I still don't have any evidence that this ereader is actually available, but it now appears that at least two color ereaders have been announced in China.
Details are rather scare on the iflytek eBook (which is why I seriously suspect it's vaporware). Everyone is reporting that it has a 24-LED frontlight, support for TTS and music via a built-in speaker, but other details like RAM, CPU, WIFI, and touchscreen tech are still unknown.
What I do find interesting is that several sites mention that the screen has two modes, one for black and white and another for color. Here's the fun part: the color mode is 212 PPI, while the black and white mode is 300 PPI.
I asked e-ink for more info on why there's a difference, but given the current crisis it might take them a while to get back to me.