# Iflytek (002230.SHE)

Canonical: https://gigainvestors.com/s/002230.SHE

Analysis as of: 2026-10-16T07:35:25.351Z. Financial observations: FY2005–FY2025.

Listing currency: CNY. Reporting currency: CNY.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: CNY 36.30 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 0 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 0

- Operating margin variation: 0.55×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.12×

- FY2017: 0.10×

- FY2018: 0.08×

- FY2019: 0.10×

- FY2020: 0.11×

- FY2021: 0.08×

- FY2022: 0.02×

- FY2023: 0.02×

- FY2024: 0.01×

- FY2025: 0.06×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 9.5%

- ROIC, second-lowest year: 2.2%

- Typical minus recent gross margin: 1.4 pp

- Typical gross margin (annual median): 43.8%

- Recent gross margin (lower of latest and 3-year median): 42.4%

- Years with nonpositive capital: 0

- Capital spending / revenue: 16.3%

- ROIC including acquisitions, ten-year median: 3.2%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 8.9%

- FY2017: 10.1%

- FY2018: 10.5%

- FY2019: 13.9%

- FY2020: 19.7%

- FY2021: 13.9%

- FY2022: 2.2%

- FY2023: 2.5%

- FY2024: 1.5%

- FY2025: 8.1%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: -0.16×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY -686M

- Net income, five-year total: CNY 4.2B

- Return on incremental invested capital: 7.7%

- Working capital / revenue, annual change: -0.9 pp

- Working capital / revenue, change between three-year averages: -6.4 pp

- Working capital / revenue, final three-year average: 38.8%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 0.95×

- FY2022: -0.23×

- FY2023: -2.41×

- FY2024: -2.09×

- FY2025: 0.85×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 10.1% vs 2.5%

- Per-share earnings: 0.25 to 0.28 (three-year endpoint medians)

- acquired goodwill and intangibles (proxy) exceeds half of ten-year net income with low and deteriorating ROIC

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 3.1%

- Ordinary dilution, 5-year annual growth: 0.5%

- Market cap gain: CNY 87B

- Cumulative retained earnings: CNY 4.5B

- Diluted shares, 10-year annual growth: 3.1%

- Diluted shares, 5-year annual growth: 0.5%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 1.6%

- Per-share value change: CNY 0.03

- Per-share value, starting three-year median: CNY 0.25

- Per-share value, ending three-year median: CNY 0.28

- Buybacks concentrated in cheaper years (correlation): -0.49

- Average buyback yield: 0.2%

- Buyback history: 6 years

- Debt-funded buybacks: Yes

- Acquisition spending: CNY 5.5B

- Cumulative net income, 10 years: CNY 7.8B

- ROIC, first three-year median: 10.1%

- ROIC, last three-year median: 2.5%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 0.29

- FY2017: CNY 0.24

- FY2018: CNY 0.24

- FY2019: CNY 0.40

- FY2020: CNY 0.60

- FY2021: CNY 0.62

- FY2022: CNY 0.24

- FY2023: CNY 0.28

- FY2024: CNY 0.24

- FY2025: CNY 0.36

### accounting: pass

- Sloan accruals: -5.3%

- Receivables to sales index (DSRI): 0.86×

- Restructuring years, last five: 0

- Earnings backed by cash: Yes

- Operating cash / earnings: 3.82×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.37×

Chart: Sloan accruals; fiscal year observations.

- FY2016: 1.8%

- FY2017: 0.5%

- FY2018: -3.9%

- FY2019: -3.6%

- FY2020: -3.6%

- FY2021: 2.1%

- FY2022: -0.2%

- FY2023: 0.8%

- FY2024: -4.7%

- FY2025: -5.3%

## Holders

## Price story

Down 47% since Jun 2023 · sales +16.1%

Story as of 2026-10-16T10:00:04.822Z; price observation 2026-10-15.

