Full text of the iFLYTEK's 2024 Annual Report
1Full text of the iFLYTEK's 2024 Annual Report
Section I Important Notice Contents and Definitions
The Board of Directors the Supervisory Board and all senior management members
of iFLYTEK Co. Ltd. (the "Company" or “iFLYTEK”) collectively guarantee the
truthfulness accuracy and completeness of the information in this Annual Report
affirming the absence of any false records misleading statements or significant omissions
and accept full joint and severable legal accountability for its contents.Liu Qingfeng the Company's Chairman; Wang Ming the person responsible for
accounting; and Zhao Linyue the head of the accounting department (accounting
supervisor) hereby declare that the financial statements in this Annual Report are
authentic accurate and complete. All directors were present at the Board of Directors
meeting that reviewed this Report.The statements in this Report regarding future development plans and operational
objectives are forward-looking statements and do not constitute a commitment to investors.Investors and related parties should be aware of the risks and understand the difference
between plans forecasts and commitments.In "Section III: Management Discussions and Analysis" under "XI.2. Risks and
Countermeasures" the Company analyzes potential risks it faces along with corresponding
countermeasures and invites investors to pay attention to these details.The Company's profit distribution plan approved by the current Board of Directors is
as follows: Based on the total number of shares (excluding repurchased shares in dedicated
accounts) on the record date when the distribution was implemented a cash dividend of 1
RMB yuan per 10 shares (tax-inclusive) will be distributed to all shareholders. No red
shares (tax-inclusive) will be issued and no shares will be converted from capital reserves.
2Full text of the iFLYTEK's 2024 Annual Report
Table of Contents
Section I Important Notice Contents and Definition... 2
Section II Company Profile and Financial Highlight... 7
Section III Management Discussions and Analysis .... 11
Section IV Corporate Governance .................... 78
Section V Environmental and Social Responsibility . 111
Section VI Significant Matters .................... 120
Section VII Changes in Shares and Shareholder Info. 134
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List of Documentation
1. Financial statements signed and sealed by the Company's legal representative the person
responsible for accounting and the head of the accounting department.
2. Original audit report bearing the seal of the accounting firm and the signature and seal of
the certified public accountant.
3. Originals of all the Company's documents and announcements publicly disclosed in
newspapers designated by the China Securities Regulatory Commission (CSRC) During this
reporting period.
4. The original Annual Report 2024 signed by the Board Chairman.
4Full text of the iFLYTEK's 2024 Annual Report
Definitions
Terms refers to Meaning
Artificial Intelligence (AI) is an emerging field of technical science that involves
the research and development of theories methods technologies and application
systems aimed at simulating extending and enhancing human intelligence. AI
refers to artificial programs or systems capable of perceiving recognizing
Artificial deciding and acting like humans. Perceptual intelligence enables machines to
intelligence refers to "hear and speak see and recognize" primarily involving technologies such as
(AI) speech synthesis speech recognition image recognition and multilingual voice
processing. Cognitive intelligence allows machines to "understand and think"
encompassing services such as educational evaluations medical diagnostic aids
judicial assistance in courtrooms intelligent customer support and machine
translation.Also known as iFLYTEK SPARK this is a new-generation cognitive large
language model developed and released by iFLYTEK. It possesses cross-domain
knowledge and language understanding capabilities capable of understanding
and executing tasks based on natural conversational interactions. It continuously
evolves from massive data and extensive knowledge to achieve a full-process
iFLYTEK
closed loop from proposing and planning to solving problems. iFLYTEK
SPARK refers to
SPARK boasts seven core capabilities: text generation language understanding
(SparkDesk)
knowledge-based Q&A logical reasoning mathematical ability coding ability
and multimodal capacity. iFLYTEK SPARK is empowering various industries
accelerating application implementation collaborating with leading companies in
multiple fields to set benchmarks for large language applications and co-creating
the Spark ecosystem with individual users developers and corporate institutions.This technology enables machines to "listen and speak" like humans. It
encompasses technologies such as speech recognition (automatically converting
speech to text) speech synthesis (automatically converting text to speech)
Intelligent spe
refers to voiceprint recognition (identifying the speaker) and language recognition
ech
(identifying languages and dialects). These technologies are part of perceptual
intelligence within artificial intelligence and serve as the core supporting
technologies for the transformation of human-machine voice interaction.Speech
refers to This technology automatically converts text to speech using machines.synthesis
Speech This technology automatically converts speech signals into text and related
refers to
recognition information using machines.Speech
evaluation
This technology enables machines to automatically assess pronunciation levels
(spoken refers to
detect errors and provide correction instructions.language
evaluation)
Image This technology uses computers to process analyze and understand images to
refers to
recognition recognize objects and patterns across various models.This is the process of using a computer to translate text from one natural
Machine
refers to language (the source language) to another (the target language). It is also known
translation
as automatic translation.An important branch of research in computer science and artificial intelligence it
focuses on the theories and practices that enable effective communication
between humans and computers using natural languages. Its ultimate goal is to
Natural
enable computers to understand and use natural languages such as Chinese and
language refers to
English to facilitate natural language communication between humans and
understanding
machines. This aims to replace part of human mental labor including
information retrieval answering questions excerpting documents compiling
data and handling all other tasks related to natural language.“Super Brain refers to Launched in 2022 this ambitious plan sets a strategic roadmap for advancing the
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2030” Company’s technological and product development over the medium to long
term. This visionary plan aims to develop a complex intelligent system based on
cognitive intelligence that enhances human-machine collaboration and self-
evolution. This plan focuses on creating machines that surpass human perceptual
abilities deeply understand specialized domain knowledge and continuously
evolve autonomously. These machines are envisioned to fully perceive humans
and their environments possess emotional intelligence and demonstrate flexible
mobility and multi-dimensional expression. Aimed at integrating advanced
family companion robots into numerous households the core objective of this
plan is to leverage artificial intelligence to address emerging social challenges
and meet essential future demands.
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Section II Company Profile and Financial Highlights
I. Company profile
Stock Name iFLYTEK Stock Code 002230
Stock exchange Shenzhen Stock Exchange
Company Name in Chinese iFLYTEK Co. Ltd.Company Name in Chinese 科大讯飞
Company Name in English
iFLYTEK CO. LTD.(if any)
Name Abbreviation in
iFLYTEK
English (if any)
Legal Representative Liu Qingfeng
Registered Address 666 West Wangjiang Road High-tech Development Zone Hefei
Zip Code 230088
the Company's registered address was changed from 616 Huangshan Road
Change of the Company's
High-tech Development Zone Hefei to 666 West Wangjiang Road High-tech
Registered Address
Development Zone Hefei in April 2013.Office Address 666 West Wangjiang Road High-tech Development Zone Hefei
Zip Code 230088
the Company's Website: http://www.iflytek.com
E-mail: xunfei@iflytek.com
II. Contact Information
Secretary of the Board Representative
Name Jiang Tao Chang Xiaoming
666 West Wangjiang Road High-tech 666 West Wangjiang Road High-tech
Contact address
Development Zone Hefei Development Zone Hefei
Company Hotline: 4000-199199 Company Hotline: 4000-199199
Telephone
Investor Hotline: 0551-67892230 Investor Hotline: 0551-67892230
Fax 0551-65331802 0551-65331802
E-mail: taojiang@iflytek.com xmchang@iflytek.com
III. Change to Channels for Disclosure and the Location where Copies of this Report Is Kept
The Stock Exchange website where the
https://www.szse.cn
Company discloses this Report:
The Securities Times China securities Journal Shanghai
Media names and websites where the
Securities News Securities Times and the CNINFO website
Company discloses this Report
at http://www.cninfo.com.cn
Place where the Company archives its annual
The Company's Securities Department
reports
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IV. Changes in Registration
Unified Social Credit Code 91340000711771143J
Leveraging its breakthrough in core AI technologies the Company
has advanced from enabling machines to "listen and speak" to
Changes to the Company's core
making them capable of "understanding and thinking". This has
businesses since IPO (if any)
allowed it to evolve from being a supplier of intelligent speech
technologies and application solutions into an AI industry leader.Changes to controlling shareholder (if
No controlling shareholder
any)
V. Other Relevant Information
Accounting firm engaged by the Company
Name of the accounting firm RSM China CPA LLP
29th Floor Block A Giland Plaza Longtu Road at Lüzhou
Office address of the accounting firm
West Road Shushan District Hefei
Names of the signing CPAs Gao Ping Zhang Yaqiong and Lü Zhannan
Sponsor engaged by the Company to perform ongoing supervision duties during this reporting period
□ Applicable √ Not applicable
Financial advisor engaged by the Company to perform ongoing supervision duties during this reporting period
□ Applicable √ Not applicable
VI. Financial Highlights
Does the Company need to retroactive adjust or restate accounting data for previous years
□ Yes √ No
Change
Item 2024 2023 2022
(increase/decrease)
Operating income (RMB yuan) 23343093018.69 19650329209.04 18.79% 18820234052.91
Net profit attributable to the
Company's shareholders (RMB 560162663.16 657312908.24 -14.78% 561213020.79
yuan)
Net profit excluding non-
recurring gains and losses
188137288.93118061711.1559.36%417818753.60
attributable to the Company's
shareholders (RMB yuan)
Net cash flows from operating
2495173454.92349757814.55613.40%630761247.28
activities (RMB yuan)
Basic earnings per share (RMB
0.240.28-14.29%0.24
yuan)
Diluted earnings per share
0.240.28-14.29%0.24
(RMB yuan)
Weighted average return on net
3.21%3.94%-0.73%3.38%
assets (%)
Change
End of 2024 End of 2023 End of 2022
(increase/decrease)
Total assets (RMB yuan) 41478899803.20 37831122978.15 9.64% 32859139720.02
8Full text of the iFLYTEK's 2024 Annual Report
Net assets attributable to the
Company's shareholders (RMB 17793386034.67 17032284511.72 4.47% 16400047819.43
yuan)
In the past three years the lower of the Company's net profit before and after deducting non-recurring gains and
losses has been negative and the latest audit report raises concerns about the Company's ability to continue as a
going concern.□ Yes √ No
The lower of the Company's net profit before and after deducting non-recurring gains and losses is negative.□ Yes √ No
VII. Differences in Accounting Data Under Chinese and International Accounting
Standards
1. Differences in Net Profit and Net Assets Under IFRS and CAS
□ Applicable √ Not applicable
There are no differences in net profit and net assets under the International Financial Reporting Standards (IFRS)
and the Chinese Accounting Standards (CAS) during this reporting period.
2. Differences in Net Profit and Net Assets Under International Accounting Standards and CAS
□ Applicable √ Not applicable
There are no differences in net profit and net assets under the IFRS and the CAS during this reporting period.VIII. Main Financial Indicators by Quarter
In RMB yuan
Item Q1 Q2 Q3 Q4
Operating income 3646215386.95 5678329654.19 5524991887.00 8493556090.55
Net profit attributable to the
-300468030.20-100197587.0156961383.78903866896.59
Company's shareholders
Net profit excluding non-recurring
gains and losses attributable to the -440542522.82 -42556412.97 14866411.30 656369813.42
Company's shareholders
Net cash flow from operating
-1384136038.16-151420216.35714621239.423316108470.01
activities
Do the above financial indicators or their aggregate differ significantly from those disclosed in the quarterly and
mid-year reports
□ Yes √ No
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IX. Non-recurring Gains and Losses: Items and Amounts
√ Applicable □ Not applicable
In RMB yuan
Item 2024 2023 2022
Gains or losses on disposal of non-current assets (including the
12293698.1822292562.804460160.01
write-off of provisions for impairment losses)
Government subsidies recorded under current gains or losses
(excluding those closely related to the Company’s operations
418605147.92403935002.59473121321.03
stipulated by national policies granted at fixed standards and
having a lasting impact on the Company’s gains and losses)
Gains or losses from changes in the fair value of financial
assets and liabilities held for trading and derivatives and gains
and losses from the disposal of such assets and liabilities 83202882.03 230342367.48 -216461724.78
excluding those from effective hedging transactions related to
the Company’s operations
Gains or losses from entrusting others with investment or asset
318402.59116136.016156996.35
management
Other non-operating incomes and expenses except for the
-76227181.17-25811247.49-70792636.76
above items
Less: Income tax impact 51007163.77 83523602.33 50150254.84
Impact on non-controlling interests (after tax) 15160411.55 8100021.97 2939593.82
Total 372025374.23 539251197.09 143394267.19
Clarification of other gains and losses qualifying as non-recurring gains and losses
□ Applicable √ Not applicable
There are no other gains and losses that qualify as non-recurring gains and losses.Clarification of circumstances where non-recurring gains and losses as specified in Explanatory Announcement
No. 1 on Information Disclosure for Publicly Traded Companies - Non-Recurring Gains and Losses qualify as
recurring gains and losses
□ Applicable √ Not applicable
The Company does not have any circumstances where non-recurring gains and losses as listed in Explanatory
Announcement No. 1 on Information Disclosure for Publicly Traded Companies - Non-Recurring Gains and
Losses qualify as recurring gains and losses.
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Section III Management Discussions and Analysis
I. Industry Overview
The Company complies with the disclosure requirements for the software and IT services industry as stipulated
in the Self-Regulatory Guidelines for Companies Traded on Shenzhen Stock Exchange No. 3: Industry
Information Disclosure.As humanity steps into the new era of artificial intelligence AI technologies including large language
models are emerging as a transformative force in the latest wave of techno-scientific revolution and industrial
transformation. The AI industry now characterized by unprecedented innovations and intense competition is
exerting a profound influence over social and economic development. The global surge in large language
models is attracting major tech companies significant governmental interest and widespread industry adoption
which collectively highlights the vast potential of these technologies to initiate a new era.AI investment has been surging globally. In 2024 the four technology giants Microsoft Google Amazon
and Meta invested a combined total of more than 200 billion US dollars in the field of AI. According to the
financial reports of these companies following their record-shattering spending last year they are expecting an
increase in AI investment in 2025 with an additional 320 billion dollars invested in AI development and data
centers. Having secured 10 billion US dollars in 2023 OpenAI raised 6.6 billion dollars in its new round of
fundraising last October; xAI raised 6 billion US dollars respectively in two financing rounds in May and
December 2024 and is reportedly seeking a new financing round totaling 10 billion dollars. Meanwhile
PitchBook's data shows that AI startups in the United States received about 97 billion US dollars in venture
capital funding in 2024 which is an all-time record.II. Business Highlights During This Reporting Period
1. Business Overview
Since its incorporation iFLYTEK has adhered to the "reaching for the sky rooted on the ground" approach."Reaching for the sky" means the Company will maintain a leading international position in core technologies
while the "rooted on the ground" approach involves the scaled industrial application of technological
achievements. The Company consistently focuses on core underlying AI technologies such as intelligent speech
natural language understanding multimodal intelligence and artificial general intelligence (AGI) managing to
always remain at the cutting edge in the international arena. It actively promotes the research and development
of AI products and their application in various industries committed to making machines that can listen speak
understand and think and creating a better world with AI.
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Figure 1: Overview of iFLYTEK’s Core Businesses
As a leading Chinese AI company with strong commitment to achieving autonomous growth and
accumulating technological strengths iFLYTEK has built an AI core technology development and model
training system home-grown computing power and adequate data through years of sustained investment. It has
also established three AI commercialization routes: industry applications (smart education smart healthcare
intelligent vehicles corporate AI solutions smart city etc.) open platform and AI consumer products. As the
application scale expands the data-driven commercial flywheel effect of the pattern consisting of "model
algorithms product and core businesses" is becoming more evident.★ Core AI Technology Research and Model Training System
As China's leading AI company iFLYTEK has built the country's State Key Laboratory for Cognitive
Intelligence and the National Engineering Research Center of Speech and Language Information Processing.The Company has exceptional expertise in deep learning and natural language processing. Significant
technological breakthroughs include the first AI systems to pass China's National Practicing Physician
Qualification Examination and China Accreditation Test for Translators and Interpreters (CATTI) at level II for
Chinese-English interpreting and machine reading comprehension capabilities that exceeded the average
human performance in the SQuAD 2.0 challenge. iFLYTEK launched its advanced large language model
SparkDesk known as “iFLYTEK SPARK” on May 6 2023 building on its long-term development of key
foundational technologies. This model is undergoing continuous rapid enhancements and iterations which has
established itself as a leader among testable large language models developed by Chinese companies. While
developing its general large language model the Company maintains its "1+N" framework by creating a
number of (N) industry-specific large models for key sectors such as education healthcare automotive office
products manufacturing and smart hardware demonstrating the Company's advanced LLM applications.* Continual Upgrades and Iterations of iFLYTEK SPARK
On January 30 2024 iFLYTEK SPARK 3.5 was released surpassing ChatGPT-4 Turbo in language
understanding mathematical abilities and voice interaction capabilities possessing 96% of ChatGPT-4 Turbo’s
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coding and 91% of ChatGPT-4V’s multimodal understanding capabilities. Additionally iFLYTEK has released
its first voice model using iFLYTEK SPARK’s foundational capabilities surpassing OpenAI Whisper V3
across 37 languages in voice recognition and elevating the MOS score by 0.25 on average across 40 languages
in voice synthesis achieving a near-human synthesis MOS of 4.5 with 83% human likeness.On April 26 iFLYTEK released iFLYTEK SPARK 3.5 which supports long texts extended mixed media
content and long voice inputs. This update introduced the iFLYTEK SPARK image-text recognition model
featuring multi-emotion hyper-realistic synthesis and single-sentence voice replication capabilities.On June 27 iFLYTEK SPARK 4.0 was released which is the open large model in China and it matches
up comprehensively with ChatGPT-4 Turbo. iFLYTEK SPARK 4.0 excels in 8 out of the 12 mainstream test
sets in Chinese and English both domestic and international. iFLYTEK SPARK's voice model made further
breakthroughs possessing dialogue capabilities in 74 languages/dialects without the need for manual switching
solving the challenges of voice recognition under strong interference and capable of voice transcription in
challenging and complex circumstances.On October 24 iFLYTEK SPARK 4.0 Turbo was released surpassing ChatGPT-4 Turbo in all seven core
capabilities. It excelled ChatGPT-4o in mathematical and coding abilities achieving nine first-place rankings in
14 Chinese and English mainstream test sets both domestically and internationally.. It redefined multi-modal
AIUI interaction for the era of intelligent connectivity with its first-ever virtual human released. Its multilingual
large language model iFLYTEK SPARK and large model-based products designed specifically for medical
imaging and automotive applications were also unveiled to the public.On January 15 2025 iFLYTEK announced the new upgrade of its large language model iFLYTEK
SPARK X1. iFLYTEK SPARK X1 achieves industry leadership with lower computing power which has been
successfully tested and deployed in real-world scenarios. Additionally iFLYTEK also launched its
simultaneous interpreting model.
2. Major Business Developments During this Reporting Period
★ AI Industry Applications
Based on years of industry experience iFLYTEK is stepping up the application and commercialization of
iFLYTEK SPARK in realms such as smart education smart healthcare smart automotive corporate AI
solutions and smart city. The data-driven flywheel effect from model-training algorithm to business growth is
becoming increasingly evident.
1. Smart Education
In the field of education guided by its commitment to "using artificial intelligence to aid education and
provide personalized instructions to realize dreams" iFLYTEK works to address major educational issues. By
deeply integrating AI technologies in education and teaching scenarios and leveraging the foundational
technologies of its large language model iFLYTEK SPARK iFLYTEK provides targeted and convenient
services to students teachers and education administrators at all levels. This facilitates the accumulation and
application of data in both teaching and learning processes helps reduce burdens and increase efficiency for
teachers and students alike and thus promotes educational progress. Currently iFLYTEK's smart education
products are deployed in 32 provincial regions across China as well as in overseas markets like Japan and
Singapore.iFLYTEK's smart education endeavors revolve around the goals of "reducing students' homework burden
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while improving their learning quality; reducing exams while scientifically assessing learning effectiveness; and
promoting balanced education development while supporting the goal of building a technologically advanced
country." In line with national and regional strategies for achieving digital transformation in education and
high-quality educational development iFLYTEK constructs a business system targeting customers on three
sides: government business and consumer customers. Government business offers comprehensive education
solutions for local educational administrators at the county/district level as well as customized solutions for
school teachers and students. The business sector mainly addresses school infrastructure encompassing smart
blackboards smart classrooms big data-driven targeted teaching assistance English listening and speaking
classes digital homework and innovative education solutions. Consumer business primarily targets parents as
direct purchasers offering products such as AI learning devices Personalized Learning Handbook English
learning products and after-school services.
1.1 Enhancing Product Value in School Scenarios
China's education reform is deepening with an extensive roll-out of personalized and innovative teaching
methods curriculum standards and textbooks. In response iFLYTEK has upgraded and integrated its
previously separate and independent smart classroom and other smart products into a unified green safe and
intelligent classroom product system and launched China's first problem chain-based intelligent teaching
assistant for senior high school math teachers in collaboration with China National Academy of Educational
Sciences.Teacher assistant products have been widely used in Guangdong Jiangsu Jiangxi and other provinces. 90%
of the users engage with the products actively with an average usage frequency exceeding 5.1 times per week
and a satisfaction rate of over 86%. Data collected from approximately 130000 teachers indicates a greatly
reduced burden in teaching design (by 56%) and increased efficiency of teaching materials preparations (by
65%).
In the field of smart devices iFLYTEK has redefined classroom screens via iFLYTEK SPARK-driven
Smart Blackboards a cutting-edge tool that seamlessly blends interactive digital whiteboards and large
language model capabilities. This product is designed to meet the evolving AI needs in the classrooms ensuring
a one-of-its-kind experience that is more unified more efficient smarter and safer.Moreover the latest generation of smart classroom solutions enhances teaching efficiency and
effectiveness through an integrated teaching and evaluation system which supports the innovation of teaching
methods and improves overall teaching quality. With widespread coverage iFLYTEK's smart classrooms have
achieved a weekly active usage rate of over 70% among teachers and around 85% among students significantly
enhancing the efficiency in lesson preparation class teaching and student learning. For instance in the Wuhan
Economic and Technological Zone where smart classrooms are extensively deployed it's proven that the
teachers' lesson preparation and class interaction efficiency have improved by about 90% and 80% respectively
and students' overall satisfaction with learning has reached 90% (4.47 out of 5 points). These remarkable
improvements contribute to more balanced regional development and enhanced teaching quality and efficiency.
1.2 Accelerated Launch of School Service Systems
In 2024 iFLYTEK's comprehensive school service systems have been further integrated and upgraded to
enable real-time data collection and automatic analysis of daily homework assessments and classroom
activities through AI empowerment allowing teachers to monitor the learning progress of students and to create
tailored teaching solutions. Efforts are being made to accelerate the deployment of these products and solutions.
14Full text of the iFLYTEK's 2024 Annual Report
The Regional Digital & Intelligent Homework System has covered over one hundred districts and counties
in China effectively supporting the ongoing education reform of the "Double Reduction" initiative to ease the
burden of excessive homework and off-campus tutoring for students undergoing compulsory education and
advancing the digital transformation of homework. A series of pilot smart homework projects have been
implemented in Xiaoshan District and Zhuji City in Zhejiang Xuanwu District in Nanjing City among which
the provincial smart system of Ningxia Province was selected by China's Ministry of Education as a
benchmarks for digital transformation.In 2024 the Big Data-Driven Targeted Teaching Assistance System was applied in over 40000 schools
delivering services to more than 72 million teachers and students and processing over 1.1 billion scans and
approximately 3.3 billion exam papers (42.7 billion questions). The past years have also witnessed steady
growth of the Personalized Learning Handbook. By identifying the Zone of Proximal Development and the
individualized needs of the students the product enables personalized autonomous learning with scientific
learning planning and intelligent recommendations of learning resources.Since its mid-2024 launch the iFLYTEK SPARK Intelligent Grading Machine has continuously
streamlined teacher workflows helping grade over 70000 assignments per day and reducing ineffective
repetitive grading tasks by more than 80%. In this manner it has greatly reduced the burdens for teachers and
doubled the time they can devote to personalized tutoring and pedagogical research.
1.3 AI Tutoring Products Pioneering New Modes for Self-learning
Since its launch iFLYTEK’s AI Learning Machine has been a leader in its market segment for its good
reputation among users introducing a personalized and effective learning method and consistently maintaining
the highest Net Promoter Score (NPS) in the industry. In the context of fierce industry competition the market
share and brand recognition of iFLYTEK’s AI Learning Machine have steadily grown as its sales have ranked
first among all the intelligent learning machines in China for three consecutive years. (Source: Euromonitor
International survey on the sell-in value of high-end learning machines through all sales channels in China's
Mainland 2023. Premium learning machines are devices with a recommended retail price above 5099 RMB
yuan. Learning machines refer to electronic educational products that assist learning in fields including but not
limited to language learning and exercises of specific academic exercises. The survey was completed in July
2024).
In 2024 iFLYTEK released its flagship AI learning machine product T30 Ultra featuring an enhanced AI-
based 1-on-1 tutoring function pioneering a new interactive mode that encourages children to think and ask
questions proactively. iFLYTEK has also developed abundant high-quality learning content closely aligned
with the new curriculum standards including AI-enhanced courses in Chinese writing intensive reading
cognitive development and elementary mathematics offering school children innovative ways of learning and a
better learning experience. In the same period built on iFLYTEK SPARK 4.0 Turbo iFLYTEK launched an AI
homework filter that can autonomously categorize the exercises into three types based on the students' historical
data and local testing trends "must-do" "optional" and "recommended to skip" which significantly reduces
their homework burden. This enables students to quickly determine the importance of different exercises
thereby avoiding inefficient repetitive practice to improve learning effectiveness.
1.4 Expanding Application of Intelligent Grading Technology
In 2024 iFLYTEK continued to increase investment in fundamental research on intelligent
grading technology making continuous breakthroughs and innovations in many aspects with its application
scope expanded from specific question types to all subjects. Among them large language model-based grading
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solutions have been fully developed to cover reading Q&A retelling and topic-based speaking; This intelligent
grading system has outperformed all competitive products alike in English oral ability assessment and
intelligent scanning and scoring in real-world scenarios.While maintaining leadership in intelligent grading technology the Company also reinforced its leading
position in the AI application in exam scenarios. In 2024 the application of this technology has been extended
to cover the English listening and speaking tests in College Entrance Exams in one additional province and 4
cities along with the high school entrance exams in 19 newly added prefecture-level cities. Now it covers
college entrance exams in 25 provincial regions and high school admission exams in 127 prefecture-level cities
and has partnered with two provincial education authorities in the computer-aided listening tests of College
Entrance Exams. iFLYTEK's intelligent grading technology has been deployed in College Entrance Exam
grading systems across 14 cities processing over 30 million test papers on an annual basis.At the same time iFLYTEK continued to provide support for the National Putonghua Proficiency Test to
boost high-quality Putonghua testing advancement in response to the call for a firm national language
foundation with annual test-takers reaching 10 million each year. Efforts have been made to upgrade the
standardized Putonghua test rooms with the construction of 300 facilities completed.
1.5 Expanding the Application of AI Language Learning Products
By empowering language learning and classroom activities with AI iFLYTEK has developed English
education products like ETS for individual users and AI smart classroom solutions for schools. Deeply
integrating with iFLYTEK SPARK the core capabilities of ETS have been enhanced across writing reading
listening and speaking remarking a smooth transition from the sole function of speaking training to a
comprehensive coverage of all English skills. Now it caters to the needs of users of elementary junior and
senior high school levels attracting 3.55 million paid users in 2024 which increased by 35% compared to the
previous year. Up to now the AI smart classroom has been applied in over 3000 schools across more than 30
provinces in China benefiting as many as 3.9 million teachers and students.
1.6 Promotion of Region-specific Personalized Education Solutions
During this reporting period the Company significantly expanded the coverage of its personalized learning
solutions in 18 regions including Fugu County in Yulin Shaanxi Zhuji City in Zhejiang Feicheng City in
Shandong Harbin New District in Heilongjiang Longwan District in Wenzhou Zhejiang and Hexi District in
Tianjin. To date iFLYTEK’s personalized education solutions have been implemented in over 85 cities
districts and counties effectively reducing workload and improving efficiency for teachers and students alike
with statistically proven results. This large-scale application has increased the efficacy of regional teaching
management through digital tools with intelligent teaching assistants significantly easing teachers' grading and
lesson planning burdens. Additionally it has developed student-centered learning profiles increased teaching
effectiveness tailored instructions to individual learning needs and shifted away from repetitive learning
methods. These widespread applications have markedly enhanced teaching quality in these regions.
1.7 Quality Education Products and Services
In after-school services empowered by iFLYTEK SPARK a course platform provides a wealth of quality
course resources and content for teachers and students greatly reducing the burden of teachers in lesson
preparation and classroom teaching. To date iFLYTEK's after-school solutions have covered over 13000
schools in more than 460 districts and counties nationwide playing a key role in driving the paradigm shift
from traditional knowledge teaching to a method focusing on students' capabilities and comprehensive qualities
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gradually narrowing the urban-rural gap in education and promoting more balanced development across
regions.
2. Smart Healthcare
In smart healthcare iFLYTEK is committed to creating an AI diagnostic assistant for every doctor and an
AI health assistant for every citizen leading China's AI application in the healthcare sector. Utilizing the
foundational capabilities of iFLYTEK SPARK and medical knowledge gained from years of healthcare
commercialization the Company is dedicated to the product development of clinical assistants and healthcare
assistants offering ground-breaking products and solutions that cover the entire process from health risk early
warning early screening diagnosis treatment follow-up rehabilitation post-diagnostic management and
chronic disease management.In 2024 the global smart healthcare industry was driven by dual engines of technological breakthroughs
and scenario expansion. As the Company serving the largest number of doctors and patients with AI-powered
medical technologies in China Xunfei Healthcare has made significant progress in both core technologies and
business presence laying a solid foundation for its next step forward.Centered on the two core capabilities of big data and large language model and the two major product
families Xunfei Healthcare has built a diverse AI-driven product system tailored to customers on three
sides: government business and consumer. The system aims to (1) empower cities in implementing smart
healthcare governance providing AI healthcare solutions to address government priorities such as primary care
services disease prevention and control and healthcare insurance efficiency improvement; (2) empower
hospital quality & efficiency enhancement delivering comprehensive AI solutions to improve medical quality
patient satisfaction and hospital operations management; (3) empowering personal health services offering
lifelong health management services including digital imaging post-diagnosis care and an AI-powered home
healthcare consultation & management app (iFLYTEK HealthBot) as well as home medical devices (smart
hearing aids).Figure 2: Overview of iFLYTEK's Smart Healthcare Business
2.1 AI-powered Clinical Assistant Products
2.1.1 Primary Care Services
AI Medical Assistant: As of December 31 2024 iFLYTEK’s AI Medical Assistant has been deployed in
more than 70000 primary care providers across over 670 districts and counties in more than 30 provinces
nationwide providing approximately 910 million AI-assisted diagnostic recommendations and standardizing
about 350 million electronic medical records. The system has issued warnings about and revised over 1.60
million medical records and identified 86 million inappropriate prescriptions. The reliability of diagnoses has
increased from about 90% in 2021 to 95% and the accuracy of prescription from about 93% in 2021 to about
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95% covering more than 1900 diseases and significantly reducing the risks of misdiagnosis missed diagnosis
and medication errors. China's vast territory of 2843 districts and counties offer enormous potential for AI
applications in community medical institutions and municipal levels so these AI medical assistants are poised
to enter a period of rapid development in the coming years.Chronic Disease Management: Xunfei Healthcare’s AI-powered chronic disease management system has
developed in compliance with China’s National Basic Public Health Services Program and national clinical
guidelines including the Guidelines for the Management of Hypertension in Primary Healthcare and the
National Guidelines for the Prevention and Control of Diabetes in Primary Care. iFLYTEK’s AI chronic disease
management system automatically assists family doctors with chronic disease screening stratification medical
follow-up personalized health education and automated lifestyle interventions as to supplement and facilitate
everyday chronic disease management services. This allows family doctors to focus on chronic disease
diagnosis and treatment and patient care effectively promoting the integration of medical prevention control of
chronic diseases and reduction of hospitalization rates for complications. During this reporting period the
system has been deployed in over 100 counties and districts across Gansu Anhui Jiangsu Hebei Liaoning
Zhejiang and Sichuan Provinces.
2.1.2 Hospital Services
Smart hospital solutions: Based on the upgraded foundational capabilities of iFLYTEK SPARK
iFLYTEK 's smart hospital solution has demonstrated increasing reliability and effectiveness leading to closer
collaboration with an increasing number of referral hospitals and medical companies. In April 2024 Xunfei
Healthcare West China Hospital affiliated to Sichuan University and Huawei entered into a tripartite strategic
cooperation agreement under which the three parties agree to deepen cooperation in key areas such as
innovative medical service models improving medical experiences and the application of large language model
capabilities in healthcare aiming to promote the development of AI in hospitals and enhance public healthcare.As part of this initiative a medical assistant system that provides comprehensive AI-powered solutions has been
deployed at West China Hospital as an industry benchmark which has provided 13 million services to date.Additionally Xunfei Healthcare provides hospitals with intelligent big data platform solutions that support an
integrated Data Lakehouse infrastructure empowering innovations in hospital operations and medical research.Currently deployed in pilot hospitals in Shenzhen and Beijing the platform has a storage capacity of over 10
billion records and processes 20 million real-time incremental updates daily. Three cohorts have been
established for population-specific disease research covering over 100000 patients.AI Diagnostic Assistant: Through sustained technology innovation Xunfei Healthcare assists hospitals
and doctors in diagnoses treatments and management of general and specialty diseases thereby enhancing the
efficiency and quality of services provided by referral hospitals and their doctors. Up to now iFLYTEK’s
Clinical Decision Support Systems (CDSS) designed for referral hospitals has covered more than 1700 diseases.The intelligent Venous Thromboembolism (VTE) system is capable of making intelligent assessments for over
170 items with a striking consistency rate of over 97% with senior specialists.
2.1.3 Regional Health Administration Solutions
Smart healthcare solution: After years of market expansion Xunfei Healthcare has got involved in the
establishment of infectious disease monitoring and early warning systems and emergency response platforms in
Anhui Henan and Qinghai provinces. In the coming years the Company plans to explore large language model
applications in disease control and prevention aiming to provide intelligent solutions for China's infectious
disease control and prevention.
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Additionally Xunfei Healthcare has applied large language model capabilities in healthcare data
governance and the development of health data with pioneering collaborative projects launched in Changning
District of Shanghai and Longhua District of Shenzhen.Smart medical insurance: Xunfei Healthcare actively responds to the institutionalization of DRG/DIP
payment by developing a comprehensive medical record analysis system to achieve smart medical insurance
management. Through leveraging artificial intelligence empowerment the system provides optimized insurance
management across the entire clinical process by analyzing the medical records and insurance settlement data of
the patients contributing to the full-cycle funding supervision of the National Healthcare Security
Administration. This addresses the critical challenges of limited manpower capabilities solutions and tools in
fund supervision improving regulatory efficiency and achieving systematic and standardized fund management.Currently iFLYTEK Smart Medical Insurance has entered into normal operations in Lyuliang (Shanxi
Province) and Pu'er (Yunnan Province) and has delivered services in Hefei (Anhui Province)
Guiyang (Guizhou Province) Wuzhou (Guangxi Province) and Jiujiang (Jiangxi Province) promoting
coordinated development and governance of medical insurance healthcare and pharmaceuticals.
2.2 AI Health Assistant Product Family
Committed to creating a health assistant for everyone Xunfei Healthcare has developed a spectrum of AI-
powered health assistant products based on its advanced core technologies including iFLYTEK SPARK and
voice interaction technology. It primarily focuses on four key areas: AI-powered post-diagnosis patient
management Xunfei HealthBot the imaging could platform and smart medical devices. By now the scope of
AI patient services has been extended to cover end-users supporting long-term and stable profitability and
growth.
2.2.1 AI-Powered Post-Diagnosis and Post-discharge Management.In recent years the Chinese government has increasingly focused on post-diagnosis and post-discharge
management. The Opinions on Further Improving the Medical and Health Service System issued by the
General Office of the CPC Central Committee and the State Council call for expanding the provision of post-
diagnosis services in rehabilitation and post-discharge care while the National Health Commission also
explicitly stated the need to strengthen post-diagnosis management and follow-ups to improve patient
experience.As a response Xunfei Healthcare’s AI-powered post-diagnosis patient management system has undergone
comprehensive upgrade and iteration based on iFLYTEK SPARK. This system can fully understand patients'
electronic medical records automatically collect key diagnostic and treatment information and generate
personalized rehabilitation plans based on evidence-based disease knowledge. Leveraging advanced
technologies including generative AI speech recognition and speech synthesis this solution enables an
interactive experience that is more seamless and natural benefiting doctors by assisting disease education and
rehabilitation guidance conducting regular health assessments with tailored lifestyle improvement plans and
altering doctors to potential risks identified from the feedback of the patient.As of December 31 2024 this post-diagnosis management system has been deployed in hospitals
including West China Hospital of Sichuan University Tongji Hospital affiliated with Huazhong University of
Science and Technology Beijing Tiantan Hospital and Beijing Tongren Hospital affiliated with Capital Medical
University Zhongnan Hospital of Wuhan University Zhongda Hospital affiliated with Southeast University
Shandong Provincial Hospital the First Affiliated Hospital of Henan University the First Hospital of Hebei
Medical University the Affiliated Hospital of Hebei University Gansu Provincial Central Hospital Ningxia
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Hui Autonomous Region People's Hospital and the First Affiliated Hospital of the University of Science and
Technology of China. Among them the coverage of post-discharge follow-ups in West China Hospital has
reached 100%. The same year also witnessed breakthroughs in market expansion at leading hospitals across six
provinces and autonomous regions Jiangsu Shandong Henan Hebei Gansu and Ningxia laying a solid
foundation for comprehensive promotion and rapid development of AI post-diagnosis management for 2025.
2.2.2 Xunfei HealthBot
On June 27 2024 the Company's app Xunfei HealthBot a personalized digital health assistant for
individual and family users was upgraded once again to meet the personalized needs in the healthcare field
with the release of the new feature of "personal digital health space". This "personal digital health space" is built
on individualized data such as electronic medical records and physical test reports. Before a patient visits a
doctor it can help analyze the causes of illnesses provide personalized judgments on drug contraindications
and give comparative data changes after examinations. By switching roles it allows understanding of other
family members' health conditions serving as a health assistant for every family member. In addition the core
capabilities of Xunfei HealthBot have undergone continuous upgrades to cover 1600 common diseases 2800
common drugs and 6000 common examinations and tests which can meet the major patient needs in pre-
diagnosis medication and post-examination scenarios.By December 31 2024 the app had already hit 20 million downloads with a 98% user satisfaction rate
and a 42% user referral rate. On March 3 2025 the health-specific large model X1 was officially integrated
into Xunfei HealthBot app enabling deeper interaction with users’ health records. This allows the app to deliver
more personalized practical and insightful recommendations to patients by analyzing their underlying health
conditions and anticipating their potential needs which marks another solid step towards a true AI health
assistant. This app did not generate revenues during this reporting period. Next step Xunfei Healthcare will
continue to explore the commercialization strategies of Xunfei HealthBot as a consumer-facing mobile app by
integrating professional medical services.
2.2.3 Imaging Cloud and Diagnostic Assistant Platform
Xunfei Healthcare has established China's largest regional cloud imaging platform that enables sharing and
mutual recognition of medical imaging data in Anhui Province which has provided data services over 112
million times. iFLYTEK has an imaging cloud and diagnostic assistant platform through which doctors from
hospitals at all levels from the same province can upload imaging results and access data and reports uploaded
by other institutions. This helps achieve medical data sharing reduces unnecessary repeated examinations and
prevents patients from undesired radiation exposure. The platform was designed to provide a range of services
including remote medical consultation digital imaging solutions health information system (Picture Archiving
and Communication System PACS) medical device and infrastructure services and AI-assisted diagnosis in
radiology.In October 2024 Xunfei Healthcare unveiled a medical imaging large model and an Intelligent Imaging
Assistant based on this new model. Featuring a deep integration of AI medical imaging technology this new
product leverages image recognition algorithms and medical cognitive intelligence to build a cross-institution
data interoperability system. It enables efficient sharing of massive image data through data compression and
transmission techniques and distributed storage significantly reducing unnecessary repeated imaging test and
costs to the minimum. It can assist medical professionals in multiple steps across the clinical process. In terms
of radiographic image quality assurance the AI assistant helps medical imaging physicians assess the image
quality and correct possible errors in medical examinations efficiently. It can also assist radiologists in rapidly
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generating diagnostic reports by tracking historical data and creating a comparative analysis of different phases.In the medical image analysis process it can offer doctors a reliable intelligent treatment plan through
intelligent interactions via its integration into the medical imaging large model. Building on the Company's
success in building China's first imaging data sharing and mutual recognition platform in Anhui Province.
2.2.4 Smart Medical Devices
By the end of the 14th Five-Year Plan period China's population aged 60 and over is expected to exceed
300 million transitioning the country from a mildly aged to a moderately aged society. Hearing loss is
anticipated to become increasingly prevalent among the elderly. In response to the growing need for hearing
care Xunfei Healthcare has developed AI-powered hearing aids as its core intelligent hardware products which
are sold to individual customers through e-commerce platforms. Equipped with Xunfei Healthcare's scenario
recognition system and proprietary scene recognition system known as "AI Scene" the hearing aid can monitor
users' surroundings in real time and amplify hearing or reduce background noise in response to the change of
the environment. The intelligent hearing aid was first released in 2022 with an upgraded deluxe version
launched in the same year. Thanks to its excellent performance intelligent experience and affordable prices it
has been highly recognized by the market and consumers. In April 2024 Xunfei Healthcare launched its new
series of hearing aids the Starlight Edition. This new series has a behind-the-ear design and fully upgraded
scene recognition technology featuring 64 intelligent channels 32 adjustable frequency points and a full-on
acoustic gain of up to 70 decibels meeting the needs of people with severe hearing loss. Powered by iFLYTEK
SPARK this latest intelligent hearing aid has led a new trend in the market.In December 2024 Xunfei Healthcare released the premium intelligent behind-the-ear hearing aids Pro
Bright Moon & Full Moon Series. By integrating advanced speech recognition technology these cutting-edge
products completely excel the previous versions in features such as multimodal subtitle assistance and deep-sea
level noise cancellation. The multimodal subtitling feature generates audio-to-text conversion in real time truly
making the sound visible to the users. As research shows audiovisual integration contributes to better speech
perception than auditory- or visual-only perception while the Bright Moon and Full Moon Series boast
extraordinary performance that enables individuals to achieve almost normal hearing.In 2024 iFLYTEK's hearing aids ranked among top three among all competitive products on China's two
leading e-commerce platforms JD.com and T-mall. They secured first place on T-mall and second place on
JD.com during the "618 Shopping Festival" on June 18 2024 and ranked second on both platforms in the
"Double 11 Shopping Festival" in November 2024. As of December 31 2024 the total sales of iFLYTEK's
intelligent hearing aids exceeded 140000 units.
