2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
iFLYTEK Co., Ltd.
2021 Annual Report
April 2022
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2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
Section I Important Notice, Contents and Definitions
The Board of Directors, the Board of Supervisors, directors, supervisors
and senior management members of iFLYTEK Co., Ltd. (the "Company")
warrant, under joint and several liability, that the information in this Annual
Report is authentic, accurate and complete, and contains no false records,
misleading statements or material omissions.
Liu Qingfeng, Chairman of the Company; Wang Ming, head of accounting
affairs; and Cai Shang, head of the accounting department (accounting
supervisor) hereby declare that the financial statements in this Annual Report
are authentic, accurate and complete.
All the directors attended the meeting of the Board of Directors which
reviewed this report.
For the purpose of the report, the statements on future development plans
and business objectives are what is planned by the Company. They do not
constitute substantive commitments by the Company to its investors. Hence,
investors and interested parties should be fully aware of the risks and
understand the difference between plans, forecasts and commitments.
The Company analyzes its possible risk exposures and responses in "XI.iii.
Risk Exposures of the Company and Responses" in "Section III Management
Discussion and Analysis" of the report. Investors are advised to read this part.
Profit distribution plan of the Company approved at the meeting of the Board of
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2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
Directors: Based on 2,324,325,245 shares of the Company on 31 March 2022,
distribute a cash dividend of RMB1.00 (before tax) per ten shares and zero
bonus share (before tax), with no capital reserve converted into share capital.
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2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
CONTENTS
Section I Important Notice, Contents and Definitions ...................................................................................................................... 2
Section II Corporate Information and Main Financial Indicators ...................................................................................................... 8
Section III Management Discussions and Analysis ........................................................................................................................ 13
Section IV Corporate Governance ................................................................................................................................................. 64
Section V Environmental and Social Responsibility ..................................................................................................................... 111
Section VI Significant Events ..................................................................................................................................................... 117
Section VII Changes in Shares and Particulars of Shareholders .................................................................................................... 132
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2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
List of Documents for Inspection
I. The financial statements signed and sealed by the legal representative, head of accounting affairs, and head of
the accounting department;
II. The original of the Auditor's Report stamped with the corporate seal of the accounting firm, and signed and
sealed by the CPAs;
III. Originals of all the documents and announcements published by the Company on the newspapers designated
by the China Securities Regulatory Commission (“CSRC”) during the reporting period; and
IV. The original of the 2021 Annual Report signed by the Chairman.
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2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
Definitions
Term refers to Definition
Artificial intelligence (AI), is an emerging technical science that studies and
develops theories, methods, technologies, and application systems for
simulating, extending, and expanding human intelligence. Artificial intelligence
generates manual programs or systems that perceive, think, and make decisions
like humans and imitate their actions. Perceptual intelligence, or the ability of
Artificial intelligence refers to machines to "listen and speak, see and recognize", mainly involves speech
synthesis, speech recognition, image recognition, and multilingual speech
processing technologies; cognitive intelligence, or the ability of machines to
"understand and think", involves education evaluation, machine-assisted
clinical decision support, machine-assisted court trial, intelligent customer
service, machine translation and other knowledge services.
The technology that enables machines to "listen and speak" like humans. It
mainly includes speech recognition (automatically converting speech into text),
speech synthesis (automatically converting text into speech), voiceprint
Intelligent speech refers to recognition (separating speakers), language recognition (recognizing different
languages and dialects) and other sub-technologies. It belongs to the perceptual
intelligence in artificial intelligence and acts as the core supporting technology
for the revolution of human-machine speech interaction.
Speech synthesis refers to The technology that automatically converts text into speech by machine.
The technology that automatically converts speech signals into text and other
Speech recognition refers to
relevant information by machine.
Speech evaluation (spoken language The technology that enables machines to automatically evaluate pronunciation,
refers to
evaluation) detect errors, and give correction instructions for speaking.
The technology that uses computers to process, analyze and understand images
Image recognition refers to
in order to recognize goals and targets under different models.
The process of using a computer to convert one natural language (source
Machine translation refers to language) into another (target language). It is also known as automatic
translation.
An important branch of research in computer science and artificial intelligence.
It works on the theories and practices that enable effective communication
between humans and computers using natural languages. The ultimate goal of
this technology is to enable computers to understand and use natural languages
Natural Language Understanding refers to of human society such as Chinese and English, and realize natural language
communication between humans and computers in order to replace part of
humans' mental work, including searching information, answering questions,
collecting excerpts, compiling documents and all other natural languages
processing activities.
New Infrastructure refers to New types of infrastructure construction ("New Infrastructure Construction" for
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2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
short), that represented by 5G, artificial intelligence, industrial Internet, and
Internet of Things (IoT), which is essentially the infrastructure for
informationization and digitalization.
A roadmap launched in 2022 to plan and guide the technological and product
development of iFLYTEK in the medium- and long-term. It aims to develop a
complex intelligent system of human-machine collaboration and self-evolution
based on cognitive intelligence, so that machines can surpass humans in
perception, have a deep understanding of industry-specific knowledge, and be
able to continuously evolve on an independent basis. In other words, under the
program, machines will be able to perceive people and the environment
iFLYTEK Super Brain 2030 Program refers to
comprehensively, understand the knowledge of various industries, acquire
general knowledge and emotion, and be able to move flexibly and express
themselves in multiple dimensions. The program will develop complex
intelligent systems that can continuously evolve independently and introduce
robots into families. The core purpose of the program is to use artificial
intelligence to address major social issues that may arise in the future and meet
rigid demands.
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2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
Section II Corporate Information and Main Financial Indicators
I. Corporate 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
Company Name in English (if
iFLYTEK CO., LTD
any)
Name Abbreviation in English
iFLYTEK
(if any)
Legal Representative of the
Liu Qingfeng
Company
Registered Address No. 666 West Wangjiang Road, High-tech Development Zone, Hefei
Postal Code of the Registered
230088
Address
Changes in the Registered Changed to No. 666 West Wangjiang Road, High-tech Development Zone, Hefei from No. 616
Address Huangshan Road, High-tech Development Zone, Hefei in April 2013
Office Address No. 666 West Wangjiang Road, High-tech Development Zone, Hefei
Postal Code of the Office Address 230088
Company Website http://www.iflytek.com
Email xunfei@iflytek.com
II. Contact Information
Secretary of the Board of Directors Representative
Name Jiang Tao Chang Xiaoming
No. 666 West Wangjiang Road, High-tech No. 666 West Wangjiang Road, High-tech
Add.
Development Zone, Hefei Development Zone, Hefei
Tel. 0551-67892230 0551-67892230
Fax 0551-65331802 0551-65331802
Email taojiang@iflytek.com xmchang@iflytek.com
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2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
III. Information Disclosure and Location Where the Disclosure is Kept
Stock exchange websites for disclosure of the http://www.szse.cn/
Company's annual report
http://www.cninfo.com.cn
Media outlets and websites for disclosure of the
The Securities Times, the China Securities Journal, the Shanghai Securities
Company's annual report
News, and the Securities Daily, as well as http://www.cninfo.com.cn
Location where copies of this Annual Report are kept The Securities Department of the Company
IV. Changes in Registration
Organizational code 91340000711771143J
Based on the breakthroughs in core AI technologies, the Company has further evolved from
Changes in main business
"empowering machines to listen and speak" to "empowering machines to understand and think", and has
after IPO of the Company
grown from a provider of core speech and intelligence technologies and relevant application solutions to
(if any)
a leader in the AI industry.
Changes in controlling
shareholder (if any) No controlling shareholder
V. Other Relevant Information
Accounting firm engaged by the Company
Name of the accounting firm RSM Certified Public Accountants (Special General Partnership)
29th Floor, Block A, Zhidi Square, Intersection of Longtu Road and West Lvzhou Road,
Office address of the accounting firm
Shushan District, Hefei, Anhui Province, China
CPAs (Practicing) Zhang Liangwen, Yao Bei, and Ren Gangming
Sponsors engaged by the Company in continuous supervision during the reporting period
√ Applicable □ Not applicable
Name of the sponsoring
Name of the sponsor Office address of the sponsor Continuous supervision period
representative
No. 18, Meishan Road, Hefei
GuoYuan Securities Co., Ltd. Li Hui and Li Jun 2021.7.19-2021.12.31
City, Anhui Province, China
Financial advisors engaged by the Company in continuous supervision during the reporting period
□ Applicable √ Not applicable
VI. Main Accounting Data and Financial Indicators
Whether the Company needs to make retroactive adjustments to or restate accounting data for prior years
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2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
□ Yes √ No
Increase/(decrease)
Item 2021 2020 2019
YOY
Operating Revenue (RMB) 18,313,605,605.92 13,024,657,865.85 40.61% 10,078,688,919.69
Net profit attributable to the Company's
1,556,463,894.56 1,363,789,616.73 14.13% 819,175,858.63
shareholders (RMB)
Net profit excluding non-recurring
profits and losses attributable to the 978,739,466.81 767,389,240.68 27.54% 488,797,977.01
Company's shareholders (RMB)
Net cash flows from operating activities
893,075,431.31 2,270,754,855.94 -60.67% 1,531,468,509.95
(RMB)
Basic earnings per share (RMB) 0.70 0.64 9.37% 0.40
Diluted earnings per share (RMB) 0.68 0.61 11.48% 0.38
Weighted average return on net assets
10.93% 10.97% -0.04% 8.22%
(%)
Increase/(decrease)
Item At the end of 2021 At the end of 2020 At the end of 2019
YOY
Total assets (RMB) 31,394,037,754.41 24,836,091,818.68 26.40% 20,100,836,085.61
Net assets attributable to the Company's
16,780,723,702.63 12,668,005,446.56 32.47% 11,417,958,785.25
shareholders (RMB)
The lower of the Company's net profits before and after excluding non-recurring profits and losses over the last
three fiscal years were all negative, and the most recent year's audit report shows uncertainty in the Company's
capacity of continued operation.
□ Yes √ No
The lower of the Company's net profit before and after excluding non-recurring profits and losses were negative.
□ Yes √ No
VII. Differences in Accounting Data under Chinese and Foreign Accounting Standards
1. Net profit and net assets differences in the financial reports disclosed under IFRS and under CAS
□ Applicable √ Not applicable
There was no difference in net profit and net assets in the financial reports disclosed under IFRS and that
disclosed under CAS during the Report Period.
2. Net profit and net assets differences in the financial reports disclosed under foreign accounting standards
and under CAS
□ Applicable √ Not applicable
The Company did not see any net profit and net assets differences in the financial reports disclosed under foreign
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2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
accounting standards and under CAS during the reporting period.
VIII. Quarterly Key Financial Indicators
Unit: RMB
Q1 Q2 Q3 Q4
Operating Revenue 2,501,303,217.85 3,817,347,314.77 4,549,313,267.14 7,445,641,806.16
Net profit attributable to the Company’s shareholders 139,470,569.39 279,107,268.35 310,187,574.93 827,698,481.89
Net profit excluding non-recurring profits and losses
105,904,298.59 103,554,056.29 305,097,049.59 464,184,062.34
attributable to the Company’s shareholders
Net cash flows from operating activities -1,205,546,397.13 -528,377,190.32 246,587,699.75 2,380,411,319.01
Whether there are significant differences between the above financial indicators or their aggregates and relevant
indicators in quarterly and semi-annual reports disclosed by the Company
□ Yes √ No
IX. Non-recurring Profit and Loss Items and Amounts
√ Applicable □ Not applicable
Unit: RMB
Item Amount in 2021 Amount in 2020 Amount in 2019
Profit or loss on disposal of non-current assets (including the write-off
-7,253,207.50 10,172,959.83 -3,963,385.38
of the provisions for impairment losses)
Government grants included in current profit or loss (excluding those
closely related to the normal operations of the Company and regularly
438,785,803.74 425,577,693.85 412,178,689.71
granted in uniform standard quota or quantity by the government
conforming to national policies)
The cost of investments in subsidiaries, associates and joint ventures
acquired by an entity is less than the entity’s share of the net fair 57,004.44
value of the investee’s identifiable assets and liabilities
Profit or loss on entrusting others with investment of assets
9,441,683.54 23,760,903.38 15,951,545.51
management
Profit or loss from changes in the fair value generated from the
Company's held-for-trading and derivative financial assets, and
held-for-trading and derivative financial liabilities, and investment
income from the disposal of held-for-trading and derivative financial 338,818,986.25 371,116,387.49 95,019,763.06
assets, held-for-trading and derivative financial liabilities, and other
debt investments, except for effective hedging business related to the
Company's normal business
Reversal of impairment provision for the accounts receivable for
190,509.33
which an independent impairment test is conducted
Other non-operating revenue and expenses besides items above -80,388,578.22 -84,847,671.00 -49,934,658.02
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2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
Other profits or losses that belong to non-recurring profits and losses -47,205,110.57 -70,832,206.79
Less: Effect on income tax 112,234,621.94 98,568,980.10 64,251,162.98
Effect on non-controlling interests(after tax) 9,636,147.45 3,662,811.27 3,790,703.49
Total 577,724,427.75 596,400,376.05 330,377,881.62
Explanation on defining non-recurring profit and loss items specified in the Explanatory Announcement on
Information Disclosure for Companies Offering Securities to the Public No.1 – Non-recurring Profits and Losses
as recurring profits and losses
□ Applicable √ Not applicable
The Company did not define non-recurring profit and loss items specified in the Explanatory Announcement on
Information Disclosure for Companies Offering Securities to the Public No.1 – Non-recurring Profits and Losses
as recurring profits and losses.
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2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
Section III Management Discussions and Analysis
I. Industry Overview during the Reporting Period
The Company is required to comply with the disclosure requirements for the software and information technology
services industry as stated in the Guidelines of Self-discipline Regulation for Shenzhen Stock Exchange Listed
Companies of No. 3: Industry Information Disclosure.
1. Development opportunities for the AI industry
On 12 January 2022, the State Council released the Development Plan for Digital Economy during the 14th
Five-Year Plan Period. The plan specifies the guiding ideology, basic principles, development goals, key tasks
and supportive measures for promoting the healthy development of the digital economy during the 14 th Five-Year
Plan period. According to the development goals proposed in the plan, China’s digital economy will seek
across-the-board expansion by 2025, and the value added of core industries of the digital economy will account
for 10% of the gross domestic product (GDP). AI is the key driver in the development of the digital economy, and
all major global science and technology powers attach great importance to technological advancements and
industrial development of artificial intelligence. China has already listed AI in its new infrastructure construction
and has put forward and launched the “National Program for Medium-to-Long-Term Scientific and Technological
Development (2021 – 2035)”, prioritizing the development of the three main driving forces—AI, quantum
information and integrated circuits. It has become a major historic campaign in China’s economic and social
development to apply AI to meet people’s shortages, build a “happy China” and integrate the technology with the
real economy to build industrial capabilities. The 14th Five-Year Plan has listed AI as a “top priority” in frontier
technology, a move that will unquestionably drive China’s AI industry forward by leaps and bounds.
The Report on the Work of the Government, delivered at the “Two Sessions” in 2021, stressed the use of
scientific and technological innovations to drive high-quality development and step up support to people’s
livelihoods. It also proposed measures to improve public well-being, including the development of fairer and
higher quality education and the building of an educational system for all-round development; the quality and
balanced development of compulsory education and integrated development for urban and rural areas, so every
child would have the opportunity to succeed; the development of technologies for disease prevention, treatment
and other purposes related to public well-being, building of health systems, extensive reform of disease prevention
and control systems, innovation in building coordination mechanisms of healthcare and disease prevention,
nurturing of general practitioners (GPs) and doctors in rural areas, improvement of medical services in counties
and expedited building of a tiered medical system; and the strengthened development of digital governments and
the sharing of administrative data. The key development proposals stated above provide favourable policies and a
macro-environment for the Company to continue to drive key advancements in AI and industrial development, as
well as the large-scale application of products and solutions in smart education, smart healthcare, smart cities and
other business areas.
Pursuing “tangible applications that may be promoted in large scale with the results proven by statistics and”,
iFLYTEK, “the national AI team”, has been committed to using AI to tackle major issues in social development
over the years. iFLYTEK Applications in major fields have been generating exemplary results, and strategic bases
underpinning sustainable development have also taken shape. Meanwhile, capitalizing on its credibility as “the
national AI team”, iFLYTEK focuses on addressing users’ rigid demands. In addition to continuing its investment
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2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
by a wide margin over others in key technologies, the Company has integrated key innovative technologies to gain
advantages in “systematic innovation”. The strategic bases and “systematic innovation” will become iFLYTEK’s
core competitive advantages, as it will not only be one step ahead but will become a true leader in AI
development.
2. Uncertainty in the international situation prompting independent innovation of original core
technologies
According to documents released by the United States Department of Commerce on 7 October 2019 (EST),
some Chinese technology companies, including iFLYTEK, were included on the Entity List by the U.S.
government. iFLYTEK remains committed to independent innovation in core technologies and possesses
world-leading core technologies such as smart speech and AI. In recent years, technologies developed by the
Company have continued to come out top in international tests, including machine translation, natural language
understanding, image recognition, image understanding, knowledge graph, knowledge discovery and machine
reasoning. Since all of these core technologies have been independently researched and developed by iFLYTEK,
the Company also owns their independent intellectual property rights and is thus not passive in terms of core
technologies. After being included on the Entity List, iFLYTEK has quickly switched to a non-U.S. supply chain
system made up of mainly domestic suppliers, enabling itself to continuously provide customers with quality
products and services. The Company’s operations have not been significantly impacted.
The Central Economic Work Conference in 2020 laid out eight major tasks for 2021, and the first two were
strengthening China’s scientific and technological capabilities of strategic importance and increasing independent
control over industrial and supply chains. Under the strategic planning for “persisting in driving development with
innovations and expediting the development of a modern industrial system; and persisting in giving innovation a
key role in China’s modernization and providing strategic support to China’s development with independent
technology”, China will continue to strengthen its scientific and technological capabilities of strategic importance
and step up its investment in independent innovations. The move will facilitate companies such as iFLYTEK to
independently innovate and extensively apply core AI technologies into different industries.
II. Business Highlights during the Reporting Period
(i) Business overview
Since its founding, iFLYTEK has remained devoted to the research on core technologies, including smart
speech, natural language understanding, machine learning and reasoning and independent learning. Being an
international leader in the technologies, the Company actively promotes the research and development and
industrial application of AI products. iFLYTEK is committed to enabling machines to “listen and talk, think and
understand” and to “creating a better world with AI”. The Company is firmly focused on its indomitable
development strategy, whereby it will take a lead internationally with its core technologies that will be extensively
adopted by industries.
iFLYTEK is also strongly committed to its AI strategy of “platform + tracks”. In terms of the platform that
empowers developers, it relies on the iFLYTEK Open Platform, China’s first open AI platform, to provide
developers with one-stop AI solutions and to further the development of the AI industry.
In terms of the tracks of application, iFLYTEK has achieved positive interplay between innovative original
technologies and industrial application in fields such as education, healthcare, office and smart cities.
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2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
Figure 1 An overview of key products and customers
1. Smart education
In terms of education, guided by the ideal of “AI-empowered teaching according to students' abilities” and in
response to the major national educational mission, iFLYTEK has fully applied core AI technologies to education
and learning. The Company provides students, teachers and education supervisors at all levels with more targeted
and expedited services. This helps the amassing of data during teaching and learning and alleviates the burden on
teachers and students, which improves efficiency and promotes educational advancements. To date, iFLYTEK
smart educational products have been adopted by 32 provincial-level places in China and foreign markets such as
Japan and Singapore.
iFLYTEK smart education focuses on “alleviating students’ burden while improving teaching quality;
reducing tests while scientifically assessing teaching results; promoting all-round education while satisfying the
demands of building scientific and technological capabilities”. As a result, business systems targeting government,
business and individual customers have been developed. The business to government chiefly involves the
development in regions such as municipalities, counties and districts, which covers general solutions based on
students’ aptitude for all the schools and users in the regions. The business to corporate customers chiefly involves
school development, which includes targeted teaching based on big data and English-listening and -speaking tests.
The business to individual customers chiefly involves independent purchases made by parents, which includes
AI-powered learning pads and individualized learning handbooks.
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2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
Figure 2 Overview of smart education business
2. Smart healthcare business
In terms of healthcare, iFLYTEK’s mission is to create “an AI diagnosis assistant for every doctor and an AI
health assistant for every person”. With its world-leading AI technologies, the Company provides
community-level doctors with general practice diagnosis assistance using core technologies, such as
medical-semantic computing, medical NLP, medical-knowledge inference and medical-data mining. They
standardize the diagnostic and treatment processes, reduce misdiagnosis and diagnostic errors, provide AI general
practice clinical support to doctors in making clinical decisions and enhance medical service standards and
efficiency. Furthermore, they provide health commissions with smart supervision services in diagnostic processes
and quality based on real-time data. The medical test robot operating based on iFLYTEK’s core AI technology
passed the written test of the National Vocational Physician Qualification Examination in 2017 with a total score
of 456, surpassing 96.3% of human candidates across China; it became the world’s first AI system to pass a
national vocational physician qualification examination. Products based on the medical test robot, such as
iFLYTEK Smart Healthcare General Practice Medical Assistant, have been extensively adopted by medical
institutions.
3. Smart city business
In terms of smart cities business, iFLYTEK focuses on government digitalization while improving the
efficiency in political and legal administration. The Company provides AI-based products and general solutions
for urban governance, administrative services and industrial development. This empowers urban development and
connects user data of organizations, allowing data feedback, iteration, learning and improvement while creating a
model of continuous urban service driven by data.
4. Open Platform and consumer business
As one of the first “national next-generation open AI innovation platforms”, iFLYTEK Open Platform is an
AI technological and ecological service platform based on the Company’s internationally leading AI technology
and big-data operational capability. The platform provides developers and industry partners with comprehensive
industry-chain services through technological, market and business-model empowerment. Building upon it, the
Company has developed capability platforms, including an AI marketing platform and a smart-industry platform,
which will further diversify the ecology of the AI industry.
With respect to consumer business, iFLYTEK focuses on AI + office and offers office products and services,
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2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
including smart notebooks, smart recorders and the iFLYREC app. Original unstructured data, such as audios, and
images, generated at work may be swiftly processed and turned into text data easy to save and search, thus
enhancing work and learning efficiency.
5. AI solutions for corporate customers, such as operators, smart automobiles and smart finance
iFLYTEK provides operators, automobile manufacturers and financial institutions with AI-application
solutions:
(1) For operators
The iFLYTKE business focuses on customers such as China’s top three telecommunications operators and
radio and television administrations and facilitates their digitalization. The Company provides households,
companies and individuals with products and applications such as smart home voice platform, smart customer
service and smart AI services. Building upon iFLYTEK’s multi-modal interactive capability and the contents
amassed from the open platform, the smart home-television voice-interaction platform offers general solutions for
scenarios such as film and entertainment, children’s all-round development, elderly care and home security,
helping operators improve the business value of household users. Meanwhile, the Company’s smart customer
service introduces AI at multiple service points to help operators improve user satisfaction and reduce user
complaints.
(2) For automobile manufacturers
The Company’s smart automobile business targets automobile manufacturers at home and abroad and offers
products and solutions such as the FEIYU smart assistant, FEIYU OS, FEIYU vehicle audio-management system
and AI sales and services. The FEIYU smart assistant fully integrates speech, vision and scene perception to solve
issues such as monotonous in-car interaction, fragmented interaction models and high learning costs, so as to
create natural multi-modal interactions between drivers and their vehicles. The FEIYU OS combines AI algorithm
with big data to provide dedicated in-car services, allowing users to enjoy the highly efficient customized
information and entertainment services anytime, anywhere. The smart audio-management system offers the
ultimate in-car audio experience, while AI sales and service focus on enhancing automobile and dealer sales and
services.
The above-mentioned products have already been adopted by mainstream domestic and joint-venture automobile
manufacturers in China, including FAW Group, Dongfeng Motor Corporation, Changan Auto, SAIC Motor, GAC
Group, BAIC Group, JAC Motors, Chery Automobile, Great Wall Motor, BYD Company, Geely Auto,
Volkswagen, Audi, Toyota, Honda and Ford, as well as emerging manufacturers, such as NIO, Lixiang, HiPhi,
Weltmeister and Leapmotor.
(3) For financial institutions
Smart financial services primarily involve offering comprehensive digital-management and -operational
solutions for financial institutions, such as banks, insurers and securities companies. The AI-powered financial
solutions include AI middle office, data middle office, knowledge middle office, financial-marketing platform,
smart customer service, smart outlets, digital staff, smart risk control, assisted review and approval, smart
consumer protection and smart office work.
(ii) Main business development during the reporting period
1. Smart education business
The 19th meeting of the CPC Central Committee Comprehensively Deepening Reforms Commission in May
2021 reviewed and approved the Opinions on Further Reducing the Burden of Homework and Off-Campus
Training for Compulsory Education Students (known as the “Double Reduction” policy), which were published
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2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
by the General Office of the Central Committee of the Chinese Communist Party and the General Office of the
State Council in July 2021. The Double Reduction policy emphasizes “further improvement in education quality
and services, logical and reasonable assignments and satisfactory after-school services that will lead students back
to more on-campus learning”.
The Guiding Opinions on Promoting the Building of New Educational Infrastructure to Devise a
High-Quality Educational Support System, released by the Ministry of Education and five other departments in
July 2021, specified that “where the conditions allow, regions should popularize personal-learning terminals that
meet technical standards and meet learning needs”.
The Plan for IT Application during the 14th Five-Year Plan Period, released in December 2021, specified
“elevating the level of digital education infrastructure to promote educational reforms that combine information
technology, smart technologies and education practices”.
The policies mentioned above provide favourable policy support and a conducive macro-environment for the
extensive application of AI in realizing teaching according to students' aptitude and the development of
Company’s smart education business. iFLYTEK’s smart education products and solutions have been widely
adopted for teaching and learning, and they are recognised by governments, favoured by teachers and trusted by
parents.
1.1 Extensive replication of the success of teaching according to students' aptitude in different regions
During the reporting period, iFLYTEK’s comprehensive smart education solutions for teaching according to
students' aptitude continued to be adopted. They have been adopted and widely applied in nearly 20 districts,
counties and cities including Jinshui District in Zhengzhou City, Wuhan Economic & Technological Development
Zone, Qingdao West Coast New Area, Dadong District in Shenyang City, Changchun City in Jilin Province and
Yijiang District in Wuhu City. A large amount of data has already been generated proving their effectiveness.
Taking Bengbu City in Anhui Province for example, after the adoption of iFLYTEK’s general solutions for
teaching according to students' aptitude, the city was nominated by the Ministry of Education as a pilot zone for
“new teaching and learning models based on teaching reforms and integrated information technology” in August
2020. It was also nominated by the Ministry of Education as a “model area for smart education” for 2020 in
February 2021. In September the same year, it was nominated by the Ministry of Education as one of the second
batch of areas that promote teacher education with AI. Bengbu is one of the only two Chinese regions (the other
one, Haidian District of Beijing) selected for all of the three demonstration and pilot projects mentioned above.
During the reporting period, the provinces adopting the smart test-grading technology tot he College
Entrance Examinations increased from nine to 12 across China. As for English listening and speaking test
business, during the reporting period, our system has been deployed in the College Entrance Examinations in 4
additional provinces and municipalities and in the high school entrance examinations in 29 cities, which increases
the total numbers of College Entrance Examinations organizing provinces covered to 14, and the high school
entrance examinations organizing cities covered to 87.
1.2 Significant increase in the value of products targeting schools
During the reporting period, following the implementation of the “Double Reduction” policy, demands have
grown further for application scenarios such as smart classrooms, big data-based targeted teaching, flexible
assignments, independent learning, all-round education and smart management.
For the classroom scenario, core technologies such as big data and AI analyse students’ knowledge based on
their tests, classroom interactions and assignments and offer customized solutions for their weaknesses. The
technologies will also allow teachers to gain an accurate understanding of the students and focus on typical and
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individual questions. Furthermore, teachers will be able to give assignments that are flexible and personalized
while reducing ineffective and repetitive tasks, so as to help enhance learning efficiency and promote the
implementation of the “Double Reduction” policy. In 2021, the flexible-assignment solution has helped about
120,000 teachers give over 60,000 assignments to nearly 4 million students in over 8,000 schools.
The “Double Reduction” policy focusing on on-campus teaching and learning has opened up the untapped market
of after-school services. iFLYTEK’s after-school service solutions target educational regulators, third-party
organisations, schools, teachers, parents and students. The solutions offer services with strong support and to
higher standards and tackle seven key issues, including the supply of course resources, educational administration
and management, course assessments and data monitoring. To date, iFLYTEK’s after-school services cover 4,000
schools in over 170 districts and counties.
Figure 3 The launch of iFLYTEK’s after-school service solutions
1.3 Student-oriented AI independent learning products continue to prove their worth
Against the background of the “Double Reduction” policy, schools have put forward higher requirements for
setting tiered, flexible and personalized assignments, generating even stronger demand for individualized learning
handbooks. iFLYTEK’s individualized learning handbooks have achieved breakthroughs in core technologies and
production innovation. The human-powered question-suggestion engine has won an accepted recommendation
rate of over 95%, cutting students’ ineffective learning time by nearly 60% and helping them solve an average of
over 80% of previously incorrectly answered questions. During the reporting period, the number of schools
adopting iFLYTEK’s individualized learning handbooks increased by 50%, increasing the user base by 40% over
the same period of last year and the repurchase rate also grew from 75% to 90%.
iFLYTEK’s AI learning pads boast a “4+1 standard”, that is, they are able to “make learning analysis,
recommend learning materials, improve language skills and boost confidence with satisfying results with
whole-process protection”. With the help of AI, the learning pads help students learn independently and improve
efficiency. Sales of the learning pads to individual consumers surged by 150% in 2021, while the gross
merchandise volume (GMV) and sales on JD and Tmall, China’s online business-to-consumer retail platforms,
soared by 200% year-on-year. The learning pads topped the industry with a net promoter score (NPS) of nearly
40%. (Note: The score is a market research metric that reflects the likelihood of consumers recommending a
certain business or service to other people.)
2. Smart healthcare business
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The Opinion of the CPC Central Committee and the State Council on Advancing Rural Vitalization across
the Board and Accelerating Agricultural and Rural Modernization, released by the State Council in January 2021,
proposes to “advance the building of healthy rural areas across the board and improve the health management
level of village-based clinics and health service level of primary medical institutions”. Besides, the Outline of the
14th Five-Year Plan (2021-2025) for National Economics and Social Development and Vision 2035 of the
People's Republic of China points out, “the government will channel resources down to primary healthcare level
and balance the regional distribution of quality medical resources”. The above-mentioned policies have made
further clear that the application of artificial intelligence (AI) in the healthcare sector calls for further
strengthening of public healthcare services at primary level, promotion of tiered diagnosis and treatment system,
and equal access to basic healthcare services.
During the reporting period, iFLYTEK General Practice Medical Assistant has covered 284 districts/counties
in 28 provinces (autonomous regions and municipalities directly under the central government) and been regularly
applied. It has cumulatively served more than 50,000 primary doctors and 100 million residents, assisted primary
doctors in finishing over 130 million standard electronic medical records, provided 340 million pieces of AI
clinical support suggestions, and given more than 170,000 valuable corrections to diagnoses (a doctor corrects
his/her previous diagnosis based on the reminder from the iFLYTEK General Practice Medical Assistant, and the
final diagnosis is consistent with the medical record information) within a year.
With its core healthcare technology and capability, iFLYTEK has been assisting governments and medical
institutions with pandemic prevention & control and general public healthcare follow-up interview services,
benefitting a total of over 600 million people. This has also tremendously improved the efficiency of primary
healthcare staff in pandemic prevention & control as well as that of public healthcare follow-up interviews. It also
provides decision-making analysis and support for national health commissions so that they are able to assess
public healthcare services across provinces more scientifically and allocate public healthcare services funds more
fairly.
iFLYTEK Healthcare continues to pursue AI-enabled product innovation in medical insurance cost control
and chronic disease management. A medical insurance cost control pilot program has been launched in Changzhi
and Lvliang Cities of Shanxi Province. With respect to chronic disease management, the chronic disease
management system in Jieshou City of Anhui Province has recorded over 1.8 million AI-based interventions,
which helped doctors improve management efficiency by more than five-fold, increased the control rate of high
blood pressure to 72.45% from 39.2%, and reduced the hospitalization rate of cardiovascular and cerebrovascular
patients to 14.48% from 18.2%. In 2021, the “chronic disease management model of Jieshou City” was
recommended as a typical case of “I Bring Tangible Benefits for the People – 2021 Demonstration Project for
Improving People’s Living Standards”, a selection event guided by the People’s Daily.
3. Smart city business
iFLYTEK’s Urban Super Brain solutions has been adopted by cities in Anhui Province, including Tongling,
Xuancheng, Wuhu, Hefei and Bozhou. They have also been widely launched across the country with positive
application results, such as in Tianjin, Liaocheng City in Shandong Province, Changchun City in Jilin Province,
Luohe City in Henan Province, Tongchuan City in Shaanxi Province and Wuhai City in Inner Mongolia.
Meanwhile, Tongling City has been named “China’s leading smart city” for three consecutive years. It has also
been selected as one of the “Top 10 Examples of Local-Governance Innovation in the Yangtze River Delta in 2020”
by the Decision-Making magazine, and listed as one of the world’s six models in the Research Report on the
Global Standard of City Brains by the WWNS-R.
During the reporting period, iFLYTEK undertook the construction of Jianghuai Big Data Center's main
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platform in Anhui Province. To date, it has been connected to 16 prefecture-level cities with over 1 trillion
pieces of data having being exchanged, placing itself among the country’s top three in terms of interface-data
sharing and access among national ministries and commissions. The Company also lent its support to Anhui
Province’s online administrative services in 2021, which have been ranked top of the country for four
consecutive years. Anhui’s smart administration model, Guangdong’s government digitalization and Zhejiang’s
one-stop service supported by iFLYTEK have all been listed as national innovative practices.
Figure 4 The launch of Jianghuai Big Data Center's platform
During the construction of Jianghuai Big Data Center's platform, iFLYTEK was also overseeing the
operations of the All in Wan app. With continual learning through data iteration, the Company created a national
benchmark for the business model of “database + app”. The All in Wan app recorded over 10 million active users
each month in 2021 and a total of over 10 billion visits.
Building upon its experience in the field of AI + smart city, iFLYTEK began exploring big data-based
inclusive health insurance in 2021. During the reporting period, Huimin insurance, (a government-led
inclusive-insurance programme) initially developed for Anhui Province, was launched in 20 cities across China,
serving over six million people. It has played an active role in substantially lowering the medical-treatment costs
for individuals and has prevented poverty caused by illness.
During the reporting period, the Company completed the development of a cloud speech-backed platform for
courts, which has been connected to 466 sub-platforms across the country, covering over 1,500 courts in 26
provinces. The platform achieves the unified application of speech technologies to courts around the country,
unified collection and training of speech materials, unified management and sharing of models and unified quality
and efficiency analysis of application data.
4. iFLYTEK Open Platform and consumer business
4.1 iFLYTEK Open Platform
In 2021, iFLYTEK Open Platform continued to offer diverse AI capabilities in fields such as multilingual
speech synthesis, multilingual speech recognition, natural language processing, image and text recognition and
human and machine interaction. These capabilities helped developers shorten development cycles and cut the
costs while promoting the launch of products in a highly efficient way. During the reporting period, the iFLYTEK
Open Platform was already offering the public 499 AI capabilities and solutions and had attracted 2.93 million
developers. The platform focused on 18 industries, including finance, agriculture and energy, providing them with
diverse smart-speech and AI capabilities and solutions. The AI marketing based on the iFLYTEK Open Platform
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has greatly helped partnerdevelopers cash in on their business and has seen a 55.5% revenue growth over the same
period of last year. In 2021, the Company received the “China Advertising Great-wall Awards”, the only
advertising award approved by the State Council.
The same year, the iFLYTEK 1024 Global Developer Festival was attended by 46,000 participants in person
and over 12 million participants online. The “Open Platform 2.0 Strategy” was formally unveiled at the festival.
Within the framework of the strategy, iFLYTEK will bring industry leaders together to lay the foundations of the
industry, while opening its technologies to gather more developers and their ideas, so that they can develop
applications through low- and zero- code programming. In this way, all parties in the AI industry will jointly build
the AI ecology in a highly-efficient way and enjoy win-win cooperation.
