Every year in the earnings season, the financial reports of various listed companies are the focus of everyone's attention, and this year's AI is undoubtedly the top priority of the market, just recently the financial report of the leading enterprise of the large model iFLYTEK was announced, and the net profit increased by 17% year-on-year.
1. iFLYTEK's net profit increased by 17% year-on-year
According to the Shanghai Securities News, the 2023 annual report disclosed by iFLYTEK shows that the company's annual operating income was 19.65 billion yuan, a year-on-year increase of 4.41%, and the net profit attributable to the parent company was 657 million yuan, a year-on-year increase of 17.12%.
According to the annual report, the revenue contribution of the open platform and consumer business continued to increase. iFLYTEK's annual revenue reached 6.19 billion yuan, a year-on-year increase of 33.4%, making it the company's largest business segment. This business accounted for 31.47% of total revenue, which is also the first time that this indicator has exceeded 30%.
The annual report shows that the company's R&D investment reached 3.84 billion yuan last year, a year-on-year increase of 14.36%, accounting for 19.53% of revenue, an increase of 1.7 percentage points over 2022.
According to the annual report, the company's open platform and consumer business achieved operating income of 6.19 billion yuan, a year-on-year increase of 33.4%, accounting for 31.47% of total revenue, which is also the first time that the proportion of this business revenue exceeds 30%, becoming the largest business segment of iFLYTEK. The revenue of smart cars, smart medical care and smart finance was 700 million yuan, 540 million yuan and 290 million yuan respectively, a year-on-year increase of 52.2%, 14.9% and 26.1% respectively.
On January 30, 2024, the "iFLYTEK Xinghuo V3.5" trained on the above platform was officially released, and the latest version has achieved significant improvements in logical reasoning, language understanding, text generation, math answering, code, and multimodal capabilities, further approaching the latest level of GPT-4 Turbo.
2. What should we think about the future of iFLYTEK in the era of large models?
As one of the leading AI companies in China, iFLYTEK has made remarkable achievements in the field of artificial intelligence in recent years. According to the recently released financial report data, iFLYTEK has achieved a year-on-year increase of 17.12% in net profit in 2023.
First of all, iFLYTEK's financial performance in 2023 was outstanding, with a net profit growth of 17.12%. This achievement not only reflects the company's good operating state, but also reflects the company's competitiveness in the field of artificial intelligence. With the continuous maturity of large-scale model technology, iFLYTEK has begun the process from technology research and development to commercialization, and its large-scale model advantages are gradually emerging. This growth indicates that the company's strategic layout in the field of AI has been recognized by the market and has begun to translate into actual profits.
Secondly, iFLYTEK continues to increase its R&D investment, which has laid a solid foundation for its development in the era of artificial intelligence large models. In 2023, iFLYTEK's R&D investment increased by 14.36% year-on-year to 3.84 billion yuan. This figure not only reflects iFLYTEK's emphasis on R&D, but also demonstrates its determination and strength in technological innovation. In addition, iFLYTEK also plans to continue to improve the seven core capabilities of the universal base in the future, which will help it make greater breakthroughs and progress in the field of large models.
Third, the future development of iFLYTEK is not limited to technological innovation and R&D. The application of the Spark model is becoming an important direction for the future development of iFLYTEK. The Xinghuo model is an important achievement of iFLYTEK in the field of artificial intelligence model, which has a wide range of application prospects and huge market potential. Through the application of the Xinghuo model, iFLYTEK can better integrate its artificial intelligence technology into various industries, providing strong impetus and support for the development of the industry.
In terms of C-end hardware, the application of the Xinghuo large model has achieved remarkable results. By empowering C-end hardware, iFLYTEK's GMV has achieved a year-on-year increase of 84%. This achievement not only proves the strong application ability of the Xinghuo model in the hardware field, but also demonstrates the strength of iFLYTEK in marketing and brand building. In the future, with the continuous improvement of Xinghuo large model technology and the expansion of application scenarios, iFLYTEK's share in the C-end hardware market is expected to further increase.
Fourth, large model+ is becoming a source of more imagination. iFLYTEK is vigorously promoting the "big model+" strategy, which will greatly promote the digital transformation of all walks of life. Especially in the fields of education and medical care, iFLYTEK has made substantial breakthroughs, which not only improve the efficiency of learning and diagnosis and treatment, but also enhance the brand influence and social value of iFLYTEK. In the field of education, iFLYTEK uses AI technology to improve teaching and learning experience for students, while in the field of healthcare, it improves the quality and efficiency of medical services by providing intelligent services. These efforts have helped iFLYTEK build stronger partnerships in the industry and develop more business models and revenue streams.
The future outlook of iFLYTEK is optimistic, iFLYTEK has made full preparations in the depth and breadth of AI technology, and with the full popularization of large models, iFLYTEK may usher in more opportunities.