3. Smart Automotive
The year 2024 was marked by rapid and steady growth in the Chinese automotive market with record-
breaking annual sales showing a sustained positive momentum and vitality of China's automotive industry.Both production and sales volumes remained above the 30-million-unit threshold with new energy vehicle
production and sales surpassing 10 million units for the first time. Automobile exports climbed up to new levels
and the market share of Chinese automotive brands continued its upward trajectory showcasing a market
landscape characterized by both growth and diversified development. With the steady development and
integration of foundational large language model capabilities a significant impetus has been injected into
automotive intelligence laying the foundation for a range of innovations including smart cockpits featuring
more versatile functionality and intelligent driving technologies that continue to emerge.
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Aiming to be a world-leading company in intelligent automotive services iFLYTEK offers industry-
leading products and technology solutions for real-world application including smart cockpits intelligent
interaction systems advanced audio technology and autonomous driving systems.Figure 3: Smart Automotive Business Empowered by iFLYTEK SPARK
During this reporting period iFLYTEK’s intelligent voice business experienced a comprehensive upgrade
due to the iteration of iFLYTEK SPARK. The Company's products featuring multilingual multi-dialect and
hyper realistic speech synthesis capabilities have been significantly improved to offer seamless and more
human-like interactive experience with overall iterations implemented through cloud collaboration via the
mainstream in-vehicle platform. Related product solutions have been offered through in-depth collaborations
with major domestic and international automotive companies such as Chery GAC Group Great Wall Motors
and Changan. On November 11 2024 the research project titled Deep Learning-based Vehicle Voice
Interaction System Development jointly submitted by iFLYTEK SYNCORE AUTOTECH Co. Ltd. and
Guangzhou Automobile Group was awarded Second Prize of the China Society of Automotive Engineers
Science and Technology Award.With the growing global demand for intelligent automotive solutions and the rapid expansion of China's
automobile exports the Company has accelerated its business deployment worldwide leveraging multilingual
interaction technologies to support the overseas customer expansion strategy. In 2024 iFLYTEK's voice
interaction products have supported 25 new foreign languages achieving comprehensive coverage in key
overseas markets such as the Middle East South America Europe and Southeast Asia. In the same year the
Company also completed iterative upgrades of core capabilities including the recognition engine and the
extended text-to-speech converter with multilingual support enhancing linguistic performance and service
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delivery efficiency. During this reporting period these new products have been adopted by several leading
automotive makers to support their overseas projects contributing to an unprecedented shipment in 2024 which
significantly boosts the Company's confidence in delivering advanced smart voice services to a broader global
customer base.In the realm of intelligent sound effects through independent R&D efforts the Company has developed a
premium smart automotive sound solution iFLYSOUND. This smart audio management system through deep
integration with voice vision and application ecosystems has revolutionized the vehicle sound experience
transitioning from single-dimensional and single-scenario to multi-dimensional and multi-scenario experience.It features an array of advanced audio technologies including virtual surround sound ultra-immersive spatial
audio technology voice cloning adaptive loudness compensation intelligent scenario-based gain control high-
fidelity audio in-vehicle communication enhancement active noise reduction advanced sound stage
management sound zoning technology soundproof walls AI-based multi-track processing hands-free karaoke
and the iFLYTEK SPARK Tuning Master. Additionally it offers comprehensive subscription services
encompassing sound library sound wave library sound effect library and function library. In 2024 a car model
equipped with the iFLYSOUND system won the Professional Group A championship at the International Car
Sound Challenge hosted by the International Auto Sound Challenge Association (IASCA).As of now iFLYSOUND has been adopted in over 60 car models from more than 10 Chinese and joint
venture automakers with the shipment doubled from the previous year.In the field of smart cockpits iFLYTEK launched an upgraded smart cockpit solution on June 27 2024
featuring innovative technologies including high-speed LLM-based interaction full-duplex intelligent
interruption multi-language/multi-dialect auto-switching hyper realistic emotional speech synthesis and an AI-
powered culinary assistant. Through scenario-specific capability design the Company continues to expand
intelligent agent applications for more diverse scenarios. On October 24 iFLYTEK launched its automotive-
specific large model with industry-leading response speeds enabling more convenient diverse rapid and
intelligent human-machine interaction.During this reporting period this model has been implemented in multiple car models from leading
Chinese automakers such as Chery and GAC which are gradually entering mass production and delivery. On
the hardware front based on advanced AI technologies iFLYTEK’s domain controller for the smart cockpit has
been applied in a range of new vehicle production projects with mass production planned over the next two
years.In the field of intelligent driving the Company has successfully developed advanced driver-assistance
system products such as highway NOA and memory parking without relying on high-precision maps. These
products have been adapted for mass production by mainstream domestic automakers. Leveraging the
foundational capabilities of iFLYTEK SPARK the Company has completed the development of the latest end-
to-end algorithms in automated driving with industry-leading performance.During this reporting period the Company's intelligent automotive business has experienced impressive
growth with a record-breaking shipment of 9 million pre-installations and cumulative shipment exceeding 63
million units. Its annual online interactions reached 13.6 billion a year-on-year increase of 36% and the
monthly active user base exceeded 25 million.During this reporting period iFLYTEK's technological and application achievements in the smart
automotive sector have received widespread industry and market recognition. The Company's key products
have won a range of prestigious industry awards including a special jury award at the fourth CMG "China
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Automotive Epic Ceremony" the "Pioneering Technology Award" for consumer vehicles granted by China
Automotive News the second prize at the 2024 BRICS Industrial Innovation Competition the excellence award
in the Smart Cockpit and Human-Machine Interaction category by SAE International the second prize in the
Science and Technology Award by the China Society of Automotive Engineers and the second prize in the
Science and Technology Progress Awards by the China Intelligent Transportation Systems Association (ITS
China).
4. Corporate AI Solutions
Leveraging its large language model iFLYTEK SPARK the Company provides comprehensive digital and
intelligent solutions for businesses local state-owned enterprises financial institutions telecom operators and
leading companies in various industries. During this reporting period the Company accelerated the
implementation of iFLYTEK SPARK across sectors such as telecommunications oil and gas and finance. It
developed a cost - effective efficient and easy-to-implement AI framework comprising a general large
language model plus industry-specific large models. To help businesses with their digital transformation the
Company integrates general AI into a tool chain thus creating a full-solution framework. It covers everything
from top-level AI planning to creating scenario value. The process includes building computing power
managing data training models implementing scenarios ensuring security and optimizing operations.As a strategic partner of the three major telecom operators iFLYTEK focuses on the key challenges in the
communications and information sector. These challenges include the urgent need for AI-powered products on
the supply side the demand for precise marketing services and the need for quality digital transformation on
the production side. Using its large model's iterative and scenario-expansion capabilities the Company aims to
provide innovative 5G-AI integrated products and solutions for the three main customer groups of telecom
operators: individuals households governments and businesses. At the same time it enhances internal
management. This helps operators achieve full digital transformation and high-quality development promoting
win-win business and cooperation outcomes.* For individuals the Company is leveraging the phone call large model and capabilities for various call
scenarios from operator customers to drive innovation in new 5G calling experiences. The Company has
launched a suite of innovative products: AI Notetaker the world's first app combining traditional calling
with AI offering new communication solutions for industry and public users; AIGC Video Ringback
partnering with Migu as one of its first AI capability partners; and AI Secretary which upgrades operators'
voicemail products with AI and becoming the first consumer product to scale up through offline marketing.These new products integrate and work synergistically with existing services to form a powerful AI-driven
product matrix. Throughout the year these products gained 20 million new subscribers effectively
supporting the implementation of the operators' AI product strategy.* For families iFLYTEK has worked with carriers to build a smart home system assisting family users in
upgrading their interaction modes and establishing a comprehensive ecosystem. Our voice interaction
solutions for the telecommunications sector have expanded from traditional set-top boxes to core products
such as China Mobile robots family computing hosts FTTR sensory storage and computing all-in-one
devices and AI cameras aiming to create a new intelligent life ecosystem. Moreover utilizing the
capabilities of its education and medical models the Company upgraded products like AI Family Doctor
and Xunfei Lexue to meet family users' needs providing personalized intelligent services to each family
member in education and healthcare. During this reporting period the number of family voice users
exceeded 150 million with total voice interactions surpassing 90 billion.* For enterprises leveraging the core capabilities of the iFLYTEK voice model and the Spark model we
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assist operators with their internal digital transformation by addressing high-frequency and immediate
needs focusing on intelligent customer service smart installation and maintenance intelligent marketing
and digital employees. We serve nearly 200000 internal employees alongside almost 300 million
individual users and 200 million broadband customers. Additionally based on its home-grown large
language model iFLYTEK SPARK the Company has driven the development of intelligent computing
centers by the four major operators in pilot provinces.In the oil and gas industry the Company focuses on the needs of digital transformation in this sector.Based on its large language model the Company has established a matrix of large models for key business areas
including oil and gas chemicals and new materials. Concentrating on oil exploration refining sales and
research the Company offers more than ten scenario-based solutions such as intelligent decision-making for
production command predictive maintenance for equipment oil and gas market analysis and a platform for
new materials research and development. As of 2024 the total value of signed large language development
contracts for PetroChina Kunlun Large Model CNOOC HaiNeng Large Model and Sinopec Large Language
Model is close to 100 million RMB yuan. In the metallurgical industry in 2024 the Company partnered with
Baosteel to build models with varying parameters and intelligent agents continuously exploring the application
of business scenarios across research production supply marketing sales services and management.In the financial sector the Company has deeply collaborated with leading banks insurers and brokerages
to jointly explore the development of financial large model capabilities and application scenario innovations. It
has built product applications for six major areas: smart marketing risk control customer service office
management software development and intelligent operations. The Company has worked with the Industrial
and Commercial Bank of China to boost large model application in operations and office management. It has
joined hands with the Bank of Communications to develop over 50 AI-powered financial scenario apps which
cover key areas like zero lending risk control and financial markets and strengthen the bank's digital
capabilities. Additionally it has also developed a work order assistant with the Agricultural Bank of China that
handles intent recognition automated summarization and precise recommendations. In collaboration with PICC
Group the Company has developed an intelligent inquiry system supporting more than 30000 insurance agents.The Company co-created the Guoyuan Investment Banking Big Model with Guoyuan Securities which enables
fully automated recognition and editing of investment banking documents and improves the efficiency of
verification and review processes. To boost retail banking digital transformation the Company has successfully
implemented the "AI+Strategy+Channel" integrated solution across over 20 operating bureaus.As of December 2024 iFLYTEK has jointly launched industry-specific models with over 20 leading
enterprises including PetroChina CNOOC China Resources Green Development Bank of Communications
and PICC covering more than 300 application scenarios. According to third-party data in 2024
iFLYTEK ranked first in both the number of winning bids and the total contract value for its large models
encompassing a diverse range of industries such as telecommunications finance energy education government
affairs and healthcare.During this reporting period the Company actively shared its experience in large model development with
the industry promoting the healthy development of the large language model sector. iFLYTEK SPARK
received a "Large Language Model Safety Evaluation Certificate" one of the first of its kind from the China
Software Testing Center (CSTC) which is the top-level certification for LLM safety capabilities at present and
jointly formulated and released the industry standard "Technical Specifications and Application Requirements
for Intelligent Software Engineering Part 1: Code-based Large Language Model" with the Key Laboratory of
Artificial Intelligence Key Technologies and Application Evaluation. The iFLYTEK SPARK Intelligent Agent
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Platform has successfully passed the evaluation by China Academy of Information and Communications
Technology (CAICT) and become the first platform in China to meet the relevant standard and obtain the
highest-level certification. The Company has actively developed large language model standards and conducted
industry research for the financial sector. It has led the formulation and publication of the first Chinese large
language model standard for the banking industry. Covering aspects like scenario richness capability support
and application maturity this standard provides a reference for evaluating the technical and application
effectiveness of banking industry large models. The Company worked with Sunshine Insurance Tsinghua
University's PBC School of Finance the Insurance Society of China and other groups to release the "White
Paper on Deep Empowerment of the Insurance Industry through Large Model Technology 2024." This white
paper explores how large language models can be utilized in insurance and its value chain. Also the Company
and China Merchants Bank along with the Institute of Automation of the Chinese Academy of Sciences
launched evaluation benchmarks for digital finance. These benchmarks cover six scenarios and 69 financial
tasks aiming to build a comprehensive and scientific evaluation system for large models in digital finance.During this reporting period the Company partnered with CMCC to win the 5G Messaging and New Call
category first prize at the seventh "Bloom Cup" 5G Application Competition hosted by the China Academy of
Information and Communications Technology (CAICT). The Company was recognized as a "Pioneer Case for
Artificial Intelligence+Telecommunications" by CAICT for both the Empowered Intelligence Group and the
Smart Intelligence Group. It also received the Scientific Progress Award from the China Communications
Association among other accolades.
5. Smart City
5.1 Digital Governance
During this reporting period the digital governancet business division accelerated the integration of the
foundational capabilities of iFLYTEK SPARK significantly enhancing the competitiveness of its products and
solutions. The Company continued to strengthen the construction of urban governance large models and
developed a comprehensive solution framework for urban digitalization. Then Company has successfully rolled
out government-focused large language model applications in multiple regions nationwide. These projects
encompass a wide range of applications including official document drafting intelligent Q&A and processing
comprehensive window assistance and website interaction. The launch of the LLM-enabled Smart Office All-
in-One Machine covers over 4500 standardized matters and related policy documents and more than 60 types
of ticket materials. It can quickly review and upload administrative documents and provide risk alerts. This
helps staff at comprehensive service windows efficiently manage document receipt reducing review time by 80%
and boosting registration efficiency by five times. The digital government division has built a full-solution
system across three key areas: government services business environment and duty performance by authorities.This effectively supports application scenarios such as urban governance data spaces industrial parks and the
digital economy.
5.2 Smart Judiciary
During this reporting period the Company fully implemented the strategy of integrating large language
models with legal applications. It enhanced data construction within the judicial industry and the annotation of
scene data. The Company released version 2.0 of the iFLYTEK SPARK legal model which included 12
industry capabilities. According to dataset evaluation their average performance improved from 71.4% in
version 1.0 to 87.9% in version 2.0. Additionally the legal voice and graphic large model were updated
simultaneously. The Company has partnered with the Supreme People's Court on the "12368" hotline and
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complaint service. During its pilot run in several provinces it successfully received over 7 million incoming
calls. It achieved a 60% diversion rate and a 65% boost in complaint registration efficiency. The Company has
also collaborated with various political and legal authorities across provincial regions such as Zhejiang Beijing
Shanghai Anhui and Shaanxi to explore large language model applications comprehensively. The Company's
transcript streamlining service has been promoted in over 30 courts boosting transcript production efficiency by
60%. Meanwhile paperwork generation was piloted in Anhui and Sichuan raising efficiency by 90% for simple
documents and 30% for complex ones. Moving forward the Company will keep enhancing its legal large
model's foundational capabilities and boost the efficiency of applications. The Company aims to develop a
comprehensive suite of case-handling tools including complaint registration and judgment a hotline service
file reading assistance evidence examination transcript streamlining and document creation. Ultimately the
Company aims to create a personalized AI case-handling assistant. This will improve the quality and efficiency
of case resolution and ensure fairness and justice for every case.★ AI Open Platform
iFLYTEK Open Platform continues to lead the AI developer ecosystem. It has achieved remarkable results
in implementing large model applications and enabling ecosystem development. The platform drives AI
technology innovation and application while empowering numerous industries.
6.1 API Developer Services and Digital Marketing Services
As at the end of this reporting period the iFLYTEK Open Platform has launched 806 AI capabilities and
solutions attracting over 8.02 million AI developer teams and supporting the development of more than 2.94
million production-grade AI applications. Over 2.24 million new AI developer teams have joined within one
year. The platform has also supported more than 460000 overseas developer teams. The number of large
language model developers has reached 1.02 million who have created 170000 practical large model
applications. Daily large model API calls have increased by over 763% year on year. Based on public market
data the platform is now the largest ecological platform for large model developers in China. In addition a
report titled "China's Speech Semantics Market Share: How Large Language Models Create New Opportunities
for AI Growth" from IDC shows that iFLYTEK ranks first in China's speech semantics market.The iFLYTEK Open Platform has worked closely with leading companies to build industry solutions that
cover a wide range of application scenarios such as office and customer service bidding and procurement
contract management employee training scientific research and programming assistance. These solutions are
widely adopted in sectors including the internet advanced equipment manufacturing robotics energy
telecommunications and rail transit where iFLYTEK holds the largest market share in sectors like the internet
robotics and rail transit.To meet a broader range of industry needs the iFLYTEK Open Platform integrates upstream and
downstream resources through the AI service market facilitating partners in creating a closed business loop. So
far 1280 preferred AI service providers have joined with the registered companies exceeding 130000 and the
overall turnover surpassing 1 billion RMB yuan. The three-year compound annual growth rate for turnover has
reached 120%. Leveraging the foundational capabilities of iFLYTEK SPARK as an engine of new productivity
the iFLYTEK Open Platform continues to develop scalable product solutions tailored for specific industry
scenarios creating statistically significant value with competitive advantages.As deputy chair of the National Robot Standardization Technical Committee's Humanoid Robot
Standardization Working Group iFLYTEK's robotics super brain platform provides AI technology services for
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robotics companies. With a focus on human-computer interaction and embodied intelligence it has introduced
the world's first multi-person multimodal noise reduction technology and the industry's first humanoid robot
interaction capability significantly enhancing robots' multimodal interaction abilities. Currently over 90% of
domestic intelligent robotics companies utilize the integrated software and hardware solutions from iFLYTEK's
Super Brain Platform with 60% adopting the full-link interaction solution.iFLYTEK's Virtual Human Platform secured the most virtual digital human development contracts in 2024.The platform launched the first super-anthropomorphic digital human which excels in accuracy naturalness
and overall performance. It successfully passed the basic ability grading test for large language model-based
digital humans conducted by the CAICT Artificial Intelligence Research Institute achieving one of the first L5
certifications in China.To meet the diverse and personalized needs of developers iFLYTEK SPARK has established a
comprehensive customizable intelligent agent creation center. This allows developers to create personal
assistants with zero coding enabling them to efficiently build large-model native applications tailored to
specific business scenarios. To enhance the effectiveness of applying models in specific fields iFLYTEK
SPARK has developed the Xingchen Model as a Service (MaaS) Platform. This platform allows developers to
fine-tune models easily by simply building relevant business domain-specific data. Additionally it offers model
evaluation and release features allowing assessed models to be swiftly launched as services for effective
application in real-world business scenarios. By the end of this reporting period developers on this platform had
created 44000 customized intelligent agents to address niche market needs making it the leading platform in
the industry. This platform has trained 18442 models making the largest fine-tuning platform adapted for
domestic computing models. With these initiatives iFLYTEK SPARK has begun to establish a new system for
developing native applications on large models enabling developers to achieve the maximal value of large
model applications and drive product innovation and business growth.Key progress has been made in the overseas business of the iFLYTEK Open Platform achieving global
service coverage with localized operation teams established in East Asia Southeast Asia the Middle East and
other regions. The platform has successfully implemented projects across industries including government
affairs education finance and telecommunications in collaboration with governments state-owned enterprises
and industry leaders in countries such as Saudi Arabia and Singapore.The iFLYTEK AI Developer Competition has been successfully held for seven consecutive years and has
established itself as the leading competition event and a platform in the AI industry boosting innovation in
algorithms and product applications across its ecosystem. An important pillar of this competition is the
iFLYTEK SPARK Cup Large Model Application Innovation Contest. In the past year it attracted participation
from 1656 student developers representing 533 universities worldwide setting a new record for collegiate
involvement in the industry. The Competition organizer collaborated with 30 research institutions including
Tsinghua University and the University of Science and Technology of China along with 44 companies and
organizations releasing a total of 108 competition questions. The past year’s competition drew 35268 teams
from 348 cities across 14 countries with 9372 of the participating projects directly related to large model
development. The multi-track large-scale high-caliber competition along with its aim at real-world scenarios
has further promoted the cultivation of talent in the sector and sparked innovations in products and technology
development.In the field of digital marketing iFLYTEK's AI marketing business has leveraged its robust competitive
advantage built upon foundational AI technologies and big data to achieve continuous growth in both revenue
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and market share while exploring opportunities in additional business directions. For domestic brand promotion
iFLYTEK conducts comprehensive cooperation with six major international 4A agencies through the
continuous evolution of AI algorithms and product solutions establishing multiple key account benchmarks
across various industries. iFLYTEK has attained over 80% share of the domestic performance market through
collaborations with e-commerce platforms online services and smartphone manufacturers further increasing
its market share. The Company’s overseas advertising business has also achieved a significant scale
breakthrough. Leveraging the advantages offered by AI algorithms its e-commerce client base has experienced
rapid growth in both new business and Cost Per Sale (CPS) business spanning major e-commerce platforms in
Southeast Asia Europe and the United States. At the same time it is actively building an overseas traffic
ecosystem by fostering partnerships with international developers and leading aggregation platforms reaching
over 2 billion overseas users daily. It has also established agency agreements with top international mediaplatforms (such as Google Facebook and TikTok) and smartphone manufacturers earning the “Best OverseasMarketing Platform of 2024” title awarded at the i-China Forum. As it continues to upgrade its proprietary
large language model iFLYTEK SPARK provides new momentum for its marketing solutions. The iFLYTEKmarketing assistant built on this general large language model won the Golden Mouse award for “Best DigitalMarketing System of the Year.” Additionally the iFLYTEK marketing video creation platform also based on
the large language model received the "Most Promising Generative Video Creation Platform of 2024" award
laying a solid foundation for AI marketing and creating new business opportunities.By adhering to the open concept and running on the dual wheels of “ecosystem construction and business-specific development” the iFLYTEK Open Platform continues its long-term sustainable development fostering
an innovative autonomous controllable secure and vibrant new ecosystem.
6.2 Open Platform Service for Businesses
* iFLYREC (SaaS+Meetings)
During this reporting period iFLYTEK's Smart Office SaaS platform centered around iFLYREC covered
200 million ecosystem participants with 82 million actively engaged users. The platform served over 3000
corporate clients and collaborated with Hubei Telecom ICBC and others.Deepting the international version of iFLYREC has garnered over 1.2 million users across Europe
Southeast Asia Japan and South Korea. iFLYREC smart office products have been successfully implemented
in the Legislative Council of Hong Kong receiving high praise from the Hong Kong media. Xunfei Writing has
been well-recognized by a large number of learners. The annual gross profit of the iFLYREC app increased by
60%. The iFLYREC simultaneous interpreting service supported more than 1800 high-level conferences
involving over 5000 translators/interpreters and more than 600 translation specialists serving over 10% of the
companies listed in the Fortune 500. Additionally new registrations for the Simultaneous Interpretation SaaS
platform increased by 168% year on year.The iFLYREC smart office solution won the “2024 2024 National Top 10 Cases of Digital Empowermentfor Enterprises” title from the Zhongguancun Digital Economic Industry Alliance. The iFLYREC app ranked
first in transcription efficiency on the Apple App Store and was the leading AI product for original content
creation. iFLYREC has provided AI services for major events including the China International Import Expo
the China International Aviation and Aerospace Exhibition (Airshow China) the China International Fair for
Investment and Trade the Zhongguancun Forum UNESCO and GITEX GLOBAL in the UAE.In terms of product innovation the iFLYREC simultaneous interpreting service has introduced a new
software-hardware integrated simultaneous interpreting headset allowing users to experience immersive AI
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interpretation at international conferences. Additionally partnerships have been established with several
national museums and international tourist attractions. The international version of the iFLYREC simultaneous
interpreting service covering English Japanese Korean Arabic and Chinese Mandarin are now available
supporting the deployment of all-in-one machines and SaaS in Europe and the Middle East.iFLYREC in collaboration with the National Association of the Deaf and the China Disabled People's
Performing Art Troupe has launched the “Hearing the Voice of AI” public welfare initiative now entering its
sixth year. This initiative has donated free transcription services over 200 million minutes to hearing-impaired
users and has been implemented in partnership with UNESCO and the National Institute for Deaf Youth in
Paris. During the Spring Festival Gala in the Year of the Snake (2025) CCTV launched its first barrier-free
broadcast on small screens allowing hearing-impaired individuals to enjoy the gala through real-time subtitling
enabling them to share the joy with their families.* Digital Employees
During this reporting period iFLYTEK adhered to the scenario-driven and AI-enabled approach
facilitating companies in accelerating their digital transformation and upgrade. Leveraging advanced AI
technologies the Digital Employee product underwent a comprehensive upgrade now featuring a brand-new
offering.The iFLYTEK SPARK Intelligent Bid Evaluator (also known as Chief Digital Bid Evaluator) constructs a
proprietary intelligent bid evaluation model for companies. This tool assists procurement personnel in quickly
identifying anomalies mitigating compliance risks and improving both the efficiency and quality of bid
evaluation. It serves clients in the energy industry facilitating the intelligent upgrade of their procurement
processes.The iFLYTEK SPARK Quick Answer (a multifunctional Chief Digital Presentation Officer) integrates
foundational large model technologies such as virtual humans knowledge bases and multimodal capabilities. It
enables seamless communication during exhibitions and trade shows summarizes user profiles and empowers
every marketing initiative. This solution supports clients like the Boao Zero-Carbon Digital Intelligence Science
and Technology Park by promoting concepts of zero-carbon technology and smart living thus enhancing the
Company’s brand image.The iFLYTEK SPARK Intelligent Contract (Chief Digital Contract Officer from Rhinoceros Insight)
leverages the core capabilities of the Spark large model to create intelligent solutions for the entire lifecycle of
contract management. This innovation generates value for enterprise contract management reduces business
risks and serves clients such as China Huaneng Group Company Limited by automating contract settlements
and improving efficiency in contract management while minimizing disputes.The iFLYTEK SPARK Digital Workforce Platform (Digital Productivity for Everyone) builds lightweight
applications for digital workers that efficiently handle tasks such as process automation and data analysis
significantly enhancing business productivity and innovation. It supports clients like the China Classification
Society by enabling cross-system data flow greatly improving maritime work efficiency.During this reporting period the iFLYTEK SPARK Bidder (also known as Chief Digital Bidding Officer)
was launched. Utilizing the large language model's foundational technologies it can efficiently generate high-
quality bidding documents by analyzing and aligning with requirements contained in bidding documents. It also
automatically checks the completeness of documentation and the logical consistency of the content thus serving
as a professional and reliable bidding assistant that improves the success rate of bids.
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* Businesses knowledge base
The Spark Knowledge Base leveraging RAG's document Q&A capabilities provides knowledge
management and efficient application solutions for enterprises throughout the entire process of knowledge
organization processing mining application and management. It has already served more than 70 enterprises
across 12 industries. By deeply integrating internal knowledge resources the Spark Knowledge Base transforms
previously scattered and static knowledge into dynamic and reusable enterprise knowledge assets effectively
activating business vitality and innovating scenario solutions such as “Spark Training Companion” “SparkQuality Inspection” and “Enterprise Persona.”
The Spark Training Companion simulates real-life scenarios and evaluates employees' performance across
multiple dimensions enabling employees to enhance their skills through interactive training exercises. It has
served leading companies such as BYD Group China Mobile with an average of over 10000 training sessions
per day per company. The Spark Quality Inspection offers comprehensive quality inspection and analysis
services for text and audio helping enterprises standardize customer service language effectively. Relying on a
pioneering role separation algorithm (with an accuracy rate of 96%) an industry-specific transcription engine
(with an accuracy rate of 97%) and multi-scale semantic QA technology it ensures 100% quality inspection
across customer service telemarketing and live broadcasting scenarios. Additionally it delves into user
demands to drive continuous optimization of marketing decision-making.The Enterprise Persona based on a customized character simulation model derived from the Starfire large
model vividly simulates the worldviews values contextual memory personalities and language styles of
different characters. This enables the creation of unique personas and provides an immersive dialogue
experience for users. It finds broad applications in areas such as IP derivatives smart hardware toys virtual
characters entertainment and the metaverse. In the initial batch of double-blind user experience tests for C-end
users the Starfire Persona Model demonstrated a clear lead in areas such as anthropomorphic expression style
transfer and plot continuity.★ AI Consumer Businesses
The consumer business consistently prioritizes consumer needs by focusing on the immediate requirements
of users. It is dedicated to creating more convenient and smarter consumer products and services. Empowered
by the Spark Large Model the consumer business has accelerated the practical application of AI technology in
both hardware and software products while continually updating and iterating efficient and user-friendly
offerings. This commitment has reinforced its status as an industry leader.During this reporting period iFLYTEK SPARK contributed to remarkable achievements in AI hardware
sales. GMV increased by 43% year on year during the entire June 18 Shopping Festival and by 51% year on
year during the Double Eleven Shopping Festival. Across multiple product categories including smart office
notebooks translators and recorders iFLYTEK ranked first in their respective industries on platforms such as
JD.com T-mall and Douyin. User satisfaction and product ratings have continued to rise attracting a broader
consumer base. In the software sector products like the iFLYTEK Input Method and iFFLYREC have been
continuously upgraded through deep integration with the large language model. New native applications such as
iFLYTEK Zhiwen iFLYTEK Zhizuo iFLYTEK Huiwen and iFLYTEK Huijing have been launched
significantly enhancing user experience and providing efficient and convenient services to over 150 million
users.Throughout this reporting period the consumer business has intensified its efforts to expand into overseas
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markets establishing a strong presence in the Asia-Pacific region the Middle East Europe and North America.Several consumer hardware products including the international edition of Translator 4.0 Voice Recorders
SR302Pro and SR502 and Office Notebook AINOTE Air2 were successfully launched overseas and the
iFLYREC APP surpassed one million international users. Revenues from overseas advertising services saw a
remarkable year-on-year growth of 367% thereby establishing a global presence. Additionally revenues from
B2B licensing business grew by 104% year on year. The framework for overseas localization has begun to take
shape with improvements made to the supporting systems for overseas channel cooperation brand marketing
after-sales customer service and local offices. The overseas expansion in e-commerce has been aggressively
pursued laying a solid foundation for the Company's international growth. Furthermore the consumer business
has actively participated in large-scale exhibitions and market events abroad. At events such as the Mobile
World Congress in February 2024 and the GITEX in October numerous media outlets highlighted iFLYTEK
accelerating the dissemination of its international brand influence.* The iFLYTEK SPARK" app
During this reporting period the iFLYTEK SPARK app through four significant upgrades continued to
benchmark against ChatGPT-4 Turbo and ChatGPT-4o establishing its position as a leading large model
application in China and recording over 200 million downloads in the Android market and numerous industry
accolades including the HarmonyOS Next and the annual Focus Product (36 Kr). In addition this app ledindustry innovation by being the first to introduce unique features such as “Super Anthropomorphic DigitalPerson” “Personal Space” and “Light Applications” enabling personalized and specialized content generation.This app continues to evolve in response to the learning and work needs of college students and office
workers. By the end of this reporting period the app had provided access to more than 48000 intelligent agents
allowing everyone to easily build their own AI assistants and promoting the practical application of the general
large language model. To empower professional users and enhance productivity the iFLYTEK SPARK app
launched several office-oriented intelligent agents including iFLYTEK Zhiwen iFLYTEK Huiwen and
iFLYTEK Zhizuo which collectively create a new paradigm for workplace efficiency. iFLYTEK Zhiwen can
intelligently generate high-quality PPT presentations with a single click achieving a document download rate
exceeding 73%. It boasts over one million active users and 1.5 million corporate users and has been recognized
as the most popular AI document product among college students according to Xinjing Daily. In media writing
iFLYTEK Huiwen has become a comprehensive AI creation platform providing end-to-end services from topic
selection and graphic generation to publishing and data tracking. It has over one million active users and has
produced a total of 10 million articles earning the WISE2024 Best User Experience and Product Innovation
Award. In the realm of virtual humans iFLYTEK Intelligent Work can create super anthropomorphic avatars
from a single photo with expressions lip movements and gestures generated automatically by its large
language model. This technology has been widely applied in media news educational materials business
marketing and short video production amassing over 4.5 million users. It also received the First Prize in the
Media Convergence Technology Innovation Track at the Third New Audiovisual Media Convergence
Innovation and Creativity Competition 2024.* iFLYTEK Smart Office Notebook
During this reporting period iFLYTEK's smart office notebook series maintained their leading position in
the ink-screen category. Research reports indicate that iFLYTEK ranked first in the 2024 the shipment volume
through both online and offline channels. Notably its market share of offline sales exceeded 80%. During the
June 18 and Double Eleven shopping festivals this series claimed the top spot in total sales across major online
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platforms such as JD.com T-mall and Douyin for four consecutive years.During this reporting period the Company's flagship portable product the “Smart Office Book Air2”
became an instant bestseller upon launch achieving a 160% increase in sales compared to the same period when
the initial Smart Office Book Air1 was launched. Additionally the iFLYTEK smart office notebook series
further integrated with iFLYTEK SPARK leading to the launch of DUI5.0. This enhancement led to the launch
of several innovative features including meeting minutes knowledge management and a listening assistant
which significantly improved user engagement and brand reputation. The product received over 98% positive
feedback on the e-commerce platform laying a solid foundation for future user acquisition. In the reading
category the Company launched a new consumer product the “Youth Reading Book S2” which aims to create
a new joint reading experience between schools and families. The effectiveness of this reading solution has
been well recognized by both educational institutions and parents.During this reporting period the Company also began exploring opportunities in the global market. The
Company launched the “Smart Office Book Air2 International Edition” specially developed for international
consumers. This version supports multiple languages including Chinese English Japanese and Korean. It has
been marketed and sold in countries such as Japan Singapore and the United Arab Emirates as well as on
international online platforms like Amazon. The Company have received valuable feedback and recognition
from overseas users which will support the next phase of product upgrade and marketing.Figure 4: iFLYTEK Smart Notepad Air2
* iFLYTEK Translator
During this reporting period iFLYTEK Translator's sales increased by 30% year on year maintaining its
leading position in the Chinese market. Due to more and more Chinese companies expanding overseas the
demand and sales for iFLYTEK Translators have risen significantly. As a productivity tool the Translator
supports Chinese businesses in their global endeavors and its accurate and efficient translation capabilities have
made it widely applicable in international business negotiations international conferences overseas travel
study abroad and similar scenarios. The product has received high recognition and praise from users. Notably
iFLYTEK Translator 4.0 with its precise fast and professional translation capabilities won the 2024 Better
Design Award representing the highlight of “Chinese Design.”
By leveraging the core capabilities of iFLYTEK SPARK including recognition and translation iFLYTEK's
Dual-Screen Translator and Translator 4.0 have undergone four major upgrades. These enhancements have
significantly improved the product's automatic language detection capabilities recognition accuracy and
overall usability. The iFLYTEK Translator 4.0 Spark Edition launched in October incorporates the advanced
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capabilities of iFLYTEK SPARK greatly enhancing the product's competitiveness and user experience with
positive reviews on e-commerce platforms exceeding 98%.The iFLYTEK Translator has also performed remarkably in overseas markets achieving a year-on-year
200% increase in sales while user satisfaction continues to rise. In 2024 the iFLYTEK Translator showcased
its exceptional performance and innovative features at international exhibitions such as MWC in Spain and
GITEX in Dubai earning widespread accolades.Figure 5: iFLYTEK Translator 4.0 Spark Edition
As a leading AI company iFLYTEK has collaborated with ecosystem partners on the Open Platform to
create the world's first multilingual AI transparent screen which supports accurate real-time translation across
14 commonly used international languages. Following its launch on October 24 the product received strong
interest and has been implemented in numerous airports subways hotels tourist attractions banks government
centers and other service points across the country. It has also been exported to Southeast Asia and the Middle
East.Figure 6: iFLYTEK Multilingual AI Transparent Screen
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iFLYTEK Smart Recorder
During this reporting period iFLYTEK’s Smart Recorders continued to lead the smart recorder industry
securing the top sales position on JD.com and T-mall during the June 18 Shopping Festival for the seventh
consecutive year.The iFLYTEK AI Voice Recorder built on iFLYTEK SPARK can not only summarize meeting minutes
extract key information and generate to-do items but also draft official documents news articles and other
written materials significantly enhancing users' work efficiency. In foreign language classes and presentations
the simultaneous translation feature outputs translated speech through headphones to help users understand
quickly making it a powerful office work and learning assistant.In December the new flagship model the iFLYTEK AI Voice Recorder S8 Offline Edition was officially
launched. This model is a safe and reliable intelligent office product. It supports recording and transcribing in
five languages and seven dialects as well as translating four foreign languages into Chinese effectively
meeting the information recording needs for confidential meetings research and evidence collection.Additionally it features an independent security chip and uses GM/T encryption algorithms for file protection
ensuring enhanced security.In 2024 the Company continued to expand into overseas markets with product sales increasing by 100%
year on year and steadily improving user reputation. The user base has now extended to 200 countries and
regions worldwide including Asia Europe and the United States.Figure 7: iFLYTEK AI Recorder S8 Offline Version
* iFLYTEK Input Method
In 2024 iFLYTEK released the iFLYTEK SPARK Input Model enabling offline prediction of user input
results and achieving offline speech recognition performance close to cloud services. The iFLYTEK SPARK
Voice Model empowers 202 dialects to facilitate switch-free voice input. The platform has built a diverse and
open AI assistant content ecosystem accelerating the application of AI models and ranking first in the large
language model-based input method industry. During this reporting period the monthly active user base in the
open market for iFLYTEK Input Method increased by 7.6% year on-year maintaining the highest growth rate
in the industry. The effectiveness of AI voice input continuously improves with the average daily number of
voice calls increasing by 19.2% year on year. For seven consecutive years iFLYTEK Input Method has been
deeply engaged in the Dialect Protection Program harnessing the power of AI to support cultural inheritance
and preservation. The program collaborated with the China Three Gorges Museum in Chongqing to hold the
Hear and See: Chinese Culture Embodied in Chinese Characters exhibition which received the 2024
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Outstanding Case of Excellent Public Relations award from the China Public Relations Association and was
recognized by Times Weekly as the “2024 Public Service Project of the Year.” Through its deep integration
with iFLYTEK SPARK iFLYTEK Input Method significantly enhances user experience creating an AI input
solution for everyone.* iFLYTEK Music
In 2024 iFLYTEK Music released over 8000 songs and entered into contracts with more than 1500
musicians developing the music MCN business and onboarding over a hundred celebrities. In the same year
the Company organized and invested in more than 200 various performances collaborating on concerts with
artists such as Zhang Liangying Zhang Xinzhe Alin and others while incubating its own performance brand
"Dharang Dara." iFLYTEK Music will continue to innovate in the AI+music product space; the AI+Lyric
Selection Model supports the promotion of high-quality lyrics and songs and AI virtual singers have made
appearances on television stations CCTV stages and in science and technology museums. Strategic
partnerships have been established with Anhui Transportation Radio Wuhan Conservatory of Music Kuaishou
Music and China's Digital Music Industry Base further enhancing the industry's influence.III. Competitiveness Analysis
iFLYTEK a pioneer in China's artificial intelligence industry has cultivated deep expertise in AI over
twenty-five years developing significant competitive advantages:
1. Internationally Advanced Core AI Technologies
iFLYTEK remains strongly committed to creating core technologies keeping its key AI technologies at the
international forefront. In recent years despite being included in the US Entity List iFLYTEK has stuck to the
principle of self-reliance and autonomy. It has excelled in various international evaluations including speech
recognition machine translation natural language understanding image recognition image comprehension and
machine reasoning. The Company continues to achieve fruitful innovations in deep learning and has leading
framework and platform support forr hardware. On June 24 2024 iFLYTEK received with honor the first prize
of the State Science and Technology Award for 2023 in Beijing as the leading contributing entity for its
successful "Multilingual Intelligent Speech Technologies and Industrialization" project the first AI project to
win such an honor since the global AI boom ignited by deep learning.iFLYTEK has accumulated substantial R&D strength in cognitive large language models and continues to
achieve technological breakthroughs and innovations. During this reporting period on June 27 2024 iFLYTEK
upgraded its large language model iFLYTEK SPARK to Version 4.0 and on October 24 iFLYTEK SPARK
4.0 Turbo was released. Surpassing ChatGPT-4 Turbo in all seven core capabilities this new version excelled
ChatGPT-4o in mathematical and coding abilities achieving nine first-place rankings in 14 Chinese and English
mainstream test sets both domestically and internationally. iFLYTEK SPARK is still the only general large
language model available for public download that is trained on a wholly Chinese computing platform. Its deep
reasoning model Version X1 is also the only model of its kind trained entirely with domestic computing power.In terms of standards iFLYTEK actively participates in and holds key roles in multiple national
standardization groups. Additionally it serves as the deputy chair of the National Robot Standardization
Technical Committee’s Humanoid Robot Standardization Working Group. iFLYTEK is also a member of the
first council of the National Data Standardization Technical Committee which is guided by the National Data
Bureau and sits on the first council of the Ministry of Industry and Information Technology's Artificial
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Intelligence Standardization Technical Committee. Furthermore it is a member of the Ministry of Education’s
Education Informatization Technical Standards Committee. Beyond these roles iFLYTEK is in charge of
setting up China’s only National Technical Standards Innovation Base in the intelligent speech sector. By the
end of 2024 iFLYTEK had led or been part of over 150 international and national standard-setting and revision
projects. Of these three international standards 53 national standards 15 industry standards and 17 local
standards had been released and implemented. Notable examples include ISO/IEC 24661:2023 Duplex Voice
Interaction the world's first international standard in voice interaction within human-machine interaction.Another key standard is ISO/IEC 5259 - 4:2024 which focuses on the data quality process framework in AI and
was led by China. In addition the company was involved in setting China's first mandatory national standard
for AI-generated and synthetic content labelling as well as a series of national standards for large AI models.iFLYTEK also contributed to industry-specific technical standards in multiple key sectors such as education
finance banking robotics and software. All these efforts have strongly supported the high-quality development
of the AI industry.
