IFLYTEK(002230)2024-04-22 13:21AI Model Development and Upgrades - The company launched the "iFlytek Spark Cognitive Model" (iFlytek Spark) in 2023, aiming to "liberate productivity and unleash imagination," marking a significant step in the era of general artificial intelligence[2] - iFlytek Spark has been upgraded four times throughout the year, reflecting the company's 24-year commitment to advancing cognitive intelligence, including semantic understanding since 2011 and the iFlytek Brain project since 2014[3] - The company's AI model "Spark" has seven core capabilities including text generation and logical reasoning[11] - The "Xunfei Superbrain 2030 Plan" aims to develop a self-evolving AI system with capabilities surpassing human perception[10] - iFlytek Spark V3.5 model's language understanding, math, and voice interaction capabilities surpass GPT-4 Turbo, with code reaching 96% of GPT-4 Turbo and multimodal understanding reaching 91% of GPT-4V[33] - iFlytek Spark V3.5 model's multilingual speech recognition outperforms OpenAI Whisper V3 in 37 mainstream languages, with an average MOS score improvement of 0.25 in 40 languages and a MOS score of 4.5 for ultra-realistic speech synthesis[33] - The company officially launched the Spark Cognitive Large Model on May 6, 2023, which has become the foundational platform for AI industrialization[31] - The Spark Cognitive Large Model follows a "1+N" layout, with "1" representing the general cognitive intelligence model and "N" representing industry-specific models applied in education, healthcare, automotive, office, industrial, and smart hardware sectors[32] Industry Applications of AI - In the automotive industry, the "Spark Smart Cockpit" has been applied to over 60 overseas models, supporting 23 languages to enhance the competitiveness of Chinese cars in international markets[4] - In the energy sector, iFlytek Spark has been implemented at China National Coal Group, significantly improving procurement efficiency and quality through intelligent solutions[4] - The company's AI programmers have been deployed in over 100 enterprises, including JD.com and SoftStone, enhancing code development efficiency and accelerating digital transformation[4] - In the healthcare sector, the "Smart Medical Assistant" powered by iFlytek Spark has provided over 700 million diagnostic aids across 426 districts in 31 provinces, detecting 54 million unreasonable prescriptions[5] - The company's education products have served over 130 million teachers and students across 32 provinces, promoting educational equity and quality improvement[5] - The company's AI applications span across industries including education, healthcare, and customer service[10] - The company's AI technology includes speech recognition, synthesis, and machine translation[11] - The company's AI technology has been integrated into smart home, smart customer service, mobile terminals, and automotive terminals, among other fields[77] - The company's AI technology has been widely applied in education, healthcare, and urban sectors, with significant market success and profitability[79] - The company's AI products and solutions have been scaled in key national economic sectors such as automotive, finance, and consumer goods[79] Financial Performance - Revenue for 2023 reached 19.65 billion yuan, a 4.41% increase compared to 2022[19] - Net profit attributable to shareholders was 657.31 million yuan, up 17.12% year-over-year[19] - Operating cash flow decreased by 44.55% to 349.76 million yuan in 2023[19] - Total assets grew by 15.13% to 37.83 billion yuan at the end of 2023[19] - Q4 2023 revenue was 7.04 billion yuan, the highest among all quarters[25] - Q4 2023 net profit attributable to shareholders was 557.95 million yuan, significantly higher than previous quarters[25] - The company plans to distribute a cash dividend of RMB 229,317,822.40, with a dividend of RMB 1 per 10 shares, based on a total share capital of 2,293,178,224 shares[7] - Non-current asset disposal gains in 2023 amounted to RMB 22,292,562.80, a significant increase from RMB 4,460,160.01 in 2022 and a reversal from a loss of RMB 7,253,207.50 in 2021[26] - Government subsidies recognized in 2023 totaled RMB 403,935,002.59, a decrease from RMB 473,121,321.03 in 2022 but higher than RMB 438,785,803.74 in 2021[26] - Gains from fair value changes and disposal of financial assets and liabilities in 2023 were RMB 230,342,367.48, a significant improvement from a loss of RMB 216,461,724.78 in 2022 and lower than RMB 338,818,986.25 in 2021[26] - Total non-recurring gains and losses for 2023 were RMB 539,251,197.09, a