Photo/Tuchong 

Oct. 10 (NBD) -- Chinese artificial intelligence (AI) company iFlytek Science and Technology Co. Ltd. (iFlytek, 002230.SZ) on Thursday disclosed its bright profit projections in the first three quarters of 2019.

Boosted by the news, iFlytek shares soared 7.7 percent to 33.98 yuan (4.78 U.S. dollars) per share on the day.

According to iFlytek's announcement, its net profit attributable to shareholders in the first nine months of 2019 is expected to increase 50.61-73.43 percent to 330-380 million yuan from year-ago period.

National Business Daily (NBD) noticed that the Shenzhen-listed company has grossed an escalating net profit growth for two consecutive years. iFlytek also announced robust growth in its interim financial report, adding 45 percent to 189 million yuan in net profit compared to the previous year. The firm attributed the vigorous growth to its technology-driven strategy amid the sustainable development of the AI industry.

AI that is claimed to be capable of transforming the world in the future is poised to contribute up to 15.7 trillion U.S. dollars to the global economy by 2030, said PwC in a report. iFlytek not only benefits from the booming AI industry but also invests into the field to bolster the ecosystem in China. The company was reportedly to raise 350 million U.S. dollars to invest in AI start-ups in face of the lingering trade tension between China and the U.S.

The U.S. Commerce Department stated on Tuesday (October 8, Beijing Time) that it have added 28 Chinese entities to its "Entity List", among which China's top AI startups Megvii and iFlytek have been placed.

"The inclusion in the 'Entity List' will not impose a significant impact on the daily operation of iFlytek. We have made preparations for this situation and will continue to provide high-quality products and services to our customers," said iFlytek shortly after the U.S. statement.

This was seemingly proved by performance of iFlytek stock. Shares of the company closed 2.67 percent lower on October 8, but immediately recovered and increased by 1.74 percent on the next trading day.  

NBD found that the U.S. market only contributed 0.01 percent to iFlytek's total revenues in 2018 and the combined overseas business accounted for a mere 0.61 percent.

Email: gaohan@nbd.com.cn