2. From Core Technological Breakthroughs to Systematic Innovation and Scalable Application
For core technologies transitioning from R&D breakthroughs to scalable industrial applications is a high-
threshold process. On one hand innovations must expand from single-point breakthroughs to full-stack
technologies across business chains and also identify large enough scenarios with appropriate business models
for business and technology to enhance each other or otherwise the teams will remain merely as single-point
technology providers. iFLYTEK has consistently used artificial intelligence to address significant societal needs
gaining unique advantages in two main areas:
Beyond maintaining continuous innovation and leadership in single-point core technologies iFLYTEK
persistently expands and solidifies its technology tree through systematic innovation. For example the
Company has progressed from speech synthesis and speech evaluation to speech recognition; from
speech recognition to text and image recognition; from single-modal recognition and synthesis to multi-
modal global perception and rich expression; from perceptual intelligence that can "hear and speak" to
cognitive intelligence that can "understand and think." It continues to tackle complex scenario
problems through multi-technology integrated innovation and leverages general-purpose algorithmic
innovations to create an "amplifier effect" across multiple technology domains organically integrating
various innovative technologies in products and practical applications thus driving the transition from
single-point core technology innovation to systematic innovation.In line with its AI value realization criteria featuring tangible application cases scalable standard
products and statistically verifiable application effectiveness iFLYTEK has consistently scaled up the
promotion of its AI products and solutions. The Company has focused on key areas of public welfare
such as education healthcare and urban development as well as vital sectors of the national economy
including automobiles finance and consumer goods. By expanding application scenarios in cognitive
intelligence iFLYTEK has driven a steady enhancement in its profitability. Market success in turn
reinforces iFLYTEK's deep understanding of industry scenarios and algorithmic iterations further
enhancing its competitive edge across various sectors.iFLYTEK has become a large language model partner for key industry leaders such as State Grid
Corporation of China China National Petroleum China Mobile PICC CPIC Bank of Communications Chery
Automobile FAW Group Volkswagen Haier Group and Midea Group. According to public data and media
reports in 2024 iFLYTEK Large Model Solution won 91 bidding projects with a total bid amount of 848
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million yuan ranking first among manufacturers in terms of the number of winning project and the amount of
winning bids.
3. Technology Brand Credibility in the Industry and Extensive Marketing Network
The core technological capabilities of AI directly impact customer experience and application effectiveness
where high-quality practical results enhance customer satisfaction and business revenue. Builders and operators
of intelligent speech and AI application systems place great importance on the application results delivered by
technology providers and select the most technically capable and successful providers through rigorous bidding
processes. As a leader in China’s intelligent speech and AI industry iFLYTEK has a rich portfolio of scalable
AI application cases and statistically verifiable results that have earned the trust of industry clients and
developers. The Company has established long-term strategic partnerships with market-leading developers in
various industries significantly enhancing its technology brand influence in the industry and competitive
advantage. Particularly in vital sectors like education and healthcare iFLYTEK's credibility has been widely
recognized by customers. The Company's brand assets rank 39th on the list of BrandZ Top 100 Most Valuable
Chinese Brands with a brand value of 4.677 billion US dollars.Based on years of industry experience iFLYTEK has built a nationwide scalable marketing network
establishing 32 regional marketing agencies across all provinces. To better serve and stay closer to customers
iFLYTEK actively strengthens team building and management in regions where it has operations. The front-to-
back full-process integration has built a unified sales service system supporting the comprehensive and rapid
promotion and implementation of business products.IV. Analysis of Core Business Operations
1. Overview
In 2024 the Company adhered to its "reaching for the sky rooted on the ground" development approach
remained committed to technological innovation insisted on being an independent technology provider and
steadily advanced long-term sustainable high-quality development.In 2024 while significantly increasing investment in development and upgrade of iFLYTEK SPARK to
maintain its industry leadership the Company built an AI core technology development and model training
system with proprietary algorithms controllable computing power and adequate data. It also established three
AI commercialization routes: industry applications (smart education smart healthcare intelligent vehicles
enterprise AI solutions smart city etc.) open platform and consumer products. As the application scale
expands the data-driven commercial flywheel effect of the pattern consisting of "model algorithms product and
core businesses" is becoming more evident. iFLYTEK SPARK is the only general-purpose large language
model universally accessible to the public in China that is trained on a homegrown computing platform. At the
same time according to the China's Large Model Bidding Project Monitoring and Insight Report in 2024
iFLYTEK ranked first in both the amount and number of bid-winning large language models.In 2024 while actively adjusting its operational and revenue structure the Company maintained healthy
business development and achieved growth in operating income gross margin and user base. In 2024 the
Company's operating income and gross margin rose by 18.79% and 18.70% year-on-year. The developer base
also expanded rapidly to 2.24 million. At the same time as of the end of this reporting period the Company's
net cash from operating activities reached a historical high of RMB 2.495 billion.
38Full text of the iFLYTEK's 2024 Annual Report
In 2024 the Company's gross margin increased by 1.568 billion RMB yuan year on year. Its net profit
attributable to the parent company was 560 million RMB yuan a decrease of 97 million RMB yuan from the
previous year. The principal reasons are as follows: 1. The Company worked actively to seize the historical
opportunities in AI. In 2024 it invested an additional 740 million RMB yuan in LLM development proprietary
core technologies and LLM application as indicated by the rise of R&D expenses by 410 million RMB yuan
year on year). This strengthened the Company's position and created unique advantages in general AI
competition. 2. In 2024 the Company recognized impairment losses on receivables of 1.014 billion RMB yuan
an increase of 277 million RMB yuan in bad debt provisions from the previous year. (the Company's accounts
receivable mainly come from high-quality customers with good creditworthiness high-quality receivables and
low actual historical bad debt incidence.) 3. In 2023 the Company obtained significant investment income from
its holdings in financial assets such as Three’s Company Media Group and Cambricon. In 2024 investment
income dropped 112 million RMB yuan year on year and fair value changes led to a decrease of 102 million
RMB yuan. Additionally other income decreased by 54 million RMB yuan from the previous year. In total
these factors produced a combined impact of 268 million RMB yuan. Despite the above factors' earnings impact
of 1.692 billion RMB yuan the Company's 2024 core net profit (net profit excluding non-recurring gains and
losses) increased by 70 million RMB yuan from the previous year.In summary in 2024 the Company accelerated LLM R&D on its proprietary platform reinforcing its
leadership in China's AI community. It identified key areas of LLM application and strategically optimized its
business portfolio. As the environment improves for AI industry development the Company is positioned to
drive technological and industrial growth from a stronger foundation ensuring higher-quality future
development.For details on the progress of various business operations please refer to “I. Business Highlights DuringThis Reporting Period."
2. Income and Costs
1) Breakdown of operating income
In RMB yuan
2024 2023 Year-on-year
Item Change
Amount Percentage Amount Percentage
(increase/decrease)
Total operating income 23343093018.69 100% 19650329209.04 100% 18.79%
By industry
Core Businesses
Software and IT
22961637479.4898.37%19309666439.1398.27%18.91%
services
Education 315942543.30 1.35% 287570615.42 1.46% 9.87%
Other businesses 65512995.91 0.28% 53092154.49 0.27% 23.39%
By product
Core Businesses
Smart Education 7229265407.18 30.97% 5563727710.47 28.31% 29.94%
Smart healthcare 691572023.72 2.96% 539546057.08 2.75% 28.18%
Open platform and
consumer business
39Full text of the iFLYTEK's 2024 Annual Report
Open platform 5171903877.27 22.16% 3938180093.52 20.04% 31.33%
Smart hardware 2022764845.35 8.67% 1617296410.37 8.23% 25.07%
Mobile internet
691306726.812.96%629277159.993.20%9.86%
products and services
Smart city
Information
1682385292.477.21%1886051063.739.60%-10.80%
engineering
Digital government
1195589506.335.12%1319118299.916.71%-9.36%
applications
Smart legal applications 738774392.27 3.16% 728241698.33 3.71% 1.45%
Telecom 1901147959.94 8.14% 2096258998.56 10.67% -9.31%
Smart automotive 988753872.97 4.24% 695540438.16 3.54% 42.16%
7. Enterprise AI solutions 642685685.22 2.75% 288766586.97 1.47% 122.56%
Others 321430433.25 1.38% 295232537.46 1.50% 8.87%
Other businesses 65512995.91 0.28% 53092154.49 0.27% 23.39%
By region
Core Businesses
East China 11750547820.62 50.34% 9709901827.92 49.41% 21.02%
South China 3612469328.26 15.48% 2650641640.34 13.49% 36.29%
North China 3211611130.50 13.76% 3230756372.33 16.44% -0.59%
Southwest China 1718744636.31 7.36% 1366393808.67 6.95% 25.79%
Central China 1648642191.51 7.06% 1274546016.95 6.49% 29.35%
Northwest China 697348051.19 2.99% 815595430.20 4.15% -14.50%
Northeast China 478689129.96 2.05% 431351250.33 2.20% 10.97%
Overseas 159527734.43 0.68% 118050707.81 0.60% 35.13%
Other businesses
East China 65512995.91 0.28% 53092154.49 0.27% 23.39%
By sales model
Operating income 23343093018.69 100.00% 19650329209.04 100.00% 18.79%
Notes:
1. Due to the Company's organizational change "Smart Finance" has been recognized under "Enterprise AI
Solutions". Among these income from "Smart Finance" reached 370991954.85 RMB yuan in 2024 marking a
28.47% increase from 288766586.97 RMB yuan in 2023.
2. Originally the "Education" portfolio included two components: "Education Products and Services" and
"Teaching". As it involves degree education programs in Anhui Institute of Information Technology
"Teaching" has been transferred from "Education" to "Others" to enhance investor understanding of our "Smart
Education" business. After reclassification the remaining "Education Products and Services" are now
recognized under "Smart Education". Among these Teaching recorded revenues of 315942543.30 RMB yuan
marking a 9.87% increase from 287570615.42 RMB yuan in 2023.The Company complies with the disclosure requirements for the software and IT services industry as stipulated
in the Self-Regulatory Guidelines for Companies Traded on Shenzhen Stock Exchange No. 3: Industry
Information Disclosure.In RMB yuan
20242023
40Full text of the iFLYTEK's 2024 Annual Report
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Operating 36462153 56783296 55249918 84935560 28875844 49539679 47721928 70365839
income 86.95 54.19 87.00 90.55 61.77 43.40 66.00 37.87
Net profit
attributable
---
to the 56961383. 90386689 13146726 25790116. 55795079
300468031001975857895269.
Company's 78 6.59 5.11 26 5.87
0.207.0100
shareholder
s
The Company's "Smart Education" and "Smart City" businesses mainly serve schools governments and
large companies and public institutions so project planning and evaluation often occur in the first half of the
year with implementation typically starting mid-year or later. This leads to lower revenue in Q1 and higher
revenue in Q4 a pattern reflected in recent quarterly operating results.
2) Industries products regions or sales models that account for more than 10% of the Company's
operating income or operating profits
√ Applicable □ Not applicable
The Company complies with the disclosure requirements for the software and IT services industry as stipulated
in the Self-Regulatory Guidelines for Companies Traded on Shenzhen Stock Exchange No. 3: Industry
Information Disclosure.In RMB yuan
Change in
Change in Change in
Gross operating
Item Operating income Operating cost operating cost gross margin
margin income year
year on year year on year
on year
By customer industry
Software and IT services 22961637479.48 13104937784.55 42.93% 18.91% 19.26% -0.17%
By product
Education Products and
7229265407.183257433345.3754.94%29.94%34.88%-1.65%
Services
Open platform 5171903877.27 4218059928.43 18.44% 31.33% 36.19% -2.91%
By region
East China 11816060816.53 6645412853.24 43.76% 21.03% 17.65% 1.62%
South China 3612469328.26 2250090168.42 37.71% 36.29% 44.87% -3.69%
North China 3211611130.50 2017284681.13 37.19% -0.59% 7.57% -4.77%
As the Company adjusts the scope of data collection for its core businesses During this reporting period it has
recalculated the data of core businesses for the past year based on the adjusted scope.□ Applicable √ Not applicable
3) Do the Company's physical goods sales exceed service revenues
□ Yes √ No
41Full text of the iFLYTEK's 2024 Annual Report
4) Performance during this reporting period of major sales and procurement contracts signed by the
Company
□ Applicable √ Not applicable
5) Breakdown operating Costs
In RMB yuan
2024 2023 Change
By industry Item
Amount Percentage Amount Percentage (increase/decrease)
Software and IT Material
6998395326.8052.26%6124090059.5654.36%-2.10%
services cost
Software and IT Operating
5077268612.8437.92%3903385779.7334.65%3.27%
services cost
Overhead
costs and
Software and IT
outsourced 1029273844.91 7.69% 960634125.60 8.53% -0.84%
services
labor
expenses
Operating
Teaching services 254784853.78 1.90% 251251010.61 2.23% -0.33%
cost
Operating
Other businesses 31442831.93 0.23% 27184957.31 0.24% -0.01%
cost
Total 13391165470.26 100.00% 11266545932.81 100.00%
The Company complies with the disclosure requirements for the software and IT services industry as stipulated
in the Self-Regulatory Guidelines for Companies Traded on Shenzhen Stock Exchange No. 3: Industry
Information Disclosure.
6) Breakdown of operating cost
In RMB yuan
2024 2023 Change
Costs
Amount Percentage Amount Percentage (increase/decrease)
Material cost 6998395326.80 52.38% 6124090059.56 54.49% -2.11%
Operating cost 5332053466.62 39.91% 4154636790.34 36.96% 2.95%
Overhead costs and
outsourced labor 1029273844.91 7.70% 960634125.60 8.55% -0.85%
expenses
Total 13359722638.33 100.00% 11239360975.50 100.00%
6)Has there been any change in the consolidation scope during this reporting period
√Yes □No
Refer to "Section VI. Significant Matters - VII: Notes to Changes to the Scope of Financial Statements
Consolidation From the Previous Year."
42Full text of the iFLYTEK's 2024 Annual Report
7) Significant changes or adjustments to the Company's businesses products or services During this
reporting period
□ Applicable √ Not applicable
8) Information on the Company's major customers and suppliers
Profile of major customers
Total sales to top five customers (RMB yuan) 4546220321.34
Ratio of sales to top five customers to the Company's total
19.48%
annual sales
Ratio of related-party sales to top five customers to the
4.82%
Company's total annual sales
The Company's top 5 customers
As a percentage of the
No. Customers Sales amount (RMB yuan) Company's total annual
sales
1 Customer 1 1314036758.83 5.63%
2 Customer 2 1124925468.40 4.82%
3 Customer 3 1039804395.61 4.45%
4 Customer 4 708593175.45 3.04%
5 Customer 5 358860523.05 1.54%
Total 4546220321.34 19.48%
Additional customer information
√ Applicable □ Not applicable
Among the top five customers Customer 2 is China Mobile and its subsidiaries who own collectively over
5% of the Company's equity shares. Under Article 6.3.3 of the 2024 Revision of the Rules Governing the
Listing of Stocks on Shenzhen Stock Exchange this customer is deemed a related party. The Company has no
other related-party relationships with the other top customers mentioned above. None of the Company's
directors supervisors senior officers core technical staff shareholders holding over 5% of the Company's
equity shares the Company's actual controller or other related parties have any direct or indirect interests in the
other top customers.Total purchases from top five suppliers (RMB yuan) 1852735973.70
Ratio of related-party purchases from top five suppliers to the
15.98%
Company's total annual purchases
Ratio of related-party purchases from top five suppliers to the
0.00%
Company's total annual purchases
Profile of the Company's major suppliers
The Company's top five suppliers
As a percentage of the
No. Suppliers Purchase (RMB yuan) Company's total annual
purchases
43Full text of the iFLYTEK's 2024 Annual Report
1 Supplier 1 804815735.18 6.94%
2 Supplier 2 307635651.90 2.65%
3 Supplier 3 258033934.11 2.23%
4 Supplier 4 254064672.61 2.19%
5 Supplier 5 228185979.90 1.97%
Total 1852735973.70 15.98%
Additional supplier information
√ Applicable □ Not applicable
The Company has no related-party relationships with the above-mentioned top suppliers. None of the
Company's directors supervisors senior officers core technical staff shareholders holding over 5% of the
Company's equity shares the Company's actual controller or other related parties have any direct or indirect
interests in these top suppliers.
3. Expenses
In RMB yuan
Change
Item 2024 2023 (increase/decre Explanation of significant changes
ase)
Sales
4083416224.073584043710.3813.93%
expenses
Overhead
1455408951.231370348631.126.21%
expenses
Financial This is mainly due to higher interest expenses
134760518.0415350729.49777.88%
expenses from increased borrowings.R&D
3891601383.593481185262.9911.79%
expenses
4. R&D investments
√ Applicable □ Not applicable
Name of
main Anticipated impacts on the
Purpose Progress Expected goals
R&D Company's future development
project
The iFLYSOUND solution by 1. To develop a high- 1. Leveraging its strengths in
iFLYTEK addresses the performance high-power hardware algorithms and supply
growing demand for intelligent multi-channel cost- chain management to enhance
in-vehicle experiences and the effective hardware platform competitiveness and leadership in
domestic shortage of high-end for in-vehicle audio the in-vehicle smart sound
automotive audio amplifiers. It supporting power output market; 2. relying on competitive
iFLYSOU features a proprietary high- Development exceeding 2000 W to product solutions to secure
ND performance multi-channel completed deliver immersive in- partnerships with more
hardware platform with cost- vehicle sound effects; 2. To automakers increase product
effective high-power output. develop proprietary core shipments and market share and
Equipped with advanced technologies and launch further boost product revenue and
sound-field zoning ICC and industry-leading algorithms profits; and 3. collaborating with
active noise cancellation and features such as virtual numerous automakers to expand
algorithms it delivers ambience sound virtual product shipments and reach a
44Full text of the iFLYTEK's 2024 Annual Report
Name of
main Anticipated impacts on the
Purpose Progress Expected goals
R&D Company's future development
project
immersive audio experiences. spatial audio in-vehicle broader user base thereby
By integrating iFLYTEK active noise cancellation amplifying iFLYTEK's brand
SPARK it offers adaptive and in-vehicle mic-free influence in both B2B and B2C
sound adjustment and karaoke all enhanced by markets.optimization enhancing in- iFLYTEK SPARK's sound
vehicle audio competitiveness effects; and 3. To lead the
and providing users with industry in the development
exceptional intelligent audio of in-vehicle audio secure
experiences. sales and obtain positive
feedback from more
automakers through strong
product competitiveness
and boost product
shipments revenue and
profits.
1. Leveraging AI-driven iterative
updates to further optimize
product quality and achieve deep
integration of information
technology with class teaching; 2.iFLYTEK's Personalized
Meeting teachers' needs by
Learning Handbook is
enabling quick access to exam
designed for junior and senior
information and providing
high school students. It utilizes
guidance for teaching; 3.test bank development
Enhancing recommendation
educational big data and 1. To increase market size
effectiveness by utilizing high-
intelligent recommendation and improve user
quality resources from the
Personaliz technologies to offer unique frequency; 2. To enhance
iFLYTEK Smart Education
ed features such as multi- Development product recommendation
Research Center focusing on
Learning dimensional assessment error- completed raise grading effectiveness
resolving frequent
Handbook cause diagnosis and and boost user satisfaction;
recommendation issues for
personalized learning path and 3. To reduce resource
individual users and continuously
planning. This product development costs.upgrading general and customized
addresses the issues of low
engine recommendation
practice efficiency and poor
capabilities; and 4. expanding
improvement effects
application coverage to all grades
commonly faced by students in
of junior and senior-high science
these stages.courses creating a generational
advantage for the product and
fully realizing personalized
recommendation services tailored
to schools and individuals.iFLYTEK offers pre-installed 1. To replace existing
smart cockpit solutions both international solutions for
hardware and software for multiple carmakers to Aligning with the automotive
carmakers with a high reduce costs and enhance industry's Electrification
Smart
percentage of components efficiency; and 2. To Intelligentization Connectivity
Cockpit
made in China to meet the In progress promote the adaptation and and Sharing (EICS) trends to offer
Domain
reliability demands of auto maturation of AI core carmakers more intelligent
Controller
parts supply chains at home algorithms on domestic choices and create new profit
and abroad. The platform is platforms to drive the growth points
powered by iFLYTEK industry's adoption of core
SPARK. AI technologies.A global multi-lingual in- 1. To leverage iFLYTEK's 1. Strengthening brand value by
vehicle voice-interaction global multi-lingual developing smart multilingual in-
Voice system. Built on its proprietary expertise to help Chinese vehicle interaction products
Assistant algorithms and multi-language carmakers overcome cross- building iFLYTEK's smart brand
(Internati expertise the Company offers In progress language voice barriers in system and boosting the brand's
onal a multilingual in-vehicle their overseas expansion global competitiveness; 2.Edition) solution with platform-based and export proprietary Enriching product ecosystems by
capabilities to enhance Chinese voice solutions; 2. creating platform-based
intelligent car product To promote the multilingual solutions using
45Full text of the iFLYTEK's 2024 Annual Report
Name of
main Anticipated impacts on the
Purpose Progress Expected goals
R&D Company's future development
project
architectures. As it expands in globalization of automotive cutting-edge technology and
multi-lingual coverage and businesses by enabling multilingual capabilities and
functionality the international Chinese carmakers to expanding the smart car product
voice assistant aligns expand from the local landscape; 3. Deepening in-
technology application with market and implement vehicle interaction platform
global market demands. This international OEM projects development and collaboratively
accelerates iFLYTEK's accelerating business building a global voice
collaboration with globalization through technology ecosystem to
multinational carmakers and technology empowerment. consolidate iFLYTEK's
forms a closed loop on the international leadership in the
value chain from R&D to area of human-machine
users. interaction.A smart physical fitness
assessment solution aimed to
enhance overall
1. Leveraging AI visual analysis
competitiveness and customer
to set regional standards for
satisfaction by transforming 1. To secure participation in
physical fitness assessment and
physical fitness evaluation data 10 city-level assessment
using high-stake tests to drive
into teaching goals through the projects; 2. To secure a top-
Smart demand for smart PE teaching and
use of standardized physical three position among peers
Physical generate steady revenues; 2.assessment criteria. It forms a in overall capability across
Fitness Development Building on existing speech
closed loop of products multiple dimensions
Assessme completed synthesis facial recognition and
incorporating industry research including effectiveness
nt test-scheduling technologies; and
and upgrading assessment efficiency project
Solution 3. Developing new AI visual
products. This aims to enhance coverage and violation
evaluation technology to enhance
the accuracy of various detection and response
product competitiveness and
indicators and the alignment rates.expand iFLYTEK's AI
between the system and
capabilities.service demand boosting the
solution's competitiveness and
customer satisfaction.
1. Achieve full-range
iFLYTEK's smart driving
independent development
solution that caters to the fast-
and launch two intelligent
growing intelligent driving
driving domain controllers.market and domain controller-
These will feature L2 L2 +
based vehicle architecture
high-speed NOA and L2
upgrade. Building on
++ urban NOA available in
iFLYTEK's proprietary AI
standard professional and 1. Mastering core technologies
technologies and iFLYTEK
enhanced configurations. such as AI vision sensing and
SPARK's foundational
This approach aims to ultrasonic sensing to build a
capabilities it integrates key
Advanced capture market strong presence in intelligent
technologies like AI vision
Driver opportunities in intelligent driving; 2. Achieving hardware-
sensing ultrasonic sensing
Assistanc driving democratization and software integration and
mapping and localization In progress
e expand collaboration with launching wholly proprietary
decision-making and control.Systems automakers; 2. Upgrade the cost-effective smart driving
It offers an L2+intelligent
ADAS data closed-loop toolchain solutions which will help attract
driving system and a domain
to enhance data quality more automaker partners and
controller for integrated
improve annotation grow market share in intelligent
driving and parking providing
efficiency and driving.carmakers with cost-effective
effectiveness and reduce
flexible smart driving
data costs; and 3. Support
solutions. It allows the
the low-cost high-
Company to expand customer
efficiency iteration of
base and partnerships and
intelligent driving products
seize automotive intelligence
to increase product
market opportunities.competitiveness.Code-generating model to 1. To achieve on-site Based on iFLYTEK SPARK's
assist developers with IT deployment with private foundational capabilities this
Development
iFlyCode Q&A code generation domain customization and project will develop code-
completed
debugging optimization conduct customized training generation models and products.interpretation and private code at the client's location Their integration into software
46Full text of the iFLYTEK's 2024 Annual Report
Name of
main Anticipated impacts on the
Purpose Progress Expected goals
R&D Company's future development
project
repository learning boosting completing it within a week engineering processes including
efficiency in software and enhancing training design development testing and
development. scenario effectiveness by maintenance transforms software
10%; 2. To finalize signing development. This enhances R&D
of iFLYTEK SPARK Code efficiency accelerates innovation
Generation contracts and and strengthens the Company's
ensure superior model market competitiveness in LLM-
performance in at least two based coding.typical scenarios achieving
a 10% improvement in
training scenario
effectiveness on the client's
evaluation set; and 3. To
complete personalized core
functions and the private
domain toolkit and attain
iFlyCode effectiveness at
80% of Copilot's level.
1. To strengthen inference
and MaaS capabilities pre-
configure AI service By using deep adaptation
engines enrich product selecting datasets and algorithms
offerings and establish pre-setting models intelligent
As a next-gen intelligent
standardized outputs for the scheduling and large language
infrastructure and service
intelligent computing center model training the project will
platform the iFLYTEK
version and cost models; 2. create a smart computing platform
SPARK Computing Center
To enhance the training that unifies the management
serves clients like city
iFLYTEK toolchain expand open- scheduling and operation of
governments businesses and
SPARK source LLM resources and different computing resources
research institutes. It offers a
Intelligent In progress incorporate new features with multi-tenant resource
one-stop "AI+computing"
Computin like multi-availability isolation supporting rapid
platform for computing
g Center zones vGPU Cambricon industry-specific model building.resource management model
support containers third- It will boost the Company's
training/inference and
party storage and bare influence in domestic computing
development services. This
metal to bolster the product for city governments companies
helps integrate AI with
base; and 3. To address the and universities enhances large
industries.need for security language model selection and
classification typical fault improves industry-specific model
classification and user training and resource operation.semantics extraction
models.iFLYTEK SPARK stands for 1. To enable full-platform
1. Optimizing user experience and
iFLYTEK's core strategic support across PC H5
functional design provides diverse
initiative to promote LLM App and mini-programs
application scenarios for large
development and ecological and synchronize usage
models driving continuous
expansion of its applications. history personal space and
improvement in their
iFLYTEK SPARK aims to user experience to allow
comprehension generation and
verify the capabilities of this seamless cross-scenario
reasoning abilities; and 2.large language model through user transitions; 2. To
Enabling quick adaptation to new
real-world scenarios capture support multi-modal input
tasks enhancing generalization
generative AI market share (text speech images
iFLYTEK and multi-modal collaboration
and attract developers. In progress videos) and align the seven
SPARK efficiency; This "scenario-driven"
iFLYTEK SPARK explores core capabilities with the
iteration model will accelerate
B2B and B2C markets highest international
technological breakthroughs and
reinforces Chinese AI benchmarks surpassing
strengthens the foundation for
independence drives standard- them in mathematics and
deep application and
setting in the AI field and coding; and 3. To draw on
commercialization of large
speeds up AI application in developer ecosystem and
models in vertical fields helping
specific industries. This smart hardware experience
the Company maintain an
consolidates iFLYTEK's create a multi-level
innovative edge in AI
market position and enhances intelligent agent center and
competition.China's global AI enable agent collaboration
47Full text of the iFLYTEK's 2024 Annual Report
Name of
main Anticipated impacts on the
Purpose Progress Expected goals
R&D Company's future development
project
competitiveness. and hardware-software
synergy to meet diverse
user needs.The rapid progress of AI
The open platform website
technology will propel the
builds a technical ecosystem
evolution of the platform. In the
by offering open models and
1. To drive the launch of future the Company will shift
APIs attracting developers
multiple capabilities and from offering standalone
and partners to create a voice
solutions including speech- technologies to providing
interaction-centered
related large models; 2. To comprehensive solutions by
community. This strengthens
reduce integration barriers leveraging an open ecosystem and
technical barriers and industry
by optimizing API technological empowerment. By
influence. It supports public
interfaces and development collaborating with industry
cloud access one-click
2024 tools and enable quick leaders the Company will drive
deployment and large model
iFLYTEK onboarding and efficient the adoption of AI in specific
fine-tuning catering to e-
Open In progress platform function verticals aiding businesses in
commerce customer service
Platform integration for developers cutting costs enhancing
and smart hardware needs and
Website to save time and cut costs; efficiency and achieving
thus promoting the deep
and 3. To boost platform intelligent transformation.application and
stability and fault tolerance Additionally the trend toward AI
commercialization of AI in
to ensure service democratization will lower entry
business scenarios. By
availability in high- barriers drawing more developers
providing time-limited free
concurrency scenarios into collective ecosystem
APIs pay-as-you-go models
offering over 99.9% service development. This will establish a
and lightweight models it
stability assurance. sustainable business model and
reduces AI usage costs for
foster coordinated advancement
SMEs and startups promoting
across technology industry and
widespread AI adoption.society.
1. To refine user input
experience and boost input
efficiency. In 2024 the
growth in voice user
1. By continuously refining the
volume exceeded 20% for
user experience the user base is
the third consecutive year;
expected to expand reinforcing
The input method aims to 2. To update the LLM-
the Company's position as the
expand its user base in open based AI assistant to
leading brand in voice input; 2.markets and enhance user enhance user experience
Integrating iFLYTEK SPARK’s
input efficiency and and drive commercial
foundational capabilities into the
experience. It explores new adoption; 3. To build a
input method will enhance
revenue generating paths value-added content
iFLYTEK's brand image in AI.applies LLM-based AI ecosystem (skins emojis
iFLYTEK This move is anticipated to draw
assistants to improve user Development wallpapers fonts) to
Input over 100 million users to the large
experience and has completed improve the efficiency of
Method model platform and generate
successfully undergone content production and
commercial revenue exceeding
commercial validation. The operations and expand
tens of millions of RMB yuan;
product also delves into new value-added revenue; 4. To
and 3. The input method's
content-based value-added iterate and release versions
monetization efficiency will be
services builds a creator of the input method for
raised to an industry-leading
ecosystem and boosts content HarmonyOS Linux and in-
level with the potential to
creation efficiency. vehicle systems to enhance
contribute revenue on a scale of
the platform's coverage and
hundreds of millions of RMB
deepen collaboration with
yuan.device manufacturers; and
5. To explore new
monetization avenues to
boost commercial revenue.This platform enhances virtual To build a SaaS platform 1. A one-stop SaaS platform will
AI Virtual
humans' cognitive functions for virtual human lower application barriers rapidly
Humans
such as natural language Development interaction application expand into diverse scenarios and
Interactio
processing emotion completed creation featuring establish a "convenient+versatile"
n
recognition and interaction interface brand image. This will attract
Platform
learning/memory to mimic definition persona and SMEs and developers thereby
48Full text of the iFLYTEK's 2024 Annual Report
Name of
main Anticipated impacts on the
Purpose Progress Expected goals
R&D Company's future development
project
human thinking. It also brain capacity building and strengthening the Company's
focuses on developing virtual application deployment industry leadership; 2. Private-
humans' professional skills in and enable users to quickly deployment and software-
Q&A product create applications via hardware integrated solutions will
recommendation business platform registration and address data security and
integration and application flexibly deploy them in customization requirements. They
integration to boost service software-hardware will fill enterprise-market gaps
efficiency and quality. integrated devices Web and establish differentiated
systems or H5 apps; 2. To barriers in sectors such as
expand diversified product government and healthcare; and 3.forms by broadening from The integration of LLM RAG
smart interaction machines with multimodal interaction will
and virtual human interface produce highly realistic
services to software- marketing-oriented smart
hardware integrated terminals. This will propel
hardware-only and industry-standard upgrades and
software-only formats and set a benchmark for AI interaction
offer private deployment innovation.solutions to meet multi-
scenario needs; and 3. To
enhance smart interaction
machines by integrating
facial recognition
multimodal processing
gesture recognition and
large language model RAG
and add marketing
entertainment interaction
and user engagement
features to improve the user
experience and application
value.The growth of AI marketing will
make the digital advertising
industry a key part of the global
advertising sector. It will drive
To build a one-stop smart
full - chain innovation in the
marketing solution for
marketing domain from strategy
multi-region and multi-
Adapting to market and conception to execution feedback
scenario use enhance the
internet marketing business marking the beginning of a new
efficiency of operations and
model evolution this platform era of highly personalized
strategy evolution boost the
drives continuous AI precise and automated marketing.accuracy of attribution
marketing platform upgrades Through intelligent upgrades and
GrowOne launch end-to-end vertical-
for globalization. It meets regional adaptation the platform
Digital scenario performance
advertisers' efficient ad will enhance the efficiency and
Advertisi In progress delivery solutions to
placement needs and media delivery of mobile advertising
ng strengthen competitiveness
suppliers' traffic conversion boosting the competitiveness of
Platform solidify iFLYTEK DSP's
rate improvement AI marketing. This will help AI
position as a top domestic
requirements offering partners marketing gain more market
performance and brand-
efficient sales growth and share. This platform will also
industry supplier and
brand promotion services to provide better services by
extend overseas operations
create greater marketing value. assisting clients in selecting
to elevate iFLYTEK's
suitable creatives audiences and
overseas platform business
bids. This will achieve efficient
to the mid-tier in 2024.user growth and brand promotion
for clients while significantly
reducing the complexity of
operations experts' work.FAX iFLYTEK's FAX 1. To refine the product 1. The accumulated AI and big
Program Programmatic Advertising matrix transition the data expertise will provide
In progress
matic Exchange is an AI-based programmatic advertising marketing intelligence. A robust
Advertisi programmatic advertising platform to a self-service product matrix and
49Full text of the iFLYTEK's 2024 Annual Report
Name of
main Anticipated impacts on the
Purpose Progress Expected goals
R&D Company's future development
project
ng platform. It leverages intelligent and systematic comprehensive services will help
Exchange iFLYTEK's open platform model build an ad trading advertisers enhance marketing
numerous developers and system from traffic efficiency with AI fostering a
applications as channels. By integration and audience new digital - marketing
utilizing AI and big data it management to precise ad ecosystem; 2. iFLYTEK's
enhances marketing across delivery expand influence advantage in the advertising
four key areas: smart insight extend the advertising sector will be strengthened its
dissemination connection and industry value chain brand influence in advertising will
decision-making. The platform increase ad revenue be elevated and the group's
aims to provide marketing sources and support overall brand impact and product
upgrades and innovations for advertising business growth competitiveness will be enhanced.international 4A agencies with technological
brand owners agents and e- solutions; and 2. To
commerce platforms. It offers upgrade backend services
superior AI marketing and big data technology
products and solutions in stacks optimize the
consumer insight technical architecture with
programmatic advertising AI hybrid - cloud full-chain
creativity and smart linking. tracing and real-time data
Through the use of big data for analysis promote platform-
precise targeting and based services for high-
interactive ad creativity it traffic chain tracing data
delivers enhanced and analysis needs and
monetization solutions for reduce bandwidth machine
media. This boosts the and operational costs for
platform's reputation cost-effectiveness.influence and profitability.Additionally data integration
and mining deepen data value
supporting company-level
strategic decisions and
improving user experience and
product business expansion.
1. To ensure stable and
growing revenue in the
It provides feasible and audio and video business
1. The billing optimization and
customized optimization and expand traffic to
exploration of new product forms
solutions for mobile maintain partnerships with
will provide stable revenue for the
manufacturers and internet major mobile manufacturers
department and the Company; and
Internet APP clients focusing on and internet music APPs; 2.Development 2. The use of the Company's
Cool value-added services in calling To improve subscription
completed platform and technical capabilities
Tone scenarios and personalized conversion rates to meet
to offer more solutions to partners
customization. It continuously business development
will enhance the Company's
enhances product experience goals; and 3. To establish
industry influence in core
deepens channel cooperation foundational capabilities for
technologies.and boosts brand value. music-related products to
support internal business
operations.This device is designed for 1. AI-assisted essay grading
elementary and junior high (elementary school)
The T30Lite's high cost-
school students. By upgrading English conversation
performance and strong scenario-
the T30Lite model's hardware coaching (role play) error
based positioning will expand the
iFLYTEK and software and integrating it analysis (curricular
market (with significant coverage
AI with iFLYTEK SPARK the knowledge points) and
growth in counties and towns)
Learning series emphasizes "AI-assisted Development voice-command note-taking
while linking AI learning
Machine learning and health completed (automated class notes
machines with scientific and
T30 protection" targeting the high generation); and 2. To form
healthy learning in users' minds.Series cost-performance flagship an "AI + LLM" differential
This will draw potential
market segment. The device label and achieve a net
customers to high-end models like
offers innovative hardware promoter score (NPS) of 68
the T30Ultra.features such as reading aloud (vs. an industry average of
posture monitoring and eye 45).
50Full text of the iFLYTEK's 2024 Annual Report
Name of
main Anticipated impacts on the
Purpose Progress Expected goals
R&D Company's future development
project
protection. It also provides AI-
powered functions like essay
grading conversation
coaching and knowledge point
diagnosis. These features build
a dual defense of hardware
safety and software
professionalism driving the
learning machine category
toward scenario-based
companionship and healthy
growth. This reinforces the
Company's leading position in
the high cost-performance
flagship segment.
1. To increase the learning
machine market share and
The P30 Series is a cost- aim for TOP2 GMV in the
effective AI learning machine target price range to
launched by iFLYTEK. It aims enhance brand influence; 2.Offering high-quality cost-
to reduce the threshold of To integrate core
effective AI learning machines
iFLYTEK smart learning and promote a technologies like user
will enhance iFLYTEK's brand
AI more balanced distribution of profile recommendation
image strengthen brand value
Learning educational resources. By Development image & text recognition
and provide a solid foundation for
Machine offering affordable prices and completed photo-based search
the Company's long-term
P30 powerful features the P30 automated grading speech
development. This will support
Series Series helps expand recognition speech
iFLYTEK's continued leadership
iFLYTEK's market share in AI evaluation and LLM Q&A
in smart education.learning machines and and launch unique functions
enhances the Company's brand such as AI one-on-one
competitiveness and influence. learning and tutoring to
strengthen product
competitiveness.
1. To support mathematics
English and physics for
This device is designed to
junior and senior high
streamline the grading process
schools and mathematics
without disrupting teachers'
and English for primary As one of the first practical
established workflows. It can
school grades four to six; 2. industry applications leveraging
recognize and grade various
To handle intelligent LLM capabilities the iFLYTEK
third-party assignment formats
grading for multiple-choice SPARK Intelligent Grading
without the need for dots or
fill-in-the-blank and Machine will gain increasing
wires. This intelligent all-in-
constructed-response recognition from clients. With
iFLYTEK one grading machine
questions in mathematics continuous upgrades in
SPARK efficiently handles homework
English and physics technology and improvements in
Intelligent and exams freeing teachers In progress
including smart evaluation smart recognition and grading
Grading from monotonous and
of English compositions; 3. performance the machine will
Machine repetitive grading tasks. As a
To achieve a grading take the lead in the market
result teachers can redirect
accuracy of no less than especially in large-scale
their time and energy toward
99% and reduce the average homework scenarios. This will
providing in-depth homework
grading time per class to consolidate the Company's
reviews and personalized
within 20 minutes; 4. To influence and standing in the
student guidance ultimately
promote and apply the smart education sector.supporting the transformation
machine in over 300 units
of education and teaching
within the project period
methods.and achieve regular use in
more than 200 schools.Learning This project targets the To develop self-study- This will strengthen the AI course
Machine's learning machine business oriented learning resources advantage of iFLYTEK's learning
Diagnosti line. It offers pedagogical In progress covering elementary math machine enrich content
c-Driven research and teaching resource AI-enhancement courses resources and support
Learning services. Based on set elementary Chinese writing iFLYTEK's leading position in
51Full text of the iFLYTEK's 2024 Annual Report
Name of
main Anticipated impacts on the
Purpose Progress Expected goals
R&D Company's future development
project
Loop scenarios it refines learning aids and whole-book smart education.
(DDLL) path planning builds and reading courses for
Resource improves the subject system elementary schools.Developm and develops optimized
ent resources. This addresses
efficient learning needs in self-
study scenarios and boosts
user satisfaction.This is an integrated digital
and intelligent homework
system for both schools and This digital and intelligent
education administrators. It 1. To cover 30 districts and homework system will deeply
includes high-quality resource counties; 2. To explore B2C integrate AI technology into
building scientific homework models by charging 10 homework scenarios. It can
Digital & assignment multi-scenario schools; and 3. To create at generate instant homework
Intelligent learning data collection and Development least two pilot zones and a reports and automatically identify
Homewor application. It aims to completed stratified management errors and reinforce knowledge
k System transform traditional school mechanism for after scanning creating a unique
homework into a digital and demonstration schools and advantage and leading the
intelligent format helping to build at least 5 pilot competition. This will strengthen
teachers teach and students schools. iFLYTEK's brand influence in
learn effectively and education.education administrators
manage easily.
