaction capabilities, provides users with services such as
movie and TV show recommendations, daily life information inquiries, and local service links.
Regarding corporate services, building on the core capabilities of its voice large model and iFLYTEK Spark,
and targeting the high-demand scenarios for telecom operators, iFLYTEK puts the focus on smart customer
service, intelligent installation and maintenance, smart marketing, Digital Employees, among others, and has
introduced comprehensive AI+ solutions based on its large language model.
5.2 Smart automotive
In the first half of 2024, the Chinese automotive market showed a strong momentum, with a rapid growth in
the sales of new energy vehicles, a sustained positive momentum in vehicle exports, and a steadily increasing
market share for Chinese automotive brands. Overall, the Chinese automotive market is characterized by growth
and diversified development. With the steady development and integration of LLM technologies, a significant
impetus has been injected into automotive intelligence. Smart cockpits are becoming more versatile, innovations
in intelligent driving technologies continue to emerge, and the application of vehicle networking has become
more widespread.
During this reporting period, iFLYTEK’s smart voice business experienced a comprehensive upgrade due to
the enhancement of iFLYTEK Spark. The Company's products featuring multi-dialect, multilingual, and hyper-
realistic speech synthesis capabilities have significantly improved to offer a freer and more human-like
interactive experience. These product solutions have established deep collaborations with major domestic and
international automotive companies such as Chery, GAC Group, Great Wall Motors, and Changan. On April 28,
the first Chinese standards for automotive large language models, co-authored by the China Academy of
Information and Communications Technology and iFLYTEK, was officially released. This standard is set to
promote the application and efficient development of automotive large language models. In 2024, iFLYTEK's
multilingual capability played a crucial role in expanding into overseas markets and meeting the diverse needs of
different regions, providing solid support and assurance for automobile exports. To date, iFLYTEK's voice
interaction products have supported more than 25 foreign languages, covering key international markets in the
Middle East, South America, Europe, and Southeast Asia. New multilingual products have been deployed by
several leading automotive makers in their overseas projects and are fast-tracking into the delivery and mass
production stage, poised to deliver advanced smart voice services to a broader global audience.
In the realm of intelligent sound effects, the Company has developed a premier smart automotive sound
solution, iFLYSOUND. This smart audio management system, through deep integration with voice, vision, and
application ecosystems, has revolutionized the vehicle sound experience, transitioning from single-dimensional
and single-scenario to multi-dimensional and multi-scenario. The system features an array of advanced sound
technologies including virtual surround sound, ambient sound enhancement, adaptive loudness compensation,
intelligent scenario gain control, high-fidelity audio, in-vehicle communication enhancement, active noise
reduction, advanced sound field management, personal sound zones, sound zoning technology, AI multitrack,
hands-free karaoke, and the Spark Tuning Master. It offers a comprehensive subscription service model
encompassing sound libraries, sound wave libraries, sound effect libraries, and function libraries. As of now,
iFLYSOUND has been implemented in over 40 car models from more than ten Chinese and joint-venture
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automotive companies. In April of this year, a model equipped with the iFLYSOUND system won the
Professional Group A championship at the 2024 International Car Sound Challenge, hosted by the International
Auto Sound Challenge Association (IASCA). During this reporting period, sales of the iFLYSOUND system
doubled compared to the previous year.
In the realm of intelligent cockpits, iFLYTEK launched a newly upgraded smart cockpit solution at the
iFLYTEK Spark V4.0 release event on June 27. This release also introduced cutting-edge technologies and
capabilities such as high-speed LLM-based interaction, full duplex intelligent interruption, seamless switching
between multiple languages and dialects, hyper-realistic emotional speech synthesis, an AI Gourmet Assistant,
and visual-based Xunfei HealthBot for health monitoring, adaptive human voice separation, and hands-free
karaoke. iFLYTEK Spark applications achieved an industry-leading end-to-end response time of 1.5 seconds,
making human-machine interaction more convenient, richer, faster, and smarter. On the hardware front,
integrating advanced AI and domestic ZCU solutions, iFLYTEK smart cockpit’s domain controller is set to enter
into mass production in July this year.
During this reporting period, the Company continued to strengthen its deep integration with upstream and
downstream companies in the automotive industry chain, establishing strategic partnerships with FAW, Livan
Autos, Alipay, and China Automotive Data. In the first half of 2024, nearly 4 million sets of smart automotive
products were shipped, online interactions surpassed 6 billion, a year-on-year increase of 132%, and the monthly
active users reached 27.28 million.
iFLYTEK's technological and application achievements in the smart automotive realm have received broad
recognition from the industry and market. Its Feiyu Scenario Intelligent Cockpit System won a special jury
award at the fourth CMG "China Automotive Epic Ceremony". Additionally, iFLYTEK, in collaboration with
the University of Science and Technology of China and the National Engineering Research Center for Speech
and Language Information Processing, won the ASR and ASDR championships at the ICMC-ASR challenge.
5.3 Fintech
In the fintech realm, iFLYTEK primarily provides comprehensive digital management and operation
solutions for clients in financial sectors, including banking, insurance, and securities.
During this reporting period, iFLYTEK accelerated the implementation of its LLM iFLYTEK Spark in
financial sectors. By training specialized cognitive models for financial institutions and developing intelligent
applications for financial scenarios, iFLYTEK helped these institutions enhance their “new productive forces”
and improve the quality and efficiency of financial services. Targeting high-frequency business scenarios in
financial institutions such as marketing, due diligence for risk control, customer services, and R&D
programming, iFLYTEK launched four intelligent products based on iFLYTEK Spark V4.0: Spark Marketing
Assistant, Spark Due Diligence Assistant, Spark Customer Service 2.0, and iFlyCode (Spark code assistant). The
Spark Marketing Assistant performs multi-dimensional customer group profiling to generate marketing
suggestions and customized business strategies, offering real-time knowledge Q&A support for account
managers. The Spark Due Diligence Assistant can automatically access diverse information sources and extract
key data, using multi-dimensional credit risk analysis to generate draft reports instantly, significantly enhancing
the efficiency and quality of due diligence documentation for loans. Spark Customer Service 2.0 builds on
upgraded technologies such as long-text processing, knowledge tracing, and hyper-realistic synthesis, enhancing
functions like knowledge intelligent editing, agent planning, and workflow orchestration, simplifying user
interactions and optimizing business operations. iFlyCode, through pre-training and SFT training, significantly
improves code recommendation adoption rates and integrates code review, automated testing, and programming
suggestions, automatically generating high-quality unit testing code and reducing coding costs and barriers for
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developers.
During this reporting period, iFLYTEK advanced joint innovation with industry partners to speed up the
development and deployment of large models in the financial industry. It signed strategic cooperation
agreements with various financial institutions such as Bank of Beijing and Suzhou Bank, and deepened
collaborative efforts in the "AI+Finance" sector with various organizations including Bank of Communications,
Postal Savings Bank of China, PICC Group, China Everbright Bank, Shanghai Pudong Development Bank,
Anhui Branch of Bank of China, Bank of Beijing, Huishang Bank, Bank of Ningbo, Xi'an Bank, Tangshan Bank,
Guoyuan Securities, and Hu'an Securities, exploring innovative scenarios together. In collaboration with Bank of
Communications, iFLYTEK created a hundred-billion-level financial large model, crafting end-to-end AI
financial application scenarios in crucial business areas such as retail, inclusive finance, operations, and risk, and
jointly announced joint AI innovation achievements at the 2024 World AI Conference. iFLYTEK is dedicated to
sharing its experiences in implementing large model applications across the industry, actively contributing to the
development of large model standards spearheaded by the China Academy of Information and Communications
Technology, leading the development and release of the first domestic banking industry large model standard,
and promoting the healthy development of large language models in the financial sector.
II. Competitiveness Analysis
iFLYTEK, a pioneer in China's artificial intelligence industry, has cultivated deep expertise in AI over
twenty-five years, developing significant competitive advantages:
1. Internationally Advanced AI Core Technologies
As China's AI leader, iFLYTEK has established major national platforms, including the State Key
Laboratory for Cognitive Intelligence and the National Engineering Research Center of Speech and Language
Information Processing, as well as one of the first open platforms for new-generation AI innovation.
iFLYTEK remains strongly committed to creating core technologies, keeping its key AI technologies at the
international forefront. In recent years, though being placed on the US Entity List, iFLYTEK has focused on self-
reliance and developed key AI technologies, winning numerous international authoritative challenges in the AI
field. This includes dozens of international AI contest championships across various domains such as intelligent
speech, machine translation, natural language understanding, image recognition and understanding, knowledge
graphs, and machine reasoning, thus continuously enhancing its global influence in the AI arena. In June 2024,
iFLYTEK's was awarded the first prize of the State Science and Technology Award for its successful
"Multilingual Intelligent Speech Technologies and Industrialization" project, the first AI project to win such an
honor since the global AI boom ignited by deep learning.
iFLYTEK has accumulated substantial R&D strength in cognitive large models (LLM) and continues to
achieve technological breakthroughs and innovations. iFLYTEK Spark was iterated to version 4.0 on June 27,
2024. This version not only matches GPT-4 Turbo across various benchmarks (outperforming the latter in 8 out
of 12 mainstream test sets (10 English evaluations such as HumanEval, WinoGrande and GPQA, and 2 Chinese
evaluations C-Eval and CMMLU) but also spurred the development of software and hardware products tailored
for education, healthcare, automotive, and corporate scenarios, showcasing the Company’s leading capabilities in
large language model applications. iFLYTEK has become a large language model partner for key industry
leaders such as State Grid Corporation of China, China National Petroleum, China Mobile, PICC, CPIC, Bank of
Communications, Chery Automobile, FAW Group, Volkswagen, Haier Group, and Midea Group. The Company
has co-built China’s first fully domestic massive intelligent computing platform "Feixing-1," and iFLYTEK
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Spark is the only large language model trained with domestic computing power which is available for public
download thus far.
To date, iFLYTEK has led and participated in the formulation of over 100 intelligence speech and AI
standards. These include 3 international standards, 34 national standards, 9 industry standards, 8 local standards,
and 24 group standards, covering areas such as speech recognition, speech synthesis, large language models,
smart home, intelligent customer service, mobile terminals, vehicle terminals, smart TVs, and machine
translation. For instance, in May 2023, iFLYTEK led the proposal of the international standard ISO/IEC
24661:2023 "Information Technology - User Interfaces - Full Duplex Speech Interaction," which is the first
global standard in intelligent speech interaction. In July 2023, at the World AI Conference, iFLYTEK was
appointed co-chair of the national AI standardization panel for large language models. In July 2024, iFLYTEK
led the proposal of the international standard ISO/IEC 5259-4:2024 "Artificial Intelligence - Data Quality for
Analytics and Machine Learning - Part 4: Data Quality Process Framework," which is the first AI data quality
standard led by China.
2. From Core Technological Breakthroughs to Systematic Innovation and Scalable
Application
For core technologies, transitioning from R&D breakthroughs to scalable industrial applications is a high-
threshold process. On one hand, innovations must expand from single-point breakthroughs to full-stack
technologies across business chains and also identify large enough scenarios with appropriate business models
for business and technology to enhance each other, or otherwise the teams will remain merely as single-point
technology providers. iFLYTEK has consistently used artificial intelligence to address significant societal needs,
gaining unique advantages in two main areas:
Beyond maintaining continuous innovation and leadership in single-point core technologies, iFLYTEK
persistently expands and solidifies its technology tree through systematic innovation. For example, the
Company has progressed from speech synthesis to speech evaluation to speech recognition; from speech
recognition to text and image recognition; from single-modal recognition and synthesis to multi-modal
global perception and rich expression; from perceptual intelligence that can "hear and speak" to cognitive
intelligence that can "understand and think." It continues to tackle complex scenario problems through
multi-technology integrated innovation and leverages general-purpose algorithmic innovations to create an
"amplifier effect" across multiple technology domains, organically integrating various innovative
technologies in products and practical applications, thus driving the transition from single-point core
technology innovation to systematic innovation.
Aligning with the standards for AI value realization: "tangible application cases, scalable standard products,
and statistically verifiable application effectiveness", iFLYTEK has continuously promoted AI products and
solutions on a large scale in critical sectors of social wellbeing like education, healthcare, and urban
development, as well as in significant economic arenas such as automotive, finance, and consumer goods.
The Company has developed a wealth of application scenarios in cognitive intelligence, resulting in steadily
increasing profitability. Market success, in turn, reinforces iFLYTEK's deep understanding of industry
scenarios and algorithmic iterations, further enhancing its competitive edge across various sectors.
3. Technology Brand Credibility in the Industry and Extensive Marketing Network
The core technological capabilities of AI directly impact customer experience and application effectiveness,
where high-quality practical results enhance customer satisfaction and business revenue. Builders and operators
of intelligent speech and AI application systems place great importance on the application results delivered by
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technology providers and select the most technically capable and successful providers through rigorous bidding
processes. As a leader in China’s intelligent speech and AI industry, iFLYTEK has a rich portfolio of scalable AI
application cases and statistically verifiable results that have earned the trust of industry clients and developers.
The Company has established long-term strategic partnerships with market-leading developers in various
industries, significantly enhancing its technology brand influence in the industry and competitive advantage.
Particularly in vital sectors like education and healthcare, iFLYTEK's credibility as one of “China’s AI leaders”
has been widely recognized by customers. The Company's brand assets rank 43rd on the list of BrandZ Top 100
Most Valuable Chinese Brands, with a brand value of 4.342 billion US dollars.