4.2 Consumer business
During the reporting period, based on its mission of “making work and learning easier and more efficient and
making life more comfortable and entertainment more accessible”, iFLYTEK rolled out and iterated smart AI +
office hardware products. The Company’s brand influence was further enhanced and its brand influence on
customers also improved significantly. Sales of consumer hardware and the GMV shot up by 140% and 152%
over the same period of last year, and the GMV on both JD and Tmall grew over 80%. Sales through new
marketing channels, including TikTok, also expanded rapidly, figuring as a major method of consumer products
marketing. In August 2021, iFLYTEK stepped up the marketing of its consumer brand as “advanced, ingenious,
evolving and caring”. The Company developed an extensive user-oriented physical retail model and opened 20
direct-sale stores in five Chinese cities, namely Beijing, Shanghai, Shenzhen, Hangzhou and Nanjing. Meanwhile,
the Company developed a flat organisational structure that comprises offline expansion, direct sales, products,
growth and training. Such a model has been proven effective and can be quickly applied to more places.
(1) iFLYTEK Input Method
During the reporting period, iFLYTEK released its input method V11.0, which adopts an automatic
speech-recognition framework, called temporal feedback end-end multi-channel ASR (TFMA) that integrates
front- and back-end systems. The framework allows breakthroughs in speech recognition in complex scenarios
and helps achieve highly efficient speech input in different scenarios. To date, the method supports speech
recognition in 12 foreign languages and 23 dialects and five ethnic languages from China. Meanwhile, keyboards
for Japanese and Korean inputting had also been added to satisfy multilingual communication needs.
In 2021, the total number of active users per month of the iFLYTEK input method grew by 20% and the monthly
use of its speech recognition function rose by 30%. The recognition and reputation of the iFLYTEK speech
technologies remained top in the industry.
(2) iFLYTEK AI Notebook
During the reporting period, the Company launched its second-generation AI Notebook X2, targeting
business conferences and simple office scenarios, and a product co-branded with LAMY from Germany. The
tablet enjoyed full upgrades in terms of design, efficiency, encryption and user friendliness. Based on the
speaker-separation technology, iFLYTEK AI Notebook X2 is able to achieve 95% accuracy in automatic speech
recognition in a multi-speaker scenario. Meanwhile, its offline recognition engine allows speech recognition and
transcription even without an Internet connection.
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Figure 5 iFLYTEK AI Notebook X2: full upgrades in design, efficiency, encryption and user
friendliness
iFLYTEK’s AI smart notebooks dominated the domestic market in 2021. The sales topped e-book products
over the two renowned online shopping sprees in China on 18 June and 11 November, and surpassed Kindle sales
for the first time on e-commerce platforms. During the reporting period, iFLYTEK AI Notebook X2 won Red Dot
Award from Germany and the gold prize at China’s MEI Awards in 2021. Meanwhile, the Company’s smart laptop
T1 won China’s Design Intelligence Award.
(3) iFLYTEK Smart Recorders
iFLYTEK smart recorders are a one-stop solution to customer needs such as speech recording, transcription,
translation, storage and file export. They come in the SR and H1 series for reporters, conference attendees, office
workers and teachers and students. The former has an independent terminal, while the latter may be used in
conjunction with the iFLYREC app. iFLYTEK launched the world’s first wristband recorder R1 in May 2021,
creating a new form of smart recorder. The Company launched the world’s first fully offline transcription device
SR302Pro in September 2021, which supports high-resolution recording, fully offline real-time transcription and
large storage.
Figure 6 iFLYTEK smart recorders
During the reporting period, iFLYTEK’s smart recorders remained atop the industry and their users grew by
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2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
43%. The devices are available in 876 cities in 158 countries across six continents, as well as in 3,545 physical
stores. They have won many awards, including the Red Dot Award from Germany, the iF Design Award, CRCC
safety certificate, International Design Excellence Award (IDEA), China Content Broadcasting Network (CCBN)
Annual Innovation Award, A’ Design Award, Big Data Expo Leading Technological Achievement, AWE Smart
Technology Award, “New Domestic Product” of China Brand Day, MEI Award and Goldreed Industrial Design
Award.
(4) iFLYTEK Smart Translator
During the reporting period, iFLYTEK’s Dual-screen Translator was officially launched at the China
International Consumer Products Expo. It supports simultaneous translation display to both the two sides in a
conversation, speech translation in 83 languages and image translation in 32 languages, with the languages
covering almost 200 countries and regions. Its Chinese and English online translation proficiency meets the
standard of the Test for English Majors-Band 8 (TEM-8), whereas its offline translation may reach China’s
College English Test level 6 (CET-6). This means it may satisfy users’ professional translation needs on different
occasions, such as business negotiations, talks or international conferences. The smart translator has continued to
shine at major international conferences, including Expo 2020, World Artificial Intelligence Conference, China
International Import Expo and World Manufacturing Convention.
Figure 7 iFLYTEK Dual-screen Translator offers dual-screen display, easy control and smooth
communication
(5) iFLYREC Intelligent Conferencing System
The iFLYREC app and website have to date served over 37 million customers and transcribed over 62
million hours of speeches at a 91% customer satisfaction rate. Targeting business customers, the iFLYREC
Intelligent Conferencing System has become a comprehensive technological support system with a 98% accurate
transcription rate and is able to convert a one-hour speech in as short as five minutes. It has achieved positive
application results in many businesses.
The iFLYREC Intelligent Conferencing System contributed enormously to improving meeting minutes
recording efficiency at China’s “Two Session” and multilingual communication events of the Beijing Organising
Committee for the 2022 Olympic and Paralympic Winter Games. At the “Two Sessions”, iFLYREC
unprecedentedly served as an AI meeting minutes recorder, promoting efficient reporting at the National People’s
Congress and the Chinese People’s Political Consultative Conference. The reports were generated with
significantly higher efficiency, greatly facilitating the IT application in government administration. With respect to
Beijing 2022, iFLYREC targeted the Organising Committee’s administration and information release to ensure
free communication between individuals and organizations. The smart conferencing system’s Chinese and English
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core speech-transcription and -translation technologies supported live information display on screens,
international conferences and interviews. The system was set up in 50 of the Organising Committees’ conference
offices, offering technical support for free communication at over 1,000 international exchange events.
5. AI solutions for business customers, including operators, smart automobiles and smart finance
companies
(1) For operators
During the reporting period, users of the smart home-television speech platform continued to grow in number,
with the daily interactions reaching 70 million times on average. The platform’s speech applications and services
were introduced in 18 Chinese provinces. Meanwhile, the smart customer services covered 20 provinces,
providing services on over 200 million occasions on average per month and saving the human resource costs of
around 5,000 call operators each year.
During the reporting period, iFLYTEK collaborated extensively with China Mobile. By combining AI and
5G networks, a 5G smart-communication platform was developed based on 5G networks’ smart computation. The
platform facilitates free communication and helps overcome language barriers among regions and countries. It
also effectively helps individuals with hearing problems to make video calls. The results were first seen at Beijing
2022, where the 5G calls allowed individuals with hearing problems to “see” the calls and overcome the digital
gap.
(2) For automobile manufacturers
In 2021, the Company’s smart-automobile solutions achieved breakthroughs in core technologies such as
multi-modal speech enhancement and multi-modal integrated interaction, allowing automobiles to capture
speeches more clearly and accurately. The innovative multilingual technological solutions have also helped the
automotive industry expand their business abroad. Meanwhile, the dedicated AI-cloud services based on
iFLYTEK’s core cloud technologies satisfied customers’ differentiated demands. Moreover, automotive audio
experience were enhanced following the release of a smart in-car audio-management system. The iFLYTEK
smart-automobile system was installed in 1,200 types of vehicles and were pre-installed on a total of 39 million
cars. During the reporting period, the Company’s smart-automobile solutions were pre-installed over 7 million
cars and adopted by 200 additional types of vehicles and 40 additional automobile manufacturers, with the
cooperation with regular customers growing by 90%The system recorded over 10 million active users per month
and nearly 2 billion times of speech interactions in 2021.
(3) For financial institutions
The Company’s smart finance business has covered the banking, insurance and securities industries, with
over 2,000 projects for smart customer service, marketing and business operations. iFLYTEK’s AI plus
financial-product solutions have now been adopted by all the leading financial enterprises. Furthermore, they are
being swiftly adopted by regional banks (such as Bank of Beijing and Bank of Ningbo) and are systematically
adjusted specific to the local conditions. During the reporting period, the penetration rate of iFLYTEK’s AI plus
financial applications jumped by over 200% among regional banks. In terms of the technologies involved, the
Company has achieved the application and expansion of speech, semantic and image technologies and combined
natural language understanding with computer visual technology to realize massive application of smart risk
control, assisted review and approval and smart consumer protection solutions.
III. Analysis of Core Competitiveness
1. Original core technologies at world-leading levels
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iFLYTEK remains committed to innovation in original core technologies. It was commissioned to build the
National Engineering Laboratory for Speech and Language Information Processing (NELSLIP) of the National
Development and Reform Commission (NDRC), a national new-generation open AI innovation platform for smart
speech of the Ministry of Science and Technology and China’s first key national laboratory of smart cognition. In
2021, NELSLIP passed the NDRC evaluation with the overall passing rate below 50% for all the participants. The
lab was then included into the new queue management system and built into the National Engineering Research
Center of Speech and Language Information Processing.
With its unique mechanism that integrates industries and academic and research institutes, iFLYTEK enjoys
unrivalled advantages in the technological field and has undertaken many major provincial and national scientific
and technological projects, including:
major special projects from the Chinese Academy of Sciences (CAS) in collaboration with the
University of Science and Technology of China (USTC), which made significant breakthroughs in different
languages. As of the end of 2021, the Company led the world with speech- and image-and-text recognition
technology in 14 major languages, and its speech synthesis, machine translation and language understanding
had caught up with the international standard. The speech recognition and synthesis and machine translation in
23 major languages had also caught up with the international level. Meanwhile, the Company began
collaborating with leading Chinese automobile exporters, such as SAIC Motor, Chery Automobile and
Changan Auto, providing them with multilingual support for their going-global initiative.
iFLYTEK Dual-screen Translator was nominated as an outstanding scientific and technological
achievement by CAS in 2021. The Company’s products, such as the iFLYREC Intelligence Conferencing
System, multilingual recorders and multi-modal virtual volunteers at the Beijing 2022, promoted effective
barrier-free communication at the Beijing 2022 and were highly recognized by the Organising Committee.
extensive participation in the Ministry of Science and Technology’s “Cohort Study of the Brain
Development of School-Age Children in China” of the major project “Brain Science and Neuromorphic
Research” of 2030. The Company worked with experts from Beijing Normal University, to measure cerebral
intelligence with a focus on reading capacity The Company also played a leading role in the key subject
“Building and Operating the Children’s Cerebral Intelligence Development Data and Information Platform”
and supported the national strategy related to brain science.
being tasked to create Anhui Province’s first innovative consortium – smart and innovative HMI
consortium – that fully allows businesses to turn to the public for solutions. Furthermore, it combines the entire
industry chain with tertiary institutes to tackle key technological challenges with a focus on industry-chain
security, independence and control.
During the reporting period, iFLYTEK won 10 authoritative international competitions in the AI field and the title
as a top Chinese science society. The honors have further strengthened the Company’s technological foundations
and advantages in areas such as education, healthcare and consumer products.
In January 2021, iFLYTEK won the Third DIHARD Speech Diarization Challenge (DIHARD-3). The
Company had enhanced the diarization capability of its machines in complex environments, and it was for the
first time that a Chinese team came top at the event.
In April 2021, iFLYTEK collaborated with the USTC on the project “Key Adaptive-Learning
Technologies and Their Application In Smart Education” and won the first prize of the Wu Wenjun Award for
Artificial Intelligence Science & Technology Advancements. The project’s technological breakthroughs in big
data and AI will overhaul the monotonous educational status quo. It will strongly support an optimized teaching
model that is based on students’ aptitude and greatly improve learning efficiency. The award is also known as
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“China’s highest award for smart science and technology” and represents the topmost honour in the AI field.
In June 2021, Tsinghua-iFLYTEK Joint Research Center took part in the International Conference on
Learning Representations’ Machine Learning for Preventing and Combating Pandemics workshop and
participated in the challenge of building a task-oriented dialogue system for automatic medical diagnosis. The
Tsinghua-iFLYTEK system passed a total of 2,374 dialogue tests involving 12 diseases and 118 symptoms and
came out top among over 70 teams with the most accurate inquiry and diagnoses.
In July 2021, iFLYTEK came out top at the Lightweight Optical Character Recognition Technological
Innovation Competition (LOCR) with 83.29% full-sentence accuracy in complex natural scenarios. The
innovative technology is able to recognize characters despite significant compression.
In August 2021, iFLYTEK and USTC-NELSLIP took part in the International Conference on Spoken
Language Translation (IWSLT) and came out top in three tracks in simultaneous interpreting. The Company had
once again shown its lead in speech translation and simultaneous interpreting after winning the end-to-end speech
translation at IWSLT in 2018.
In August 2021, with its years of technological experience in road-object detection, iFLYTEK broke the
world record with a detection score of 42.9 in Cityscapes 3D’s object-detection tasks following its previous
participation in the challenge in 2017 and 2018.
In October 2021, the Joint Laboratory of HIT (Harbin Institute of Technology) and iFLYTEK Research
(HFL) set a new world record with an average total score of 84.1 in the Cross-lingual Transfer Evaluation of
Multilingual Encoders. The evaluation covered 40 languages and comprised nine tasks in four categories,
including tracks such as sentence-pair classification, sequence tagging, reading comprehension and sentence
retrieval. The new record also shows that iFLYTEK’s multilingual-understanding and cross-lingual transfer
capabilities have reached yet another new level.
In October 2021, iFLYTEK came first in the multi-round text-generation task in a conversational
scenario at the Tenth Dialog State Tracking Challenge (DSTC10). Compared with previous text-dialogue tasks,
this one focused on conversations with the use of emojis in open fields and required multi-modal conversation
history to generate consistent and natural text responses. This has once again significantly prompted iFLYTEK’s
breakthroughs in core multi-modal and machine-human dialogue technologies.
In November 2021, iFLYTEK collaborated with USTC-NELSLIP to take part in the Open Automatic
Speech Recognition Challenge (OpenASR) organized by the National Institute of Standards and Technology
(NIST) of the U.S. The team came first in all 15 low-resource language tracks and seven non-low-resource
language tracks. This fully demonstrates iFLYTEK’s internationally leading proficiency in multilingual
technologies.
In December 2021, the HFL set a new world record with a total score of 72.8 in the multi-modal
reading-comprehension test of video cassette recorders, proving iFLYTEK’s profound strength in multi-modal
and deep-reading comprehension fields.
2. Systematic innovation – from core technology breakthroughs to extensive applications
From the achievement of breakthroughs in core technologies to their extensive application in industries, the
process is extremely challenging. On the one hand, the innovation team must be able to realize singular
breakthroughs and innovations throughout the business chain. Moreover, they must be able to find out scenarios
for large-scale application and provide appropriate business models. In this way, business and technology may
complement each other to generate value. Otherwise iFLYTEK would simply become a supplier of singular
technologies. iFLYTEK has always been committed to using AI to satisfy rigid social demands and has gained
overwhelming advantages in the following two fields:
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1) While continuing its innovation and lead in single-point core technologies, the Company has expanded
the width and depth of its technology system: from speech synthesis to speech evaluation and speech
recognition; from speech recognition to text embedded in image recognition and image recognition; from
single-modal recognition and synthesis to multi-modal overall perception and enriched expression; and
from smart cognition that enables machines to listen and speak to smart cognition that can understand
and think. Furthermore, the Company continues to take on more complex scenarios through means such
as multi-technological integration and innovation. The innovation of general basic algorithm has given
rise to the “amplifier effect” in different technologies, which helps drive the transformation and upgrade
from single-point core technological innovation to systematic innovation.
2) iFLYTEK is devoted to the principle of AI-value realisation, that is, tangible application examples,
expandable standard products and statistically provable application results. That is why it continues to
extensively promote and apply AI products and solutions for meeting major social needs, such as
education, healthcare and urban living, and in major economic fields, including automobile, finance and
consumer products. The Company’s growing profitability and market success have in turn helped
strengthening its advantages, such as an in-depth knowledge and understanding of the industrial
scenarios and algorithm iteration, which have strengthened the Company’s competitive edge in different
industries and fields.
In terms of smart education, iFLYTEK has made breakthroughs in multiple core AI technologies, including
spoken language evaluation, complex handwritten formula recognition, understanding of natural language in
texts and images, open-question intelligence assessments, multidimensional in-depth student profiles, optimized
learning-path planning and personalized recommendations. The Company has achieved systematic innovations in
major social subjects related to education, such as teaching according to students' aptitude, educational
assessments and efficient and independent learning. The systematic innovation of smart education has effectively
promoted personalized learning to alleviate students’ burden and improve their efficiency with knowledge graphs
and personal data. In addition, the integration of technology and classroom teaching has optimized the supply and
demand of educational resources and has provided teachers with more targeted teaching materials. iFLYTEK’s
solutions for teaching according to students' aptitude have been widely promoted – from Bengbu City in Anhui
Province and Qingdao City in Shandong Province to other places across China. As its business revenues from
education continue to grow, the Company is creating immense social value in addressing major social issues, such
as alleviating the burden of teachers and students. The use time of its Smart Classroom solution jumped by 315%
over the same period of last year and over 1 billion smart assignments were set. This has substantially alleviated
students of the burden of ineffective assignments while improving learning results, greatly supporting the
implementation of the “Double Reduction” policy.
3. A credible industrial brand and an extensive marketing and service system
In sectors relating to people’s livelihoods such as education and healthcare, iFLYTEK is widely recognized
thanks to the brand credibility it has gained as a “national AI team”. For example:
iFLYTEK is the only business to collaborate extensively with Beijing Normal University in the building
of the Ministry of Education’s “Collaborative Innovation Center of Assessment for Basic Education
Quality” and the NDRC’s “Model Project for the Research and Development and Application of
Basic-Education Big Data”.
iFLYTEK signed strategic collaboration agreement with the National Center for Educational
Technology (NCET) and jointly released industry reports, such as the Framework for the Development
of Artificial-Intelligence Technology and Engineering at Primary and Middle Schools and the 2021 Blue
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2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
Book for the Development of Smart Education: Smart Technology-Empowered Educational Evaluation.
Under the supervision of the State Language Commission, the Company has built and run a global
Chinese-learning platform, which uses AI technology to provide Chinese learners worldwide with
personalized Chinese-learning resources and tools.
iFLYTEK signed a strategic collaboration agreement with the China Education Association for
International Exchange (CEAIE) and jointly launched the AI Plus Education Expert Committee as its
secretariat.
iFLYTEK signed a strategic collaboration agreement with China Education Television (CETV) and
founded a joint-venture company, the only such company that CETV has set up with a business in recent
years.
iFLYTEK co-organized the Global AI Education Summit with Beijing Normal University, the NCET
and CEAIE. The Company also delivered a keynote report as the Chinese business representative at the
International Conference on Artificial Intelligence and Big Data in Education (AIDE), which was
organized by the United Nations Educational, Scientific and Cultural Organization (UNESCO) and
China’s Ministry of Education, National Commission for UNESCO and the People’s Government of
Beijing.
In terms of healthcare:
The iFLYTEK General Practice Medical Assistant was nominated as an outstanding achievement in
2021 by CAS’s Artificial Intelligence Industry-University-Research Innovation Alliance.
iFLYTEK Healthcare’s AI primary CDSS technology was listed among the pioneering
electronic-information technologies of the China Association for Science and Technology.
The iFLYTEK program “Application of Smart-Voice Technology in Electronic Medical Records” won
the “National AI Healthcare Innovation Award 2020” and “Clinical Application Innovation Award”.
iFLYTEK was selected as the best example of applying big data and AI to COVID-19 prevention and
control by the Chinese Medical Association.
iFLYTEK won the “Effective AI Empowerment during the Pandemic” award from the Science and
Technology Department of the Ministry of Industry and Information.
iFLYTEK was named as an outstanding example of pandemic-fighting AI-empowered medical
equipment by the China Medical Equipment Artificial Intelligence Alliance.
With its years of business experience, iFLYTEK has developed an extensive marketing network that covers
the entire country and has set up 23 regional marketing offices, covering every Chinese province. Furthermore,
iFLYTEK has effectively reached key customer groups in 73% of China’s over 2,800 districts and counties and
signed strategic cooperation agreements with 82 prefecture-level cities in 13 provinces.
To provide customers with better services, iFLYTEK has been actively strengthening the management and
building of its regional teams. The Company has developed an integrated sales and service system that fully
integrates both the front- and back-end processes, so as to support the extensive and rapid launch and promotion
of its products. Taking education for example, the Company has built an all-round system for both online and
offline services; the localized-service team with more than 2,000 members provides extensive services and
support. To date, iFLYTEK’s service system has provided services to over 100 million teachers and students from
50,000 schools across China, covering 92% of prefecture-level cities and all second-tier and above cities.
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2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
IV. Analysis of Main Business
1. Overview
During the reporting period, iFLYTEK’s core AI technology continued to make breakthroughs. Its
fundamental business had taken root in key locations and its strategy to drive development with original
technologies continued to generate desirable results. Meanwhile, the Company’s business scale and efficiency
were increasing as it strove not only to be one step ahead but to become a true leader in key fields. Generally, the
Company made a good start during the first year of the 14th Five-Year Plan period.
The commitment to “being indomitable” and developing an industry driven by independent
innovations: during the reporting period, iFLYTEK continued to lead the technological advancement in AI: At
the global multilingual speech-recognition competition staged by NIST, the Company came top in 22 events
involving 15 languages; the Company set the world record at its third Cityscapes competition; won the first prize
of the Wu Wenjun Award for Artificial Intelligence Science & Technology Advancements; became the champion
of three tracks at the IWSLT 2021 challenge; came top in the educational-cognition challenge staged by Neural
Information Processing Systems; winning the highest award in China’s intellectual property rights field: China’s
Golden Patent Award. In 2021, iFLYTEK won 10 authoritative international tests in the AI field and the title of a
top Chinese science society. The honors have further strengthened the Company’s technological foundations and
advantages in areas such as education, healthcare and consumer products. Moreover, the honors helped the
Company continue to develop the capability fundamental to its systematic innovation and ongoing development,
as well as assisting the Company in boosting its credibility as an industrial and technological brand with a
distinctive competitive edge.
The commitment to satisfying rigid social demands with fundamental business and creating value:
during the reporting period, the Company’s fundamental business continued to take root and grow in size. It
accounted for over 50% of the Company’s total revenues and set the local business standards with positive user
dependency, long-term operational capacity, ongoing growth potential and leading industrial value. The Company
has enjoyed an advantage in sustainable development by “tackling rigid demands and gaining generation-wide
edges over others”.
Steady business development to achieve sustainable and rapid business growth: The Company generated
an annual operating revenue of RMB18.3 billion in 2021, a year-on-year growth of 40.6%. Among all the listed
A-share companies, iFLYTEK was the only one with a consecutive annual operating revenue growth rate that
exceeded 25% over the last decade. The Company’s base area business was also ushering in a period of extensive
AI application. To facilitate swift business application and steadier development, the Company planned its
operations and personnel assignment beforehand based on specific human-resources models, which saw its
number of employees grew by 3,301 in 2021. Against such background, the Company generated a gross profit of
RMB7.533 billion in 2021, a like-for-like growth of 28.2%. The net profit reached RMB1.556 billion for its
shareholders, a year-on-year growth of 14.13%, and a net profit excluding non-recurring profits and losses
RMB979 million, , a year-on-year growth of 27.54%. While increased employees caused increased costs and
adversely impacted profit growth during the period, they consolidated the foundation for enhanced future
profitability of the Company, strengthened its role as an industry leader and guaranteed its sustainable
development.
For specific development in the Company’s main business in 2021, please see “Major Business of the
Company during the Reporting Period”.
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2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
2. Revenues and Costs
(1) Revenue breakdown
Unit: RMB
2021 2020
Increase/(decreas
Item Contribution to Contribution to
Amount Amount e) YOY
operating revenue operating revenue
Total operating revenue 18,313,605,605.92 100% 13,024,657,865.85 100% 40.61%
By industry
I. Main business
Software and information
18,052,041,197.82 98.58% 12,820,661,073.57 98.44% 40.80%
technology services
Education and teaching
224,217,683.51 1.22% 167,310,688.77 1.28% 34.01%
services
II. Other business 37,346,724.59 0.20% 36,686,103.51 0.28% 1.80%
By product
I. Main business
1. Education sector
Education products and
6,007,348,293.08 32.82% 4,019,222,681.95 30.86% 49.47%
services
Teaching services 224,217,683.51 1.22% 167,310,688.77 1.28% 34.01%
2. Smart city business
Information engineering 2,850,900,426.27 15.57% 1,773,613,518.25 13.62% 60.74%
Digital government
1,204,462,203.07 6.58% 1,025,307,509.84 7.87% 17.47%
applications
Smart administration and
918,237,445.42 5.01% 1,038,090,006.86 7.97% -11.55%
legal service applications
3. iFLYTEK Open Platform
and consumer business
iFLYTEK Open Platform 2,987,814,681.57 16.31% 1,920,794,562.91 14.75% 55.55%
Intelligent hardware 1,236,725,229.04 6.75% 873,228,157.56 6.70% 41.63%
Mobile Internet products
462,863,443.18 2.53% 285,960,859.66 2.20% 61.86%
and services
4. Operators
Operators related business 1,393,232,435.68 7.61% 1,098,888,765.96 8.44% 26.79%
5. Smart vehicles
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2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
Intelligent networked
449,414,135.30 2.45% 323,508,700.10 2.48% 38.92%
vehicle services
6. Smart healthcare
Healthcare services 337,867,525.71 1.84% 312,680,410.23 2.40% 8.06%
7. Smart finance
Smart financial products
196,729,251.86 1.07% 147,008,316.17 1.13% 33.82%
and solutions
8. Others 6,446,127.64 0.04% 2,357,584.08 0.02% 173.42%
II. Other business 37,346,724.59 0.20% 36,686,103.51 0.28% 1.80%
By region
I. Main business
Eastern China 10,019,356,758.47 54.72% 7,091,116,668.21 54.44% 41.29%
Southern China 2,268,908,133.81 12.39% 2,139,581,799.40 16.43% 6.04%
Northern China 2,235,094,034.24 12.20% 1,190,129,582.47 9.14% 87.80%
Southwestern China 1,519,332,972.24 8.30% 1,120,951,071.15 8.61% 35.54%
Central China 1,268,649,617.07 6.93% 542,372,928.72 4.16% 133.91%
Northeastern China 473,166,919.48 2.58% 239,080,443.83 1.84% 97.91%
Northwestern China 434,512,177.19 2.37% 481,906,435.79 3.70% -9.83%
Outside China 57,238,268.83 0.31% 182,832,832.77 1.40% -68.69%
II. Other business
Eastern China 37,346,724.59 0.20% 36,686,103.51 0.28% 1.80%
By sales model
Operating Revenue 18,313,605,605.92 100.00% 13,024,657,865.85 100.00% 40.61%
The Company is required to comply with the disclosure requirements for the software and information
technology services industry as stated in the Guidelines of Shenzhen Stock Exchange for Self-discipline Regulation
of Listed Companies No. 3: Industry Information Disclosure.
Unit: RMB
2021 2020
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2,501,303,21 3,817,347,31 4,549,313,26 7,445,641,80 1,408,820,48 2,940,380,80 2,934,873,82 5,740,582,75
Operating Revenue
7.85 4.77 7.14 6.16 9.46 0.55 3.63 2.21
Net profit
attributable to the 139,470,569. 279,107,268. 310,187,574. 827,698,481. -131,445,22 389,634,438. 296,070,808. 809,529,598.
listed company’s 39 35 93 89 9.01 91 70 13
shareholders
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2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
Description of why the operations were seasonal (or cyclical) and the fluctuation risks
The education business and smart city business of the Company target mainly at public institutions such as
schools and governments, as well as big enterprises. The project development has certain seasonal characteristics,
e.g. planning and justification in the first half year, and implementation in the middle or latter half of a year.
Judging from quarterly operations in the past two years, there is also the characteristic that the revenue is low in
the first quarter is low but high in the fourth quarter.
(2) Industry, product, geographical location and sales model that contribute over 10% to the Company's
operating revenue or profit
√ Applicable □ Not applicable
The Company is required to comply with the disclosure requirements for the software and information
technology services industry as stated in the Guidelines of Shenzhen Stock Exchange for Self-discipline Regulation
of Listed Companies No. 3: Industry Information Disclosure.
Unit: RMB
Increase/(decre
Gross Increase/(decreas Increase/(decreas
ase) of
Item Operating revenue Operating costs profit e) of operating e) of gross margin
operating
margin costs YOY YOY
revenue YOY
By customers' industry
Software and information
18,052,041,197.82 10,572,274,760.86 41.43% 40.80% 51.12% -4.00%
technology services
By product
Education products and
6,007,348,293.08 2,903,903,180.50 51.66% 49.47% 57.94% -2.59%
services
Open Platform 2,987,814,681.57 2,354,106,352.73 21.21% 55.55% 61.43% -2.87%
Information engineering 2,850,900,426.27 2,266,140,964.59 20.51% 60.74% 74.64% -6.33%
By geographical location
Eastern China 10,019,356,758.47 6,536,875,685.77 34.76% 41.29% 39.92% 0.64%
Southern China 2,268,908,133.81 1,134,009,333.72 50.02% 6.04% 35.68% -10.92%
Northern China 2,235,094,034.24 896,885,460.54 59.87% 87.80% 60.44% 6.84%
In the event that the statistical caliber of the Company's main business data is adjusted during the reporting period,
the Company's main business data for the most recent year was calculated with the adjusted caliber at the end of
the reporting period
□ Applicable √ Not applicable
(3) Whether the Company’s revenue from goods sold is higher than from service rendered?
□ Yes √ No
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2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
(4) Execution of the significant sales/procurement contracts signed by the Company up to the reporting
period
□ Applicable √ Not applicable
(5) Breakdown of operating costs
Industry
Unit: RMB
2021 Increase/(
2020
Industry Item decrease)
Percentage of Percentage of
Amount Amount YOY
operating costs operating costs
Software and information
Material cost 5,995,818,402.95 55.62% 3,775,549,842.58 52.82% 2.80%
technology services
Software and information Operating
3,424,059,399.99 31.76% 2,315,955,586.40 32.40% -0.64%
technology services costs
Personnel
Software and information outlays and
1,057,067,657.01 9.81% 850,758,062.35 11.90% -2.09%
technology services outsourced
labor
Operating
Teaching 299,758,728.31 2.78% 203,977,610.69 2.85% -0.07%
costs
Operating
Other business 3,644,276.79 0.03% 2,190,796.39 0.03% 0.00%
costs
Total 10,780,348,465.05 100.00% 7,148,431,898.41 100.00% 0.00%
The Company is required to comply with the disclosure requirements for the software and information technology
services industry as stated in the Guidelines of Shenzhen Stock Exchange for Self-discipline Regulation of Listed
Companies No. 3: Industry Information Disclosure.
Costs of main business
Unit: RMB
For the reporting period For the same period of last year
Increase/(decrease)
Cost breakdown Percentage of Percentage of
Amount Amount YOY
operating costs operating costs
Software and information
5,983,839,149.32 55.57% 3,768,052,401.63 52.77% 2.80%
technology services
Software and information
3,424,059,399.99 31.80% 2,315,955,586.40 32.43% -0.63%
technology services
Software and information
1,057,067,657.01 9.82% 850,758,062.35 11.91% -2.09%
technology services
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2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
Teaching 299,758,728.31 2.78% 203,977,610.69 2.86% -0.08%
Other business 3,644,276.79 0.03% 2,190,796.39 0.03% 0.00%
Total 10,768,369,211.42 100.00% 7,140,934,457.46 100.00% 0.00%
(6) Any changes in the scope of consolidated statement during the reporting period
√ Yes □ No
See "VII. Description of Any Changes in the Scope of Consolidated Statement over the 2020 Financial Report" in
"Section VI Significant Events" herein for details.
(7) Any significant changes in or adjustments to the Company's business, products or services during the
reporting period
□ Applicable √ Not applicable
(8) Major customers and suppliers
Major customers of the Company
Combined sales of the top five customers (RMB) 2,150,231,256.20
Percentage of combined sales of the top five customers in
11.74%
total annual sales
Percentage of sales by related parties among the sales by
3.69%
the top five customers in total annual sales
Information on the Company's top five customers
No. Customer name Sales (RMB) Percentage of total annual sales
1 Customer 1 675,077,341.14 3.69%
2 Customer 2 423,919,910.10 2.31%
3 Customer 3 416,303,290.20 2.27%
4 Customer 4 347,230,526.10 1.90%
5 Customer 5 287,700,188.66 1.57%
Total -- 2,150,231,256.20 11.74%
Notes to other information on major customers
√ Applicable □ Not applicable
Among the Company's top five customers, Customer 1 was comprised of China Mobile Limited and its
subsidiaries. This customer is an entity affiliated with the Company in accordance with Article 6.3.3 of the Rules
Governing the Listing of Shares on Shenzhen Stock Exchange (2022 Revision).
Major suppliers of the Company
Combined purchases by the top five suppliers (RMB) 1,833,653,209.64
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2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
Percentage of combined purchases by the top five suppliers in
24.73%
total annual purchases
Percentage of purchases by related parties among the purchases
0.00%
by the top five suppliers in total annual purchases
Information on the Company's top five suppliers
No. Supplier name Purchases (RMB) Percentage of total annual purchases
1 Supplier 1 806,976,056.02 10.88%
2 Supplier 2 351,538,906.12 4.74%
3 Supplier 3 280,186,570.46 3.78%
4 Supplier 4 205,164,235.04 2.77%
5 Supplier 5 189,787,442.00 2.56%
Total -- 1,833,653,209.64 24.73%
Notes to other information on major suppliers
□ Applicable √ Not applicable
3. Expenses
Unit: RMB
Increase/(de
Item 2021 2020 crease) Notes to major changes
YOY
Sales expenses 2,692,844,410.57 2,084,441,964.88 29.19%
Administrative 1,101,759,620.99 28.62%
856,632,560.34
expenses
Financial expenses -10,431,988.07 16,200,970.39 -164.39% Mainly as a result of interest income increase.
Research and
development (R&D) 2,829,840,977.50 2,211,061,146.73 27.99%
expenses
Mainly as a result of deferred income tax
Income tax expenses -114,030,689.84 14,852,434.38 -867.76%
decrease.
4. R&D inputs
√ Applicable □ Not applicable
The Company always places strategic importance on R&D. In a market-oriented way, it continues to refine
the core technology, develops new products, upgrades the product structure, and enhances its core competitiveness
across the board.