1. To pilot the product in at
least 3 schools to verify its
usability and support the
creation of model
examples; 2. To provide a
streaming teaching course
package based on the
This information technology
foundation of teaching
laboratory project aims to
materials. This package will
resolve the challenges and
include teaching materials
difficulties encountered in the By utilizing innovative
instructional designs and
implementation of current technologies the project will
lesson - explanation videos
information technology implement in-depth teaching
enhancing lesson -
courses. Guided by national scenario products for information
preparation efficiency and
curriculum standards and technology courses. This will fill
allowing information
under the direction of experts the product gap in the Company's
technology lesson
this project has developed a government and business offering
preparation to be completed
comprehensive set of courses for information technology course
Diagnosti within 8-10 minutes; 3. To
that align with these new teaching scenarios. It will also
c-Driven Development address the lack of activity
standards. By integrating a bridge the gap in comprehensive
IT Lab completed tools in information
wealth of curriculum resources solutions for academic
Solutions technology courses. By
with software and hardware improvement and overall quality
providing various activity
solutions this project seeks to enhancement thereby increasing
tools integrated into activity
make lesson preparation more the breadth and depth of
containers (such as
accessible teaching delivery iFLYTEK's smart education
programming tools and
easier and student engagement solutions and subsequently
interactive exercise tools)
more straightforward. This uplifting the Company's brand
this project aims to achieve
creates an immersive teaching image and market
process integration in
experience assisting numerous competitiveness.activity - based teaching
schools and teachers in
flows ensuring classroom
effectively establishing and
continuity and a core
delivering quality IT courses.process task completion
rate of no less than 80%; 4.To develop experimental
teaching resources and
achieve effective instruction
of the fundamental
principles of information
52Full text of the iFLYTEK's 2024 Annual Report
Name of
main Anticipated impacts on the
Purpose Progress Expected goals
R&D Company's future development
project
technology courses.The AI-Powered STB Voice
Assistant is iFLYTEK's
innovative solution designed to
enhance operator remote-
control voice platforms. As Leveraging the interactive
1. To achieve a generational
hardware vendors increasingly foundation of iFLYTEK SPARK
leap over existing large-
integrate language models this will build a technical moat and
screen voice platforms with
product leverages iFLYTEK enhance the competitiveness of
AI- IFLYHOME OS 2.0
SPARK to establish a the home TV assistant. This will
Powered building a barrier
significant competitive edge Development help iFLYTEK stand out in the
STB advantage. 2. To evolve
over similar products in the completed market erect market barriers
Voice large-screen human-
market. It aims to revitalize boost its brand influence in the
Assistant machine interaction from
traditional remote-control operator industry and solidify its
task-based to collaborative
voice platforms by enabling dominance in human-machine
enabling more natural
more natural and intuitive interaction for operator family
interaction.human-machine interaction scenarios.thereby transforming user
experiences and bringing new
vitality to operators'
ecosystems.Information on R&D Personnel
2024 2023 Change (%)
Number 9752 8908 9.47%
As a % of the total 62.71% 62.05% 0.66%
Education background
Undergraduate 6186 5904 4.78%
Master's 3259 2585 26.07%
Age
Under 30 2735 3420 -20.03%
30~406136495523.83%
R&D Expenditure
2024 2023 Change (%)
Amount (RMB yuan) 4580118447.89 3836822735.77 19.37%
As a % of operating income 19.62% 19.53% 0.09%
Capitalized R&D expenditure (RMB
1996233407.861602462883.6024.57%
yuan)
Capitalized R&D expenditure as a %
43.58%41.77%1.81%
of total R&D expenditure
Reasons and impacts of significant R&D personnel change
□ Applicable √ Not applicable
Reasons for the significant change in R&D expenditure as a % of the operating income compared to the
53Full text of the iFLYTEK's 2024 Annual Report
previous year
□ Applicable √ Not applicable
Reasons for the significant change in R&D expenditure capitalization rate and its justification
□ Applicable √ Not applicable
The Company complies with the disclosure requirements for the software and IT services industry as stipulated
in the Self-Regulatory Guidelines for Companies Traded on Shenzhen Stock Exchange No. 3: Industry
Information Disclosure.In RMB yuan
Amount of
capitalized
Project name Project description Project status
R&D
expenditure
Based on the text generation language understanding knowledge Q&A
logical inference mathematical coding and multi-modal interaction
capabilities of iFLYTEK SPARK the Company is developing a super
iFLYTEK SPARK 110398643.38 assistant for life study and work scenarios. By integrating its In progress
proprietary AI matrix the Company focuses on tailoring solutions for
college students' thesis writing and white-collar job hunting optimizing
AI capabilities for these specific contexts.iFLYTEK's smart driving solution that caters to the fast-growing
intelligent driving market and domain controller-based vehicle
architecture upgrade. Building on iFLYTEK's proprietary AI
technologies and iFLYTEK SPARK's foundational capabilities it
Advanced Driver
integrates key technologies like AI vision sensing ultrasonic sensing
Assistance Systems 87367473.92 In progress
mapping and localization decision-making and control. It offers an
ADAS
L2+intelligent driving system and a domain controller for integrated
driving and parking providing carmakers with cost-effective flexible
smart driving solutions. It allows the Company to expand customer base
and partnerships and seize automotive intelligence market opportunities.The iFLYTEK Open Platform Website powered by iFLYTEK's globally
leading foundational AI technologies offers rich AI capabilities and
solutions for domains like mobile apps smart homes in-vehicle systems
2024 iFLYTEK and education. Integrating the iFLYTEK iFLYTEK SPARK's text
Open Platform 72368748.29 generation language understanding Q&A logical inference In progress
Website mathematical coding and multi-modal interaction skills it helps clients
upgrade product interaction and build new AI-native apps enhancing
product competitiveness by creating applications with capabilities like
listening speaking viewing recognizing understanding and thinking.The iFLYTEK Input Method focuses on expanding its user base through
continuous internet version iteration and exploring new monetization
paths to boost income generation. It deeply integrates foundational LLM
capabilities to enhance user experience and efficiency while exploring
iFLYTEK Input Development
66536711.68 AI assistant scenarios and new value-added models. The product builds a
Method completed
content ecosystem to improve content production and operation
efficiency increasing value-added revenue. It also continuously explores
new monetization methods to drive revenue growth and accumulate
industry experience.iFlyCode is a platform for code developers offering IT Q&A code
generation debugging optimization and interpretation services. It aims Development
iFlyCode 39949927.44
to enhance the efficiency of code workers and meet the demand for code completed
writers in the current domestic environment.The Smart Cockpit Domain Controller consistently enhances the
Smart Cockpit stability of its integrated hardware and software systems to ensure
35716246.88 In progress
Domain Controller compliance with OEM requirements for component reliability and
durability. Leveraging iFLYTEK's advanced chip and computing
54Full text of the iFLYTEK's 2024 Annual Report
Amount of
capitalized
Project name Project description Project status
R&D
expenditure
integration technology it offers a cost-effective integrated cockpit-
parking solution. Conducted on a domestic platform the solution
verification provides automakers with new options for cost reduction and
efficiency improvement.The T30Lite redefines cost-effective learning machines through "smart
hardware+scenario-based AI." It's not just a product breakthrough but
iFLYTEK AI also a key move in iFLYTEK's education-specific large language model
Development
Learning Machine 33041873.21 strategy. By integrating hardware innovation with deep software
completed
T30 Series capabilities (iFLYTEK SPARK) it continuously strengthens the AI
learning machine category and underpins the Company's education
business revenue growth in 2024.iFLYTEK's AI Virtual Human Interaction Platform combines virtual
humans with iFLYTEK SPARK to create a smart dialogue system. It
mimics human cognition and interaction for natural communication
AI Virtual Humans Development
25377756.19 meeting interaction needs across exhibition halls lobbies online
Interaction Platform completed
customer service and AI marketing. The platform offers diverse
products like integrated software-hardware devices interactive SaaS
platforms and virtual-human interface services.The project has produced four hardware products: P30 Q30 S30 and
iFLYTEK AI S30D. It efficiently reuses hardware and software solutions. As the first
Development
Learning Machine 24968916.41 AI learning machine supporting capacitive pen firmware upgrades via
completed
P30 Series the USI protocol and featuring 29 AI tutoring assistants it has won the
"Leading Enterprise" certification for learning machine.The iFLYTEK SPARK Intelligent Grading Machine integrates OCR and
LLM-based smart-grading technology. It enables free-form test creation
homework collection and grading and post-grading review forming a
iFLYTEK SPARK closed-loop for personalized learning. This addresses key problems of
Intelligent Grading 20980253.42 teachers and students such as heavy grading loads data silos and In progress
Machine fragmented student practice. As a software-hardware integrated solution
it significantly reduces teachers' routine workload freeing up time for
more personalized instruction and face-to-face tutoring thereby
enhancing teaching effectiveness.iFLYTEK's Personalized Learning Handbook is designed for junior and
senior high school students. It utilizes test bank development
educational big data and intelligent recommendation technologies to
Personalized Development
20901509.30 offer unique features such as multi-dimensional assessment error-cause
Learning Handbook completed
diagnosis and personalized learning path planning. This product
addresses the issues of low practice efficiency and poor improvement
effects commonly faced by students in these stages.This project targets the learning machine business line. It offers
Learning Machine's
pedagogical research and teaching resource services. Based on set
Diagnostic-Driven
scenarios it refines learning path planning builds and improves the
Learning Loop 20542089.79 In progress
subject system and develops optimized resources. This addresses
(DDLL) Resource
efficient learning needs in self-study scenarios and boosts user
Development
satisfaction.This project aims to build an intelligent marketing solution spanning
multiple regions and scenarios. This includes developing a cloud
GrowOne Digital marketing platform a smart bidding algorithm platform an intelligent
20406347.51 In progress
Advertising Platform operation platform and an intelligent experimentation platform. By
integrating the capabilities of these platforms this project seeks to
provide cohesive and intelligent marketing services.The FAX Programmatic Advertising Exchange project leveraging
iFLYTEK's cutting-edge AI and data resources explores the digital
marketing field. It builds an AI-driven marketing platform for business
FAX Programmatic users via iFLYTEK's open platform numerous developers and apps.Advertising 18757300.70 This platform enables self-service ad placement and trading supports In progress
Exchange innovative interactive ad forms reduces marketing costs and enhances
brand promotion. It also leverages data mining to boost business
decisions and user experience improving platform value and
profitability.Voice Assistant This project aims to create a global multi-lingual in-vehicle voice
13258411.39 In progress
(International interaction solution. The voice assistant combines advanced technical
55Full text of the iFLYTEK's 2024 Annual Report
Amount of
capitalized
Project name Project description Project status
R&D
expenditure
Edition) frameworks with multi-lingual processing capabilities to develop an
intelligent voice system with platform-based features. This system
improves the smart cockpit product ecosystem. As the voice assistant
continuously upgrades its multilingual support and functional modules
it aligns technical solutions with global market demands. This
accelerates the establishment of cross-national automotive manufacturer
partnerships and forms a full-cycle data feedback loop covering product
R&D to end-user experiences.This system utilizes OMR OCR semantic understanding intelligent
recommendation data analytics and learning-condition diagnosis
technologies. It offers functions such as government-school question
compilation smart test-paper generation question-pack
recommendation question-bank management question-card creation
answer-sheet scanning homework photo uploading array-pen
interaction multi-subject question identification and grading teacher-
Digital & Intelligent Development
11719764.61 grading-pen-trace recognition essay grading homework reports
Homework System completed
learning-condition analysis error-question banks and government-
school learning-condition supervision platforms. This system addresses
the needs of regional education administrators school administrators
and teachers by facilitating homework data statistics governance
collection classroom exercise commentary interaction student and
class weakness tracking and government-school question-bank
digitization.This Intelligent Computing Center is designed for corporate clients like
central and state-owned enterprises. It offers feasible solutions and
targeted optimization in intelligent computing platforms. By
iFLYTEK SPARK
continuously refining product experience deepening channel
Intelligent 11309318.98 In progress
cooperation and enhancing brand value this center aims to meet client
Computing Center
needs. According to official releases by iFLYTEK the AI computing
platform part of this project enables full-cycle data feedback covering
product R&D to end-user experiences.iFLYTEK's Internet Cool Tone focuses on audio and video-based
product optimization and innovation. By improving order conversion
rates and optimizing interaction experiences deepening channel Development
Internet Cool Tone 10507473.23
cooperation and exploring new product forms it aims to expand its user completed
base. T The product also enriches audio and video components creating
more creative and interactive features to enhance brand value.This product leverages advanced AI capabilities of iFLYTEK to offer
new services like multi-round dialogues across skills plot retrieval and
multi-intent processing greatly enhancing conversation quality. It also
AI-Powered STB Development
9074612.32 standardizes interaction and presentation for virtual human-free lite
Voice Assistant completed
virtual human and high-performance virtual-human options. This
addresses response delays from short/long voice button presses and
ensures smooth interface transitions in traditional STB environments.iFLYTEK's Diagnostic-Driven IT Lab Solutions leverage the Company's
globally leading foundational AI technologies. Through LLM
application multi-screen interactivity and domestication they offer an
all-scenario integrated teaching platform new standard compliant
Diagnostic-Driven IT courses an AI programming assistant and real-time multi-device Development
8867858.41
Lab Solutions interconnectivity. These features form a comprehensive software- completed
hardware solution for information technology courses addressing
education administrators' concerns and schools' challenges in lesson
preparation teaching evaluation homework and creating a supportive
teaching environment.The iFLYSOUND solution by iFLYTEK addresses the growing demand
for intelligent in-vehicle experiences and the domestic shortage of high-
end automotive audio amplifiers. It features a proprietary high-
performance multi-channel hardware platform with cost-effective high- Development
iFLYSOUND 1081071.49
power output. Equipped with advanced sound-field zoning ICC and completed
active noise cancellation algorithms it delivers immersive audio
experiences. By integrating iFLYTEK SPARK it offers adaptive sound
adjustment and optimization enhancing in-vehicle audio
56Full text of the iFLYTEK's 2024 Annual Report
Amount of
capitalized
Project name Project description Project status
R&D
expenditure
competitiveness and providing users with exceptional intelligent audio
experiences.A smart physical fitness assessment solution aimed to enhance overall
competitiveness and customer satisfaction by transforming physical
fitness evaluation data into teaching goals through the use of
Smart Physical
standardized physical assessment criteria. It forms a closed loop of Development
Fitness Assessment 145454.16
products incorporating industry research and upgrading assessment completed
Solution
products. This aims to enhance the accuracy of various indicators and
the alignment between the system and service demand boosting the
solution's competitiveness and customer satisfaction.
5. Cash Flow
In RMB yuan
Item 2024 2023 Change (increase/decrease)
Subtotal of cash inflows from
24747717756.6820273299993.9422.07%
operating activities
Subtotal of cash outflows operating
22252544301.7619923542179.3911.69%
activities
Net cash flow from operating
2495173454.92349757814.55613.39%
activities
Subtotal of cash inflows from
110776043.52578997322.84-80.87%
investment activities
Subtotal of cash outflows from
3416050998.874557725579.07-25.05%
investment activities
Net cash flow from investing
-3305274955.35-3978728256.2316.93%
activities
Subtotal of cash inflows from
5934494781.965151582664.1415.20%
financing activities
Subtotal of cash outflows from
5395899793.232321878240.45132.39%
financing activities
Net cash flow from financing
538594988.732829704423.69-80.97%
activities
Net increase in cash and cash
-272061049.40-789944211.7065.56%
equivalents
Explanation of main factors for significant changes in relevant data from the previous year
√ Applicable □ Not applicable
1. Net cash flow from operating activities increased by 613.39% year on year mainly due to higher sales
revenue recovery this year than last year.
2. Net cash flow from financing activities dropped by 80.97% year on year primarily due to increased cash
payments for debt repayment this year.Reasons for the significant difference between the net cash flow from operating activities and the net profit for
this year.□ Applicable √ Not applicable
57Full text of the iFLYTEK's 2024 Annual Report
V. Analysis of Non-core Business Operations
□ Applicable √ Not applicable
VI. Analysis of Balance Sheet
1. Major Changes in Assets Structure
In RMB yuan
End of 2024 Beginning of 2024 Explanatio
Change
n of
Item Percentag (increase/de
Amount Percentage Amount significant
e crease) changes
Cash and cash
3387380425.368.17%3562635256.739.42%-1.25%
equivalents
Accounts receivable 14666453043.92 35.36% 12165102111.50 32.16% 3.20%
Contract assets 733246865.20 1.77% 912202079.94 2.41% -0.64%
Inventories 2846518638.02 6.86% 2458967642.86 6.50% 0.36%
Investment properties 282193850.72 0.68% 178487697.98 0.47% 0.21%
Long-term equity
1539050502.303.71%1437178955.913.80%-0.09%
investments
Fixed assets 5037418177.15 12.14% 4393874425.37 11.61% 0.53%
Constructions in
1032764040.072.49%1241004506.053.28%-0.79%
progress
Right-of-use assets 511199057.16 1.23% 357713784.46 0.95% 0.28%
Short-term borrowings 309655185.59 0.75% 242723392.49 0.64% 0.11%
Contract liabilities 1681135415.08 4.05% 1156193365.10 3.06% 0.99%
Long-term borrowings 4672981833.31 11.27% 4554692086.61 12.04% -0.77%
Lease liabilities 364942638.82 0.88% 245614518.45 0.65% 0.23%
Other current assets 322910428.93 0.78% 409416097.76 1.08% -0.30%
Long-term receivables 742315999.53 1.79% 1224651761.01 3.24% -1.45%
Other non-current
628486463.411.52%559885903.911.48%0.04%
financial assets
Intangible assets 2916651306.77 7.03% 3116545232.84 8.24% -1.21%
Development
1636081539.763.94%698695357.431.85%2.09%
expenses
Goodwill 1134673186.61 2.74% 1134673186.61 3.00% -0.26%
Deferred income tax
1788363491.094.31%2039063438.765.39%-1.08%
assets
Bills payable 2905274282.78 7.00% 2776112860.37 7.34% -0.34%
Accounts payable 6162022062.04 14.86% 5100694119.20 13.48% 1.38%
Other payables 570156326.16 1.37% 883036586.43 2.33% -0.96%
Projected liabilities 797640296.65 1.92% 1014664994.64 2.68% -0.76%
Overseas assets account for a high percentage
□ Applicable √ Not applicable
2. Assets and Liabilities Measured at Fair Value
√ Applicable □ Not applicable
58Full text of the iFLYTEK's 2024 Annual Report
In RMB yuan
Cumulative
Gain/loss
changes in
from fair Impairment
Beginning fair value Purchase Sale this Other Ending
Item value recognized
balance recognized this year year changes balance
changes this year
under
this year
equity
Financial assets
1. Other
-
non-current 55988590 11279750 22279872. 62848646
21917068.
financial 3.91 0.00 31 3.41
19
assets
Subtotal of -
559885901127975022279872.62848646
financial 21917068.
3.910.00313.41
assets 19
-
559885901127975022279872.62848646
Total 21917068.
3.910.00313.41
19
Other changes
Is there any significant change in the measurement metrics of the Company's main assets during this reporting
period
□ Yes √ No
3. Restrictions on Asset Rights as of the End of Year
Book balance as of December Book value as of December
Item Reasons for restrictions
312024312024
Cash and cash Margins for banker's acceptance bills
276531150.14276531150.14
equivalents letters of guarantee and freezing
Bills receivable 363816871.30 363816871.30 Pledged for the note pool
Fixed assets 1311081274.68 1015360139.65 Mortgage loan
Intangible assets 341160417.18 267242326.75 Mortgage loan
Total 2292589713.30 1922950487.84
VII. Investment Analysis
1. Overview
√ Applicable □ Not applicable
Amount of investments during H1 2024 Amount of investments during H1 2023
Change (%)
(RMB yuan) (RMB yuan)
196036943.69475867978.49-58.80%
2.Significant Equity Investments Received During this Reporting Period
□ Applicable √ Not applicable
59Full text of the iFLYTEK's 2024 Annual Report
3.Significant Non-equity Investments Under Way During this Reporting Period
□ Applicable √ Not applicable
4. Investments in Financial Assets
Investments in securities
√ Applicable □ Not applicable
In RMB yuan
Cumu
Gain/l lative
Gain/l
Accou oss chang
oss
Initial nting Begin from es in Purch Endin
Sale during Accou Sourc
invest measu ning fair fair ase g
Type Code Name this this nting e of
ment remen book value value this book
year report entry fund
cost t value chang recog year value
ing
model es this nized
period
year under
equity
Other
Chine non-
Self-
se and 9180 1837 - 1816 curren
60516 Three' Fair 1531 owne
foreig 000.0 4400. 2045 9860. 0.00 t
8 S value 68.62 d
n 0 00 40.00 00 financ
Funds
stocks ial
assets
Other
Chine non-
- - Self-
se and 5832 7323 4526 curren
H098 UBTE Fair 2797 2797 owne
foreig 490.1 7552. 6059. t
80 CH value 1492. 1492. d
n 9 18 42 financ
76 76 Funds
stocks ial
assets
--
1501916118164526
28172781
Total 2490. -- 1952. 0.00 0.00 9860. 6059. -- --
6032.8324.
19180042
7614
Investments in derivatives
□ Applicable √ Not applicable
There were no derivative investments during this year.
5. Use of Raised Funds
□ Applicable √ Not applicable
There was no use of raised funds to be disclosed during this year.
60Full text of the iFLYTEK's 2024 Annual Report
VIII. Significant Asset and Equity Sales
1. Significant Asset Sales
□ Applicable √ Not applicable
the Company did not sell any significant assets during this reporting period.
2. Significant Equity Sales
□ Applicable √ Not applicable
IX. Analysis of Major Holding and Participating Companies
√ Applicable □ Not applicable
Major subsidiaries and associated companies with at least 10% impact on the Company's net profit
In RMB yuan
Subsidiary Main Registered Operating Operating
Type Total assets Net assets Net profit
Name businesses Capital income profit
Education
iFLYTEK software
-
Intelligent developme 40600000 11609486 20132982 48910083
Subsidiary 39412447. 676415.78
System nt and 0.00 725.92 32.07 84.86
88
Co. Ltd. information
engineering
iFLYTEK
Software
South 15000000 33723126 14667610 97059796 20480040 19195165
Subsidiary developme
China Co. 0.00 95.99 03.61 5.10 6.39 7.89
nt
Ltd.Acquisition and disposal of subsidiaries during this year
√ Applicable □ Not applicable
Acquisition and disposal of subsidiaries Impact on the overall operations and
Subsidiary Name
during this year profitability
Shanghai iFLYTEK Ruiyuan
Deregistered
Information Technology Co. Ltd.Suzhou iFLYTEK Vocational Training
Deregistered
School
Guangzhou iFLYTEK Superbrain
Deregistered
Technology Co. Ltd.Pishan Superbrain Technology Co. Ltd. Deregistered
Jinhua iFLYTEK Technology Co. Ltd. Deregistered
Xinyang iFLYTEK Information
Deregistered
Technology Co. Ltd.Xiong'an iFLYTEK Artificial Intelligent
Deregistered 2442.55
Technology Co. Ltd.
61Full text of the iFLYTEK's 2024 Annual Report
X. Structured Entities Controlled by the Company
□ Applicable √ Not applicable
XI. Outlook of the Company
1、2025 Business Plan
In 2025 the global political and economic landscape remains fraught with macroeconomic uncertainties
presenting both opportunities and challenges. Against this backdrop the Company adheres to its "reaching for
the sky rooted on the ground" strategy. On one hand it keeps core technologies internationally leading grasps
LLM opportunities underpins business with top-notch technology and continuously establishes technical
barriers and a pioneering edge. On the other hand it uses innovation to meet social needs promotes large-scale
AI application and fosters AI integration with various industries ensuring a thriving industrial ecosystem.Strategically the Company will enhance the complementarity and risk hedging between its domestic and
international markets.In line with the Company's development goals the 2025 Business Plan in areas such as technology
research and business development is as follows:
Core Technology R&D Plan
As a key player in China's artificial intelligence field iFLYTEK has devised the following core technology
R&D plan centered on large language model development:
iFLYTEK's business plan features and prioritizes "original algorithm innovation home-grown computing
power and value scenario implementation." the Company will continue to strengthen the foundational
capabilities of its large language model using home-grown computing power ensuring iFLYTEK SPARK's
general capabilities match top international peers and lead the industry. The Company will constantly upgrade
the deep reasoning model iFLYTEK SPARK X1 achieving ongoing breakthroughs in mathematics and coding.It will also maintain a leading position in key areas such as education healthcare and academic research. The
speech-based large model will be comprehensively promoted for large-scale application to support business-
specific strategic pillars. Meanwhile iFLYTEK will keep its multimodal large models in the industry's top tier
ensuring key capabilities lead the field and driving large-scale implementation of machine vision solutions.iFLYTEK will maintain its "1+N" overall layout. Currently its general large language model iFLYTEK
SPARK holds the top market share in multiple areas of application including education healthcare central and
state-owned enterprises automotive and security. At the same time it develops a number of (N) industry-
specific large models for key sectors such as education healthcare finance automotive energy judiciary
security industrial internet and AI for Science.iFLYTEK will continue to pursue a "General-Special Integration" large model development approach. To
date the Company has developed several specialized large models such as speech-to-text image recognition
translation and ultra-realistic digital humans. Moving forward the Company will maintain its leading position
in specialized large models. It will drive the iteration and optimization of multimodal AIUI interaction and
multilingual intelligent speech technologies. It will also closely integrate these technologies with real-world
applications to empower hardware products and enhance user experience. Additionally it will keep exploring
cutting-edge technologies like multimodal large models and embodied intelligence.
62Full text of the iFLYTEK's 2024 Annual Report
iFLYTEK will deepen collaboration with industry experts. The Company will work closely with seasoned
industry institutions and experts to develop industry-specific large models and innovative product models. This
enhances professionalism and practical value. It will also actively expand the iFLYTEK SPARK ecosystem
encouraging more developers to conduct application innovation and commercialization based on iFLYTEK
SPARK.Core Business Development Plan
Smart Education: In the "Smart Education" sector the Company is committed to core values such as
reducing burdens enhancing efficiency promoting balanced development and fostering innovative talent. It
will focus on key market demands maximize user value and leverage LLM technology upgrades to boost
product competitiveness and application effectiveness. This will help the Company build and strengthen
competitive barriers expand market share and improve business transformation. The Company will consolidate
and expand its market presence advance personalized teaching through digital transformation enhance teaching
efficiency and support the implementation of digital strategies. Meanwhile the Company will optimize the
business model to enhance empowerment for teachers and students and continue to improve its operational
structure.Smart Healthcare: In "Smart Healthcare" the Company will strengthen its AI infrastructure increase
R&D investment and maintain its generational industry advantage. The Company will expand its customer
coverage broaden its sales reach optimize its solution systems and enhance its operational efficiency. By
adopting a commercial synergy strategy it will grasp new profit opportunities.Smart City: In the field of "Smart City" the Company will use core AI and LLM technologies to create
the dual engines of solutions and products. With the LLM iFLYTEK SPARK at the core the Company will
adopt an integrated approach to enhance urban middle platform capabilities and build a new-gen digital city
foundation. This will enable multi-source data fusion and AI-empowered scenarios. The Company will also
focus on industry applications and achieve innovations in areas such as government services computing power
operations smart judiciary public security and smart parks.Open Platform and Consumer Business: In the “Open Platform and Consumer Business” sector the
Company will seize the present historical opportunity of AI development. Guided by the principles of
"Openness Ecosystem Cooperation and Sharing" the Company will work to foster a thriving developer
ecosystem with a focus on cloud collaboration software-hardware integration and self-reliance. By making
iFLYTEK's original technological innovation capabilities accessible the Company will drive LLM-based
ecosystem growth and collaborate with industry partners to create a leading AI open platform. The Company
will deepen the exploration of domestic LLM development expand home-grown training and inference
computing power and tools and refine the security governance system to offer a trustworthy platform
environment. This leads the way in creating a new ecosystem that is open innovative self-reliant secure and
vibrant. Consumer business will continue to focus on office scenarios using user needs as the core. Empowered
by iFLYTEK SPARK the Company will accelerate the integration of consumer software and hardware
revolutionize office experiences target young users deepen LLM application in key scenarios pioneer industry
development and expand into overseas markets making AI everyone's work and study assistant.
2、 Risks Faced by the Company and Their Countermeasures
iFLYTEK is committed to value creation and standardized operations meticulously identifies various risks
and proactively implements strategies to mitigate and reduce risks in the following aspects.
63Full text of the iFLYTEK's 2024 Annual Report
1. Macroeconomic Environment
In recent years the international landscape has become more and more complex with ongoing
interweaving of multiple risks such as global supply chain adjustments and geopolitical conflicts leading to
uncertainties in the macroeconomic environment. On January 16 2025 the World Bank released the Global
Economic Prospects forecasting a global economic growth of 2.7% for both 2025 and 2026. Global growth has
declined from 5.9% in the 2000s to 5.1% in the 2010s and further to 3.5% in the 2020s. On March 17 2025
the OECD published its Interim Economic Outlook revising its global growth projections for 2025 and 2026
downward by 0.2 and 0.3 percentage points to 3.1% and 3.0% respectively.iFLYTEK adheres to its robust "reaching for the sky rooted on the ground" strategy maintaining
leadership in vital autonomous technologies and advancing its “real needs+generational difference” approach in
product applications. The Company effectively uses AI to meet critical societal needs across government
business and consumer sectors creating resilient revenue streams that endure economic fluctuations and
increasingly focuses on consumer-oriented businesses to navigate macroeconomic uncertainties. Amid
demographic shifts like aging populations and falling birth rates transitioning from demographic to talent and
subsequently to AI application dividends is becoming essential for industrial progress. The large language
model iFLYTEK SPARK has given the Company a unique early advantage in the digital economy bolstering
its leadership in AI-enhanced education healthcare and industry digital transformation while opening new
avenues in AI personal assistants and expanding the consumer product market. Additionally iFLYTEK
strategically balances risks and opportunities in both domestic and international markets to enhance its global
positioning.
2. Business Innovation
To seize opportunities in the AI industry and adapt to the rapid technological advancements in the field
major companies are increasingly investing in R&D for new technologies and products. However the
industrialization and commercialization of technology carry considerable uncertainties posing risks that R&D
investments may not yield expected outcomes thus affecting profitability and growth.iFLYTEK is deeply committed to its foundational technological innovation anchored by strong AI core
technology R&D. This commitment has enabled steady advances in technological and industrial development.The Company has developed a broad range of applications in cognitive intelligence and its successes in the
market have further enhanced its deep understanding of industry-specific scenarios and its capacity for
algorithmic iteration. These achievements continually drive business innovation and mitigate the risks
associated with exploratory ventures.XII. Research Communication and Interviews During This Reporting Period
√ Applicable □ Not applicable
Type of Main Discussion Topics Access to
Date Location Method Guests
Guests and Materials Provided Details
Changes in business For more
proportions; Growth of details please
Approximately 210 consumer products; visit the
iFLYREC Cloud
January 29 investors joined via Smart Education investor
Cloud conferenci Others
2024 iFLYREC Cloud operations; Large model interaction
Meeting ng and
Meeting. development progress for platform at
enterprise clients; Large http://rs.p5w.ne
model development t/c/002230.
64Full text of the iFLYTEK's 2024 Annual Report
Type of Main Discussion Topics Access to
Date Location Method Guests
Guests and Materials Provided Details
progress for consumer Investors can
apps; Computing power also refer to the
and business presence iFLYTEK
building; the Company's investor
unique LLM advantages; relations
and January 30 launch archive dated
conference highlights January 29
2024.
Interpretation of the
Company's 2023 annual
and 2024 Q1
performance; Reasons for
For more
the change in 2024 Q1
details please
A total of 91 investors gross margin; Plans for
Panorama visit the
attended the computing power
roadshow investor
conference via investment for LLM
studio interaction
FLYREC Cloud development; Accounts
(https://rs. platform at
Meeting. In addition receivable turnover rate
p5w.net/) Cloud http://rs.p5w.ne
April 23 according to and collection status; Q1
FLYREC conferenci Others t/c/002230.
2024 incomplete statistics expense situation; Timing
Cloud ng and Investors can
investors watched the of iFLYTEK SPARK's
Meeting also refer to the
livestream broadcast benchmarking against
Online iFLYTEK
256000 on Panorama ChatGP4;
video investor
166000 on Flush and Commercialization model
broadcast relations
9000 on Wind. for LLM implementation;
archive dated
Outlook for 2024
April 23 2024.consumer business; Focus
of LLM R&D investment
in 2024; and Open
platform status.Takanashi Mitsubishi
Asset Management
Japan; He Rui CITIC
Industrial Investment;
Wang Xinxin
Qianrong Fund; Liu
Xuran Wenchu Fund;
Li Chi Tongwei
Investment; Liu Yan
Chuangfu Hui
For more
Investment; Hu iFLYTEK SPARK APP
details please
Hailang Southwest status; latest progress of
visit the
Securities; Qin this LLM; status and
investor
Shiwen Qiaoda applications of its text
interaction
Group; Yang Bin; and image large model;
platform at
Yang Xilin; Tian LLM market competition;
Hefei; http://rs.p5w.ne
April 26 Field Hongqiang; Huang advantages of iFLYTEK
Telephone Institutions t/c/002230.
2024 research Rongguo; Tian SPARK; the Company's
conference Investors can
Hongshun; Zhen 2024 personnel; Accounts
also refer to the
Wuxing; Mao Yijue receivable; Perspectives
iFLYTEK
Sinolink Securities; on general and domain-
investor
Chi Guohui Boruide specific large models;
relations
Private Equity; Progress of intelligent
archive dated
Wang Zhang; Yuan automotive business
April 26 2024.Jianhua; Mei Qiuyan;
Wang Ru; Zeng
Peiqian; Zhu Liwen;
Ge Linjie; Li Zihang;
Lu Feng; Sun
Zhaoliang; He Jianan;
Jin Guanglong; Xia
Meirong; Wang Jilin;
Cao Zhicheng; Wang
Yanbo; Luo
65Full text of the iFLYTEK's 2024 Annual Report
Type of Main Discussion Topics Access to
Date Location Method Guests
Guests and Materials Provided Details
Chaohong; Liang
Yuanfang; Wang
Yongsheng; Chen Zhi;
Qing Cheng; Lan
Jiabin; Wang
Xuezhou; Zhao Rui;
Wang Ziming; Pan
Jinhua
Jing Cong Xue and
Isreth Hassen Foord
Singapore; Adele
Jankowitz Dawie
Jooste Heather
McCulloch Julie
Macleod-Henderson
and Linda Pledger
Foord South Africa;
Philip Knibbs K2
Capital; Naas Meyer
and Werner Gibbs
Excalibur Wealth;
Beere Ian Cameron
McCallum and
Richard Sparg Netto
Invest (pty) Ltd ；
Lindsay Geddie and
Samuel Geddie
Integrity Life CC; Sue For more
White and Gloria details please
Impact of iFLYTEK
MacConnell Personal visit the
SPARK on smart
Wealth Managers; investor
education business;
Gerard Scholtz; Susan interaction
Competitiveness of
Mercer SM Wealth platform at
iFLYTEK AI learning
Coaching; Virgilio da http://rs.p5w.ne
May 13 Field machine; Recent bidding
Beijing Institutions Silva Colleen da Silva t/c/002230.
2024 research situation; iFLYTEK
and Gareth Knight Investors can
SPARK's boost to central
Cadiant Partners; also refer to the
and state-owned
David Bacher Corion iFLYTEK
enterprises; Application
Capital; Kim Frost investor
cases of LLM in
Bespoke Financial relations
scientific research;
Services CC; Johan archive dated
Basson Equity Trust May 13 2024.Asset Management
(PTY) Ltd; Zurk
Botha and Alex Botha
Zurk Botha Associates
(Pty) Ltd; Edward
Adams ALLAN
GRAY (PTY) LTD;
Andrew Brgtchie
Glacier International;
Liu Yang Shenwan
Hongyuan; Poo
Shenwan Singapore;
Shi Xinzhan and Cao
Zheng Shenwan
Hongyuan; Liu
Wenshu Zhejiang
Securities; Yun
Mengze Guosen
Securities
Wang Teng and Feng Progress of multimodal For more
May 16 Field
Beijing Institutions Baolong Taiping LLMs; Growth of details please
2024 research
Assets Wang Teng iFLYTEK AI learning visit the
66Full text of the iFLYTEK's 2024 Annual Report
Type of Main Discussion Topics Access to
Date Location Method Guests
Guests and Materials Provided Details
Taiping Asset machine; Growth drivers investor
Management; Yu for the automotive interaction
Fujiang Bosera Fund business; Implementation platform at
Mmanagement; Wang of LLMs in automotive; http://rs.p5w.ne
Zijing Dongwu Progress of smart t/c/002230.Securities; Wang healthcare products for Investors can
Jiayi Ping An consumers; also refer to the
Securities Implementation cases of iFLYTEK
LLMs in finance; investor
Implementation cases of relations
LLMs in coding archive dated
May 16 2024.Sun Wei Zhao Ziting
For more
Feng Fei Zeng Yihan
details please
Chen Si Kong
visit the
Xiaoxin Zhu Lihua
Progress of the Super investor
Li Xing Xuan
Brain 2030 Plan; Industry interaction
Yunyun and Gong
applications of iFLYTEK platform at
Yansu Southern Asset
SPARK; Competitiveness http://rs.p5w.ne
May 20 Field Management; Wang
Hefei Institutions of the Company's t/c/002230.
2024 research Weili; Ma Gang; Yang
consumer business; Investors can
Shixin; Liu Yong; Han
Promotion and also refer to the
Yu; Gu Chengxin;
development of the iFLYTEK
Chu Yijiao; Liu
iFLYTEK SPARK app investor
Xiaoke; Wang
relations
Shangming; Tang
archive dated
Fang; Liu Qiping; Yu
May 20 2024.Yuan
For more
Reasons for iFLYTEK
details please
SPARK API being free of
visit the
charge; Core advantages
investor
Jia Jingwen China of iFLYTEK AI learning
interaction
Asset Management machine; Perspective on
platform at
Yu Shujiaming China the rapid growth of LLM-
http://rs.p5w.ne
Life AMP Asset powered learning
May 22 Field t/c/002230.Beijing Institutions Management; Liu machines; Typical
2024 research Investors can
Zhiwei CCB Principal application cases of LLM
also refer to the
Asset Management; in the energy industry;
iFLYTEK
Sun Xingzhen Application cases of
investor
Zhongtai Securities LLM in t
relations
he telecom operator field;
archive dated
Future R&D investment
May 22 2024
in LLMs
(20240522-1).
For more
details please
visit the
Information on the home-
investor
grown computing power
interaction
Ren Zheng Xie Lida for training LLM
platform at
Xu Chaozhen Wang iFLYTEK SPARK;
http://rs.p5w.ne
Baojuan He Jiayi and Reasons for iFLYTEK
May 22 Field t/c/002230.Hefei Institutions Zhai Qing Wanjia SPARK API being free of
2024 research Investors can
Asset; Huang Jing and charge; LLM iFLYTEK
also refer to the
Jin Lumin Northeast SPARK-based business
iFLYTEK
Securities model; Industry
investor
implementation of
relations
iFLYTEK SPARK.archive dated
May 22 2024
(20240522-2)
Jaehyun Lee Jinwoo Unique advantages of For more
June 6 Field Jang Park Hyojin iFLYTEK in the IT sector details please
Hefei Institutions
2024 research Jie Liu and of the A-share market; visit the
Minkyun Park iFLYTEK's advantages in investor
67Full text of the iFLYTEK's 2024 Annual Report
Type of Main Discussion Topics Access to
Date Location Method Guests
Guests and Materials Provided Details
Korea Investment China's artificial interaction
Company intelligence especially in platform at
LLMs; Status of http://rs.p5w.ne
iFLYTEK Open t/c/002230.Platform; the Company's Investors can
business operations in also refer to the
South Korea iFLYTEK
investor
relations
archive dated
June 6 2024
(20240606)
For more
Chen Yuanwang and
details please
Chen Tianrui Beijing
visit the
Trust; Deng Wenxin Sales of iFLYTEK's
investor
Southwest Securities; consumer hardware
interaction
Cui Wei Rosefinch during "June 16"
platform at
Fund; Zhou Wenqing Shopping Festival 2024;
http://rs.p5w.ne
CICC Asset 2024 sales of learning
June 13 Field t/c/002230.Beijing Institutions Management; Lou machines; New
2024 research Investors can
Qiong and Luo Qin opportunities LLMs bring
also refer to the
Zhejiang Venture for the voice industry;
iFLYTEK
Capital; Advantages of iFLYTEK
investor
Xia Yintao Yang SPARK; Future
relations
Nan Xiong Diwei investment in LLMs
archive dated
and Heng Kun SDIC
June 13 2024
Securities.