substantial increase from RMB 143,394,267.19 in 2022 and slightly lower than RMB 577,724,427.75 in 2021[26] Open Platform and Developer Ecosystem - Since the release of iFlytek Spark on May 6, 2023, the iFlytek Open Platform has added 1.676 million developer teams, with the international platform attracting 270,000 overseas developers[6] - The company provides 647 AI capabilities and one-stop AI solutions through its open platform, continuously building the AI industry ecosystem[31] - iFlytek Open Platform added 1.676 million developer teams, a 229% YoY increase, with over 350,000 large model developers and 2.775 million assistant developers creating 49,000 assistant applications[36] - The AI open platform has opened 647 leading AI capabilities and solutions, with over 5.78 million developer teams, a 52% year-on-year increase, and 1.676 million new developers added since the release of the Spark Big Model[57] - The industrial internet platform based on the Spark Big Model saw a 59% increase in total users and an 88% increase in service frequency within a month of its release[57] Education Sector - The company's education products have served over 130 million teachers and students across 32 provinces, promoting educational equity and quality improvement[5] - The "Tailored Teaching" solution has been implemented in 18 regions, including Tianjin, Jiangxi, Tibet, Zhejiang, Shandong, Hunan, and Sichuan, and has been applied in over 55 cities and districts, significantly improving regional teaching quality[39] - The intelligent grading technology has been officially applied in the college entrance examinations of 14 provinces and cities, covering 20 provincial-level college entrance examinations and 108 city-level high school entrance examinations[40] - The "Spark Teacher Assistant" has served over 400 schools, with 90% of teachers reporting improved efficiency in lesson preparation, reducing lesson design time by over 50% and courseware production time by over 60%[41] - The "Spark Cognitive Model" has been integrated into the English subject of the personalized learning handbook, leading to a 40% year-on-year increase in product sales[44] - The AI learning machine has been upgraded to the world's first cognitive model AI learning machine, introducing 8 new features and maintaining the highest Net Promoter Score (NPS) in the industry[44] - The "AI·LH Psychological Partner" has increased the coverage of personalized psychological counseling for students from less than 5% to 52%, reducing the detection rate of depression by 8% and anxiety by 4%[42] - The "Smart Sports" solution has been applied in approximately 1,400 schools in Beijing, Zhejiang, and Anhui, and has been used for intelligent physical education entrance examinations in Hebei, Shandong, and Anhui[43] - The company's AI learning machine T20 series, equipped with the Spark cognitive model, has been developed and is expected to enhance the company's influence in the education sector[101] - The company's AI learning machine T20 series is the first in the industry to receive TÜV Rheinland's natural light display certification, solidifying its leadership in the education tablet market[102] - Developed the Lumie 10 AI learning machine, focusing on "academic + literacy" improvement under the new curriculum standards, enhancing market competitiveness and driving revenue growth[105] - Established partnerships with 45,000 primary and secondary schools nationwide, completing regional base construction and achieving project sales targets[114] - Launched the "Smart Classroom" product, focusing on terminal application value, and effectively improving product market competitiveness and market share[105] - Developed a digital homework system integrated with AI technology, achieving automatic error collection and consolidation exercises, leading competitors[110] - Built a learner-centered academic evaluation system, helping teachers improve teaching precision and students enhance self-learning effectiveness[115] - Completed the development of the after-school service management platform, maintaining the top market share in the sector and expanding brand influence[118] Healthcare Sector - In the healthcare sector, the "Smart Medical Assistant" powered by iFlytek Spark has provided over 700 million diagnostic aids across 426 districts in 31 provinces, detecting 54 million unreasonable prescriptions[5] - The "Smart Medical Assistant" covers over 1,600 diseases and has provided over 740 million AI-assisted diagnostic suggestions, standardized over 280 million electronic medical records, and corrected over 1.3 million diagnostic