Based on years of industry experience, iFLYTEK has built a nationwide scalable marketing network,
establishing 32 regional marketing agencies (for provincial clusters and state-owned enterprises under the
central government) across all provinces. To better serve and stay closer to customers, iFLYTEK actively
strengthens team building and management in regions where it has operations. The front-to-back full-process
integration has built a unified sales service system, supporting the comprehensive and rapid promotion and
implementation of business products.
III. Analysis of Core Business Activities
1. Overview
In the first half of 2024, the company adhered to the development strategy of “reaching for the sky, rooted
on the ground,” steadfastly investing in the research and development of its large language model iFLYTEK
Spark. This initiative solidly advanced long-term, sustainable, and high-quality development while maintaining
healthy growth in current revenue, gross profit, and user scale. Core businesses such as education, healthcare,
automotive, open platform, and consumer products saw healthy development.
In the first half of 2024, while intensifying efforts on iFLYTEK Spark iterations and sustaining industry
leadership, the Company expedited the practical deployment of the large language model. Simultaneously, by
proactively adjusting the revenue structure, the Company achieved an 18.91% increase in revenue and a 19.08%
rise in gross profit, respectively. Additionally, total sales receipts reached 9 billion RMB yuan, marking a year-
on-year increase of 1.5 billion RMB yuan.
iFLYTEK Spark continuously strengthens the underlying AI technologies and its practical industry
applications, further establishing higher technological barriers and advantages in education, healthcare,
automotive, open platform, and consumer products. In the first half of 2024, revenue from education products
and services reached 285,971.47 million RMB yuan, a year-on-year increase of 25.14%; healthcare services
generated 22,810.16 million RMB yuan, up 18.80% year-on-year; the open platform made 234,459.88 million
RMB yuan, an increase of 47.92%; intelligent hardware earned 89,987.32 million RMB yuan, up 56.61%; and
the automotive business made 35,236.81 million RMB yuan, increasing by 65.49%. The healthy development of
these core businesses fully demonstrates the momentum and potential of "AI+" in the Chinese market.
In the first half of 2024, the Company’s gross profit increased by 601 million RMB yuan, while net profit
excluding extraordinary items decreased by 179 million RMB yuan compared to the same period last year. The
primary reason is the Company's proactive investments exceeding 650 million RMB yuan in general AI
opportunities, including iFLYTEK Spark R&D, core technological autonomy, supply chain control, and
industrial application of iFLYTEK Spark. These investments, while impacting short-term performance, have
significantly bolstered iFLYTEK's foundational AI capabilities, reinforcing its leadership in the Chinese AI
industry. On June 27, 2024, the upgraded iFLYTEK Spark V4.0 was released as scheduled. The new iFLYTEK
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Spark, benchmarking against ChatGPT-4 Turbo (outperforming the latter in 8 out of 12 mainstream test sets, 10
English evaluations such as HumanEval, WinoGrande and GPQA, and 2 Chinese evaluations C-Eval and
CMMLU) , fueled the development of several software and hardware products targeting education, healthcare,
automotive, and corporate intelligence sectors, demonstrating the Company's advanced LLM application
capabilities. iFLYTEK has partnered with key industry leaders including State Grid Corporation of China,
PetroChina, China Mobile, PICC, CPIC, Bank of Communications, Chery Automobile, FAW Group,
Volkswagen, Haier, and Midea Group. iFLYTEK Spark, trained on an entirely China-made intelligent
computing platform Feixing-1 and available for public download, has reached 140 million downloads on
Android, leading in China's general-purpose tool LLM apps (data from Qimai Data). The Company's voice and
image large models are internationally competitive. In June 2024, iFLYTEK's was awarded the first prize of the
State Science and Technology Award for its successful "Multilingual Intelligent Speech Technologies and
Industrialization" project, a significant recognition in China's AI sector over the past decade. Facing intense
international competition and, in particular, the extreme pressure from the US, iFLYTEK has secured a unique
position in the AI arena, building a robust industrial ecosystem. In the first half of 2024, the developer base grew
rapidly, with 1.279 million new developers added.
Other factors contributing to the 474 million RMB yuan year-on-year decrease in net profit attributable to
the parent company include substantial investment gains from financial assets such as Three’S Company Media
Group and Cambricon in the first half of 2023, with investment income and fair value changes decreasing by 149
million RMB yuan compared to the same period last year, and other income decreasing by 146 million RMB
yuan. Provisions for bad debts increased by 83 million RMB yuan year-on-year (the Company's accounts
receivable mainly come from quality customers, with good customer quality, high safety of accounts receivable,
and a historically low actual bad debt rate).
In summary, during the first half of 2024, the Company swiftly advanced its LLM research and
development on an independent platform, further solidifying its status as a leader in China's AI sector. It
effectively explored key product directions for LLM applications and implemented strategic improvements to its
business portfolio. As the AI industry benefits from an increasingly favorable development landscape, the
Company is poised to drive technological advancements and industrial growth from a more robust foundation,
ensuring higher quality in its future endeavors.
For details on the progress of various businesses, please refer to “Section III, I. Business Highlights During
This Reporting Period."
Year-on-year changes in key financial data
In RMB yuan
Change
Item H1 2024 H1 2023 Reason
(increase/decrease)
Operating income 9,324,545,041.14 7,841,552,405.17 18.91%
Operating cost 5,576,889,767.73 4,694,484,576.60 18.80%
Sales expenses 1,626,232,395.12 1,455,178,799.83 11.75%
Overhead expenses 612,118,633.24 561,374,268.79 9.04%
Mainly due to an increase in
Financial expenses 64,225,790.96 4,135,375.16 1,453.08%
interest expenses
Mainly due to a decrease in total
Income tax expenses -122,083,458.87 -58,089,297.85 -110.17%
profits
Mainly due to an increase in
R&D expenses 2,190,927,332.72 1,655,745,127.23 32.32% R&D expenses and development
expenditures
Net cash flow from operating
-1,535,556,254.51 -1,528,741,829.11 -0.45%
activities
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Mainly due to an increase in
Net cash flow from investing expenditures for the acquisition
-1,645,008,794.00 -847,295,396.73 -94.15%
activities and construction of long-term
assets
Net cash flow from financing
1,985,265,555.33 1,711,414,866.47 16.00%
activities
Mainly due to a decrease in net
Net increase in cash and cash
-1,191,093,425.67 -655,326,830.47 -81.76% cash flow from investing
equivalents
activities
Significant changes in the composition or sources of profit during this reporting period
□ Applicable √ Not applicable
The Company have no significant changes in the composition or sources of profit during the reporting period.
Breakdown of operating income
In RMB yuan
H1 2024 H1 2023 Change
Item
Amount Percentage Amount Percentage (increase/decrease)
Total operating income 9,324,545,041.14 100% 7,841,552,405.17 100% 18.91%
By industry
Main business
Software and IT services 9,147,037,034.51 98.09% 7,687,303,276.63 98.03% 18.99%
Education 151,861,913.14 1.63% 135,768,914.71 1.73% 11.85%
Other business 25,646,093.49 0.28% 18,480,213.83 0.24% 38.78%
By product
Main business
1. Education
Educational products and services 2,859,714,719.89 30.66% 2,285,269,310.27 29.14% 25.14%
Teaching services 151,861,913.14 1.63% 135,768,914.71 1.73% 11.85%
2. Open platform and consumer
business
Open platform 2,344,598,765.69 25.13% 1,585,090,318.29 20.21% 47.92%
Smart hardware 899,873,232.51 9.65% 574,594,957.61 7.33% 56.61%
Mobile internet products and services 267,435,160.71 2.87% 263,321,828.49 3.36% 1.56%
3. Smart city
Information engineering 664,484,838.23 7.13% 849,308,092.83 10.83% -21.76%
Digital government applications 225,483,944.62 2.42% 354,120,052.72 4.52% -36.33%
Smart legal applications 296,104,259.51 3.18% 302,109,880.52 3.85% -1.99%
4. Telecom
Telecom operators 902,148,046.37 9.67% 969,395,553.89 12.36% -6.94%
5. Smart automotive
Automotive intelligent networking 352,368,066.05 3.78% 212,924,088.84 2.72% 65.49%
6. Smart healthcare
Healthcare 228,101,617.41 2.45% 192,003,282.25 2.45% 18.80%
7. Smart finance
Smart financial products and solutions 97,673,492.28 1.05% 91,340,919.58 1.16% 6.93%
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Interim Report 2024 of iFLYTEK Co., Ltd.(English Simplified Version)
8. Others 9,050,891.24 0.10% 7,824,991.34 0.10% 15.67%
Other business 25,646,093.49 0.28% 18,480,213.83 0.24% 38.78%
By region
Main business
East China 4,867,153,971.04 52.20% 3,655,746,700.94 46.61% 33.14%
North China 1,483,719,212.57 15.91% 1,220,551,556.37 15.57% 21.56%
South China 1,457,400,611.90 15.63% 1,124,293,559.08 14.34% 29.63%
Southwest China 603,520,650.97 6.47% 580,187,762.33 7.40% 4.02%
Central China 465,984,968.44 5.00% 573,576,202.45 7.31% -18.76%
Northwest China 210,586,548.11 2.26% 499,592,869.88 6.37% -57.85%
Northeast China 153,326,680.18 1.64% 133,073,713.01 1.70% 15.22%
Overseas 57,206,304.44 0.61% 36,049,827.28 0.46% 58.69%
Other business
East China 25,646,093.49 0.28% 18,480,213.83 0.24% 38.78%
Industries, products, or regions that account for more than 10% of the Company's operating income or operating
profit
Applicable □Not applicable
In RMB yuan
In the event that the scope of data collection for the Company's main business is adjusted during the reporting
Change in
Change in Change in
operating
Gross operating cost gross margin
Item Operating income Operating cost income
margin compared to compared to
compared to
H1 2023 H1 2023
H1 2023
By industry
Software and IT services 9,147,037,034.51 5,455,548,011.15 40.36% 18.99% 18.98% 0.01%
By product
Educational products and
2,859,714,719.89 1,379,473,395.12 51.76% 25.14% 17.52% 3.12%
services
Open platform 2,344,598,765.69 1,957,514,595.33 16.51% 47.92% 65.88% -9.04%
By region
East China 4,892,800,064.53 2,807,415,312.29 42.62% 33.17% 24.55% 3.97%
North China 1,483,719,212.57 1,020,557,455.18 31.22% 21.56% 41.07% -9.51%
South China 1,457,400,611.90 937,451,122.50 35.68% 29.63% 34.79% -2.46%
period, the main business data for the most recent fiscal year has been recalculated based on the adjusted scope at
the end of the reporting period.
□Applicable Not applicable
The Company must comply with the disclosure requirements for the “Software and Information Technology
Services Industry” as specified in the Guidelines of Shenzhen Stock Exchange for Self-discipline Regulation of
Listed Companies No. 3 - Industry Information Disclosure.
Industries that account for more than 10% of the Company's operating income or operating profit:
Applicable □Not applicable
34
Interim Report 2024 of iFLYTEK Co., Ltd.(English Simplified Version)
Breakdown of operating cost
In RMB yuan
H1 2024 H1 2023 Change
Costs
Amount Percentage Amount Percentage (increase/decrease)
Material costs 3,090,042,198.87 55.54% 2,758,293,534.83 58.87% -3.33%
Operating costs 1,998,026,987.44 35.92% 1,364,402,933.58 29.12% 6.80%
Labor and outsourcing
475,260,948.16 8.54% 563,076,762.03 12.02% -3.48%
costs
Total 5,563,330,134.47 100.00% 4,685,773,230.44 100.00%
Reasons for data changes of more than 30% year-on-year
□Applicable Not applicable
IV. Analysis of Non-core Business Activities
Applicable □Not applicable
In RMB yuan
Percentage of total
Item Amount Explanation of causes Sustainability
profits
Investment gains 1,439,417.31 -0.24%
Mainly due to the Determined based on
Gain/loss from fair value recognition of gains from factors such as the
54,569,918.11 -9.22%
changes fair value changes in secondary market stock
UBTECH this period performance
Asset impairment -26,061,126.90 4.40%
Non-operating income 12,469,501.28 -2.11%
Non-operating expenses 73,848,843.95 -12.47%
V. Analysis of Balance Sheet
1. Major Changes in Assets Composition
In RMB yuan
End of H1 2024 End of 2023 Change Explanation of
Item
Amount Percentage Amount Percentage (increase/decrease) significant changes
Cash and
cash 2,371,636,371.21 6.20% 3,562,635,256.73 9.42% -3.22%
equivalents
Accounts
13,133,902,135.56 34.33% 12,165,102,111.50 32.16% 2.17%
receivable
Contract
824,168,261.88 2.15% 912,202,079.94 2.41% -0.26%
assets
Inventories 2,271,085,187.23 5.94% 2,458,967,642.86 6.50% -0.56%
Investment
175,963,035.05 0.46% 178,487,697.98 0.47% -0.01%
properties
Long-term
equity 1,452,102,164.86 3.80% 1,437,178,955.91 3.80% 0.00%
investments
Fixed assets 5,065,137,289.05 13.24% 4,393,874,425.37 11.61% 1.63%
Constructions
1,058,662,456.59 2.77% 1,241,004,506.05 3.28% -0.51%
in progress
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Interim Report 2024 of iFLYTEK Co., Ltd.(English Simplified Version)
Right-of-use
289,013,458.48 0.76% 357,713,784.46 0.95% -0.19%
assets
Short-term
651,489,745.90 1.70% 242,723,392.49 0.64% 1.06%
borrowings
Contract
1,141,255,079.97 2.98% 1,156,193,365.10 3.06% -0.08%
liabilities
Long-term
5,868,323,361.60 15.34% 4,554,692,086.61 12.04% 3.30%
borrowings
Lease
184,248,933.64 0.48% 245,614,518.45 0.65% -0.17%
liabilities
Other current
495,821,490.95 1.30% 409,416,097.76 1.08% 0.22%
assets
Long-term
1,151,548,278.37 3.01% 1,224,651,761.01 3.24% -0.23%
receivables
Other non-
current
593,001,817.71 1.55% 559,885,903.91 1.48% 0.07%
financial
assets
Intangible
2,709,612,588.57 7.08% 3,116,545,232.84 8.24% -1.16%
assets
Development
1,364,566,318.00 3.57% 698,695,357.43 1.85% 1.72%
expenditure
Goodwill 1,134,673,186.61 2.97% 1,134,673,186.61 3.00% -0.03%
Deferred
income tax 2,188,202,925.67 5.72% 2,039,063,438.76 5.39% 0.33%
assets
Bill payable 2,410,590,367.47 6.30% 2,776,112,860.37 7.34% -1.04%
Accounts
5,268,713,351.74 13.77% 5,100,694,119.20 13.48% 0.29%
payable
Other
693,871,571.98 1.81% 883,036,586.43 2.33% -0.52%
payables
Provision 930,152,410.15 2.43% 1,014,664,994.64 2.68% -0.25%
2. Status of Main Overseas Assets
□Applicable Not applicable
3. Assets and Liabilities Measured at Fair Value
Applicable □Not applicable
In RMB yuan
Cumulativ Impair
Oth
Gain/loss e changes ment Purch
er
Beginning from fair in fair recogn ase Sale this
Item cha Ending balance
balance value changes value ized in this period
nge
for this period recognize this period
s
d in equity period
Financial assets
Other non-current
559,885,903.91 54,569,918.11 21,454,004.31 593,001,817.71
financial assets
Subtotal of
559,885,903.91 54,569,918.11 21,454,004.31 593,001,817.71
financial assets
Total 559,885,903.91 54,569,918.11 21,454,004.31 593,001,817.71
Other changes
Is there any significant change in the measurement metrics of the Company's main assets during this reporting
period?