(20240613)
Yong Xin and Li
Chaoxin CICC Silver
Sea Fund (Hong
Kong); Zhang Tongge
Xuansu Investment;
For more
Zhang Lihong Jintai
details please
Capital;
visit the
Cheng Meijing
investor
Luman Asset
interaction
Management; Chai
Advantages of iFLYTEK platform at
Shengli Baliu Fund;
SPARK; Business model http://rs.p5w.ne
Yang Chen Jubei
June 17 Field of iFLYTEK SPARK; t/c/002230.Hefei Institutions Investment; Deng
2024 research Development of smart Investors can
Weijun Huijin
consumer hardware; also refer to the
International
International operations iFLYTEK
Investment; Chen
investor
Yuehua Baiyite
relations
Private Equity Fund;
archive dated
Lu Shuai Yinglan
June 17 2024
Capital; Zhang Dekun
(20240617)
Yanyuan Capital;
Tang Wangkai
Anzhuo Investment;
Guo Yan CUFE
Rising Union
Sang Yongliang For more
Technical breakthroughs
Huaxia Jiuying; Shao details please
and applications of
Jinming Ping An visit the
multilingual research
Pension; Liu investor
projects; Highlights of the
Qingxiang Bank of interaction
June 26 Field June 27 product launch;
Beijing Institutions Communications platform at
2024 research Growth of consumer
Schroder; Zhang http://rs.p5w.ne
hardware in 2024;
Yiran and Yang Ruiqi t/c/002230.Progress of LLM
Changsheng Fund; Investors can
implementation for
Huang Simin China also refer to the
corporate clients
Galaxy Securities iFLYTEK
68Full text of the iFLYTEK's 2024 Annual Report
Type of Main Discussion Topics Access to
Date Location Method Guests
Guests and Materials Provided Details
Fund Management; investor
Huang Zirui relations
Huisheng Fund; archive dated
Zhang Zhe Green June 26 2024
Fund; Tao Jing CCB (20240626)
Pension Fund
Management; Chen
Yuxuan Huaxia Fund;
Luo Zelan CITIC
Securities Investment;
Zhou Wenjing CICC
Asset Management;
Wang Tao Nuanyixin
Private Equity
Investment; Zhou
Yanghaoxiang Jiutai
Fund; Bao Enxue
Morgan Fund; Wang
Siwen Guosen
Securities Asset
Management; Ai
Keda CICC
Proprietary Trading;
Chen Zhaoxu China
Post Proprietary
Trading; Liu
Hongwei State
Investment
Corporation; Jiang
Zhaoheng Shiyi
Investment; Nong
Bingli Jingsun Great
Wall Fund; Wang
Hao Union Asset;
Zhang Shuai NC
Fund;
Jie Jing State
Investment
Corporation; Jiang
Hongmin NC
Pension; Du Yukun
Huachuang Securities
Proprietary Trading;
Wang Binghui
Kaiyuan Securities
Proprietary Trading;
Yang Tianxiao China
Mobile Capital; Liu
Yue Shenzhi Asset;
Jiang Wangying and
Guo Lei Yinhua Fund
Management; Han
Shouhui Fupei
Investment; Zong
Jianshu and Guo
Jingchao Changjiang
Securities; Wang
Qianwen Sinolink
Securities; Pan
Rucheng CITIC
Securities; Wei Guifei
CICC; Yun Mengze
Guosen Securities;
Zhou Chuwei
69Full text of the iFLYTEK's 2024 Annual Report
Type of Main Discussion Topics Access to
Date Location Method Guests
Guests and Materials Provided Details
Huachuang Securities;
Liu Xiaoyao Kaiyuan
Securities; Liu Linlin
Tianfeng Securities
For more
details please
Yuan Jingqing
visit the
Jueshuo Asset
investor
Management; Yu
Future computing power interaction
Xiongda Jumang
investment for iFLYTEK platform at
Fund; Meng
SPARK; Advantages and http://rs.p5w.ne
Institutions Sansansan Linghe
Field influence of iFLYTEK t/c/002230.July 8 2024 Hefei and Asset Management;
research SPARK; Private LLM Investors can
individuals Liao Jiangtong
deployment for corporate also refer to the
Xiying Asset
clients; LLM applications iFLYTEK
Management; Chen
in healthcare investor
Muxiang Dongkun
relations
and Yang Bin
archive dated
Minemetals Securities
July 8 2024
(20240708)
Xu Jingyuan Chen
Xiaoguang and Zhou
Guangyuan and Tong
Qiutao Ping An
Pension;
Zhang Ye Minsheng
Securities;
Li Yijin CETC
Investment; Yang Lin
Haitong Securities;
Vio Lau BOCI-
Prudential; Summer
Qian CLSA;
Kim Kee Etiqa
General Insurance For more
Berhad; Millie Chen details please
Invesco; visit the
Fisher Xi Lazard investor
Asset; Emily Liao and interaction
Wen Lin Li Manulife platform at
iFLYTEK SPARK's
Investment http://rs.p5w.ne
Beijing applications in education
July 16 Field Management; t/c/002230.Telephone Institutions and finance; Progress of
2024 research Edward Chan Mirae Investors can
conference iFLYTEK SPARK's
Asset Global also refer to the
native applications
Investments; iFLYTEK
Edward Chan Mirae investor
Asset Global relations
Investments; Lynn archive dated
Cheng Sumitomo July 16 2024
Mitsui Trust; (20240716)
Edward Chan Mirae
Asset Global
Investments; Lynn
Cheng Sumitomo
Mitsui Trust; Ryan
Ma TX Capital Value
Fund; Jeffrey CH
Chan CLSA;
Huang Xu Li Tuo
Deng Binbin Xing
Hao Sun Jiaze and Li
Hanlin Panyang
Fund;
Xia Yingtuo Guotou
70Full text of the iFLYTEK's 2024 Annual Report
Type of Main Discussion Topics Access to
Date Location Method Guests
Guests and Materials Provided Details
Securities
For more
details please
Status of the learning visit the
machine business in H1 investor
2024; Functionalities and interaction
Fu Juan Li Hang Lou
applications of iFLYTEK platform at
Zhouxin Liang
SPARK intelligent http://rs.p5w.ne
Guozhu and Zhang
August 1 Field grading machine; t/c/002230.Beijing Institutions Ruofan Shaw & Wan
2024 research Applications of Investors can
Fund Management;
iFLYTEK SPARK in the also refer to the
Pan Rucheng Citic
energy sector; Status of iFLYTEK
Securities
LLM Skywork; investor
iFLYTEK’s future relations
international expansion archive dated
August 1 2024
(20240801)
Sang Yongliang and
Qi Jiuhong Huaxia
Jiuying Asset
Management; Zhang
Yingjun Broad Fund;
He Mingxiao Harvest
Fund; Gao Xiaoxiao
Broad Fund; Chen
Pengyu Wanjia Asset;
Yang Sen Schroders;
Yang Ruiqi
Changsheng Fund;
Deng Fangcheng
Caitong Securities;
Cheng Yi Fullgoal
Fund; Xiao Ruijin
For more
Bosera Fund; Qiu
details please
Shuxiao Chaos
visit the
Investment; Gao
investor
Zhendong Jueta iFLYTEK's business
interaction
Investment; Wang operations; iFLYTEK's
platform at
Xin Allianz Fund; education business
http://rs.p5w.ne
iFLYREC Cloud Individuals Chen Cheng Xinghe development and future
August 6 t/c/002230.Cloud conferenci institutions Fund; Li Ning Bank outlook; Latest
2024 Investors can
Meeting; ng and and others of Beijing Scotiabank commercial applications
also refer to the
Asset Management; Li of iFLYTEK SPARK;
iFLYTEK
Xiaohang Minsheng Growth of smart
investor
Equity Investment; hardware in H1 2024
relations
Zhu Jingyue AEON
archive dated
Insurance Asset
August 6 2024
Management; Gao Jie
(20240806)
Jink; Pang Liyong
State Investment
Corporation Asset
Management; Jiang
Ling Huatai Asset
Management; Jin
Taojing CCB
Pension; Huang
Xinyu AVIC Fund;
Chen Yifei Qianrong
Private Equity
Investment; Zhang
Zhaojun Western
Leadbank FMC;
Wang Julie Artisan;
Long Lingbo Xinyuan
71Full text of the iFLYTEK's 2024 Annual Report
Type of Main Discussion Topics Access to
Date Location Method Guests
Guests and Materials Provided Details
Asset Management;
Zhang Yiman
VISIONE Asset; Chen
Kaiyi Chaser Asset
Management; Yang
Xunyu CICC; Wang
Tao Nuanyixin
Private Equity Fund;
Li Nan CICC Asset
Management; Luo
Peixin Guangdong
Rongrun Asset; Zhao
Xiangyang Tangram
Investment; Li Xukai
Hongta Hotland
AMC; Li Xiang
Zhengxuan Capital;
Chen Kefeng
Guangdong Runrong
Asset; Xiao Shanghua
Win Tour Fund; Dai
Ningjie Ruite Asset
Management; Guo
Jingchao Changjiang
Securities; Wei Guifei
CICC; Wang
Qianwen Guojin
Securities Computer
Department; Pan
Rucheng CITIC
Securities; Liu
Wenshu Zheshang
Securities; Guo Yali
Huatai Securities; Lin
Yuxiao China
Merchants Securities;
Shi Xinzhan Shenwan
Securities; Liu Xi
Sealand Securities;
Yang Litiang and Bai
Qingshuai Minsheng
Securities; Dai Chen
Soochow Securities;
Liu Xiaoyao Kaiyuan
Securities; Yang
Haoyi Haitong
Securities; Guo Yijun
Guohai Securities
Computer
Department; Zhou
Yuan GF Securities;
Geng Junjun
Guoyuan Securities;
Li Chuhan Citic
Securities
International; Liu
Yiran and Zhang
Heng HSBC; Ge Gao
Kaiyuan Securities;
Dong Anran Soochow
Securities; Wang
Xinyue Zhongtai
Securities; Xue Yulai
Tianfeng Securities;
72Full text of the iFLYTEK's 2024 Annual Report
Type of Main Discussion Topics Access to
Date Location Method Guests
Guests and Materials Provided Details
Li Chunyao
Guosheng Securities;
Liu Linlin Tianfeng
Securities; Liu
Zhaoxiang Guotai
Junan Securities; Jin
Ye Shanxi Securities;
Huang Junfeng Great
Wall Securities;
Li Dong Nanjing
Securities; Jiang Tong
Yu Chen Wu Xin
Yan Wu Rong Ren
Zhichu Zhang
Jindong Jing
Maohuan Dun Min
Jing Xiaogang Shang
Bo Huang Dachen
Jiang Chengjiao Ning
Shengpeng Liu
Junyong Wan Yilin
and 108 other
investors.Progress of iFLYTEK's For more
quality and efficiency details please
A total of 85 investors
improvement; visit the
joined on-site or via
Justification for investor
iFLYREC Cloud
iFLYTEK's planned interaction
Meeting. In addition
medium-term note platform at
according to
iFLYREC issuance; Future http://rs.p5w.ne
incomplete statistics
Cloud Cloud investment plans for t/c/002230.August 22 over 420000 investor
Meeting conferenci Others iFLYTEK SPARK; Investors can
2024 watched via
livestreami ng and iFLYTEK's business also refer to the
livestreaming
ng development and growth iFLYTEK
including
expectations; investor
220000 on Panorama
Commercialization plans relations
149000 on Flush and
for iFLYTEK SPARK; archive dated
52000 on
Justification for the August 22
NBD.com.cn
growth of accounts 2024
receivable and solutions (20240822)
Corporate strategies and
annual business outlook;
Q3 sales and YoY growth
of learning machine and
For more
channel development;
details please
Policy impacts on
visit the
iFLYTEK's government
investor
business and accounts
interaction
receivable growth and
platform at
solutions; User feedback
http://rs.p5w.ne
A total of 142 and application of
iFLYREC Cloud t/c/002230.October 19 investors joined via intelligent grading
Cloud conferenci Others Investors can
2024 iFLYREC Cloud machine;
Meeting ng and also refer to the
Meeting Commercialization
iFLYTEK
strategies for iFLYTEK
investor
SPARK; Typical
relations
commercial application
archive dated
scenarios of iFLYTEK
October 19
SPARK;
2024
Commercialization path
(20241019)
of iFLYTEK SPARK;
Competitive and
cooperative relationship
between iFLYTEK and
73Full text of the iFLYTEK's 2024 Annual Report
Type of Main Discussion Topics Access to
Date Location Method Guests
Guests and Materials Provided Details
telecom operators in SOE
projects.Siphiwe Hubert
Mdletshe Telkom
Retirement Fund;
Hermanus Botha
Telkom Retirement
Fund;
Thabo Letlaka Eskom
Pension and Provident
Fund;
Phathutshedzo
Mabogo Eskom
Pension and Provident
Fund;
Paul Sidney Finlayson
and
For more
Andrew Ian Finlayson
details please
Maven Wealth;
visit the
Johannes Petrus
investor
Landman Omega
iFLYTEK's basic interaction
Capital (Pty) Ltd;
situation and competitive platform at
Ian Audley Jones
advantages; Changes and http://rs.p5w.ne
Fundhouse (Pty) Ltd;
development prospects in t/c/002230.October 25 Field Chantelle Baptiste
Hefei Institutions the LLM industry; Latest Investors can
2024 research Johannes Cornelis
progress of iFLYTEK also refer to the
Booysen and
SPARK; Reasons behind iFLYTEK
Cornelius Grobbelaar
the success of iFLYTEK investor
Zeeman Fairtree;
SPARK relations
Anthonie Michael
archive dated
Meyer Capvest
October 25
Wealth Management;
2024
Luis Levy StrategiQ
(20241025)
Capital;
Kirsty Lee Jacobs
Prescient;
Stephen Christian
Heath and
Murray Gordon
Anderson
Letshego Clytie
Clarice Rankin and
Simnikiwe Thutha
Prescient;
Pan Tianchen
Prescient (China);
Liang Chao Guotai
Junan Securities
XIII. Formulation and Implementation of Market Value Management System and
Valuation Enhancement Plan
Has the Company developed a market value management system
√Yes □No
Has the Company disclosed a valuation enhancement plan
□ Yes √ No
74Full text of the iFLYTEK's 2024 Annual Report
On December 30 2024 the Company convened the 12th meeting of its 6th Board of Directors where the
proposal to establish a "Market Value Management System" was approved. To strengthen its market value
management enhance investment value and boost investor returns the Company has already formulated its
Market Value Management System. In February 2024 guided by the principle of putting investors first and
safeguarding their interests and driven by confidence in the future of the AI industry and its own development
potential the Company launched the "Dual Improvement of Quality and Returns" initiative. This initiative aims
to elevate the Company's performance and investment value through a set of measures: focusing on value
creation and shareholder returns adhering to independent innovation to gain new competitive advantages
enhancing information disclosure and investor communication and improving corporate governance to promote
high-quality development.XIV. Progress and Outcomes of the "Dual Improvement in Quality and Returns" Initiative
Has the Company announced the "Dual Improvement in Quality and Returns" initiative
√Yes □No
iFLYTEK has devised the "Dual Improvement in Quality and Returns" initiative and action plan to
embody its investor-centric management philosophy as a listed company and protect investor interests and
reflect its confidence in the AI industry's future and its future development as well as recognition of the
Company's value. For details see the "Announcement of iFLYTEK on the Dual Improvement in Quality and
Returns Action Plan" (Announcement No. 2024-009) published on February 8 2024 in the Securities Times
China Securities Journal Shanghai Securities News Securities Daily and on the CNINFO website
at http://www.cninfo.com.cn. The Company has diligently implemented the action plan achieving outcomes in
2024 as follows:
1. Focusing on Value Creation Actively Seeking Shareholder Returns
iFLYTEK is always committed to achieving long-term returns for investors through solid business
development and performance growth enabling investors to realize long-term value. The Company will
continue to advance its value management strategies strengthen its core competitiveness and improve main
business performance to create value for its shareholders.Meanwhile the Company will actively implement stable profit distribution while securing long-term
development. Since its IPO 16 years ago the Company has consistently distributed cash dividends on an annual
basis. During the 7th meeting of the sixth Board of Directors on April 21 2024 and the 2023 annual
shareholder meeting on May 13 2024 the profit distribution plan for 2023 was approved. This year's dividends
are calculated based on the total share capital recorded on the equity registration date excluding shares held in
the repurchase account with a cash dividend of 1 RMB yuan per 10 shares (including tax) totaling
229317822.40 RMB yuan.
Furthermore the Company has established a "Three-Year Shareholder Return Plan (2024-2026)" to ensure
a balanced approach between company growth performance improvement and shareholder returns. This
includes a sensible profit distribution strategy and active cash dividend payouts. Additionally the Company
utilizes strategies such as share repurchases to boost investor returns and strengthen market confidence.
75Full text of the iFLYTEK's 2024 Annual Report
On April 19 2025 the Company held the 13th meeting of its 6th Board of Directors which approved the
2024 profit distribution plan. For the 2024 profit distribution the Company will use the total share capital
(excluding repurchased shares held in the dedicated account) as of the equity registration date for the
distribution as the base. A cash dividend of RMB 1 per 10 shares (tax - inclusive) will be distributed to all
shareholders with an estimated total cash dividend of 230329852.00 RMB yuan.Over the past three years cash distributions have amounted to 111% of the average distributable profits
from the same period effectively sharing the fruits of the Company's growth and development with investors.
2. Adhering to Independent Innovation & Building Comparative Advantages
Since its founding 25 years ago iFLYTEK has diligently concentrated on core AI technologies including
intelligent speech natural language understanding machine learning logic reasoning and autonomous learning
consistently maintaining a leading position in the international arena. On June 24 2024 iFLYTEK received
with honor the first prize of the State Science and Technology Award for 2023 in Beijing as the leading
contributing entity for its successful "Multilingual Intelligent Speech Technologies and Industrialization"
project This is the first AI project to win such an honor since the global AI boom ignited by deep learning.iFLYTEK has steadily increased R&D investment in core technologies and industrial support. Joining
forces with Huawei it has established a new foundation for general AI in China. This enables domestic LLM
architectures to be self-reliant in software and hardware. On January 30 2024 iFLYTEK released iFLYTEK
SPARK 3.5 trained on China's first fully home-grown TH/s computing platform Feixing-1. On June 27
iFLYTEK rolled out iFLYTEK SPARK 4.0 further enhancing seven core capabilities and rivaling ChatGPT-4
Turbo. On October 24 iFLYTEK unveiled iFLYTEK SPARK 4.0 Turbo and announced Feixing-2 a massive
intelligent computing platform developed jointly with Huawei and Hefei Big Data Asset Operation Co. Ltd.Feixing-2 will boost model-algorithm adaptation and the growth of intelligent computing clusters. It also
supports iFLYTEK's exploration into uncharted areas and drives the development of domestic large language
models offering strong alternatives to global large language models. iFLYTEK SPARK is the only domestic
general-purpose large language model open to all users for download. Trained on the fully domestic Feixing-1
computing platform it achieves all-round self-reliance in algorithms computing power and data. This gives
iFLYTEK a unique edge in the general AI field ensuring independent and sustainable development.Currently as the AI industry continues to welcome an enabling industrial development environment the
Company will enhance its technological and industrial advancement from a solid foundation targeting long-
term opportunities in the AI era. Remaining investor-centric it is dedicated to achieving dual improvement in
quality and returns.
3. Strengthening Information Disclosure and Facilitating Investor Communication
iFLYTEK is committed to promoting transparent regulated and open development through effective
information disclosure to protect investor rights. For 16 years since IPO the Company's information disclosure
has been consistently rated as excellent (Grade A) by Shenzhen Stock Exchange. According to statistics among
all public companies listed in Shenzhen only 6 have been rated excellent for 16 consecutive years representing
0.20%. The Company continues to improve the quality of information disclosure year after year strictly
adhering to the law and the regulatory requirements of the China Securities Regulatory Commission and the
Shenzhen Stock Exchange. It provides multi-level multi-angle and comprehensive information on corporate
management business operations strategy finance industry and other significant matters to investors
continuously enhancing transparency and safeguarding investor interests. The sufficient and accurate
76Full text of the iFLYTEK's 2024 Annual Report
communication of the Company's intrinsic value aids investors' decision-making especially those holding a
value investment philosophy.To ensure seamless access to information for investors iFLYTEK has consistently broadened and
deepened its communication channels. Following the release of regular financial reports the Company
promptly organizes investor relations events. Recognizing investors' interest in engaging directly with the
Company iFLYTEK introduced an innovative "Cloud Exhibition Hall." This virtual platform accessible
at https://www.iFLYTEK.com/exhibition.html allows investors to virtually explore product information and
business applications in detail. Immediately following the release of the 2023 Annual Report and the 2024 Q1
Mid-year and Q3 reports the Company held earnings conferences. Through hybrid online+offline
communication the Company’s has actively addressed investor concerns.In April 2024 the China Association for Public Companies Shenzhen Stock Exchange and Shanghai
Stock Exchange jointly held the first full-market investor relations evaluation where iFLYTEK was selected as
a case of "Best Practice in Investor Relations Management" among listed companies. This accolade was further
highlighted by including iFLYTEK in the compilation of best practice cases.
4. Improving Corporate Governance to Boost High-Quality Development
iFLYTEK is committed to being a public company that operates in compliance with regulations
embedding standardized governance into the core of its corporate culture. The Company continuously enhances
its governance framework refines its corporate governance structure and strengthens its comprehensive
internal control system. Through proactive governance activities iFLYTEK ensures the effective functioning
of its governance structure which clearly delineates the responsibilities and powers of the Shareholders' Meeting
the Board of Directors (encompassing both independent and non-independent directors) the Supervisory Board
and the Management with respect to decision-making execution and supervision. The Board of Directors
faithfully implements the resolutions of the Shareholders' Meeting fulfilling its duty of integrity while the
Management diligently carries out the responsibilities entrusted by the Board of Directors. After a systematic
evaluation by the China Association for Public Companies iFLYTEK has been honored with awards such as
"Best Practice of Boards of Directors" "Best Practice of Supervisory Boards" and "Best Practice in Corporate
Governance" which provide strong guarantees for effective corporate governance and the protection of
shareholders' rights and interests.Leveraging its internationally advanced AI technologies iFLYTEK will continue to harness AI to enhance
its corporate governance. In compliance with established corporate governance and internal control standards
the Company will employ AI and big data technologies to systematize and standardize its governance and
internal management processes ensuring well-regulated operations. The governance framework encompassing
the Shareholders' Meeting the Board of Directors the Board of Supervisors and the Management will adhere
to the philosophy of “respecting the market and leveraging its power” continuously enhancing operational
efficiency and decision-making science. This approach strongly supports the Company's growth and strengthens
its position through the strategic utilization of the capital market.
77Full text of the iFLYTEK's 2024 Annual Report
Section IV Corporate Governance
I. Introduction
iFLYTEK is committed to operating as a publicly listed company in full compliance with regulations
embedding standardized governance into the core of its corporate culture. The Company strictly abides by the
provisions of applicable laws administrative regulations and normative documents including revisions to the
Company Law of the People’s Republic of China guidelines for corporate governance practices in China and
the Shenzhen Stock Exchange’s Self-Regulatory Guidelines No. 1: Standardized Operations. By continuously
refining its corporate governance framework and pursuing strategic growth iFLYTEK strives to uphold the
highest standards of transparency and accountability. Its efforts have been widely recognized by regulatory
authorities and various sectors of society:
* It was awarded the “Best Practice in Corporate Governance” in China and included in the China
Public Company Governance Annual Report;
* Since its listing in 2008 the Company has consistently received an “A” rating for its annual
disclosure and compliance practices* iFLYTEK has been honored with a series of accolades such as the “Best Practice in BoardOperations” in China the “Best Board” Award at the Golden Roundtable Awards and the “BestPublic Company Board” Award by Securities Daily;
* A member of its supervisory board was also recognized as the “Best Public Company Supervisor” in
China;
* In addition the Company won the “Governance Top 20 Award” at the first Guoxin Cup ESG Golden
Bull Awards and the “ESG Top 100 Award” at the second Guoxin Cup ESG Golden Bull Awards.
1. Diligent Compliance to Build a Foundation and Enhance the Quality of a Public Company
In 2024 the responsible entities for the Company exercised due diligence and compliance and ensured the
standardized operation of the boards of directors and supervisors the Shareholders’ Meeting and the
management. The Company clearly defines the responsibilities and authorities of the Shareholders’ Meeting
the Board of Directors (including independent and non-independent directors) the Board of Supervisors and
the management in decision-making execution and supervision ensuring the separation and balance of
decision-making execution and supervision powers. This establishes a scientific and effective division of
responsibilities and collaboration mechanism. The Company also upheld a merit-based approach in selecting
directors supervisors and senior management members taking into account gender diversity to ensure that
these positions were filled by the most suitable and competitive candidates.
1) Shareholders and the Shareholders' Meeting: The Company has established and effectively
implemented the "Deliberation Rules for Shareholders' Meetings". During this reporting period the Company
held five Shareholders' Meetings. The Convening holding voting resolution and disclosure of these meetings
all comply with relevant laws regulations and normative documents. The Company uses a combination of on-
site and online voting methods to safeguard the legitimate rights and interests of shareholders particularly small
and medium-sized shareholders. When the Shareholders' Meeting deliberates on major matters affecting the
interests of small and medium investors separate voting is conducted for these investors and the results are
78Full text of the iFLYTEK's 2024 Annual Report
promptly disclosed. Lawyers attend the meetings to witness the process and provide legal opinions confirming
that the convening and holding of the meetings the qualifications of participants and conveners and the voting
procedures and results all comply with the provisions of the Company Law the Deliberation Rules of
Shareholders' Meetings and the Company’s Articles of Association ensuring the legality and validity of the
resolutions.
2) Directors and the Board of Directors: The Company has established and effectively implemented
systems and documents such as the "Rules of Procedure of the Board of Directors" " Implementation Rules of
Specialized Board Committees" and "Independent Directors' Working Guidelines". During this reporting
period the Company held seven board meetings ensuring robust decision-making on major matters. The
Company's independent directors held special meetings to review significant decisions and matters. Acting in
compliance with relevant laws regulations normative documents and internal rules and mechanisms the
Board of Directors diligently performed its duties effectively exercising its role. It leveraged scientific
decision-making to steer the Company's sustained and healthy development focusing on rewarding investors
through growth and performance. The Company particularly values and utilizes the roles of independent
directors and specialized committees of the Board diversifying the Board's knowledge structure. This diversity
enhances the scientific nature of decision-making through multi-party participation. During this reporting period
the Board's specialized committees convened 15 meetings fully demonstrating the professionalism and
effectiveness of Board operations. In 2024 iFLYTEK's Board of Directors once again received the highest
honor of being included in the "Best Practice Cases of Listed Company Boards of Directors" by the China
Association for Public Companies (CAPCO) and iFLYTEK's board office was reselected into "Best Practice
Cases of Listed Company Board Offices" by the same association.
3) Supervisors and the Board of Supervisors: The Company has established the "Rules of Procedure
for the Board of Supervisors" and effectively implemented it. During this reporting period the Company held
seven Board of Supervisors meetings. The Board of Supervisors fully exercised its functions of supervision
inspection and urging actively participated in the Company’s business decision-making and specially carried
out financial management and internal control inspections. Through multi-dimensional supervision and a good
deliberation mechanism it conducted comprehensive supervision inspection and review of the Company’s
business operations financial condition internal control and related-party transactions effectively safeguarding
the rights and interests of shareholders and promoting the Company’s sustainable and healthy development. The
supervision methods and dimensions mainly included: 1) off-site monitoring of the Company’s legal operations;
2) on-site inspection of the Company’s financial status and periodic report reviews; 3) inspection of the
Company’s internal control; 4) special inspection of the Company’s related-party transactions; 5) special
investigation of fund-raising use; 6) special research on the Company’s important matters and major strategies;
7) face-to-face communication with the Company’s board chairman president and other senior management
members at periodic report meetings to understand the Company’s concerns; and 8) verification of the list of
recipients of the Company’s stock incentive plans. Within the scope of authority granted by the Company Law
the Company’s Articles of Association and the Shareholders' Meeting all supervisors actively exercised their
supervisory rights attended each Shareholders' Meeting and served as supervisors for voting. All members of
the Board of Supervisors attended each on-site board meeting protecting the legitimate rights and interests of
the Company shareholders and creditors.
4) The President and the Management: The Company has established the "Rules for the President's
Work" and effectively implemented it. During the reporting period the Company held 24 presidential office
meetings. The management conscientiously fulfilled the responsibilities granted by the Board of Directors
79Full text of the iFLYTEK's 2024 Annual Report
forming a corporate governance structure with separation and checks among the Shareholders' Meeting the
Board of Directors the Board of Supervisors and the management. This ensures that each performs its duties
and responsibilities within its authority guaranteeing the Company's standardized and compliant operations.iFLYTEK ensures that the management formally responds to and discusses issues raised in the previous annual
and interim board meetings before each new annual and interim board meeting ensuring effective
implementation of Board resolutions.
5) Major Shareholders and the Actual Controller: The Company maintains independence from the
actual controller in terms of business personnel assets organization and finance. The actual controller
prioritizes compliance strictly adhering to CSRC regulations and the Rules Governing the Listing of Stocks on
Shenzhen Stock Exchange and the Self-Regulatory Guidelines for Companies Traded on Shenzhen Stock
Exchange No. 1 - Standard Operation and other laws regulations and normative documents. They fulfill their
commitments avoid competition with the Company and refrain from capital occupation or any actions that
might harm the Company's or its minority shareholders' interests.
6) Information Disclosure and Transparency: The Company places great emphasis on information
disclosure continuously improving transparency to safeguard investors' interests. It ensures the disclosed
information is truthful timely accurate complete fair and compliant. The Company views sufficient timely
and effective information disclosure as crucial for showcasing its vitality and for investor relations management.It strictly fulfills its disclosure obligations in line with the Rules Governing the Listing of Stocks on Shenzhen
Stock Exchange the Self-Regulatory Guidelines for Companies Traded on Shenzhen Stock Exchange No. 1 -
Standard Operation and its own Information Disclosure Management Rules. In 2024 iFLYTEK marked its
16th anniversary of IPO and for the 16th consecutive year its information disclosure was rated excellent by the
Shenzhen Stock Exchange. Only six companies or 0.20% of all listed companies on the Shenzhen Stock
Exchange have achieved this honor for 16 consecutive years.
7）.Investor Relations and Rights Protection: The Company strictly complies with the guidelines and
rules for investor relations work continuously enhancing communication with investors through diverse
activities. This fosters a deeper understanding of the Company and advocates rational investment. By hosting
investor visits site tours arranging media interviews for executives and attending strategy sessions the
Company ensures investors are well - informed about its business. Over the 16 years since IPO the Company
has distributed dividends annually allowing investors to share in its growth and providing long-term
shareholder returns. In 2024 iFLYTEK actively set a benchmark for annual performance-related briefings and
was awarded "Best Practice in Annual Performance Briefings" by the China Association for Public Companies
and its investor relations work received the "Best Practice in Investor Relations" award.
8） Internal Control System Development: The Company has established and improved various
corporate governance and internal control rules and mechanisms. In line with the requirements of the corporate
internal control standards system it has reviewed business processes accurately identified and assessed various
internal and external risks refined control measures and enhanced the internal control mechanism. Based on
relevant laws and regulations such as the Company Law and the Securities Law of the PRC and considering its
actual situation the Company has formulated a series of regulations. These include the Internal Control
Regulations Internal Audit Regulations Major Business Decision Regulations External Investment
Management Regulations External Financial Assistance Management Methods Fund-Raising Management
Regulations Related-Party Transaction Regulations Major Information Internal Reporting Regulations Seal
Management Regulations and Fund Management Regulations. The Company strictly implements the internal
control requirements for public companies ensuring standardized operations.
80Full text of the iFLYTEK's 2024 Annual Report
9）Performance Evaluation and Incentive Mechanisms: The Company actively establishes incentive
and restraint mechanisms for directors supervisors and senior management members that align with modern
corporate systems. This effectively motivates these personnel and enhances operational management efficiency.Approved by the Shareholders' Meeting iFLYTEK has instituted a clear "Compensation Management System
for Directors Supervisors and Senior Management Members". Compensation for these roles is based on
company scale and performance with comprehensive evaluation according to operating plans and job
responsibilities and goals. The Company committed to "achieving employee ideals and creating social value"
designs performance evaluation and incentive mechanisms centered on long-term business development and
individual needs. Based on its business and operations a sound corporate performance evaluation and incentive
system is in place to ensure sustainable development. Focusing on business growth and personal development
the Company has built and continues to refine a layered role-based talent training system. It also conducts
diverse training programs to link employee growth with company development achieving mutual success
between the organization and its employees.
2. AI-powered Corporate Governance Innovation
Modern IT systems play an essential role in ensuring the effectiveness of internal control. Leveraging its
internationally advanced AI technologies iFLYTEK will continue to harness AI capabilities to enhance its
corporate governance.In compliance with established corporate governance and internal control standards the Company has
employed AI and data analytics to systematize and standardize its governance and internal management
processes ensuring well-regulated operations. Digital auditing ensures comprehensive coverage of employee
self-service reimbursements with automatic detection of issues. This has led to a significant decline in non-
compliant or erroneous claims establishing a robust reimbursement risk - prevention system. Using iFLYREC
Cloud Meeting directors supervisors and investors over distances can now engage in real-time face-to-face-
like interactions during meetings. They can view PPTs and materials and share opinions simultaneously with
on-site participants eliminating spatial barriers and boosting corporate governance efficiency. By integrating
data across internal systems and applying risk models and algorithms to full-sample datasets most internal
control processes have been automated. This makes internal control more precise efficient and intelligent. The
application of technology providers and methods has effectively strengthened internal supervision capabilities
and improved internal capabilities and comprehensive qualities.Whether there are any material differences between the Company and the provisions of laws administrative
regulations and the China Securities Regulatory Commission on corporate governance of a public company
□ Yes √ No□
There are no material differences between the Company and the provisions of laws administrative
regulations and the China Securities Regulatory Commission on corporate governance of a public company.
81Full text of the iFLYTEK's 2024 Annual Report
II. The Company’s Independence from Controlling Shareholders and Actual Controllers in
Terms of Assets Personnel Finances Organization and Operations
The Company possesses independent and comprehensive operations and autonomous business capabilities.It maintains independence from its actual controller in terms of assets personnel financial management
organizational structure and business operations.
1. Asset independence
The Company is under the actual control of Liu Qingfeng and the actor in concert University of Science
and Technology of China Asset Management Co. Ltd. The actual controller's assets are strictly separate from
those of iFLYTEK with no asset occupation occurring. Other major shareholders also do not occupy the
Company’s assets. The Company does not provide guarantees for shareholders or other enterprises or
individuals under their control using its assets rights or reputation nor is it subject to occupation by
shareholders or other related parties. The Company holds complete and legal ownership certificates for its
properties land use rights key production equipment trademarks software copyrights etc. and has actual
possession and control with no legal disputes or potential disputes.
2. Personnel independence
Directors supervisors and senior executives are appointed in full compliance with the Company Law the
Company’s Articles of Association and the rules of its Shareholders' Meeting and Board of Directors. Senior
management members only hold director or supervisor positions in entities controlled by the actual controller
and are remunerated solely by the Company. The Company administers human resources independently with
its own set of personnel regulations including Employment Contract Management Regulations Personnel File
Management Regulations Training Management Regulations Salary Payment Management Regulations
Employee Performance Management Measures Attendance Management Regulations Welfare Management
Regulations and Recruitment and Transfer Management Regulations. It signs labor contracts independently and
ensures institutionalized standardized personnel management including independent administration of payroll
compensation and social security.
3. Financial independence
The Company has an independent finance and accounting department with its own finance and accounting
staff an independent accounting system and financial management rules. It makes independent financial
decisions has separate bank accounts and handles taxation independently.
4. Organizational independence
The Company has a sound and independent legal entity governance structure. It has established the
Shareholders' Meeting Board of Directors Board of Supervisors Board Specialized Committees Board
Secretary and the Management and formulated relevant rules of procedure. It has also established a
Management System for Controlled Subsidiaries with all related entities and personnel fulfilling their duties in
accordance with the law. The Company has set up complete and efficient business technology and functional
departments free from interference from shareholders or other entities or individuals.
5. Business independence
The Company independently engages in software development and sales. It has complete systems for
operations design project control procurement finance and quality management and possesses the capability
to independently conduct business. There is no competition with the actual controller or major shareholders.
82Full text of the iFLYTEK's 2024 Annual Report
Should transactions with the actual controller major shareholders or affiliates occur the Company strictly
follows regulatory requirements for deliberation and information disclosure ensuring no harm to the Company's
interests especially those of minority shareholders.III. Competition
□ Applicable √ Not applicable
IV. Annual Shareholders' Meeting and Extraordinary Shareholders’ Meeting Convened
During This Reporting Period
1. Shareholders' Meetings in 2024
Investor Disclosure
Session Type Dates Resolution
participation Date
The Announcement on the Resolution of the First
First Extraord Extraordinary General Meeting of Shareholders in
Extraordinary inary 2024 was published on January 26 2024 in
January January 26
shareholders’ sharehol 37.77% Securities Times China Securities Journal
2520242024
meeting in ders’ Shanghai Securities News Securities Daily and on
2024 meeting the CNINFO website at http://www.cninfo.com.cn
(Announcement No. 2024-006).
The Announcement on the Resolution of the
Annual Annual General Meeting of Shareholders for 2023
General Annual was published on May 14 2024 in Securities
May 13
Meeting of general 31.14% May 14 2024 Times China Securities Journal Shanghai
2024
Shareholders meeting Securities News Securities Daily and on the
in 2023 CNINFO website at http://www.cninfo.com.cn
(Announcement No. 2024-030).
The Announcement on the Resolution of the
Second Extraordinary General Meeting of
Second Extraord
Shareholders in 2024 was published on September
extraordinary inary
Septembe September 7 7 2024 in Securities Times China Securities
shareholders’ sharehol 29.70%
r 6 2024 2024 Journal Shanghai Securities News Securities
meeting in ders’
Daily and on the CNINFO website
2024 meeting
at http://www.cninfo.com.cn (Announcement No.
2024-048).
The Announcement on the Resolution of the Third
Third Extraord Extraordinary General Meeting of Shareholders in
extraordinary inary 2024 was published on December 10 2024 in
Decembe December 10
shareholders’ sharehol 31.77% Securities Times China Securities Journal
r 9 2024 2024
meeting in ders’ Shanghai Securities News Securities Daily and on
2024 meeting the CNINFO website at http://www.cninfo.com.cn
(Announcement No. 2024-072).
The Announcement on the Resolution of the Fourth
Fourth Extraord Extraordinary General Meeting of Shareholders in
extraordinary inary Decembe 2024 was published on December 27 2024 in
December 27
shareholders’ sharehol 31.43% r 26 Securities Times China Securities Journal
2024
meeting in ders’ 2024 Shanghai Securities News Securities Daily and on
2024 meeting the CNINFO website at http://www.cninfo.com.cn
(Announcement No. 2024-076).
2. Preferred Shareholders with Restored Voting Rights Requesting the Convening of an Extraordinary
Shareholders' Meeting
□ Applicable √ Not applicable
83Full text of the iFLYTEK's 2024 Annual Report
V. Shareholding of Directors Supervisors and Senior Management Members
1. Basic Information
Initia
Incr Othe
l Decre Ending Reaso
Serv ease r
Ge Term Term Shar ase in Shareh ns for
ice in Cha
Name nde Age Position Starting Ending ehol 2024 olding the
Stat 2024 nges
r Date Date ding (Shar (Share Chang
us (Sha (Sha
(Sha es) s) es
res) res)
res)
Liu Incu 128
Ma April 13 January 16 12829
Qingfen 51 Chairman mbe 297
le 2009 2026 7167
g nt 167
Chen Incu
Ma May 13 January 16
Hongta 52 Director mbe
le 2024 2026
o nt
Incu 180 Active
Wu Ma President October 10 January 16 289 18322
52 mbe 337 buy-
Xiaoru le and Director 2010 2026 100 890
nt 90 back
Director
Vice Incu 100 Active
Jiang Ma February 4 January 16 144 10167
51 President mbe 225 buy-
Tao le 2016 2026 800 381
Board nt 81 back
Secretary
Buy-
back
and
Director and Incu - cancell
Duan Ma April 23 January 16 495 46300
52 Vice mbe 320 ation
Dawei le 2018 2026 000 0
President nt 00 of
incenti
ve
shares
Director and Incu 475 Active
Nie Ma January 3 January 16 144 4895
45 Vice mbe 060 buy-
Xiaolin le 2017 2026 700 300
President nt 0 back
Incu
Zhao Ma Independent January 9 January 16
65 mbe
Xudong le Director 2020 2026
nt
Incu
Zhao Ma Independent January 9 January 16
61 mbe
Xijun le Director 2020 2026
nt
Zhang Incu
Ma Independent January 16 January 16
Benzha 61 mbe
le Director 2023 2026
o nt
Incu
Wu Ma Independent January 16 January 16
62 mbe
Cisheng le Director 2023 2026
nt
Cao Fe Chair of the Incu
May 13 January 16
Yingch ma 55 Board of mbe
20242026
un le Supervisors nt
Fe Incu
Zhang January 10 January 16 150
ma 58 Supervisor mbe 1500
Lan 2017 2026 0
le nt
Fe Incu
Dong January 10 January 16 157 15723
ma 45 Supervisor mbe
Xueyan 2017 2026 238 8
le nt
Fe Incu
Lu July 19 January 16
ma 35 Supervisor mbe
Xueling 2021 2026
le nt
Fe Chief Incu - Buy-
Wang March 13 January 16 204 19305
ma 45 Finance mbe 112 back
Ming 2016 2026 250 0
le Officer nt 00 and
84Full text of the iFLYTEK's 2024 Annual Report
cancell
ation
of
incenti
ve
shares
Incu
Yu Ma Vice April 19 January 16 344 34440
47 mbe
Jidong le President 2023 2026 400 0
nt
Resi
Ma January 10 April 9
Liu Xin 52 Director gne
le 2017 2024
d
Chair of the Resi
Ma January 10 April 9
Liu Wei 49 Board of gne
le 2017 2024
Supervisors d
Wang Resi
Ma January 9 March 22
Hongxi 48 Director gne
le 2020 2024
ng d
162-
57816284
Total -- -- -- -- -- -- 306 0 432 --
6001926
52600
Have there been any resignations of directors or supervisors or any dismissals of senior management members
during this reporting period
√ Yes □ No
* On March 22 2024 Wang Hongxing resigned from his the position as Supervisor the Company due to
employment change.* On April 9 2024 Liu Xin resigned from his position as Director of the Company and from his role on the
Strategy Committee of the Board of Directors due to employment change.* On April 9 2024 Yingchun resigned from his position as Supervisor and Chairman of the Board of
Supervisors due to employment change.Changes in the Company's Directors Supervisors and Senior Management Members
√ Applicable □ Not applicable
Name Position Change Date Reason
Employment
Liu Xin Director Resigned April 9 2024
Change
Chair of the Board Employment
Liu Wei Resigned April 9 2024
of Supervisors Change
Employment
Wang Hongxing Director Resigned March 22 2024
Change
2. Incumbency Information
Professional backgrounds key work experience and primary current responsibilities of the Company's
incumbent directors supervisors and senior management members
* Directors
85Full text of the iFLYTEK's 2024 Annual Report
Liu Qingfeng Chairman of the Company holds a doctoral degree in Signal and Information Processing
from the University of Science and Technology of China is the founder of iFLYTEK Director of the National
Engineering Research Center of Speech and Language Information Processing (NERC-SLIP) a part-time
professor and doctoral supervisor at the University of Science and Technology of China and a representative of
the 10th 11th 12th 13th and 14th National People's Congress. He also serves as Chairman of the Speech
Industry Alliance of China Innovation Alliance and Chairman of the Artificial Intelligence Industry-University-
Research Innovation Alliance of the Chinese Academy of Sciences. At present he concurrently serves as the
Chairman of Xunfei Healthcare Technology Co. Ltd. Executive Director of Anhui Yanzhi Technology Co.Ltd. Chairman of Lingyang Industrial Internet Co. Ltd. Director of Beijing Red Cloud Rongtong Technology
Co. Ltd. and Director of Anhui Oristruct Biotechnology Co. Ltd. In 2018 he was selected as one of the "40
Outstanding Private Entrepreneurs in 40 Years of Reform and Opening Up" and in 2020 he was awarded the
title of "National Model Worker."