cases[46] - The "Smart Medical Assistant" has been implemented in over 400 districts and counties across 30 provinces, providing AI-assisted diagnostic suggestions and electronic medical record standardization[46] - The "Spark Medical Model" has passed the national medical health field model application technology standard evaluation, providing AI diagnostic assistance for doctors and personalized post-diagnosis management[45] - The number of diseases that the AI medical assistant can assist in diagnosing has increased from about 1,100 in 2021 to over 1,600 in 2023, with the reliability of initial diagnosis recommendations improving from about 96% to 98% and prescription review reliability increasing from about 93% to 96%[47] - The AI chronic disease management system has been successfully implemented in several regions, including Wuxi Economic Development Zone in Jiangsu, Puyang County in Henan, and Linzi District in Zibo, Shandong[47] - The smart hospital solution at West China Hospital of Sichuan University supports over 13,000 symptoms and 5,000 diseases for pre-diagnosis triage, accurately matching patients to the appropriate departments[48] - The specialized CDSS covers over 50 diseases, and the VTE system has achieved intelligent assessment of over 170 VTE-related evaluation items, with an AI and expert assessment consistency rate exceeding 90%. It serves over 40 of China's top 100 public hospitals, including all top 5 public hospitals[48] - The Anhui Medical Imaging Cloud Platform connects over 1,900 hospitals and has gathered more than 2,700 experts, serving nearly 70 million cases in Anhui with a monthly average online activity of nearly 20,000 cases[50] - The infectious disease monitoring and emergency command information platform in Hefei, Anhui, monitors 41 statutory infectious diseases, 15 non-statutory infectious diseases, and 6 major syndrome surveillance signals, based on data from over 1,400 primary medical institutions and about 20 hospitals[51] - The company has initiated four smart medical insurance pilot projects in Shanxi, Anhui, Jiangsu, and Yunnan, following its first prize in the National Medical Insurance Bureau's Smart Medical Insurance Solution Competition in 2022[52] Smart City and Government Solutions - The smart city business leverages the Spark Cognitive General Model to build industry-specific models and applications, expanding into smart agriculture, smart parks, smart buildings, and smart water conservancy, forming a robust and comprehensive smart city business ecosystem[53] - The digital government business achieved significant breakthroughs, with the "Government Big Model" supporting 22 departments and 30 projects, reducing development cycles by up to 75%[54] - The legal industry big model, compliant with the "Legal Big Model Evaluation Indicators and Methods (Trial Version)", was released, improving case handling efficiency in courts, with judges in Hefei High-Tech Court handling 991 cases per capita, ranking first in the province[55] Automotive Sector - The smart car business saw a record high of over 7.5 million units of pre-installed intelligent products shipped, with a cumulative shipment of 53.6 million units and annual online interactions exceeding 10 billion, a 229% year-on-year increase[74] - The company's FlyFish in-car intelligent audio management system has been applied in over 30 mass-produced models from more than 10 mainstream domestic and joint-venture automakers[73] - The smart cockpit solution has secured platform-level vehicle projects with Chery and Jiangling, with mass production of models equipped with the company's self-developed cockpit domain controller expected in 2024[74] - The company's in-car interaction products support over 20 overseas languages, covering dozens of overseas models from leading automakers such as Chery and SAIC, with mass production in regions including Europe, South America, and Southeast Asia[73] - The company has developed a 100K computing power cockpit domain controller hardware and system based on domestic chips, optimizing the integration of AI algorithms such as voice, vision, and audio effects[73] - The company's intelligent driving solutions achieved their first project win and are expected to enter mass production in 2024, with advanced perception algorithms developed based on the BEV framework[74] Consumer Hardware and AI Products - The smart hearing aid released in 2022 and its upgraded version in 2023 ranked first in sales on JD.com and Tmall during the 2023 "618 Shopping Festival" and has over 55,000 registered users as of January 19, 2024[50] - The "Xunfei Xiaoyi" APP