### Sales · FY2024–2025

sales +16.1%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 3.3B 

- FY2017: CNY 5.4B 

- FY2018: CNY 7.9B 

- FY2019: CNY 10B 

- FY2020: CNY 13B 

- FY2021: CNY 18B 

- FY2022: CNY 19B 

- FY2023: CNY 20B 

- FY2024: CNY 23B 

- FY2025: CNY 27B 

### Gross margin · FY2025

gross margin 42.4%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 50.5% 

- FY2017: 51.3% 

- FY2018: 50.0% 

- FY2019: 46.0% 

- FY2020: 45.0% 

- FY2021: 41.0% 

- FY2022: 40.7% 

- FY2023: 42.6% 

- FY2024: 42.4% 

- FY2025: 42.4% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in software application; annual sales are CNY 27.1 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:25.351Z); FY2025: revenue 27105390547.66; grossProfit 11480985299.98; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 002230.SHE: iFLYTEK CO.,LTD, together with its subsidiaries, provides intelligent speech and technology solutions and services in China and internationally. The company offers smart recorder, translator, voicebook, dictionary pen, space products, and microphones; AINOTE, a voice transcription device; Spark Trans, a multilingual simultaneous interpreting system; Deepting, an AI-powered transcription tool; and global Chinese learning platform and AI + marketing solutions. It also provides intelligent application systems; software for voice and speech recognition and conversion; computer software design and programming services; technical research in the field of computer software; advertising; online trading; marketing; and computer database information system through platform and website. In addition, the company offers telecommunication services, including wireless telephone services, wireless telephony and wireless broadband communications services, and consulting services for transmission of voice, data, and documents via telecommunications networks. Further, it is involved in education and training; software development; installation engineering; system integration; data processing and storage support; cultural and artistic services; rental business; investment activities; childcare; insurance; provision of internet data and network services; AI application; and industrial robot manufacturing. The company was formerly known as Anhui USTC iFLYTEK Co., Ltd. and changed its name to iFLYTEK CO.,LTD in April 2014. iFLYTEK CO.,LTD was founded in 1999 and is headquartered in Hefei, China.

### Why customers stay

Margins ranged from 42.4% to 42.6% during 2023–25; it earns 9.5% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:25.351Z); FY2023: grossProfit / revenue = 42.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:25.351Z); FY2024: grossProfit / revenue = 42.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:25.351Z); FY2025: grossProfit / revenue = 42.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:25.351Z); 10-year return on capital observations [[2016,0.08878121461790435],[2017,0.10050265867901743],[2018,0.10480827753169232],[2019,0.1390213217956155],[2020,0.19706007879353557],[2021,0.13877363850338353],[2022,0.022193666224726724],[2023,0.024701214414288127],[2024,0.015166415031854974],[2025,0.0805441141042971]]; median 0.09464193664846089. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 41% gross margin through 2022 cost inflation.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:25.351Z); Gross margin observations: [[2021,0.4095538475477615],[2022,0.406855420439699],[2023,0.42587230694298095]]; range within 2 percentage points.

### Where the cash goes

Earns 7.7% on new investment; paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:25.351Z); FY2016: growth capex 330011541.67381454; upkeep 734990868.3261855; owner earnings 63589309.673814535. Growth capex / owner earnings = 5.18973304422756.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:25.351Z); FY2017: growth capex 648353003; upkeep 387455902; owner earnings 434676000. Growth capex / owner earnings = 1.4915776417377542.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:25.351Z); FY2018: growth capex 907139952.7251172; upkeep 916184632.2748828; owner earnings 213086859.7251172. Growth capex / owner earnings = 4.257136990499231.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:25.351Z); FY2019: growth capex 697926058.0975742; upkeep 1188666015.9024258; owner earnings 529254046.09757423. Growth capex / owner earnings = 1.3186976334780884.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:25.351Z); FY2020: growth capex 67224101; upkeep 1182150491; owner earnings 1363789626. Growth capex / owner earnings = 0.049292134005424676.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:25.351Z); FY2021: growth capex 719266802; upkeep 1362634884; owner earnings 1486287132.75. Growth capex / owner earnings = 0.4839352949716909.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:25.351Z); FY2025: growth capex 773570437.6800003; upkeep 2377073974.39; owner earnings 716890552.652. Growth capex / owner earnings = 1.0790635123009.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:25.351Z); Incremental return on capital 0.07719568490658404, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:25.351Z); Dividend observations: [[2016,153770612],[2017,168104549],[2018,193531811],[2019,219857506],[2020,371599217],[2021,490633310],[2022,231125847],[2023,307264638.72],[2024,399417378],[2025,407254862.9]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:25.351Z); FY2025: cash repurchases 119375430.56 CNY.

### Are managers owners

Insiders own 23.6% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 002230.SHE SharesStats.PercentInsiders = 23.642 percentage points; cache date 2026-10-16.

### What the price says

The price is 3.1 times annual sales.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:25.351Z); Closing price 36.3 CNY; reporting-to-trading FX 1; FY2025 annual sales per share 11.625026009322475; price multiple 3.122573658836538. FY2025 cash earnings/share 0.30746176874904035. Closing-price date 2026-10-15.