□Yes No
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Interim Report 2024 of iFLYTEK Co., Ltd.(English Simplified Version)
4. Restrictions on Asset Rights as of the End of this Reporting Period
Book balance as of June 30, Book value as of June 30,
Item Reasons for restrictions
2024 2024
Margins for banker's acceptance
Cash and cash equivalents 179,819,472.26 179,819,472.26
bills and letters of guarantee
Pledged for the Group's note
Bill receivable 205,835,969.90 205,835,969.90
pool business
Intangible assets 341,160,417.18 271,506,831.97 Mortgage loan
Total 726,815,859.34 657,162,274.13
VI. Investment Analysis
1. Overview
Applicable □Not applicable
Amount of investments during H1 2024 Amount of investments during H1 2023
Change (%)
(RMB yuan) (RMB yuan)
41,537,782.94 263,476,221.69 -84.23%
2. Significant Equity Investments Received During this Reporting Period
□Applicable Not applicable
3. Significant Non-equity Investments Under Way During this Reporting Period
□Applicable Not applicable
4. Investments in Financial Assets
1) Investments in securities
Applicable □Not applicable
In RMB yuan
Cumu
Gain/l lative
oss chang
Initia Purc Gain/loss Sou
from es in
l Accoun hase during Ending Accoun rce
Cod Na fair fair Sale this
Type inves ting Beginni this this book ting of
e me value value Period
tment measur ng book perio reporting value entry fun
change recog
cost ement value d period d
s this nized
model
period in
equity
Other
Fair Equ
Chinese and Th 9,180 - - non-
605 value 18,374, 18,169,8 ity
foreign ree ,000. 204,54 153,168. 0.00 current
168 measur 400.00 60.00 capi
stocks ’S 00 0.00 62 financia
ement tal
l assets
Other
U Fair Equ
Chinese and 5,832 50,980 non-
H09 BT value 73,237, 50,980,6 124,218 ity
foreign ,490. ,641.8 0.00 current
880 EC measur 552.18 41.80 ,193.98 capi
stocks 19 0 financia
H ement tal
l assets
15,01 50,776
91,611, 18,169,8 50,827,4 124,218
Total 2,490 -- ,101.8 0.00 0.00 -- --
952.18 60.00 73.18 ,193.98
.19 0
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Interim Report 2024 of iFLYTEK Co., Ltd.(English Simplified Version)
2) Investments in derivatives
□Applicable Not applicable
There were no derivative investments during this reporting period.
5. Use of Raised Funds
□Applicable Not applicable
There was no use of raised funds to be disclosed during this reporting period.
VII. Significant Asset and Equity Sales
1. Significant Asset Sales
□Applicable Not applicable
The Company did not sell any significant assets during this reporting period.
2. Significant Equity Sales
□Applicable Not applicable
VIII. Analysis of Major Holding and Participating Companies
Applicable □Not applicable
Major subsidiaries and associated companies with at least 10% impact on the Company's net profit
In RMB yuan
Principal Registered Operating Operating
Name Type Total assets Net assets Net profit
business capital income profit
Education,
software
iFLYTEK - -
Subsi development, 406,000,00 11,179,322 1,919,505, 2,181,433,
Intelligent 123,034,98 92,212,879
diary and 0.00 ,703.15 797.51 459.02
System Co., Ltd. 1.99 .64
information
engineering
iFLYTEK South Subsi Software 150,000,00 3,013,143, 1,299,771, 503,605,32 24,251,164 24,907,234
China Co., Ltd. diary development 0.00 024.72 598.64 8.25 .89 .59
Acquisition and disposal of subsidiaries during this reporting period
□Applicable Not applicable
IX. Structured Entities Controlled by the Company
□Applicable Not applicable
X. Risks Faced by the Company and Countermeasures
iFLYTEK is committed to value creation and standardized operations, meticulously identifies various risks,
and proactively implements strategies to mitigate and reduce risks in the following aspects.
1. Macroeconomic Environment
In recent years, the international landscape has become more and more complex, with ongoing interweaving
of multiple risks such as global supply chain adjustments and geopolitical conflicts, leading to uncertainties in
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Interim Report 2024 of iFLYTEK Co., Ltd.(English Simplified Version)
the macroeconomic environment. The World Economic Situation and Prospects 2024 launched by the United
Nations Department of Economic and Social Affairs indicates that global economic growth is expected to slow
from 2.7% in 2023 to 2.4% in 2024. Similarly, forecasts by the International Monetary Fund and the World Bank
predict global economic growth rates of 3.1% and 2.4% for 2024, with the former remaining the same and the
latter down by 0.2 percentage points from the previous year.
iFLYTEK adheres to a robust development strategy "reaching for the sky, rooted on the ground",
maintaining leadership in vital autonomous technologies and advancing its “real needs + generational difference”
approach in product applications. The Company effectively uses AI to meet critical societal needs across
government, business, and consumer sectors, creating resilient revenue streams that endure economic
fluctuations and increasingly focuses on consumer-oriented businesses to navigate macroeconomic uncertainties.
Amid demographic shifts like aging populations and falling birth rates, transitioning from demographic to talent,
and subsequently to AI application dividends, is becoming essential for industrial progress. The large language
model iFLYTEK Spark has given the Company a unique early advantage in the digital economy, bolstering its
leadership in AI-enhanced education, healthcare, and industry digital transformation, while opening new avenues
in AI personal assistants and expanding the consumer product market. Additionally, iFLYTEK strategically
balances risks and opportunities in both domestic and international markets to enhance its global positioning.
2. Business Innovation
To seize opportunities in the AI industry and adapt to the rapid technological advancements in the field,
major companies are increasingly investing in R&D for new technologies and products. However, the
industrialization and commercialization of technology carry considerable uncertainties, posing risks that R&D
investments may not yield expected outcomes, thus affecting profitability and growth.
iFLYTEK is deeply committed to its foundational technological innovation, anchored by strong AI core
technology R&D. This commitment has enabled steady advances in technological and industrial development.
The Company has developed a broad range of applications in cognitive intelligence, and its successes in the
market have further enhanced its deep understanding of industry-specific scenarios and its capacity for
algorithmic iteration. These achievements continually drive business innovation and mitigate the risks associated
with exploratory ventures.
XI. Progress and Outcomes of the "Dual Improvement in Quality and Returns" Action Plan
Has the Company announced the "Dual Improvement in Quality and Returns" Action Plan?
Yes □No
iFLYTEK has devised the "Dual Improvement in Quality and Returns" action plan to embody its investor-
centric management philosophy as a listed company and protect investor interests, and reflect its confidence in
the AI industry's future and its future development, as well as recognition of the company's value. This plan
solidly enhances the Company's quality and investment value, effectively fulfilling the responsibilities of
iFLYTEK as a listed company. For details, see the announcement published on February 8, 2024, in the
Securities Times, China Securities Journal, Shanghai Securities News, Securities Daily, and on the CNINFO
website at http://www.cninfo.com.cn under the title "Announcement of iFLYTEK on the Dual Improvement in
Quality and Returns Action Plan" (Announcement No. 2024-009). The Company has diligently implemented the
action plan, achieving outcomes in H1 2024 as follows:
1. Focusing on Value Creation, Actively Seeking Shareholder Returns
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Interim Report 2024 of iFLYTEK Co., Ltd.(English Simplified Version)
iFLYTEK is always committed to achieving long-term returns for investors through solid business
development and performance growth, enabling investors to realize long-term value. The Company will continue
to advance its value management strategies, strengthen its core competitiveness, and improve main business
performance to create value for its shareholders.
While prioritizing long-term development, the Company has maintained a stable profit distribution policy
since its initial public offering 16 years ago, consistently issuing annual cash dividends. During the seventh
meeting of the sixth Board of Directors on April 21, 2024, and the 2023 annual shareholder meeting on May 13,
2024, the profit distribution plan for 2023 was approved. This year's dividends are calculated based on the total
share capital recorded on the equity registration date, excluding shares held in the repurchase account, with a
cash dividend of 1 RMB yuan per 10 shares (including tax), totaling 229,317,822.40 RMB yuan. Furthermore,
the Company has established a "Three-Year Shareholder Return Plan (2024-2026)" to ensure a balanced
approach between company growth, performance improvement, and shareholder returns. This includes a sensible
profit distribution strategy and active cash dividend payouts. Additionally, the Company utilizes strategies such
as share repurchases to boost investor returns and strengthen market confidence. Over the past three years, cash
distributions have amounted to 138% of the average distributable profits from the same period, effectively
sharing the fruits of the Company's growth and development with investors.
2. Adhering to Independent Innovation, Building Comparative Advantages
Since its founding 25 years ago, iFLYTEK has diligently concentrated on core AI technologies, including
intelligent speech, natural language understanding, machine learning, logic reasoning, and autonomous learning,
consistently maintaining a leading position in the international arena. On June 24, 2024, iFLYTEK received with
honor the first prize of the State Science and Technology Award for 2023 in Beijing, as the leading contributing
entity for its successful "Multilingual Intelligent Speech Technologies and Industrialization" project, the first AI
project to win such an honor since the global AI boom ignited by deep learning.
In 2019, iFLYTEK was placed on the US Entity List and faced further extreme pressures in 2022. Despite
these challenges, the Company escalated its investment in advancing core technologies and solidifying industry
support, achieving outstanding results with the computing platform Feixing-1 which has laid a solid foundation
for the Company to maintain an advantage in the LLM race. On June 27, 2024, iFLYTEK Spark was upgraded as
scheduled. The released iFLYTEK Spark V4.0 not only matches the capabilities of ChatGPT-4 Turbo, excelling
in 8 out of the 12 mainstream test sets (10 English evaluations like HumanEval, WinoGrande and GPQA and 2
Chinese evaluations C-Eval and CMMLU) but also spurred various software and hardware products for
education, healthcare, automotive, and corporate intelligence, showcasing the Company's leading capabilities in
deploying LLM applications. iFLYTEK has become the preeminent LLM partner for industry leaders such as the
National Energy Group, China Petroleum, China Mobile, PICC, Pacific Insurance, Bank of Communications,
Chery Automobile, FAW Group, Volkswagen, Haier, and Midea Group.
Currently, as the AI industry continues to welcome an enabling industrial development environment, the
Company will enhance its technological and industrial advancement from a solid foundation, targeting long-term
opportunities in the AI era. Remaining investor-centric, it is dedicated to achieving dual improvement in quality
and returns.
3. Strengthening Information Disclosure and Facilitating Investor Communication
iFLYTEK is committed to promoting transparent, regulated, and open development through effective
information disclosure to protect investor rights. For 15 years since IPO, the Company's information disclosure
has been consistently rated as excellent (Grade A) by the Shenzhen Stock Exchange. According to statistics,
40
Interim Report 2024 of iFLYTEK Co., Ltd.(English Simplified Version)
among all public companies listed in Shenzhen, only 8 have been rated excellent for 15 consecutive years,
representing 0.30%. The Company continues to improve the quality of information disclosure year after year,
strictly adhering to the law and the regulatory requirements of the China Securities Regulatory Commission and
the Shenzhen Stock Exchange. It provides multi-level, multi-angle, and comprehensive information on corporate
management, business operations, strategy, finance, industry, and other significant matters to investors,
continuously enhancing transparency and safeguarding investor interests. The sufficient and accurate
communication of the Company's intrinsic value aids investors' decision-making, especially those holding a
value investment philosophy.
To ensure seamless access to information for investors, iFLYTEK has consistently broadened and deepened
its communication channels. Following the release of regular financial reports, the Company promptly organizes
investor relations events. Recognizing investors' interest in engaging directly with the Company, iFLYTEK
introduced an innovative "Cloud Exhibition Hall." This virtual platform, accessible
at https://www.iflytek.com/exhibition.html, allows investors to virtually explore product information and
business applications in detail. Additionally, on April 23, 2024, iFLYTEK hosted a performance briefing from
3:00 PM to 5:00 PM, immediately after publishing its 2023 annual and the first quarter of 2024 reports,
facilitating both online and in-person discussions to proactively address investor queries.