Inputs in R&D
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2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
Expected influence on the
Project
Major R&D projects Project purpose Objectives to be achieved Company's development in the
progress
future
To provide AI technology,
Platform for
system support, teaching and
Supporting To expand the market share of
research support, and resources Development To increase user satisfaction
Individualized individualized learning handbook
for individualized learning in completed with delivered handbooks
Learning Handbook product and save delivery cost
respect of teaching and
Resources
learning
To enhance the product's core
An intelligent laptop to
competitiveness and increase
facilitate the learning of To increase the conversion rate of
user satisfaction, via such
iFLYTEK Learning kindergarten to grade 12 (K12) Development sales and expand the Company's
functions as AI-powered
Pad students, which is based on the completed share in the learning laptop
diagnosis of homework and
AI-powered, customized and market
test papers, and AI-powered
targeted learning system
Answering Pen
To develop new products of To expand the new applications of
Based on the AI technology of AI-based Listening and AI-based Listening and Speaking
iFLYTEK, to enable the Speaking in Classrooms to in Classrooms among K12
closed-loop application in a meet the needs of classroom students and enrich the
full range of scenarios across teaching; integrate product application scenarios across
teaching, learning, users, resources, and business English teaching, learning,
examination, assessment and data to enhance product examination, assessment and
management of English competitiveness; optimize management; integrate and
Teaching and Test Development
listening and speaking, provide product functions to respond connect the application scenarios
Platform completed
a full package of solutions of quickly to external customers' of English teaching, learning,
English listening and speaking needs and promote cost examination, assessment and
for education authorities, and reduction and efficiency gain; management for unified
help students improve their optimize and upgrade the management and operation;
comprehensive ability of technical architecture to consolidate the foundation of
English listening, speaking, solidify the foundation and English Teaching and Testing
reading and writing serve long-term business Platform to support the
development longer-term positive development
of business
To provide a great variety of
high-quality resources for To improve the influence of
To provide teachers with the lesson preparation and iFLYTEK's content, build
R&D of systematic digital teaching resources Under teaching with a wide iFLYTEK's resource brand, and
teaching resources needed for lesson preparation development coverage for higher lesson help with the implementation of
and teaching preparation and teaching the strategy of teaching according
efficiency of users and greater to students' abilities
usage rate and satisfaction
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2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
To equip the intelligent To continuously replenish and To improve the user satisfaction
Consumer software
education pads on offer with optimize software and content and reputation of the system
and content
intelligent learning functions Under resources to improve user products, increase sales
development of
and resources across different development experience and satisfaction conversion, and further expand
iFLYTEK Learning
periods of schooling and over and sharpen product the market share of the products
Pad
all subjects competitiveness on offer in the industry
To develop a solution for
individualized learning that
integrates all the main processes
To refine and optimize the and scenarios of daily teaching,
usability of the explore, develop and successfully
frequently-used core implement the "one, two, one"
To explore the application
functions of homework homework model, which has
Secondary School value of teaching according to Development
products, complete the become a featured homework
Homework students' abilities by completed
upgrade of the old homework model of iFLYTEK after the
addressing multi-project needs
platform, and improve the policy of easing the burden of
competitiveness of the excessive homework and
products off-campus tutoring for students
undergoing compulsory education
(the "double reduction" policy)
was introduced
To provide individualized
training methods and tools for To boost users' learning To drive up the awareness and
K12 users in the hope of efficiency through continuous technology of the education
Aixue Services Development
improving their learning innovation and iteration of industry, and work for higher
Platform completed
awareness and effectiveness the product's education intelligence in the smart
while reducing the burden of concept education industry
studies on them
To provide K12 students with
AI-featured technological To develop products specific to
To work for regular use at
AI-powered innovation education, and different teaching application
Under schools through optimization
innovative education improve teachers' and students' scenarios for market
development and iteration of products and
products information technology (IT) breakthrough and formation of a
development of new products
literacy and innovation and sales model
creativity
To continuously release and
To develop an To enhance influence in the AI
launch the latest capabilities
industry-leading platform for industry and core technological
iFLYTEK Open and solutions of AI products,
Development AI ecosystem, and maintain prowess of AI, and help
Platform and improve the platform
completed the largest market share iFLYTEK establish No. 1 AI
ecosystem and the functions of
among developers brand
commercialized system
iFLYTEK To complete the AI Helper To further expand the user To deepen the value created by
AI-powered Input function of the input method, base, and achieve a the input method to users, and
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2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
Method support the keyboard's Under break-even of the project continue to consolidate the brand
multilingual function such as development under various profit-making influence of iFLYTEK among the
Japanese and Korean, and models by making the most general public
complete the development and of the users of the input
adaptation of Harmony input method
method; and lead peers in
terms of Pinyin and speech
effect
To develop a variety of core
HMI technologies. To To meet the daily needs of natural
Open, Cloud-based complete the adaptation of the HMI in English and Chinese, and
Natural Chinese HMI system to To break barriers and develop empower the Company's support
Human-Machine localized operating systems a homegrown English HMI for China's home appliance and
Under
Interaction (HMI) and chip platforms, and build a system, and achieve localized mobile phone producers to export
development
System Oriented to localized multi-modal HMI production. overseas and the intelligent
IoT—Platform algorithm platform that manufacturing industry to expand
supports Chinese and English in the global market
interaction
To address the adaptation of
To work on the R&D of the To address the risk of a
speech-related core technology
real-time interaction system on disruption to supply because
involved in the cloud-based HMI
Open, Cloud-based the cloud characterized by high the deployment of China's
system on the localized chip
Natural HMI System concurrency, great stability, HMI systems relies on
platforms, including Cambricon
Oriented to and big flexibility, develop Under foreign equipment, realize the
and Zhaoxin, realize the
IoT—One-stop homegrown intelligent devices development adaptation of domestic
localization of the cloud-based
Marketing Cloud based on localized operating operating systems and chip
system, and help the Company
Platform systems, and provide flexible platforms, and put in place a
secure a place in the capability
and easily accessible Chinese and English HMI
adaptation of the localized
integration solutions system
platforms
To provide visualized To shore up the weakness of
operations of function localized terminal device
Open, Cloud-based development, device access systems and platforms that To adapt terminal acoustic
Natural HMI System and service access for smart they are not empowered by algorithms and access protocols
Oriented to device manufacturers in IoT core technology, allow the on the localized operating
Under
IoT—Advertising industry, and meet the needs of HMI system to support systems and Hisilicon chip
development
Transactions IoT manufacturers to develop localized terminal platforms, platform, and support calls of
Platform natural language understanding and improve the application localized terminals on platforms
models in vertical fields and foundation of localized
develop personalized HMI platforms
Intelligent Habitat To develop the intelligent To provide customers with To provide whole-chain services
All-scenario habitat AI middle office and Under platform-level AI capability ranging from support with core
AI-powered Middle data analysis platform and the development clusters, provide customers technology and establishment of
office System for all-scenario intelligent habitat with integrated solutions for ecosystem partnerships to
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2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
Digitalization of operating system entry-level smart hardware marketing empowerment under
Real Estate development, and help real the business scenario of product
Developers estate developers with digitization in the real estate
technological transformation industry
and business upgrade
To build data analysis and
marketing platforms, and put
in place a closed-loop
marketing platform from data
To develop a perfect big To develop the big data-based
collection, data analysis, and
data-based marketing marketing platform and services
marketing to retrospective
platform for large financial of iFLYTEK and help customers
effect optimization by
institutions and large retailers succeed by leveraging the
iFLYTEK Voice leveraging the strength of Under
nationwide to enable such technical and product advantages
Cloud Data Platform iFLYTEK in big data and development
product functions as sound of iFLYTEK in AI, intelligent
tapping the value of data To
operations management and speech interaction, natural
provide users with a one-stop
data analysis, data automation language processing, big data and
analysis of marketing data
and custom analysis data analysis and mining
platform, while providing
strong support for deep
exploitation of the value of big
data in marketing
To complete the development
of the Virtual Human Services
Platform, work on higher
digitalization and intelligence To utilize AI virtual human To enhance the market
of corporate business under the for better digitalization and competitiveness of AI virtual
virtual human service scenario, intelligent application of human, establish AI virtual
AI Virtual Human Under
provide customers in selected industry customers' business, human brand, and work for
Services Platform development
industries with software improve service efficiency launch of a series of application
interface services, standardized and experience, and reduce products and ecosystem
products, standardized and service cost cooperation
customized services of
software and hardware
all-in-one machine
To continuously ensure the
To conduct R&D of the stability and growth of
ringtone products and services revenue from the ringtone
To continue to meet user needs,
platform boasting core business, improve the user
Under create the best experience for
Cool Ringtones competitiveness to improve experience of Cool Ringtones
development users, and further expand market
user experience, while related products, and
share
exploring new business complete the exploration of
directions new profit-making model and
business transformation
40
2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
To provide speech and related To improve the user To expand market share among
Under
AI TV Helper AI capability support for experience of the products operators and reduce business
development
operators and user activation operation costs
To develop a set of intelligent
To complete the development
customer service system for
and launch of Hotel AI Phone
To provide hotel operators hotels, support the access of a
Keeper, so as to help hotel staff
Hotel AI Phone with AI phone keeper SaaS variety of terminal devices and
handle a large number of Development
Keeper SaaS platform rental service, which applications, support the
process-related, simple and completed
Platform can be customized to answer development of multiple business
repetitive tasks, easing their
general phone calls processes, and enhance
workload and helping hotels
competitiveness in the hotel
save manpower
market
R&D staff
2021 2020 Change (%)
Number of R&D staff 8,367 6,461 29.50%
Percentage 58.48% 58.70% -0.22%
Education background —— —— ——
Age composition —— —— ——
Inputs in R&D
Item 2021 2020 Change (%)
Amount of R&D inputs (RMB) 2,935,836,674.77 2,416,243,833.83 21.50%
Percentage of R&D inputs to operating 16.03% -2.52%
18.55%
revenue
Capitalized R&D inputs (RMB) 1,129,996,985.31 1,032,742,430.63 9.42%
Percentage of capitalized R&D inputs to
38.49% 42.74% -4.25%
R&D inputs
Reason for a significant change in the percentage of total inputs in R&D in operating revenue over last year
□ Applicable √ Not applicable
The Company is required to comply with the disclosure requirements for the software and information technology
services industry as stated in the Guidelines of Shenzhen Stock Exchange for Self-discipline Regulation of Listed
Companies No. 3: Industry Information Disclosure.
Unit: RMB
Capitalized Project
Major R&D projects Project purpose
amount of R&D progress
To continuously release and launch the latest capabilities and
iFLYTEK Open
68,469,151.98 solutions of AI products, and improve the platform ecosystem Development
Platform
and the functions of commercialized system completed
iFLYTEK AI-powered To complete the AI Helper function of the input method, support Under
52,821,567.91
Input Method the keyboard's multilingual function such as Japanese and development
41
2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
Korean, and complete the development and adaptation of
Harmony input method; and lead peers in terms of Pinyin and
speech effect
An intelligent laptop to facilitate the learning of kindergarten to
Development
iFLYTEK Learning Pad 45,500,278.21 grade 12 (K12) students, which is based on the AI-powered,
completed
customized and targeted learning system
Through endeavors in the English HMI field, to work on the
Open, Cloud-based R&D of many core technologies on HMI, e.g. wake-on-English
Natural voice, English speech recognition, English semantic
Human-Machine understanding, and English speech synthesis To complete the Under
26,318,335.47
Interaction (HMI) adaptation of the Chinese HMI system to localized operating development
System Oriented to systems and chip platforms, and build a localized multi-modal
IoT—Platform HMI algorithm platform that supports Chinese and English
interaction
Open, Cloud-based To work on the R&D of the real-time interaction system on the
Natural HMI System cloud characterized by high concurrency, great stability, and big
Oriented to flexibility, and deploy it in many computer rooms at home and Under
20,676,222.95
IoT—One-stop abroad for synchronization. To develop homegrown intelligent development
Marketing Cloud devices based on localized operating systems, and provide
Platform flexible and easily accessible integration solutions
Open, Cloud-based
Natural HMI System To develop open HMI platform, and provide the visualized
Under
Oriented to 20,067,376.03 operations of skill development, device access and service
development
IoT—Advertising access for smart device manufacturers in IoT industry
Transactions Platform
To provide speech and related AI capability support for
operators, with a focus on optimizing the product experience,
Under
AI TV Helper 17,279,019.40 for better hardware sales, internal support and industry-leading
development
on the basis of ensuring the innovation of functions and basic
operations
Consumer software and To equip the intelligent education pads on offer with intelligent
Under
content development of 16,556,380.44 learning functions and resources across different periods of
development
iFLYTEK Learning Pad schooling and over all subjects
Intelligent Habitat
All-scenario
To develop the intelligent habitat AI middle office and data
AI-powered Middle Under
16,467,843.54 analysis platform and the all-scenario intelligent habitat
office System for development
operating system
Digitalization of Real
Estate Developers
R&D of systematic To provide teachers with the digital teaching resources needed Under
15,986,616.93
teaching resources for lesson preparation and teaching development
To build data analysis and marketing platforms, and put in place
iFLYTEK Voice Cloud Under
a closed-loop marketing platform from data collection, data
Data Platform 14,906,019.19 development
analysis, and marketing to retrospective effect optimization by
42
2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
leveraging the strength of iFLYTEK in big data and tapping the
value of data. To provide users with a one-stop analysis of
marketing data platform, while providing strong support for
deep exploitation of the value of big data in marketing
To complete the development and launch of Hotel AI Phone
Hotel AI Phone Keeper Keeper, so as to help hotel staff handle a large number of Development
14,712,988.66
SaaS Platform process-related, simple and repetitive tasks, easing their completed
workload and helping hotels save manpower
Platform for Supporting To provide AI technology, system support, teaching research
Development
Individualized Learning 13,824,878.90 support, and resources for individualized learning in respect of
completed
Handbook Resources teaching and learning
To complete the development of the Virtual Human Services
Platform, work on higher digitalization and intelligence of
corporate business under the virtual human service scenario,
AI Virtual Human Under
13,760,108.33 provide financial, media, governmental and corporate customers
Services Platform development
with software interface services, standardized products,
standardized and customized services of software and hardware
all-in-one machine
To refine and optimize usability of the frequently-used core
functions of homework products, complete the upgrade of the
Secondary School Development
12,771,081.32 old homework platform, synchronously address the market
Homework completed
needs of multiple projects, and explore the application value of
teaching according to students' abilities
Targeting at K12 users, the project, with localized high-quality
subject resources and other infrastructures, customizes diagnosis
Aixue Services Under
12,744,136.14 and learning solutions, to help students devise a reasonable
Platform development
learning path and learn more efficiently under a lesser burden of
studies
To provide K12 students with AI-featured technological
AI-powered innovative innovation education, and improve teachers' and students' Under
10,943,531.90
education products information technology (IT) literacy and innovation and development
creativity
Leveraging the Company's core technology, to conduct R&D of
the ringtone products and services platform boasting core Under
Cool Ringtones 10,817,999.30
competitiveness to improve user experience, while exploring development
new business directions
Based on the AI technology of iFLYTEK, to enable the
closed-loop application in a full range of scenarios across
teaching, learning, examination, assessment and management of
Teaching and Test Development
10,597,877.40 English listening and speaking, provide a full package of
Platform completed
solutions of English listening and speaking for education
authorities, and help students improve their comprehensive
ability of English listening, speaking, reading and writing
1. The capitalization of the Company's R&D inputs is subject to the following recognition conditions:
43
2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
(1) It is technically feasible to develop the intangible asset so that it may be used or sold;
(2) The Company intends to complete the development of the intangible asset, to use or to sell it;
(3) The way in which the intangible asset generates economic benefits, including the ability to prove that the
products produced using the intangible asset have market or the intangible assets themselves have market, and the
intangible asset will be used internally, can prove the usefulness;
(4) The Company has adequate technological, financial and other resources to support the completion of the
intangible asset development and is able to use or sell the intangible asset; and
(5) Expenditure attributable to development phase of the intangible asset can be reliably measured.
2. Related internal controls and their implementation
(1) Project initiation
After the project manager submits the project initiation application, the project management office will
organize all parties to review. Then, the middle-level managers and senior managers, as well as EMT managers,
president and chairman of the Group will make final approval according to the nature of the project and the
budget amount. The internal control design in this step ensures that the R&D project has been fully and
scientifically demonstrated and effectively approved by the management.
(2) Project change
The project manager submits the change application, and the project management office organizes all parties
to review it. After the review is passed, the middle-level managers, senior managers in charge and EMT managers
of the group will make final approval according to the nature of the project and the budget amount. The internal
control design in this step ensures that the change in the R&D project is reasonable and has been effectively
approved by the management.
(3) Project closing
The project manager submits the project closing application, and the budget manager submits it to the project
management office for closing review after budget review, to evaluate whether the related indicators have been
completed, the expected results been achieved, and secondary R&D is needed, etc. If the project passes the
above-mentioned review, it will be submitted to the head of the business unit for approval, and to the middle-level
managers and senior managers in charge for approval according to the nature of the project and the budget amount.
The internal control design in this step ensures that the closing of the R&D project has been effectively evaluated
on an independent basis and approved by the management.
Reasons for the significant change in capitalization rate of R&D inputs and its reasonableness
□ Applicable √ Not applicable
5. Cash flow
Unit: RMB
Increase/(decrease) over the
Item 2021 2020
same period of last year
Subtotal of cash inflows from 18,622,185,224.19 13,779,556,349.60 35.14%
operating activities
Subtotal of cash outflows from 17,729,109,792.88 11,508,801,493.66 54.05%
operating activities
44
2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
Net cash flows from operating 893,075,431.31 2,270,754,855.94 -60.67%
activities
Subtotal of cash inflows from 248,647,456.34 1,086,124,653.16 -77.11%
investing activities
Subtotal of cash outflows from 2,827,942,108.44 1,821,413,476.56 55.26%
investing activities
Net cash flows from investing -2,579,294,652.10 -735,288,823.40 250.79%
activities
Subtotal of cash inflows from 4,094,224,490.83 1,890,469,448.88 116.57%
financing activities
Subtotal of cash outflows from 1,715,438,704.56 1,985,647,298.18 -13.61%
financing activities
Net cash flows from financing 2,378,785,786.27 -95,177,849.30 2599.31%
activities
Net increase in cash and cash 686,911,857.43 1,437,257,416.50 -52.21%
equivalents
Explanation on major factors causing significant year-on-year changes in relevant data
√ Applicable □ Not applicable
(1) The net cash flows from the Company's operating activities decreased by 60.67% in 2021 over 2020,
mainly due to the increase in cash for purchasing goods and receiving labor services.
(2) The net cash flows from the Company's investment activities increased by 250.79% in 2021 over 2020,
which was mainly due to the larger amount of cash received by the Company in the previous year from the
purchase of structured deposits at maturity and the disposal of fixed assets, and the increase in cash paid for the
purchase and construction of fixed assets, intangible assets and other long-term assets during this period.
(3) The net cash flows from the Company's financing activities increased by 2599.31% in 2021 over 2020,
mainly due to the increase in the amount of funds received by the Company from non-public offerings this year.
Reason for the significant difference between the net cash flows from the Company's operating activities during
the reporting period and the net profit for the year
□ Applicable √ Not applicable
V. Analysis of Non-main Business
□ Applicable √ Not applicable
VI. Analysis of Balance Sheet
1. Major Changes in Assets Composition
Unit: RMB
Item At the end of 2021 At the beginning of 2021 Increase/(decrease)
45
2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
Percentage Percentage in percentage
Amount of total Amount of total
assets assets
Cash and cash equivalents 5,869,934,498.97 18.70% 5,350,027,393.05 21.24% -2.54%
Accounts receivable 7,485,907,223.92 23.84% 5,467,912,568.95 21.71% 2.13%
Inventories 2,433,958,499.25 7.75% 2,378,935,699.96 9.45% -1.70%
Contract assets 872,957,868.27 2.78% 480,185,851.21 1.91% 0.87%
Other current assets 785,233,724.05 2.50% 103,969,197.98 0.41% 2.09%
Long-term receivables 1,349,656,441.96 4.30% 1,007,891,262.92 4.00% 0.30%
Long-term equity
717,774,229.09 2.29% 567,091,669.89 2.25% 0.04%
investments
Other non-current
1,303,033,663.76 4.15% 1,082,191,506.46 4.30% -0.15%
financial assets
Investment properties 186,138,183.59 0.59% 233,699,917.01 0.93% -0.34%
Fixed assets 2,522,658,852.39 8.04% 1,839,011,067.38 7.30% 0.74%
Constructions in progress 286,774,067.37 0.91% 267,414,007.21 1.06% -0.15%
Right-of-use assets 442,630,344.44 1.41% 349,065,196.20 1.39% 0.02%
Intangible assets 2,391,889,408.30 7.62% 1,908,355,236.54 7.58% 0.04%
Development expenditure 795,676,085.67 2.53% 1,087,369,464.44 4.32% -1.79%
Goodwill 1,126,453,239.15 3.59% 1,110,918,321.27 4.41% -0.82%
Deferred income tax assets 1,106,670,124.28 3.53% 610,707,150.69 2.42% 1.11%
Short-term borrowings 525,433,319.10 1.67% 642,621,532.44 2.55% -0.88%
Bill payable 2,525,673,609.38 8.05% 2,405,992,623.78 9.55% -1.50%
Accounts payable 3,852,801,201.35 12.27% 2,828,498,890.65 11.23% 1.04%
Contract liabilities 1,385,477,240.76 4.41% 1,668,203,863.02 6.62% -2.21%
Other payables 1,594,961,432.44 5.08% 1,200,826,071.66 4.77% 0.31%
Long-term borrowings 392,039,217.02 1.25% 82,474,789.20 0.33% 0.92%
Lease liabilities 350,883,846.25 1.12% 286,049,331.00 1.14% -0.02%
Provision 789,771,420.91 2.52% 702,985,683.55 2.79% -0.27%
High percentage of overseas assets
□ Applicable √ Not applicable
2. Assets and liabilities measured at fair value
√ Applicable □ Not applicable
Unit: RMB
46
2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
Accumulative
Profit or loss Impairment
fair value Purchased
Beginning on changes in provision set Sold during the Other Closing
Item changes during the
balance fair value aside during period decreases balance
recorded into period
during the the period
equity
period
Financial
assets
1. Financial
assets held for
trading
1,082,191,506 331,410,437. 2,936,832. 1,303,033,6
(excluding 7,545,000.00 115,176,448.36
.46 96 30 63.76
derivate
financial
assets)
Sub-total of
1,082,191,506 331,410,437. 2,936,832. 1,303,033,6
financial 7,545,000.00 115,176,448.36
.46 96 30 63.76
assets
1,082,191,506 331,410,437. 2,936,832. 1,303,033,6
Total 7,545,000.00 115,176,448.36
.46 96 30 63.76
Other changes
The investment of RMB10.5 million in Anhui Imaging Union Co., Ltd. was included in long-term equity
investments for accounting.
Any significant change in the measurement attributes of the Company's major assets during the reporting period
□ Yes √ No
3. Restrictions upon assets rights as of the end of the reporting period
Item Carrying amount on 31 December 2021 Reason for restriction
Margins for banker's acceptance bills and
Cash and cash equivalents 325,818,033.49
letters of guarantee
Bill receivable 116,083,627.22 Pledged for the Group's bills pool business
Intangible assets 292,829,358.04 Mortgage loan
Total 734,731,018.75 ——
VII. Investment Analysis
1. Overview
√ Applicable □ Not applicable
47
2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
Amount of investments during the Amount of investments during the same
Change (%)
reporting period (RMB) period of last year (RMB)
190,575,000.00 261,043,090.43 -26.99%
2. Significant equity investments received during the reporting period
□ Applicable √ Not applicable
3. Significant non-equity investments under way during the reporting period
□ Applicable √ Not applicable
4. Investments in financial assets
(1) Investments in securities
√ Applicable □ Not applicable
Unit: RMB
Profit or
loss on Profit or
Accumulativ Book
changes Sold loss
Initial Accounting Book value e fair value Purchased value
in fair during during Accounting Source
types code name investment measurement at period changes during the at
value the the item of fund
cost model beginning recorded into period period
during period reporting
equity end
the period
period
Chinese Other
372,62
and 6051 9,180,000. Fair value 199,938,37 172,684, 172,684, non-current Own
3ren 2,950.0
foreign 68 00measurement 5.00 575.00 575.00 financial capital
0
stocks assets
Chinese Other
Cam 405,95
and 6882 10,000,000 Fair value 313,283,63 92,674,5 92,674,5 non-current Own
brico 8,220.1
foreign 56 .00measurement 5.89 84.21 84.21 financial capital
n 0
stocks assets
Chinese Other
and H000 Sens 2,867,255. Fair value 33,788,707 38,160,0 38,160,0 71,948, non-current Own
foreign 20 etime 08measurement .81 92.19 92.19 800.00financial capital
stocks -W assets
Other investment
securities held at -- -- --
period end
22,047,255 -- 547,010,71 303,519, 0.00 0.00 0.00 303,519, 850,52 -- --
48
2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
Total .08 8.70 251.40 251.40 9,970.1
0
(2) Investments in derivatives
□ Applicable √ Not applicable
The Company did not invest in derivatives during the reporting period.
5. Use of proceeds from fundraising activities
√ Applicable □ Not applicable
(1) Overview of the use
√ Applicable □ Not applicable
Unit: RMB10,000
Raised Percentage
funds with Add-up of of add-up Purpose
a change raised of raised and Raised
Use of Accumulat
Fund-rai Total in funds with funds with Raised direction funds in
Fund-raising raised ed use of
sing raised investment a change a change funds not of the idle for
method funds raised
year funds purpose in in used yet raised over two
during the funds
during the investment investment funds not years
period
reporting purpose purpose used yet
period (%)
Private
2019 286,185.18 0 286,185.18 0 0 0.00% 0 -- 0
offering
Private
2021 253,676.99 253,676.99 253,676.99 0 0 0.00% 0 -- 0
offering
Total -- 539,862.17 253,676.99 539,862.17 0 0 0.00% 0 0
Notes to the use of raised funds
1. Stocks privately issued in 2019:
Upon approval by China Securities Regulatory Commission in its Z.J.F.X.Z. [2019] No. 517 Document, the Company made a
private issuance of 108,000,000 RMB-denominated ordinary shares (A shares) at a price of RMB27.10 per share in July 2019.
According to the Capital Verification Report (R.C.Y.Z. [2019] No. 6464) issued by RSM Certified Public Accountants (Special
General Partnership), the total amount of fund to be raised was RMB2,926.8 million, and the net amount of fund actually raised
after deduction of issuing expenses was RMB2,861.8518 million. The said raised fund has become fully available on 5 July 2019,
and put by the Company into a special account for management.
As per the implementation program of the projects for raising funds from non-public offering of stocks in 2019, as of 31 December
2020, all these projects have been closed, cumulatively utilizing the raised money of RMB2,490.6871 million. The raised funds not
utilized yet amounted to RMB371.1647 million. With respect to the portion not utilized, upon review by the 12th Meeting of the
Fifth Board of Directors and the Eighth Meeting of the Fifth Board of Supervisors both held on 18 April 2021, as well as the
49
2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
Annual General Meeting for 2020 held on 10 May 2021, the surplus raised funds of RMB427.6347 million (the actual amount was
subject to the balance of the said account of raised funds on the day of transfer into the own capital account. It was RMB428.854
million) were used to permanently replenish the working capital and finance the Company's day-to-day production and business
activities (the difference between the amount of the surplus raised funds and that of raised funds not utilized was mainly caused by
the proceeds from cash management and interest income from banks). In the meanwhile, the Company has canceled all the special
accounts of raised funds, while the escrow agreements in respect of the special accounts of raised funds signed by and between the
Company and its subsidiaries and the sponsors and commercial banks depositing the raised funds been terminated as well.
2. Stocks privately issued in 2021:
Upon approval by China Securities Regulatory Commission in its Z.J.X.K.[2021] No. 1769 Document, the Company made a
private issuance of 76,393,048 RMB-denominated ordinary shares (A shares) at a price of RMB33.38 per share in July 2021.
According to the Capital Verification Report (R.C.Y.Z. [2021] No. 230Z0152) issued by RSM Certified Public Accountants
(Special General Partnership), the total amount of fund raised was RMB2,549.9999 million, and the net amount of fund actually
raised after deduction of issuing expenses was RMB2,536.7699 million. The said raised fund has become fully available on 7 July
2021, and put by the Company into a special account for management.
In line with the raised fund utilization plan, the Company has used the total net amount of raised fund after deduction of fees to the
intermediaries and other related expenses to supplement the working capital. The raised fund has been used as planned. In the
meanwhile, the Company has canceled all the special accounts of raised funds, while the escrow agreements in respect of the
special accounts of raised funds signed by and between the Company and its subsidiaries and the sponsors and commercial banks
depositing the raised funds been terminated as well.
(2) Projects committed for the raised funds
√ Applicable □ Not applicable
Unit: RMB10,000
Investment
projects
Date of
committed Total Accumulated Progress of Benefits
Projects Total Amount the Material
and commitment amount investment realized Expected
changed investment invested project change in
destination amount of invested at at the during benefits
(partially amount after during the reaching project
of the investments the period period end the met
changed) adjustments reporting the feasibility
funds with the end (3)＝ reporting (yes/no)
(yes/no) (1) period intended (yes/no)
raised raised funds (2) (2)/(1) period
use
above the
quota
Investment projects committed
Next-gener
ation Core
Sensing & Not
Cognitive No 55,000 55,000 0 55,514.6 100.94% applicabl No
Technolog e
y R&D
Project
50
2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
Intelligent
Speech
01
AI-powere 314,648.
No 90,198 90,198 0 59,725.38 66.22% January Yes No
d Open 56
2021
Platform
Project
Intelligent
Service
Robotics
01
Platform 44,637. 81,230.9
No 44,637.18 0 42,946.37 96.21% January Yes No
and 18 2
2021
Applicatio
n Product
Project
Sale and
Service Not
System 44,000 44,000 0 38,413.3 87.30% applicabl No
No
Upgrade e
Project
Replenishi Not
ng working No 52,350 52,350 0 52,469.06 100.23% applicabl No
capital e
Subtotal of
investment 286,18 395,879.
-- 286,185.18 0 249,068.71 -- -- -- --
projects 5.18 48
committed
286,18 395,879.
Total -- 286,185.18 0 249,068.71 -- -- -- --
5.18 48
Fact and
reason of
failure to
meet the
expected
Not applicable
progress or
expected
benefits
(by
project)
Explanatio
n of
Not applicable
material
changes in
51
2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
project
feasibility
Amount,
purpose
and
progress in
use of the Not applicable
funds
raised
above
quota
Change in
the
location of
implementi
ng the
Not applicable
project
invested
with the
raised
funds
Change in
the method
of
implementi
ng the
Not applicable
project
invested
with the
raised
funds
Applicable
Advance The Company invested with self-raised money in the investment projects of raised funds in view of the actual project
investment progress before the funds raised from private offerings of stocks were made available, for the purpose of ensuring the
in the smooth implementation of the projects of raising funds from private stock offerings in 2019. It then replaced the
investment self-raised money with the raised funds according to the applicable rules. RSM Certified Public Accountants (Special
projects General Partnership) conducted a special review of the Company's advance investment in the investment projects with
and self-raised money as of 31 July 2019, and issued the Assurance Report on Use of Self-raised Money by iFLYTEK Co.,
replacemen Ltd. in Advance Investment in the Investment Projects with Raised Funds (K.Z.Zi. [2019] No. 7135]. When the raised
t funds were readily available, the Company replaced the self-raised funds previously invested in the projects in
RMB516.1003 million with the raised funds in equal amount.
Extraordin
52
2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
ary Not applicable
replenishm
ent of
working
capital
with idle
raised
funds
Applicable
Amount of An investment of RMB901.98 million was committed to the Intelligent Speech AI-powered Open Platform Project, but
the balance the actual investment was RMB597.2538 million, leading to a difference of RMB304.7262 million. An investment of
of raised RMB446.3718 million was committed to the Intelligent Service Robotics Platform and Application Product Project, but
funds after the actual investment was RMB429.4637 million, leading to a difference of RMB16.9081 million. An investment of
project RMB440 million was committed to the Sale and Service System Upgrade Project, but the actual investment was
implement RMB384.133 million, leading to a difference of RMB55.867 million. The difference was mainly owing to the following
ation and facts: First, the market environment changed during implementation of the fund-raising projects. Some expenditure items
why there were thus adjusted on the premise of guaranteeing the project quality; second, the Company acted strictly upon the rules
is a balance on use of raised funds, and used the money prudently on the principles of reasonableness, effectiveness and frugality. This
helped to better control the spending and saved the money.
Applicable
The Company held the 12th Meeting of the Fifth Board of Directors and the Eighth Meeting of the Fifth Board of
Supervisors on 18 April 2021, as well as the Annual General Meeting for 2020 on 10 May 2021, which reviewed and
approved the Proposal on the Closing of Fund-raising Projects and Permanent Replenishment of the Working Capital
with the Surplus. Given the fact that all the projects for raising funds from non-public offering of stocks in 2019 have
Purpose
been closed as planned, it was approved that the Company could spend the surplus raised funds of RMB427.6347 million
and
(including interest income and proceeds from cash management) in permanently replenishing the working capital (the
direction of
actual amount was subject to the balance of the said account of raised funds on the day of transfer into the own capital
the raised
account. It was RMB428.854 million) for the purpose of bringing the fund use efficiency to the fullest. Please see the
funds not
Announcement on the Closing of Fund-raising Projects and Permanent Replenishment of the Working Capital with the
used yet
Surplus dated 20 April 2021 for details. The Company has transferred all the surplus money (including interest income) in
the said accounts of raised funds into its general settlement accounts for permanent replenishment of the working capital.
As of 8 July 2021, the Company has gone through all the procedures of canceling the special accounts of raised funds,
and terminated the relevant Tripartite Escrow Agreement of Raised Funds and the Quadripartite Escrow Agreement of
Raised Funds. Please see the Announcement on the Cancellation of Special Accounts of Funds Raised from Non-public
Offering of Stocks in 2019 dated 8 July 2021 for details.
Problems
in use and
disclosure
Not applicable
of the
raised
funds or
53
2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
other notes
(3) Change in projects using the raised funds
□ Applicable √ Not applicable
No raised fund changed its relevant project during the reporting period.
VIII. Significant Asset and Share Sales
1. Significant asset sales
□ Applicable √ Not applicable
The Company did not sell significant assets during the reporting period.
2. Significant share sales
□ Applicable √ Not applicable
IX. Analysis of Major Controlled or Equity-participating Companies
√ Applicable □ Not applicable
Major subsidiaries and equity-participating companies influencing the Company's net profit by more than 10%
Unit: RMB
Principal Operating Operating
Company name Type Registered Total assets Net assets Net profit
business revenue profit
capital
Education,
iFLYTEK software
Intelligent development, 406,000,000. 8,619,742,40 2,181,191,33 5,254,255,79 220,194,964. 279,072,478.
Subsidiary
System Co., and 00 4.83 5.98 8.35 97 16
Ltd. information
engineering
iFLYTEK
Software 150,000,000. 2,376,188,61 1,508,484,42 687,020,365. 289,815,731. 267,802,186.
South China Subsidiary
development 00 2.31 2.80 15 64 91
Co., Ltd.
Anhui Zhixue
Software 100,000,000. 864,104,279. 598,516,641. 736,536,323. 215,135,053. 193,443,695.
Technology Subsidiary
development 00 73 03 86 65 86
Co., Ltd.
Acquisition and disposal of subsidiaries during the reporting period
√ Applicable □ Not applicable
Method of acquisition and disposal of Influence on overall production and
Company name
subsidiaries during the reporting period operation and performance
54
2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
Anhui iFLYTEK Zhiyue Technology Co.,
Loss of control 5,317,431.48
Ltd.
X. Structured Entities Controlled by the Company
□ Applicable √ Not applicable
XI. Outlook for the Company's Future Development
i. Future development plan
Mission and vision statement
iFLYTEK has the mission of "empowering machine to listen and speak and to understand and think, creating
a better world with artificial intelligence". All the employees are working hard toward the well-defined vision and
clear indicators which are founded on the mission. When breaking the RMB2.5 billion mark in 2015 operating
revenue, the Company made public its "near-, mid-, and long-term vision" on 8 August 2016. Near term: become
a leader in the speech industry and a pioneer in the AI industry, and increase operating revenue to RMB10 billion
and market capitalization to RMB100 billion; mid-term: to become a leader in China's AI industry and a builder of
the industry's ecosystem, connecting one billion users and realizing RMB100 billion in operating revenue;
long-term: become a leader in the global AI industry and a great enterprise that creates a better world with AI.
The near-term vision of "becoming a leader in the speech industry and a pioneer in the AI industry, and
increasing operating revenue to RMB10 billion and market capitalization to RMB100 billion" has successfully
come true in 2019; on this basis, in 2021, the first year of the 14th Five-Year Plan period, the Company made clear
the goal of "AI 2.0", striving to "become a leader in China's AI industry, connecting one billion users and realizing
RMB100 billion in operating revenue and RMB1 trillion in ecosystem" during the 14th Five-Year Plan period.
The Company is currently progressing toward this goal smoothly. At the beginning of 2022, the Company
officially released the "iFLYTEK Super Brain 2030 Program", as a move to the long-term vision of "becoming a
leader in the global AI industry".