Chen Hongtao Director of the Company holds a master's degree. He previously served as General
Manager of the Technology Department and the Xinwang Project Department of China Mobile
Communications Corporation and held positions such as Party Committee Member Director and Deputy
General Manager of China Mobile Communications (Zhejiang) Co. Ltd. and Director Deputy General
Manager and Party Leadership Group Member of China Mobile Communications (Gansu) Co. Ltd. He
currently concurrently serves as General Manager of the Technology Innovation Department of China Mobile
Communications Corporation
Wu Xiaoru President and Director of the Company holds a doctoral degree in Information and
Communication Engineering from the University of Science and Technology of China and is a certified senior
engineer. In 2010 he received the Special Government Allowance from the State Council. He has led and
participated in several National 863 Program key projects and National Natural Science Foundation projects
achieving significant research results. He has been awarded the National Science and Technology Progress
Second Prize and the Major Technological Innovation Award in the Information Industry among other honors.He previously served as the Company's Vice President and now concurrently serves as Executive Director of
Wuhan iFLYTEK Xingzhi Technology Co. Ltd. Executive Director of iFLYTEK Central China (Wuhan) Co.Ltd. and Director of USTC Silicon Valley Service Platform (Anhui) Co. Ltd.Jiang Tao the Company's Director Board Secretary and Vice President holds a master's degree in
Software Engineering from the University of Science and Technology of China and a doctoral degree in
Business Administration from Singapore Management University. He previously directed the Company's
Value-added Telecommunications Services Division. Currently he also serves as Executive Director of Beijing
iFLYTEK Information Technology Co. Ltd. Tianjin iFLYTEK Information Technology Co. Ltd. iFLYTEK
(Beijing) Co. Ltd. Beijing iFLYTEK Qiming Technology Co. Ltd. and Hefei Feier Smart Technology Co.
Ltd. as well as Director of Beijing Chinese-Foreign Translation & Information Service Co. Ltd. Beijing
iFLYTEK Jizhi Technology Co. Ltd. Beijing iFLYTEK Zhiying Technology Co. Ltd. and Beijing iFLYTEK
Jingdalai Technology Co. Ltd.Nie Xiaolin Director and Vice President of the Company holds a master's degree in Software Engineering
from the University of Science and Technology of China. He previously served as General Manager of the
Company's Value-Added Telecommunications Services Division Chief Operating Officer and Chairman of the
86Full text of the iFLYTEK's 2024 Annual Report
Marketing Committee. Currently he also serves as Executive Director of Beijing Liyun General Education
Technology Co. Ltd. Chairman of Beijing Headline Education Information Technology Co. Ltd. Chairman of
Anhui Institute of Information Engineering Chairman of iFLYTEK Lingzhi (Jiangsu) Technology Co. Ltd.and Director of Beijing Normal University iFLYTEK Education Technology Co. Ltd.Duan Dawei is a Director and Vice President of the Company. He graduated with a bachelor’s degree in
Economics from Dongbei University of Finance and Economics in 1993 and obtained a master’s degree in
Economics from the same university in 1999. He earned an MBA from Missouri State University in the United
States in 2010. He previously held senior leadership positions at Jilin Chemical Group Jilin Electronic Group
Sany Group and Sany Heavy Industry Co. Ltd. With extensive experience in corporate financial management
securities investment and international cooperation he has been honored with awards such as the "2008 China
CFO of the Year" and the "2019 China Outstanding CFO Leadership Award." He is also a part-time graduate
supervisor at Shanghai National Accounting Institute and the School of Accounting Dongbei University of
Finance and Economics. Currently he also serves as Chairman of Tianjin iFLYTEK Financial Leasing Co. Ltd.and Director of Xunfei Healthcare Technology Co. Ltd.Zhao Xudong an Independent Director of the Company is a professor and doctoral supervisor at China
University of Political Science and Law and an MOE "Chang Jiang (Cheung Kong) Scholar". Now he
concurrently serves as President of the Chinese Law Society's Commercial Law Research Association a
member of the Expert Consultation Committee of the Supreme People's Procuratorate and an arbitrator of the
China International Economic and Trade Arbitration Commission. As a renowned domestic civil and
commercial law expert Zhao Xudong possesses extensive research and practical experience in areas such as
company law and contract law. He has served as an external director of companies including Tongrentang
Group and as an independent director of listed companies such as Founder Securities and CITIC Guoan.Currently he also serves as an independent director of China National Uranium Corporation.Zhao Xijun an Independent Director of the Company is a professor and doctoral supervisor at the School
of Finance and Public Administration Renmin University of China and a beneficiary of the State Council's
Special Government Allowance. He concurrently serves as Dean of China Capital Market Research Institute
and Dean of the Chinese Academy of Financial Inclusion at Renmin University of China. He is also a member
and secretary of the National Financial Master's Education Steering Committee a director and deputy secretary-
general of the China International Finance Society a standing director and academic committee member of the
China Modern Finance Society a director of the China Finance Association and vice chairman of the Beijing
International Finance Association. Zhao Xijun is a specialist in macroeconomic finance international finance
and capital markets. Since becoming a professor he has published over 100 academic papers and articles and
authored more than 20 books and textbooks. He has led or participated in over 20 research projects.Zhang Benzhao an Independent Director of the Company holds a doctoral degree in Management. He is a
professor at the School of Economics Hefei University of Technology Director of the University's Finance and
Securities Research Institute a doctoral supervisor for DBA at a European business school an Anhui Province
Distinguished Teacher a national science and technology award reviewer an expert for national undergraduate
education evaluation a financial expert for National High-tech Enterprise recognition a standing director of the
Anhui Province Finance Society and an arbitrator of Hefei Arbitration Commission. He has led or participated
in over 50 scientific research projects commissioned and sponsored by the State provinces and ministries local
87Full text of the iFLYTEK's 2024 Annual Report
governments and enterprises published over 100 papers in domestic and international academic journals
authored six books and received three second-prizes for Anhui Province's outstanding social science research
achievements. He currently also serves as an independent director of Guoyuan Securities Co. Ltd. and Hefei
Department Store Group Co. Ltd.Wu Cisheng an Independent Director of the Company holds a doctoral degree in Management. He is a
professor and doctoral supervisor at the School of Management Hefei University of Technology and serves as
the Director of the Enterprise Management Research Institute. Wu Cisheng is a member of the American
Economic Association (AEA) the International Association for Chinese Management Research (IACMR) and
a senior member of the China Occupational Safety and Health Association (COSHA). He also holds the
position of standing director at the Anhui Province Industrial Economic Federation and is recognized as a
leading academic and technological figure of Anhui Province. Wu Cisheng has led numerous research projects
funded by the National Natural Science Foundation of China and provincial-level research initiatives. He has
undertaken over 50 research projects for large and medium-sized enterprises published more than 120 papers in
academic journals both domestically and internationally and authored 10 books. His research achievements
have been honored with a National Teaching Achievement Award (Second Prize) and various provincial-level
awards for technological progress social sciences and natural sciences. Wu Cisheng previously served as an
independent director of several companies including Anhui Gujing Group Co. Ltd. Anhui Architectural
Design and Research Institute Co. Ltd. Huangshan Yongxin Co. Ltd. and Anhui Nextooling Technology Co.Ltd. Currently he also serves as an independent director of Anhui Fuhuang Steel Structure Co. Ltd. and Anhui
BBCA Pharmaceutical Co. Ltd.* Supervisors
Cao Yingchun a senior accountant has held various positions including Project Manager in the Finance
Department of the Shanxi Provincial Postal Administration project manager and deputy general manager in the
Finance Department of China Mobile Communications Corporation (Shanxi) deputy manager and manager of
the Economic Responsibility Audit Division (and concurrently deputy manager of the Construction Project
Audit Division) in the Internal Audit Department of China Mobile Communications Corporation and deputy
general manager of the Internal Audit Department of China Mobile Communications Corporation. She also
served as the team leader of the China Mobile Communications Corporation Party Leadership Inspection Team
(at par with the general manager). Currently she is General Manager of the Internal Audit Department of China
Mobile Communications Corporation and concurrently serves as the chairperson of the Board of Supervisors of
China Mobile Financial Company a supervisor of the 5G Fund Management Company and a supervisor of the
China Mobile Charity Foundation.Zhang Lan a Supervisor of the Company is a Bachelor of Economics and a senior accountant. She
previously served as Director of Financial and Asset Management at the Logistics Group of USTC Assistant to
the Director of USTC's Finance Department Vice President and Chief Financial Officer of USTC Holdings Co.Ltd. Currently she is Vice Dean of the Institute of Advanced Technology at USTC Chairperson of the Board of
Supervisors of CAS Quantum Network Co. Ltd. Supervisor of QuantumCTek Co. Ltd. Director of Anhui
Asky Quantum Technology Co. Ltd. Supervisor of the Basic Education Group of UTSC and Director of
Origin Quantum Computing Technology (Hefei) Co. Ltd.
88Full text of the iFLYTEK's 2024 Annual Report
Dong Xueyan a Supervisor of the Company holds a bachelor's degree in Chinese Language and Literature
from Anhui University. She previously served as the Party Youth League Secretary of the Company Regional
Manager and Head of the Marketing Department of the Education Business Division of the Company.Currently she is the Deputy General Manager of the Company's Audit and Supervision Department.Lu Xueling a Supervisor of the Company graduated with a bachelor's degree in Software Engineering
from Jiangxi University of Finance and Economics. Lu Xueling has held positions such as Project Manager and
Manager of the Operations Management Department of the Strategic Operations Division of the Company. She
is currently the General Manager of the Operations Support Department of the Consumer Business Group of the
Company.* Senior Management Members
For the work experience of directors Wu Xiaoru Jiang Tao Nie Xiaolin and Duan Dawei refer to "Directors"
section above.Yu Jidong Vice President of the Company joined iFLYTEK in 1999 after graduating from UTSC. With
nearly two decades of experience in speech technology he is dedicated to the development of intelligent voice
and core AI technologies. Currently he serves as the President of iFLYTEK's Consumer Business Group. In
addition he holds several key positions: Chairman of Anhui iFLYTEK Jiuzhi Technology Co. Ltd. Executive
Director of Anhui iFLYTEK Homebot Technology Co. Ltd. Executive Director of Zhejiang Jinxun Digital
Technology Co. Ltd. Director of Lingyang Industrial Internet Co. Ltd. Director of Shanghai iFLYTEK
Yuannian Technology Co. Ltd. and General Manager of Anhui iFLYTEK Cloud Creation Technology Co.Ltd.Wang Ming the Company’s finance Officer holds a Master's degree in Accounting and is a certified
accountant. Wang Ming the Company's CFO holds a master's degree in Accounting and is a certified public
accountant. She started her career at Hefei Department Store Group Co. Ltd. serving as Deputy Manager of the
Finance Department of the Commercial Building and Director of Jomart’s Accounting Department of Hefei
Department Store Group. She later joined iFLYTEK as the General Manager of the Business Finance
Department and Deputy CFO. Currently she serves as the Company's CFO and is also a supervisor at Tianjin
iFLYTEK Financial Leasing Co. Ltd.Positions held in shareholding entities
√ Applicable □ Not applicable
Are remuneration
Name of the or allowances
Position Held in the Term Starting Term Ending
Person Name Shareholding received from
Shareholding Entity Date Date
Entity shareholding
entity
General Manager of the
China Mobile Technology Innovation
February 1
Chen Hongtao Communications Department of China Yes
2024
Corporation Mobile Communications
Corporation
89Full text of the iFLYTEK's 2024 Annual Report
General Manager of the
China Mobile Internal Audit Department
October 17
Cao Yingchun Communications of China Mobile Yes
2023
Corporation Communications
Corporation
Explanation of positions held in the
N/A
shareholding entity
Positions held in other entities
√ Applicable □ Not applicable
Whether
Position remuneration or
Person
Name of other entities in other Term Starting Date Term Ending Date allowances are
Name
entities received from
other entities
Liu
Executive
Qingfe Anhui Yanzhi Technology Co. Ltd. December 9 2019 No
Director
ng
Liu
Xunfei Healthcare Technology Co.Qingfe Chairman December 24 2021 No
Ltd.ng
Liu
Lingyang Industrial Internet Co.Qingfe Chairman September 5 2022 No
Ltd.ng
Liu
Qingfe Beijing Butel Co. Ltd. Director December 29 2020 No
ng
Liu
Anhui Oristruct Biotechnology Co.Qingfe Director March 4 2022 No
Ltd.ng
Wu Wuhan iFLYTEK Xingzhi Executive
November 24 2017 No
Xiaoru Technology Co. Ltd. Director
Wu Anhui Dongfang iFLYTEK Executive
January 10 2017 January 23 2024 No
Xiaoru Education Co. Ltd. Director
Wu Jiangsu Yixing Automobile Executive
November 4 2021 No
Xiaoru Technology Co. Ltd. Director
Wu USTC Silicon Valley Service Executive
August 3 2022 No
Xiaoru Platform (Anhui) Co. Ltd Director
Wu iFLYTEK Central China (Wuhan) Executive
December 11 2020 No
Xiaoru Co. Ltd. Director
Nie Guangdong iFLYTEK Qiming Executive
February 11 2020 December 24 2024 No
Xiaolin Technology Development Co. Ltd. Director
Nie Beijing Liyun General Education Executive
August 20 2021 No
Xiaolin Technology Co. Ltd. Director
Nie Beijing Headline Education
Chairman September 9 2021 No
Xiaolin Information Technology Co. Ltd.Nie Anhui Institute of Information
Chairman May 23 2022 No
Xiaolin Technology
Beijing Normal University
Nie
iFLYTEK Education Technology Chairman September 6 2024 No
Xiaolin
Co. Ltd.Nie iFLYTEK Lingzhi (Jiangsu)
Chairman April 28 2024 No
Xiaolin Technology Co. Ltd.Executive
Jiang Beijing iFLYTEKInformation Director
July 2 2010 No
Tao Technology Co. Ltd. and
Manager
Executive
Jiang Tianjin iFLYTEK Information
Director November 11 2011 No
Tao Technology Co. Ltd.and
90Full text of the iFLYTEK's 2024 Annual Report
Whether
Position remuneration or
Person
Name of other entities in other Term Starting Date Term Ending Date allowances are
Name
entities received from
other entities
Manager
Executive
Jiang iFLYTEK (Beijing) Technology Co. Director
August 4 2016 No
Tao Ltd. and
Manager
Jiang Beijing iFLYTEK Qiming Executive
December 4 2014 No
Tao Technology Development Co. Ltd. Director
Jiang iFLYTEK (Hebei) Technology Co. Executive
October 21 2016 April 15 2024 No
Tao Ltd. Director
Jiang Hefei Feier Smart Technology Co.Director June 15 2020 No
Tao Ltd.Jiang Beijing iFLYTEK Jizhi Technology Executive
June 28 2021 No
Tao Co. Ltd. Director
Jiang Beijing iFLYTEK Zhiying Executive
December 28 2021 No
Tao Technology Co. Ltd. Director
Jiang Beijing iFLYTEK Jingdala Executive
March 3 2021 No
Tao Technology Co. Ltd. Director
Jiang Xunfei Healthcare Technology Co.Director December 24 2021 January 25 2024 No
Tao Ltd.Zhao Independ
Xudon China National Uranium Corporation ent July 17 2023 No
g Director
Zhang Independ
Benzha Anhui Ankai Automobile Co. Ltd. ent April 28 2021 January 25 2024 Yes
o Director
Zhang Independ
Benzha Guoyuan Securities Co. Ltd. ent January 15 2020 Yes
o Director
Zhang Independ
Hefei Department Store Group Co.Benzha ent June 21 2024 Yes
Ltd.o Director
Wu Independ
Anhui BBCA Pharmaceutical Co.Cishen ent July 7 2022 Yes
Ltd.g Director
Wu Independ
Anhui Nextooling Technology Co.Cishen ent December 15 2020 May 10 2024 Yes
Ltd.g Director
Wu Independ
Anhui Fuhuang Steel Structure Co.Cishen ent December 23 2021 Yes
Ltd.g Director
Wu Independ
Anhui Architectural Design and
Cishen ent June 28 2017 August 25 2023 Yes
Research Institute Co. Ltd.g Director
Chair of
the Board
Zhang
CAS Quantum Network Co. Ltd. of November 29 2016 No
Lan
Superviso
rs
Zhang
QuantumCTek Co. Ltd. Director August 2 2021 No
Lan
Zhang Anhui Asky Quantum Technology
Director December 22 2020 No
Lan Co. Ltd.Zhang Origin Quantum Computing
Director December 31 2020 No
Lan Technology (Hefei) Co. Ltd.Zhang Institute of Advanced Technology at Vice
December 31 2024 No
Lan USTC Dean
Vice
Zhang
USTC Holdings Co. Ltd. President September 1 2020 December 31 2024 No
Lan
and CFO
Duan Tianjin iFLYTEK Financial Leasing
Chairman November 5 2019 No
Dawei Co. Ltd.
91Full text of the iFLYTEK's 2024 Annual Report
Whether
Position remuneration or
Person
Name of other entities in other Term Starting Date Term Ending Date allowances are
Name
entities received from
other entities
Duan Xunfei Healthcare Technology Co.Director December 24 2021 No
Dawei Ltd.Yu Anhui iFLYTEK Jiuzhi Technology
Chairman November 9 2022 No
Jidong Co. Ltd.Yu Anhui Kexun Jinse Technology Co. Executive
November 30 2022 No
Jidong Ltd. Director
Yu Zhejiang Jinxun Digital Technology Executive
October 18 2022 No
Jidong Co. Ltd. Director
Yu Lingyang Industrial Internet Co.Director September 5 2022 No
Jidong Ltd.Yu Shanghai iFLYTEK Yuannian
Director November 24 2021 No
Jidong Technology Co. Ltd.General
Yu Anhui iFLYTEK Cloud Creation Manager
October 17 2024 No
Jidong Technology Co. Ltd. and
Director
Wang Tianjin iFLYTEK Financial Leasing
Director November 5 2019 No
Ming Co. Ltd.Explanation of positions held
N/A
in other entities
Penalties imposed by the securities regulator on current and former directors supervisors and senior
management members within the past three years
□ Applicable √ Not applicable
3. Compensation for in the Company's Directors Supervisors and Senior Management Members
The Company has established a robust performance evaluation and compensation system for its directors
supervisors and senior management members to align with modern corporate incentive and restraint
mechanisms and enhance operational efficiency by motivating these personnel. According to its "Compensation
Guidelines for Directors Supervisors and Senior Management Members" the said compensation is based on
Company scale and performance and is determined through comprehensive assessment of fulfillment of
responsibilities and goals.The compensation determination follows these principles: combining pay with performance and aligning
responsibilities rights and benefits to leverage compensation's incentive and restraint functions; closely linking
income to company benefits and work goals in line with market value; ensuring compensation supports long-
term company development and stability; and maintaining open fair and impartial compensation standards.The Board's Compensation Committee may approve special rewards or penalties concerning specific matters
which serve as a supplement to the remuneration of directors supervisors and senior management members.The compensation for directors and senior management members comprises an annual salary a bonus and
perks. The annual salary consists of a base salary and a performance-based salary. Supervisors who are in-house
employees receive compensation and benefits based on their job level and performance appraisal plus a
monthly allowance for supervisors. The remuneration for independent directors is determined by the
Shareholders’ Meeting according to market conditions and other relevant factors.The Board's Compensation and Evaluation Committee oversees the compensation and performance
assessment of the Company’s directors and senior management members. Directors supervisors and senior
92Full text of the iFLYTEK's 2024 Annual Report
management members receive salary based on their positions and the Company's pay scheme. Their annual
bonus is determined by year-end performance evaluation and approved by the Board or Shareholders’ Meeting.The Board's Compensation and Evaluation Committee oversees the compensation and performance assessment
of rthe Company’s directors and senior management members. Directors supervisors and senior management
members receive salary based on their positions and the Company's pay scheme. Their annual bonus is
determined by year-end performance evaluation and approved by the Board or Shareholders’ Meeting.According to the Company’s "Compensation Guidelines for Directors Supervisors and Senior
Management Members" the annual compensation for the Company's Chairman was 11203200 RMB yuan
(calculated as 2% of the Company's audited net profit for the year). However considering the Company's
development stage and to provide more substantial rewards to outstanding employees with Class A performance
Chairman Liu Qingfeng proposed on his own accord a reduction in his annual salary. Consequently his actual
annual compensation for 2024 was 3.9 million RMB yuan.Compensation for the Company's Directors Supervisors and Senior Management Members During This
Reporting Period
In 0000 RMB yuan
Whether
Total pre-tax compensation
compensation is received
Name Gender Age Position Service Status
received from from any of the
the Company Company's
related parties
Liu
Male 51 Chairman Incumbent 390 No
Qingfeng
Chen
Male 52 Director Incumbent 1.6 Yes
Hongtao
Wu
Male 52 President and Director Incumbent 280 No
Xiaoru
Director Vice President Board
Jiang Tao Male 51 Incumbent 200 No
Secretary
Duan
Male 52 Director and Vice President Incumbent 220 No
Dawei
Nie
Male 45 Director and Vice President Incumbent 248 No
Xiaolin
Zhao
Male 65 Independent Director Incumbent 16 No
Xudong
Zhao
Male 61 Independent Director Incumbent 16 No
Xijun
Zhang
Male 61 Independent Director Incumbent 16 No
Benzhao
Wu
Male 62 Independent Director Incumbent 16 No
Cisheng
Cao
Female 55 Chair of the Board of Supervisors Incumbent 1.6 Yes
Yingchun
Zhang
Female 58 Supervisorr Incumbent 0 Yes
Lan
Dong
Female 45 Supervisor Incumbent 55 No
Xueyan
Lu
Female 35 Supervisor Incumbent 92.96 No
Xueling
Wang
Female 45 Chief Finance Officer Incumbent 99 No
Ming
Yu
Male 47 Vice President Incumbent 220 No
Jidong
Liu Xin Male 52 Director Resigned 0.8 Yes
93Full text of the iFLYTEK's 2024 Annual Report
Whether
Total pre-tax compensation
compensation is received
Name Gender Age Position Service Status
received from from any of the
the Company Company's
related parties
Liu Wei Male 49 Chair of the Board of Supervisors Resigned 0.8 Yes
Wang
Male 48 Supervisor Resigned 22.55 No
Hongxing
Total 1896.31
Explanation of other circumstances
□ Applicable √ Not applicable
VI. Directors' Performance of Their Duties During this Reporting Period
1. Shareholders' Meetings in 2024
Disclosure
Session Dates Resolution
Date
Announcement No.: 2024-001
The 6th
Announcement title: Announcement of the Sixth Meeting of the Sixth Board of
Meeting of the January 9 January 10
Directors
Sixth Board of 2024 2024
Media channels for disclosure: The Securities Times China securities Journal
Directors
Shanghai Securities News Securities Times and http://www.cninfo.com.cn
The 7th Announcement No.: 2024-016
Meeting of the April 21 April 23 Announcement title: Announcement of the Resolution of the Board Meeting
Sixth Board of 2024 2024 Media channels for disclosure: The Securities Times China securities Journal
Directors Shanghai Securities News Securities Times and http://www.cninfo.com.cn
Announcement No.: 2024-040
The 8th
Announcement title: Announcement of the Resolution of the Board Meeting
Meeting of the August 20 August 22
Concerning the Mid-year Report
Sixth Board of 2024 2024
Media channels for disclosure: The Securities Times China securities Journal
Directors
Shanghai Securities News Securities Times and http://www.cninfo.com.cn
The 9th Announcement No.: 2024-050
Meeting of the October 18 October 19 Announcement title: Announcement of the Resolution of the Board Meeting
Sixth Board of 2024 2024 Media channels for disclosure: The Securities Times China securities Journal
Directors Shanghai Securities News Securities Times and http://www.cninfo.com.cn
Announcement No.: 2024-060
The 10th
Announcement title: Announcement of the Tenth Meeting of the Sixth Board of
Meeting of the November November
Directors
Sixth Board of 22 2024 23 2024
Media channels for disclosure: The Securities Times China securities Journal
Directors
Shanghai Securities News Securities Times and http://www.cninfo.com.cn
Announcement No.: 2024-066
The 11th
Announcement title: Announcement of the Eleventh Meeting of the Sixth Board
Meeting of the December December
of Directors
Sixth Board of 9 2024 10 2024
Media channels for disclosure: The Securities Times China securities Journal
Directors
Shanghai Securities News Securities Times and http://www.cninfo.com.cn
Announcement No.: 2024-079
The 12th
Announcement title: Announcement of the Twelfth Meeting of the Sixth Board
Meeting of the December December
of Directors
Sixth Board of 30 2024 31 2024
Media channels for disclosure: The Securities Times China securities Journal
Directors
Shanghai Securities News Securities Times and http://www.cninfo.com.cn
Attendance of Directors at Board Meetings and Shareholders' Meetings
Director Number of Number of Number of Number of Number of Failure to Number of
Name Board Board Board Board Absences Attend Two Shareholders
94Full text of the iFLYTEK's 2024 Annual Report
Meetings to Meetings Meetings Meetings from Consecutive Meetings
Attend During Attended in Attended Attended Board Board Attended
This Reporting Person Through by Proxy Meetings Meetings
Period Communicatio
n Methods
Liu
7 5 2 0 0 No 5
Qingfeng
Chen
6 4 2 0 0 No 4
Hongtao
Wu Xiaoru 7 6 1 0 0 No 5
Jiang Tao 7 7 0 0 0 No 5
Duan
7 6 1 0 0 No 5
Dawei
Nie
7 7 0 0 0 No 5
Xiaolin
Zhao
7 3 4 0 0 No 5
Xudong
Zhao Xijun 7 3 4 0 0 No 5
Zhang
7 7 0 0 0 No 5
Benzhao
Wu
7 7 0 0 0 No 5
Cisheng
2. Attendance of Directors at Board Meetings and Shareholders' Meetings
Explanation for failure to attend two consecutive Board meetings
Not applicable
3. Directors' Objections to the Company's Matters
Has any director raised objections to the Company's pertinent matters
□ Yes √ No
During this reporting period no director has raised any objection to the Company's major matters.
4. Explanation of Directors' Performance of Duties in Other Ways
Has any director given advice which has been adopted by the Company
√Yes □No
Explanation of adoption or non-adoption of directors' recommendations
The Company's Directors and Independent Directors perform their duties strictly in accordance with the
Company's Rules of Procedure of the Board of Directors Articles of Association and Independent Directors
Regulations to ensure compliance and effective governance. During this reporting period the Company's
directors and independent directors actively engaged in overseeing the Company's operations and management.The independent directors meticulously examined key matters such as the Company's financial results and
standing stock incentive plan private placement related-party transactions external guarantees and the
management of raised funds. They participated in decision-making with dedication leveraging their
professional expertise to deliver objective impartial and independent judgments. This fully utilized the role of
95Full text of the iFLYTEK's 2024 Annual Report
independent directors in safeguarding the legitimate rights and interests of the Company all shareholders and
particularly minority shareholders.Key recommendations are as follows:
1) Given the significant historical opportunities brought by the AI surge and the socio-economic
environment in 2024 and considering that iFLYTEK's early investments in Three’s Company Media Group and
UBTech have delivered considerable returns and that these companies have already gone public it is advisable
for the Company to divest its equity stakes in these companies by phases. Redirecting these proceeds toward the
development of its proprietary large language model iFLYTEK SPARK and into business areas and strategic
directions with strong growth potential would be strategically rewarding. This move would help mitigate the
impact of fluctuations in the invested companies' stock prices on the Company’s financial results. Moreover it
would enable the Company to seize strategic opportunities and promote the coordinated sharing of resources
across the organization. This in turn would facilitate the implementation of the Company's strategic goals and
drive the development of its businesses.Adoption and implementation: The Company has disposed of part of its equity stake in the
aforementioned companies. The proceeds from such disposal have been allocated to the development of
iFLYTEK SPARK and its rapid implementation in various business scenarios. The Company's business
operations including education healthcare open platform and consumer hardware have benefited from the
technology upgrade of this large language model leading to enhanced user experience and a tangible boost in
product competitiveness.
2) The Company is advised to actively promote the implementation of iFLYTEK SPARK in collaboration
with central and state-owned enterprises.Adoption and implementation: iFLYTEK SPARK has been empowering central and state-owned
enterprises to accelerate their development of proprietary foundational capabilities and industry-specific
applications. This is evidenced by the Company’s successful bids in key sectors such as energy
telecommunications finance education government services and healthcare. As of December 2024
iFLYTEK has jointly launched industry-specific models with over 20 leading enterprises including PetroChina
CNOOC National Energy China Resources Green Development Bank of Communications and PICC
covering more than 300 application scenarios. Third-party data shows that in 2024 iFLYTEK ranked first in
both the number of bids it participated and value of contracts secured for the applications of its large language
model.VII. Performance of Specialized Board Committees During this Reporting Period
Duty
Number
Key Performa
of Objection
Committee Member Date Content Recomme nce in
Meeting s (if any)
ndations Other
s Held
Ways
Liu Reviewing the "2023
Qingfeng Environmental Social and
ESG April
Jiang Tao 2 Governance (ESG) and Adopted
Committee 21 2024
Zhang Corporate Social Responsibility
Benzhao Report"
Liu Reviewing the Company's
ESG August
Qingfeng 2 proposed "2024 Mid-Year Adopted
Committee 10 2024
Jiang Tao Environmental and Social
96Full text of the iFLYTEK's 2024 Annual Report
Duty
Number
Key Performa
of Objection
Committee Member Date Content Recomme nce in
Meeting s (if any)
ndations Other
s Held
Ways
Zhang Responsibility Report"
Benzhao
Zhang
Benzhao Reviewing the Company's
Audit Wu March proposed "Q1 2024 Related-
5 Adopted
Committee Cisheng 29 2024 Party Transactions Audit
and Liu Report"
Qingfeng
Reviewing the Company's
proposed "2023 Financial Final
Accounts Report" "2023 Annual
Profit Distribution Plan"
"2023 Internal Control
Evaluation Report" "Estimated
Zhang Daily Related-party
Benzhao Transactions for 2024" "2023
Audit Wu April Annual Report and Summary"
5 Adopted
Committee Cisheng 11 2024 "2023 Annual Report on Non-
and Liu operating Capital Transactions
Qingfeng and Other Related-party
Transactions" the Audit and
Supervision Department's "2023
Work Summary and 2024 Work
Plan" and the
"Proposal to Renew the Audit
Firm Appointment for 2024"
Zhang Reviewing the Company's
Benzhao proposed "Report on Key
Audit Wu April Matters Q1 2024" the Audit and
5 Adopted
Committee Cisheng 22 2024 Supervision Department's "Q1
and Liu 2024 Work Report" and "Q1
Qingfeng 2024 Financial Report"
Zhang Reviewing the Company's
Benzhao proposed "Report on Key
Audit Wu August Matters Q2 2024" the Audit and
5 Adopted
Committee Cisheng 20 2024 Supervision Department's "Q2
and Liu 2024 Work Report" and "2024
Qingfeng Mid-year Report"
Zhang Reviewing the Company's
Benzhao proposed "Report on Key
Audit Wu October Matters Q3 2024" the Audit and
5 Adopted
Committee Cisheng 13 2024 Supervision Department's "Q3
and Liu 2024 Work Report" and
Qingfeng "Q3 2024 Financial Report"
Reviewing the Company's
proposed "2023 Compensation
Zhao Xijun Plan for Directors Supervisors
Compensation Wu and Senior Management" "Plan
April
and Evaluation Cisheng 5 to Repurchase and Cancel Some Adopted
212024
Committee and Wu Granted Restricted Shares" and
Xiaoru "Plan to Revoke Some Shares
Issued under stock incentive
Plan"
Reviewing the Company's
Zhao Xijun
proposed "Plan to Purchase
Compensation Wu
August Liability Insurance for the
and Evaluation Cisheng 5 Adopted
9 2024 Company and Its Directors
Committee and Wu
Supervisors and Senior
Xiaoru
Management Members"
Compensation Zhao Xijun October Reviewing the Company's
5 Adopted
and Evaluation Wu 12 2024 "Proposal on the Achievement
97Full text of the iFLYTEK's 2024 Annual Report
Duty
Number
Key Performa
of Objection
Committee Member Date Content Recomme nce in
Meeting s (if any)
ndations Other
s Held
Ways
Committee Cisheng of Exercise Conditions for the
and Wu Third Tranche of Stock Options
Xiaoru Under the 2021 Stock Option
and Restricted Stock Incentive
Plan"
Impleme
nting an
employee
stock
ownershi
p plan
effectivel
y aligns
the
interests
Reviewing the Company's of
Zhao Xijun proposed "Initial Employee sharehold
Compensation Wu Novemb Stock Ownership Plan (Draft) ers the
and Evaluation Cisheng 5 er 19 and Its Summary" and the Adopted Company
Committee and Wu 2024 "Management Measures for the and key
Xiaoru Initial Employee Stock employee
Ownership Plan" s
promotin
g a
collective
focus on
the
Company
's long-
term
developm
ent.Reviewing the Company's
proposed "Plan to Repurchase
Zhao Xijun
and Cancel Some Granted
Compensation Wu Decemb
Restricted Shares" and "Proposal
and Evaluation Cisheng 5 er 6 Adopted
on the Achievement of
Committee and Wu 2024
Conditions for Lifting
Xiaoru
Restrictions on Stock Incentive
Shares"
Zhao
Xudong Reviewing the Company's
Nomination April
Zhao Xijun 1 proposed "Plan for the Election Adopted
Committee 16 2024
and Liu of Non-Independent Directors"
Qingfeng
Ensuring
the
steady
growth of
Liu existing
Qingfeng mature
Chen and
Reviewing the Company's
Strategy Hongtao July 6 profitable
2 "Proposal on Further Focusing Adopted
Committee Wu Xiaoru 2024 businesse
its Business Strategy"
Jiang Tao s and
and Zhang accelerate
Benzhao the
developm
ent of
core
businesse
98Full text of the iFLYTEK's 2024 Annual Report
Duty
Number
Key Performa
of Objection
Committee Member Date Content Recomme nce in
Meeting s (if any)
ndations Other
s Held
Ways
s through
strategic
focus
Liu
Qingfeng
Chen Reviewing the Company's
Strategy Hongtao October "Proposal on External
2 Adopted
Committee Wu Xiaoru 18 2024 Investment and Related-party
Jiang Tao Transactions"
and Zhang
Benzhao
VIII. Performance of the Board of Supervisors
Has the Board of Supervisors identified any risk facing the Company during this reporting period
□ Yes √ No□
The Board of Supervisor has no objections to the matters it supervised during this reporting period.IX. The Company's Employees
1. Number of Employees and Their Professional and Education Background
Number of employees of the parent company at the end of the
5346
reporting period
Number of employees of major subsidiaries at the end of the
10205
reporting period
Total number of employees as at the end of the reporting period 15551
Total number of employees receiving remuneration during the
17554
period
Number of retired employees for whom the parent company
and major subsidiaries are liable to bear expenses at the end of 0
the reporting period
Professional Background
Category Number
Production 0
Sales 3342
Technology 9752
Finance 227
Administration 214
Management 223
Others 1793
Total 15551
Education Background
Category Number
Doctorate 124
Master's 4720
99Full text of the iFLYTEK's 2024 Annual Report
Undergraduate 9908
2-year college and below 799
Total 15551
2. Compensation Policy
iFLYTEK's compensation policy respects labor knowledge and value creation. It strictly complies with
major Chinese laws such as the Labor Law of the PRC the Labor Contract Law of the PRC the Social
Insurance Law of the PRC and the Law on the Protection of Women's Rights and Interests of the PRC. It is
strongly committed to protecting employees' legal rights.
1) Transparent and efficient performance evaluation system
The Company's performance evaluation system is based on the principles of "dynamic alignment with
change relevance flexibility and transparency." It aims to create a transparent and efficient system. Regular
evaluations help employees understand how well their abilities match their job responsibilities and support their
ongoing progress.
2) Dynamic adjustment in organizational evaluation
The Company has refined its individual personnel and organizational evaluation mechanism which is
based on departmental quarterly organizational performance. Aligning with the Company's annual business
objectives and enforcing organizational performance management it has detailed departmental quarterly goals
and management mechanisms. It has also established a dynamic link between organizational performance and
performance-based pay to employees. By strengthening process-oriented organizational performance
management the Company ensures goal achievement while offering more flexible employee incentives.
3) Flexible and transparent employees evaluation
The Company has established a performance evaluation system that strongly aligns with organizational
goals and encourages interaction between superiors and subordinates.The Company has created a transparent performance evaluation system through public announcements and
internal audits improving employees' performance management. It has reformed the administration-based
assessment mechanism to fit project management needs ensuring flexible evaluations. By strengthening the
dynamic link between performance results and pay to employees the Company makes performance the main
basis for value distribution.
4) Co-creation and sharing-based compensation incentive system
the Company has established a co-creation and sharing-based equity and compensation distribution
mechanism. This ensures sustainable and healthy development by aligning incentives with the Company's
business and operational goals and circumstances.the Company's compensation design advocates co-creation and benefit sharing encouraging employees to
tangibly benefit from business growth through their efforts. With a simple clear comprehensive compensation
structure it aligns job levels with pay helping employees understand the link between their work and rewards.In designing compensation incentives the Company strives to achieve three types of fairness:
First external fairness is ensured through annual external compensation surveys which inform the
Company's salary standards and adjustments.Second the Company ensuring internal fairness by establishing salary benchmarks across different
positions based on value;
Third individual performance equity is achieved by linking employee pay to performance ensuring merit-
based compensation.
100Full text of the iFLYTEK's 2024 Annual Report
To enhance the enthusiasm and creativity of the management and employees and to boost business growth
the Company has implemented a stock incentive plan. This plan improves the incentive mechanism aligns
company and employee interests attracts and retains top talent and motivates managers and key technological
personnel.By the end of 2024 the Company's stock incentive plan had cumulatively covered 7187 persons.The Company complies with the disclosure requirements for the software and IT services industry as
stipulated in the Self-Regulatory Guidelines for Companies Traded on Shenzhen Stock Exchange No. 3:
Industry Information Disclosure.In 2024 total employee compensation was 4311246500 RMB yuan representing 18.66% of total
operating costs indicating that the Company's profits are sensitive to changes in employee compensation. The
key technological staff grew to 11.50% of total employees in 2024 from 10.79% in 2023 up 0.71 percentage
points. Their compensation rose to 20.78% of the Company's total compensation in 2024 from 18.48% in 2023
up 2.30 percentage points.
3. Training Programs
iFLYTEK driven by its core belief of empowering employees while creating value for the society
prioritizes talent development. It has established “Rules for Employee Training Programs” and focuses on
employee growth through learning in operations talent development and leadership programs offering strong
workforce support for the Company's rapid growth.To build robust internal talent development pathways the Company has refined its talent growth system.This includes establishing a qualifications framework launching a stock incentive scheme and aligning
employee and corporate development. A dynamic job rotation system is in place to foster well-rounded talent
promoting mutual success for both the organization and employees.A Robust Learning and Development System
■ Leadership development ■ Professional development ■ General development
To support both business and personal growth iFLYTEK has established and continues to refine a multi-
level role-based talent training and development system. This system encompasses diverse training programs
covering leadership professional and general competencies catering to various roles such as social recruits
campus recruits business experts and management personnel. In addition to internal knowledge sharing the
Company actively integrates external learning resources to provide employees with a solid platform and the
necessary support for continuous and comprehensive personal growth.In 2024 the Company offered 1860 online courses to an attendance of 29141 employees. It organized
1166 offline training sessions for 49206 employees covering various fields and providing 88840 hours of
immersive learning. For new hires it held 44 social recruitment training sessions and a week-long campus
recruitment training camp. Six hundred and thirty-six professional speakers shared knowledge for 2275 hours.To support employees' personal and professional growth the Company paired over 1000 mentors with 2000
new and high-potential employees and created personal development plans aligned with organizational and
individual goals to support their growth.Seamless employee development pathways
■ Vertical development ■ Horizontal development
101Full text of the iFLYTEK's 2024 Annual Report
The Company has designed a diverse career development framework with over 30 tracks including
management product technology algorithm research and project management supported by a comprehensive
learning system. This enables employees to either deepen their expertise within a track or broaden their skills
across tracks fostering both specialization and interdisciplinary growth.Efficient growth acceleration mechanism
■Job rotation ■Project experience ■Talent pool
To boost employee growth momentum and cultivate top talent more rapidly the Company has
implemented a host of development initiatives. It has issued the "Core Principles and Basic Guidelines for
Talent Management" to unify the approach to talent development and management clarify the mission and
responsibilities of officials set standards for talent development and refine mechanisms for talent selection
appointment and development. Based on a comprehensive talent development system it has created an
inexhaustible source of talent supply. Furthermore the Company has introduced an internal job rotation
mechanism. Through rotational assignments it ensures accelerated talent development. This mechanism
channels a large number of talent from back-office R&D positions into frontline product and business roles
strongly promoting talent mobility between front and back-office functions. As a result a large number of well-
rounded excellent talent have been rapidly developed.
4. Labor outsourcing
√ Applicable □ Not applicable
Total labor outsourcing hours 362942.67
Total remuneration paid for labor outsourcing (RMB yuan) 20086544.65
X. Profit Distribution and Conversion of Capital Reserves into Share Capital in 2024
Formulation implementation or adjustment of the Company’s profit distribution policy particularly about cash
dividend during this reporting period
√ Applicable □ Not applicable
Since IPO the Company has prioritized investor returns and stipulated cash dividend rules under its
Articles of Association. To enhance the scientific sustainable and stable shareholder return mechanism
increase the transparency and operability of profit distribution policy making and protect investors' legitimate
rights the Company formulated a three-year (2024 - 2026) shareholder return plan. This plan was approved at
the 2023 annual Shareholders’ Meeting. The plan was developed based on China’s Company Law the CSRC's
"Notice on Further Implementing Cash Dividend Policies for Listed Companies" the "CSRC Regulatory
Guidance on Cash Dividends for Listed Companies (2023 Revision)" and other relevant laws regulations and
the Company's Articles of Association.
