---
title: "Earnings | iFlytek 2023: AI-Driven Growth and an Innovation Ecosystem"
author: "Unique Research"
sourcePublication: "Unique Research (FFCAP English library)"
originalPublishedAt: "2024-06-25T16:00:00+08:00"
canonical: "https://ffcap.cn/en/research/20240625a060dh00"
source: "https://ffcap.cn/en/research/20240625a060dh00"
language: "en"
cnSourceUrl: "https://view.inews.qq.com/a/20240625A060DH00"
---

# Earnings | iFlytek 2023: AI-Driven Growth and an Innovation Ecosystem

_Unique Research · Earnings analysis · June 25, 2024 · Author (CN): Hong An_

On **April 23, 2024**, iFlytek (SZSE: 002230) reported full-year **2023** results (CN source mislabels the filing year in one line; figures below are the 2023 annuals as stated).

## Headline numbers

-   Revenue **¥19.650B**, +4.41% YoY; gross profit ~¥11.267B; gross margin **42.66%**
-   Net profit attributable to parents **¥657M**, +17.12% YoY
-   Operating cash flow (full year) **¥350M**; Q4 alone >¥1.5B
-   Market cap cited >¥100B; listed Shenzhen 2008; founded 1999

iFlytek positions as an Asia-Pacific leader in speech and AI — voice, vision, NLP, cognitive intelligence — hosting China’s only National Key Lab of Cognitive Intelligence and the National Engineering Research Center for Speech & Language Information Processing.

## Segment read

Open platform & consumer, automotive intelligent connectivity, healthcare, and smart finance all grew YoY: **+33.28% / +49.71% / +15.41% / +23.01%** to ¥6.185B / ¥696M / ¥540M / ¥289M. Among ≥10% revenue/profit products: education ¥5.56B (−9.7%, GM 56.59%); open platform ¥3.938B (+41.61%, GM 21.35%); carrier-related ¥2.096B (−0.05%, GM 45.37%). Alternate cut: education ¥5.851B (−8.86%); auto the fastest grower at +49.71% to ¥696M. North China ¥9.71B (49.41% of sales); overseas +26.08% to ¥120M.

Spark Cognitive LLM powered the open platform: **647** AI capabilities/solutions; **\>5.78M** developer teams (+52%). From Spark’s May 6 launch through year-end: **+1.676M** developers YoY +229%; LLM developers **\>350k**; native apps such as iFlytek Zhiwen, Spark Content Ops Master, and doc Q&A. Lingyang industrial internet + Spark industrial model: users +59% and enterprise service calls +88% within a month of launch.

Profit quality: non-GAAP net profit −71.74% as non-recurring income rose 276%. Operating cycle 249.44 → 284.73 days; AR days 165.99 → 201.84; inventory turns 4.31 → 4.34. Current/quick ratios stable; debt/assets 48.73% → 53.13% on higher long-term borrowing. Quarterly revenue ¥2.888B / 4.954B / 4.772B / 7.04B; attributable profit −¥57.895M / 131M / 25.79M / 558M.

## 2024 Q1 and management color

Q1 2024: revenue ¥3.646B (+26.28%); attributable loss ¥300M (vs −¥58M); non-GAAP loss ¥441M (vs −¥338M). R&D ¥842M (+18.68%); investment gains on Sanrenxing / Cambricon etc. ¥134M, down ~¥123M YoY; GM 38.06% (−3.82 ppt). Chairman **Liu Qingfeng**: losses from heavier market spend (“2023 Spark year one; 2024 Spark prairie fire”) plus clearing financial stakes after last year’s mark-ups, on top of model R&D.

## AI product build — Spark timeline

Oct 2023 with Huawei: **Feixing-1**, claimed first domestic 10k-card cluster for trillion-param training. **Spark V3.5** (Jan 30, 2024) trained on that stack: language/math/voice claimed above GPT-4 Turbo; code ~96% of GPT-4 Turbo; multimodal ~91% of GPT-4V; speech LLM beats Whisper V3 on first 37 languages; 40-language TTS MOS +0.25; ultra-human TTS MOS 4.5 / >83% human-likeness. Third-party tops cited: Xinhua Academy, MIT Tech Review China “smartest,” State Council DRC institute; CAICT trusted AIGC full pass / 4+ grade.

Release cadence: May 6, 2023 Spark launch (seven core capabilities); Jun 9 V1.5 + Spark App five-end + assistants; Aug 15 V2.0 code/multimodal; Oct 24 V3.0 vs GPT-3.5 (CN ahead / EN comparable on 48 tasks). Open platform: +1.676M developers; 27k assistant developers / 49k assistants; 100k+ enterprise customers experiencing Spark apps; industry models with Chery, CPIC, Bank of Communications, China Energy, China Mobile. Jan 30 also: open-source Spark-13B kit for domestic compute. 2023 R&D ¥3.837B (19.53% of revenue vs 17.83%); CFO Jiang Tao: bulk on Spark.

“Platform + tracks”: education, healthcare, smart city, carriers, auto, finance — with consumer hardware (study machines, office pads, recorders, translators, hearing aids, iFlytek Tingjian). Strategy **1+N**: one general cognitive base + N industry models.

## Spring update & V4.0 teaser

Apr 26 Spark V3.5 spring update: long text/image/audio; first image-text recognition model; multi-emotion ultra-human TTS + one-shot voice clone; Spark Agent platform for enterprise last-mile. Spark App Android downloads **\>96M** (claimed #1 among domestic general tool LLM apps); +550k verified developers after V3.5, >half from enterprises. Liu: **Spark V4.0 targeted for June 27**.

_11 CN charts/images; attach on ingest. CN typo “2022 financial report” in lead kept as editorial note — numbers are 2023 annuals._

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Editorial English edition published on UniqueCapital: https://ffcap.cn/en/research/20240625a060dh00
On-site reading page: https://ffcap.cn/en/research/20240625a060dh00