The total revenue of iFlytek in 2021 reached CNY 18.314 billion (USD 2.876 billion), a year-on-year increase of 40.61%, and the net income is CNY 1.556 billion, up 14.13% from the same period the previous year. Around 50% of total revenue came from the “Base Business.”
iFlytek (Chinese: 科大讯飞), a partially state-owned Chinese artificial intelligence company, released a statement in response to investor concerns on April 11.
According to the statement, titled “Announcement on Voluntary Information Disclosure of Operating Conditions and Active Response to Investors’ General Concerns,” the company’s 2021 total revenue reached CNY 18.314 billion (USD 2.876 billion), 40.61% more than the previous year.
Its net income increased 14.13% to CNY 1.556 billion. Fifty percent of the company’s total revenue comes from the its so-called “Base Business.”.
iFlytek raised R&D expenses by CNY 628 million in 2021, and the total R&D expenses reached CNY 2.839 billion, an expansion of 28.43% year-over-year. In the corresponding period, the company added 3,301 employees.
In February 2021, iFlytek announced the goals to achieve during the 14th Five-Year Plan (2021–2025), the plan for national economic and social development of China. The goal includes one billion users, CNY 1 hundred billion income, and an ecosystem worth CNY 1 trillion.
iFlytek’s goal is to implement a dual-pronged strategy, consisting of “Base Business” and “Systematic Innovation.” Based on iFlytek’s explanation, “Base Business” means the businesses that can truly create long-term value in various industries. Currently iFlytek spans education, smart city, consumer-oriented, medical, auto, and telecom operator businesses.
According to a company announcement, Base Business has four evaluation standards which are good user dependence, long-term operating capability, sustainable growth potential, and industry demonstration value.
In February, Liu Qingfeng, founder and chairman of iFlytek, predicted that iFlytek’s “Base Business” would become profitable in 2022, with an expected growth rate of more than 60%.