102Full text of the iFLYTEK's 2024 Annual Report
Explanation of the Cash Dividend Policy
Does it comply with the provisions of the Articles of Association or resolutions of the Company'
Yes
Shareholders' Meeting:
Is the dividend policy explicit and clear in terms of standards and ratios Yes
Are the decision-making procedures and mechanisms solid and reliable Yes
Have the independent directors fulfilled their duties and exerted their due influence Yes
If no cash dividend is distributed the Company should disclose the specific reasons and the measures it
Not applicable
plans to take to enhance investor returns.Have minority shareholders been given ample opportunities to voice their opinions and demands and are
Yes
their legitimate rights and interests fully protected
If there have been adjustments or changes to the cash dividend policy were the conditions and procedures
Yes
lawful and transparent
During this reporting period the Company was profitable and the parent company had positive distributable
profits available to shareholders but no cash dividend distribution plan was proposed.□ Applicable √ Not applicable
Profit Distribution and Conversion of Capital Reserves into Share Capital in 2024
√ Applicable □ Not applicable
Number of bonus shares per 10 shares 0
Pre-tax dividend per 10 shares (RMB yuan) 1
Number of additional shares from capital reserve conversion
0
per 10 shares
Share capital base for the distribution plan (shares) 2303298520
Cash distributed pre-tax (RMB yuan) 230329852.00
Cash dividend payment via other methods (e.g. share
0.00
buybacks) (RMB yuan)
Total cash dividend payment (including via other methods)
230329852.00
(RMB yuan)
Distributable profits (RMB yuan) 3294222233.75
The ratio of total cash dividends (including via other methods)
100%
to total profit distribution
Explanation of cash dividend distributed this time
As the Company is in a mature development stage and has significant capital expenditure plans the proportion of cash dividends
in the current profit distribution scheme should be at least 40%.Detailed explanation of the profit distribution or capital reserve conversion proposal
The profit distribution plan is based on the total share capital recorded on the equity registration date for the distribution
(excluding repurchased shares in the dedicated account). There will be no bonus shares or capital reserve conversion. The
Company's current total share capital is 2311692581 shares with 8394061 shares repurchased and held in the dedicated
account. The expected total share capital for profit distribution is 2303298520 shares with a total cash dividend of
230329852.00 RMB yuan. The remaining undistributed profit of 3063892381.75 RMB yuan will not be allocated for now. If
the Company's share capital changes due to equity incentive exercises between the date when the profit distribution proposal was
approved and the equity registration date the distribution will be based on the total share capital on the equity registration date
with the distribution ratio remaining unchanged and the total amount adjusted accordingly.XI. Implementation of the Company’s Stock Incentive Plan Employee Stock Ownership Plan or Other
Employee Incentive Measures
√ Applicable □ Not applicable
103Full text of the iFLYTEK's 2024 Annual Report
1. Stock Incentive Plan
1) Phase II Restricted Stock Incentive Plan
On November 29 2023 the Company's Sixth Board of Directors at its 5th meeting approved the proposed
"Plan to Repurchase and Cancel Some Granted Restricted Shares". As 47 beneficiaries of the Phase II
Restricted Stock Incentive Plan have left the Company 135720 unvested restricted shares from these
beneficiaries are to be repurchased and cancelled and the number of incentive beneficiaries is changed to 1598.For details see the "Announcement on the Repurchase and Cancellation of Some Granted Restricted Shares
Under the Stock Incentive Plan" published on November 30 2023 in the Securities Times China Securities
Journal Shanghai Securities News Securities Daily and on the CNINFO website at http://www.cninfo.com.cn.This repurchase and cancellation was completed on February 23 2024. At the same time the 5th meeting of
the Sixth Board of Director reviewed and approved the "Proposal on the Achievement of Conditions for Lifting
Restrictions on Stock Incentive Shares". According to the Company's "Phase II Restricted Stock Incentive
Plan" the conditions for the third release of restrictions under the 2021 Stock Incentive Plan have been met. For
details see the "Announcement on the Achievement of Conditions for Lifting Restrictions on Stock Incentive
Shares" published on November 30 2023 in Securities Times China Securities Journal Shanghai Securities
News Securities Daily and on the CNINFO website at http://www.cninfo.com.cn.
2) The 2021 Stock Option and Restricted Stock Incentive Plan
(1) Restricted stock from the 2021 Stock Option and Restricted Stock Incentive Plan
On November 29 2023 at its 5th meeting the Company's sixth Board of Directors approved the Proposal
on the Cancellation of Some Stock Options Under the Stock Incentive Plan. Due to 26 beneficiaries of the stock
option plan not exercising their options within the valid period the Company will cancel 154090 unexercised
stock options. For details see the announcement published on November 30 2023 in Securities Times China
Securities Journal Shanghai Securities News Securities Daily and on the CNINFO website at
http://www.cninfo.com.cn titled "Announcement on the Cancellation of Some Stock Options Under the Stock
Incentive Plan." Simultaneously at the same meeting the proposed "Plan to Repurchase and Cancel Some
Granted Restricted Shares" was approved. As 84 beneficiaries of the restricted stock under the 2021 Stock
Option and Restricted Stock Incentive Plan had left the Company planned to repurchase and cancel 177640
shares of restricted stock still under restriction adjusting the number of incentive beneficiaries to 1987 people.For details see the "Announcement on the Repurchase and Cancellation of Some Granted Restricted Shares
Under the Stock Incentive Plan" published on November 30 2023 in the Securities Times China Securities
Journal Shanghai Securities News Securities Daily and on the CNINFO website at http://www.cninfo.com.cn.This repurchase and cancellation was completed on February 23 2024.On April 21 2024 the Company's Sixth Board of Directors at its 7th meeting approved another "Plan to
Repurchase and Cancel Some Granted Restricted Shares." Due to some employees leaving failing performance
assessments or not meeting the conditions for lifting restrictions from the 2021 Stock Option and Restricted
Stock Incentive Plan the Company intended to repurchase and cancel 3641608 shares of restricted stock still
under restriction from the 1987 incentive beneficiaries adjusting the number of incentive beneficiaries to 1936
people. For details see the "Announcement on the Repurchase and Cancellation of Some Granted Restricted
Shares Under the Stock Incentive Plan" published on April 23 2024 in the Securities Times China Securities
Journal Shanghai Securities News Securities Daily and on the CNINFO website at http://www.cninfo.com.cn.This repurchase and cancellation was completed on June 7 2024.
104Full text of the iFLYTEK's 2024 Annual Report
On October 18 2024 the proposed Plan to Adjust the Exercise Price of Stock Options and the Repurchase
Price of Restricted Shares Under the Stock Incentive Plan was reviewed and approved at the 9th meeting of the
Sixth Board of Directors. Due to the 2023 annual equity distribution in accordance with the Company's 2021
Stock Option and Restricted Stock Incentive Plan the Company adjusted the exercise price of stock options
under the 2021 Stock Incentive Plan to 52.65 RMB yuan per share and the repurchase price of restricted shares
under the same plan to 26.18 RMB yuan per share. For details see the "Announcement on Adjusting the
Exercise Price of Stock Options and the Repurchase Price of Restricted Shares Under the Stock Incentive Plan"
published on October 19 2024 in the Securities Times China Securities Journal Shanghai Securities News
Securities Daily and on the CNINFO website at http://www.cninfo.com.cn.On December 9 2024 at its 11th meeting the Company's Sixth Board of Directors reviewed and approved
the proposed "Plan to Repurchase and Cancel Some Granted Restricted Shares." Due to the departure of some
employee beneficiaries of the Company's 2021 Stock Option and Restricted Stock Incentive Plan beneficiaries
the Company decided to repurchase and cancel the corresponding 98688 restricted shares that had been granted
but not yet vested to 66 of these beneficiaries. So the number of incentive beneficiaries is changed to 1867.For details see the "Announcement on the Repurchase and Cancellation of Some Granted Restricted SharesUnder the Stock Incentive Plan” published on December 10 2024 in the Securities Times China Securities
Journal Shanghai Securities News Securities Daily and on the CNINFO website at http://www.cninfo.com.cn.On December 9 2024 at the 11th meeting the Company's Sixth Board of Director reviewed and approved
the "Proposal on the Achievement of Conditions for Lifting Restrictions on Stock Incentive Shares". According
to the Company's 2021 Stock Option and Restricted Stock Incentive Plan (Revised Draft) the conditions for the
third release of restrictions under the same plan have been met. For details see the announcement published on
December 10 2024 in Securities Times China Securities Journal Shanghai Securities News Securities Daily
and on the CNINFO website at http://www.cninfo.com.cn titled "Announcement on the Achievement of
Conditions for Lifting Restrictions on Stock Incentive Shares."
(2) Stock Options from the 2021 Stock Option and Restricted Stock Incentive Plan
On April 21 2024 the Company's sixth Board of Directors at its 7th meeting approved a "Proposal on the
Cancellation of Some Stock Options Under the Stock Incentive Plan." As the exercise conditions for the third
tranche of stock options under the 2021 Stock Incentive Plan were not completely met the Company canceled
252832 shares granted to 65 incentive beneficiaries under the Third Tranche of Stock Options. For details see
the "Announcement on the Cancellation of Some Stock Options Under the Stock Incentive Plan"
(Announcement No. 2024-024) published on April 23 2024 in the Securities Times China Securities Journal
Shanghai Securities News Securities Daily and on the CNINFO website at http://www.cninfo.com.cn titled .This repurchase and cancellation was completed on April 30 2024.On October 18 2024 the proposed Plan to Adjust the Exercise Price of Stock Options and the Repurchase
Price of Restricted Shares Under the Stock Incentive Plan was reviewed and approved at the 9th meeting of the
Sixth Board of Directors. Due to the 2023 annual equity distribution in accordance with the Company's 2021
Stock Option and Restricted Stock Incentive Plan the Company adjusted the exercise price of stock options
under the same plan to 52.65 RMB yuan per share and the repurchase price of restricted shares under the same
plan to 26.18 RMB yuan per share. For details see the announcement published on October 19 2024 in the
Securities Times China Securities Journal Shanghai Securities News Securities Daily and on the CNINFO
website at http://www.cninfo.com.cn titled "Announcement on Adjusting the Exercise Price of Stock Options
and the Repurchase Price of Restricted Shares Under the Stock Incentive Plan."
105Full text of the iFLYTEK's 2024 Annual Report
Incentive shares received by the Company's directors and senior management members
√ Applicable □ Not applicable
In Shares
this
report Marke Price
Stock
ing t price per
Stock option Stock Restri
period per Restri share
Stock option s that option cted
of share cted at Restri
option s could s Stock Restri shares
shares of the shares which cted
s held grante be exerci option cted grante
exerci Comp held restric shares
Positi at the d exerci sed s held shares d
Name sed any's at the ted held
on begin during sed during at the vested Durin
during stock begin shares at the
ning this during this end of in g this
this at the ning were end of
of report this report year 2024 report
report end of of the grante year
year ing report ing ing
ing year period d
period ing period period
period (RMB (RMB
period
(yuan/ yuan) yuan)
share)
Direct
or and -
Duan 8000 4800
Vice 3200 -
Dawei 0 0
Presid 0
ent
Chief
Finan -
Wang 2800 1680
ce 1120 -
Ming 0 0
Office 0
r
-
10806480
Total -- - - - - -- - -- 4320 -- -
000
0
Evaluation mechanism and incentives for senior management members
iFLYTEK has established robust incentive and restraint mechanisms for its directors supervisors and
senior management members in line with advanced corporate governance practices. This motivates these
personnel and enhances the Company's operational efficiency. Approved by the Shareholders' Meeting
iFLYTEK has formulated a clear "Compensation Management System for Directors Supervisors and Senior
Management Members". The Compensation for these roles is based on company size and performance with a
comprehensive evaluation system. The Compensation determination follows these principles: combining pay
with performance and aligning responsibilities rights and benefits to leverage compensation's incentive and
restraint functions; closely linking income to company benefits and work goals in line with market value;
ensuring compensation supports long-term company development and stability; and maintaining open fair and
impartial compensation standards.the Company's compensation system for its directors supervisors and senior management members is
designed to serve its business strategy. Based on operating performance compensation trends in the market and
the Company's development plans the compensation standards are flexibly adjusted to meet the Company's
needs. The Board's Compensation and Evaluation Committee evaluates the performance and determines the
compensation of the Company's directors and senior management members.
106Full text of the iFLYTEK's 2024 Annual Report
2. Implementation of the Employee Stock Holding Plan
□ Applicable √ Not applicable
3. Other Employee Incentive Measures
□ Applicable √ Not applicable
The Company complies with the disclosure requirements for the software and IT services industry as
stipulated in the Self-Regulatory Guidelines for Companies Traded on Shenzhen Stock Exchange No. 3:
Industry Information Disclosure.During this reporting period the Company recognized an expense of 13815619.88 RMB yuan for the
2021 Stock Option and Restricted Stock Incentive Plan resulting in a net profit reduction of 13815619.88
RMB yuan. The equity-based compensation expense for key technological staff accounted for 53.39% of the
total equity-based compensation expense for this year.XII. Development and Implementation of Internal Control System During This Reporting Period
1. Internal Control Development and Implementation
1) A Robust Internal Control System
iFLYTEK has established a comprehensive corporate governance and internal control system. In full
alignment with the internal control regulatory framework for companies the Company has reviewed and
optimized its business processes to accurately identify and assess internal and external risks strengthen control
measures and ensure a sound internal control structure.During this reporting period the Company continued to strengthen its internal control system. Based on
relevant Chinese laws and regulations such as the Company Law and Securities Law and in line with the Self-
Regulatory Guidelines for Companies Traded on Shenzhen Stock Exchange No. 1 - Standard Operation the
Company established a series of internal control policies. These include an Internal Control System an Internal
Audit System a Major Business Decision-making System an External Investment Management System
Regulations for External Financial Support Fund Raising Regulations Related-party Transaction Regulations a
Major Information Internal Reporting System Seal Use Regulations a Capital Management System and
Independent Directors Regulations. These policies and rules have been strictly implemented to ensure the
Company remains compliant and well-regulated.During this reporting period iFLYTEK further revised its Articles of Association Rules of Procedure for
Shareholders' Meetings the Internal Audit System and Regulations for External Financial Support.Additionally a Market Value Management Policy was adopted to enhance operational standardization.
2) Smart AI-Powered Internal Control
Modern IT systems play an essential role in ensuring the effectiveness of internal control. In the face of
increasingly complex business environments companies are aware that intelligent control technologies can
107Full text of the iFLYTEK's 2024 Annual Report
more efficiently meet internal control needs. Leveraging its world-class AI technologies iFLYTEK actively
integrates AI into its internal control practices.In compliance with established corporate governance and internal control standards the Company has
employed AI and data analytics to systematize and standardize its governance and internal management
processes ensuring well-regulated operations. Digital auditing ensures comprehensive coverage of employee
self-service reimbursements with automatic detection of issues. This has led to a significant decline in non-
compliant or erroneous claims establishing a robust reimbursement risk - prevention system. Using iFLYREC
Cloud Meeting remote directors supervisors and investors can now engage in real-time face-to-face-like
interactions during meetings. They can view PPTs and materials and share opinions simultaneously with on-site
participants eliminating spatial barriers and boosting corporate governance efficiency. By integrating data
across internal systems and applying risk models and algorithms to full-sample datasets most internal control
processes have been automated. This makes internal control more precise efficient and intelligent. These
advanced technologies have effectively strengthened oversight and boosted the overall performance of internal
control.
3) Standardized Internal Control Practices
iFLYTEK has established functional departments based on its operational needs. Each department has
clear responsibilities and continues to refine their systems and processes. They provide professional guidance
supervision and services to subsidiaries and controlled companies addressing issues and ensuring corrections.Responsibilities authority and goals are explicitly defined for subsidiaries departments and positions. A step-
by-step authorization inspection and accountability mechanism is in place ensuring each level operates within
its authorized scope.To strengthen subsidiary management and establish effective control mechanisms iFLYTEK implements
risk control as a listed company over its operations including organization resources assets and investments.This enhances its overall efficiency and risk resistance capabilities. The Company has formulated a
"Management System for Controlled Subsidiaries" which covers governance daily operations finance
business decision-making major information reporting internal audit and personnel management. Financial
management of all controlled subsidiaries is unified and well aligned and directors supervisors and senior
management members are appointed to manage their operations. At the year end subsidiary leaders report to
their respective supervisors to ensure the Company’s policies are effectively implemented.The Company conducts regular internal control evaluations. The Audit and Supervision Department
determines the audit scope based on the risk-oriented principle covering key areas of the Company's operations.Audited entities include the Company and its wholly-owned and controlled subsidiaries accounting for 100%
of total assets and operating revenue in the consolidated financial statements. The audit focuses on processes
like corporate governance development strategy organization human resources corporate culture professional
ethics information and communication and internal supervision as outlined in the Internal Control
Management Manual. It also covers business-level controls including finance investment procurement sales
inventory fixed asset management projects R&D outsourcing budgeting guarantees fund raising and
related-party transactions. This ensures effective internal control risk supervision and prevention.iFLYTEK operates independently of its actual controller in business personnel assets organization and
finance. The actual controller prioritizes compliance strictly adhering to CSRC regulations and the Rules
Governing the Listing of Stocks on Shenzhen Stock Exchange and Self-Regulatory Guidelines for Companies
108Full text of the iFLYTEK's 2024 Annual Report
Traded on Shenzhen Stock Exchange No. 1 - Standard Operation and other laws regulations and normative
documents. They fulfill their commitments avoid competition with the Company and refrain from capital
occupation or any actions that might harm the Company's or its minority shareholders' interests.
2. Major Internal Control Defects Discovered During This Reporting Period.
□ Yes √ No
XIII. Management and Control over the Company's Subsidiaries During This Reporting Period
Issues Measures
Subsidiary Integration Encountered Already Taken Resolution
Integration Plan Follow-up Plan
Name Progress During to Resolve the Progress
Integration Issues
-------
XIV. Internal Control Evaluation or Internal Control Audit Report
1. Internal Control Evaluation Report
Date of Full-text Disclosure of
April 22 2025
Internal Control Evaluation Report
Link to Full-text of Internal The CNINFO website at http://www.cninfo.com.cn: "2024 Internal Control Evaluation
Control Evaluation Report Report".Ratio of total assets of units within
the evaluation scope to the
100.00%
Company's consolidated financial
statement total assets
Proportion of Total operating
income of units included in
Financial statements the Total 100.00%
operating income in the Company's
consolidated financial Percentage
Criteria for Defect Identification
Category Financial Reporting Defects Non-financial Reporting Defects
Major defect: An internal control defect that whether individually or
in conjunction with other defects has a reasonable possibility of
The following situations can be identified
leading to an inability to prevent or detect and correct material
as major defects while other situations are
misstatements in financial reports on a timely basis. Examples: (1)
classified as significant or general defects
Fraud by directors supervisors or senior management members; (2)
based on their impact: (1) Unscientific
Revision of published financial statements; (3) CPAs identifying
corporate decision-making processes; (2)
material misstatements in financial reports that internal control failed
Violations of State laws and regulations
to detect; (4) Ineffective oversight of internal control by the audit
Qualitative such as environmental pollution; (3) Loss
committee or internal audit department; and (5) Other defects that
Criteria of management or technological staff; (4)
may affect statement users' judgments. Significant defect: A
Frequent negative media coverage; (5)
significant defect in internal control is one that individually or
Failure to rectify significant or significant
together with other defects has a reasonable likelihood of resulting
internal control defects identified in
in the failure to timely prevent or detect and correct misstatements in
internal control evaluations; and (6) Lack
financial reports. These misstatements while not material still
of institutional control or systemic failure
warrant the attention of the Board of Directors and the Management.in key business areas.General defect: A general defect is one that does not qualify as
major or significant.Major defect: A defect that causes property losses equal to or Major defect: A defect that causes property
Quantitativ exceeding 1% of the total assets in the consolidated financial losses equal to or exceeding 1% of the
e Criteria statements; Significant defect: A defect that causes property losses total assets in the consolidated financial
equal to or exceeding 0.5% but below 1% of the total assets in the statements; Significant defect: A defect
109Full text of the iFLYTEK's 2024 Annual Report
consolidated financial statements; General defect: A defect that that causes property losses equal to or
causes property losses below 0.5% of the total assets in the exceeding 0.5% but below 1% of the total
consolidated financial statements. assets in the consolidated financial
statements; General defect: A defect that
causes property losses below 0.5% of the
total assets in the consolidated financial
statements.Number of major financial
0
reporting defects
Number of major non-financial
0
reporting defects
Number of significant financial
0
reporting defects
Number of significant non-
0
financial reporting defects
2. Internal Control Audit Report
√ Applicable □ Not applicable
Internal Control Audit Opinion
As of December 31 2024 iFLYTEK maintained effective internal control over financial reporting in all material respects in
accordance with the Basic Norms of Corporate Internal Control and other relevant regulations.Status of Internal Control Audit Report
Disclosed
Disclosure
Date of Full-text Disclosure of Internal Control
April 22 2025
Audit Report
Link to Full-text of Internal Control Audit The CNINFO website athttp://www.cninfo.com.cn: "2024 Internal Control
Report Audit Report".Type of Internal Control Audit Opinion Standard Unqualified Opinion
Are there major non-financial reporting
No
defects
Have accounting firms issued non-standard internal control audit reports
□ Yes √ No
Is the internal control audit report issued by the accounting firm consistent with the Board of Directors' self-
evaluation report
√Yes □No
XV. Remedy of Issues Identified in the Listed Company Governance Special Self-Inspection Campaign
According to the rules of the China Securities Regulatory Commission (CSRC) the Company conducted a
thorough self-inspection across the 118 items on the "Listed Company Governance Special Self-Inspection
Checklist" in line with the requirements of the CSRC Anhui Securities Regulatory Bureau's "Notice on
Earnestly Carrying Out Listed Company Governance Special Action". The inspection has confirmed that the
Company has no issues requiring remedy or corrective actions.
110Full text of the iFLYTEK's 2024 Annual Report
Section V Environmental and Social Responsibility
I. Major Environmental Issues
Is the Company or any of its subsidiaries announced as a "key corporate polluter" by the environmental
authorities:
□ Yes √ No
Administrative penalties for environmental pollution during this reporting period:
Reason
Impact on the operations of Corrective
Company name for the Violation Penalty
the listed company measures
penalty
N/A N/A N/A N/A N/A Not Applicable
Other environmental pollution information disclosed with reference to key corporate polluters:
iFLYTEK is a technology company engaged in artificial intelligence and software application development
which does not involve the discharge of industrial wastewater waste gases waste materials or noise in its daily
operations. The Company implements a comprehensive approach for waste reduction encompassing
infrastructure building daily operation and living park environment development and resource conservation
demonstrating its commitment to sustainable development.iFLYTEK has established a series of Measures for Waste Gas Wastewater Noise and Solid Waste
Management firmly adhering to the "Reduce Reuse Recycle" (3R) principle. The Company recycles waste
materials to ensure effective control of emissions of waste gases wastewater and solid waste. It standardizes
waste collection reuse recycling and harmless treatment to reduce environmental pollution and create a
greener more environment-friendly and healthier work environment.
1. Waste Gas Management
iFLYTEK places a high priority on managing greenhouse gas emissions produced during its operations. It
enhances the identification and accounting of carbon emissions and formulates effective measures to reduce
carbon emissions across the Company's operations and value chain.Types of Greenhouse Gas Emissions
Type 1 Emissions from the combustion of fuels including emissions from all vehicles the Company owns
Type 2 Indirect emissions from consumption of purchased electricity heat and steam
Emissions associated with purchased goods and services business travel employee commuting waste disposal emissions
Type 3 from the sale and use of products transportation and distribution activities investments leased assets and franchise
operations
In 2024 the carbon and CO2 emissions per million RMB yuan of output value from the Company's daily
production and operation electricity use (excluding public capabilities like data centers) decreased by 13.79%
and 12.38% respectively year on year.
111Full text of the iFLYTEK's 2024 Annual Report
Change in Change in
Carbon
Carbon CO2 Emissions CO2
Emissions per
Carbon Change in Emissions CO2 Change in per Million Emissions
Million RMB
Year Emissions Carbon per Million Emissions CO2 RMB Yuan of per Million
Yuan of
(tons) Emissions RMB Yuan (tons) Emissions Output Value RMB Yuan
Output Value
of Output (tons) of Output
(tons)
Value Value
20245879.291.57%0.25-13.79%21550.180.03%0.92-12.38%
20235788.62-6.48%0.29-12.12%21544.39-6.19%1.05-13.22%
20226189.63-0.33-22965.8-1.21-
2. Wastewater Management
The main types of wastewater generated during the Company's operations are domestic wastewater and
canteen processing wastewater. The wastewater is managed through a separate sewer design where toilet
sewage is directed into the municipal sewage network; other wastewater such as floor washing water is
discharged into the sewage network within the park; and canteen wastewater is treated through oil separation
and sedimentation before being discharged into the municipal sewage network.
3. Solid Waste Management
Each department within the Company is responsible for collecting labeling and storing solid waste in
their respective areas and at the workplace according to solid waste classification requirements. Wastes are
labeled as "Recyclable Solid Waste" "Non-recyclable Solid Waste" "Disposable Hazardous Solid Waste" and
"Non-disposable Hazardous Solid Waste." Various types of solid waste piled at designated locations are
uniformly collected and transported by the contractor responsible for solid waste management.Solid Waste Classification
Recyclable Solid Waste Packaging materials scrap wires etc.General Solid Waste
Non-recyclable Solid Waste Domestic waste kitchen waste etc.Solid waste with oil used gloves used carbon boxes used
Disposable Hazardous Solid Waste
toner cartridges etc.Hazardous Solid Waste
Non-disposable Hazardous Solid Used batteries spent fluorescent tubes used computer screens
Waste used electronic components etc.The Company regularly inspects the storage and disposal of various types of waste implementing multiple
measures to effectively avoid the generation of wastes. For electronic products such as old servers upgrades
and modifications are carried out to extend their service life; for retired and scrapped electronic equipment they
are disassembled to recycle usable parts; for electronic office equipment like laptops employees can apply for
buyback and personal reuse after a certain period of use; and hard drives are demagnetized and damaged to
produce recyclable crushed particles.
4. Packaging Management
The Company continues to promote green packaging reducing the use of polluting packaging materials
and increasing the use of green packaging materials through various arrangements. Green and environment-
friendly packaging products are procured and applied more extensively with only green and recyclable
materials used for both internal and external logistics packaging.
5. Noise Management
112Full text of the iFLYTEK's 2024 Annual Report
The Company places importance on maintaining a quiet and peaceful environment in office areas and
effectively implements noise control measures. Power distribution rooms and pump rooms are independently
located in dedicated equipment rooms and important facilities and equipment are equipped with vibration
reduction devices or undergo technical upgrades.Measures taken to reduce carbon emissions during this reporting period and their effects
√ Applicable □ Not applicable
iFLYTEK treats green development as a key driver of sustainable growth. It focuses on reducing the
ecological impact of its operations and value chain. Guided by the principles of being "green low-carbon and
circular" the Company strengthens management strictly controls pollution and promotes green ideals as part
of its corporate culture. It implements its vision in infrastructure daily operations campus environmental
management and resource conservation strictly complying with national and industry regulations. iFLYTEK is
committed to achieving a harmonious balance between its own growth and environmental protection.
1) Constructing a Climate Change Response Management System
The Board of Directors has established a dedicated ESG committee to oversee ESG-related matters
including risks and opportunities related to climate change and carbon neutrality actions. Under the guidance of
the Board's ESG committee iFLYTEK has established the following climate change response framework:
iFLYTEK’s Climate Change Response Framework
The Board's ESG Committee is responsible for overseeing ESG-related matters including risks and opportunities
Governance
associated with climate change and carbon neutrality actions.Policy and
Conducting Implementing carbon emission Regulatory
quantitative control policies etc. Risks
analysis and Technological Technology innovations to
assessment of Risks lower emissions Enhance the efficient use of clean energy
climate change Market preference for low-
Market Risks and lower carbon emissions. risks and
Strategy carbon products Actively promote the research
opportunities
Reputational Public preference for green development and application of new
and
Risks technologies technologies and materials
customizing
Emergent
climate risk Typhoons floods etc.Physical Risks
response
methods Chronic Physical Changes in precipitation rising
Risks average temperatures etc.Identifying climate risks and opportunities related to the Company incorporate climate risk management into the
Risk
Company's risk assessment and management system and developing measures for managing key risks and
Management
opportunities.Total greenhouse
Carbon Emissions Promoting carbon neutrality
gas emissions
Indicators Total energy
Energy Promoting the procurement of green electricity
and Targets consumption
Waste disposal
Wastes Reducing waste per unit of revenue year by year
volume
2) Strengthening the Accounting of Carbon Emissions
As the major sources of waste gas emissions in its operations are the exhaust emissions from business and
commuting vehicles and the fumes from the canteen operations the Company has tried to reduce waste gas
emissions using the following methods:
113Full text of the iFLYTEK's 2024 Annual Report
* Strengthening vehicle management and controlling waste gas emissions using fume purification devices;
* Formulating the Administrative Measures for Vehicle Management to optimize fuel use and vehicle
maintenance;
* Introducing electric buses in transportation services;
* Encouraging green travel and reducing commuting vehicle use through carpooling subsidies.Under the effective implementation of the above measures in 2024 despite a 6.83% increase in vehicle
use due to new employee car purchases and higher commuting and business travel the Company reduced
vehicle fuel consumption by 6.00% cutting unit vehicle carbon emissions by 12.18% from 2023 effectively
curbing carbon emission growth.
2023 2024 Change
Gasoline Consumption (Liters) 5530985 5199263 -6.00%
Total Number of Vehicles (Units) 8126 8681 6.83%
Gasoline Consumption per Vehicle (Liters) 680.65 598.92 -12.01%
Carbon Emissions (Tons) 3467.93 3259.72 -6.00%
Carbon Emissions per Vehicle (Tons) 0.427 0.375 -12.18%
CO2 Emissions (Tons) 12721.27 11719.14 -7.88%
Carbon Emissions per Vehicle (tons) 1.57 1.35 -14.01%
3) Optimizing the Energy Structure
(1) Green Electricity Trading
Purchasing and using green electricity is the most important and direct method to reduce carbon emissions.The purchase of green electricity offsets carbon emissions. Starting from April 2024 iFLYTEK has included
renewable energy in the power supply of its data center utilizing renewable green energy sources such as wind
and photovoltaic power to optimize the energy structure. By May the proportion of green electricity has
reached 90%.
(2) Application of Low-carbon Technologies
114Full text of the iFLYTEK's 2024 Annual Report
* High-efficiency power supply and distribution products: The 10KV AC input DC uninterruptible power
supply system called "Panama power architecture" is the first of its kind to be applied in Anhui Province;
* High-efficiency refrigeration/cooling products: They include magnetic levitation phase change cooling (the
first of its kind to be applied in Anhui Province) fluorine pump multi-loop natural cooling technology and
units water thermal storage technology and natural plate heat exchangers;
* AI-powered Intelligent Group Control System:
Using reinforced learning algorithms the control system will select the optimal number of cooling water
pumps and cooling towers and frequency control strategy based on the current chiller load and current climate
conditions. This reduces the power consumption of the HVAC system and also optimizes its operation
improving the health of the air conditioning system operation.
4) Rewarding Carbon Reducing Behaviors
For the purpose of environmental protection the Company champions green office practices promoting
energy conservation emission reduction low-carbon thrift and a healthy living.The Company promotes the "135" green commuting initiative encouraging employees to walk within 1
kilometer cycle within 3 kilometers and use public transport within 5 kilometers. It advocates a commuting
hierarchy: walk if possible cycle if not take public transport if neither is feasible and drive only as a last resort.Employees are urged to adopt healthy eco-friendly commuting habits and become green travel advocates.To encourage its employees to reduce travel by fossil fuel vehicles iFLYTEK has developed an internal
carpooling software called "AI Pool." It organizes employees driving private cars to pick up colleagues on their
way to and from work. On one hand this policy provides free ride services for employees and on the other
hand offers vehicle maintenance car washing services and subsidies for car owners. Currently AI Pool has
covered 13 cities including Hefei Wuhu Qingdao and Guangzhou serving about 2300 passengers per day
equivalent to a daily reduction of 2300 vehicles or 60 coaches on the road.To encourage its employees to use alternative-fuel vehicles the Company has installed AC and DC
115Full text of the iFLYTEK's 2024 Annual Report
charging piles at its headquarters campus for employees to charge their vehicles. It also provides charging
subsidies for employees who drive electric cars to workplaces with a subsidy of 1 RMB yuan/kilometer.The Company strongly advocates green commuting providing support for employees' commuting needs
by setting up 34 regular bus routes 55 shuttles to and from subway stations and evening buses. The Company
encourages employees to use public transport or alternative fuel vehicles more often in daily living.
5) Strengthening Environmental Supervision
The Company has established rules and regulations such as the Procedures Concerning Nonconformity
Corrective Actions and Preventive Measures and the Objectives Targets Management Plan and Control
Procedures for inspecting assessing and controlling the environmental performance of each business
unit/department providing a framework for environmental protection.The Company monitors the consumption of water and electricity on a weekly basis supplemented by
irregular spot checks to strengthen the awareness of resource conservation and environmental protection among
its employees and business units/departments.The Company urges suppliers to fulfill their energy responsibilities integrates supplier energy usage into
its assessment framework and generates weekly reports from data analysis to identify any irregularities. It also
continuously optimizes working rules and establishes a mechanism for evaluating results.
6) Implementing Energy-saving Measures
iFLYTEK has formulated the Measures for Energy and Resource Conservation Management and the
Implementation Plan for Enhancing Energy Efficiency and Consumption Control working to reduce the
ecological impact of its operations and value chain. It implements energy-saving measures in every aspect of its
operations exploring an economic model that supports the carbon peaking and carbon neutrality goals of China.
(1) Saving Water and Electricity
The Company uses energy-efficient lighting products in office spaces; optimizes lighting circuits
increases area control strengthens patrols of unoccupied office areas after work to turn off unnecessary lighting
in order to save electricity. It selects water-saving fixtures to realize water conservation. During holidays it
partially suspends the use of elevators water heaters etc. to reduce energy consumption.
(2) Saving Energy
The Company strengthens the management of energy consumption. It enhances the daily inspection and
maintenance of energy pipelines to eliminate leaks optimizes the efficiency of equipment operation and
ensures safety. The Company opts for economical routes and carpool for traveling.
(3) Saving Paper
The Company advocates paperless office practices and the use of paper certified by the Forest
Stewardship Council (FSC). It advocates paper recycling prioritizes double-sided printing and black-and-white
printing and reduces the use of toner cartridges. Except for special requirements for office paper that must be
single-sided all others are double-sided or distributed in electronic format to reduce paper consumption.
(4) Air Conditioning
The Company strengthens the management over the use of air conditioning turning on air conditioning
116Full text of the iFLYTEK's 2024 Annual Report
when the temperature is higher than 30℃ in summer with a centralized control setting of 26℃-30℃; in winter
air conditioning is turned on when the temperature is below 10℃ with a centralized control setting of 19℃-
22℃. On weekdays air conditioning is centrally turned off at 17:45 20:00 and every two hours after 20:00
while on weekends an additional centralized turn-off is added at 11:00 and 15:00.
(5) Use of Elevators
The Company distinguishes working hours and areas and sets the operation time and the number of
available elevators according to the peak and valley periods of use. During holidays it suspends the use of
elevators and other equipment to reduce energy consumption.
6) Creating Carbon Peaking and Neutrality Models
* Model Green Headquarters Campus
iFLYTEK's Artificial Intelligence R&D and Production Base is creating a model of green building:
Approaching from an urban design perspective it proposes the "Park X" concept and the "Campus X" spatial
structure shaping a brand-new office space layout and transforming the entire headquarters campus into anecologically harmonious “park." Meanwhile it maintains the ecology-friendliness of the buildings themselvesby adding solar photovoltaic panels continuous terraces covered with green plants and rooftop gardens
making the office space into a real “park” by ensuring exposure to sunlight and natural harmony.The Company adheres to the principles of "greenness and energy efficiency" in the development of the
campus. Utilizing large language model capabilities for operation and maintenance strategy recommendation in
building design and construction the Company intelligently generates operation and maintenance plans and
monitors the status of various equipment in real-time. When employees leave office areas or meeting rooms are
vacant the system will recognize and automatically perform actions such as turning off lights and air
conditioning intelligently reducing energy consumption. At the same time in various corners of the campus
photovoltaic power generation equipment is also quietly collecting clean energy. The integration of green
energy and office energy-saving measures makes the park a truly "green" space. After selection and
recommendation and expert review it has successfully been included as an Anhui Province Smart Construction
Pilot Project.Reason for not disclosing other environment-related information
117Full text of the iFLYTEK's 2024 Annual Report
Not applicable
II. Fulfillment of Social Responsibilities
In 2024 as a leading AI company in China FLYTEK actively implemented its vision of building a better
world with AI. Under the guidance of its "reaching for the sky rooted on the ground" strategy the Company
maintained international leadership in key AI technologies and continued to fulfill its social responsibility to
boost technological progress industrial development and societal advancement.While ensuring the sound growth of its business iFLYTEK proactively protected the legitimate rights and
interests of its investors employees and creditors; maintained good faith relationships with suppliers
customers and consumers practiced the principles of green development and actively engaged in public
welfare initiatives. Leveraging its strengths as a high-tech company iFLYTEK sought innovative ways to
combine technology with social responsibility exploring a distinctive ESG path rooted in the nature of a high-
tech enterprise and making corporate responsibility more tangible and impactful through AI.In 2024 the Company’s ESG practices earned wide recognition from regulators and the broader
community and it received several prestigious honors including:
AAA rating the highest rating in the CSI ESG Evaluation by China Securities Index Co. Ltd.;
Inclusion as a constituent stock of the Hang Seng China A-Share Sustainable Development Enterprises
Benchmark Index (HSCASUSB) for its outstanding performance in ESG areas;
The Best ESG Practice Case Award for Listed Companies from the China Association for Public
Companies;
Top 100 ESG Golden Bull Award Winner by China Securities Journal;
Top 100 Chinese Listed Company in ESG by the Securities Times and the China Research Institute of
Capital Market;For more details on the Company’s 2024 ESG performance please refer to the “2024 EnvironmentalSocial and Governance (ESG) Report” disclosed on the CNINFO website at http://www.cninfo.com.cn on
April 22 2025
III. Contribution to Consolidating the Achievements of Poverty Alleviation and Advancing Rural
Revitalization
In its rural revitalization efforts iFLYTEK aims not just to provide aid but to empower rural communities
through AI-driven job creation. The Company used AI technologies to create jobs in rural areas driving
industrial upgrades and helping villagers develop sustainable sources of income.Case: Solving the difficulty of transporting 27550 metric tons of bamboo products: Supporting
environmental protection and "forest floor" industry development in Jing County Anhui Province
In July 2021 iFLYTEK entered into a donation agreement with Jing County a revolutionary base area
committing 10 million RMB yuan for ecological conservation and rural revitalization efforts in Xiaokang
Village Caicun Town of the county. The initiative prioritized the ecological protection of Moso bamboo and
the growth of "forest floor" industries. By the end of 2024 all forest roads in Caicun Town and Tingxi
Township eligible for upgrading had been completed and extended to a total length of about 32.6 kilometers
through a total investment of about 1.55 million RMB yuan. These efforts helped solve the logistical challenge
118Full text of the iFLYTEK's 2024 Annual Report
for approximately 27550 metric tons of Moso bamboo products generating sales revenue of around 14.877
million RMB yuan. The road development and upgrading project reduced harvesting costs by 7-9 RMB yuan
per 50 kilograms of bamboo resulting in a net additional income of over 4.4 million RMB yuan for more than
1420 local bamboo farmers. Since 2021 iFLYTEK has also helped Xiaokang Village establish six major
projects including a bamboo forest camping base beach vehicles go-karts an equestrian center a scenic hiking
trail at Chaotian Cave and bamboo craft workshops. These initiatives have created job opportunities for over 30
villagers and boosted the village’s collective annual income by approximately 1.1 million RMB yuan. Moreover
iFLYTEK has been instrumental in fostering local industrial development. Inspired by the traditional Dragon
Boat Festival the Company has processed Moso bamboo through 11 steps to produce cultural and creative
artifacts thereby creating additional employment and income opportunities for the local people.In addition iFLYTEK supported local industrial development by empowering bamboo processing. During
the Dragon Boat Festival the Company processed Moso bamboo products through 11 steps to produce cultural
and creative artifacts thereby creating additional employment and income opportunities for the local people.
119Full text of the iFLYTEK's 2024 Annual Report
Section VI Significant Matters
I. Fulfillment of Commitments
1. Commitments by the Company's actual controller shareholders related parties and acquirers as well as the
Company itself that were fulfilled during this reporting period or remained unfulfilled as of the end of this
reporting period
√ Applicable □ Not applicable
Perfor
Commitment Made by Type Content Time Duration manc
e
1. To avoid unfair competition Ongoi
Liu Qingfeng
related-party transactions and ng
fund occupation; 2. To ensure
the independence of the listed
Commitme November
company; 3. To avoid unfair Period of
nts by the 20 2014;
competition with Xunfei acting in
USTC Holdings actual January 09 Comp
Healthcare Technology Co. concert
Co. Ltd. controller 2024 leted
Ltd. maintain independence and
reduce and regulate related-party
transactions during the period as
the de facto controller
Commitment Period of
To avoid competition with the
s made in the Yang Jun Wang Other being a
Company within the same December Ongoi
acquisition Binbin Xu Guiqin commitme shareholder of
industry and reduce and regulate 9 2016 ng
report or & Zhu Peng nts the listed
related-party transactions
Statement of company
Changes in Beijing Le Jiao
Owners' Rong Zhi
Equity Investment
Development
Partnership
Period of
Company (Limited To avoid competition with the
Other being a
Partnership) Company within the same December Comp
commitme shareholder of
Beijing Jia Hui Jin industry and reduce and regulate 9 2016 leted
nts the listed
Yuan Investment related-party transactions
company
Development
Partnership
Company (Limited
Partnership) &
Zhang Shaohua
During my tenure at iFLYTEK I
will not transfer more than
twenty-five percent of the total
shares I hold in iFLYTEK in any
given year. Furthermore should
I resign from iFLYTEK I pledge
not to transfer any shares of
Commitment iFLYTEK that I hold within six Period of
Liu Qingfeng the
s made at Commitme months following my April 24 acting as Ongoi
Company's actual
IPO or nt at IPO resignation. While I hold shares 2008 actual ng
controller
refinancing in iFLYTEK I will not engage controller
in any business that competes
with or is similar to iFLYTEK's
operations. I will not directly
invest in or acquire any
enterprise or project that
competes with or is similar to
iFLYTEK's business nor will I
120Full text of the iFLYTEK's 2024 Annual Report
provide any form of assistance to
competitors. In the event that I
become involved in any
competition with iFLYTEK
regardless of the circumstances
I will actively implement
effective measures to relinquish
such competitive activities.