The iFLYTEK Super Brain 2030 Program will guide the path for the Company's medium- and long-term
technological advancement and product development, and shape a cognitive intelligence based complex
intelligent system with human-machine collaboration and self-evolution. That is, empower machine to surpass
humans in perception, have a deep understanding of knowledge in a specific field, and continuously evolve on an
independent basis; empower machine to perceive people and the environment in all aspects, learn all kinds of
knowledge, have general knowledge and emotion, move flexibly, and express in multiple dimensions, thus
creating a complex intelligent system with sustainable and independent evolution, and introducing companion
robots into households to benefit people's lives.
Timetable for and milestones of the Company's long-term vision
The Company makes an objective and clear vision, with a specified timetable and regularly updated
milestones. Three milestones have been set for the iFLYTEK Super Brain 2030 Program: in the first stage
(2022-2023), the Company will launch robots that integrate software and hardware, such as interactive companion
pets and bionic robot dogs with motion, as well as the family of professional virtual humans to serve as teachers
and doctors, etc.; in the second stage (2023-2025), the Company will launch walking exoskeleton robots and the
family of companion virtual humans. The elderly can walk and exercise normally with the exoskeleton robot. In
the meanwhile, the Company will launch a depression screening platform for teenagers; in the third stage
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2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
(2025-2030), the Company will roll out companion robots that have knowledge and know how to study and the
family of independent-learning virtual humans for families.
Path for realizing the Company's vision
Thanks to development in the past 20-plus years, iFLYTEK has extended its technological footprint from
speech to a majority of AI research fields. As an industry leader in voice, image, natural language understanding,
machines' cognitive and reasoning ability, and multi-lingual, multi-modal HMI, the Company is working on deep
integration of key technologies across the innovation chains and introduction of a full set of chains for unhindered
product launch and application to figure out major social issues and rigid social demands in a more systematic
way.
"Base area business" and "systematic innovation" are the core logic behind the Company's endeavors toward
its mid-term vision of "realizing RMB100 billion in operating revenue". In terms of "base area business", the
Company will address rigid demands in social areas and areas relating to people's livelihoods with AI through
linkage of three tiers (G, B and C ends), and generate sustainable revenue in disregard of the economic cycle.
Along the path for realizing the vision, the Company will solve major social issues through "systematic
innovation": to put key and core technological achievements into application by filling up the technological gap;
deeply integrate key technologies on the innovation chains to stimulate innovation ability; systematically analyze
and turn major social issues into scientific issues.
"Base area business" and "systematic innovation", the two core engines to support the rapid growth of
iFLYTEK's business results, will inform its operations management and strategic moves in the next five years.
Systematic innovation has forged an increasingly solid core competitiveness and brand-new competition barriers
at iFLYTEK, guiding the Company onto a fresh stage that leads to the future and ushering it into a new chapter of
development.
ii. Operations management plan for 2022
In 2022, the Company will still follow the indomitable development strategy:
For one, the Company will retain its leadership in core technology, ensure the actual business application
with core technology that is top tier around the world, and continue to forge technological barriers and leading
advantages; for two, the Company will actively promote large-scale application of AI related technologies, and
work for deep integration of AI technology with many industries and multiple areas, so that the industrial
ecosystem can sustain and prosper.
Stick to the industrial development strategy of “platforms + tracks”:
Based on the AI Open Platform of iFLYTEK, an ecosystem of the AI industry has taken initial shape at the
Company, and the open platform ecosystem service system has become an important element of the Company's
strategy. The open platform will continue to empower developers, build a closed-loop ecosystem with continuous
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2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
iterations, realize inner and extended growth in a sustainable manner through technological empowerment, and
join partners in achieving win-win business outcomes and creating a healthy, prosperous open ecosystem.
In terms of track, the Company's base area business has formed the standard of "benign dependence on users,
long-term business capability, sustainable growth potential and value of setting an example in the industry", and it
will enter the harvest period, and forge sustainable development and long-term profit-making capabilities. In face
of the opportunity endowed by the AI era, the Company will maintain the development momentum, continuously
integrate resources to improve the strategic execution efficiency of key business directions, and orderly promote
the large-scale application of AI in various industries. In key fields such as consumers, education, and health, the
Company will, underpinned by the three-in-one combination of core AI technology, application data and field,
continue to sharpen its edges in tackling rigid demands and forging intergenerational differences, build a base area
for business with high growth potential, work to address rigid social demands with innovative advantages, and
make AI a source of bringing benefits to the society and fueling the continuous growth of its business results.
To meet the urgent demand of high-growth business clusters in the AI industry for space, iFLYTEK has
kicked off the construction of an AI R&D and production base for higher-quality, larger-scale development.
Technology research and business development plans
Consistent with the development plan, the Company has devised the business plans in technical research and
business development in 2022 as follows:
Core technology research plan: pursue innovation in core technology at the source, continuously increase
inputs in core technology in the fields of intelligent speech, machine translation, natural language understanding,
image recognition, image understanding, knowledge map, knowledge discovery, and machine reasoning, etc., and
continuously lead the core AI technology by deepening research and expanding technical boundaries; continue to
make breakthrough in key technologies, including unsupervised learning and interpretable learning, and actively
prepare for working in such forward-looking research directions as virtual humans, robots integrating software
and hardware, and brain science; scientifically analyze major social issues such as education and health,
continuously strengthen the technological moat, and build differentiated advantages; strive to be a leader not only
in technology but also in product, allow "core technology to support core product and core product to support
solutions", and sustain the rapid development of products in education, health, consumers, cities, and automobiles,
guaranteeing the realization of the goal of "creating a better world with artificial intelligence" with powerful core
technology.
Business development plan
Education business: further cement the platform capabilities and work for the integration of products and
results; make wider presence in high-quality areas and schools, and continuously improve the efficiency of and IT
application in education and teaching through the solution of "teaching according to students' abilities"; based on
the product value of individualized learning, further promote the business model of in-depth operation around
teachers and student users, and increase the business revenue.
Consumer business: actively accommodate to the interactive demand in the field of intelligent hardware, rely
on the international leading core AI technology of iFLYTEK to continuously refresh the interactive experience in
hardware scenarios, accelerate the industrial layout among individual consumers, entrepreneurs and all types of
users, keep on conducting optimizations and iterations, improve user experience, further strengthen channels,
increase traffic of private domains in marketing, reach more and increase end users in scale.
Healthcare business: maintain the leading edge in assisting diagnosis and treatment at the community level,
continuously promote the in-depth application of AI technology in health, duplicate and promote AI-aided
diagnosis and treatment in the rest of the country for higher work efficiency and service ability of medical staff,
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2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
and accelerate the layout and large-scale application of iFLYTEK Smart Medical Assistant in community-based
medical institutions; explore new business models, including AI-powered chronic disease management, and
medical insurance cost control.
Smart city business: utilize core AI technology at the source to continuously improve the "urban super brain"
centered novel and integrated solution for smart cities, and actively participate in the program design and
construction of smart cities based on technological accumulation and large-scale applications in the past, to meet
the demand of "digital economy". Closely follow the application requirements of political and legal authorities,
and actively expand the in-depth application of intelligent speech and AI technology in the fields of justice and
public security.
iFLYTEK will further enhance its international leading edge in core technology, strengthen and consolidate
product and market advantages, and guide the AI industry onto a faster growth track. Through "base area
business" and "systematic innovation", the Company will empower the development of education, health and
other fields which is required by major national strategies with AI, and work to serve people's lives with the
application of innovative technological products and create a better world with AI.
iii. Risk Exposures of the Company and Responses
The Company insists on returning to value creation and standardized operation, carefully identifies various
risks, and actively takes actions to shun and mitigate risks.
1. Macro-economic risks
At present, the international landscape is quite complicated, geopolitical conflicts such as the Russia-Ukraine
War continue to interweave with other risks, and the uncertainty of the macro-economic environment further
increases. The Company will strengthen technological innovation at the source in a down-to-earth manner,
constantly promote the business and product applications that address rigid demands and feature intergenerational
differences, and actively sharpen the ability to develop not affected by the economic cycle. In a
macro-environment of aging population and declining birth rate, the transition from demographic dividend to
talent dividend and then to AI application dividend will define the trend of industrial development. The Company
will continue to address the rigid social needs with innovative strength, and make AI a source of bringing benefits
to the society and fueling the continuous growth of its business results.
2. COVID-19 risks
The COVID-19 pandemic is still lingering globally, with flare-ups at home and abroad. If lost control, the
virus may have a great impact on the Company's marketing and on-site delivery. The Company will contain the
virus with unremitting efforts, make endeavors to protect the health of employees, keep a close watch on the
pandemic development, carefully assess its impact on operations, and fight actively against the disease to
minimize its negative impact. iFLYTEK will contribute its share to the pandemic response, utilizing its
international leading core AI technology. The pandemic also highlights the rigid demand of deep integration of AI
plus Internet with education and health, and provides the Company with the opportunity of strengthening its
understanding of customers in education, health and smart city, among others, which will build a sound
application foundation, justification and demonstration for the long-term development of the Company's related
business.
3. Business innovation risks
To seize the opportunity in the AI industry and cater to the need for rapid advances of technology in the
industry, companies are increasing R&D inputs for the development of new technologies and new products.
However, there are many uncertainties over the industrial and market-oriented application of technology. If the
R&D inputs cannot get the expected results, that may threaten the profitability and growth of the Company. Faced
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2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
with the above risks, the Company will pursue the two growth engines of "systematic innovation + base area
business". Specifically, it will leverage the solid R&D power in core AI technology, carry forward with business
innovation and mitigate exploration risks based on the base area business of "benign dependence on users,
long-term business capability, sustainable growth potential and value of setting an example in the industry".
XII. Researches, Communications and Interviews Received during the Reporting Period
√ Applicable □ Not applicable
Main
Index to basic
content of
Type of information
Date Location Reception Visitors talks and
visitors on the
materials
researches
provided
Bian Guangjie of Gfund, Zhu Xiang of Orient Fund, Ping
Shuyu of Zheshang Fund, Yang Haida of Great Wall Wealth
IAMC, Deng Zuming of Purekind Fund, Wang Hao of Yinhua
Fund, Li Yaxin of Sinosafe Assets, Zheng Xiangchun of
ZYYL AMC, Jin Feng of Bohai Fund, Guo Ruijian of Dunhe
Foundation, Geng Jinwen of Xinhua Assets, Du Hao of
Jinying Fund, Chen Chaoyang of Xinhua Assets, Yang
Intelligent
Benhong of Industrial Securities, Wu Mingyuan of Industrial
hardware (http://rs.p5w.
Securities, Bai Jiayi of Southwest R&D, Jiang Yaokun of
sales, net/c/002230)
Dongwu Fund, Wang Xiaoqiang of Founder Fund, Sun
planning on 20210228
Guanqiu of Fengpei fUND, Qian Dongbiao of Fuanda Fund,
health Please see the
Tian Yu of Guanshi AMC, Lu Yuheng of Hanye Investment,
products, IR
Lu Xujuan of Hengsheng Fund, Fan Weijun of HuaAn Fund,
competitive Management
Chu Tian of China Future Capital, Xu Ben of HSBC Group
26 barriers of Files of
Beijing Management, Du Hao of Jinying Fund, Wise Lui of
Febru Field Institutio the iFLYTEK
Headquart Kingtower AMC, Lv Weizhi of Kingtower AMC, Wu Xin, Li
ary research n Company, dated 28
ers of Jian and Huang Qun of Jun Tang AMC, Yang Yushan of
2021 and regional February
iFLYTEK Smile Stone, Liang Guozhu of ABC-CA Fund Management,
promotion 2021 on the
Hao Xudong of Lord Abbett China AMC, Hu Zhiwei of Lord
of the IR
Abbett China AMC, Xiong Yu of Qianhai Alliance Asset
initiative of Interactions
Management, He Tianxiang of Rong Tong Fund, Tang Qian
teaching Platform
of Ruiyuan Fund, Tao Junfeng of Southwest R&D, Zhao Feng
according to (http://rs.p5w.
of Taiping AMC, Tan Linglan of Southwest R&D, Tian Wen
students' net/c/002230)
of Southwest R&D, Xu Yidan of Southwest R&D, Xu Zhe of
abilities for details.
Southwest R&D, Yang Zhenyu of Southwest R&D, Zhu Bin
of Southwest R&D, Lei Yacong of Southwest Securities,
Wang Xiangjie of Southwest Securities, Zeng Guofu of First
State Cinda Fund, Lu Shijie of Industrial Global Fund, Du
Caiming of E Fund, Jiang Yifei of Yiqinginghui AMC, Shen
Yufei of Galaxy Asset, Zhang Bing of Yingfeng Capital, Pu
Renjie of Orvibo, Wang Jiaqi of BOC Investment
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2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
Management, Ouyang Lijun of BOC Investment
Management, Xu Yidan of Southwest Securities, Ma Zhihao
of Stoneylake Asset, Zhao Wanjia of Shennong Capital, Chen
Yu of Shennong Capital, Zhang Lei of Tianhong Asset
Management, Chen Jianbo of CQ Capital, Sun Yujiao of Life
Insurance, Zhong Xin of Ren Bridge Fund, Chen Meng of
Western Leadbank FMC, Zhu Dengke of Shanghai Dingtian
Investment, Gary Ng of Samsung Asset Management, Wu
Zhiwen of KGI SITE, Xie Tianling of Capital Fund, Wu
Binghuan of Fubon Securities, Chen Minghui of Shenzhen
ORVIBO Investment Management Co., Ltd., Zhai Shiming of
Shenzhen ORVIBO Investment Management Co., Ltd.,
Huang Xin of PICC AMC, Qi Chenfu of PICC AMC, Sun
Qiubo of PICC AMC, Huang Haipei of PICC AMC, and
Wang Gaowei of PICC AMC
Gao Xiaoxiao of Broad Fund, Jing Shuguang of China
Securities, Xu Bo of China Securities, Feng Da of CICC, Tian
Peng of CICC, Luo Yichao of CITIC AMC, Gao Zhenxiao of
Industrial Securities, Jiang Yanglei of Topsperity Securities,
Wang Zuozhou of Topsperity Securities, Yang Yanyu of
Guokai Securities, Wang Yifei of Guokai Securities, Zheng (http://rs.p5w.
Rentao of Founder Fubon Fund, Li Jia of Hao Ze Zhi Yuan net/c/002230)
(Beijing) Investment Management Co., Ltd., Yu Chenglong of Rotating 20210304
Haitong Securities, Zhao Zian of Shanghai Yueqiu Investment president, Please see the
Beijing
Co., Ltd., Zhang Jiawei of Shanghai Yace Investment barriers to IR
Headquart
Management Co., Ltd., Fang Yunlong of Beijing Hongdao smart Management
ers of
04 Investment Management Co., Ltd., Yuan Chao of China education, Files of
iFLYTEK, Field Institutio
March United Insurance Group, Zhang Zhang of Hua Chuang planning on iFLYTEK
and Hefei research n
2021 Securities, Zhao Xuyang of Yongrui Wealth, Wang Jiawei of health dated 04
Headquart
Yihui Investment, Yu Jingwen of Botong Investment, Wang products, March 2021
ers of
Qiyu of GF AMC, Cui Wei of China Life AMC, Li Lei of and on the IR
iFLYTEK
ICBC Credit Suisse AMC, Wu Tong of Shanxi Securities, intelligent Interactions
Zhao Gaoshang of Fundamental & Beyond AMC, Xie Weiyu hardware Platform
of BOCOM International Trust, Feng Pin of GF Fund, Zhang (http://rs.p5w.
Mingyu of Dongfanghong AMC, Guo Leying of Guangdong net/c/002230)
Cherami Sunon Securities Investment Management Co., Ltd., for details.
Li Aoyuan of GF Securities, Wang Xiaole of GF Securities,
Wang Shuwei of Huamei International Investment Group,
Zhou Jiansheng of Nuode Fund, Yan Li of Yixinan AMC, and
Ding Zhiguo of Xiangbai Fund
Exhibition
20 Shenzhen Institutio
Field 579 investors attended on the spot (170 investors) or via hall on the
April Stock n& (http://rs.p5w.
research IFLYREC (409 investors). cloud to
2021 Exchange Individu net/c/002230)
virtually
60
2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
al visit the AI 20210422
Exploration Please see the
Hall of Performance
iFLYTEK Briefings and
and hear the Road Show
presentation Information
on the of iFLYTEK
Company's dated 22 April
business 2021 on the
results in IR
2020; Interactions
influence of Platform
education (http://rs.p5w.
policies; the net/c/002230)
vision for for details.
increasing
operating
revenue to
RMB100
billion;
vehicle-mou
nted
business;
planning on
business in
the Greater
Bay area;
business
results;
Learning
Pad and
smart
notebook;
internal
organization
al
framework;
and
consumer
side of
education
25 Beijing Institutio The results briefing was open to all the investors and friends The Report
Field
Augus Headquart n& who cared about the development of iFLYTEK and the AI on Business (http://rs.p5w.
research
t 2021 ers of Individu industry. It was held virtually via iFLYREC and broadcast via Performanc net/c/002230)
61
2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
iFLYTEK, al live video streaming on p5w.net and egsea.com. By e in 20210826
and Hefei incomplete statistics, the results briefing attracted more than 1H2021; the Please see the
Headquart 413,500 participants. Where, 318 investors attended via faster Performance
ers of iFLYREC (the number of those investors who attended using growth of Briefings and
iFLYTEK their nicknames was not counted); the number of investors operating Road Show
who attended the live streaming session was 82,182 on revenue Information
p5w.net and over 331,000 on egsea.com. from of iFLYTEK
education dated 26
business; the August 2021
influence of on the IR
the Interactions
education Platform
policy (http://rs.p5w.
"double net/c/002230)
reduction" for details.
on the
Company's
business; the
changes in
gross profit
margin in
1H; the
planning on
development
of health
business; the
development
of
platform-bas
ed business
model
The Report
on Business (http://rs.p5w.
Performanc net/c/002230)
Beijing The results briefing was open to all the investors and friends
e in 20211028
Headquart who cared about the development of iFLYTEK and the AI
3Q2021; the Please see the
ers of Institutio industry. It was held virtually via iFLYREC and broadcast via
28 influence of Performance
iFLYTEK, Field n& live video streaming on p5w.net. By incomplete statistics, the
Octob the Briefings and
and Hefei research Individu results briefing attracted more than 110,000 participants.
er education Road Show
Headquart al Where, the number of investors who attended the live
2021 policy Information
ers of streaming session was 110,593 on p5w.net; 112 investors
"double of iFLYTEK
iFLYTEK attended via iFLYREC.
reduction" dated 28
on the October 2021
Company's on the IR
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2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
business; Interactions
interpretatio Platform
ns of gross (http://rs.p5w.
profit net/c/002230)
margin for details.
figure;
intelligent
hardware of
consumer
business; the
strategic
planning on
Harmony
ecosystem
and Open
Platform
2.0; and the
planning on
development
of health
business
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2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
Section IV Corporate Governance
I. Basic Overview
Complying fully to regulated development, iFLYTEK has always strictly abided by the laws, administrative
rules and regulations and regulatory documents in its operations, including the Company Law of the People’s
Republic of China, Securities Law of the People’s Republic of China, China Securities Regulatory Commission’s
(CSRC) related regulations, Rules Governing the Listing of Shares on Shenzhen Stock Exchange and Guidelines of
Shenzhen Stock Exchange for Self-discipline Regulation of Listed Companies No. 1: Regulated Operations of
Companies Listed on the Main Board. Furthermore, the Company has been continuously optimizing its
governance while striving to build a modern business system and actively empowering its governance with AI.
The Company continues to perfect its governance and all the rules and regulations for internal control. It is
strengthening its information disclosure and actively managing its investor relations while maintaining its
regulated operations.
(i) Due diligence and compliance to enhance the listed company’s quality
The Company’s governing body remained diligent in enforcing compliance, while its shareholders’ general
meeting, Board of Directors, Board of Supervisors and senior management were running normally in 2021.
According to statistical data from Easy Board, a Chinese AI-powered compliance-service platform, the number of
times that iFLYTEK held shareholders’, Board of Directors’ and Board of Supervisors’ meetings in 2021 was
higher than the industrial and market means. The corporate governance information during the reporting period
was updated below:
1. The shareholders and shareholders’ general meetings: The Company has formulated and fully implements
the Rules of Procedure for the Shareholders’ General Meetings. During the reporting period, the Company held
four shareholders’ general meetings, whose calling, convening, voting, drafting of resolutions and disclosure all
complied with the laws and regulations and the rules stipulated in regulatory documents. The shareholders’
general meetings adopted both on-site and online voting to fully safeguard shareholders’ legal rights, particularly
those of non-significant shareholders. Solicitors also witnessed the meetings and compiled Legal Opinions. They
also confirmed that the meetings’ calling, convening, attendants, conveners and voting procedure and results all
satisfied the Company Law, Rules of Shareholders’ General Meetings and Articles of Association, making the
resolutions legal and effective.
2. The Board of Directors and its members: The Company has formulated and fully implements the Rules of
Procedure for the Board of Directors, Implementation Rules of the Special Committees of the Board of Directors
and Detailed Work Rules of Independent Directors. during the reporting period, the Company held 13 Board of
Directors’ meetings, which decided on major issues, while the independent directors all expressed independent
opinions on major decisions and issues of the Company. In line with the laws and regulations, regulatory
documents and company rules concerned, the Board of Directors has been working diligently and playing an
active role. It has guided the ongoing and healthy development of the Company with rational decisions and is
committed to repaying the investors with growth and results. The Company especially respects and gives play to
the roles of the independent directors and the special committee of the Board of Directors, which diversify the
knowledge structure of the board and in turn ensure rational decision-making. During the reporting period, the
Special Committees of the Board of Directors held 13 meetings and gave fully play to the professionalism and
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2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
effectiveness of the board’s operations. In 2021, iFLYTEK’s Board of Directors was named “Best Board of
Directors” by the Securities Times, a national financial newspaper in China, and won the “Golden Round-Table
Award” from Directors & Boards, a Chinese magazine. Moreover, iFLYTEK’s Board of Directors Office was
nominated as the “Best Example of Board of Directors Office of Listed Companies” by the China Association for
Public Companies (CAPCO), making it the only non-“zhongzitou” company among the top ten nominees. The
office has also been selected as an outstanding model example – one of the only two in China.
3. The Board of Supervisors and its members: The Company has formulated and fully implements the Rules
of Procedure for the Board of Supervisors. During the reporting period, the Company held nine Board of
Supervisors’ meetings, which fully monitored, reviewed and supervised the Company’s operations and actively
participated in the making of business decisions. Special financial management and internal checks were launched.
Meanwhile, with its multi-approach and dimensional monitoring and a sound discussion mechanism, the board
was able to fully monitor, review and check the Company’s business management, finances, internal control and
related-party transactions. It assumed fully the responsibility to safeguard the rights of the shareholders while
promoting the Company’s ongoing and healthy development. The monitoring approaches and aspects primarily
included: 1) off-site checks of the Company’s operations in conformity with legal provisions; 2) on-site checks of
the Company’s finances and regular report reviews; 3) internal-control checks; 4) special checks on related-party
transactions; 5) special checks on the use of the raised funds; 6) special investigation of major issues and
strategies of the Company; 7) the setting up of special appointments with the Company’s Chairman of the Board,
president and other senior managers at the regular reporting meetings to communicate face-to-face and understand
the key concerns of the Company; and 8) checking the recipients of the Company’s stock ownership incentive
plan. The Board of Supervisors actively exercised its supervisory functions and powers within the scope of power
entrusted by the Corporate Law, Articles of Association and the shareholders’ general meetings. All the
supervisors were present at every shareholders’ meeting as non-voting attendees and monitored the voting. They
also observed the meetings held by the Board of Directors to safeguard the legal rights of the Company and its
shareholders and creditors.
4. The president and management: The Company has formulated and fully implements the Detailed Work
Rules of the President. During the reporting period, the Company held 25 president’s working meetings, while the
management diligently fulfilled all its duties entrusted by the Board of Directors. A corporate-governance
structure, comprising shareholders’ general meetings, the Board of Directors, Board of Supervisors and
management, which is discrete and mutually constraining was thus formed. This ensures the Company’s regulated
operations as each component attends to its own duties and assumes its own responsibility within the scope of its
respective authority. Before the convening of each biannual or annual Board of Directors meeting, iFLYTEK has
always insisted that the management formally responds and discusses the handling of issues that the Board of
Directors had raised in the previous biannual or annual meeting, so as to ensure the effective execution of the
board’s decisions.
5. Significant shareholder and actual controllers: The Company’s business, personnel, assets, organization and
finances are independent of the actual controllers that have always given top priority to fostering the awareness of
regulated operations and development. They strictly observe the laws, administrative rules and regulations and
regulatory documents concerning actual controllers, including the CSRC’s related regulations, Rules Governing
the Listing of Shares on Shenzhen Stock Exchange and Guidelines of Shenzhen Stock Exchange for Self-discipline
Regulation of Listed Companies No. 1: Regulated Operations of Companies Listed on the Main Board.
Furthermore, they fully guarantee that there is no horizontal competition, misappropriation of the Company’s
funds or jeopardizing the Company’s interests, especially those of small and minority shareholders.
6. Information disclosure and transparency: The Company has always attached great importance to
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2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
information disclosure and continues to improve its information transparency. It protects the interests of its
investors by ensuring that the disclosed information is authentic, timely, accurate, complete, fair, legal and
regulated. The Company demonstrates its driving force through full, timely and effective information disclosure,
which also strongly supports the management of its investor relations and the safeguarding of investors’ rights.
The Company discloses information in strict compliance with the laws, administrative rules and regulations and
regulatory documents, including the Rules Governing the Listing of Shares on Shenzhen Stock Exchange and
Guidelines of Shenzhen Stock Exchange for Self-discipline Regulation of Listed Companies No. 1: Regulated
Operations of Companies Listed on the Main Board, as well as the Company’s Management System for
Information Disclosure. The Company disclosed and published a total of 197 documents in 2021, amounting to
1.8466 million words. The Company has always maintained accurate and prompt information communication
with the capital market. By providing an open channel for the management of investor relations and the
safeguarding of investors’ rights, the Company hopes to truly help investors with value-investing ideals. 2021
marked the 13th year since iFLYTEK became listed and the 13th consecutive year as the Company’s information
disclosure continued to be evaluated as outstanding by the Shenzhen Stock Exchange. The Shenzhen Stock
Exchange pointed out especially in its 2020 Evaluation List of Information Disclosure by Companies Listed on the
Shenzhen Stock Exchange that “companies including iFLYTEK have been receiving an A in their evaluation for
over ten consecutive years and serve as exemplary models”. According to statistics, among all the companies
listed on the main board of the Shenzhen Stock Exchange, including those previously listed on the small and
medium enterprise board, only nine companies have received an outstanding evaluation for 13 consecutive years,
that is, only 0.60%.
7. The management of investor relations and the protection of investors’ rights: The Company has always
strictly followed the rules stipulated in the Management Rules of Investor Relations. It continues to strengthen its
information communication with investors and hold investor events, so as to help investors learn more about and
understand the Company and invest rationally. The Company also helps investors learn fully about its operations
and development through receiving visits from individual and institutional investors, press interviews with its
management and participation in strategy meetings. Since becoming listed 13 years ago, the Company has always
distributed dividends every year, allowing investors to share the Company’s growth and development and offering
its shareholders long-term returns with solid business achievements. The Company’s operating revenue grew by
70-fold between its listing in 2008 and 2021, while the net profit attributable to equity shareholders rose by
21-fold. The Company is also the only A-share listed company to achieve a consecutive annual revenue growth
that exceeded 25% for the last decade. In 2021, iFLYTEK worked diligently to set the example of annual
performance briefings and was named the “Best Example of Performance Briefings by Listed Companies in 2020”
by CAPCO. The Company’s investor-relations efforts were also honored with awards such as “Best Investor
Relations” by the Securities Times, “Outstanding IR Business” of the gold prize for investor relations by
www.p5w.net, “Outstanding IR Team” and “Outstanding IR Company” by www.chnfund.com.
8. Performance evaluation and incentive and restraint mechanism: Upholding the core value of “helping
employees to achieve ideals and creating value for society”, the Company remains focused on its long-term
development and individual internal needs, even as it designed its performance evaluation and incentive and
restraint mechanism. The appointment of the Company’s senior management members has always been open and
transparent and the emoluments are verified by the emolument board and approved by the Board of Directors and
shareholders’ general meetings. Moreover, based on its business operations, the Company has built a sound
performance-evaluation system and an incentive and restraint mechanism that ensure its healthy development.
Focusing on business development and personal growth, the Company continues to improve structural division,
talent training and the training system. The Company has launched diverse talent-fostering programmes that
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2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
combine employee growth with business development, so both the Company and its employees may succeed
together.
(ii) AI-empowered corporate governance innovation
Building upon its internationally leading core AI technology, iFLYTEK actively applies AI to corporate
governance.
In conjunction with the requirements of corporate governance and standardized internal control,
iFLYTEK has systematized and normalized its governance and risk control and management with the help of
AI and big data. In terms of actual execution, when making major internal business decisions, the Company
uses iFLYREC to help the shareholders’ general meeting, the Board of Directors, the Board of Supervisors
and the senior management make big decisions, including the decision making on major issues, the
appointment and dismissal of key executives, the decision making on important investments and the use of
large funds. The meetings are fully recorded, allowing tracking and management and avoiding regulatory
risks. iFLYREC remotely connects the Board of Directors, Board of Supervisors and investors “face to face”,
allowing them to share and view PowerPoint presentations and conference materials and voice their opinions. This
overcomes the spatial limitations of conference participation and communication and enhances the efficiency of
corporate governance. The Company pools together information and data from different internal systems and is
able to automate most of the internal-control processes with the help of risk models and algorithm, making them
more targeted, efficient and smarter. For example, iFLYTEK’s reimbursement robot can conduct independent
internal checks with the help of AI and eliminate fake and illegal invoices. The advantage of fully quantitative
reviews both respect employees’ self-discipline and systematically avoids potential risks. The digital auditing fully
covers the self-service reimbursement and automatically identifies problems, making it a relatively
well-developed personal reimbursement system.
(iii) The deeply engrained standardized corporate governance is widely recognized
iFLYTEK is committed to being a listed company that operates in strict accordance with the regulations, and
its corporate governance and regulated operations have received the unanimous approval of regulatory authorities,
CAPCO and all sectors of society.
Since its listing in 2008, iFLYTEK has always received an evaluation score of A for information disclosure
each year.
iFLYTEK’s Board of Directors and Board of Supervisors have been nominated as the “Best Example of
Board of Directors Office of Listed Companies” and the “Best Example of Board of Supervisors of Listed
Companies” by CAPCO. They are also both the only ones among those from the top ten listed private companies
to be selected as outstanding model examples.
iFLYTEK has been named the “Most Respected Listed Company by Investors” in a “Most Respected Listed
Company by Investors” nomination event organized by CAPCO, the Shenzhen Stock Exchange and the Shanghai
Stock Exchange.
In 2021, the Company was presented with honors such as “the best listed company” by New Fortune, a
Chinese magazine; the “Golden Bull’s Award for Most Worthy of Investment” by the China Securities Journal;
the “Star Company with Ongoing Investment Value” by Chinese Securities Journal; “TOP Growth Potential of
the Golden Company List” by China’s Snowball Finance; and “China’s Reputable Listed Company” by China’s
National Business Daily.
Does the Company’s actual corporate governance deviate significantly from the laws, administrative rules
and regulations and the CSRC’s rules concerning the governance of listed companies?
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2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
□ Yes √ No
The Company’s actual corporate governance does not deviate significantly from the laws, administrative rules and
regulations and the CSRC’s rules concerning the governance of listed companies.
II. How the Company Ensures its Assets, Personnel, Finances, Organization and Business are
Independent of its Controlling Shareholders and Actual Controllers
The Company owns fully its independent business and possesses the capacity to operate independently. It
ensures its assets, personnel, finances, organization and business are independent of the actual controllers.
1. Asset independence
The actual controllers of the Company are Mr. Liu Qingfeng and his actors in concert, USTC Holdings Co.,
Ltd. Their assets are strictly separated from those of iFLYTEK and there has been no misappropriation of
Company assets. There has also been no misappropriation of Company assets by the Company’s other significant
shareholders. The Company also does not provide guarantees for individuals, its shareholders or any other
business they control with its assets, rights or credibility; there is no exploitation by its shareholders or their
affiliated parties. The Company holds complete and full proof of title to its assets, including its property, land-use
rights, main production and operational equipment, trademarks and software copyright, and no legal disputes or
potential disputes exist.
2. Personnel independence
The Company’s directors, supervisors and senior management members are elected in strict accordance with the
Company Law, Articles of Association and the rules of procedure for shareholders’ general meetings and the
Board of Directors. No senior management members of the Company have assumed non-directorial or
supervisory roles in other businesses belonging to or controlled by the Company’s actual controllers. All the
senior management members receive their emoluments from the Company and not from the actual controllers
and/or other businesses they control. The Company has an independent and comprehensive human-resources
management system and has devised independent and related systems, including the Rules for the Management of
Recruitment Contracts, Rules for the Management of Human-Resources Files, Rules for Training Management,
Rules for the Management of Salary Payment, Measures for the Management of Employee Performance, Rules for
the Management of Attendance Records, Rules for the Management of Benefits and Rules for the Management of
Recruitment and Transfers. The Company signs independent labour contracts with employees and manages its
employees in a systematic and standardized manner. The Company fully and independently manages its human
resources, salaries and emoluments and social benefits.
3. Financial independence
The Company has an independent financial-accounting department with independent financial accountants.
Furthermore, the Company has set up independent accounting and financial-management systems and performs
independent financial decisions. The Company has independently opened up a bank account and independently
pays taxes.
4. Organizational independence
The Company has a sound and independent corporate-governance structure and has developed sound rules of
procedure for shareholders’ general meetings, the Board of Directors, Board of Supervisors, Special Committees
of the Board of Directors, secretary to the Board of Directors and the management. Moreover, the Company has
formulated the Regulations on the Management of Controlled Subsidiaries, so that the bodies and personnel
concerned may perform their duties according to the law. The Company has built comprehensive and efficient
business, technical and functional departments. The setting up of the Company’s departments are independent of
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2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
its shareholders and any other units or individuals.
5. Business independence
The Company is independently engaged in the development and sales of software and possesses
comprehensives systems for business, development and design, project control, procurement, finances and quality
control. The Company is capable of independently launching its business on the market. No horizontal
competition exists between the Company and its actual controllers and/or significant shareholders. Where
transactions with the Company’s actual controllers, significant shareholders and related parties do take place, the
Company strictly follows the review and information-disclosure procedures in accordance with the regulatory
rules, and there is no jeopardizing the interests of the Company, especially those of non-significant shareholders.