## Monthly share-price history (CNY per share)

- 2016-10: CNY 19.99 per share

- 2016-11: CNY 19.79 per share

- 2016-12: CNY 18.06 per share

- 2017-01: CNY 18.02 per share

- 2017-02: CNY 20.51 per share

- 2017-03: CNY 23.40 per share

- 2017-04: CNY 21.13 per share

- 2017-05: CNY 19.88 per share

- 2017-06: CNY 26.60 per share

- 2017-07: CNY 31.61 per share

- 2017-08: CNY 38.01 per share

- 2017-09: CNY 35.77 per share

- 2017-10: CNY 35.73 per share

- 2017-11: CNY 43.91 per share

- 2017-12: CNY 39.43 per share

- 2018-01: CNY 36.64 per share

- 2018-02: CNY 36.79 per share

- 2018-03: CNY 40.55 per share

- 2018-04: CNY 35.19 per share

- 2018-05: CNY 36.21 per share

- 2018-06: CNY 32.07 per share

- 2018-07: CNY 31.41 per share

- 2018-08: CNY 31.25 per share

- 2018-09: CNY 28.57 per share

- 2018-10: CNY 22.57 per share

- 2018-11: CNY 24.62 per share

- 2018-12: CNY 24.64 per share

- 2019-01: CNY 27.29 per share

- 2019-02: CNY 35.71 per share

- 2019-03: CNY 36.29 per share

- 2019-04: CNY 32.31 per share

- 2019-05: CNY 29.08 per share

- 2019-06: CNY 33.24 per share

- 2019-07: CNY 32.85 per share

- 2019-08: CNY 32.90 per share

- 2019-09: CNY 31.86 per share

- 2019-10: CNY 33.09 per share

- 2019-11: CNY 32.96 per share

- 2019-12: CNY 34.48 per share

- 2020-01: CNY 35.11 per share

- 2020-02: CNY 38.59 per share

- 2020-03: CNY 34.46 per share

- 2020-04: CNY 33.29 per share

- 2020-05: CNY 31.97 per share

- 2020-06: CNY 37.43 per share

- 2020-07: CNY 36.61 per share

- 2020-08: CNY 37.70 per share

- 2020-09: CNY 34.27 per share

- 2020-10: CNY 38.03 per share

- 2020-11: CNY 38.22 per share

- 2020-12: CNY 40.87 per share

- 2021-01: CNY 46.75 per share

- 2021-02: CNY 48.21 per share

- 2021-03: CNY 48.33 per share

- 2021-04: CNY 50.97 per share

- 2021-05: CNY 62.10 per share

- 2021-06: CNY 67.58 per share

- 2021-07: CNY 58.60 per share

- 2021-08: CNY 52.38 per share

- 2021-09: CNY 52.90 per share

- 2021-10: CNY 56.42 per share

- 2021-11: CNY 54.00 per share

- 2021-12: CNY 52.51 per share

- 2022-01: CNY 43.40 per share

- 2022-02: CNY 48.99 per share

- 2022-03: CNY 46.57 per share

- 2022-04: CNY 37.00 per share

- 2022-05: CNY 36.36 per share

- 2022-06: CNY 41.22 per share

- 2022-07: CNY 42.04 per share

- 2022-08: CNY 37.49 per share

- 2022-09: CNY 32.82 per share

- 2022-10: CNY 35.03 per share

- 2022-11: CNY 32.25 per share

- 2022-12: CNY 32.83 per share

- 2023-01: CNY 40.58 per share

- 2023-02: CNY 48.34 per share

- 2023-03: CNY 63.68 per share

- 2023-04: CNY 60.60 per share

- 2023-05: CNY 59.75 per share

- 2023-06: CNY 67.96 per share

- 2023-07: CNY 62.88 per share

- 2023-08: CNY 54.83 per share

- 2023-09: CNY 50.66 per share

- 2023-10: CNY 45.56 per share

- 2023-11: CNY 44.75 per share

- 2023-12: CNY 46.38 per share

- 2024-01: CNY 38.40 per share

- 2024-02: CNY 49.39 per share

- 2024-03: CNY 48.72 per share

- 2024-04: CNY 45.11 per share

- 2024-05: CNY 42.20 per share

- 2024-06: CNY 42.95 per share

- 2024-07: CNY 39.72 per share

- 2024-08: CNY 34.39 per share

- 2024-09: CNY 44.44 per share

- 2024-10: CNY 45.95 per share

- 2024-11: CNY 51.31 per share

- 2024-12: CNY 48.32 per share

- 2025-01: CNY 50.68 per share

- 2025-02: CNY 51.80 per share

- 2025-03: CNY 47.57 per share

- 2025-04: CNY 46.93 per share

- 2025-05: CNY 46.03 per share

- 2025-06: CNY 47.88 per share

- 2025-07: CNY 48.78 per share

- 2025-08: CNY 53.35 per share

- 2025-09: CNY 56.05 per share

- 2025-10: CNY 55.60 per share

- 2025-11: CNY 49.52 per share

- 2025-12: CNY 50.29 per share

- 2026-01: CNY 59.60 per share

- 2026-02: CNY 55.82 per share

- 2026-03: CNY 46.21 per share

- 2026-04: CNY 47.79 per share

- 2026-05: CNY 47.90 per share

- 2026-06: CNY 40.84 per share

- 2026-07: CNY 42.22 per share

- 2026-08: CNY 40.30 per share

- 2026-09: CNY 37.22 per share

- 2026-10: CNY 37.22 per share

## Annual estimated value (CNY per share)

- FY2016: low CNY 2.65 per share, central CNY 2.81 per share, high CNY 3.01 per share

- FY2017: low CNY 4.79 per share, central CNY 6.17 per share, high CNY 6.97 per share

- FY2018: low CNY 2.66 per share, central CNY 3.37 per share, high CNY 3.78 per share

- FY2019: low CNY 4.38 per share, central CNY 5.35 per share, high CNY 5.91 per share

- FY2020: low CNY 6.32 per share, central CNY 8.07 per share, high CNY 9.09 per share

- FY2021: low CNY 10.23 per share, central CNY 13.59 per share, high CNY 15.55 per share

- FY2022: low CNY 6.75 per share, central CNY 8.00 per share, high CNY 9.06 per share

- FY2023: low CNY 6.67 per share, central CNY 8.09 per share, high CNY 9.22 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.