2. Ningbo Saite
Equity Investment Comp
Partnership Commitment to avoiding Period of leted
Enterprise Other competition within the same being a
March 17
Nanjing Chuangyi commitme industry and commitments to shareholder of
2017
Investment nts reducing and regulating related- the listed
Ongoi
Management Center party transactions etc. company
ng
(Limited
Partnership)
the Company pledges not to
provide any financial assistance
including loans or guarantees to
the incentive recipients for
obtaining stock options or
restricted shares under this plan.The recipients pledge to return Period of
the Company and Stock all benefits received from this September implementing Comp
rewardees Incentive plan to the Company if it is 26 2021 the stock leted
determined that the Company's incentive plan
eligibility to grant or exercise
these rights is invalidated due to
false statements misleading
information or significant
omissions in the disclosed
documents.To ensure the smooth
implementation of this share
repurchase plan and complete it
within the specified period (from
August 22 2024 to February 21
Other 2025); To avoid reducing the
commitments Company's holdings before the
announcement of the share
purchase plan's completion; To
August 22
refrain from reducing holdings
Wu Xiaoru Jiang Shareholdi August 21 2024 - Comp
during the purchase period and
Tao & Nie Xiaolin ng Increase 2024 February 21 leted
within the legally mandated
2025
timeframe; To strictly abide by
relevant regulations and avoid
insider trading trading during
sensitive periods and short-term
trading; To conduct this share
purchase in full compliance with
applicable laws regulations
rules and the guidelines of the
Shenzhen Stock Exchange.All participants in the
Company's first Employee Stock
All participants in
Holding Plan voluntarily commit April 12 2025
the Company's first Extended December Ongoi
to not distributing the rights to - October 11
Employee Stock lock-up 10 2024 ng
the vested shares from each 2028
Holding Plan
batch for 6 months following the
lock-up period's end.Has the commitment been fulfilled in time Yes
If the commitment is not fulfilled by the deadline provide a detailed explanation of the reasons for the
Not applicable
incomplete fulfillment and outline the subsequent work plan
121Full text of the iFLYTEK's 2024 Annual Report
2. Explanation whether and why the Company's assets or projects meet original positive profit forecasts
and are still within the forecast period
□ Applicable √ Not applicable
II. Non-operating Fund Occupancy by the Controlling Shareholder and Other Related Parties of the
Listed Company
□ Applicable √ Not applicable
There were no instances of non-operating fund occupancy by the controlling shareholder or other related parties
regarding the listed company during this reporting period.III. Non-compliant External Guarantees
□ Applicable √ Not applicable
There were no instances of non-compliant external guarantees during this reporting period.IV. The Board of Directors' Explanation to the Non-standard Audit Report for the Year 2023
□ Applicable √ Not applicable
V. Explanation by the Board of Directors the Board of Supervisors and Independent Directors If Any
Regarding the Non-Standard Audit Report Issued by the Accounting Firm for the Year 2024
□ Applicable √ Not applicable
VI. Notes to Changes to Accounting Policies Accounting Estimates or Material Accounting Error
Corrections for the Previous Year
□ Applicable √ Not applicable
There were changes to accounting policies accounting estimates or material accounting error corrections for
the year 2024.VII. Notes to Changes to the Scope of Financial Statements Consolidation From the Previous Year
√ Applicable □ Not applicable
See “Section X. Financial Report IX. Changes in the Scope of Consolidation”
VIII. Engagement and Dismissal of Accounting Firm
Currently Engaged Accounting Firm
Name of Domestic Accounting Firm RSM China CPA LLP
Remuneration of Domestic Accounting Firm (in RMB yuan) 4.45 million
Consecutive Years of Auditing Service by the Domestic 23
122Full text of the iFLYTEK's 2024 Annual Report
Accounting Firm
Names of CPAs from the Domestic Accounting Firm Gao Ping Zhang Yaqiong and Lü Zhannan
Consecutive Years of Auditing Service by CPAs from the Gao Ping: 1 year; Zhang Yaqiong: 2 years; Lü Zhannan: 2
Domestic Accounting Firms years
Was the accounting firm changed during this reporting period
□ Yes √ No
Engagement of accounting firms for internal control audits financial advisors or sponsors
√ Applicable □ Not applicable
During this reporting period the Company engaged RSM China CPA LLP as its internal control audit
accounting firm with a total payment of 700000 RMB yuan for auditing services.IX. Delisting risk After This Reporting Period
□ Applicable √ Not applicable
X. Bankruptcy Reorganization
□ Applicable √ Not applicable
the Company did not undergo any bankruptcy reorganization proceedings During this reporting period.XI. Significant Litigation or Arbitration Proceedings
□ Applicable √ Not applicable
During 2024 the Company did not undergo any significant litigation or arbitration proceedings.XII. Penalties and Rectifications
□ Applicable √ Not applicable
the Company did not incur any penalties or undertake any rectifications during this reporting period.XIII. Integrity Issue of the Company and Its Controlling Shareholder and Actual Controller
□ Applicable √ Not applicable
XIV. Significant Related-Party Transactions
1. Related-party Transactions Related to Day-to-day Operations
√ Applicable □ Not applicable
Relati Ty Conte Pricin TransRelated Trans Perce Appro Excee Settle Avail
Disclo Link
onshi
party pe nt of g
action action ntage ved ding ment able sure to
p of Relate Princi Price Amou of Trans the Metho Marke Date Disclo
123Full text of the iFLYTEK's 2024 Annual Report
Re d- ple of nt (in Total action Appro d of t Price sure
lat Party Relate ten Simila Limit ved Relate for
ed- Trans d- thousa r (in ten Limit d- Simila
Par action Party nd Trans thousa Party r
ty Trans RMB action nd Trans Trans
Tr action yuan) s RMB action action
ans yuan sact ）
ion
Ro
uti
Invest
ne
ors Sale
Re
with of
lat
CMCC Signif Goods
ed- Bank April
and its icant and Marke 1124 1500
par N/A 4.82% No Transf N/A 22
Subsidiar Influe Provis t Price 92.55 00
ty er 2024
ies nce on ion of
Tr
the Servic
ans
Comp es
act
any
ion
See
s
the
Ro
Note
uti
Invest
ne
ors Sale
Re
with of
lat
CMCC Signif goods
ed- Bank April
and its icant and Marke 9250. 1500
par N/A 0.80% No Transf N/A 22
Subsidiar Influe provis t Price 37 0
ty er 2024
ies nce on ion of
Tr
the servic
ans
Comp es
act
any
ion
s
12171650
Total -- -- -- -- -- -- -- --
42.9200
Details of Large-Value Goods
N/A
Returns
For the fiscal year 2024 it is estimated that routine related-party transactions involving the
sale of goods and provision of services with CMCC and its subsidiaries amounted to 1.5
billion RMB yuan with an actual transaction amount of 112492.55 million RMB yuan.Additionally it is estimated that routine related-party transactions involving the "Purchase
Actual performance of the
of goods and acceptance of services" will amount to 150 million RMB yuan with an actual
estimated total routine related-
transaction amount of 92503700 RMB yuan. In summary the total estimated routine
party transactions by category if
related-party transactions with CMCC and its subsidiaries for 2024 was 1650 million RMB
any during this reporting period
yuan with an actual total transaction amount of 1217429200 RMB yuan which does not
exceed the total estimated transaction amount for the year. The difference is due to the
uncertainty in the initial estimate. The Company conducts business operations according to
market changes and actual operating needs.Reasons for significant differences
between the transaction price and
Not applicable
the market reference price if
applicable
Note: See the Announcement on the Estimates of Routine Related-party Transactions for 2024 (No. 2024-018)
published on the Securities Times China Securities Journal Shanghai Securities News Securities Daily and on
the CNINFO website at http://www.cninfo.com.cn.
2. Related-party Transactions Arising from Acquisition or Sales of Assets or Equity
□ Applicable √ Not applicable
124Full text of the iFLYTEK's 2024 Annual Report
The Company did not engage in any related-party transactions arising from acquisition or sales of assets or
equity during this reporting period.
3. Related-party Transactions for Joint External Investment
□ Applicable √ Not applicable
The Company did not conduct any related-party transactions for joint external investment during this reporting
period.
4. Related Creditor's Rights and Debts
□ Applicable √ Not applicable
The Company did not incur any related creditor's rights and debts during this reporting period.
5. Transactions with Related Finance Companies
□ Applicable √ Not applicable
The Company did not conduct any deposit loan credit or other financial business with any related finance
company 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 financial companies controlled by the Company conducted 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 this reporting period.XV. Major Contracts and Their Performance
1. Trust Sub-contract and Lease
1) Trust
□ Applicable √ Not applicable
The Company did not engage in any trust arrangements during this reporting period.
2) Sub-contract
□ Applicable √ Not applicable
125Full text of the iFLYTEK's 2024 Annual Report
The Company did not enter into any contracting agreements during this reporting period.
3) Lease
□ Applicable √ Not applicable
The Company did not enter into any leasing agreements during this reporting period.
2. Material Guarantees
√ Applicable □ Not applicable
In 0000 RMB yuan
External Guarantees Provided by the Company and its Subsidiaries (excluding those to subsidiaries)
Relat
Actual
ed
Guarantee Guaran Date of Guarant Counter
Name of the Collate Fulfil Party
Amount tee Actual ee Type of Guarant Guarante
Guarantee ral (if led or Guar
Disclosure Amoun Occurre Amount Guarantee ee (if e Period
Beneficiary any) Not antee
Date t nce Provide any)
or
d
Not
Counter
guarant
ee
From the
provide
date of
d by
approval
Tongling Tonglin
June 14 by the
Tianyuan Joint and g State-
2019; Board of
Equity April 19 several owned
24000 March 9000 Directors No No
Investment 2019 liability Capital
22 to the
Group guarantee Operati
2021 expiration
Corporation on and
of the
Holding
project's
Group
loan term
Co. the
Compan
y
Ma'anshan
Joint and
Big Data Decemb 12
April 23 several
Asset 17160 er 27 906.4 subseque No No
2024 liability
Operation 2024 nt months
guarantee
Co. Ltd.
12
months
October from the
Financial
25 2019; date of
leasing 50000 Yes No
April 23 approval
customer
2024 by the
Board of
Directors
Total amount of external
Total amount of approved
guarantees actually
external guarantees during 91160.00 906.40
provided during this
this reporting period (A1)
reporting period (A2)
Total amount of the
Total amount of approved
outstanding external
external guarantees as at
91160.00 guarantees actually 9906.40
the end of the reporting
provided as at the end of
period (A3)
the reporting period
126Full text of the iFLYTEK's 2024 Annual Report
(A4)
Guarantees provided by the Company to its subsidiaries
Relat
Actual
ed
Guarantee Guaran Date of Guarant Counter
Name of the Collate Fulfil Party
Amount tee Actual ee Type of Guarant Guarante
Guarantee ral (if led or Guar
Disclosure Amoun Occurre Amount Guarantee ee (if e Period
Beneficiary any) Not antee
Date t nce Provide any)
or
d
Not
General
guarantee;
iFLYTEK 12
April 23 joint and
(Internation 30000 subseque No No
2024 severable
al) Limited nt months
liability
guarantee
General
iFLYTEK guarantee;
12
(Beijing) April 23 June 26 joint and
10000 745.67 subseque No No
Technology 2024 2024 severable
nt months
Co. Ltd. liability
guarantee
General
Shenzhen
guarantee;
iFLYTEK 12
April 23 joint and
Interactive 5000 subseque No No
2024 severable
Electronics nt months
liability
Co. Ltd.guarantee
General
iFLYTEK guarantee;
Septem 12
(Shanghai) April 23 joint and
15000 ber 29 128.13 subseque No No
Technology 2024 severable
2024 nt months
Co. Ltd. liability
guarantee
General
Anhui Jixun guarantee;
12
Information April 23 joint and
12000 subseque No No
Technology 2024 severable
nt months
Co. Ltd. liability
guarantee
General
Hefei
guarantee;
iFLYTEK October 12
April 23 joint and
Doxent 24 4572.49 subseque No No
2024 severable
Technology 2024 nt months
liability
Co. Ltd.guarantee
General
Hefei
guarantee;
iFLYTEK Decemb 12
April 23 joint and
Doxent 20000 er 05 3236.84 subseque No No
2024 severable
Technology 2024 nt months
liability
Co. Ltd.guarantee
General
Hefei
guarantee;
iFLYTEK Novem 12
April 23 joint and
Doxent ber 22 3518.87 subseque No No
2024 severable
Technology 2024 nt months
liability
Co. Ltd.guarantee
General
Anhui guarantee;
12
Institute of April 23 July 05 joint and
6300.00 subseque No No
Information 2024 2023 severable
40000 nt months
Technology liability
guarantee
Anhui April 23 May 17 General 12
8852.04 No No
Institute of 2024 2022 guarantee; subseque
127Full text of the iFLYTEK's 2024 Annual Report
Information joint and nt months
Technology severable
liability
guarantee
General
Anhui guarantee;
October 12
Tingjian April 23 joint and
24 3663.14 subseque No No
Technology 2024 severable
2024 nt months
Co. Ltd. liability
guarantee
General
Anhui guarantee;
Decemb 12
Tingjian April 23 joint and
15000 er 05 908.79 subseque No No
Technology 2024 severable
2024 nt months
Co. Ltd. liability
guarantee
General
Anhui guarantee;
Decemb 12
Tingjian April 23 joint and
er 30 2000.00 subseque No No
Technology 2024 severable
2024 nt months
Co. Ltd. liability
guarantee
General
Anhui guarantee;
October 12
Zhixue April 23 joint and
15000 24 1307.63 subseque No No
Technology 2024 severable
2024 nt months
Co. Ltd. liability
guarantee
General
Jiangsu
guarantee;
Yixing 12
April 23 joint and
Automobile 15000 subseque No No
2024 severable
Technology nt months
liability
Co. Ltd.guarantee
General
Tianjin
guarantee;
iFLYTEK Decemb 12
April 23 joint and
Jizhi 20000 er 27 1085.25 subseque No No
2024 severable
Technology 2023 nt months
liability
Co. Ltd.guarantee
General
iFLYTEK guarantee;
Novem 12
(Suzhou) April 23 joint and
45000 ber 10 467.3 subseque No No
Technology 2024 severable
2023 nt months
Co. Ltd. liability
guarantee
General
Zhejiang
guarantee;
iFLYTEK 12
April 23 joint and
Intelligent 3000 subseque No No
2024 severable
Technology nt months
liability
Co. Ltd.guarantee
General
Hainan guarantee;
12
Shenggu April 23 joint and
22000 subseque No No
Technology 2024 severable
nt months
Co. Ltd. liability
guarantee
Anhui General
iFLYTEK guarantee;
October 12
Jiecheng April 23 12350.5 joint and
24 subseque No No
Software 2024 9 severable
2024 nt months
Technology 70000 liability
Co. Ltd. guarantee
Anhui October General 12
April 23
iFLYTEK 08 7611.15 guarantee; subseque No No
2024
Jiecheng 2024 joint and nt months
128Full text of the iFLYTEK's 2024 Annual Report
Software severable
Technology liability
Co. Ltd. guarantee
General
Anhui guarantee;
12
Kexun Jinse April 23 joint and
15000 subseque No No
Technology 2024 severable
nt months
Co. Ltd. liability
guarantee
General
Anhui guarantee;
12
iFLYTEK April 23 joint and
5000 subseque No No
New Retail 2024 severable
nt months
Co. Ltd. liability
guarantee
General
Shandong
guarantee;
Kexun 12
April 23 joint and
Information 5000 subseque No No
2024 severable
Technology nt months
liability
Co. Ltd.guarantee
General
Anhui
guarantee;
Wanchuang 12
April 23 joint and
New Smart 5000 subseque No No
2024 severable
Technology nt months
liability
Co. Ltd.guarantee
General
Anhui
guarantee;
Yunshu 12
April 23 joint and
Smart 10000 subseque No No
2024 severable
Technology nt months
liability
Co. Ltd.guarantee
Consolidate General
July 11
d guarantee;
2024;12
subsidiaries April 23 10000 47406.4 joint and
Novem subseque No No
sharing the 2024 0 9 severable
ber 25 nt months
bill pool liability
2024
business guarantee
Until the
date of
General
FLYTEK the
guarantee;
Malaysia Company
October joint and
Human 4000 's 2024 No No
19 2024 severable
Intelligence annual
liability
Co. Ltd. Sharehold
guarantee
ers'
Meeting
Until the
date of
General
the
guarantee;
iFLYTEK Company
November joint and
(Macau) 3000 's 2024 No No
23 2024 severable
Co. Ltd. annual
liability
Sharehold
guarantee
ers'
Meeting
Total occurrence amount
Total amount of approved
of guarantees provided
guarantees provided to
484000.00 to subsidiaries during 187155.26
subsidiaries during this
this reporting period
reporting period (B1)
(B2)
Total amount of approved Total outstanding
guarantees provided to guarantees actually
subsidiaries as at the end 484000.00 provided to subsidiaries 104154.38
of the reporting period as at the end of the
(B3) reporting period (B4)
129Full text of the iFLYTEK's 2024 Annual Report
Guarantees provided by the subsidiaries to other subsidiaries
Relat
Actual
ed
Guarantee Guaran Date of Guarant Counter
Name of the Collate Fulfil Party
Amount tee Actual ee Type of Guarant Guarante
Guarantee ral (if led or Guar
Disclosure Amoun Occurre Amount Guarantee ee (if e Period
Beneficiary any) Not antee
Date t nce Provide any)
or
d
Not
Anhui
General
Imaging
guarantee;
Union August 12
April 23 joint and
Cloud 16 28.49 subseque No No
2024 severable
Medical 2023 nt months
liability
Technology
guarantee
Co. Ltd.
5000
Anhui
General
Imaging
guarantee;
Union April 12
April 23 joint and
Cloud 18 500 subseque No No
2024 severable
Medical 2024 nt months
liability
Technology
guarantee
Co. Ltd.Lvliang General
Xunfei guarantee;
Novem 12
Healthcare April 23 joint and
1000 ber 15 30.87 subseque No No
Information 2024 severable
2023 nt months
Technology liability
Co. Ltd. guarantee
General
Pu'er
guarantee;
iFLYTEK Novem 12
April 23 joint and
Information 1000 ber 15 33.4 subseque No No
2024 severable
Technology 2023 nt months
liability
Co. Ltd.guarantee
General
Beijing Hui
guarantee;
Ji Zhi 12
April 23 June 19 joint and
Medical 1000 227.34 subseque No No
2024 2024 severable
Technology nt months
liability
Co. Ltd.guarantee
General
Shanghai
guarantee;
iFLYTEK 12
April 23 June 19 joint and
Medical 500 43.81 subseque No No
2024 2024 severable
Technology nt months
liability
Co. Ltd.guarantee
General
Yinchuan
guarantee;
iFLYTEK 12
April 23 joint and
Internet 500 subseque No No
2024 severable
Hospital nt months
liability
Co. Ltd.guarantee
Until the
date of
General
Taizhou the
guarantee;
iFLYTEK Company
November joint and
Medical AI 500 's 2024 No No
23 2024 severable
Research annual
liability
Institute Sharehold
guarantee
ers'
Meeting
Total approved guarantee Total actual guarantee
limit for subsidiaries provided to subsidiaries
9500.001379.81
during this reporting during this reporting
period (C1) period (C2)
130Full text of the iFLYTEK's 2024 Annual Report
Total outstanding
Total approved guarantee
guarantee balance for
limit for subsidiaries as at
9500.00 subsidiaries as at the end 863.91
the end of this reporting
of this reporting period
period (C3)
(C4)
Total guarantees (the sum of the three items above)
Total guarantees actually
Total approved guarantees
provided during this
during this reporting 584660.00 189441.47
reporting period
period (A1+B1+C1)
（A2+B2+C2）
Total outstanding
Total approved guarantees
guarantees actually
as at the end of this
584660.00 provided as at the end of 114924.69
reporting period
this reporting period
(A3+B3+C3)
(A4+B4+C4)
Percentage of the total amount of actual
guarantees (A4+B4+C4) in the Company's net 6.46%
assets
3. Entrusting Others with Cash Asset Management
1) Entrusted Asset Management
√ Applicable □ Not applicable
Impairment Accrued
Outstanding Overdue or
Type Source of Funds Amount for Overdue or
Balance Unrecovered Amount
Unrecovered Amount
Other
Self-owned Funds USD 15 million USD 15 million - -
Categories
Total USD 15 million USD 15 million - -
High-risk entrusted asset management with large individual amounts or low safety and poor liquidity
□ Applicable √ Not applicable
Entrusted asset management that is expected to be unrecoverable or has other circumstances that may lead to
impairment
□ Applicable √ Not applicable
2) Entrusted Loans or Guarantees
□ Applicable √ Not applicable
The Company did not entrust any loans during this reporting period.
4. Other Major Contracts
□ Applicable √ Not applicable
The Company did not enter into any other significant contracts during this reporting period.XVI. Explanation of Other Significant Matters
□ Applicable √ Not applicable
131Full text of the iFLYTEK's 2024 Annual Report
There are no other significant matters requiring explanation during this reporting period.XVII. Significant Matters of the Company's Subsidiaries
√ Applicable □ Not applicable
At the 6th meeting of the Sixth Board of Directors the 6th Meeting of the 6th Board of Supervisors held on
January 9 2024 and the 2024 First Extraordinary Shareholders' Meeting held on January 25 2024 the
Company reviewed and approved the "Proposal for the Spin-off of Xunfei Healthcare Technology Co. Ltd. to
the Hong Kong Stock Exchange" and related proposals. Xunfei Healthcare Technology Co. Ltd. will gain an
independent financing platform to focus on its core business. This will boost its technical reserves and market
expansion in the healthcare sector enhancing its competitive edge. The move is expected to elevate the
Company's overall profitability and international influence thereby strengthening the competitiveness. After the
spin-off iFLYTEK will continue to hold control over Xunfei Healthcare Technology Co. Ltd. which will
remain within the scope of the Company's consolidated financial statements. The operating results of Xunfei
Healthcare Technology Co. Ltd. will be reflected in the overall performance of the listed company. The
Proposal for the Spin-off of Xunfei Healthcare Technology Co. Ltd. to the Hong Kong Stock Exchange was
published on January 10 2024 in the Securities Times China Securities Journal Shanghai Securities News
Securities Daily and on the CNINFO website at http://www.cninfo.com.cn.On January 26 2024 Xunfei Healthcare Technology Co. Ltd. submitted an application to the Hong Kong
Stock Exchange for its initial public offering of overseas shares (H-shares) and listing on the Main Board. The
application documents were published on the HKEX website (www.hkexnews.hk). In accordance with
regulations Xunfei Healthcare Technology Co. Ltd. also filed the necessary materials with the CSRC and
received confirmation on February 22 2024.On July 19 2024 the CSRC issued the "Filing Notice Regarding Xunfei Healthcare Technology Co.Ltd.'s Overseas Listing and Full - Circulation of Domestic Unlisted Shares" (No. [2024] 1510). For details see
the "Announcement on the Filing of the Initial Public Offering of Overseas Shares (H-shares) by Xunfei
Healthcare Technology Co. Ltd." published on July 27 2024 in the Securities Times China Securities Journal
Shanghai Securities News Securities Daily and on the CNINFO website at http://www.cninfo.com.cn.On August 8 2024 the Listing Committee of the Hong Kong Stock Exchange held a hearing to review the
application of Xunfei Healthcare Technology Co. Ltd. for issuance and listing.On December 12 2024 Xunfei Healthcare Technology Co. Ltd. published the post-hearing data for this
issuance on the HKEX website. For details see the "Announcement on the Publication of the Post-Hearing Data
for the Overseas Listing of H-shares by Xunfei Healthcare Technology Co. Ltd." (No.: 2024 - 074) published
on the CNINFO website at http://www.cninfo.com.cn.On December 30 2024 7035550 H-shares (before the exercise of over-allotment option) of Xunfei
Healthcare Technology Co. Ltd. were listed and traded on the Main Board of the Hong Kong Stock Exchange
with the approval of the HKEX. The Chinese abbreviation for the H-shares of Xunfei Healthcare Technology
Co. Ltd. is "XUNFEIHEALTH" with the stock code "2506." After the H-share issuance and listing of Xunfei
Healthcare Technology Co. Ltd. the Company will continue to maintain control over Xunfei Healthcare
Technology Co. Ltd. For details see the "Announcement on the Filing of Initial Public Offering and Listing of
Overseas Shares (H - shares) by iFLYTEK Medical Technology Co. Ltd." published on December 31 2024 in
132Full text of the iFLYTEK's 2024 Annual Report
the Securities Times China Securities Journal Shanghai Securities News Securities Daily and on the CNINFO
website at http://www.cninfo.com.cn.
133Full text of the iFLYTEK's 2024 Annual Report
Section VII Changes in Shares and Shareholder Information
I. Changes in Shares
1. Changes in Shares
In Shares
Before the change Change (increase/decrease) After the change
Shares
New
Bonus transferred Perce
Number Percentage shares Others Subtotal Number
shares from capital ntage
issued
reserve
--
I. Shares subject to 161138 1226307
6.96%385083850815.31%
selling restrictions 842 05
13737
1. State-held
shares
2. Shares held by
state-owned legal
persons
3. Shares held by - -
1611381226307
other domestic 6.96% 38508 385081 5.31%
84205
investors 137 37
In which:
shares held by
domestic legal
persons
Shares held by - -
1611381226307
domestic natural 6.96% 38508 385081 5.31%
84205
persons 137 37
4. Shares held by
foreign investors
In which:
shares held by
foreign legal
persons
Shares held by
foreign natural
persons
II. Shares not
21545534570345700218912094.70
subject to 93.04%
031108585396%
restrictions
RMB-
21545534570345700218912094.70
denominated 93.04%
031108585396%
ordinary shares
2. Domestically
listed foreign
shares
3. Overseas
listed foreign
shares
4. Others
231568--2311751
III. Total number of 100.00% 100%
915339380393805101
134Full text of the iFLYTEK's 2024 Annual Report
shares 52 2
Reasons for changes in shares
□ Applicable □ Not applicable
This shareholding change was due to the annual automatic adjustment of executive lock-up shares the
third release of restrictions on restricted shares under the 2021 Stock Option and Restricted Stock Incentive Plan
the exercise of stock options under the same plan and the repurchase and cancellation of some granted
restricted shares.Approval of share changes
□ Applicable □ Not applicable
On November 29 2023 the Company held the 5th meetings of its Sixth Board of Directors and Sixth
Board of Supervisors as well as the third Extraordinary Shareholders' Meeting of 2023. The proposed "Plan to
Repurchase and Cancel Some Granted Restricted Shares" was reviewed and approved. The Company
repurchased and canceled 313360 restricted shares under the second phase restricted stock incentive plan and
the 2021 Stock Incentive Plan. After review and confirmation by the Shenzhen Branch of China Securities
Depository and Clearing Corporation Limited the repurchase and cancellation were completed on February 23
2024. The Company's total share capital decreased from 2315689153 to 2315375793 shares. On April 21
2024 the seventh meetings of the sixth board of directors and sixth supervisory board were held followed by
the 2023 annual shareholders' meeting on May 1 2024. The proposed "Plan to Repurchase and Cancel Some
Granted Restricted Shares" was reviewed and approved. The Company repurchased and canceled 3641608
restricted shares under the 2021 Stock Incentive Plan. After review and confirmation by the Shenzhen Branch
of China Securities Depository and Clearing Corporation Limited the repurchase and cancellation were
completed on June 7 2024. The Company's total share capital decreased from 2315375793 to 2311734185
shares. On December 9 2024 at the 11th meeting of its Sixth Board of Directors and the 12th meeting of its
Sixth Board of Supervisors. On December 26 2024 the 4th Extraordinary Shareholders' Meeting of 2024 the
Company reviewed and approved the proposed "Plan to Repurchase and Cancel Some Granted Restricted
Shares". The Company plans to repurchase and cancel 98688 restricted shares granted to 69 beneficiaries but
not yet vested. Upon completion of this repurchase and cancellation the Company's registered capital will
change. Assuming no other changes to the registered capital during the implementation of this repurchase and
cancellation the Company's total share capital will decrease from 2311734185 to 2311635497 shares. As of
December 31 2024 this repurchase and cancellation process remains ongoing. (Note: On October 18 2024 at
the 9th meeting of the Sixth Board of Directors and the 10th meeting of the Sixth Board of Supervisors theCompany reviewed and approved the “Proposal on the Achievement of Exercise Conditions for the FirstTranche of Stock Options Under the 2021 Stock Option and Restricted Stock Incentive Plan.” As of November
3 2024 the third exercise period for stock options ended. By December 31 2024 incentive beneficiaries had
exercised options for 16916 shares increasing the Company's total share capital from 2311734185 to
2311751101 shares.)
Ownership transfer through shareholding change
□□ Applicable √ Not applicable
The Company repurchased and canceled 313360 restricted shares. After verification by the Shenzhen
Branch of China Securities Depository and Clearing Corporation Limited the cancellation was completed on
February 23 2024. After cancellation the Company's share capital decreased from 2315689153 to
2315375793 shares. Subsequently the Company again repurchased and canceled 3641608 restricted shares.
135Full text of the iFLYTEK's 2024 Annual Report
After verification by the Shenzhen Branch of China Securities Depository and Clearing Corporation Limited
the repurchase and cancellation were completed on June 7 2024. After cancellation the Company's share
capital decreased from 2315375793 to 2311734185 shares. (Note: After the Board of Directors approved the
repurchase and cancellation the total share capital of the Company increased by 16916 shares due to stock
option exercises changing from 2311734185 to 2311751101 shares.)
Effects of share change on basic/diluted earnings per share net assets per share attributable to ordinary
shareholders of the Company
√ Applicable □ Not applicable
During this reporting period the Company's repurchase and cancellation of previously granted restricted
shares led to a reduction of 3954968 shares. Meanwhile the exercise of stock options by incentive
beneficiaries resulted in an increase of 16916 shares. Overall these actions caused the Company's share capital
to decrease by 3938052 shares at the end of the period compared to the beginning. Consequently the basic
earnings per share diluted earnings per share and the net assets per share attributable to ordinary shareholders
of the Company have increased.Other information deemed necessary by the Company or required by the securities regulator to disclose
□ Applicable √ Not applicable
2. Changes in Restricted Shares
√ Applicable □ Not applicable
Shares
Balance of Number of
Increase of Balance of Reason
Restricted Restricted
Shareholder Restricted Restricted for
Shares at the Shares Date of Release
Name Shares in Shares at the Restricti
Beginning of Released
2024 End of 2024 on
2024 in 2024
The third release of
restrictions: From the first
2071 People
trading day 36 months after
Rewarded
Restrict the initial grant date to the last
Under the 2021
ed trading day within 48 months
Stock Option 9206000 -3954968 5152344 98688
Incentiv from the grant date. The
and Restricted
e Shares number of shares released
Stock Incentive
from restrictions represented
Plan
40% of the total restricted
shares granted.On the first trading day of
each year the China Securities
Depository and Clearing
Locked- Corporation (CSDC)
up Shenzhen Branch calculates
Directors shares the statutory number of shares
Supervisors and for that can be transferred by the
Senior 151932842 -29400825 0 122532017 senior listed company's directors
Management manage supervisors and senior
Members ment management members which
member is limited to 25% of the
s number of shares registered
under their names on the last
trading day of the previous
year.Total 161138842 -33355793 5152344 122630705 -- --
136Full text of the iFLYTEK's 2024 Annual Report
II. Securities Issuance and Listing
1. Securities Issuance (Excluding Preferred Shares) During This Reporting Period
□ Applicable √ Not applicable
2. Explanation of Changes in the Company's Total Shares Shareholder Structure and Structure of
Assets and Liabilities
√ Applicable □ Not applicable
During this reporting period the Company's stock incentive plan resulted in the exercise of 16916 stock
options increasing its total share capital by 16916 shares. Additionally the Company repurchased and canceled
3954968 restricted shares reducing its share capital by the same number. Overall the total number of shares
decreased by 3938052 at the end of 2024 compared to the beginning. As at the end of this reporting period the
Company's share capital was 2311751101 shares. The Company's total assets at the end of 2024 were 41.479
billion RMB yuan with an asset-liability ratio of 54.88%.
3. Current Employee Holdings
□ Applicable √ Not applicable
III. Shareholders and the Actual Controller
1. Number of Shareholders and Shareholding Structure of the Company
In Shares
Total
number
Total number of
of Total number of holders Total number of holders of
ordinary
ordinary of preferred shares with preferred shares with voting
shareholders at
sharehold voting rights resumed at rights resumed at the end of
367108 the end of the 386815 0 0
ers as at the end of this reporting the month before the annual
month before the
the end of period if any (see Note report date if any (see Note
annual report
this 8) 8)
date
reporting
period
Shareholding by shareholders holding more than 5% of the Company’s shares or by the largest 10 shareholders (excluding shares
lent through the securities lending program)
Pledged
Shares Held
Sharehol Marked or
at the End of Change Number of Number of
Shareholder Shareholder ding Frozen Shares
This (increase/d Restricted Unrestricted
Name Type Percenta
Reporting ecrease) Shares Held Shares Held Nu
ge Status of
Period mbShares
er
China Mobile Not
State-owned
Communications 10.03% 231800495 0.00 0.00 231800495 applicabl 0
Legal Person
Co. Ltd e
Domestic Not
Liu Qingfeng Natural 5.55% 128297167 0.00 96222875 32074292 applicabl 0
Person e
USTC Holdings State-owned 3.25% 75076787 0.00 0.00 75076787 Not 0
137Full text of the iFLYTEK's 2024 Annual Report
Co. Ltd. Legal Person applicabl
e
Hong Kong
Securities Not
Overseas -
Clearing 2.62% 60533406 0.00 60533406 applicabl 0
Legal Person 19949477
Company e
Limited
Domestic
Anhui Yanzhi Not
non-state-
Technology Co. 2.48% 57291611 0.00 0.00 57291611 applicabl 0
owned legal
Ltd. e
person
Industrial and
Commercial
Bank of China
Limited - Huatai-
Not
PineBridge CSI
Others 1.38% 31970258 19414073 0.00 31970258 applicabl 0
300 Exchange-
e
Traded Open-
Ended Index
Securities
Investment Fund
Overseas Not
-
Zhang Wei natural 1.25% 28880000 0.00 28880000 applicabl 0
32780000
person e
China
Construction
Bank
Not
Corporation-E
Others 0.95% 22030106 17352000 0.00 22030106 applicabl 0
Fund CSI 300
e
ETF Originated
Securities
Investment Fund
Domestic Not
Wang Renhua Natural 0.89% 20579197 -671900 0.00 20579197 applicabl 0
Person e
Domestic Not
Wang Zheng Natural 0.83% 19260500 3481200 0.00 19260500 applicabl 0
Person e
Strategic investors or general legal
persons became the top 10 China Mobile Communications Co. Ltd. as a strategic investor subscribed for 70273975
shareholders as a result of shares in the Company's non-public offering in 2013 with a lock-up period of 36 months.allotment of new shares if any These shares were released from restrictions and became tradable on April 25 2016.(see Note 3)
Note on connected relations or Among the shareholders mentioned above Anhui Yanzhi Technology Co. Ltd. is a
concerted actions of the above company controlled by Liu Qingfeng. It is unknown whether there are any related-party
shareholders relationships between the other shareholders or whether they are acting in concert.On December 26 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
Explanation on the above nominate over all the shares held by them at iFLYTEK for a term starting from the date of
shareholders' involvement in signing of such agreement to the date when the principals no longer held any shares of
entrusting or being entrusted with iFLYTEK. On April 9 2019 Liu Qingfeng signed the Power of Attorney with the principals
voting right and waiver of voting Nie Xiaolin Hu Guoping and Yang Jun agreeing that Nie Xiaolin Hu Guoping and Yang
right Jun would delegate to Liu Qingfeng the 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 have entrusted Liu
Qingfeng to exercise his voting rights.Shareholdings of the top 10 holders of unrestricted shares (excluding shares lent through the securities lending program and
locked-up shares held by senior management members)
Number of Restricted Type of Shares
Shares Held at the
Shareholder Name
End of This Type of Shares Number
Reporting Period
138Full text of the iFLYTEK's 2024 Annual Report
RMB-denominated
China Mobile Communications Co. Ltd 231800495 231800495
Ordinary Shares
RMB-denominated
USTC Holdings Co. Ltd. 75076787 75076787
Ordinary Shares
RMB-denominated
Hong Kong Securities Clearing Company Limited 60533406 60533406
Ordinary Shares
RMB-denominated
Anhui Yanzhi Technology Co. Ltd. 57291611 57291611
Ordinary Shares
Industrial and Commercial Bank of China Limited -
RMB-denominated
Huatai-PineBridge CSI 300 Exchange-Traded Open- 31970258 31970258
Ordinary Shares
Ended Index Securities Investment Fund
RMB-denominated
Zhang Wei 28880000 28880000
Ordinary Shares
RMB-denominated
China Construction Bank - E Fund CSI 300 ETF 22030106 22030106
Ordinary Shares
RMB-denominated
Wang Renhua 20579197 20579197
Ordinary Shares
RMB-denominated
Wang Zheng 19260500 19260500
Ordinary Shares
RMB-denominated
Wu Xiaoru 18322890 18322890
Ordinary Shares
Explanation of the relationships or concerted actions Among the shareholders mentioned above Anhui Yanzhi Technology
among the top 10 holders of unrestricted shares and Co. Ltd. is a company controlled by Liu Qingfeng. It is unknown
between these top 10 shareholders of unrestricted whether there are any related-party relationships between the other
shares and the top 10 shareholders. shareholders or whether they are acting in concert.Explanation on the involvement of the top 10 holders Zhang Wei holds 28880000 shares of the Company through a credit
of common shares in securities margin trading if any securities account (the balance at the beginning of this reporting period
(see Note 4). was 61660000 shares).Note: At the end of the reporting period the Company held 18555961 RMB-denominated unrestricted shares
in its dedicated stock repurchase account.Participation of shareholders holding more than 5% stake the top 10 shareholders and the top 10 holders of
unrestricted tradable shares in the securities lending under the securities lending program:
□ Applicable √ Not applicable
The changes from the previous reporting period due to the top 10 shareholders and the top 10 holders of
unrestricted tradable shares lending or returning shares through the securities lending program:
□ Applicable √ Not applicable
Did the top 10 holders of ordinary shares and the top 10 holders of unrestricted ordinary shares engage in
repurchase transactions during this reporting period
□ Yes √ No
None of the top 10 holders of ordinary shares and the top 10 holders of unrestricted ordinary shares engaged in
any repurchase transactions during this reporting period.
2. The Company's Controlling Shareholder
Nature of Controlling Shareholder: No Controlling Shareholder
Type of Controlling Shareholder type: No Controlling Shareholder
Explanation of the Absence of a Controlling Shareholder
The Company's shareholding structure is highly dispersed with no single shareholder holding enough shares to
exert control over the Company.
139Full text of the iFLYTEK's 2024 Annual Report
Change in controlling shareholders during this reporting period
□ Applicable √ Not applicable
The Company's controlling shareholders did not change during this reporting period.
3. The Company's Actual Controller and its Concerted Actors
Nature of Actual Controller: Domestic Natural Person
Type of Actual Controller: Natural Person
Actual Controller's Residency
Name of the Actual Relationship with the Actual
Nationality Rights in Other Countries or
Controller Controller
Region
Liu Qingfeng The Same Person Chinese No
Founder and Chairman of iFLYTEK Doctorate Director of the National Engineering Research
Center of Speech and Language Information Processing (NERC-SLIP) Adjunct Professor and
Primary occupation and Doctoral Supervisor at the University of Science and Technology of China Deputy to the 10th
position in the Company 11th 12th 13th and 14th National People's individuals Chairman of the Speech Industry Alliance
of China Innovation Alliance and Chairman of the Artificial Intelligence Industry-University-
Research Innovation Alliance of the Chinese Academy of Sciences
Domestic and Overseas Listed Companies Controlled over the
N/A
Past 10 years
Change in the Actual Controller During This Reporting Period
√ Applicable □ Not applicable
Name of Former Actual Controller Liu Qingfeng USTC Holdings Co. Ltd.Name of New Actual Controller Liu Qingfeng
Change Date November 19 2024
Website for Document and Release Query http://www.cninfo.com.cn/
Website Disclosure Date November 21 2024
A diagram of the property and control relationship between the Company and its actual controller
The actual controller controlling the Company through trusts or other asset management arrangements.□ Applicable √ Not applicable
140Full text of the iFLYTEK's 2024 Annual Report
4. The Ratio of the Cumulative Number of Shares Pledged by the Company's Controlling Shareholder or
Largest Shareholder and Their Concert Actors to the Total Number of Shares They Hold in the
Company Reaching 80%.□ Applicable √ Not applicable
5. Other legal individuals shareholders holding more than 10% of Shareholder type
√ Applicable □ Not applicable
Legal
Name of
Representativ Date of
Legal Registered
e or Person in Incorpo Main Business or Management Activities
Person Capital
Charge of the ration
Shareholder
Company
GSM digital mobile communication services; IP telephony services;
Internet access services; Internet backbone data transmission services;
network design; network investment; network construction; facility
installation; engineering construction; maintenance; system
integration; roaming settlement and clearing; technology development;
Februar 53218848
technical services; advertising; equipment sales; telecommunications
CMCC Yang Jie y 27 300 RMB
services; information services; mobile phone terminal sales; mobile
2004 yuan
phone terminal rental; IP telephony equipment sales; IP telephony
equipment rental; Internet device sales; Internet device rental;
accessory sales; after-sales services; business training; conference
services; accommodation (for trainees); catering services; swimming
pool operation.
6. Share Reduction Restrictions for Controlling Shareholders Actual Controller Restructuring Parties
and Other Commitment Entities
□ Applicable √ Not applicable
IV. Implementation of Share Buyback During This Reporting Period
Implementation progress of share buyback
□ Applicable √ Not applicable
Implementation progress of reducing repurchased shares via centralized bidding
□ Applicable √ Not applicable
141
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