Iflytek plans private placement for AI and education expansion

Iflytek has received an application acceptance from the Shenzhen Stock Exchange for its 2025 non-public issuance of A-shares, following board and shareholder approvals in August, September, and October 2025. This placement, which will issue up to 100,000,000 shares (4.33% of current capital) to no more than 35 specific subscribers at a price not lower than 80% of the average share price over the 20 trading days prior to the pricing base date, aims to raise up to 400,000.00 million yuan. The proceeds will be allocated to the Spark Education Large Model and Typical Products Project, the Computing Power Platform Project, and to supplement working capital.

Guiding Technology, a company controlled by Iflytek's actual controller Liu Qingfeng, will subscribe for 25,000 million yuan to 35,000 million yuan, signaling strong internal commitment. This strategic move aligns with national policies supporting AI development and is expected to enhance Iflytek's AI leadership in education, expand its computing power, and improve financial stability without altering the company's control.

The legal opinion confirms the issuance's compliance with company and securities laws. The issuance is pending further approval from the Shenzhen Stock Exchange and the China Securities Regulatory Commission.