In April 2024, the China Association for Public Companies, Shenzhen Stock Exchange, and Shanghai Stock
Exchange jointly held the first full-market investor relations evaluation, where iFLYTEK was selected as a case
of "Best Practice in Investor Relations Management" among listed companies. This accolade was further
highlighted by including iFLYTEK in the compilation of best practice cases.
4. Improving Corporate Governance to Promote High-Quality Development
iFLYTEK is committed to being a public company that operates in compliance with regulations, embedding
standardized governance into the core of its corporate culture. The Company continuously enhances its
governance framework, refines its corporate governance structure, and strengthens its comprehensive internal
control system. Through proactive governance activities, iFLYTEK ensures the effective functioning of its
governance structure which clearly delineates the responsibilities and powers of the Shareholders' Meeting, the
Board of Directors (both independent and non-independent directors), the Supervisory Board, and the
Management with respect to decision-making, execution, and supervision. The Board of Directors faithfully
implements the resolutions of the Shareholders' Meeting, fulfilling its duty of integrity, while the Management
diligently carries out the responsibilities entrusted by the Board of Directors. After a systematic evaluation by the
China Association for Public Companies, iFLYTEK has been honored with awards such as "Best Practice of the
Board of Directors," "Best Practice of the Supervisory Board," and "Best Practice in Corporate Governance,"
which provide strong guarantees for effective corporate governance and the protection of shareholders' rights and
interests.
Leveraging its internationally advanced AI technologies, iFLYTEK will continue to harness AI to enhance
its corporate governance. In compliance with established corporate governance and internal control standards,
the Company will employ AI and big data technologies to systematize and standardize its governance and
internal management processes, ensuring well-regulated operations. The governance framework encompassing
the Shareholders' Meeting, the Board of Directors, the Supervisory Board, and the Management will adhere to
the philosophy of “respecting the market and leveraging its power,” continuously enhancing operational
efficiency and decision-making science. This approach actively supports the Company's growth and strengthens
its position through the strategic use of the capital market.
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Interim Report 2024 of iFLYTEK Co., Ltd.(English Simplified Version)
Section IV Corporate Governance
I. Annual General Meeting and Extraordinary Shareholders’ Meeting Convened During this
Reporting Period
1. Shareholders' Meetings in H1 2024
Investor
Meeting Disclosu
Session Type participati Resolution
date re date
on
First The Announcement on the Resolution of the First Extraordinary
Extraordi
Extraordin General Meeting of Shareholders in 2024 was published on
nary
ary January January January 26, 2024, in Securities Times, China Securities Journal,
sharehol 37.77%
shareholde 25, 2024 26, 2024 Shanghai Securities News, Securities Daily, and on the
ders’
rs’ meeting CNINFO website at http://www.cninfo.com.cn (Announcement
meeting
in 2024 No. 2024-006).
The Announcement on the Resolution of the Annual General
2023
Annual Meeting of Shareholders for 2023 was published on May 14,
Annual May 13, May 14,
general 31.14% 2024, in Securities Times, China Securities Journal, Shanghai
General 2024 2024
meeting Securities News, Securities Daily, and on the CNINFO website
Meeting
at http://www.cninfo.com.cn (Announcement No. 2024-030).
2. Preferred shareholders with restored voting rights requesting the convening of an
extraordinary general meeting
□Applicable Not applicable
II. Changes in the Company's Directors, Supervisors and Senior Management Members
Applicable □Not applicable
Name Position Change Date Reason
Due to job adjustment, Liu Xin resigned from the position as
April 9,
Liu Xin Director Resigned director and accordingly, from the Strategic Committee of the
2024
Board.
Chair of the Board of April 9, Due to job adjustment, Liu Wei resigned from the positions as
Liu Wei Resigned
Supervisors 2024 supervisor and chair of the Supervisory Board.
Wang March 22, Due to work reasons, Wang Hongxin resigned from the position as
Director Resigned
Hongxing 2024 supervisor.
Chen May 13, Chen Hongtao was elected as director to fill the vacancy left by
Director Elected
Hongtao 2024 Liu Xin's resignation.
Cao Chair of the Board of May 13, Cao Yingchun was elected as supervisor to fill the vacancy left by
Elected
Yingchun Supervisors 2024 Liu Wei's resignation.
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Interim Report 2024 of iFLYTEK Co., Ltd.(English Simplified Version)
III. Profit Distribution and Conversion of Capital Reserves into Share Capital in H1 2024
□Applicable Not applicable
The Company plans not to distribute cash dividends, issue bonus shares, or use capital reserves to increase share
capital for this mid-year period.
IV. Implementation of the Company’s Stock Incentive Plan, Employee Stock Ownership
Plan, or Other Employee Incentive Measures
Applicable □Not applicable
1. Stock Incentive Plan
1) Restricted stock from the 2021 Stock Option and Restricted Stock Incentive Plan
On November 29, 2023, the Company's sixth Board of Directors at its fifth meeting approved the Proposal
on the Cancellation of Some Stock Options Under the Stock Incentive Plan. Due to 26 beneficiaries of the stock
option plan not exercising their options within the valid period, the Company will cancel 154,090 unexercised
stock options. For details, see the announcement published on November 30, 2023, in Securities Times, China
Securities Journal, Shanghai Securities News, Securities Daily, and on the CNINFO website
at http://www.cninfo.com.cn titled "Announcement on the Cancellation of Some Stock Options Under the Stock
Incentive Plan." Simultaneously, at the same meeting, the "Proposal on the Repurchase and Cancellation of
Some Granted Restricted Shares" was approved. As 84 employees who were recipients of the restricted stock
under the 2021 Stock Option and Restricted Stock Incentive Plan had resigned, the Company plans to repurchase
and cancel 177,640 shares of restricted stock still under restriction, adjusting the number of incentive recipients
to 1,987 people. For details, see the announcement published on November 30, 2023, in the aforementioned
publications and on the CNINFO website titled "Announcement on the Repurchase and Cancellation of Some
Granted Restricted Shares." This repurchase and cancellation was completed on February 23, 2024.
On April 21, 2024, the Company's sixth Board of Directors at its seventh meeting approved another
"Proposal on the Repurchase and Cancellation of Some Granted Restricted Shares." Due to some employees
leaving, failing performance assessments, or not meeting the conditions for lifting restrictions from the 2021
Stock Option and Restricted Stock Incentive Plan, the Company intends to repurchase and cancel 3,641,608
shares of restricted stock still under restriction from the 1,987 incentive recipients, adjusting the number of
incentive recipients to 1,936 people. For details, see the announcement published on April 23, 2024, in Securities
Times, China Securities Journal, Shanghai Securities News, Securities Daily, and on the CNINFO website
at http://www.cninfo.com.cn titled "Announcement on the Repurchase and Cancellation of Some Granted
Restricted Shares" (Announcement No. 2024-023). This repurchase and cancellation was completed on June 7,
2024.
2) Stock options from the 2021 Stock Option and Restricted Stock Incentive Plan
On April 21, 2024, the Company's sixth Board of Directors at its seventh meeting approved a "Proposal on
the Cancellation of Some Stock Options Under the Stock Incentive Plan." Due to some stock options from the
third exercise period of the Stock Option and Restricted Stock Incentive Plan not meeting the exercise conditions,
the Company canceled 252,832 stock options granted to 65 incentive recipients during this period. For details,
see the announcement published on April 23, 2024, in Securities Times, China Securities Journal, Shanghai
Securities News, Securities Daily, and on the CNINFO website at http://www.cninfo.com.cn titled
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Interim Report 2024 of iFLYTEK Co., Ltd.(English Simplified Version)
"Announcement on the Cancellation of Some Stock Options Under the Stock Incentive Plan" (Announcement No.
2024-024). This cancellation was completed on April 30, 2024.
2. Implementation of the Employee Stock Ownership Plan
□Applicable Not applicable
3. Other Employee Incentive Measures
□Applicable Not applicable
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Interim Report 2024 of iFLYTEK Co., Ltd.(English Simplified Version)
Section V Environmental and Social Responsibility
I. Major Environmental Issues
Is the Company or its subsidiaries key corporate polluters announced by the environmental protection authorities:
□ Yes No
Administrative penalties for environmental pollution during this reporting period:
Reason for
Impact on the operations of Corrective
Company name the Violation Penalty
the listed company measures
penalty
N/A N/A N/A N/A N/A N/A
Other environmental pollution information disclosed with reference key corporate polluters:
iFLYTEK is a technology company engaged in artificial intelligence and software application development,
which does not involve the discharge of industrial wastewater, waste gases, waste materials, or noise in its daily
operations. The Company implements a comprehensive approach for waste reduction encompassing
infrastructure building, daily operation and living, park environment development, and resource conservation,
demonstrating its commitment to sustainable development.
iFLYTEK has established a series of Measures for Waste Gas, Wastewater, Noise, and Solid Waste
Management, firmly adhering to the "Reduce, Reuse, Recycle" (3R) principle. The Company recycles waste
materials to ensure effective control of emissions of waste gases, wastewater, and solid waste. It standardizes
waste collection, reuse, recycling, and harmless treatment to reduce environmental pollution and create a greener,
more environment-friendly, and healthier work environment.
1. Waste Gas Management
iFLYTEK places a high priority on managing greenhouse gas emissions produced during its operations. It
enhances the identification and accounting of carbon emissions and formulates effective measures to reduce
carbon emissions across the Company's operations and value chain.
Types of Greenhouse Gas Emissions
Type 1 Emissions from the combustion of fuels, including emissions from all vehicles the Company owns
Type 2 Indirect emissions from consumption of purchased electricity, heat, and steam
Emissions associated with purchased goods and services, business travel, employee commuting, waste disposal,
Type 3 emissions from the sale and use of products, transportation and distribution activities, investments, leased assets,
and franchise operations
In the first half of 2024, the carbon emissions from daily consumption of electricity (excluding the energy
consumption for public capabilities such as IDC data centers) at iFLYTEK's headquarters 'increased by 5.50%
year on year, mainly because, when economic and social activities struggled to recover in January 2023, many
people were working from home and the Company's electricity consumption was relatively low. However,
carbon and CO2 emissions per million RMB yuan of output value saw a decrease of 8.82% and 11.11%
respectively in the first half of 2024 compared to the same period last year.
Carbon
Change in CO2 emissions Change in
emissions
carbon per million CO2
Carbon Change per million CO2 Change in
Half emissions per yuan of output emissions per
emissions in carbon yuan of emissions CO2
year million yuan value million yuan
(tons emissions output value (tons) emissions
of output (tons/million of output
(tons/million
value yuan) value
yuan)
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Interim Report 2024 of iFLYTEK Co., Ltd.(English Simplified Version)
2024 2,846.40 5.50% 0.31 -8.82% 10,433.33 5.50% 1.12 -11.11%
2023 2,697.97 - 0.34 - 9,889.24 - 1.26 -
The main sources of waste gas emissions in the Company's operations are the exhaust emissions from
business and commuting vehicles and the fumes from the canteen operations. The company has tried to reduce
waste gas emissions using the following methods:
Strengthening vehicle management and controlling waste gas emissions using fume purification devices;
Formulating the Administrative Measures for Vehicle Management to optimize fuel use and vehicle
maintenance;
Introducing electric buses in transportation services;
Encouraging green travel and reducing commuting vehicle use through carpooling subsidies.
2. Wastewater Management
The main types of wastewater generated during the Company's operations are domestic wastewater and
canteen processing wastewater. The wastewater is managed through a separate sewer design, where toilet sewage
is directed into the municipal sewage network; other wastewater, such as floor washing water, is discharged into
the sewage network within the park; and canteen wastewater is treated through oil separation and sedimentation
before being discharged into the municipal sewage network.
3. Solid Waste Management
Each department within the Company is responsible for collecting, labeling, and storing solid waste in their
respective areas and at the workplace according to solid waste classification requirements. Wastes are labeled as
"Recyclable Solid Waste," "Non-recyclable Solid Waste," "Disposable Hazardous Solid Waste," and "Non-
disposable Hazardous Solid Waste." Various types of solid waste, piled at designated locations, are uniformly
collected and transported by the contractor responsible for solid waste management.
Solid Waste Classification
Recyclable Solid Waste Packaging materials, scrap wires, etc.
General Solid Waste
Non-recyclable Solid Waste Domestic waste, kitchen waste, etc.
Solid waste with oil, used gloves, used carbon boxes, used
Disposable Hazardous Solid Waste
toner cartridges, etc.
Hazardous Solid Waste
Non-disposable Hazardous Solid Used batteries, spent fluorescent tubes, used computer screens,
Waste used electronic components, etc.
The Company regularly inspects the storage and disposal of various types of waste, implementing multiple
measures to effectively avoid the generation of wastes. For electronic products such as old servers, upgrades and
modifications are carried out to extend their service life; for retired and scrapped electronic equipment, they are
disassembled to recycle usable parts; for electronic office equipment like laptops, employees can apply for
buyback and personal reuse after a certain period of use; and hard drives are demagnetized and damaged to
produce recyclable crushed particles.
4. Packaging Management
The Company continues to promote green packaging, reducing the use of polluting packaging materials and
increasing the use of green packaging materials through various arrangements. Green and environment-friendly
packaging products are procured and applied more extensively, with only green and recyclable materials used for
both internal and external logistics packaging.