III. Horizontal Competition
□ Applicable √ Not applicable
IV. Annual General Meeting and Extraordinary Shareholders’ General Meetings Convened
during the Reporting Period
1. Shareholders’ meetings during the reporting period
Investor Meeting Disclosure
Session Type Resolution
participation date date
Announcement No.: 2021-015
st
1 extraordinary Announcement: “Resolution Announcement of the 1st
Extraordinary 36.80%
shareholders’ 03 February 03 February Extraordinary Shareholders’ General Meeting in 2021”
shareholders’
general meeting 2021 2021 Disclosed on Securities Times, China Securities Journal,
meeting
in 2021 Shanghai Securities News, Securities Daily and
www.cninfo.com.cn
Announcement No.: 2021-047
Annual Announcement: Resolution Announcement of 2020
2020 annual 31.63% 10 May 10 May
general Annual General Meeting
general meeting 2021 2021
meeting Disclosed on Securities Times, China Securities Journal,
Shanghai Securities News, Securities Daily and
www.cninfo.com.cn
Announcement No.: 2021-082
2nd
Announcement: Resolution Announcement of the 2nd
Extraordinary
extraordinary 37.22% 13 October 13 October Extraordinary Shareholders’ General Meeting in 2021
shareholders’
shareholders’ 2021 2021 Disclosed on Securities Times, China Securities Journal,
meeting
general meeting Shanghai Securities News, Securities Daily and
in 2021 www.cninfo.com.cn
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2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
Announcement No.: 2021-097
rd
2021 年 11 2021 年 11
3 extraordinary Announcement: Resolution Announcement of the 3rd
Extraordinary 月 26 日 月 26 日
shareholders’ 32.77% Extraordinary Shareholders’ General Meeting in 2021
shareholders’ 26 26
general meeting Disclosed on Securities Times, China Securities Journal,
meeting November November
in 2021 Shanghai Securities News, Securities Daily and
2021 2021
www.cninfo.com.cn
2. Shareholders holding preference shares with restored right to vote requesting the convening of
extraordinary shareholders’ general meetings
□ Applicable √ Not applicable
V. Directors, Supervisors and Senior Management Members
1. Overview
No. of
shares Reason
No. of No. of
no Other for
Term end Initial no. additional shares
Name Position Status Gender Age Term longer change in changes
date of shares shares held held at
start date held in shares in share
held in current term end
current no.
period
period
09
13 April 168,253,
Liu Qingfeng Chairperson Incumbent Male 48 January 97,851,830 70,401,437 Note 1
2009 267
2023
05 09
50 January January
Liu Xin Director Incumbent Male
2013 2023
10 09
53 January January
Wang Bing Director Incumbent Male
2017 2023
09
18,033,7
Wu Xiaoru Director Incumbent 49 10 April January 18,033,790
Male 90
2010 2023
Director,
Vice
04 09
President, 10,022,5
Male 47 February January 10,022,581
Jiang Tao Secretary to Incumbent 81
2016 2023
the Board of
Directors
Director, 49 23 April 09 355,000 200,000 555,000
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2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
Duan Dawei Vice Incumbent Male 2018 January Note 2
President 2023
Director, 03 09
4,750,60
Vice January January 4,750,600
Nie Xiaolin Incumbent Male 0
President 2017 2023
09 09
Zhao Independent 62 January January
Incumbent Male
Xudong director 2020 2023
03 09
Independent
58 February January
Zhao Xijun director Incumbent Male
2021 2023
10 09
Zhao Independent 69 January January
Incumbent Female
Huifang director 2017 2023
09
男 10
Independent 69 January
Liu Jianhua Incumbent Male January
director 2023
2017
Chairperson 05 09
of the Board 59 January January
Gao Lingling Incumbent Female
of 2013 2023
Supervisors
10 09
55 January January 1,500 1,500
Zhang Lan Supervisor Incumbent Female
2017 2023
10 09
Dong 42 January January 157,238 157,238
Supervisor Incumbent Female
Xueyan 2017 2023
09 09
Wang 45 January January
Supervisor Incumbent Male
Hongxing 2020 2023
09
18 July
32 January 10,000 10,000
Lu Xueling Supervisor Incumbent Female 2021
2023
09
13 March
Vice 45 January 605,500 100,000 705,500
Du Lan Incumbent Female 2016 Note 2
president 2023
09 09
42 155,250 70,000 225,250
Wang Ming Financial Incumbent Female January January Note 2
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2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
controller 2020 2023
10
Director, Septemb 13,411,0
43 January 13,411,052
Hu Yu Vice Resigned Male er 2021 52
2014
President
26
Director, 10 April 12,999,0
48 Septemb 12,999,035
Chen Tao Vice Resigned Male 2007 35
er 2021
President
08 03
Zhang Independent 58 January February
Resigned Male
Benzhao director 2015 2021
09
18 July
36 January
Qian Jinping Supervisor Resigned Male 2021
2020
158,353,37 229,124,
-- -- -- -- -- -- 70,401,437 0 370,000 --
Total 6 813
Note 1: This is due to private placement proposed by the Company’s actual controller, Mr. Liu Qingfeng;
Note 2: This is due to the Company’s employee-stock-option plans and the granting of restricted stock to beneficiaries of the
restricted-stock incentive plan in 2021.
Were there dismissals of incumbent directors, supervisors and senior management members during the reporting
period?
√ Yes □ No
Please see changes to the Company’s directors, supervisors and senior management members for details.
Changes to the Company’s directors, supervisors and senior management members
√ Yes □ No
Name Position Condition Date Reason
Had served as the Company’s independent director
Independent End of term of 03 February 2021
Zhang Benzhao for six consecutive years.
director office
Independent Elected as independent director following Mr.
Zhao Xijun Elected
director 03 February 2021 Zhang’s resignation at the end of his term.
To allow Mr. Liu, the Chairman, to focus more on the
Company’s future development strategy, building of
08 February 2021 core mechanisms and strengthening of talent training,
Liu Qingfeng President Dismissed
the Company’s Board of Directors agreed to relieve
him of the duty of the president following his own
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2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
proposal.
To better enforce hierarchical management, the
Company had been experimenting with rotational
presidency since 2014. After the system has matured,
the Company’s Chairman no longer needs to hold a
current position as the president and may focus on
08 February 2021 the future. Hence, the presidency system was
Wu Xiaoru President Appointed
formally introduced after six years and two rounds of
rotational presidency. Following the proposal of the
Company’s Chairman, Mr. Liu, the Board of
Directors agreed to relieve him of the duty of the
president and has engaged Mr. Wu as the president.
Qian has taken up the position of CFO at the
Company’s subsidiary holding company, Anhui
Employee iFLYTEK Healthcare Co., Ltd. To avoid interfering
Qian Jinping
supervisor Resigned 18 July 2021 with his work at the Board of Supervisors, Qian
resigned from his position as representative
employee supervisor.
Employee Elected as employee supervisor following Mr. Qian’s
Lu Xueling
supervisor Elected 18 July 2021 resignation.
Mr. Hu has resigned from his positions as director,
Vice President, member of the special committee of
the Board of Directors in response to the needs to
develop more comprehensive ecology for the AI
industry. Mr. Hu became director of the Company’s
Consumer Strategy Commission in March 2019 and
Hu Yu Director Resigned 26 September 2021 is no longer in charge of consumer business. The
Company’s consumer business has been developing
soundly over the last two years. It has an adequate
talent pool and its business development is on track,
so Mr. Hu’s resignation will not negatively impact
the Company’s business development.
Mr. Chen has resigned from his positions as director,
Vice President, member of the special committee of
the Board of Directors in response to the needs to
develop more comprehensive ecology for the AI
industry. Mr. Chen became director of the Company’s
26 September 2021 Strategy Commission in March 2019 and is no longer
Chen Tao Director Resigned
in charge of smart-city business. The Company’s
smart-city business has been developing soundly
over the last two years. It has an adequate talent pool
and its business development is on track, so Mr.
Chen’s resignation will not negatively impact the
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2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
Company’s business development.
Elected as non-independent director following
Jiang Tao Director Elected 13 October 2021 Messrs. Chen and Hu’s resignation.
Elected as non-independent director following
Duan Dawei Director Elected 13 October 2021
Messrs. Chen and Hu’s resignation.
2. Position overview
The professional backgrounds, main work experiences and current key duties of the Company’s incumbent
directors, supervisors and senior management members.
Members of the Board of Directors
Mr. Liu Qingfeng, Chairman and Founder of iFLYTEK; Doctor of Signal and Information Processing at
USTC,; Director of the National Engineering Laboratory for Speech and Language Information Processing
(NELSLIP); Adjunct Professor and Doctoral Supervisor at the University of Science and Technology of China
(USTC); Deputy to China’s 10th, 11th, 12th and 13th National People’s Congress, Chairperson of the Executive
Council of the Speech Industry Alliance of China and Chairperson of the CAS’s Artificial Intelligence
Industry-University-Research Innovation Alliance. Honoured at the 14th China’s Economic Person of the Year in
2013; nominated as the “Top 100 Outstanding Private Entrepreneurs on the 40th Anniversary of China’s Reform
and Opening-up” in 2018 and awarded the “National Model Worker” title in 2020.
Mr. Liu Xin, Director. Holder of a PhD degree. Also serving as Chairperson at Migu Cultural Technology
Co., Ltd. and Mango Excellent Media Co., Ltd. Previously served as Manager for Industrial Solutions, Head of
Technical Team and Director of Client Technology of Public Business Department at IBM China; and General
Manager of Data Department at China Mobile Communications Group Co., Ltd.
Mr. Wang Bing, Director. Doctor of Physical Electronics at USTC. Also serving as President at USTC
Holdings Co., Ltd.; Director at Basic Education Group of USTC; Director at Time Publishing and Media Co., Ltd.;
Director at QuantumCTEk Co., Ltd.; director at CAS Quantumnet Co., Ltd.; Director at Glory China Quantum
Lidar; Director at Chinainstru & Quantumtech (Hefei) Co., Ltd.; Director at University of Science and
Technology of China Press; and Director at Shandong Glory China Quantum Lidar. Previously served as Vice
General Manager at USTC Holdings Co., Ltd.; Deputy Department Head at Scientific Research Department of
USTC; and Assistant Dean of Institute of Advanced Technology at USTC.
Mr. Wu Xiaoru, Director and President. Senior Engineer and Doctor of Electronic Engineering at USTC.
Also serving as the Executive Director at Wuhan iFLYTEK Xingzhi Technology Co., Ltd.; Director at Beijing
iFLYTEK Lezhixing Software Co., Ltd.; executive director at Hefei iFLYTEK Duxie Technology Co., Ltd.;
Executive Director at Anhui Oriental iFLY Corporation; Executive Director at Guangzhou iFLYTEK Yuchang
Co., Ltd.; Executive Director at Anhui iFLYTEK Jiecheng Software Technology Co., Ltd.; Executive Director at
Anhui iFLYTEK Jiecheng Information Technology Co., Ltd.; Supervisor at iFLYTEK South China Co., Ltd.; and
Executive Director at iFLYTEK Central China (Wuhan) Co., Ltd.
Mr. Jiang Tao, Director, Secretary to the Board of Directors and Vice President. Master of Software
Engineering at USTC. Also serving as Executive Director at Beijing iFLYTEK Information Technology Co., Ltd.;
Executive Director and Manager at Tianjin iFLYTEK Information Technology Co., Ltd.; Executive Director at
Zhongke iFLYTEK Interconnection (Beijing) Information Technology Co., Ltd.; Deputy Secretary-General at the
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2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
Executive Council of the Speech Industry Alliance of China; Executive Director at Beijing iFLYTEK Qiming
Technology Co., Ltd.; Executive Director at Xiong’an iFLYTEK AI Technology Co., Ltd.; Executive Director at
iFLYTEK Hebei Technology Co., Ltd.; Executive Director at Hefei Feier Smart Technology Co., Ltd.; Executive
Director at Tianjin Zhihui Valley Technological Service Co., Ltd.; Director at Shenzhen iPanel Co., Ltd.; Director
at Beijing Chinese-Foreign Translation & Information Service Co., Ltd.; Director at Shanghai iFLYTEK Ruiyuan
Information Technology Co., Ltd.; Executive Director at Beijing iFLYTEK Jizhi Technology Co., Ltd.; Executive
Director at Beijing iFLYTEK Zhiying Technology Co., Ltd.; Executive Director at Beijing iFLYTEK Dalai
Technology Co., Ltd.; Director at Anhui iFLYTEK Healthcare Co., Ltd.; and Independent Director at Sangfor
Technologies. Previously served as Chief Director at Telecommunication and Value-Added Business Department.
Mr. Nie Xiaolin, Director and Vice President. Master of Software Engineering at USTC. Also serving as
Executive Director at Guangdong iFLYTEK Qiming Technological Development Co., Ltd.; Executive Director at
Beijing Liyun Popular Education Technology Co., Ltd.; and Director at Beijing Chinese Education Hailan
Information Technology Co., Ltd. Previously served as General Manager at the Company’s telecommunication
and value-added services department, Chief Operating Officer and Director of the Marketing Commission and
EMT Director of Education Business.
Mr. Duan Dawei, Director, Vice President and CFO. Received an MBA at Missouri State University in 2010;
Master of Economics at Dongbei University of Finance & Economics (DUFE) in 1999; and Bachelor of
Economics at DUFE in 1993. Also serving as Director at Tianjin iFLYTEK Leasing Co., Ltd.; Director at Anhui
iFLYTEK Healthcare Co., Ltd.; and Executive Director and General Manager at Naji Investment Management
(Shanghai) Co., Ltd. Previously held senior managerial positions at Jilin Chemical Group, Jilin Provincial
Electronic Group, SANY Group and SANY Heavy Industry Co., Ltd. Mr. Duan possesses extensive experience in
financial management at major corporations, portfolio investment and international collaboration and has won
“China’s CFO of the Year” in 2008 and “China Best CFO Leadership Award” in 2019. He is also an adjunct
supervisor of Master’s students at Shanghai National Accounting Institute and of the Accounting programme at
DUFE.
Mr Zhao Xudong, Independent Director. Vice Dean, Professor and Supervisor of doctoral candidates at the
Civil, Commercial and Economic Law School of the China University of Political Science and Law; “Cheung
Kong Scholar” of China’s Ministry of Education; president of Commercial Law Research Institute of the China
Law Society; member of the Expert Advisory Committee of the Supreme People’s Procuratorate; and arbitrator at
the China International Economic and Trade Arbitration Commission. Zhao is also a nationally renowned civil
and commercial law scholar and possesses extensive research and practical experience in fields such as company
law and contract law. He has previously served as external director at Beijing TRT Group and independent
director at Founder Securities Co., Ltd. and CITIC Guoan Information Industry Co., Ltd., both are listed
companies.
Mr. Zhao Xijun, Independent Director. Professor and supervisor of doctoral candidates at the School of
Finance of Renmin University of China (RUC) and recipient of the State Council’s Special Allowance. Currently
serving as Joint-dean at the China Capital Market Research Institute of RUC; Joint-dean at the Chinese Academy
of Financial Inclusion; Member and Secretary-General of the National Supervisory Committee for Professional
Degrees in Finance; Deputy Secretary-General and member of the Executive Council of China International
Finance Society; Executive Director and Member of the Academic Committee of China Modern Financial Society;
Member of the Executive Council of China Financial Society; Executive Vice-president at Beijing International
Financial Society. Zhao is primarily engaged in research in macro-economy and -finance, international finance
and capital markets. He has published over 100 theses and papers since becoming a professor and has authored
more than twenty monographs and textbooks. He has also led and taken part in more than twenty
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2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
scientific-research projects.
Ms. Zhao Huifang, Independent Director. Holder of a Bachelor’s degree, professor and master students’
advisor. Also serving as Independent Director at Sinomach General Machinery Science & Technology Co., Ltd.;
Time Publishing and Media Co., Ltd.; and Anhui Transport Consulting & Design Institute Co., Ltd. Previously
served as Vice Dean, Dean and Secretary of Branch Party Committee at the College of Management of Hefei
University of Technology (HFU); director of MBA/MPA Management Centre at HFU; Member of the Ministry of
Education’s Special Educational Supervisory Committee for Business Administration; Honorary President at the
Engineering University and College Branch of the Accounting Society of China (ASC); Member of the Special
Educational Committee for Accounting of the ASC; Member of the Executive Council of Anhui Auditing Society;
and Member of the Executive Council of Anhui Province Federation of Social Sciences. She has compiled
Corporate Accounting, a text book published by Higher Education Press, which has been named as the textbook
for the national 9th, 10th, 11th Five-Year Plans. The book has also won the first prize as Anhui Province’s
outstanding scientific achievement (writings). Zhao has led and taken part in many provincial and national
scientific-research projects and has published articles in renowned journals at home and abroad. She is also the
recipient of many provincial and ministerial awards.
Mr. Liu Jianhua, Independent Director. Holder of a Bachelor’s degree and first-grade lawyer. Previously
served as Director and Deputy Director at Legal Department of the Bureau of Justice in Dangshan County, Anhui
Province; Office Director at Anhui Foreign-Economy Law Firm; Deputy Director at Anhui Third-Economy Law
Firm; Secretary-General and Vice President at Anhui Lawyers Association; and Deputy Secretary of the Party
Committee of Anhui Lawyers Association.
Members of the Board of Supervisors
Ms. Gao Lingling, Chairperson of the Board of Supervisors. MBA at the University of Maryland, U.S. and
senior accountant. Also serving as Senior Manager (General-Manager grade) of internal auditing at China Mobile
Communications Group Co., Ltd. and China Mobile Ltd. Previously served as Lecturer at Beijing College of Posts
and Telecommunications (now Beijing University of Posts and Telecommunications); Deputy Department Head
of Finance Department of the former Ministry of Posts and Telecommunications; and Vice General Manager at
Finance Department of China Mobile Communications Group Co., Ltd.
Ms. Zhang Lan, Supervisor. Bachelor of Economics and senior accountant. Also serving as Vice President
and CFO at USTC Holdings Co., Ltd.; Chairperson of the Board of Supervisors at CAS Quantumnet Co., Ltd.;
Supervisor at Hefei USTC Basic Education Group Co., Ltd.; Supervisor at QuantumCTEk Co., Ltd.; Director at
Anhui Qasky Quantum Technology Co. Ltd.; and Director at Origin Quantum Computing Technology Co., Ltd.
Previously served as Director of Finance and Asset Department at Logistics Group of USTC and Assistant to the
Head of Finance Department at USTC.
Ms. Dong Xueyan, Supervisor. Bachelor of Chinese Language and Literature at Anhui University. Currently
serving as Senior Manager at the Company’s President Office. Previously served as Secretary to the Company’s
Communist Youth League of China, Regional Manager and Marketing Director of the Education Department.
Mr. Wang Hongxing, Supervisor. Master of Engineering Management at Peking University and Bachelor of
Management and Engineering at USTC. Also serving as the Company’s Chief Information Officer and Director at
Shanghai Zhifei Yuannian Technology Co., Ltd. Previously served as Consulting Director at IBM China Co., Ltd.
and Accenture China Co., Ltd. and General Manager of Information Management Department at Founder Group
of Peking University.
Ms. Lu Xueling, Supervisor. Bachelor of Software Engineering at Jiangxi University of Finance and
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Economics. Also serving as the Company’s Manager of Operations Management at Strategic Operations
Department. Previously served as Head of the testing team and project manager.
Senior Management Members
For the main work experiences of Messrs. Wu Xiaoru, Jiang Tao, Nie Xiaolin and Duan Dawei, who also
serve as the Company’s directors, please refer to the “Members of the Board of Directors” section.
Ms. Du Lan, Vice President. Doctor of Management Science and Engineering at South China University of
Technology, senior economist, Member of the Standing Committee of Guangdong Youth Federation and Member
of the Executive Council of Guangdong Provincial Association for Young Scientists. Also serving as Manager at
iFLYTEK South China Co., Ltd.; Executive Director and General Manager at Guangzhou Keyu Information
Technology Co., Ltd.; Executive Director and General Manager at Guangzhou Keyin Information Technology Co.,
Ltd.; Director at Guangdong AIAD Technology Co., Ltd.; Managing Partner at Guangzhou Yitingshuo
Investment Consulting Partnership (limited partnership); Executive Director at iFLYTEK South China AI
Research Institute (Guangzhou) Co., Ltd.; Executive Director and General Manager at Guangzhou iFLYTEK
Superbrain Technology Co., Ltd.; and independent director at BGI Genomics. Previously served as General
Manager at General Department of Southern Bases and of the Internet company (under development) of China
Mobile Communications Group Co., Ltd.
Ms. Wang Ming, Financial Controller. Holder of a Bachelor degree and accountant. Also serving as
Supervisor at Xinjiang Shenggu Rongchuang Digital Industrial Development Co., Ltd.; Supervisor at Xinjiang
Yiyu Shenggu Information Technology Co., Ltd.; Supervisor at Guangzhou iFLYTEK ETS Network Technology
Co., Ltd.; and Supervisor at Tianjin iFLYTEK Financing and Leasing Co., Ltd. Previously served as Deputy
Manager at Finance Department of Business Tower of Hefei Department Store Building Group, Head of
Accounting Department of Joymart of Hefei Department Store Building Group, General Manager of Business and
Finance Department of iFLYTEK and the Company’s Deputy CFO.
Concurrent positions held in shareholding units
√ Applicable □ Not applicable
Remuneration
Term end and
Name Unit name Position Term start date
date allowances
collected
Chairperson at Migu
China Mobile Limited Cultural Technology 06 February 2015
Liu Xin Yes
Co., Ltd.
Wang USTC Holdings Co., Ltd. 25 July 2019
President Yes
Bing
Wang Basic Education Group of USTC 15 April 2015
Director
Bing
University of Science and Technology of
29 May 2015
Wang China Press Director
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Bing
Senior Manager
(General-Manager
Gao China Mobile Limited grade) of internal 01 September 2020
Yes
Lingling auditing at China
Mobile Ltd.
Senior Manager
(General-Manager
grade) of internal
Gao China Mobile Limited auditing at China 01 September 2020
Yes
Lingling Mobile
Communications Group
Co., Ltd.
Zhang USTC Holdings Co., Ltd. Vice President, CFO
01 September 2020 Yes
Lan
Zhang Basic Education Group of USTC
Supervisor 01 May 2018
Lan
Positions
in the
shareholdi Directors and supervisors dispatched by shareholding units
ng units
Positions held in other units
√ Applicable □ Not applicable
Remuneration
and
Name Unit name Position Term start date Term end date
allowances
collected
Beijing iFLYTEK Educational
Liu 30 June 2014 27 August 2021
Technology Co., Ltd. Chairperson
Qingfeng
Liu Anhui Yanzhi Technology Co., Ltd. 09 December 2019
Executive director
Qingfeng
Liu CAS Holdingss Co., Ltd. 05 July 2021
Director
Qingfeng
29 December 2020
Liu Beijing Butel Technology Co., Ltd. Director
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Qingfeng
Liu
Anhui iFLYTEK Healthcare Co., Ltd. Chairperson 24 December 2021
Qingfeng
Anhui Yuangou Biotechnology Co.,
Liu 04 March 2022
Ltd. Director
Qingfeng
Mango Excellent Media Co., Ltd. 19 September 2019 20 May 2024
Liu Xin Director
Wang Time Publishing and Media Co., Ltd.
Director 27 November 2015 No
Bing
Wang QuantumCTEk Co., Ltd. 25 May 2018
Director No
Bing
Wang CAS Quantumnet Co., Ltd. 29 November 2016
Director No
Bing
Wang Glory China Quantum Lidar 21 September 2017
Director No
Bing
Chinainstru & Quantumtech (Hefei)
Wang 26 December 2016
Co., Ltd. Director No
Bing
Shandong Glory China Quantum
Wang 26 July 2018
Lidar Director
Bing
Wu Wuhan iFLYTEK Xingzhi
Executive director
Xiaoru Technology Co., Ltd. 24 November 2017
Wu Beijing iFLYTEK Leizhixing
Director
Xiaoru Software Co., Ltd. 29 December 2016
Hefei iFLYTEK Reading and Writing
Wu 02 January 2019
Technology Co., Ltd. Executive director
Xiaoru
Wu Anhui Oriental iFLY Corporation 10 January 2017
Executive director
Xiaoru
Guangzhou iFLYTEK Yuchang Co., Executive director 16 November 2017
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Wu Ltd.
Xiaoru
Beijing iFLYTEK Educational
Wu 30 June 2014 27 August 2021
Technology Co., Ltd. Director
Xiaoru
Anhui iFLYTEK Jiecheng Software
Wu 03 August 2016
Technology Co., Ltd. Executive director
Xiaoru
Anhui iFLYTEK Jiecheng
Wu 26 April 2016
Information Technology Co., Ltd. Executive director
Xiaoru
Wu 27 October 2015
iFLYTEK South China Co., Ltd. Supervisor
Xiaoru
Beijing Huiji Zhiyi Technology Co.,
Wu 14 September 2021
Ltd. Executive director 05 June 2020
Xiaoru
iFLYTEK Central China (Wuhan)
Wu 11 December 2020
Co., Ltd. Executive director
Xiaoru
Guangdong iFLYTEK Qiming
Nie Executive director 11 February 2020
Technological Development Co., Ltd.
Xiaolin
Beijing Liyun Popular Education
Nie Executive director 20 August 2021
Technology Co., Ltd.
Xiaolin
Beijing Chinese Education Hailan
Nie Chairperson 09 September 2021
Information Technology Co., Ltd.
Xiaolin
Beijing ZKD iFLYTEK Information
02 July 2010
Jiang Tao Technology Co., Ltd. Executive director
Tianjin iFLYTEK Information Executive
11 November 2011
Jiang Tao Technology Co., Ltd. director, manager
Zhongke iFLYTEK Interconnection
(Beijing) Information Technology 04 August 2016
Jiang Tao Executive director
Co., Ltd.
Beijing iFLYTEK Qiming
04 December 2014
Jiang Tao Technology Co., Ltd. Executive director
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Sangfor Technologies 28 December 2016 03 December 2022 No
Jiang Tao Executive director
Shanghai iFLYTEK Ruiyuan
21 January 2020
Jiang Tao Information Technology Co., Ltd. Chairperson
Xiong’an iFLYTEK AI Technology
Executive director 13 February 2018
Jiang Tao Co., Ltd.
Tianjin Zhihui Valley Technological
23 October 2017
Jiang Tao Service Co., Ltd. Executive director
21 October 2016
Jiang Tao iFLYTEK Hebei Technology Co., Ltd. Executive director
Hefei Feier Smart Technology Co.,
15 June 2020
Jiang Tao Ltd. Director
Shenzhen iPanel Co., Ltd. 24 December 2019
Jiang Tao Director
Beijing Chinese-Foreign Translation
21 September 2020
Jiang Tao & Information Service Co., Ltd. Director
Beijing iFLYTEK Educational
Executive director 27 August 2021
Jiang Tao Technology Co., Ltd.
Beijing iFLYTEK Jizhi Technology
Jiang Tao Co., Ltd. Executive director 28 June 2021
Beijing iFLYTEK Zhiying
Jiang Tao Technology Co., Ltd. Executive director 28 December 2021
Beijing iFLYTEK Dalai Technology
03 March 2021
Jiang Tao Co., Ltd. Executive director
Anhui iFLYTEK Healthcare Co., Ltd. 24 December 2021
Jiang Tao Director
Chairperson of the
Zhang CAS Quantumnet Co., Ltd. 29 November 2016
Board of
Lan
Supervisors
Zhang QuantumCTEk Co., Ltd. 02 August 2021
Supervisor
Lan
Anhui Qasky Quantum Technology
Zhang 22 December 2020
Co. Ltd. Director 21 December 2023
Lan
Origin Quantum Computing 31 December 2020 31 December 2023
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Zhang Technology Co., Ltd. Director
Lan
Shanghai Zhifei Yuannian Technology
Wong
Co., Ltd. Director 24 November 2021
Hongxing
iFLYTEK South China Co., Ltd. 27 October 2015
Du Lan Manager
Executive director
Guangzhou Keyu Information
and General 23 February 2016
Du Lan Technology Co., Ltd.
Manager
iFLYTEK South China AI Research
25 December 2017
Du Lan Institute (Guangzhou) Co., Ltd. Executive director
Executive director
Guangzhou Keyin Information
and General 20 November 2015
Du Lan Technology Co., Ltd.
Manager
Guangdong AIAD Technology Co.,
10 March 2016
Du Lan Ltd. Chairperson
Guangzhou iFLYTEK ETS Network
08 March 2016 26 July 2021
Du Lan Technology Co., Ltd. Chairperson
Guangzhou Yitingshuo Investment
Consulting Partnership (limited 16 February 2016
Du Lan Managing partner
partnership)
Guangzhou iFLYTEK Superbrain Executive director
29 May 2018
Du Lan Technology Co., Ltd. and General
Manager
Shenzhen iFLYTEK Smart
15 September 2017
Du Lan Technology Co., Ltd. Executive director 27 October 2021
BGI Genomics Independent 16 June 2021 15 June 2024
Du Lan
director
Tianjin iFLYTEK Financing and
Duan Chairperson, 05 November 2019
Leasing Co., Ltd.
Dawei manager
Naji Investment Management Executive director
Duan 14 December 2014
(Shanghai) Co., Ltd. and General
Dawei
Manager
Anhui iFLYTEK Healthcare Co., Ltd. 24 December 2021
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Duan Director
Dawei
Tianjin iFLYTEK Financing and
Wang 05 November 2019
Leasing Co., Ltd. Supervisor
Ming
Guangzhou iFLYTEK ETS Network
Wang 11 May 2020
Technology Co., Ltd. Supervisor
Ming
Xinjiang Shenggu Rongchuang
Wang Digital Industrial Development Co., 08 January 2021
Supervisor
Ming Ltd.
Xinjiang Yiyu Shenggu Information
Wang 12 December 2016
Technology Co., Ltd. Supervisor
Ming
Penalties imposed by securities regulators on the Company’s incumbent and former directors, supervisors and
senior management members in the last three years.
□ Applicable √ Not applicable
3. Remuneration of Directors, Supervisors and Senior Management Members
(1) Decision-making procedures, determination basis and actual payment of remuneration for directors,
supervisors and senior management members
The Company has established a comprehensive performance appraisal system and remuneration system for
directors, supervisors and senior management members. In order to enable the Company to establish an incentive
and restraint mechanism in alignment with the modern enterprise system, motivate directors, supervisors and
senior management members, and improve the performance of the Company’s operations and management, the
Company has formulated clear Guidelines for Remuneration of Directors, Supervisors and Senior Management
Members. The remuneration of the Company’s directors, supervisors and senior management members is based
on the Company’s scale and performance, and it is determined comprehensively in line with the Company’s
business plan and the responsibilities and performance goals of specific roles.
The remuneration of the Company’s directors, supervisors and senior management members is determined in
accordance with the following principles: adhering to the principle of combining performance-based pay with
responsibilities, authority and interests of roles, so as to give full play to the incentive and restraint role of
remuneration; Linking up remuneration with the Company’s financial performance and business objectives while
having market rates for reference; remuneration is determined with a view to ensuring sustained and stable
development of the Company. The remuneration standards are established in accordance with the principles of
openness, justice and fairness. Upon approval by the Remuneration Committee of the Board of Directors, special
incentives or disciplinary programs may be temporarily set up for special matters as a supplement to the
remuneration of directors, supervisors and senior management members serving in the Company.
The remuneration of directors and senior management members serving in the Company consists of three
parts, namely, annual salary, bonus and benefits. Annual salary consists of annual base salary and annual
performance pay. Supervisors serving in the Company are entitled to monthly supervisor allowances, in addition
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to salaries and benefits based on their job grade and performance appraisal. If any adjustment needs to be made to
the remuneration of independent directors based on market conditions or other needs, it shall be reviewed and
decided at the shareholders’ general meetings.
The Remuneration and Appraisal Committee of the Board of Directors is responsible for the remuneration
management and performance appraisal of directors and senior management members. Board directors,
supervisors and senior management members serving in the Company receive remuneration based on their job
titles and roles, according to the Company’s current remuneration policy. The annual bonus of aforementioned
roles shall be determined at the end of the year through appraisal procedures based on the business performance
with the approval from the Board of Directors or the General Meeting of Shareholders. The standards of
allowances for independent directors and supervisors shall be reviewed by the Company’s shareholders’ General
meeting; reasonable expenses incurred by independent directors in attending the Company’s board meetings and
shareholders’ general meetings to perform their duties in accordance with the relevant provisions of the Company
Law and the Company’s Articles of Association shall be borne by the Company.
According to the Company’s Guidelines for Remuneration of Directors, Supervisors and Senior
Management Members, the annual base salary of the chairman of the Company in 2021 should be RMB33.2144
million [the Company’s audited net profit for the year × 2%]; the performance pay should be RMB 42.2349
million [(audited net profit for the current year – audited net profit for the previous year) × 4%]; the chairman of
the Company should receive a total annual compensation package of RMB75.4493 million. Taking into account
the growth stage of the Company, and in order to better reward outstanding employees of Category A, Mr. Liu
Qingfeng, Chairman of the Company, took the initiative to cut his annual salary and received an actual
compensation of RMB5.6 million for 2021.
(2) Remuneration of Directors, Supervisors and Senior Management Members during the reporting
period of the Company
Unit: RMB10000
Total Pre-tax Whether to Receive
Remuneration Compensation from
Service Status
Name Job Title Gender Age Received from the Related Parties of the
Company Company
48 560
Liu Qingfeng Chairman Male Incumbent
50 2.4
Liu Xin Director Male Incumbent Yes
53 0
Wang Bing Director Male Incumbent Yes
49 386
Wu Xiaoru Director, President Male Incumbent
Director, Vice
President, Secretary
47 270
Jiang Tao of the Board of Male Incumbent
Directors
Director, Vice 49 270
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Duan Dawei President Male Incumbent
Director, Vice
42 285
Nie Xiaolin President Male Incumbent
62 8
Zhao Xudong Independent Director Male Incumbent
58 7.1
Zhao Xijun Independent Director Male Incumbent
69 8
Zhao Huifang Independent Director Female Incumbent
69 8
Liu Jianhua Independent Director Male Incumbent
Chairwoman of the 59 2.4
Gao Lingling Female Incumbent Yes
Board of Supervisors
55 0
Zhang Lan Supervisor Female Incumbent Yes
42 58.22
Dong Xueyan Supervisor Female Incumbent
45 180
Wang Hongxing Supervisor Male Incumbent
32 82.94
Lu Xueling Supervisor Female Incumbent
45 210
Du Lan Vice President Female Incumbent
42 90
Wang Ming Finance Director Female Incumbent
Director, Vice 43 150
Hu Yu Male Resigned
President
Director, Vice 48 200
Chen Tao Male Resigned
President
58 0.67
Zhang Benzhao Independent Director Male Resigned
36 61.57
Qian Jinping Supervisor Male Resigned
-- -- -- -- 2,840.30 --
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Total -- -- -- -- --
VI. Directors’ Performance during the Reporting Period
1. Meetings of the Board of Directors during the Reporting Period
Board Meeting
Date Date of Disclosure Meeting Resolutions
Session
Announcement No.: 2021-003
The Ninth Announcement: Announcement on the Resolutions of the
Meeting of the Ninth Meeting of the Fifth Board of Directors
January 18, 2021 January 19, 2021
Fifth Board of Disclosed on Securities Times, China Securities Journal,
Directors Shanghai Securities News, Securities Daily and CNINFO
(http://www.cninfo.com.cn)
Announcement No.: 2021-012
The Tenth
Announcement: Announcement on the Resolutions of the
Meeting of the
January 25, 2021 Tenth Meeting of the Fifth Board of Directors
Fifth Board of January 24, 2021
Disclosed on Securities Times, China Securities Journal,
Directors
Shanghai Securities News, Securities Daily and CNINFO
(http://www.cninfo.com.cn)
Announcement No.: 2021-017
The Eleventh Announcement: Announcement on the Resolutions of the
Meeting of the Eleventh Meeting of the Fifth Board of Directors
February 8, 2021
Fifth Board of February 7, 2021 Disclosed on Securities Times, China Securities Journal,
Directors Shanghai Securities News, Securities Daily and CNINFO
(http://www.cninfo.com.cn)
Announcement No.: 2021-027
The Twelfth Announcement: Announcement on the Resolutions of the
Meeting of the Twelfth Meeting of the Fifth Board of Directors
April 18, 2021 April 20, 2021
Fifth Board of Disclosed on Securities Times, China Securities Journal,
Directors Shanghai Securities News, Securities Daily and CNINFO
(http://www.cninfo.com.cn)
Announcement No.: 2021-042
The Thirteenth Announcement: Announcement on the Resolutions of the
Meeting of the Thirteenth Meeting of the Fifth Board of Directors
April 21, 2021 April 22, 2021
Fifth Board of Disclosed on Securities Times, China Securities Journal,
Directors Shanghai Securities News, Securities Daily and CNINFO
(http://www.cninfo.com.cn)
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Announcement No.: 2021-055
The Fourteenth Announcement: Announcement on the Resolutions of the
Meeting of the Fourteenth Meeting of the Fifth Board of Directors
July 7, 2021 July 8, 2021
Fifth Board of Disclosed on Securities Times, China Securities Journal,
Directors Shanghai Securities News, Securities Daily and CNINFO
(http://www.cninfo.com.cn)
Announcement No.: 2021-061
The Fifteenth Announcement: Announcement on the Resolutions of the
Meeting of the Fifteenth Meeting of the Fifth Board of Directors
July 18, 2021 July 20, 2021
Fifth Board of Disclosed on Securities Times, China Securities Journal,
Directors Shanghai Securities News, Securities Daily and CNINFO
(http://www.cninfo.com.cn)
Announcement No.: 2021-066
The Sixteenth Announcement: Announcement on the Resolutions of the
Meeting of the Sixteenth Meeting of the Fifth Board of Directors
August 3, 2021 August 4, 2021
Fifth Board of Disclosed on Securities Times, China Securities Journal,
Directors Shanghai Securities News, Securities Daily and CNINFO
(http://www.cninfo.com.cn)
Announcement No.: 2021-070
The Seventeenth Announcement: Announcement on the Resolutions of the
Meeting of the Seventeenth Meeting of the Fifth Board of Directors
August 23, 2021 August 24, 2021
Fifth Board of Disclosed on Securities Times, China Securities Journal,
Directors Shanghai Securities News, Securities Daily and CNINFO
(http://www.cninfo.com.cn)
Announcement No.: 2021-074
The Eighteenth Announcement: Announcement on the Resolutions of the
Meeting of the Eighteenth Meeting of the Fifth Board of Directors
September 26, 2021 September 27, 2021
Fifth Board of Disclosed on Securities Times, China Securities Journal,
Directors Shanghai Securities News, Securities Daily and CNINFO
(http://www.cninfo.com.cn)
Announcement No.: 2021-084
The Nineteenth Announcement: Announcement on the Resolutions of the
Meeting of the Nineteenth Meeting of the Fifth Board of Directors
October 26, 2021 October 27, 2021
Fifth Board of Disclosed on Securities Times, China Securities Journal,
Directors Shanghai Securities News, Securities Daily and CNINFO
(http://www.cninfo.com.cn)
Announcement No.: 2021-089
The Twentieth
Announcement: Announcement on the Resolutions of the
Meeting of the
November 10, 2021 November 11, 2021 Twentieth Meeting of the Fifth Board of Directors
Fifth Board of
Disclosed on Securities Times, China Securities Journal,
Directors
Shanghai Securities News, Securities Daily and CNINFO
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(http://www.cninfo.com.cn)
Announcement No.: 2021-101
The 21st Meeting Announcement: Announcement on the Resolutions of the 21st
of the Fifth Board December 26, 2021 December 28, 2021 Meeting of the Fifth Board of Directors
of Directors Disclosed on Securities Times, China Securities Journal,
Shanghai Securities News, Securities Daily and CNINFO
(http://www.cninfo.com.cn)
2. Directors’ Attendance at Board Meetings and Shareholders’ General Meetings
2. Directors’ Attendance at Board Meetings and Shareholders’ General Meetings
Number of
Number of Whether the Number of
Board Number of Number of
Number of Board Director Has General
Meetings That Board Board
Board Meetings That Not Attended Meetings of
the Director Meetings That Meetings That
Director’s Name Meetings That the Director Two Shareholders
was Required the Director the Director
the Director Appointed a Consecutive That the
to Attend Attended Did Not
Attended Proxy to Board Director Has
during the On-site Attend
Virtually Attend Meetings in Attended
Reporting
Person
Period
13 12 1 0 0 No 4
Liu Qingfeng
13 0 13 0 0 No 4
Liu Xin
13 12 1 0 0 No 4
Wang Bing
13 11 2 0 0 No 4
Wu Xiaoru
3 1 2 0 0 No 4
Jiang Tao
13 12 1 0 0 No 4
Nie Xiaolin
3 3 0 0 0 No 4
Duan Dawei
13 1 12 0 0 No 4
Zhao Xudong
11 1 10 0 0 No 3
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Zhao Xijun
13 12 1 0 0 No 4
Zhao Huifang
13 10 3 0 0 No 4
Liu Jianhua
Chen Tao
(Resigned on 9 8 1 0 0 No 2
September 26,
2021)
Hu Yu (Resigned
9 6 3 0 0 No 2
on September 26,
2021)
Zhang Benzhao
2 1 1 0 0 No 1
(Resigned on
February 3, 2021)
3. Objections Raised by Directors on Matters Related to the Company
Is there any objection raised by any director on any matter related to the Company?