and mini-program, launched in October 2023, significantly improves consultation efficiency and supports standardized medication, reducing potential irrational drug use[50] - Consumer hardware GMV increased by 84% year-on-year, with sales during the 618 and Double 11 shopping festivals growing by 125% and 126% respectively[60] - The company's AI marketing business achieved significant growth during the 618 and Double 11 shopping festivals, with overseas marketing beginning to assist Chinese companies in going global[59] - The company's consumer hardware products gained international recognition at events such as the AI TechDay in Singapore and the Budapest World Athletics Championships[60] - The company's AI marketing business received industry recognition, including the "Best Digital Marketing Platform of the Year" at the Golden Mouse Awards and the "Best Intelligent Marketing Platform of the Year" at the Tiger Roar Awards[59] - iFlytek Smart Office Book series maintains a market share of over 30% and achieved an online comprehensive praise rate of over 97%[61] - The new X3 series of iFlytek Smart Office Book features a 10.65-inch flexible e-ink screen with 300PPI clarity and an eight-microphone array, with sales increasing by over 50% compared to the previous generation[62] - iFlytek Smart Recorder has been the sales champion on JD.com and Tmall for six consecutive years during the Double 11 shopping festival[63] - iFlytek Hearing SaaS service ecosystem has surpassed 100 million users, with paid users increasing by 28.5% year-over-year[64] - iFlytek Hearing's smart briefing system achieved a speech transcription accuracy rate of 96.28% during the 14th National People's Congress[65] - iFlytek Input Method's daily active users increased by 10% year-over-year, with AIGC-driven content value-added revenue growing by 81%[67] - iFlytek Translator's sales increased by over 300% year-over-year, with a market share of over 80% on JD.com and Tmall[68] - iFlytek Translator supported over 200 countries and regions, with sales in overseas markets growing by over 200% year-over-year[69] - iFlytek AI Sweeping Robot X3 Pro received a 100% positive rating on JD.com and won multiple international design awards[70] R&D and Innovation - The company has built a complete and efficient R&D team, which is considered its greatest advantage in the research field[32] - The number of R&D personnel decreased by 4.02% from 9,281 in 2022 to 8,908 in 2023[141] - R&D personnel accounted for 62.05% of the total workforce in 2023, up 0.37% from 61.68% in 2022[141] - R&D investment increased by 14.36% to RMB 3,836,822,735.77 in 2023 from RMB 3,355,146,722.67 in 2022[143] - R&D investment as a percentage of revenue rose to 19.53% in 2023, up 1.70% from 17.83% in 2022[143] - Capitalized R&D investment increased by 13.45% to RMB 1,602,462,883.60 in 2023 from RMB 1,412,519,566.40 in 2022[143] - The AI interactive kit project has been completed, aiming to enhance brand influence and expand the intelligent automotive product matrix[140][149] - The international version of the voice assistant is in the development stage, targeting global automotive users and expanding market size[140] - The intelligent driving assistance system is in the development stage, focusing on L2+ level software and domain controller products[140][142] - The Lumie 10 AI learning machine project has been completed, integrating Spark cognitive model capabilities for educational applications[145][146] - The personalized learning handbook project is in the development stage, leveraging Spark model capabilities for personalized learning solutions[151] Financial and Operational Metrics - The company's core business in software and information technology services accounted for 98.27% of total revenue, with a year-on-year growth of 4.27%[84] - Revenue from the education sector decreased by 9.70% to 5.56 billion yuan, while the teaching business grew by 11.14% to 287.57 million yuan[84] - The open platform business saw significant growth, with revenue increasing by 41.61% to 3.94 billion yuan[84] - Revenue from the smart automotive sector grew by 49.71% to 695.54 million yuan[84] - The company's revenue in the North China region increased by 30.61% to 3.23 billion yuan[84] - The company's gross margin for the software and information technology services sector was 43.10%, with a slight increase of 0.87% year-on-year[88] - The open platform business had a gross margin of 21.35%, a decrease of 6.88% compared to the previous year[89] - Material costs for the software and information technology services industry decreased by 2.66% to RMB