5. Noise Management
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Interim Report 2024 of iFLYTEK Co., Ltd.(English Simplified Version)
The Company places importance on maintaining a quiet and peaceful environment in office areas and
effectively implements noise control measures. Power distribution rooms and pump rooms are independently
located in dedicated equipment rooms, and important facilities and equipment are equipped with vibration
reduction devices or undergo technical upgrades.
Measures taken to reduce carbon emissions during this reporting period and their effects
Applicable □Not applicable
iFLYTEK's Board of Directors has established a dedicated ESG committee to oversee ESG-related
matters, including risks and opportunities related to climate change and carbon neutrality actions. Under the
guidance of the Board's ESG committee, iFLYTEK has established the following climate change response
framework:
iFLYTEK’s Climate Change Response Framework
The Board's ESG Committee is responsible for overseeing ESG-related matters, including risks and opportunities
Governance
associated with climate change and carbon neutrality actions.
Policy and Implementing carbon
Regulatory emission control
Risks policies, etc.
Technology
Technological
innovations to lower
Risks
emissions
Market preference
Conducting quantitative analysis Market Risks for low-carbon Promoting the efficient use of
and assessment of climate change products clean and low-carbon energy
Strategy risks and opportunities, and sources; promoting the R&D and
Reputational Public preference for
customizing climate risk response application of new technologies
Risks green technologies
methods and materials
Emergent Typhoons, floods,
Physical Risks etc.
Changes in
Chronic precipitation, rising
Physical Risks average
temperatures, etc.
Identifying climate risks and opportunities related to the Company, incorporate climate risk management into the
Risk
Company's risk assessment and management system, and developing measures for managing key risks and
Management
opportunities.
Total greenhouse
Carbon Emissions Promoting carbon neutrality
gas emissions
Metrics and Total energy Promoting the procurement of green
Energy
Targets consumption electricity
Waste disposal Reducing waste per unit of revenue year by
Wastes
volume year
iFLYTEK considers environmental technology innovation in response to climate change as one of the key
strategic goals of its ESG framework. Recognizing the significant role that artificial intelligence and big data
play in areas such as carbon reduction, carbon monitoring, green finance, and carbon emission trading,
iFLYTEK is actively increasing its investment in environmental technologies. Leveraging its proprietary, world-
leading AI technologies, iFLYTEK is committed to promoting the application of environmental technology and
assisting in reducing environmental pollution and stress. The Company's efforts are aimed at using AI to support
low-carbon and eco-friendly initiatives.
1. Green Innovation Investment and Optimization of IDC Carbon Emissions
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Interim Report 2024 of iFLYTEK Co., Ltd.(English Simplified Version)
iFLYTEK's data center actively aligns with the national dual-carbon goals and aims to set regional
benchmark for green data centers. By optimizing the energy structure, applying low-carbon technologies, and
implementing energy efficiency management, carbon emissions are significantly reduced.
1) Optimization of energy structure
Purchasing and using green electricity is the most important and direct method to reduce carbon emissions.
The purchase of green electricity offsets carbon emissions. Starting from April 2024, iFLYTEK has included
renewable energy in the power supply of its B3 data center, utilizing renewable green energy sources such as
wind and photovoltaic power to optimize the energy structure. By May, the proportion of green electricity has
reached 90%.
iFLYTEK's Green Electricity Transaction Certificate
2) Application of low-carbon technologies
High-efficiency power supply and distribution products: The 10KV AC input DC uninterruptible power
supply system called "Panama power architecture" is the first of its kind to be applied in Anhui Province;
High-efficiency refrigeration/cooling products: They include magnetic levitation phase change cooling (the
first of its kind to be applied in Anhui Province), fluorine pump multi-loop natural cooling technology and
units, water thermal storage technology, and natural plate heat exchangers;
AI intelligent group control system: Using reinforced learning algorithms, the control system will select the
optimal number of cooling water pumps and cooling towers, and frequency control strategy based on the
current chiller load and current climate conditions. This reduces the power consumption of the HVAC
system and also optimizes its operation, improving the health of the air conditioning system operation.
3) Energy efficiency management
At the corporate policy level, the Company has established Measures for Energy and Resource
Conservation Management, aiming to scientifically and reasonably enhance the efficiency of energy and resource
utilization, and promote the conservation and recycling of energy and resources. Clear provisions are made on
the division of responsibilities among various departments and the rules of work.
At the departmental policy level, the Company's data center has formulated: a. the Green Procurement Rules,
which encompasses environmental protection, resource conservation, safety and health, recycling, low carbon,
and recycling, and encourages the procurement and use of energy-saving, water-saving, and environment-
friendly materials. The data center's green procurement rules contain well-defined procurement standards; b. the
Energy Consumption Rules, which ensures the rational planning and use of electricity, cooling, and water
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Interim Report 2024 of iFLYTEK Co., Ltd.(English Simplified Version)
consumption in the data center, and dictates the statistics and analysis of energy consumption, the establishment
of energy-efficiency task teams, and the implementation of equipment energy-efficiency methods; c. the Waste
Material Recycling and Scrap Disposal Rules, which aims at rational use of material resources, aligns with the
national carbon peaking and carbon neutrality initiative, improves the green supply chain management system,
manages the full-life-cycle carbon emissions, and clearly stipulates the waste material management methods and
classification at the data center.
2. Scientific Utilization of Resources and Commitment to Environment Friendliness
iFLYTEK takes green development its path towards a sustainable future, paying close attention to the
ecological impact of its operations and value chain. Guided by its commitment to being "green, low-carbon, and
recycling," the Company adopts vigorous methods to control pollution emissions, and advocates green concepts
as part of its corporate culture. It follows a multi-faceted approach encompassing infrastructure building,
operation and daily life management, campus environment governance, and resource conservation and utilization.
iFLYTEK strictly implements relevant national and industry regulations, insisting on the alignment between the
Company's own development and the protection of the environment.
1) Advocating green office practices
iFLYTEK actively scales up its investment in green office practices, forming a work style that is energy-
efficient, environment-friendly, economical, and healthy. The Company has improved its OA system and
iFLYREC online meeting systems, promoting "intelligent paperless office" in certain scenarios. By advancing
digital management, it has deployed intelligent AI applications in multiple scenarios such as "AI+Office”,
“AI+Recruitment”, “AI+Finance”, “AI+Campus," enhancing efficiency and aiding energy saving and emissions
reduction. The Company places special emphasis on investment in energy efficiency, emissions reduction, and
greening in the daily operation and living environment. The Company take all possible measures to ensure
energy conservation and consumption reduction during equipment use, scientifically and reasonably improving
the efficiency of energy and resource utilization, and promoting the conservation and recycling of energy and
resources.
2) Incentivizing carbon reducing behaviors
To encourage its employees to reduce travel by fossil fuel vehicles, iFLYTEK has developed an internal
carpooling software called "AI Pool." It organizes employees driving private cars to pick up colleagues on their
way to and from work. On one hand, this policy provides free ride services for employees, and on the other hand
offers vehicle maintenance, car washing services, and subsidies for car owners. Currently, AI Pool has covered
19 cities including Hefei, Wuhu, Qingdao, and Guangzhou, serving about 2,000 passengers per day, equivalent
to a daily reduction of 2,000 vehicles on the road.
To encourage its employees to use alternative-fuel vehicles, the Company has installed AC and DC
charging piles (with two charging guns per pile) at its headquarters campus for employees to charge their
vehicles. It also provides charging subsidies for employees who drive electric cars to workplaces, with a subsidy
of 1 RMB yuan/kilometer.
The Company strongly advocates green commuting, providing support for employees' commuting needs by
setting up 30 regular bus routes, shuttles to and from subway stations, and evening buses. The Company
encourages employees to use public transportation or alternative fuel vehicles more often in daily living. The
Company also advocates the "135" green travel mode, which stands for “walking within 1 kilometer”, “cycling
within 3 kilometers”, and “taking public transportation within 5 kilometers”, which urges its employees to "walk
if they can, cycle if they can't walk, take public transport if they can't cycle, and drive only when necessary." It
encourages its employees to adopt healthy and environment-friendly travel methods and to be practitioners of
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Interim Report 2024 of iFLYTEK Co., Ltd.(English Simplified Version)
green travel.
3) Strengthening environmental supervision
The Company has established rules and regulations such as the Procedures Concerning Nonconformity,
Corrective Actions, and Preventive Measures and the Objectives, Targets, Management Plan and Control
Procedures for inspecting, assessing, and controlling the environmental performance of each business
unit/department, providing a framework for environmental protection.
The Company monitors the consumption of water and electricity on a weekly basis, supplemented by
irregular spot checks, to strengthen the awareness of resource conservation and environmental protection among
its employees and business units/departments.
The Company urges suppliers to fulfill their energy responsibilities, integrates supplier energy usage into its
assessment framework, and generates weekly reports from data analysis to identify any irregularities. It also
continuously optimizes working rules and establishes a mechanism for evaluating results.
4) Energy-efficiency measures
iFLYTEK has formulated the Measures for Energy and Resource Conservation Management and the
Implementation Plan for Enhancing Energy Efficiency and Consumption Control, working to reduce the
ecological impact of its operations and value chain. It implements energy-saving measures in every aspect of its
operations, exploring an economic model that supports the carbon peaking and carbon neutrality goals of China.
Saving Water and Electricity: The Company uses energy-efficient lighting products in office spaces;
optimizes lighting circuits, increases area control, strengthens patrols of unoccupied office areas after work to
turn off unnecessary lighting, in order to save electricity. It selects water-saving fixtures to realize water
conservation. During holidays, it partially suspends the use of elevators, water heaters, etc., to reduce energy
consumption.
Saving Energy: The Company strengthens the management of energy consumption. It enhances the daily
inspection and maintenance of energy pipelines to eliminate leaks, optimizes the efficiency of equipment
operation, and ensures safety. The Company opts for economical routes and carpool for traveling.
Saving Paper. The Company advocates paperless office practices and the use of paper certified by the
Forest Stewardship Council (FSC). It advocates paper recycling, prioritizes double-sided printing and black-and-
white printing, and reduces the use of toner cartridges. Except for special requirements for office paper that must
be single-sided, all others are double-sided or distributed in electronic format to reduce paper consumption.
Air Conditioning: The Company strengthens the management over the use of air conditioning, turning on
air conditioning when the temperature is higher than 30℃ in summer, with a centralized control setting of 26℃-
30℃; in winter, air conditioning is turned on when the temperature is below 10℃, with a centralized control
setting of 19℃-22℃. On weekdays, air conditioning is centrally turned off at 17:45, 20:00, and every two hours
after 20:00, while on weekends, an additional centralized turn-off is added at 11:00 and 15:00.
Elevators: The Company distinguishes working hours and areas, and sets the operation time and the
number of available elevators according to the peak and valley periods of use. During holidays, it suspends the
use of elevators and other equipment to reduce energy consumption.
3. Green Industry Applications
iFLYTEK supports “carbon peaking and carbon neutrality" goals in various industry sectors, using artificial
intelligence to facilitate the creation of green industry applications. iFLYTEK works together with relevant
research institutions to create innovative industry applications for various scenarios where carbon peaking and
carbon neutrality are mandated, including Nankai University, the Institute of Computing Technology of the
Chinese Academy of Sciences, and Northeastern University.
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Interim Report 2024 of iFLYTEK Co., Ltd.(English Simplified Version)
Based on perceptual and cognitive intelligence, iFLYTEK has built an energy efficiency control system and
various predictive models, creating an AI energy-saving “super brain” solution with integrated software and
hardware that effectively improves energy efficiency and reduces operational and maintenance costs. For
example, iFLYTEK has helped telecom operators achieve energy conservation and emissions reduction in base
station machine rooms, which has been promoted in multiple provinces.
Based on the urban platform and digital infrastructure, iFLYTEK actively explores methods for carbon
emission assessment, detection, and analysis, as well as decision support models, and provides low-carbon
planning and optimization solutions for urban managers, supporting the green and low-carbon development of
cities. For instance, targeting the typical scenario of vehicle exhaust emissions (according to estimates by the
China Automotive Technology and Research Center, automotive carbon emissions account for more than 80% of
carbon emissions in China's transportation sector and about 7.5% of China’s total carbon emissions), iFLYTEK's
"Transportation Super Brain" solution uses AI to learn from traffic data, empowering urban traffic management
and the translation of data into smart decisions. Taking the Transportation Super Brain of Hefei for example. By
fully integrating traffic data into the monitoring platform, the “super brain” recognizes traffic junctions and road
sections, gives real-time congestion alerts, and digs out frequent congestion points, providing scientific data
support for traffic administration, effectively improving traffic efficiency, and helping reduce carbon emissions.
To promote the development and application of environment solutions, the iFLYTEK Open Platform has set
up a section dedicated to smart environment protection (https://www.xfyun.cn/industry/ai-ep). The platform has
produced more than ten industry solutions such as intelligent environment and meteorological monitoring,
intelligent environmental protection, and intelligent waste sorting solutions, fully empowering smart
environmental protection, allowing urban developers to use iFLYTEK’s AI capabilities more conveniently in
scenarios such as pollution monitoring and waste recycling and classification.
4. Climate Change Response
iFLYTEK pays close attention to the impact of global climate change, engages in actions to address it, and
creates exemplary carbon-neutral applications.
iFLYTEK's Artificial Intelligence R&D and Production Base is creating a model of green building:
Approaching from an urban design perspective, it proposes the "Park X" concept and the "Campus X" spatial
structure, shaping a brand-new office space layout, and transforming the entire headquarters campus into an
ecologically harmonious “park." Meanwhile, it maintains the ecology-friendliness of the buildings themselves by
adding solar photovoltaic panels, continuous terraces covered with green plants, and rooftop gardens, making the
office space into a real “park” by ensuring exposure to sunlight and natural harmony.