□ Yes √ No
No objection has ever been raised by any director on any matter related to the Company during the reporting
period.
4. Other Notes on Directors’ Performance
Was there any recommendation made by any director to the Company has been adopted?
√ Yes □ No
Notes on adopted or rejected recommendations made by directors to the Company
Board directors and independent directors of the Company perform their duties faithfully and diligently in
strict accordance with the Rules of Procedure for the Board of Directors, Articles of Association, and Rules on the
Appointment of and Procedure for Independent Directors. During the reporting period, directors and independent
directors of the Company paid close attention to the Company’s operations and management. Independent
directors checked carefully over the Company’s financial conditions, stock ownership incentive plan, non-public
issuance, related-party transactions, external guarantees, the use and management of raised funds as well as other
major issues. In addition, independent directors participated in the Company’s decision-making, making objective,
fair and independent judgments with their expertise, giving full play to the role of independent directors, and this
has safeguarded the legitimate rights and interests of the Company, all shareholders, especially small and minority
shareholders.
During the reporting period, directors of the Company actively offered advice and suggestions. The
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Company has attached great importance to recommendations made by directors, adopted and fully implemented
them. Main recommendations and information on implementation are as follows:
Recommendation 1: It is suggested that the Company fully implement the Notice on Matters Concerning
Promoting Listed Companies to Hold Business Performance Briefings issued by the China Securities Regulatory
Commission, and build a benchmark for performance briefings.
Information on implementation: The Company believes that performance briefings are key to investor
relations management, and always insists on holding efficient and effective performance briefings. On April 20,
2021, with the strong support of the Shenzhen Stock Exchange, the Company successfully held its 2020 annual
performance briefing in the listing ceremony hall of the Shenzhen Stock Exchange, and broadcast live online
through various media outlets, including Panorama. iFLYTEK’s 2020 annual performance briefing was awarded
the “Best Practice Case of Public Companies’ 2020 Annual Report Performance Briefings” by the China
Association for Public Companies, and was taken as a benchmark in the Dedicated Training for Shenzhen-listed
Companies on Performance Briefings organized by the Shenzhen Stock Exchange and the Dedicated Training for
Public Companies’ on Performance Briefings organized by the China Association for Public Companies, with both
sessions designed to share best practices with Shenzhen-listed companies and other public companies in China.
Recommendation 2: It is suggested that the Company actively discuss and formulate the Company’s medium
and long-term development plan in the first year of China’s 14th Five-Year Plan.
Information on implementation: In 2021, the Company pinpointed the goal of striving for “Artificial
Intelligence 2.0” as follows: during China’s “14th Five-Year Plan” period, the Company will strive to “become a
leader in China's AI industry, connecting one billion users and realizing RMB100 billion in operating revenue and
RMB1 trillion in ecosystem”; artificial intelligence will be an important engine to drive social progress in the
coming ten years, and iFLYTEK based on 20 years of development has a technological research and development
footprint covering most of the existing AI research fields. The Company’s achievements in key core technologies
of artificial intelligence are internationally advanced, such as voice interaction, machine vision and machine
cognition. At the same time, iFLYTEK has achieved breakthroughs in the application of technologies in various
industries, and in the design of software and hardware integration products. iFLYTEK has obtained the capability
to conduct systematic innovations to address major social value propositions and rigid social demands. Against
this background, in order to realize the long-term vision of “becoming a leader in the AI industry worldwide”, the
Company launched the “IFLYTEK Super Brain 2030 Program” at its 2022 annual meeting at the beginning of
2022, and set three milestones for the Program: in the first stage (2022-2023), the Company will launch robots
that integrate software and hardware, such as interactive companion pets and bionic robot dogs with motion, as
well as the family of professional virtual humans to serve as teachers and doctors, etc.; in the second stage
(2023-2025), the Company will launch walking exoskeleton robots and the family of companion virtual humans.
The elderly can walk and exercise normally with the exoskeleton robot. In the meanwhile, the Company will
launch a depression screening platform for teenagers; in the third stage (2025-2030), the Company will roll out
companion robots that have knowledge and know how to study and the family of independent-learning virtual
humans for families.
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VII. Special Committees of the Board of Directors during the Reporting Period
Important
Number Comments
Other Duties
Committee of Meeting Agenda and
Members Date Performed
Name Meetings Suggestions
Held Made
To review the Proposal on the Non-public Issuance of
the Company’s Shares, Emergency Response Plan for
Liu
April 7, 2021 Non-public Issuance of Shares and Feasibility
Qingfeng, Agreed
Liu Xin, 2021 Analysis Report on the Use of Funds Raised Through
Wang 2021 Non-public Issuance of Shares
Strategy
3
Committee Bing, August 2, To review the Proposal on Planning for the Spin-off
Jiang 2021 and Listing of Controlled Subsidiaries Agreed
Tao, Zhao
Xijun December
To review the Proposal on Signing the Investment and
19, 2021 Agreed
Cooperation Agreement and Outbound Investments
To review the 2020 Special Report on the Deposit and
Use of Raised Funds, Proposal on the Company’s
Related-Party Transactions, Proposal on Special
Explanation on the Occupation of Funds of Controlling To discuss
April 7, Shareholders and Other Related Parties, Internal AI-driven
2021 Control Evaluation Report, Audit and Supervision Agreed digitization to
Department’s 2020 Work Summary and Annual Work help audit
Plan for 2021, Proposal on Hiring RSM China
Zhao (Special General Partnership) as the Company’s 2020
Huifang, Annual Auditor, and The Company’s 2020 Annual
Zhao Report
Audit 4
Xudong, To review the Report on Q1 of 2021, Proposal on the
Committee
Duan Special Report on the Deposit and Use of Raised
Dawei April 18, Funds, Special Explanation on the Occupation of
2021 Funds of Related Parties, and Report on the Audit Agreed
Project of the Audit and Supervision Department in the
First Half of 2021
To review the Semi-annual Report 2021, Proposal on To discuss the
the Special Report on the Deposit and Use of Raised implementation
August Funds, Special Explanation on the Occupation of of audit
22, 2021 Funds of Related Parties, and Report on the Audit Agreed facilitated by
Project of the Audit and Supervision Department in the AI-driven
First Half of 2021 digitization
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2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
To review the Report on Q3 of 2021, Proposal on the
Special Report on the Deposit and Use of Raised
Funds, Special Explanation on the Occupation of
October
Funds of Related Parties, and Report on the Audit Agreed
20, 2021
Project of the Audit and Supervision Department in the
Third Quarter of 2021
To build a talent
To review the Proposal on By-election of Mr. Zhao
pool of
Zhao January Xijun as an Independent Director of the Fifth Board of
Agreed independent
Xudong, 23, 2021 Directors of the Company
directors
Nomination Liu 2
Committee Jianhua,
September To review the Proposal on By-election of Independent
Liu
25, 2021 Directors of the Fifth Board of Directors of the Agreed
Qingfeng
Company
To review the Proposal on the Remuneration of
Directors, Supervisors and Senior Management
Members in 2020, Proposal on Repurchase and
April 7,
Cancellation of Part of Granted Restricted Shares, and
2021 Agreed
Proposal on Meeting Conditions for Lifting
Restrictions on the Third Release Period of the Initial
Grant of Restricted Stocks in the Incentive Plan
To review the Proposal on Meeting Conditions for
July 13, Lifting Restrictions on the Third Release Period of the
2021 Reserved Parts of the First Phase of Restricted Stocks Agreed
Zhao in the Incentive Plan
Remuneration Xijun, Special
To review the Proposal on iFLYTEK Corporation 2021
and Appraisal Liu 4 Research on
Stock Option and Restricted Stock Incentive Plan
Committee Jianhua, Stock Incentive
(Draft) and Its Summary and the Administrative
Wu September and
Measures for the Implementation of the 2021 Stock Agreed
Xiaoru 17, 2021 Remuneration
Option and Restricted Stock Incentive Plan of
Competitiveness
iFLYTEK Corporation
in the Industry
To review the Proposal on Adjusting the Repurchase
Price of Restricted Stocks in the Second Restricted
Stock Incentive Plan and Repurchase and Cancellation
November of Part of Granted Restricted Stocks and the Proposal
Agreed
5, 2021 on Meeting Conditions for Lifting Restrictions on the
First Release Period of the Restricted Stocks in the
Second Restricted Stock Incentive Plan
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2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
VIII. Work of the Board of Supervisors
Whether the Board of Supervisors in the supervision of activities during the reporting period identified particulars
on risks.
□ Yes √ No
The Board of Supervisors had no objection to the supervision matters during the reporting period.
IX. Employees of the Company
(1) Number of employees, specialties and education backgrounds
Number of employees on the payroll of the parent company at
5,203
the end of the reporting period (person)
Number of employees on the payroll of major subsidiaries at the
9,104
end of the reporting period (person)
Total number of employees on the payroll at the end of the
14,307
reporting period (person)
Total number of employees receiving remuneration in the current
15,322
reporting period (person)
Number of retired employees for whom the parent company and
0
major subsidiaries need to bear the expenses (person)
Specialties
Specialty role Number of employees
Production staff 0
Sales staff 3,879
Technical staff 8,367
Finance staff 227
Administration staff 513
Managerial staff 218
Others 1,103
合计
14,307
Total
Education backgrounds
Education level Number of employees
Doctorate degree or above 116
Master’s degree 3,734
Bachelor’s degree 9,550
Associate degree or below 907
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2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
14,307
Total
(2) Remuneration policy
iFLYTEK advocates a labor policy based on compliance with laws and regulations, equality and free will,
and strictly abides by the Labor Law of the People’s Republic of China, Labor Contract Law of the People’s
Republic of China, Social Insurance Law of the People’s Republic of China, and Law on the Protection of
Women’s Rights and Interests of the People’s Republic of China, as well as other relevant laws and regulations,
making great efforts in respecting and protecting the legitimate rights and interests of employees, paying close
attention to the health and safety of employees, and respecting labor, knowledge and value creation.
In 2021, the Company optimized the structure and proportion of remuneration of employees according to the
characteristics of competition in the industry, and it has made the Company’s remuneration structure more
reasonable. Focus was put on the following work:
1) A transparent and efficient performance evaluation system
In the design of the performance evaluation system, the Company follows the basic principle of “dynamic
interconnection, flexibility and transparency”, and has established a transparent and efficient performance
evaluation system to evaluate employees’ performance on a regular basis, so that employees can fully understand
how well their capabilities match their job responsibilities, with a view to providing solid support to employees in
their pursuit of continuous growth.
Dynamically interconnected organizational evaluation
The Company has been perfecting the talent and organization interconnected evaluation mechanism based on
the quarterly performance of each department and has further refined each department's quarterly goals and
corresponding management mechanisms in alignment with the Company’s annual business goals and on the basis
of organizational performance management, and has established a mechanism of dynamic interconnection
between organizational performance and employees’ performance pay. This is designed to strengthen the
organizational performance management throughout the process, so as to ensure that organizational goals are
achieved while providing employees with more flexible incentives.
Flexible and transparent employee performance evaluation
Based on a complete and goal-oriented performance process, the Company is establishing an employee
performance evaluation system featured by goal-focused, two-way feedback between superiors and subordinates,
and full application of evaluation results to ensure fairness in evaluating individual performance.
Efforts have been made to establish an open and transparent performance evaluation system through
information disclosure, internal audit and other methods, so as to improve employees’ capabilities of managing
their personal performance. The performance appraisal mechanism based on administrative organizations is being
changed, and project management requirements are linked to the performance appraisal. By doing so, flexible
performance appraisal can be completed. By strengthening the dynamic relationship between performance results
and performance-based compensation, performance will become the main indicator for value distribution.
2) A remuneration incentive system by all and for all
Consistent with the Company’s business and operations, the Company has established a stock ownership
incentive and remuneration incentive and restraint mechanism featured by generating revenues by all and for all,
so as to ensure the sustainable and healthy development of the Company.
As for remuneration design, the Company advocates the principle of generating revenues by all and for all
and encourages employees to feel the benefits brought by business growth through their own hard work. Through
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2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
a simple and clear comprehensive remuneration structure, the matching of rank and remuneration is established,
so that each employee can clearly understand the relationship between personal contribution and compensation
incentives, and the Company tries to ensure fairness in the following three aspects as much as possible when
designing remuneration incentives:
Firstly, ensure external equity, i.e., salary competitiveness versus the market. The Company conducts
external salary surveys on a regular basis every year and determines the Company’s remuneration standards and
the basis for adjustment according to the survey results.
Secondly, ensure internal equity, and determine the salary standards for different positions according to the
value evaluation of positions.
Finally, ensure that individual performance is fairly reflected by remuneration. Employee compensation is
linked to individual performance, meaning more pay for better performance.
In order to further improve the initiative and creativity of the Company’s management and employees, and to
promote the Company’s continuous growth, the Company improves the incentive mechanism through the
implementation of the stock ownership incentive plan, with a view to achieving the common development of
employees and the Company while enhancing the Company’s value. The Company’s 2021 stock option and
restricted stock incentive plan grants 1,683,000 stock options to 70 employees and 24,249,200 restricted shares to
2,240 employees. By implementing stock ownership incentives that match the intensity of competition in the
industry, effective to attract and retain outstanding talent, the initiative of the Company’s management and core
technical/business personnel is fully mobilized.
The Company is required to comply with the disclosure requirements for the software and information
technology services industry as stated in the Guidelines of Shenzhen Stock Exchange for Self-discipline Regulation
of Listed Companies No. 3: Industry Information Disclosure.
The Company’s total employee compensation included in the total operating costs in the current period was
RMB3,517.631 million, accounting for 20.08% of the total operating costs. The Company’s profit is sensitive to
changes in the total employee compensation.
In 2021, the number of core technical staff of the Company accounted for 10.92% of the total number of
employees on the payroll, a 1.17% decrease from the 12.09% in 2020. The remuneration of core technical staff of
the Company accounted for 16.82% of the total employee remuneration, a decrease of 0.05% from the 16.87% in
2020.
3. Training plan
iFLYTEK follows its core philosophy of “helping employees achieve ideals and creating value for society”
and its outlook on talent, i.e., “talent is the Company’s greatest asset, and the appreciation of talent is the most
important dimension in the appreciation of the Company”. The Company always sees talent as its most important
resources and strives to build and continuously improve the talent management system, aiming to establish a
sound talent development system. In order to establish and improve the internal talent development structure, the
Company continues to improve its rapid talent development system by establishing and improving the job
qualification framework, combining employees’ growth with business development, establishing a benign
back-and-forth flow and job rotation mechanism, cultivating more comprehensive talent, and pursuing the
common success of the Company and employees.
1) Clear career paths
The Company continues to improve career paths of employees, optimizes the job qualification system, and
rolled out more than 30 career paths, covering operation management, products, technology, algorithm research,
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2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
project management, etc., and continuously improves the supporting learning system to help employees in their
career development. Employees can choose to pursue career development vertically and become industry experts
based on their actual situation, or they can pursue development opportunities horizontally based on the
Company’s needs and become inter-disciplinary talent by accumulating expertise and experience for different
career paths.
2) An established learning and training system
To drive the Company’s business development and employees’ personal growth, the Company has
established a hierarchical and role-based talent development system and has been continuously improving it. A
variety of talent development programs have been launched. Those programs involve training sessions for all
aspects, including leadership, know-how, general knowledge and skills, covering many roles such as experienced
professionals, fresh graduates, business experts, and management personnel, etc. To meet the Company’s and
employees’ development needs, in addition to continuously leveraging internal trainers, the Company has also
been vigorously bringing in external high-quality learning resources to provide platforms and resources for
employee development, improving employees’ capabilities and promoting their overall development.
3) An efficient mechanism for accelerated growth
To further motivate employees to pursue personal development, and to develop outstanding talent faster, the
Company has adopted a wide range of development measures. In October 2021, the Company issued the Core
Philosophy and Basic Principles of Management Personnel Administration to align the Company's management
personnel administration with unified standards, specify the missions and responsibilities of management
personnel, determine the qualification standards for management personnel, and improve relevant mechanisms
covering management personnel selection, appointment and development, etc. Meanwhile, the Company has
formed a “continuous source” of talent supply based on a comprehensive talent development system enabled by
the setup of teams of potential successors at all levels. In addition, the Company has also established an internal
job rotation mechanism to ensure the accelerated development of talent enabled by job rotation experience. In
2021, a large number of staff members were transferred from back-end research and development (R&D)
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2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
positions to front-end positions such as product lines and business lines. Greater efforts will be made in 2022 to
facilitate the talent flow between front-end and back-end positions to efficiently develop a large number of
inter-disciplinary professionals.
4. Labor outsourcing
√ Applicable □ Not applicable
Total work hours for labor outsourcing (hour) 688,121.28
Total pay for labor outsourcing (RMB) 39,772,394.32
X. The Company’s Profit Distribution and Conversion of Capital Reserve into Share Capital
The formulation, implementation or adjustment of the profit distribution policy, especially the cash dividend
policy, during the reporting period
√ Applicable □ Not applicable
Since its listing, the Company has always attached great importance to rewarding investors, and has clearly
stipulated provisions on cash dividends in the Articles of Association under the premise of ensuring the
Company’s sustainable development.
In order to ensure a reasonable, sustainable and stable shareholder return mechanism, increase the
transparency and operability of the decision-making on profit distribution policy, and effectively protect the
legitimate rights and interests of investors, the Company made the “Shareholder Return Plan for the Next Three
Years (2021-2023)” (hereinafter referred to as the “Plan”) in accordance with the Company Law, the “Notice on
the Further Implementation of Issues Concerning Cash Dividends of Listed Companies” and the “Guidelines for
the Supervision of Listed Companies No. 3 - Cash Dividends of Listed Companies” issued by the China Securities
Regulatory Commission, as well as other relevant laws, regulations, normative documents and the relevant
provisions of the Company’s Articles of Association, based on the actual situation of the Company. The Plan was
reviewed and approved at the Company’s first extraordinary general meeting in 2021.
Special explanation on cash dividend policy
Whether it complies with the Company’s Articles of Association or the resolutions of the
shareholders’ general meeting: Yes
Whether the dividend payout standard and ratio are clear and explicit:
Yes
Whether the relevant decision-making procedures and mechanisms are complete:
Yes
Whether independent directors have performed their duties and played their due roles:
Yes
Whether minority shareholders have the opportunity to fully express their opinions and
voice demands, and whether their legitimate rights and interests are fully protected: Yes
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2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
Whether the terms and conditions and procedures are compliant and transparent if the
cash dividend policy is adjusted or changed: Yes
The Company was profitable during the reporting period and the parent company’s profit available for distribution
to shareholders was positive, but no cash dividend distribution plan was proposed.
□ Applicable √ Not applicable
Profit distribution and conversion of capital reserve into share capital during the reporting period
√ Applicable □ Not applicable
Number of bonus shares for every 10 shares (share) 0
Dividend per 10 shares (RMB) (tax included) 1.00
Equity base of the distribution plan (share) 2,324,325,245
Amount of cash dividends (RMB) (tax included) 232,432,524.50
Amount of alternatives to cash dividends (such as share
0.00
repurchase) (RMB)
Total cash dividends (including alternative forms) (RMB) 232,432,524.50
Distributable profits (RMB) 469,875,998.25
Proportion of total cash dividends (including alternative
100%
forms) to distributable profits
Cash dividends during the reporting period
If the Company is at its mature development stage and major capital expenditure has been planned, the proportion of cash dividends
in the distributable profit should be at least 40%.
Detailed description of profit distribution or the capital reserve conversion plan
Based on the total share capital of 2,324,325,245 by March 31, 2022, a dividend of RMB1.00 (tax included) is distributed to all
shareholders for every 10 shares, and the remaining undistributed profits will not be distributed for the time being. There are no
bonus shares. during the period from the time the Board of Directors reviewed the profit distribution plan to the date of equity
registration for the implementation of the profit distribution plan, if the Company’s total share capital changes due to the restricted
stock incentive plan or any other reasons, the implementation shall be based on the total share capital on the equity registration date
when the distribution plan is implemented in the future, and the above payout ratio should be kept unchanged while adjusting the
total amount.
XI. Implementation of the Company’s Stock Ownership Incentive Plan, Employee Stock
Ownership Plan or Other Employee Incentive Measures
√ Applicable □ Not applicable
1. Stock ownership incentive
On 18 April 2021, at the Twelfth Meeting of the Fifth Board of Directors and the Eighth Meeting of the Fifth
Board of Supervisors, the Proposal on Repurchase and Cancellation of Part of Granted Restricted Shares was
reviewed and approved. Since some employees have lost the eligibility for the restricted stock incentives due to
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2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
resignation or other reasons, the Company will repurchase and cancel the corresponding parts of the restricted
shares that have been granted to aforementioned employees but have not yet been released. For details, please
refer to the Announcement on Repurchase and Cancellation of Part of Granted Restricted Shares published by
Securities Times, China Securities Journal, Shanghai Securities News, Securities Daily and CNINFO
(http://www.cninfo.com.cn) on 20 April 2021.
On 18 April 2021, at the Twelfth Meeting of the Fifth Board of Directors, the Proposal on Meeting
Conditions for Lifting Restrictions on the Third Release Period of the Initial Grant of Restricted Stocks in the
Incentive Plan was reviewed and approved. According to relevant provisions of the Restricted Stock Incentive
Plan (Draft) and Summary, the conditions for lifting the restrictions on the third release period of the initial grant
of restricted stocks in the Company’s restricted stock incentive plan have been fulfilled. For details, please refer to
the Announcement on Meeting Conditions for Lifting Restrictions on the Third Release Period of the Initial Grant
of Restricted Stocks in the Incentive Plan published by Securities Times, China Securities Journal, Shanghai
Securities News, Securities Daily and CNINFO (http://www.cninfo.com.cn) on 20 April 2021.
On 20 May 2021, those shares released from the third release restriction period in the initial grant of the
Company’s first phase of restricted stock incentive plan were listed and circulated. The number of shares released
from restrictions this time was 35,853,180, accounting for 1.6116% of the Company’s total share capital at that
time. The number of people whose shares were released from restrictions this time was 760. For details, please
refer to the Indicative Announcement on Shares Released from the Third Release Restriction Period in the Initial
Grant of the Company’s First Phase of Restricted Stock Incentive Plan Being Listed and Circulated” published by
Securities Times, China Securities Journal, Shanghai Securities News, Securities Daily and CNINFO
(http://www.cninfo.com.cn) on May 18, 2021.
On 28 May 2021, the repurchase and cancellation of parts of granted restricted shares of the Company’s
incentive plan was completed. After the completion of the repurchase and cancellation, the total number of shares
of the Company was changed from 2,224,737,717 to 2,224,132,297. For details, please refer to the Announcement
on the Completion of Repurchase and Cancellation of Part of Granted Restricted Shares published by Securities
Times, China Securities Journal, Shanghai Securities News, Securities Daily and CNINFO
(http://www.cninfo.com.cn) on 29 May 2021.
On 18 July 2021, at the Fifteenth Meeting of the Fifth Board of Directors, the Proposal on Meeting
Conditions for Lifting Restrictions on the Third Release Period of the Reserved Parts of Restricted Stocks in the
Incentive Plan was reviewed and approved. According to relevant provisions of the Restricted Stock Incentive
Plan (Draft) and Summary, the conditions for lifting the restrictions on the third release period of the reserved
parts of restricted stocks in the Company’s restricted stock incentive plan have been fulfilled. For details, please
refer to the Announcement on Meeting Conditions for Lifting Restrictions on the Third Release Period of the
Reserved Parts of Restricted Stocks in the Incentive Plan published by Securities Times, China Securities Journal,
Shanghai Securities News, Securities Daily and CNINFO (http://www.cninfo.com.cn) on 20 July 2021.
On 17 August 2021, those shares released from the third release restriction period in the reserved parts of the
Company’s first phase of restricted stock incentive plan were listed and circulated. The number of shares released
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2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
from restrictions this time was 3,638,400, accounting for 0.1582% of the Company’s total share capital at that
time. The number of people whose shares were released from restrictions this time was 354. For details, please
refer to the Indicative Announcement on Shares Released from the Third Release Restriction Period of the
Reserved Parts of the Company’s First Phase of Restricted Stock Incentive Plan Being Listed and Circulated
published by Securities Times, China Securities Journal, Shanghai Securities News, Securities Daily and
CNINFO (http://www.cninfo.com.cn) on 13 August 2021.
On 26 September 2021 and 13 October 2021, the Proposal on the Company’s Stock Options and Restricted
Stock Incentive Plan (Draft) and Summary was reviewed and approved respectively at the Eighteenth Meeting of
the Fifth Board of Directors of the Company and the Company’s second extraordinary general meeting in 2021.
On 26 October 2021, the Proposal on Granting Stock Options to Employees Enrolled in the 2021 Stock
Options and Restricted Stock Incentive Plan was reviewed and approved at the Nineteenth Meeting of the
Company’s Fifth Board of Directors. As determined by the Company’s Board of Directors, the options this time
were granted on 26 October 2021. A total of 1,683,000 shares were granted to 70 people at a price of RMB52.95
per share. For details, please refer to the Announcement on Granting Stock Options to Employees Enrolled in the
2021 Stock Options and Restricted Stock Incentive Plan published by Securities Times, China Securities Journal,
Shanghai Securities News, Securities Daily and CNINFO (http://www.cninfo.com.cn) on 27 October 2021.
On 4 November 2021, the registration of granted stock options of the Company’s 2021 Stock Options and
Restricted Stock Incentive Plan was completed. For details, please refer to the Announcement on Completion of
Registration of Granted Stock Options of the Company’s 2021 Stock Options and Restricted Stock Incentive Plan
published by Securities Times, China Securities Journal, Shanghai Securities News, Securities Daily and
CNINFO (http://www.cninfo.com.cn) on 6 November 2021.
On 10 November 2021, the Proposal on Adjusting the Repurchase Price of Restricted Stocks in the Second
Restricted Stock Incentive Plan and Repurchase and Cancellation of Part of Granted Restricted Stocks was
reviewed and approved at the Twentieth Meeting of the Fifth Board of Director of the Company. Since some
employees enrolled in the second phase of the Restricted Stock Incentive Plan had been elected as supervisors or
resigned, the Company planned to repurchase and cancel the corresponding part of the 449,300 restricted shares
that had been granted to those employees but had not been released. Meanwhile, due to the 2020 annual dividend
distribution, the Company adjusted the repurchase price of shares included in the second phase of the restricted
stock incentive plan to RMB18.08 per share, according to the relevant rules of the Company’s Second Phase of
Restricted Stock Incentive Plan (Draft). For details, please refer to the Announcement on the Adjustment of the
Repurchase Price of Shares in the Second Phase of Restricted Stock Incentive Plan and the Repurchase and
Cancellation of Part of Granted Restricted Shares published by Securities Times, China Securities Journal,
Shanghai Securities News, Securities Daily and CNINFO (http://www.cninfo.com.cn) on 11 November 2021. At
the same time, the Proposal on Meeting Conditions for Lifting Restrictions on the First Release Period of the
Grant of Restricted Stocks in the Second Restricted Stock Incentive Plan was reviewed and approved at the
Twentieth Meeting of the Fifth Board of Directors of the Company. According to the relevant provisions of the
Company’s Second Phase of Restricted Stock Incentive Plan (Draft), the conditions for lifting restrictions on the
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first release period of the grant of restricted stocks in the Second Restricted Stock Incentive Plan have been
fulfilled. For details, please refer to the Announcement on Meeting Conditions for Lifting Restrictions on the First
Release Period of the Grant of Restricted Stocks in the Second Restricted Stock Incentive Plan published by
Securities Times, China Securities Journal, Shanghai Securities News, Securities Daily and CNINFO
(http://www.cninfo.com.cn) on 11 November 2021.
On 10 November 2021, the Proposal on Adjusting the List of Recipients Eligible for Restricted Shares and
Numbers of Shares to be Granted in the 2021 Stock Options and Restricted Stock Incentive Plan was reviewed
and approved at the Twentieth Meeting of the Fifth Board of Directors of the Company. Due to the resignation of
8 recipients who were originally eligible for restricted shares as part of the incentive plan and 3 recipients waiving
their rights to purchase all restricted shares they were eligible for due to their fund shortage or other personal
reasons, the Board of Directors of the Company adjusted the equities forfeited by the above 11 incentive
recipients among the rest of incentive recipients, and allocated relevant shares to incentive recipients on the
original incentive recipients list excluding directors, supervisors and senior management members. The number of
restricted stock incentive recipients in this incentive plan has adjusted from 2,264 to 2,253 accordingly, and the
total number of restricted shares granted remains unchanged. At the same time, the Proposal on Granting
Restricted Shares to Recipients in the 2021 Stock Options and Restricted Stock Incentive Plan was reviewed and
approved at the Twentieth Meeting of the Fifth Board of Directors of the Company. As determined by the
Company’s Board of Directors, the restricted shares this time were granted on 10 November 2021. A total of
24,320,200 shares were granted to 2,253 recipients.
On 15 December 2021, those shares released from the first release restriction period in the Company’s
second phase of restricted stock incentive plan were listed and circulated. The number of shares released from
restrictions this time was 7,855,020, accounting for 0.3414% of the Company’s total share capital at that time. The
number of incentive recipients whose shares were released from restrictions this time was 1,804. For details,
please refer to the Indicative Announcement on Shares Released from the First Release Restriction Period of the
Company’s Second Phase of Restricted Stock Incentive Plan Being Listed and Circulated published by Securities
Times, China Securities Journal, Shanghai Securities News, Securities Daily and CNINFO
(http://www.cninfo.com.cn) on 14 December 2021.
On 15 December, 2021, restricted shares of the Company’s 2021 Stock Options and Restricted Stock
Incentive Plan were granted and listed. A total of 24,249,200 shares, accounting for 1.0540% of the Company’s
total share capital of 2,300,525,300 shares before the grant, were granted to 2,240 incentive recipients. For details,
please refer to the “Announcement on Completion of Granting of Stock Options and Restricted Shares of the
Company’s 2021 Stock Options and Restricted Stock Incentive Plan” published by Securities Times, China
Securities Journal, Shanghai Securities News, Securities Daily and CNINFO (http://www.cninfo.com.cn) on
December 14, 2021.
The Company’s restricted stock incentive plan has played a positive role in retaining key staff members and
the turnover rate of incentive recipients is much lower than the average level of the artificial intelligence (AI)
industry. None of the key staff members who have been granted more than 100,000 shares as part of the incentive
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2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
plan has left the Company, enabling the Company to maintain stability of high-end talent repository in heated
competition for talents.
Incentive Stock Options for Directors and Senior Management Members of the Company
√ Applicable □ Not applicable
Unit: Share
Exercise
Number
Number Number Number price of Market Number Number Number
Number of
Number of newly of of the price per of of newly of
of stock restricted Grant
of stock granted exercisab exercised shares share at unlocked granted restricted
options shares price of
options stock le option option exercised the end restricted restricted shares
held at held at restricte
Name Job title held at the options shares shares during of the shares in shares held at
the end the d shares
beginning during during during the reporting the during the end of
of the beginnin (RMB/s
of the the the the reporting period current the the
reporting g of the hare)
year reporting reporting reporting period (RMB/sh reporting reporting reporting
period reporting
period period period (RMB/sh are) period period period
period
are)
Vice 2,490,00 2,490,00
Hu Yu Preside 0 0
nt
2,400,00 2,400,00
Wu Preside
0 0
Xiaoru nt
Vice 2,400,00 2,400,00
Chen
Preside 0 0
Tao
nt
Vice 2,328,00 2,328,00
Jiang
Preside 0 0
Tao
nt
Vice 2,076,00 2,076,00
Nie
Preside 0 0
Xiaolin
nt
Finance
Zhang Directo
696,000 696,000
Shaobin r
g (resigne
d after
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2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
end of
term)
Vice
300,000 300,000 100,000 26.48 100,000
Du Lan Preside
nt
Director
Duan , Vice 300,000 90,000 200,000 26.48 410,000
Dawei Preside
nt
Finance
Wang 60,000 18,000 70,000 26.48 112,000
Directo
Ming
r
13,050,0 12,798,0
-- 0 0 0 0 -- 0 -- 370,000 -- 622,000
Total 00 00
Performance Evaluation Mechanism of and Incentives for Senior Management Members
In order to establish an incentive and restraint mechanism in alignment with the modern enterprise system,
motivate directors, supervisors and senior management members, and improve the performance of the Company’s
operations and management, the Company has formulated clear Guidelines for Remuneration of Directors,
Supervisors and Senior Management Members upon the review and approval by the shareholders’ meeting.
