China’s AI champion iFlyTek says 2019 revenue will exceed US$1.4 billion as it downplays impact of tech war
- Net profit of 732 million to 894 million yuan forecast for 2019, representing year-on-year growth of between 35 to 65 per cent
- Last year was a challenging one for Chinese tech companies as the tech cold war between China and the US escalated
China’s voice recognition champion iFlyTek said on Monday that its 2019 revenue is expected to surpass 10 billion yuan (US$1.4 billion) on the back of healthy development in its core artificial intelligence business.
Despite being added to a US trade blacklist last October, iFlyTek said it will report a net profit of 732 million to 894 million yuan for 2019, representing year-on-year growth of between 35 to 65 per cent amid a “complicated international and domestic economic environment”, according to a company statement.
Last year was a challenging one for Chinese tech companies as the tech cold war between the world’s two largest economies escalated.
Citing national security concerns, the US added Chinese telecoms leader Huawei Technologies to a so-called Entity list last May, banning it from buying US-made components and software.
Five months later, iFlyTek, along with 20 Chinese public security bureaus and seven other companies including facial recognition start-ups Sensetime, Megvii and Yitu, video surveillance specialists Hikvision and Dahua Technology, were added to the same trade blacklist over Beijing’s alleged surveillance of Uygur Muslims and other predominantly Muslim ethnic minorities in Xinjiang.
However, iFlyTek brushed off its US entity list inclusion when it announced third quarter earnings of 184 million yuan on an earlier forecast of between 141 million to 191 million yuan.