The Company adheres to the principles of "greenness and energy efficiency" in the development of the
campus. Utilizing large language model capabilities for operation and maintenance strategy recommendation in
building design and construction, the Company intelligently generates operation and maintenance plans and
monitors the status of various equipment in real-time. When employees leave office areas or meeting rooms are
vacant, the system will recognize and automatically perform actions such as turning off lights and air
conditioning, intelligently reducing energy consumption. At the same time, in various corners of the campus,
photovoltaic power generation equipment is also quietly collecting clean energy. The integration of green energy
and office energy-saving measures makes the park a truly "green" space. After selection and recommendation,
and expert review, it has successfully been included as a 2023 Anhui Province Smart Construction Pilot Project.
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Interim Report 2024 of iFLYTEK Co., Ltd.(English Simplified Version)
II.Fulfillment of Social Responsibilities
As a leading AI company in China, iFLYTEK is committed to building a better world with AI, and fulfills
social responsibilities to advance social progress as well as AI technology and industry development. In the first
half of 2024, the Company's main efforts to fulfill its social responsibilities, especially regarding poverty
alleviation and rural revitalization, are as follows:
1. “AI for Inclusive Education” Initiative to Reinforce Rural Education
iFLYTEK has extended AI applications to rural schools, aiming to uplift the quality of education in
underprivileged areas and promote equal access to high-quality educational resources. This initiative addresses
the critical need for educational equity, covering the "last mile" of compulsory education.
As the foundation of China's education system, the development of small rural schools is essential for
ensuring access to quality education for all, especially in remote areas. Given the current distribution challenges
of excellent teachers, iFLYTEK focuses on improving educational quality in rural schools with limited resources
by using technology to enhance the availability of high-quality educational materials and to encourage the
sharing of these resources between urban and rural schools.
In this context, iFLYTEK has launched the AI for Inclusive Education initiative, which aims to break the
cycle of poverty by providing support at the root. The initiative brings AI technology to rural schools, offering
educational tools, toys, curricula, teacher training, and volunteer teaching services. This enables children in less
developed areas to access advanced educational resources and to benefit from technological progress. Since its
launch in 2017, the initiative has been implemented in over 1,000 schools nationwide, offering AI-based teaching
solutions to innumerable teachers and students.
In April 2024, under the “AI for Inclusive Education” initiative, iFLYTEK donated an AI+Mental Health
system and equipment and a data-driven customized teaching system to Tonghua No.1 Middle School in Jilin
Province. This included a smart mental health platform, an AI psychological companion, an AI counseling room,
and data display screens as part of the smart education solution. In July, in collaboration with China Women's
Development Foundation, the initiative was extended to Neihuang County, Anyang City, Henan Province, where
iFLYTEK’ s AI learning devices were donated to primary school students, allowing them to experience
personalized learning through AI.
2. Exploring New Paths for Industrial Development to Boost Rural Industry Revitalization
iFLYTEK assists in enhancing local forestry infrastructure, supporting rural tourism projects, and backing
infrastructure development in backward “ revolutionary base areas ” to increase local employment
opportunities and enhance the industrial development momentum, thereby boosting rural revitalization.
In July 2021, iFLYTEK entered into a donation agreement with Jing County, a revolutionary base area,
committing 10 million RMB yuan for ecological conservation and rural revitalization efforts in Xiaokang Village,
Caicheng Town of the county. The initiative prioritized the ecological protection of Moso bamboo and the
growth of "forest floor" industries. As a result, all 25 eligible forest roads in Caicheng Town were constructed
and expanded to a total length of about 21.1 kilometers, through an investment of approximately 1.05 million
RMB yuan. This infrastructure facilitated the transportation of around 18,050 tons of Moso bamboo, leading to
sales revenue of approximately 9.3 million RMB yuan. The road development also reduced the cost of harvesting
Moso bamboo by 14-18 RMB yuan per 100 kilograms, which translated to a net income increase of over 2.8
million RMB yuan for more than 900 forestry families.
Since the initiative's inception, iFLYTEK has supported Caicheng Town by establishing a bamboo forest
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Interim Report 2024 of iFLYTEK Co., Ltd.(English Simplified Version)
camping site in Xiaokang Village equipped with beach vehicles, go-karts, and a horse-riding field. This project
has provided employment for over 20 villagers and has brought an annual revenue of about 1 million RMB yuan
to the village. Moreover, iFLYTEK has been instrumental in fostering local industrial development. Inspired by
the traditional Dragon Boat Festival, the Company has processed Moso bamboo through 11 steps to produce
cultural and creative artifacts, thereby creating additional employment and income opportunities for the local
people.
3. Sound Horizons: The iFLYTEK Hearing Inclusion Project
iFLYTEK utilizes AI to assist individuals with hearing impairments in better integrating into society,
harnessing the power of technology to serve more people in need, and promoting the creation of a more inclusive
and friendly social environment for the hearing-impaired.
In February 2024, iFLYTEK Medical collaborated with the Audiology Development Foundation of China
and the producing company of the film Article 20 to initiate the "Sound Horizons: The iFLYTEK Hearing
Inclusion Project." On the occasion of the 25th International Ear Care Day on March 3, the project delivered a
significant public welfare event in Beijing, where iFLYTEK Medical, together with the Audiology Development
Foundation, demonstrated their commitment to the hearing-impaired. This event included a donation ceremony
for iFLYTEK’s smart hearing aid, through which 1,000 hearing-impaired individuals, with priority given to
those from financially disadvantaged backgrounds, received the aids. These AI-enhanced hearing aids are
designed to remove communication barriers, enabling recipients to hear the world's sounds. The project's impact
extended online, engaging nearly 100,000 netizens in advocacy efforts for the hearing-impaired.
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Interim Report 2024 of iFLYTEK Co., Ltd.(English Simplified Version)
Section VI Significant Events
I. Commitments by the Company's de facto controller, shareholders, related parties, and
acquirers, as well as the company itself, that were fulfilled during this reporting period or
remained unfulfilled as of the end of this reporting period
Applicable □Not applicable
Performa
Commitment Made by Type Content Time Duration
nce
1. The Avoiding competition
Company's de within the same industry,
facto Commitmen regulating related-party
Period of
controllers (Liu t by the de transactions, and November 20,
acting in Ongoing
Qingfeng and facto preventing the misuse of 2014
concert
USTC controller funds; ensuring the
Holdings Co., independence of the listed
Ltd.) company
Commitment to avoiding
Period of
2. Yang Jun, competition within the
Other being a
Wang Binbin, same industry, and December 9,
commitment shareholder Ongoing
Xu Guiqin & commitments to reducing 2016
s of the listed
Zhu Peng and regulating related-party
Commitment company
transactions, etc.
made in the
3. Beijing Le
acquisition
Jiao Rong
report or
Zhi
Statement of
Investment
Changes in
Development
Owners' Equity
Partnership
Company Commitment to avoiding
Period of
(Limited competition within the
Other being a
Partnership), same industry, and December 9, Complet
commitment shareholder
Beijing Jia Hui commitments to reducing 2016 ed
s of the listed
Jin Yuan and regulating related-party
company
Investment transactions, etc.
Development
Partnership
Company
(Limited
Partnership) &
Zhang Shaohua
1. During my tenure at
iFLYTEK, I will not
transfer more than twenty-
five percent of the total
shares I hold in iFLYTEK
in any given year.
Furthermore, should I
resign from iFLYTEK, I
1. Liu Period of
Commitment pledge not to transfer any
Qingfeng, the Commitmen acting as a de
made at IPO or shares of iFLYTEK that I April 24, 2008 Ongoing
Company's de t at IPO facto
refinancing hold within six months
facto controller controller
following my resignation.
2.
3. While I hold shares in
iFLYTEK, I will not
engage in any business that
competes with or is similar
to iFLYTEK's operations. I
will not directly invest in or
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Interim Report 2024 of iFLYTEK Co., Ltd.(English Simplified Version)
acquire any enterprise or
project that competes with
or is similar to iFLYTEK's
business, nor will I provide
any form of assistance to
competitors. In the event
that I become involved in
any competition with
iFLYTEK, regardless of
the circumstances, I will
actively implement
effective measures to
relinquish such competitive
activities.
4.
Commitment to avoiding
2. Ningbo Saite Period of
competition within the
Equity Other being a
same industry, and
Investment commitment March 17, 2017 shareholder Ongoing
commitments to reducing
Partnership s of the listed
and regulating related-party
Enterprise company
transactions, etc.
3.Nanjing Commitment to avoiding
Period of
Chuangyi competition within the
Other being a
Investment same industry, and Complet
commitment March 17, 2017 shareholder
Management commitments to reducing ed
s of the listed
Center (Limited and regulating related-party
company
Partnership) transactions, etc.
The Company pledges not
to provide any financial
assistance, including loans
or guarantees, to the
incentive recipients for
obtaining stock options or
restricted shares under this
plan. The recipients pledge
Period of
Other to return all benefits
Stock incentive The Company August 26, implementing
commitment received from this plan to Ongoing
commitment and rewardees 2021 the stock
s the Company if it is
incentive plan
determined that the
Company's eligibility to
grant or exercise these
rights is invalidated due to
false statements,
misleading information, or
significant omissions in the
disclosed documents.
Has the
commitment
Yes
been performed
in time?
If the
commitment is
not fulfilled by
the deadline,
provide a
detailed
explanation of Not applicable
the reasons for
the incomplete
fulfillment and
outline the
subsequent
work plan
55
Interim Report 2024 of iFLYTEK Co., Ltd.(English Simplified Version)
II. Non-operating Fund Occupancy by the Controlling Shareholder and Other Related
Parties of the Listed Company
□Applicable Not applicable
There were no instances of non-operating fund occupancy by the controlling shareholder or other related parties
regarding the listed company during this reporting period.
III. Non-compliant External Guarantees
□Applicable Not applicable
There were no instances of non-compliant external guarantees during this reporting period.
IV. Appointment and Dismissal of Accounting Firm
Has the semi-annual financial statement been audited?
Yes No
The Company's semi-annual statement has not been audited.
V. Explanation by the Board of Directors and the Board of Supervisors, if any, regarding the
non-standard audit report issued by the accounting firm for the first half of 2024
□Applicable Not applicable
VI. The Board of Directors' Explanation to the Non-standard Audit Report for Year 2023
□Applicable Not applicable
VII. Bankruptcy Reorganization
□Applicable Not applicable
The Company did not undergo any bankruptcy reorganization proceedings during the reporting period.
VIII. Legal Proceedings
Material Legal and Arbitration Proceedings
□Applicable Not applicable
During H1 2024, the Company did not undergo any significant litigation or arbitration proceedings.
Other Litigation Proceedings
□Applicable Not applicable
IX. Penalties and Rectifications
□Applicable Not applicable
The Company did not incur any penalties or undertake any rectifications during this reporting period.
56
Interim Report 2024 of iFLYTEK Co., Ltd.(English Simplified Version)
X. Integrity Issue of the Company and Its Controlling Shareholder and De Facto Controller
□Applicable Not applicable
XI. Significant Related-Party Transactions
1. Related-party Transactions Related to Day-to-day Operations
Applicable □Not applicable
Settl
Trans eme Avai
Appro
Pricin actio Perce ved nt lable
Type Conte g Tr n ntage Trans Met Mar
Exce
of nt of Princi an Amo of hod ket
action eding
Relate Relate ple of sa unt Total of Price
Limit the Date
Relate Relati d- d- Relate cti (in Simil (in ten Rela for
Appr of Index to
d onshi Party Party d- on ten ar thous ted- Simi
oved disclos disclosure
party p Trans Trans Party Pri thous Trans Part lar
and Limit ure
action action Trans ce and action y Tran
RMB)
action RMB s Tran sacti
yuan) yuan sacti ons
on
）
Invest The
China
or Routi Sale Announceme
Mobil
with ne of nt on
e
signifi Relate goods Ban Anticipated
Limit April
cant d- and Marke N/ 51,34 5.51 150,0 k General
ed No No 23,
influe Party provis t price A 7.45 % 00 trans Related-Party
and 2024
nce Trans ion of fer Transactions
its
on the action servic in
subsid
Comp s es 2024(Announ
iaries
any cement No.:
2024-018)
published on
the Securities
Invest
China Times, the
or Routi Sale
Mobil China
with ne of
e Securities
signifi Relate goods Ban
Limit April Journal, the
cant d- and Marke N/ 3,781 0.81 15,00 k
ed No No 23, Shanghai
influe Party provis t price A .23 % 0 trans
and 2024 Securities
nce Trans ion of fer
its News, the
on the action servic
subsid Securities
Comp s es
iaries Daily and
any
CNINFO
(www.cninfo.
com.cn)
55,12 165,0
Total -- -- -- -- -- -- -- --
8.68 00
Details of Large-Value Goods
Not applicable
Returns
For the fiscal year 2024, it is estimated that routine related-party transactions involving the
"Sale of goods and provision of services" with China Mobile Communications Co., Ltd. and
its subsidiaries China Mobile Limited will amount to 150,000.00 million RMB yuan, with
Actual performance of the
an actual transaction amount of 51,347.45 million yuan occurring from January to June
estimated total routine related-
2024. Additionally, it is estimated that routine related-party transactions involving the
party transactions by category, if
"Purchase of goods and acceptance of services" will amount to 15,000.00 RMB million
any, during this reporting period
yuan, with an actual transaction amount of 3,781.23 million RMB yuan occurring during the
same period. In summary, the total estimated amount for routine related-party transactions
with China Mobile Communications Co., Ltd. and its subsidiaries for 2024 is 165,000.00
57
Interim Report 2024 of iFLYTEK Co., Ltd.(English Simplified Version)
million RMB yuan, with an actual total transaction amount of 55,128.68 million RMB yuan
from January to June 2024, which does not exceed the total estimated transaction amount
for the year.
