(Yicai Global) April 22 -- China’s leading voice recognition specialist iflytek reported its first loss since going public 12 years ago because the coronavirus epidemic caused operating problems in the first quarter.

The Hefei-based company had a CNY131 million (USD18.5 million) loss in the three months ended March, compared with a CNY102 million profit a year earlier, its earnings report showed yesterday. Revenue fell 28 percent to CNY1.4 billion (USD197.6 million). But it expects year-on-year profit growth this quarter.

Covid-19 knocked iFlytek’s projects in the first quarter, but will not significantly affect its long-term development, the company said.

The epidemic has led to strong demand for the integration of artificial intelligence, the internet, education and healthcare, and swathes of companies are also now working online. IFlytek’s businesses have adapted fast to the new situation, creating more opportunities for growth, the report said. New contracts totaled CNY920 million last month, a 91 percent surge on a year earlier.

Shares of iFlytek [SHE:002230] closed 2 percent higher today at CNY35.25 (USD4.97). It listed in May 2008.

For the year ended December, the firm’s net profit attributable to shareholders jumped 51 percent to CNY819 million on a 27.3 percent gain in revenue to CNY10.1 billion.

Editor: Peter Thomas