According to the Guidelines, the remuneration of the Company’s directors, supervisors and senior management
members is based on the Company’s business scale and performance, and is determined comprehensively in line
with the Company’s business plan and the responsibilities and performance of specific roles. The remuneration of
directors, supervisors and senior management members adheres to the principle of combining performance-based
pay with rights and obligations, so as to bring the incentive and restraining force of remuneration into effect;
Remuneration plans are set with the Company’s financial performance and business objectives while having
market rates for reference, and determined with a view to ensuring sustained and stable development of the
Company. The remuneration standards are established in accordance with the principles of openness and fairness.
The Remuneration and Appraisal Committee of the Board of Directors evaluates the performance of directors and
senior management members and determines their remuneration.
2. Implementation of the employee stock ownership plan
□ Applicable √ Not applicable
3. Other employee incentive programs
√ Applicable □ Not applicable
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iFLYTEK’s perspective on talent is based on recognizing that “talent is the greatest asset to the Company
and talent development is the most important dimension of the Company’s growth”. The Company always follows
its core philosophy of “helping employees achieve ideals and creating value for society”, striving to provide
employees with development opportunities to achieve career success and community respects while enabling
employees to share the benefits of the Company’s growth through mechanisms of “generating revenues by all and
for all” and incremental performance management.
The Company has been perfecting the employees and organization resonance mechanism based on the
quarterly performance reviews of each department, and has been further refining the quarterly goals of each
department and corresponding management mechanisms in alignment with the Company’s annual business goals,
and has established a dynamic connection between organizational performance and employees’ merit-based salary
system. Processes are streamlined to enhance organizational performance management and ensure that
organizational goals are achieved while providing employees with more flexible incentives.
Based on a complete and goal-oriented performance process, the Company is establishing a goal-focused
employee performance evaluation system featured by two-way feedback between employees and their supervisors,
feedback and results are well documented and fully examined to ensure fairness in evaluating individual
performance. Efforts have been made to establish an open and transparent performance evaluation system through
information disclosure, internal audit and other methods, so as to improve employees’ capabilities of managing
their personal performance. The traditional performance review mechanism based on administrative organizations
is being changed to introduce project management requirements and bring more flexibility into the appraisal. By
strengthening the dynamic relationship between performance results and performance-based compensation,
performance becomes the main indicator for value distribution.
As for remuneration system and design, the Company advocates the principle of generating revenues by all
and for all, and encourages employees to reach for the benefits brought by business growth through their own hard
work. Through a simple and clear remuneration structure with matching job grades, each employee can clearly
understand the relationship between personal contribution and compensation incentives, and the Company tries to
ensure fairness in the following three aspects when designing remuneration incentives: firstly, external equity, i.e.,
salary competitiveness versus the market. The Company conducts external salary surveys on a regular basis every
year, and determines the Company’s remuneration standards and the basis for adjustment according to the survey
results; secondly, internal equity, the Company determines the salary standards for different positions according to
the value evaluation of those positions; finally, the Company tries to ensure that individual performance is fairly
reflected by remuneration. Employee compensation is linked to individual performance, meaning an accurate
reflection of the work contributed.
The Company is required to comply with the disclosure requirements for the software and information
technology services industry as stated in the Guidelines of Shenzhen Stock Exchange for Self-discipline Regulation
of Listed Companies No. 3: Industry Information Disclosure.
The Company allocated RMB134.8802 million for stock ownership incentives classified as accrued expenses,
accounting for 8.67% of the net profit attributable to shareholders of the listed company. RMB71.3502 million
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was used on stock option incentives for key tech personnel, accounting for 52.90% of the Company’s stock option
incentives in the current reporting period.
XII. Establishment and Implementation of the Internal Control System during the Reporting
Period
1. Establishment and Implementation of the Internal Control System
The Company attaches great importance to the establishment and improvement of an internal control system,
and acts in full accordance with the enterprise internal control standards to refine business processes, accurately
identify and evaluate internal and external risks faced by the Company, improve internal control measures,
optimize information systems, strengthen internal supervision, regularly conduct internal control self-assessment
and improve the internal control system. Based on the actual situation of the Company, the Company has
formulated a series of policies, including the Internal Control Policy, Internal Audit Policy, Policy on Making
Major Operational Decisions, External Investment Management Policy, Administrative Measures for External
Financial Assistance, Administrative Measures for Fundraising, Related-Party Transaction Policy, Significant
Information Internal Reporting Policy, Seal Management Regulations, and Fund Management Policy, and strictly
implement the internal control guidelines for listed companies to maintain standardized corporate management.
Based on iFLYTEK’s competitiveness in its world-leading artificial intelligence (AI) technology, the
Company actively adopts AI to empower internal control. The Company has applied AI in integrating information
and data from different systems within the Company and has been using risk models and algorithms to automate
most of the internal control processes, further improving the accuracy, efficiency and intelligence of internal
control. Digital audit has been applied in employee self-service expense reimbursement, making automatic
problem identification possible, forming a relatively sophisticated problem prevention and control system for
employees expense reimbursement.
Figure AI-empowered Internal Control
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The Company sets up functional departments according to the actual needs of operation and management. As
designed, each department has clear work scopes and responsibilities, continuously establishes and optimizes
systems and processes according to business development and is responsible for the actual transformation and
implementation. Each department provides guidance, supervision and support to branches and controlled
subsidiaries, and carry out rectification when problems are identified. The work scope, responsibilities and
objectives of each branch, controlled subsidiary, and position are clearly defined, delegation, inspection and
accountability mechanisms are established, with appropriate authorization and clear responsibilities at all levels,
to ensure that functions are performed within the scope of authorization.
In order to strengthen the management of subsidiaries, establish an effective control mechanism, conduct risk
control on the organization, resources, assets, investment, operation and other aspects of the listed company, and
improve the overall operational efficiency and anti-risk capability of the listed company, the Company has
formulated the Regulations on the Management of Controlled Subsidiaries covering the governance, day-to-day
operation, financial management, business and investment decision-making, significant information reporting,
internal audit supervision and inspection, human resources management, performance appraisal and management
of controlled subsidiaries. The Company centralizes financial management, and assigns directors, supervisors and
senior management members to oversee controlled subsidiaries. The Company manages the businesses of
controlled subsidiaries by defining the responsibilities and obligations of the assigned directors and supervisors.
Individuals in charge of the controlled subsidiaries report work to upper management assigned with corresponding
duties at the end of each year, so as to ensure that the Company’s management measures can be effectively
implemented.
The Audit and Supervision Department determines the main business units, business and matters that need to
be included in the audit scope in strict accordance with the risk-based audit approach, covering the main aspects
of the Company’s operation and management. The main business units included in the audit scope include the
Company, wholly-owned and controlled subsidiaries. The total assets of the business units in the audit scope
account for 100% of the total assets recorded in the Company’s consolidated financial statements, and the total
operating revenue accounts for 100% of the total operating revenue recorded in the Company’s consolidated
financial statements. The main business and matters included in the audit scope include: corporate governance,
development strategy, organizational structure, human resources, corporate culture, work ethics and competence,
information and communication, internal supervision and other processes and procedures involved in
corporate-level control structure in the Company’s internal control and management manual and relevant rules on
implementation; funds, investment, sourcing and procurement, sales, inventory, fixed asset management,
engineering projects, research and development, business outsourcing, budget management, guarantee business,
storage and use of raised funds, related-party transactions and other processes and fields involved in the
business-level control structure.
2. Specifics of Major Defects Identified in Internal Control during the Reporting Period
□ Yes √ No
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XIII. Management and Control of the Company during the Reporting Period
Problems Actions Follow-up
Company Status
Acquisition Plan Milestones Encountered Taken Plan
Name
On 12 July 2021, Anhui iFLYTEK According to iFLYTEK’s
Healthcare Co., Ltd. (“iFLYTEK Regulations on the
Healthcare”), a controlled subsidiary Management of Controlled
of the Company, and Anhui Imaging Subsidiaries, after the
Union Cloud Health Technology acquisition, integration and
Co., Ltd. (“Imaging Union”) signed adjustment will be made in
an Investment Cooperation the following aspects:
iFLYTEK’s
Agreement (the “Agreement”). 1. Personnel: By July 2021,
standardized
According to the Agreement, after iFLYTEK has appointed 3
internal
the completion of this investment, members to the Board of
control
iFLYTEK Healthcare will hold 51% Directors of Imaging Union
management By now, a
of the shares of Imaging Union, and (5 directors in total), to
system has standardized
the shareholding ratio of Anhui obtain effective control over
been internal
iFLYTEK Yunchuang Technology major decisions. In August A
established control
Co., Ltd. which is the Company’s 2021, iFLYTEK assigned systematic
at Imaging process has
wholly-owned subsidiary in Imaging members of iFLYTEK internal Internal
Anhui Union. been
Union will drop to 7.03%. The Healthcare to serve as the control controls at
Imaging In the established
Company will indirectly control president, Vice President, management Imaging
Union meantime a at Imaging
58.03% of the shares of Imaging finance director and other structure Union and
Cloud professional Union and it
Union through iFLYTEK Healthcare management roles of was not guidance
Health compliance has been
and iFLYTEK Yunchuang, making Imaging Union. established will be
Technology team has integrated
Imaging Union a controlled 2. Finance: The finance in this further
Co., Ltd. been put in into the
subsidiary of iFLYTEK Healthcare director of iFLYTEK subsidiary strengthened.
place to overall
and iFLYTEK. iFLYTEK and Healthcare has been before the
supervise management
iFLYTEK Healthcare provide appointed to work with the acquisition.
and audit framework
professional guidance, supervision finance team from Imaging
Imaging of
and support to Imaging Union. In Union to standardize and
Union to iFLYTEK.
view of the footprint and expert integrate work processes
ensure asset
resources that Imaging Union has according to financial
security and
developed in the Internet-based management rules and
standardized
healthcare over the past years, requirements of iFLYTEK
operation.
Imaging Union’s keeps its remote Healthcare.
imaging and digital imaging 3. Business: Teams of the
businesses independent, and will two sides work together to
leverages iFLYTEK’s leading formulate business plans for
position in the industry, client base imaging, and integrate
and management to expand the resources of both sides to
domestic market together. explore business
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opportunities of digital
imaging and remote
imaging.
XIV. Self-Assessment Report on Internal Controls or Internal Control Auditor's Report
1. Self-Assessment Report on Internal Controls
Date of disclosure of the full text of the
April 22, 2022
Assessment Report on Internal Controls
Disclosure index of the full text of the 2021 Assessment Report on Internal Controls published on CNINFO
Assessment Report on Internal Controls (http://www.cninfo.com.cn)
The ratio of the total assets of the business
units included in the assessment scope to
100%
the total assets of the Company’s
consolidated financial statements
The ratio of the operating revenue of the
business units included in the assessment
scope to the operating revenue of the 100%
Company’s consolidated financial
statements
Defect identification standards
Category Financial statements Non-financial statements
Material defects: A defect in internal
The following scenarios may be identified
controls alone or in combination with other
as material defects, and other scenarios may
deficiencies that are reasonably likely to
be identified as major defects or general
result in a failure to prevent or detect and
defects depending on the degree of impact:
correct a material misstatement in a
(1) unreasonable decision-making
financial statement in a timely manner,
procedures of the Company; (2) violation
such as the following scenarios: (1)
of national laws and regulations, such as
directors, supervisors or senior
environmental pollution; (3) brain drain
Qualitative classification criteria management members conduct fraudulent
(managerial or technical personnel); (4)
practices; (2) the Company corrects a
frequent negative news covered by media;
published financial statement; (3) a
(5) defects identified in the assessment of
certified public accountant finds that there
internal controls are not corrected,
is a material misstatement in the current
especially material and major defects; (6)
financial statement, but the internal controls
important business lacks institutional
fail to detect the misstatement during the
control or the institutional control fails
operation process; (4) ineffective
systematically.
supervision of the internal controls by the
Company’s audit committee and internal
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audit office; (5) other defects that may
affect the correct judgment of the users of
the financial statement. Major defects: A
defect in internal controls alone or in
combination with other defects that have a
reasonable possibility of resulting in failure
to prevent or detect and correct a
misstatement in a financial statement in a
timely manner that, though not at or above
the level of significance, should still catch
the attention of the Board of Directors and
senior management members. General
defects: Defects in internal controls that do
not constitute material defects and major
defects.
Material defects: The property loss caused
Material defects: The property loss caused
by the defect exceeds or equals 1% of the
by the defect exceeds or equals 1% of the
total assets in the consolidated financial
total assets in the consolidated financial
statements; major defects: The property
statements; major defects: The property
loss caused by the defect exceeds or equals
loss caused by the defect exceeds or equals
0.5% but less than 1% of the total assets in
Quantitative classification criteria 0.5% but less than 1% of the total assets in
the consolidated financial statements;
the consolidated financial statements;
general defects: The property loss caused
general defects: The property loss caused
by the defect is less than 0.5% of the total
by the defect is less than 0.5% of the total
assets in the consolidated financial
assets in the consolidated financial
statements.
statements.
Number of material defects in financial
0
statement (pcs)
Number of material defects in non-financial
0
statements (pcs)
Number of major defects in financial
0
statement (pcs)
Number of major defects in non-financial
0
statement (pcs)
2. Assurance Report on Internal Controls
√ Applicable □ Not applicable
Deliberation in the Assurance Report on Internal Controls
iFLYTEK has maintained effective internal control over financial reporting in all material aspects as of December 31, 2021 in
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accordance with the Basic Norms for Enterprise Internal Control and relevant regulations.
Disclosure of Internal Control Auditor’s Report
Disclosed
Date of disclosure of the full text of the Internal Control Auditor’s
22 April 2022
Report
Disclosure index of the full text of the Internal Control Auditor’s Assurance Report on Internal Controls published on CNINFO
Report (http://www.cninfo.com.cn)
Type of opinion on the Internal Control Auditor’s Report Unqualified opinion
Any material defects in non-financial statements? No
Whether the accounting firm has issued an internal control auditor’s report with a modified opinion
□ Yes √ No
Whether the internal control auditor’s report issued by the accounting firm is consistent with the conclusion of the self-assessment
report of the Board of Directors
√ Yes □ No
XV. Rectification of Problems Identified in the Corporate Governance Campaign of the
Listed Company
Based on the uniform requirements established by the Listing Department of the China Securities Regulatory
Commission (CSRC), and in accordance with the requirements of the Notice on Conducting Effective Corporate
Governance of Listed Companies laid out by Anhui Securities Regulatory Bureau of the CSRC, the Company has
conducted self-inspection on 118 issues in the Self-Inspection Checklist for Corporate Governance of Listed
Companies. The self-inspection result shows that no rectification by the Company is needed for any issue.
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Section V Environmental and Social Responsibility
I. Major Environmental Issues
Whether the listed company or its subsidiaries are key corporate polluters announced by the environmental
protection authority
□ Yes √ No
Administrative penalties for environmental pollution during the reporting period
Impact on the production and The Company’s
Reason for the Violation of
Penalty result operation of the listed rectification
Company name penalty regulations
company measures
N/A N/A N/A N/A N/A N/A
Reference to other environmental pollution information disclosed by key corporate polluters
The artificial intelligence (AI) industry is an eco-friendly high-tech industry with high added value. The
Company’s AI technology and software-focused product application and development do not involve the
discharge of traditional industrial wastewater/exhaust gas/waste/noise in day-to-day operations. Based on its
world-leading AI technology with proprietary intellectual property rights, iFLYTEK actively engages AI in
pursuing low-carbon and sustainable growth, and advances environmental protection and development through
multiple measures in infrastructure construction, day-to-day production, environmental protection in work
locations and resource conservation.
Measures taken to reduce carbon emissions during the reporting period and effects
√ Applicable □ Not applicable
AI improves efficiency and facilitates energy conservation and emission reduction
AI and big data play an important role in carbon emission reduction, carbon monitoring, green finance,
carbon emissions trading and other relevant areas. iFLYTEK actively pursues innovation in industry solutions to
manage emission peak and achieve carbon neutrality, and works with scientific research institutions for this goal.
On the strength of the urban platform and digital base, iFLYTEK continues to conduct research on carbon
emission assessment, detection and analysis, and explores decision support system models to provide low-carbon
planning and optimization solutions for cities and their administrators, helping to build green communities.
iFLYTEK’s Artificial Intelligence Open Platform actively utilizes AI to improve industrial efficiency and
promote energy conservation and emission reduction. iFLYTEK’s AI Open Platform has achieved in-depth
coverage of AI applications in the industrial sectors, helping industrial businesses achieve upgrading in
digitalization and intelligence. In 2021, industrial and enterprise digital transformation applications accounted for
60% of new applications on iFLYTEK’s AI Open Platform.
Vehicle exhaust emission is one of the typical scenarios of carbon emissions. According to the estimate made
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by China Automotive Technology and Research Center, carbon emissions by automobiles account for more than
80% of carbon emissions in China’s transportation sector, and about 7.5% of carbon emissions in China.
iFLYTEK’s “Transportation Super Brain” solutions utilize AI to learn big data in transportation, empower refined
management of urban transport, and enable data-driven decision-making. Taking “Hefei Transportation Super
Brain” as an example, traffic big data is entirely linked to the Super Brain monitoring platform to enable accurate
monitoring of traffic flow at crossroads and in each section of roads, realize real-time traffic congestion warning
and identification of locations where traffic congestion occurs frequently, and provide data-based research support
for traffic management. This has effectively improved the traffic efficiency and reduced carbon emissions. So far,
more than 200 million pieces of various types of data are integrated and converged on Transportation Super Brain
on a daily basis, covering 2,417 intersections, 1,017 roads and 50 grid areas in the urban area of Hefei. Since the
operation of Transportation Super Brain, the traffic efficiency within the 15-square-kilometer demonstration area
has been significantly improved. Among the five traffic congestion alleviation plans released by Hefei, a total of
96 regular traffic congestion locations have been identified, 93% of which were identified via Transportation
Super Brain. With the Transportation Super Brain running, a signal timing optimization plan can be generated
every 2 minutes; data archiving has been completed for 2,156 intersections; signal timing at 756 intersections has
been optimized. During the operation period, the traffic flow rate of an area increased by 12.9% on average; the
traffic flow during the morning and evening peak hours on weekdays increased by 8.3%, and the traffic queue
decreased by 11.7%.
Reasonable use of resources for energy conservation and environmental protection
iFLYTEK attaches great importance to energy conservation and environmental protection and the impact on
surroundings. The Company strictly implements relevant national and industry regulations in infrastructure
construction, office waste and wastewater disposal, lighting, and greening of the industrial park, makes great
efforts in saving energy, reducing emissions, and creating a nice, green and healthy work environment. The
Company advocates the concept of green office, and keeps promoting the development of “paperless and smart
office” by improving the OA system and iFLYTEK Smart Conference System for online meetings.
iFLYTEK advocates energy conservation, emission reduction, safety and environmental protection.
iFLYTEK attaches great importance to energy conservation and environmental protection and the impact on
surroundings. The Company strictly implements relevant national and industry regulations in infrastructure
construction, office waste and wastewater disposal, lighting, and greening of the industrial park, makes great
efforts in saving energy, reducing emissions, and creating a nice, green and healthy work environment.
The Company arranges administrative and services staffs to study the Implementation Plan for Energy
Conservation and Consumption Reduction Initiative. In terms of the use of air conditioners, it is specified in the
Circular of the General Office of the State Council on Strictly Implementing the Temperature Control Standards
for Air Conditioners in Public Buildings that the temperature setting for indoor air conditioning in office areas,
such as, offices and conference rooms, in summer shall not be lower than 26℃ and shall not be higher than 20℃
in winter.” In this regard, the supervision and control center sets and controls the use of VRN central air
conditioners to reduce the utilization rate of air conditioners to the greatest extent, and effectively control the
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power consumption and carbon emissions. In addition, the Company has further refined the centralized control
system by adopting innovative technologies to add a water cooling system to air conditioners’ outdoor units, using
the condensate to cool the units in summer. By doing so, great results have been achieved in energy saving and
consumption reduction, and it has been estimated that the energy consumed can be reduced by 20% in summer.
Meanwhile, spot checks are conducted to ensure that the Company’s regulations are strictly followed and that
employees’ awareness of energy conservation and environmental protection can be further strengthened.
The Company has published the Administrative Measures for the Management of Company Vehicles to
optimize fuel use and vehicle maintenance, reduce exhaust emissions, and frequently use electric buses in
transportation services. iFLYTEK community has launched several volunteering activities and encouraged
employees to help each and travel green. In addition, the Company has developed an internal carpooling software
- “AI Carpooling”, so as to effectively promote energy conservation and emission reduction.
Practicing “Green Office” initiative and focusing on sustainable development
iFLYTEK has formulated the Code for Office Environment Management, adhering to the four principles of
“keeping the office clean, orderly, green and safe”. The Company continues to optimize codes of conducts while
working to establish scoring and evaluation system to create better workplace environment.
The Company advocates the concept of green office, and keeps promoting the development of “paperless and
smart office” by improving the OA system and iFLYTEK Smart Conference System for online meetings. The
Company also advocates employees to develop good habits of electricity saving, paper recycling, double-sided
printing, and saving water and ink cartridges. In terms of power supply and lighting in work areas, lamps are
being replaced with energy-saving ones; lighting circuits are being optimized to enable zone controls, and patrols
are carried in unmanned offices to switch lights off in time.
The Company encourages everyone to take ownership, save company and community resources, live green
and contribute to the development of an environment-friendly society. The above ideal has been deeply rooted in
the minds of iFLYTEK employees and been practiced every day. In terms of digital management, iFLYTEK has
developed a variety of intelligent applications covering multiple scenarios, such as “AI + office, AI + recruitment,
AI + finance, and AI + industrial park”. By improving efficiency, the Company strives for energy conservation
and emission reduction.
II. Corporate Social Responsibility
For details, please refer to the 2021 Environmental, Social and Governance (ESG) Report and Corporate
Social Responsibility Report disclosed by the Company on CNINF (http://www.cninfo.com.cn) on 22 April 2022.
III. Building on Achievements of Poverty Alleviation and Rural Vitalization
(1) Promote the sharing of high-quality educational resources in urban and rural areas through the
“AI-enabled Non-profit Education Program”
Education in impoverished areas is one of the biggest challenges in poverty alleviation. The fundamental
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solution to poverty is to address the generational poverty through education and cultivation. Providing small-size
schools in rural areas with quality and balanced education services is connecting the “last mile” of compulsory
education, “For the next generation to live a good life, they need to develop literacy.” In view of the reality that
experienced teachers are not likely to be placed in all urban and rural areas, iFLYTEK starts to increase the
supplies of high-quality educational resources in rural areas where educational resources are scarce, and promote
the sharing of those educational resources through technologies and applications.
iFLYTEK has launched the “AI-enabled Non-profit Education Program” which is designed to promote the
development of education through AI and help solve the problem of generational transmission of poverty from the
root. AI stands for “artificial intelligence”, and it is also pronounced like “love” in mandarin Chinese. The
program aims to make students in rural areas feel cared and supported through AI-empowered education.
iFLYTEK has provided teaching tools, educational toys, curriculums and other products, conducted trainings for
teachers in rural areas and run volunteer teaching programs to help left-behind children in underdeveloped areas,
so they can catch up with the recent technological progress and grow up happily.
In September 2021, iFLYTEK launched a non-profit AI-empowered education event named “Salute
Teachers -- iFLYTEK Dictionary Pens for Free”, nearly 9,000 teachers from nearly 7,000 schools in 290 areas of
31 provinces across China received iFLYTEK dictionary pens for free. In December 2021, at a donation
ceremony named “Salute Teachers – Village Teachers as Dream Builders”, iFLYTEK donated iFLYTEK
dictionary pens with a total value of RMB1.08 million to the China Teacher Development Foundation, as well as
iFLYTEK dictionary pens to each of 1,210 teachers who had been awarded the title of “Outstanding Village
Young Teachers”.
In November 2021, the Xingfu Primary School in Wufeng County of Hubei Province received new
educational tools and devices worth RMB700,000, including iFLYTEK Xiaofei robots, AI Futurist, AI courses,
AI education application platform, etc. With AI-enabled education products, children in rural schools can take the
same classes as students from schools in cities, covering subjects such as English, arts and music. AI-empowered
smart education is helping the Xingfu Primary School to pursue innovative changes.
In 2021, iFLYTEK Non-profit Education also provided big data precision learning software and iFLYTEK
dictionary scanner pens to Xunwu Middle School in Jiangxi Province and 3 other schools, and deployed a
high-configuarted scanning and scoring device with installing system in each school. In addition, iFLYTEK
Non-profit Education donated smart classroom systems, big data precision learning software, and products for
English listening and speaking classes to Lushui No.1 Middle School in Nujiang of Yunnan Province, a batch of
smart education systems worth RMB1.05 million to Qinzhou Foreign Language School in Guangxi Zhuang
Autonomous Region, and smart education systems and products worth RMB1 million to Baise Education
Foundation in Guangxi.
At present, iFLYTEK’s AI-enabled Non-profit Education Program has rolled out initiatives in many
provinces and regions across China, including Anhui, Henan, Sichuan, Guizhou, Xinjiang, Hebei, Shanxi, Hubei,
Inner Mongolia and Shandong, using technologies to help children in rural schools pursue their dreams. The
stories of iFLYTEK’s AI-enabled Non-profit Education Program has been reported by many media outlets such as
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People’s Daily, China Youth Daily, and Xinhua News Agency.
(2) Improve literacy by breaking language barrier first, and bridge the “last mile” in rural vitalization
At present, over 80% of the population in China can speak Putonghua (i.e., standard Mandarin), but the rate
varies greatly between eastern and western China, as well as between urban and rural areas, limiting people in
remote and impoverished areas to develop skills, work in cities, and explore business opportunities. A study
conducted by the Institute of Quality Development Strategy of Wuhan University reveals that the ability to speak
Putonghua has a significant positive impact on migrant workers’ income. “Compared with those migrant workers
with below Putonghua skills, the income of migrant workers who have medium- and high-level Putonghua skill is
19.4%-21.0% higher and 30.3%-34.9% higher respectively.” Due to historical reasons and geographical
conditions, the popularization rate of Putonghua is low in some ethnic minorities regions and underdeveloped
areas in China, which has hindered people to get rid of poverty and enjoy economic growth.
Promoting Putonghua can break the language barrier and is beneficial for the rural vitalization and
integration of remote areas into the overall economic and social development of the entire country. iFLYTEK, as
one of the leaders from speech intelligence industry in China, is committed to promoting Putonghua and
contributing to poverty alleviation, so the underprivileged people will be able to speak the common language, find
more job opportunities and increase their income.
As a strategic partner of the Ministry of Education of China and the State Language Commission in IT
application in education, iFLYTEK has signed a strategic cooperation framework of “Poverty Alleviation by
Promoting Putonghua” with the Ministry of Education, the State Language Commission, the Poverty Alleviation
Office of the State Council and China Mobile, to leverage its world-leading AI technology and extensive
experience in IT application in education to promote Putonghua. The Company facilitates the deployment of its
applications and AI-enabled educational products in poverty-stricken areas across China, striving to help
registered people in need to learn Putonghua and fight poverty. iFLYTEK has undertaken many key projects of
the State Language Commission of China to assist in Putonghua proficiency exams and teaching, building and
operating a global Chinese learning platform to promote Putonghua through technological means.
The intelligent Putonghua assessment and aided teaching technology developed by iFLYTEK is an advanced
technical achievement with its capability on par with human experts, as recognized by the State Language
Commission. This technology has been widely used in the National Putonghua Proficiency Test taken by over 70
million people, as well as the Putonghua Proficiency Test for Chinese Ethnic Minorities (MHK) taken by 3.4
million person-times in total. To advance poverty alleviation through promoting Putonghua, iFLYTEK has
developed an app named “Language Poverty Alleviation” , using AI technologies such as speech synthesis,
speech recognition and speech evaluation to help people learn to speak Putonghua and recognize frequently used
characters, covering listening, speaking, reading and writing. From old revolutionary base areas to remote villages,
from mountain villages to ethnic minorities areas, the “Language Poverty Alleviation” app has been widely used
in Yunnan, Sichuan, Tibet, Xinjiang, Qinghai, Gansu and across China, building a language bridge for millions of
users to communicate with the outside world.
In September 2021, the State Language Commission issued the Notice on the Second List of Organizations
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2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
Selected for the National Language and Characters Promotion Bases, and iFLYTEK is the one and only
high-tech company on the list.
In the first year with the rollout of the “14th Five-Year Plan” and the blueprint for China’s development,
iFLYTEK is focusing on the overall needs of national development strategy and taking a step-by-step approach to
build preschool smart teaching assistant system, “Chang Yan Guo Tong” (meaning Language Connecting China)
for teachers, a national common language product system for colleges and universities, and a national common
language product system for farmers and herdsmen. The Company is building national common language learning
demonstration areas in Xinjiang, Tibet, Inner Mongolia and other regions to promote communication and
exchanges among different ethnic groups.
(3) Job opportunities created by AI
The modernization in rural areas is a new engine for rural vitalization, and iFLYTEK is actively exploring
new ways for this cause. By launching the AI Job Creation Program, iFLYTEK is exploring ways to create jobs
through AI and improve livelihood through IT application and intelligence technologies.
In 2021, iFLYTEK set up a Hakka annotation center in Xunwu, Jiangxi Province and created 18 types of
full-time jobs including “speech/audio annotators”, continuing to provide targeted support for local employment
through AI. The AI Job Creation Program launched by iFLYTEK has effectively addressed the issues in creating
jobs in the nearby neighborhood for the local people.
In Bijie, Guizhou Province, iFLYTEK has created jobs related to Guizhou dialect annotation, optical
character recognition (OCR) and iFLYREC transcription. In addition, the Company has created opportunities for
local developers to bring online work to offline scenarios through iFLYTEK’s Voice Cloud Platform, enabling
developers to participate in the “Poverty Alleviation Workshop” program to continuously upskill local people and
drive industrial development.
As a Chinese saying goes, “Give people fish and you feed them for a day. Teach them how to fish and you
feed them for a lifetime.” iFLYTEK is using AI technologies to enable sectors such as data annotation, so these
sectors can generate more job opportunities and infuse momentum to other sectors. As a reliable brand the
Company is practicing its corporate and social responsibilities by utilizing AI technologies to bring innovative
ways for rural vitalization.
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Section VI Significant Events
I. Performance of Commitments
1. Commitments that have been completed by parties concerned such as the actual controllers,
shareholders, related parties, and acquirers of the Company and the Company during the reporting period
or were still underway before the end of the reporting period
√ Applicable □ Not applicable
Type of Time of Status of
Commitment Made by Content Duration
commitment commitment performance
I. The
Company's
actual Avoiding horizontal competition,
controllers Commitment related-party transactions and fund Period of
20 Normally
(Liu by the actual misappropriation; and ensuring the acting in
November performed
Qingfeng controllers independence of the listed concert
2014
and USTC company
Holdings
Co., Ltd.)
II. Yang Jun,
Wang
Commitment Binbin,
made in the Zhang
acquisition Shaohua, Xu
report or Guiqin, Zhu
equity Peng,
interests Beijing Le
change Jiao Rong Commitment to avoiding Period of
report Zhi horizontal competition, and 09 being a
Normally
Investment Other commitments to reducing and December shareholder
performed
Development Commitments standardizing related-party 2016 of the listed
Partnership transactions, etc. company
Company
(Limited
Partnership),
and Beijing
Jia Hui Jin
Yuan
Investment
Development
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2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
Partnership
Company
(Limited
Partnership)
1. While I'm working at iFLYTEK,
the number of shares I transfer each
year will not exceed twenty-five
percent of the total number of
shares held in iFLYTEK. And, if I
leave iFLYTEK, I will not transfer
the shares held in iFLYTEK within
six months from my departure. 2.
I. Liu during the period of holding the
Qingfeng, shares of iFLYTEK, I will not Period of
the Commitment engage in any business that is the 24 April acting as an Normally
Company's at IPO same with or similar to the business 2008 actual performed
actual of iFLYTEK; will not directly controller
controller invest in or acquire any enterprise
or project with the same or similar
business as iFLYTEK, and will not
provide assistance to the competing
enterprises in any way. If for any
Commitment reason I render iFLYTEK in any
made at IPO horizontal competition, I will
or actively take effective measures to
refinancing abandon such competition.
II. Ningbo
Saite Equity
Investment
Partnership
Period of
Enterprise Commitment to avoiding
being a
and Nanjing Other horizontal competition, and 17 March Normally
shareholder
Chuangyi Commitments commitments to standardizing 2017 performed
of the listed
Investment related-party transactions, etc.
company
Management
Center
(Limited
Partnership)
1. I will not reduce my
shareholding in the listed company From the
III. Liu Other Normally
within six months before the 01 April benchmark
Qingfeng Commitments performed
benchmark date for the pricing of 2021 date for the
the listed company's private pricing of the
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2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
offering, i.e. 19 January 2021; 2. I listed
will not involved in any company's
circumstance of reducing my private
shareholding in the listed company offering, i.e.
or have a plan for doing so from 19 January
the benchmark date for the pricing 2021 to the
of the listed company's private end of the six
offering, i.e. 19 January 2021 to the months after
end of the six months after the the
completion of the private offering; completion
3. I'm not involved in any of the private
circumstance of violating Article offering
44 of the Securities Law and
Paragraph 7 of Article 39 of the
Administrative Measures for
Securities Issuance of Listed
Companies; and 4. What I've
committed is true, accurate and
complete. In the event that I break
the above commitments and reduce
my shareholding, all the proceeds
from the shareholding shall belong
to the listed company, and I'm
willing to take the legal liability
accordingly.
IV. Liu Subject to a
Commitment The shares purchased by all are
Qingfeng lock-up
on restriction subject to a lock-up period of 18
and Anhui 19 January period of 18 Normally
upon sales of months, and they are expected to
Yanzhi 2021 months from performed
shares issued circulate on 19 January 2023
Technology the first day
in refinancing starting from the first day of listing.
Co., Ltd. of listing
The Company undertakes not to
provide the awardees with loans or
any other forms of financial
assistance, including provision of
guarantee for their loans, in respect 19 Period of
Stock The
of their entitlement to the relevant September implementing
ownership Company Other Normally
stock options or restricted shares 2020 and 27 the stock
incentive and Commitments performed
under this incentive plan. The September ownership
commitment awardees
awardees undertake that if the 2021 incentives
Company cannot grant the rights
and interests or exercise the
arrangements for such rights and
interests due to false records,
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2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
misleading statements or material
omissions in the information
disclosure documents, the awardees
will return all the benefits obtained
from this incentive plan to the
Company after the relevant
information disclosure documents
are confirmed to contain false
records, misleading statements or
material omissions.
Has the
commitment
been
performed in Yes
time
(yes/no)
If the
performance
of the
commitment
is not
completed
within the
specified
period, Not applicable
please
provide
detailed
reasons and
the
follow-up
actions.
2. The Company made forecasts on the profitability of an asset or a project, and the reporting period was
part of the profit forecasting period. The Company made explanation on whether the profit of the
asset/project went as predicted and why.
□ Applicable √ Not applicable
II. Appropriation of Funds for Non-operating Purposes by Controlling Shareholder and
Other Related Parties
□ Applicable √ Not applicable
During the reporting period, there was no misappropriation of the listed company’s funds by its controlling
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2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
shareholder or other related parties for non-operating purposes.
III. Illegal External Guarantees
□ Applicable √ Not applicable
The Company did not provide any illegal external guarantee during the reporting period.
IV. The Board of Directors' Explanation to the Non-standard Audit Report for the Recent
Period
□ Applicable √ Not applicable
V. Explanation by the Board of Directors, the Board of Supervisors, and Independent
Directors, if Any, to the Non-standard Audit Report Issued by the Accounting Firm during
the Reporting Period
□ Applicable √ Not applicable
VI. Description of Any Changes in Accounting Policies and Accounting Estimates or
Corrections of Significant Accounting Errors over the 2020 Financial Report
□ Applicable √ Not applicable
The Company did not change accounting policies and accounting estimates or corrected any significant
accounting errors during the reporting period.
VII. Description of Any Changes in the Scope of Consolidated Statement over the 2020
Financial Report
√ Applicable □ Not applicable
Please see “VIII. Changes in the Scope of Consolidated Statement ” in "Section X Financial Report" for details.