Reasons for significant differences
between the transaction price and
Not applicable
the market reference price, if
applicable
2. Related-party Transactions Arising from Acquisition or Sales of Assets or Equity
□Applicable Not applicable
The Company did not engage in any related-party transactions arising from acquisition or sales of assets or
equity during this reporting period.
3. Related-party Transactions for Joint External Investment
□Applicable Not applicable
The Company did not conduct any related-party transactions for joint external investment during this reporting
period.
4. Related Creditor's Rights and Debts
□Applicable Not applicable
The Company did not incur any related creditor's rights and debts during this reporting period.
5. Transactions with Related Finance Companies
□Applicable Not applicable
The Company did not conduct any deposit, loan, credit or other financial business with any related finance
company or such finance company's related parties.
6. Transactions Between Finance Companies Controlled by the Company and Their Related
Parties
□Applicable Not applicable
None of the finance companies controlled by the Company conducted any deposit, loan, credit or other financial
business with their related parties.
7. Other Material Related-party Transactions
□Applicable Not applicable
The Company did not engage in other material related-party transactions during this reporting period.
XII. Major Contracts and Their Performance
1. Trust, Sub-contract and Lease
1) Trust
□Applicable Not applicable
The Company did not engage in any trust arrangements during this reporting period.
2) Sub-contract
□Applicable Not applicable
The Company did not enter into any contracting agreements during this reporting period.
58
Interim Report 2024 of iFLYTEK Co., Ltd.(English Simplified Version)
3) Lease
□Applicable Not applicable
The Company did not enter into any leasing agreements during this reporting period.
2. Material Guarantees
Applicable □Not applicable
Currency amounts in ten thousand RMB yuan
External guarantees provided by the Company and its subsidiaries (excluding those to subsidiaries)
Actual
Guarante Related
Date of Guarant
Name of the e Guarant Type of Collater Counter- Fulfille Party
Actual ee Guarante
Guarantee Amount ee Guarant al (if guarantee d or Guarant
Occurren Amount e Period
Recipient Disclosu Amount ee any) (if any) Not ee or
ce Provide
re Date Not
d
June 19,
2020;
Twelve
Decembe All
Joint months
October r 29, financial
and from the
Financial 25, 2020; leasing
several date of
leasing 2019; 50,000 Decembe 1,236.07 customers No No
liability approval
customer April 23, r 30, provided
guarante by the
2024 2020; counter
e Board of
Novemb guarantee
Directors
er 30,
2021
From the
Tongling date of
Developme approval
Tongling Joint
nt by the
Tianyuan June 14, and
Investment Board of
Equity April 19, 2019; several
24,000 10,000 Group Directors No No
Investment 2019 March liability
Corporatio to the
Group 22, 2021 guarante
n provided expiratio
Corporation e
counter n of the
guarantee project's
loan term
Ma'anshan
Twelve
Big Data
April subseque
Asset 17,160 No No
23, 2024 nt
Operation
months
Co., Ltd.
Total amount of
Total amount of
external guarantees
approved external
91,160 actually provided 0
guarantees during this
during this reporting
reporting period (A1)
period (A2)
Total amount of the
Total amount of
outstanding external
approved external
guarantees actually
guarantees as at the end 91,160 11,236.07
provided as at the
of the reporting period
end of the reporting
(A3)
period (A4)
Guarantees provided by the Company to its subsidiaries
Actual
Guarante Related
Date of Guarant
Name of the e Guarant Type of Fulfille Party
Actual ee Guarante
Guarantee Amount ee Guarant Collater Counter- d or Guarant
Occurren Amount e Period
Recipient Disclosu Amount ee al (if guarantee Not ee or
ce Provide
re Date any) (if any) Not
d
IFLYTEK April 30,000 General Twelve No No
59
Interim Report 2024 of iFLYTEK Co., Ltd.(English Simplified Version)
(Internation 23, 2024 guarante subseque
al) Limited e; joint nt
and months
severabl
e
liability
guarante
e
General
guarante
e; joint
iFLYTEK Twelve
and
(Beijing) April subseque
10,000 severabl No No
Technology 23, 2024 nt
e
Co., Ltd. months
liability
guarante
e
General
guarante
Shenzhen e; joint
Twelve
iFLYTEK and
April subseque
Interactive 5,000 severabl No No
23, 2024 nt
Electronics e
months
Co., Ltd. liability
guarante
e
General
guarante
e; joint
iFLYTEK Twelve
and
(Shanghai) April March subseque
15,000 47 severabl No No
Technology 23, 2024 29, 2024 nt
e
Co., Ltd. months
liability
guarante
e
General
guarante
e; joint
Anhui Jixun Twelve
and
Information April subseque
12,000 severabl No No
Technology 23, 2024 nt
e
Co., Ltd. months
liability
guarante
e
General
guarante
Hefei e; joint
Twelve
iFLYTEK Septembe and
April subseque
Doxent 20,000 r 27, 6,629.31 severabl No No
23, 2024 nt
Technology 2023 e
months
Co., Ltd. liability
guarante
e
General
guarante
e; joint
Anhui Twelve
and
Institute of April May 17, subseque
5,860 severabl No No
Information 23, 2024 2022 nt
e
Technology months
40,000 liability
guarante
e
Anhui General Twelve
Institute of April March guarante subseque
2,545.82 No No
Information 23, 2024 22, 2024 e; joint nt
Technology and months
60
Interim Report 2024 of iFLYTEK Co., Ltd.(English Simplified Version)
severabl
e
liability
guarante
e
General
guarante
e; joint
Anhui Twelve
and
Institute of April July 5, subseque
7,000 severabl No No
Information 23, 2024 2023 nt
e
Technology months
liability
guarante
e
General
guarante
e; joint
Anhui Twelve
Septembe and
Tingjian April subseque
15,000 r 27, 7,806.15 severabl No No
Technology 23, 2024 nt
2023 e
Co., Ltd. months
liability
guarante
e
General
guarante
e; joint
Anhui Twelve
Septembe and
Zhixue April subseque
15,000 r 27, 1,599.28 severabl No No
Technology 23, 2024 nt
2023 e
Co., Ltd. months
liability
guarante
e
General
guarante
Jiangsu e; joint
Twelve
Yixing and
April subseque
Automobile 15,000 severabl No No
23, 2024 nt
Technology e
months
Co., Ltd. liability
guarante
e
General
guarante
Tianjin e; joint
Twelve
iFLYTEK Decembe and
April subseque
Jizhi 20,000 r 27, 3,363.65 severabl No No
23, 2024 nt
Technology 2023 e
months
Co., Ltd. liability
guarante
e
General
guarante
e; joint
iFLYTEK Twelve
Novembe and
(Suzhou) April subseque
r 10, 2,772.95 severabl No No
Technology 23, 2024 nt
2023 e
Co., Ltd. months
liability
guarante
45,000
e
General
guarante
iFLYTEK Twelve
Novembe e; joint
(Shanghai) April subseque
r 14, 1,009.92 and No No
Technology 23, 2024 nt
2023 severabl
Co., Ltd. months
e
liability
61
Interim Report 2024 of iFLYTEK Co., Ltd.(English Simplified Version)
guarante
e
General
guarante
Zhejiang e; joint
Twelve
iFLYTEK and
April subseque
Intelligent 3,000 severabl No No
23, 2024 nt
Technology e
months
Co., Ltd. liability
guarante
e
General
guarante
e; joint
Hainan Twelve
and
Shenggu April subseque
22,000 severabl No No
Technology 23, 2024 nt
e
Co., Ltd. months
liability
guarante
e
General
guarante
Anhui
e; joint
iFLYTEK Twelve
and
Jiecheng April July 20, subseque
8,380.94 severabl No No
Software 23, 2024 2023 nt
e
Technology months
liability
Co., Ltd.
guarante
e
70,000
General
guarante
Anhui
e; joint
iFLYTEK Twelve
and
Jiecheng April August subseque
7,203.9 severabl No No
Software 23, 2024 25, 2023 nt
e
Technology months
liability
Co., Ltd.
guarante
e
General
guarante
Anhui e; joint
Twelve
Kexun and
April subseque
Jinse 15,000 severabl No No
23, 2024 nt
Technology e
months
Co., Ltd. liability
guarante
e
General
guarante
e; joint
Anhui Twelve
and
iFLYTEK April subseque
5,000 severabl No No
New Retail 23, 2024 nt
e
Co., Ltd. months
liability
guarante
e
General
guarante
Shandong e; joint
Twelve
Kexun and
April subseque
Information 5,000 severabl No No
23, 2024 nt
Technology e
months
Co., Ltd. liability
guarante
e
Anhui April 5,000 General Twelve No No
62
Interim Report 2024 of iFLYTEK Co., Ltd.(English Simplified Version)
Wanchuang 23, 2024 guarante subseque
New Smart e; joint nt
Technology and months
Co., Ltd. severabl
e
liability
guarante
e
General
guarante
Anhui e; joint
Twelve
Yunshu and
April subseque
Smart 10,000 severabl No No
23, 2024 nt
Technology e
months
Co., Ltd. liability
guarante
e
General
guarante
Consolidate
e; joint
d Twelve
and
subsidiaries April July 7, 28,941.4 subseque
100,000 severabl No No
sharing the 23, 2024 2023 2 nt
e
bill pool months
liability
business
guarante
e
Total occurrence
Total amount of
amount of
approved guarantees
guarantees provided
provided to subsidiaries 477,000 80,320.92
to subsidiaries
during this reporting
during this reporting
period (B1)
period (B2)
Total amount of the
Total amount of outstanding
approved guarantees guarantees actually
provided to subsidiaries 477,000 provided to 83,160.34
as at the end of the subsidiaries as at the
reporting period (B3) end of the reporting
period (B4)
Guarantees provided by the subsidiaries to other subsidiaries
Actual
Guarante Related
Date of Guarant
Name of the e Guarant Type of Fulfille Party
Actual ee Guarante
Guarantee Amount ee Guarant Collater Counter- d or Guarant
Occurren Amount e Period
Recipient Disclosu Amount ee al (if guarantee Not ee or
ce Provide
re Date any) (if any) Not
d
General
Anhui
guarante
Imaging
e; joint Twelve
Union
April 23, August and subseque
Cloud 333.83 No No
2024 16, 2023 several nt
Medical
liability months
Technology
guarante
Co., Ltd.
e
General
Anhui 5,000
guarante Counter-
Imaging
e; joint guarantee Twelve
Union
April 23, July 3, and provided subseque
Cloud 500 No No
2024 2023 several by nt
Medical
liability iFLYTEK months
Technology
guarante Medical
Co., Ltd.
e
Anhui April 23, Decembe General Twelve
500 No No
Imaging 2024 r 26, guarante subseque
63
Interim Report 2024 of iFLYTEK Co., Ltd.(English Simplified Version)
Union 2023 e; joint nt
Cloud and months
Medical several
Technology liability
Co., Ltd. guarante
e
General
Anhui
guarante
Imaging
e; joint Twelve
Union
April 23, Decembe and subseque
Cloud 500 No No
2024 r 4, 2023 several nt
Medical
liability months
Technology
guarante
Co., Ltd.
e
General
Lvliang guarante
iFLYTEK e; joint Twelve
Novembe
Healthcare April 23, and subseque
1,000 r 15, 25.6 No No
Information 2024 several nt
2023
Technology liability months
Co., Ltd. guarante
e
General
guarante
Pu'er
e; joint Twelve
iFLYTEK
April 23, and subseque
Information 1,000 No No
2024 several nt
Technology
liability months
Co., Ltd.
guarante
e
General
guarante
Beijing Hui
e; joint Twelve
Ji Zhi
April 23, June 19, and subseque
Medical 1,000 5.24 No No
2024 2024 several nt
Technology
liability months
Co., Ltd.
guarante
e
General
guarante
Shanghai
e; joint Twelve
iFLYTEK
April 23, and subseque
Medical 500 No No
2024 several nt
Technology
liability months
Co., Ltd.
guarante
e
General
guarante
Yinchuan
e; joint Twelve
iFLYTEK
April 23, and subseque
Internet 500 No No
2024 several nt
Hospital
liability months
Co., Ltd.
guarante
e
Total actual
guarantee provided
Total approved
to subsidiaries
guarantee limit for
9,000 during this reporting 1,030.84
subsidiaries during this
period (C2)
reporting period (C1)
Total approved Total outstanding
guarantee limit for guarantee balance
subsidiaries as at the 9,000 for subsidiaries as at 1,864.67
end of this reporting the end of this
period (C3) reporting period
64
Interim Report 2024 of iFLYTEK Co., Ltd.(English Simplified Version)
(C4)
Total guarantees (the sum of the three items above)
Total amount of
Total amount of guarantees actually
approved guarantees provided during this
577,160 81,351.76
during this reporting
reporting period
period (A1+B1+C1)
（A2+B2+C2）
Total amount of the
Total amount of
outstanding
approved guarantees as
guarantees actually
at the end of this 577,160 96,261.08
provided as at the
reporting period
end of this reporting
(A3+B3+C3)
period (A4+B4+C4)
Percentage of the total amount of actual
guarantees (A4+B4+C4) in the Company's net 5.78%
assets
In Which：
3. Entrusting Cash Asset Management to Others
□Applicable Not applicable
The Company did not entrust any cash asset management to others during this reporting period.
4. Other Major Contracts
□Applicable Not applicable
The Company did not enter into any other significant contracts during this reporting period.
XIII. Explanation of Other Significant Matters
□Applicable Not applicable
There are no other significant matters requiring explanation during this reporting period.
