Investment Rating - The report assigns a Neutral rating to iFlytek, indicating that the valuation is fairly priced [1][9]. Core Insights - iFlytek's management is optimistic about the potential of its self-developed foundation models and generative AI applications, particularly in the education and healthcare sectors [1][4]. - The company plans to continuously enhance its Spark X1 reasoning model, with upgrades expected in July 2025, to better meet client demands across various industries [2]. - iFlytek's education business is expected to benefit from generative AI, with a focus on personalized learning and interactive courses, which will strengthen its market position [3]. - The enterprise business outlook remains positive, with customized foundation models being developed for various industries, enhancing competitiveness [4]. Summary by Sections Spark X1 Upgrades - iFlytek upgraded its Spark X1 reasoning model in April 2025 and plans further upgrades in July 2025, aiming to provide tailored AI solutions for different sectors [2]. AI Education Updates - The management is positive about the education segment, leveraging generative AI to boost AI learning machine shipments and enhance product competitiveness through personalized learning paths [3]. Enterprise Business Outlook - iFlytek is focused on providing total solutions for enterprises, including customized foundation models and application software, to facilitate the adoption of generative AI across various industries [4].