iFlytek to raise 400m yuan in share issuance for AI development

iFlytek announced its application for a targeted A-share issuance has been accepted by the Shenzhen Stock Exchange. This follows board and shareholder approvals in August, September, and October 2025. The company plans to raise up to 400m yuan for "Spark Education Large Model and Typical Products," "Computing Platform," and "replenishing working capital." The issuance size will not exceed 100m shares, representing 4.33% of the current capital. The proceeds will be used to enhance AI research, strengthen its computing infrastructure, and boost working capital.

iFlytek’s latest financial report for the period ending June 30, 2025, shows total assets of 42.93bn yuan and liabilities of 24.07bn yuan, resulting in a 56.07% asset-liability ratio. Revenue for the first half of 2025 was 10.91bn yuan, with a net loss attributable to shareholders of 238.93m yuan, down from a profit of 560.16m yuan in 2024. Despite the interim loss, the company projects increased revenue and improved liquidity.

The issuance aligns with national industrial policies supporting AI and digital transformation. It will increase iFlytek’s capital strength, improve its financial structure, and provide the necessary funding for strategic AI initiatives in education and other sectors. The issuance is expected to dilute earnings per share in the short term but is critical for long-term growth and competitiveness.