XIV. Significant Events of the Company's Subsidiaries
□Applicable Not applicable
65
Interim Report 2024 of iFLYTEK Co., Ltd.(English Simplified Version)
Section VII Changes in Shares and Shareholder Information
I. Changes in Shares
1. Overview
Before the change Change (increase/decrease) After the change
Sha
res
tran
New sfer
share red
Percent Bonus Other Perce
Shares s fro Subtotal Shares
age shares shares ntage
issue m
d capi
tal
rese
rve
-
I. Shares subject to selling 127,24
161,138,842 6.96% 33,890,5 -33,890,543 5.50%
restrictions 8,299
43
1. State-held shares 0
2. Shares held by state-
0
owned legal persons
-
3. Shares held by other 127,24
161,138,842 6.96% 33,890,5 -33,890,543 5.50%
domestic investors 8,299
43
In which: shares held by
0 0.00% 0 0 0.00%
domestic legal persons
-
Shares held by 127,24
161,138,842 6.96% 33,890,5 -33,890,543 5.50%
domestic natural persons 8,299
43
4. Shares held by foreign
0 0.00% 0 0 0.00%
investors
In which: shares held
by foreign legal persons
Shares held by foreign
0 0.00% 0 0 0.00%
natural persons
2,184,
II. Shares not subject to 29,935,5 94.50
2,154,550,311 93.04% 29,935,575 485,88
selling restrictions 75 %
6
2,184,
1. RMB-denominated 29,935,5 94.50
2,154,550,311 93.04% 29,935,575 485,88
ordinary shares 75 %
6
2. Domestically listed
foreign shares
3. Overseas listed
foreign shares
4. Others
- 2,311,
100.00 100.0
III. Total number of shares 2,315,689,153 3,954,96 -3,954,968 734,18
% 0%
8 5
Reasons for changes in shares
Applicable □Not applicable
The share change is due to the automatic adjustment to the locked-up shares of senior management members at
the beginning of each year and the repurchase and cancellation of part of the restricted stocks already granted, etc.
Approval of share changes
Applicable □Not applicable
66
Interim Report 2024 of iFLYTEK Co., Ltd.(English Simplified Version)
The Company's sixth Board of Directors' seventh meeting and the sixth Board of Supervisors' seventh
meeting held on April 21, 2024, and the 2023 Annual General Meeting of Shareholders held on May 13, 2024
reviewed and passed the Proposal on the Repurchase and Cancellation of Some Granted Restricted Granted
Restricted Shares. The repurchase and cancellation of 3,641,608 restricted shares granted under the 2021 Stock
Option and Restricted Stock Incentive Plan were reviewed and confirmed by the Shenzhen Branch of China
Securities Depository and Clearing Corporation Limited and completed on June 7, 2024. Following this
repurchase and cancellation, the total number of the Company's shares changed from 2,315,375,793 to
2,311,734,185.
Ownership transfer in respect of share changes
□Applicable Not applicable
Implementation progress of share repurchase
□Applicable Not applicable
Implementation progress of reduction of repurchased shares via centralized bidding
□Applicable Not applicable
Effects of share change on basic/diluted earnings per share, net assets per share attributable to ordinary
shareholders of the Company
Applicable □Not applicable
During this reporting period, the Company's repurchase and cancellation of granted restricted shares
resulted in a reduction of 3,641,608 shares. Consequently, the basic earnings per share, diluted earnings per share,
and net assets per share attributable to the Company's ordinary shareholders for the period have increased.
Other information deemed necessary by the Company or required by the securities regulator to disclose
□Applicable Not applicable
2. Changes in Restricted Shares
Applicable □Not applicable
Balance of Number of Balance of
Increase of
restricted restricted restricted Reason
Name of restricted
shares at the shares shares at the for Date of release
shareholder shares in
beginning of released in end of H1 restriction
H1 2024
H1 2024 H1 2024 2024
2,071
people
rewarded The third release period: From the first
under the trading day 36 months after the initial
Stock grant date to the last trading day within
Stock
Option and 9,206,000 0 -3,954,968 5,251,032 48 months from the grant date. The
incentive
Restricted number of shares released from
Stock restrictions represented 40% of the
Incentive total restricted shares granted.
Plan for
2021
Directors, Locked- On the first trading day of each year,
supervisors up shares the China Securities Depository and
and senior 151,932,842 29,935,575 0 121,997,267 for senior Clearing Corporation (CSDC)
managemen managem Shenzhen Branch calculates the
t members ent statutory number of shares that can be
67
Interim Report 2024 of iFLYTEK Co., Ltd.(English Simplified Version)
members transferred by the listed company's
directors, supervisors, and senior
management members, which is
limited to 25% of the number of shares
registered under their names on the last
trading day of the previous year.
Total 161,138,842 29,935,575 -3,954,968 127,248,299 -- --
II. Securities Issuance and Listing
□Applicable Not applicable
III. Number of Shareholders and Shareholding Structure of the Company
Total number of holders of preference
Total number of ordinary shareholders as at shares with voting rights resumed at
351,810 0
the end of this reporting period the end of this reporting period, if any
(see Note 8)
Shareholding by shareholders holding more than 5% of the Company’s shares or by the largest 10 shareholders (excluding shares lent
through the securities lending program)
Number Pledged,
Ordinary
of marked or
Shareho shares held Number of
Change restricte frozen shares
Shareholder lding as at the end unrestricted
Shareholder name (increase/d d
type percenta of this ordinary Status
ecrease) ordinary Num
ge reporting shares held of
shares ber
period shares
held
State-owned
China Mobile Limited 10.03% 231,800,495 0 0 231,800,495 None 0
legal person
Domestic 96,222,8
Liu Qingfeng 5.55% 128,297,167 0 32,074,292 None 0
natural person 75
State-owned
USTC Holdings Co., Ltd. 3.25% 75,076,787 0 0 75,076,787 None 0
legal person
Hong Kong Securities
Overseas -
Clearing Company 2.78% 64,308,160 0 64,308,160 None 0
legal person 16,174,723
Limited
Overseas
Zhang Wei 2.67% 61,660,000 0 61,660,000 None 0
natural person
Domestic
Anhui Yanzhi Technology non-state-
2.48% 57,291,611 0 0 57,291,611 None 0
Co., Ltd. owned legal
person
Overseas
Wang Ping 2.02% 46,723,956 0 0 46,723,956 None 0
natural person
Industrial and Commercial
Bank of China Limited -
Huatai-PineBridge CSI
300 Exchange-Traded Other 0.94% 21,773,985 21,773,985 0 21,773,985 None 0
Open-Ended Index
Securities Investment
Fund
Domestic
Wang Renhua 0.89% 20,579,197 -671,900 0 20,579,197 None 0
natural person
Domestic
Wu Xiaoru 0.80% 18,576,300 3,197,000 240,000 18,336,300 None 0
natural person
Strategic investors or general legal persons China Mobile Communications Co., Ltd., as a strategic investor, subscribed for
became the top 10 shareholders as a result 70,273,975 shares in the Company's non-public offering in 2013, with a lock-up
of allotment of new shares, if any (see Note period of 36 months. These shares were released from restrictions and became
3) tradable on April 25, 2016.
Among the top 10 shareholders, Liu Qingfeng becomes the Company's de facto
Note on connected relations or concerted
controller as a result of his signing of the Acting-in-Concert Agreement with USTC
actions of the above shareholders
Holdings Co., Ltd.; Anhui Yanzhi Technology Co., Ltd. is a company controlled by
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Interim Report 2024 of iFLYTEK Co., Ltd.(English Simplified Version)
Mr. Liu Qingfeng. The Company is not aware of any connections between other
shareholders or whether they are acting in concert.
On December 26, 2016, Liu Qingfeng signed the Power of Attorney with the
principals Wang Renhua, Chen Tao, Wu Xianghui, Jiang Tao, Huang Haibing, Wang
Zhiguo, Yan Jun, Hu Yu, Wu Xiaoru, Xu Yulin and Hu Hongwei, agreeing that the
named principals would delegate to Liu Qingfeng the exercise of the rights to make
proposals, vote and nominate over all the shares held by them at iFLYTEK, for a term
Explanation on the above shareholders' starting from the date of signing of such agreement to the date when the principals no
involvement in entrusting or being longer held any shares of iFLYTEK. On April 9, 2019, Liu Qingfeng signed the
entrusted with voting right, and waiver of Power of Attorney with the principals Nie Xiaolin, Hu Guoping and Yang Jun,
voting right agreeing that Nie Xiaolin, Hu Guoping and Yang Jun would delegate to Liu Qingfeng
the exercise of the rights to make proposals, vote and nominate over all the shares
held by them at iFLYTEK, for a term starting from the date of signing of such
agreement to the date when the principals no longer held any shares of iFLYTEK. Of
the above-mentioned 10 shareholders, Wang Renhua have entrusted Liu Qingfeng to
exercise his voting rights.
Special notes on repurchase accounts
among the top 10 shareholders, if any (see Not applicable
Note 11).
Shareholding of the top 10 holders of ordinary unrestricted shares (excluding shares lent through the securities lending program and
locked-up shares held by senior management members)
Number of restricted ordinary shares held at Type of shares
Shareholder name
the end of this reporting period Type of shares Number
RMB-denominated
China Mobile Limited 231,800,495 231,800,495
ordinary shares
RMB-denominated
USTC Holdings Co., Ltd. 75,076,787 75,076,787
ordinary shares
Hong Kong Securities Clearing Company RMB-denominated
64,308,160 64,308,160
Limited ordinary shares
RMB-denominated
Zhang Wei 61,660,000 61,660,000
ordinary shares
RMB-denominated
Anhui Yanzhi Technology Co., Ltd. 57,291,611 57,291,611
ordinary shares
RMB-denominated
Wang Ping 46,723,956 46,723,956
ordinary shares
RMB-denominated
Liu Qingfeng 32,074,292 32,074,292
ordinary shares
Industrial and Commercial Bank of China
Limited - Huatai-PineBridge CSI 300 RMB-denominated
21,773,985 21,773,985
Exchange-Traded Open-Ended Index ordinary shares
Securities Investment Fund
RMB-denominated
Wang Renhua 20,579,197 20,579,197
ordinary shares
RMB-denominated
Ge Weidong 18,444,273 18,444,273
ordinary shares
Explanation of the relationships or Among the top 10 shareholders, Liu Qingfeng becomes the Company's de facto
concerted actions among the top 10 holders controller as a result of his signing of the Acting-in-Concert Agreement with USTC
of unrestricted shares, and between these Holdings Co., Ltd.; Anhui Yanzhi Technology Co., Ltd. is a company controlled by
top 10 shareholders of unrestricted shares Mr. Liu Qingfeng. The Company is not aware of any connections between other
and the top 10 shareholders. shareholders or whether they are acting in concert.
Zhang Wei holds 61,660,000 shares of the Company's stock through a credit securities
account (60,000,000 shares at the beginning of this reporting period); Wang Ping
Explanation on the involvement of the top
holds 46,723,956 shares (46,723,956 shares at the beginning of this reporting period)
10 holders of common shares in securities
through a credit securities account; Ge Weidong holds 18,444,273 shares of the
margin trading, if any (see Note 4).
Company's stock (18,444,273 shares at the beginning of this reporting period) through
a credit securities account.
Participation of shareholders holding more than 5% stake, the top 10 shareholders, and the top 10 holders of
unrestricted tradable shares in the securities lending under the securities lending program:
Applicable □Not applicable
Participation of shareholders holding more than 5% stake, the top 10 shareholders, and the top 10 holders of unrestricted tradable
shares in the securities lending under the securities lending program
Holdings in ordinary Shares lent through Holdings in ordinary Shares lent through
Shareholder name accounts and credit the securities lending accounts and credit the securities lending
accounts at the program and not yet accounts at the end of program and not yet
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Interim Report 2024 of iFLYTEK Co., Ltd.(English Simplified Version)
beginning of this returned at the this reporting period returned at the end of
reporting period beginning of this this reporting period
reporting period
Percenta Percenta Percenta Percenta
ge of ge of ge of ge of
Total Total Total Total
Total Total Total Total
shares shares shares shares
Share Share Share Share
Capital Capital Capital Capital
Industrial and Commercial
Bank of China Limited -
Huatai-PineBridge CSI 300 19,966,7 21,773,9
0.86% 3,900 0.05% 0.94% 1,500 0.00%
Exchange-Traded Open-Ended 85 85
Index Securities Investment
Fund
The changes from the previous reporting period due to the top 10 shareholders and the top 10 holders of
unrestricted tradable shares lending or returning shares through the securities lending program:
□Applicable Not applicable
Did the top 10 holders of ordinary shares and the top 10 holders of unrestricted ordinary shares engage in
repurchase transactions during this reporting period?
□Yes No
None of the top 10 holders of ordinary shares and the top 10 holders of unrestricted ordinary shares engaged in
any repurchase transactions during this reporting period.
IV. Changes in Shareholdings of Directors, Supervisors, and Senior Management
□Applicable Not applicable
There have been no changes in the shareholdings of the Company's directors, supervisors, and senior
management members during this reporting period. For details, please refer to the 2023 annual report.
V. Changes in Controlling Shareholders or the De Facto Controller
Change in controlling shareholders during this reporting period
□Applicable Not applicable
The Company's controlling shareholders did not change during this reporting period.
Change in the de facto controller during this reporting period
□Applicable Not applicable
The Company's de facto controller did not change during this reporting period.
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Interim Report 2024 of iFLYTEK Co., Ltd.(English Simplified Version)
Section VIII Preferred Shares
□Applicable Not applicable
The Company did not have any preferred shares during this reporting period.
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Interim Report 2024 of iFLYTEK Co., Ltd.(English Simplified Version)
Section IX Bonds
□Applicable Not applicable
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