VIII. Appointment and Dismissal of Accounting Firm
Accounting firm currently engaged by the Company
Name of the domestic accounting firm RSM Certified Public Accountants (Special General Partnership)
Payment to the domestic accounting firm (RMB10,000) 420
Years of provision of continued auditing services by the domestic
20
accounting firm
Practicing CPAs of the domestic accounting firm Zhang Liangwen, Yao Bei, and Ren Gangming
Years of provision of continued auditing services by practicing Zhang Liangwen-three years, Yao Bei-four years, and Ren
CPAs of the domestic accounting firm Gangming-one year
Change of the accounting firm during the reporting period (yes/no)
□ Yes √ No
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2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
Engagement of the accounting firm for internal control audit, financial advisor or sponsor
□ Applicable √ Not applicable
IX. De-listing after the Disclosure of the Annual Report
□ Applicable √ Not applicable
X. Bankruptcy and Reorganization
□ Applicable √ Not applicable
During the reporting period, the Company was not involved in any matters relating to bankruptcy and
reorganization.
XI. Material Legal Proceedings and Arbitrations
□ Applicable √ Not applicable
The Company was not involved in any material legal proceedings or arbitrations during the reporting period.
XII. Penalties and Rectifications
□ Applicable √ Not applicable
The Company was not subject to any penalties and did not make any rectifications during the reporting period.
XIII. Integrity of the Company and Its Controlling Shareholder and Actual Controllers
□ Applicable √ Not applicable
XIV. Significant Related-Party Transactions
1. Related-party transactions related to day-to-day operations
√ Applicable □ Not applicable
Percent
Pricing Exce
age in
princip Price of eding Related-
Content of Amo the Approved
Type of the le of the the party Market price
the unt amount transaction
Related Relatio related-part the related- appro transacti of accessible Disclosed Index to
related-part (RM of the amount
party nship y related- party ved on same kind of on disclosure
y B10, same (RMB10,0
transaction party transact amou settlemen transactions
transaction 000) kind of 00)
transac ion nt or t method
transact
tion not
ions
China Investo General Sale of The
Market 67,50 Bank 20 April
Mobile r with related-part goods and Nil 3.69% 65,000Yes Nil Announce
-set 7.73 transfer 2021
Limited signific y provision ment on
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2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
and its ant transaction of labor price Anticipate
subsidiar influen services d General
ies ce on Related-Pa
the rty
Compa Transactio
ny ns in 2021
(Announce
ment No.:
2021-030)
published
on 20 April
2021
The
Announce
ment on
Investo Anticipate
r with d General
China Purchase
signific Related-Pa
Mobile of goods
ant General-rel Market rty
Limited and 4,288 Bank 20 April
influen ated party -set Nil 0.58% 1,400Yes Nil Transactio
and its acceptance .16 transfer 2021
ce on transaction price ns in 2021
subsidiar of labor
the (Announce
ies services
Compa ment No.:
ny 2021-030)
published
on 20 April
2021
71,79
-- -- -- 66,400 -- -- -- -- --
Total 5.89
Details on return of sold goods in large
value Not applicable
Actual performance during the reporting
The total amount of general related-party transactions to do with China Mobile Limited and
period, if any, where the total amount of
its subsidiaries in 2021 was estimated at RMB664 million. Where, the actual amount
general related-party transactions to
arrived at RMB717.9589 million, RMB53.9589 million more than the estimated amount,
occur during the reporting period is
representing 0.43% of the Company's audited net assets in 2020.
estimated by category
Reasons for large difference between
the transaction price and the referential Not applicable
market price, if applicable
2. Related-party transactions arising from acquisition or sales of assets or equity
□ Applicable √ Not applicable
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2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
The Company did not engage in any related-party transactions arising from acquisition or sales of assets or equity
during the reporting period.
3. Related-party transactions in joint external investment
□ Applicable √ Not applicable
The Company did not conduct any related-party transactions in joint external investment during the reporting
period.
4. Related creditor's rights and debts
□ Applicable √ Not applicable
The Company did not have any related creditor's rights and debts during the reporting period.
5. Transactions with related finance companies
□ Applicable √ Not applicable
The Company did not have any deposit, loan, credit or other financial business with any related finance
companies 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 had have 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 the reporting period.
XV. Major Contracts and Fulfillment
1. Trust, sub-contract and lease
(1) Trust
□ Applicable √ Not applicable
The Company did not take any trust during the reporting period.
(2) Sub-contract
□ Applicable √ Not applicable
The Company did not conduct any contracting during the reporting period.
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2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
(3) Lease
□ Applicable √ Not applicable
The Company did not have any lease during the reporting period.
2. Material guarantees
√ Applicable □ Not applicable
Unit: RMB10,000
External guarantees by the Company and its subsidiaries (excluding guarantees to subsidiaries)
Date of
Guara
disclosure
Amount of Perform ntee
Name of of the Counter
Amount of Date of actual guarantee Guarantee Collatera Period of ance to a
the announcem guarantee
guarantee occurrence actually type l (if any) guarantee complet relate
guaranteed ent on the (if any)
provided ed or not d
guarantee
party
amount
or not
All
19 June 2020, Land use
financial
29 December Joint and right,
Financial leasing
25 October 2020, 30 several and 24 or 36
leasing 7,593.29 customers
2019 December 2020, liability houses months No No
customer provided
and 30 guarantee and
50,000 counter
November 2021 buildings
guarantee
Supply Joint and
chain several
25 October
financing liability Yes No
2019
customers guarantee
Tongling From the
Developm date of
Tongling
ent approval by
Tianyuan Joint and
14 June 2019 Investmen the Board of
Equity 19 April several
24,000 and 22 March 14,808 t Group Directors to
Investment 2019 liability No No
2021 Corporati the
Group guarantee
on expiration of
Corporation
provided the project's
counter loan term
guarantee
Total amount of Total amount of
74,000 18,393.13
approved external external guarantees
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2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
guarantees during the actually provided
reporting period (A1) during the reporting
period (A2)
Total amount of the
Total amount of
outstanding external
approved external
74,000 guarantees actually 22,401.29
guarantees at the end of
provided at the end of
the reporting period
the reporting period
(A3)
(A4)
Provision of guarantees by the Company to its subsidiaries
Date of
Guara
disclosure
Amount of ntee
Name of of the Counter Perform
Amount of Date of actual guarantee Guarantee Collatera Period of to a
the announcem guarantee, ance
guarantee occurrence actually type l, if any guarantee relate
guaranteed ent on the if any complet
provided d
guarantee ed or not
party
amount
or not
General
Anhui guarantee;
The next
Zhixue 20 April joint and
12,000 16 July 2021 3,341.94 twelve
Technology 2021 several No No
months
Co., Ltd. liability
guarantee
Hefei General
iFLYTEK guarantee;
The next
Read & 20 April joint and
10,000 16 July 2021 1,997.55 twelve
Write 2021 several No No
months
Technology liability
Co., Ltd. guarantee
General
Anhui 2021 年 04 guarantee;
2021 年 07 月 16 The next
Tingjian 月 20 日 joint and
10,000 日 3,447.76 twelve
Technology 20 April several No No
16 July 2021 months
Co., Ltd. 2021 liability
guarantee
Anhui General
iFLYTEK guarantee; The next
20 April
Jiecheng 15,000 16 July 2021 1,384.61 joint and twelve
2021 No No
Software several months
Technology liability
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2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
Co., Ltd. guarantee
General
guarantee;
iFLYTEK The next
20 April joint and
(Internation 30,000 twelve
2021 several No No
al) Limited months
liability
guarantee
General
Tianjin
guarantee;
iFLYTEK The next
20 April 10 December joint and
Jizhi 30,000 273.57 twelve
2021 2021 several No No
Technology months
liability
Co., Ltd.
guarantee
iFLYTEK General
(Internation guarantee;
The next
al) Limited 20 April joint and
8,000 24 May 2021 3,006.96 twelve
Iflytek 2021 several No No
months
(Internation liability
al) Limited guarantee
General
iFLYTEK guarantee;
The next
(Shanghai) 20 April joint and
3,000 30 July 2021 1.92 twelve
Technology 2021 several No No
months
Co., Ltd. liability
guarantee
General
Zhejiang
guarantee;
iFLYTEK The next
20 April joint and
Intelligent 3,000 17 September 364.98 twelve
2021 several No No
Technology 2021 months
liability
Co., Ltd.
guarantee
General
Anhui guarantee;
The next
Institute of 20 April joint and
10,000 22 June 2021 4,706.73 twelve
Information 2021 several No No
months
Technology liability
guarantee
General Till the 2021
Anhui
guarantee; Annual
Institute of 26
20,000 joint and General
Information September No No
several Meeting of
Technology 2021
liability the
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2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
guarantee Company
General Till the 2021
Hainan guarantee; Annual
26
Shenggu joint and General
September 1,200
Technology several Meeting of No No
2021
Co., Ltd. liability the
guarantee Company
iFLYTEK
South Asia
General
&
guarantee;
Southeast The next
20 April joint and
Asia 2,000 twelve
2021 several No No
Information months
liability
Technology
guarantee
(Yunnan)
Co., Ltd.
General Till the 2021
Shenzhen
guarantee; Annual
iFLYTEK 26
joint and General
Interactive September 10,000
several Meeting of No No
Electronics 2021
liability the
Co., Ltd.
guarantee Company
General
Tianjin
guarantee;
iFLYTEK The next
20 April joint and
Information 3,000 twelve
2021 several No No
Technology months
liability
Co., Ltd.
guarantee
General
Anhui guarantee;
The next
iFLYTEK 20 April 14 September joint and
10,000 575.98 twelve
Healthcare 2021 2021 several No No
months
Co., Ltd. liability
guarantee
General
guarantee;
Bills pool The next
20 April 14 September joint and
pledge 50,000 32,054.59 twelve
2021 2021 several No No
business months
liability
guarantee
Total amount of Total occurrence
227,200 57,421.52
approved guarantees amount of guarantees
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2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
provided to subsidiaries provided to
during the reporting subsidiaries during the
period (B1) reporting period (B2)
Total occurrence
Total amount of
amount of guarantees
approved guarantees
actually provided to
provided to subsidiaries 227,200 51,156.59
subsidiaries at the end
at the end of the
of the reporting period
reporting period (B3)
(B4)
Provision of guarantees by the subsidiaries to other subsidiaries
Date of Guara
disclosure ntee
Amount of
Name of of the Counter Perform to a
Guaranteed guarantee Guarantee Collatera Period of
the announcem Date of actual guarantee, ance relate
Limit actually type l, if any guarantee
guaranteed ent on the occurrence if any complet d
provided
guarantee ed or not party
amount or not
Total amount of the Company's guarantees (the sum of the first three items)
Total amount of
Total amount of approved guarantees actually
guarantees during the reporting 301,200 provided during the 75,814.65
period (A1+B1+C1) reporting period
(A2+B2+C2)
Total amount of the
outstanding
Total amount of approved
guarantees actually
guarantees at the end of the 301,200 73,557.88
provided at the end of
reporting period (A3+B3+C3)
the reporting period
(A4+B4+C4)
Percentage of the total amount of actual guarantees
4.38%
(A4+B4+C4) in the Company's net assets
3. Entrustment of others for cash assets management
(1) Entrusted wealth management
□ Applicable √ Not applicable
The Company did not entrust any wealth management during the reporting period.
(2) Entrusted loan
□ Applicable √ Not applicable
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2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
The Company did not have any entrusted loan during the reporting period.
4. Other major contracts
□ Applicable √ Not applicable
The Company did not have any other major contracts during the reporting period.
XVI. Explanations about Other Significant Events
√ Applicable □ Not applicable
(i). Private offering of stocks in 2021
According to the Approval of the Non-public Offering of Shares by iFLYTEK Co., Ltd. (Z.J.X.K.[2021] No.
1769) issued by the China Securities Regulatory Commission, the Company was granted an approval of privately
offering no more than 75,938,058 new shares, and the number of shares to be issued might be adjusted
accordingly in the event of a change in the total share capital under the strengthening of share capital and other
circumstances. After the implementation of the Company's 2020 interests distribution plan, the number of shares
in this non-public offering was changed from no more than 75,938,058 shares (inclusive) to no more than
76,393,048 shares. The Company received the confirmation of acceptance of the registration application for
additionally issued shares in this non-public offering from China Securities Depository & Clearing Corporation
Ltd. Shenzhen Branch on 12 July 2021, and the shares issued were registered and listed on 19 July 2021.
Through this issuance, firstly, the Company replenished its liquidity, helping it actively grasp the
opportunities of the times and strategic opportunities in the AI industry to consolidate and enhance its position in
the industry, and also boost its sustainable profitability and core competitiveness; and secondly, shares were issued
to Mr. Liu Qingfeng, the actual controller of the Company, and Anhui Yanzhi Technology Co., Ltd. controlled by
Mr. Liu. In this way, Mr. Liu Qingfeng would share weal and woe with the Company over a long term. Through
subscription to shares in this non-public offering, the shareholding ratio of Mr. Liu Qingfeng and the proportion of
voting rights controlled by the actual controller of the Company were enlarged, which further enhanced the
stability of the control over the Company and consolidated the control position of the actual controller. In the
meanwhile, the actual controller's subscription to shares privately issued by the Company demonstrated his firm
confidence in the AI industry and the Company's future development prospects, thus benefiting the long-term
stable development of the Company.
(ii) Proposed spin-off and listing of iFLYTEK Healthcare, a controlled subsidiary
According to the overall strategic layout of the Company, in view of the healthy and sound development of
Anhui iFLYTEK Healthcare Co., Ltd. ("iFLYTEK Healthcare"), a subsidiary controlled by the Company, the
Company held the Sixteenth Meeting of the Fifth Board of Directors on 3 August 2021, which reviewed and
approved the Proposal on Spin-off and Listing of a Controlled Subsidiary, a move intended to accelerate
iFLYTEK Healthcare's development and iterations of products and services, and help it grow business rapidly by
responding flexibly to market changes and seizing market opportunities. The Board of Directors agreed to plan for
the spin-off and listing of iFLYTEK Healthcare, a subsidiary controlled by the Company (hereinafter referred to as
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2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
the "spin-off and listing"). After the completion of the spin-off and listing, the Company will maintain a
controlling interest in iFLYTEK Healthcare.
(iii). The Stock Option and Restricted Stock Incentive Plan in 2021
On the premise of fully protecting the interests of shareholders, the Company incorporates long-term
incentives into total compensation management as a normalized measure, for purposes of further improving the
corporate governance structure, mobilizing the whole team to work hard together, establishing a sound long-term
effective incentive mechanism, attracting and retaining outstanding talents through the implementation of stock
ownership incentives that match the intensity of industrial competition, fully stimulating the enthusiasm of
management members and core technical/business personnel, effectively combining the interests of shareholders,
the Company's interests and the personal interests of core and key employees, and focusing the attention of all
parties on the long-term development of the Company. The Company held the Eighteenth Meeting of the Fifth
Board of Directors on 26 September 2021 and the Second Extraordinary Shareholders’ Meeting in 2021 on 13
October 2021, both of which reviewed and approved the Stock Option and Restricted Stock Incentive Plan in 2021
(Draft) and related proposals. Please see Section IV of this report for details.
XVII. Significant Events of the Company's Subsidiaries
√ Applicable □ Not applicable
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2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
Section VII Changes in Shares and Particulars of Shareholders
I. Changes in Shares
1. Changes in shares
Unit: Share
Before the change Increase/decrease (+, -) After the change
Shares
transferred
Issuance of Bonus
Percentage from
Number new shares shares Other Subtotal Number Percentage
capital
reserve
I. Shares subject to
198,261,755 8.91% 100,642,248 -54,417,273 46,224,975 244,486,730 10.52%
selling restrictions
1. State-owned
shares
2. Shares held by
state-owned legal
persons
3. Shares held by
198,061,755 8.90% 100,462,248 -54,357,273 46,104,975 244,166,730 10.51%
other domestic
investors
Including:
shares held by
5,991,611 5,991,611 5,991,611 0.26%
domestic legal
persons
Shares held
198,061,755 8.90% 94,470,637 -54,357,273 40,113,364 238,175,119 10.25%
by domestic natural
persons
4. Shares held by 200,000 0.01% 180,000 -60,000 120,000 320,000 0.01%
foreign investors
Including:
shares held by
foreign legal persons
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2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
Shares held
by foreign natural 200,000 0.01% 180,000 -60,000 120,000 320,000 0.01%
persons
II. Shares not subject 2,080,287,81
2,026,475,962 91.09% 53,811,853 53,811,853 89.48%
to selling restrictions 5
2,080,287,81
2,026,475,962 91.09% 53,811,853 53,811,853 89.48%
1.RMB-denominated 5
ordinary shares
2. Domestically
listed foreign shares
3. Overseas
listed foreign shares
4. Others
III. Total number of 100,036,82 2,324,774,54
2,224,737,717 100.00% 100,642,248 -605,420 100.00%
shares 8 5
Reason for share change
√ Applicable □ Not applicable
The share change was a result of the automatic adjustment to the locked-up shares of senior management
members at the beginning of each year, the listing of shares privately offered in 2021, the listing of shares granted
under the Stock Option and Restricted Stock Incentive Plan in 2021, the removal of restriction upon sales for the
third removal period under the first-phase restricted stock incentive plan, the removal of restriction upon sales for
the first removal period under the second-phase restricted stock incentive plan, and the repurchase and
cancellation of part of the restricted stocks already granted.
Approval of share change
√ Applicable □ Not applicable
The non-public offering of stocks by the Company in 2021 was approved at the Ninth and the Thirteenth
Meeting of the Fifth Board of Directors of the Company and the First Extraordinary Shareholders’ Meeting of the
Company in 2021; the repurchase and cancellation of part of the restricted stocks already granted was approved at
the Twelfth Meeting of the Fifth Board of Directors of the Company and the Annual General Meeting of the
Company for 2020; the removal of restriction upon sales for the third removal period under the first-phase
restricted stock incentive plan was approved at the Twelfth and the Fifteenth Meeting of the Fifth Board of
Directors of the Company; the removal of restriction upon sales for the first removal period under the
second-phase restricted stock incentive plan was approved at the Twentieth Meeting of the Fifth Board of
Directors of the Company; and the matters relating to the Stock Option and Restricted Stock Incentive Plan in
2021 were approved at the Eighteenth and the Nineteenth Meeting of the Fifth Board of Directors of the Company
and the Second Extraordinary Shareholders’ Meeting of the Company in 2021.
Ownership transfer in respect of share change
√ Applicable □ Not applicable
Upon review and confirmation by China Securities Depository & Clearing Corporation Ltd. Shenzhen Branch,
the Company completed the repurchase and cancellation of 605,420 shares of restricted stocks already granted on
133
2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
28 May 2021. Following the repurchase and cancellation, the total number of shares of the Company was changed
to 2,224,132,297 from 2,224,737,717. The Company registered the shares it privately offered in 2021 with China
Securities Depository & Clearing Corporation Ltd. Shenzhen Branch, and the newly increased 76,393,048 shares
were listed officially on 19 July 2021, following which the total number of shares of the Company was changed to
2,300,525,345 from 2,224,132,297. Under the Stock Option and Restricted Stock Incentive Plan in 2021, the
Company granted 24,249,200 shares to 2,240 people. The granted shares got listed on 15 December 2020 after
being reviewed and confirmed by China Securities Depository & Clearing Corporation Ltd. Shenzhen Branch.
After the grant of these restricted stocks, the Company increased the total number of its shares to 2,324,774,545
from 2,300,525,345.
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, and other financial indicators in the past year/period
√ Applicable □ Not applicable
During the reporting period, non-public offering increased the Company's shares by 76,393,048, the repurchase
and cancellation of some restricted stocks already granted reduced shares by 605,420, and the Company granted
24,249,200 shares under the Stock Option and Restricted Stock Incentive Plan in 2021. The above factors
combined to make the closing balance of shares 100,036,828 more than the opening balance, which diluted basic
earnings per shares and diluted earnings per share, and net assets per share attributable to ordinary shareholders of
the Company in the period.
Other content deemed necessary by the Company or required by the securities regulatory authority to disclose
□ Applicable √ Not applicable
2. Changes in shares subject to selling restrictions
√ Applicable □ Not applicable
Unit: Share
Balance
Balance of
of shares
shares
Increase of subject
subject to Number of
shares to the
the restricted
Name of subject to restrictio Reason for the
restriction shares Date of relieve
shareholder the n on restriction
on sales at relieved in
restriction sales at
the 2021
on sales the end
beginning of
of the
the period
period
778 people The third sale restriction removal period:
For stock
rewarded for the From the first trading day 48 months after the
36,134,700 -281,520 35,853,180 0 ownership
first time under first day of grant to the last trading day
incentive
the first-phase within 60 months as of the day of grant. The
134
2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
restricted stock number of relieved shares was 40% of the
incentive plan number of restricted stocks granted. The
stocks relieved this time were put into
circulation on 20 May 2021.
The third sale restriction removal period:
367 people
From the first trading day 36 months after the
rewarded with the
first day of grant to the last trading day
reserved stocks For stock
within 48 months as of the day of grant. The
under the 3,730,200 -91,800 3,638,400 0 ownership
number of relieved shares was 40% of the
first-phase incentive
number of restricted stocks granted. The
restricted stock
stocks relieved this time were put into
incentive plan
circulation on 17 August 2021.
The first sale restriction removal period:
From the first trading day 12 months after the
first day of grant to the last trading day
within 24 months as of the day of grant. The
number of relieved shares was 30% of the
number of restricted stocks granted, and they
were in circulation on 15 December 2021.
1,900 people The second sale restriction removal period:
rewarded under For stock From the first trading day 24 months after the
18,777,6
the second-phase 26,864,800 -232,100 7,855,020 ownership first day of grant to the last trading day
80
restricted stock incentive within 36 months as of the day of grant. The
incentive plan number of relieved shares was 30% of the
number of restricted stocks granted. The third
sale restriction removal period: From the first
trading day 36 months after the first day of
grant to the last trading day within 48 months
as of the day of grant. The number of relieved
shares was 40% of the number of restricted
stocks granted.
The stocks privately offered this time were
Additional issue subject to a lock-up period of 18 months, and
70,401,43 70,401,4
Liu Qingfeng of 70,401,437 they are expected to circulate on 19 January
7 37
restricted stocks 2023 starting from the first day of listing on
19 July 2021.
The stocks privately offered this time were
5,991,611
Anhui Yanzhi subject to a lock-up period of 18 months, and
5,991,61 Additional issue
Technology Co., 0 5,991,611 0 they are expected to circulate on 19 January
1 of 5,991,611
Ltd. 2023 starting from the first day of listing on
restricted stocks
19 July 2021.
2,240 people 24,249,20 24,249,2 For stock The first sale restriction removal period:
0 0
rewarded under 0 00 ownership From the first trading day 12 months after the
135
2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
the Stock Option incentive first day of grant to the last trading day
and Restricted within 24 months as of the day of grant. The
Stock Incentive number of relieved shares was 30% of the
Plan in 2021 number of restricted stocks granted, and they
were expected to begin circulation on 15
December 2021. The second sale restriction
removal period: From the first trading day 24
months after the first day of grant to the last
trading day within 36 months as of the day of
grant. The number of relieved shares was
30% of the number of restricted stocks
granted. The third sale restriction removal
period: From the first trading day 36 months
after the first day of grant to the last trading
day within 48 months as of the day of grant.
The number of relieved shares was 40% of
the number of restricted stocks granted.
On the first trading day of each year, CSDC
Shenzhen Branch calculates the statutory
Directors, Locked-up
number of shares transferable by the listed
supervisors and 125,066, shares of senior
131,532,055 6,465,253 company's directors, supervisors and senior
senior 802 management
management members in the year at 25% of
management members
the number of shares registered under them
members
on the last trading day of the prior year.
100,036,8 244,486,
198,261,755 53,811,853 -- --
Total 28 730
II. Details of Securities Issuance and Listing
1. Securities issuances (excluding preference shares) during the reporting period
√ Applicable □ Not applicable
Issuing Number End date
Name of the
price (or Number approve of
stock and its Issuing date Listing date Index to disclosure
interest issued d for transacti Disclosed on
derivative
rate) trading ons
Stock
The Report on the Listing of
Privately Offered Stocks &
RMB-denomi
also the Announcement on
nated 06 July 2021 33.38 76,393,048 19 July 2021 16 July 2021
Listing (Summary)
ordinary
(Announcement No.:
shares (A
2021-058) published on the
136
2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
share) Securities Times, the China
Securities Journal, the
Shanghai Securities News, the
Securities Daily and CNINFO
(www.cninfo.com.cn)
The Announcement on
Completion of Grant of
Restricted Stocks under the
Stock Option and Restricted
RMB-denomi
Stock Incentive Plan in 2021
nated
30 November 15 (Announcement No.: 14 December
ordinary 26.48 24,249,200
2021 December 2021-100) published on the 2021
shares (A
2021 Securities Times, the China
share)
Securities Journal, the
Shanghai Securities News, the
Securities Daily and CNINFO
(www.cninfo.com.cn)
Notes to securities issuances (excluding preference shares) during the reporting period
The shares issued during the reporting period were the ordinary A shares of the Company issued to Liu
Qingfeng and Anhui Yanzhi Technology Co., Ltd. in the Company's non-public offering of stocks in 2021 and the
ordinary A shares of the Company issued to specified targets under the Stock Option and Restricted Stock
Incentive Plan in 2021.
2. Explanation on the Company's Total Shares and Changes in Its Shareholder Structure, as Well as
Changes in Its Balance Sheet Structure
√ Applicable □ Not applicable
During the reporting period, non-public offering increased the Company's shares by 76,393,048, the
repurchase and cancellation of some restricted stocks already granted reduced shares by 605,420, and the
Company granted 24,249,200 shares under the Stock Option and Restricted Stock Incentive Plan in 2021. The
above factors combined to make the closing balance of shares 100,036,828 more than the opening balance. As of
the end of the reporting period, the Company had 2,324,774,545 shares as share capital; it had total assets of
RMB31,394,037,754.41 and a gearing ratio of 44.78%.
3. Existing internal employee stocks
□ Applicable √ Not applicable
137
2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
III. Shareholders and Actual Controllers
1. Number and shareholding of shareholders of the Company
Unit: Shares
Total number of
holders of
Total number
Total number of preference
of ordinary
Total number holders of shares with
shareholders at
of ordinary preference shares voting rights
the end of the
shareholders at with voting rights resumed at the
237,966 last month 222,631 0 0
the end of the resumed at the end end of the last
before the
reporting of the reporting month before
disclosure of
period period, if any (see the disclosure of
the Annual
Note 8) the Annual
Report
Report (if any)
(see Note 8)
Shareholding by shareholders that hold more than 5% of the shares of the Company or by the largest 10 shareholders
Increase/dec Pledged, marked or frozen
Number of Number of
Shares held rease of shares
Sharehol held shares held shares
at the end of shares held
Name of Nature of ding subject to not subject
the reporting during the
shareholder shareholder ratio selling to selling
period reporting
restrictions restrictions Status of shares Number
period
China Mobile State-owned
10.66% 247,714,216 -10,253,200 247,714,216
Limited legal person
Domestic
7.24% 168,253,267 70,401,437 143,790,309 24,462,958 82,360,000
Liu Qingfeng natural person Pledged
Hong Kong
Securities
Foreign legal 5.23% 121,625,705 22,121,985 121,625,705
Clearing
person
Company Limited
USTC Holdings
State-owned 3.59% 83,497,837 83,497,837
Co., Ltd.
legal person
Domestic
Anhui Yanzhi
non-state-own
Technology Co., 2.46% 57,291,611 5,991,611 5,991,611 51,300,000 Pledged 5,991,611
ed legal
Ltd.
person
Foreign
2.15% 49,999,900 47,499,900 49,999,900
Zhang Wei natural person
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2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
Domestic
2.01% 46,733,956 46,733,956
Wang Ping natural person
Domestic
1.70% 39,596,000 -11,273,407 39,596,000
Ge Weidong natural person
Domestic
1.32% 30,716,902 -2,035,000 30,716,902
Wang Renhua natural person
Domestic
0.78% 18,033,790 13,525,342 4,508,448
Wu Xiaoru natural person
Strategic investors or general
legal persons became the largest As a strategic investor, China Mobile Limited subscribed for 70,273,975 shares in the non-public
10 shareholders as a result of offering in 2013. Subject to a lock-up period of 36 months, these shares went in circulation on
allotment of new shares, if any 25 April 2016.
(see Note 3)
Of the above-mentioned shareholders, Mr. Liu Qingfeng becomes the Company's actual
Note on connected relations or controller as a result of his signing of the Acting-in-Concert Agreement with USTC Holdings
concerted actions of the above Co., Ltd.; Anhui Yanzhi Technology Co., Ltd. is a company controlled by Mr. Liu Qingfeng.
shareholders: Save as disclosed above, the Company is not aware of any connected relation or concerted
action among the other shareholders.
On 26 December 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
Explanation on the above
by them at iFLYTEK, for a term starting from the date of signing of such agreement to the date
shareholders' involvement in
when the principals no longer held any shares of iFLYTEK. On 9 April 2019, Liu Qingfeng
entrusting its or being entrusted
signed the Power of Attorney with the principals Nie Xiaolin, Hu Guoping and Yang Jun,
with voting right, and waiver of
agreeing that Nie Xiaolin, Hu Guoping and Yang Jun would delegate to Liu Qingfeng the
its voting right
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 and Wu Xiaoru have entrusted Liu Qingfeng to exercise their voting rights.
Shareholding by the largest 10 holders of shares not subject to selling restrictions
Number of held shares not subject to selling restrictions at the Type of shares
Name of shareholder end of the reporting period
Type of shares
Number
RMB-denomina
China Mobile Limited 247,714,216 ted ordinary 247,714,216
shares
Hong Kong Securities Clearing RMB-denomina
121,625,705 121,625,705
Company Limited ted ordinary
139
2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
shares
RMB-denomina
USTC Holdings Co., Ltd. 83,497,837 ted ordinary 83,497,837
shares
RMB-denomina
Anhui Yanzhi Technology Co.,
51,300,000 ted ordinary 51,300,000
Ltd.
shares
RMB-denomina
49,999,900 ted ordinary 49,999,900
Zhang Wei
shares
RMB-denomina
46,733,956 ted ordinary 46,733,956
Wang Ping
shares
RMB-denomina
39,596,000 ted ordinary 39,596,000
Ge Weidong
shares
RMB-denomina
30,716,902 ted ordinary 30,716,902
Wang Renhua
shares
RMB-denomina
24,462,958 ted ordinary 24,462,958
Liu Qingfeng
shares
RMB-denomina
Cathay Fortune Corporation 16,745,917 ted ordinary 16,745,917
shares
Explanation on connection or
acting-in-concert relationship
among the largest 10 holders of
Mr. Liu Qingfeng becomes the Company's actual controller as a result of his signing of the
floating shares not subject to
Acting-in-Concert Agreement with USTC Holdings Co., Ltd.; Anhui Yanzhi Technology Co.,
selling restrictions, between the
Ltd. is a company controlled by Mr. Liu Qingfeng. Save as disclosed above, the Company is not
largest 10 holders of floating
aware of any connected relation or concerted action among the other shareholders.
shares not subject to selling
restrictions and the largest 10
shareholders
Zhang Wei held 2,799,900 shares of the Company's stock (0 shares at the beginning of the
Explanation on participation of period) through an ordinary securities account and 47,200,000 shares of the Company's stock
the largest 10 ordinary (2,500,000 shares at the beginning of the period) through an unsecured securities account; Wang
shareholders into the securities Ping held 46,733,956 shares (46,733,956 shares at the beginning of the period) through an
margin trading business, if any unsecured securities account; Ge Weidong held 21,596,000 shares of the Company's stock
(see Note 4) (20,019,407 shares at the beginning of the period) through an ordinary securities account and
18,000,000 shares of the Company's stock (30,850,000 shares at the beginning of the period)
140
2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
through an unsecured securities account; Cathay Fortune Corporation held 16,745,917 shares of
the Company's stock (0 shares at the beginning of the period) through an unsecured securities
account.
Whether the largest 10 ordinary shareholders and the largest 10 holders of ordinary shares not subject to selling
restrictions of the Company engaged in repurchase agreement transactions during the reporting period
□ Yes √ No
The largest 10 ordinary shareholders and the largest 10 holders of ordinary shares not subject to selling restrictions
of the Company did not engage in repurchase agreement transactions during the reporting period.
2. Controlling shareholder of the Company
Nature of the controlling shareholder: No controlling entity
Type of the controlling shareholder: No
Explanation on the fact that the Company does not have a controlling shareholder:
The Company features decentralized shareholdings. No single shareholder can exercise control over the
Company.
Changes in controlling shareholders during the reporting period
□ Applicable √ Not applicable
The Company's controlling shareholders did not change during the reporting period.
3. Actual controllers of the Company and their persons acting in concert
Nature of the actual controllers: domestic natural person; other domestic entity
(1) Type of the actual controller: natural person
Relationship with the Residence in other country/territory
Name of the actual controller
actual controller Nationality obtained (yes/no)
Liu Qingfeng Himself Chinese No
Founder and Chairman of iFLYTEK, Director of the National Engineering
Laboratory for Speech and Language Information Processing (NELSLIP), Adjunct
Professor and Doctoral Supervisor at the University of Science and Technology of
China, Deputy to China’s 0th, 11th, 12th and 13th National People’s Congress,
Occupation and position
Chairperson of the Speech Industry Alliance of China, and Chairperson of the
Artificial Intelligence Industry-University-Research Innovation Alliance of the
Chinese Academy of Sciences.
Chinese and foreign listed companies
controlled over the past 10 years No
(2) Type of the actual controller: legal person
Legal
Date of incorporation Organizational code Main business
Name of the actual representative or
141
2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
controller person-in-charge
Commercialization and promotion
of scientific and technological
USTC Holdings Co., Ltd. 23 March 1988 913401001491854105 achievements, high-tech business
Wang Bing
incubation, investment
management, and asset operation.
Equity interests in other
Chinese and foreign listed USTC Holdings Co., Ltd. is the actual controller of QuantumC Tek Co., Ltd. ("QuantumC"), directly
companies controlled by holding 13.50% of the shares of QuantumC and controlling 8.26% of the voting shares of QuantumC
the actual controller through the proxy of Pan Jianwei, combining to 21.76% of the voting shares of QuantumC (data from
during the reporting QuantumC's 2020 annual report).
period
Changes in the actual controllers during the reporting period
□ Applicable √ Not applicable
The Company's actual controllers did not change during the reporting period.
Block diagram of ownership and control relationships between the Company and its actual controllers
Control of the Company by the actual controller via trust or other asset management method
□ Applicable √ Not applicable
4. Shares accumulatively pledged by the Company's controlling shareholder or largest shareholder and its
persons acting in concert accounting for 80% of the total number of shares held by them in the Company
□ Applicable √ Not applicable
5. Other corporate shareholders holding more than 10% shares
√ Applicable □ Not applicable
Name of Date of Registered
corporate Legal incorporatio capital (in Main business or management activities
shareholder representative n RMB10,000
142
2021 Annual Report of iFLYTEK CO., LTD. (English Simplified Version)
or )
person-in-char
ge
Operation of the Global System for Mobile Communications (GSM)
services; IP telephony services; Internet access services, and Internet
backbone data transmission services; design of investment in and
construction of mobile communications, IP telephony and Internet
networks; installation, construction and maintenance of mobile
communications, IP telephony and Internet facilities; operation of
system integration, roaming settlement and clearing, technology
development, technical services, advertising business, and equipment
China Mobile 27 February sales related to mobile communications, IP telephony and Internet
164,184.83
Limited Yang Jie 2004 services, as well as other telecommunications and information
services; sale and lease of mobile phone terminal equipment, IP phone
equipment, Internet equipment and accessories, and provision of
relevant after-sales service; business training, and conference services;
accommodation (student accommodation) (the operation limited to
branches); catering services, and swimming pools (the operation
limited to branches). (In respect of the items that need to be approved
according to law, relevant activities shall be carried out only after
being approved by the competent department.)
6. Restrictions on reduction of shares held by the controlling shareholder, actual controllers, restructuring
party and other commitment makers
□ Applicable √ Not applicable
IV. Specific Implementation of Share Repurchases during the Reporting Period
Implementation progress of share repurchase
□ Applicable √ Not applicable
Implementation progress of reduction of repurchased shares via centralized bidding
□ Applicable √ Not applicable
143
