Baidu proposes spinoff of AI chip unit Kunlunxin on Hong Kong exchange

Baidu Inc. (NASDAQ: BIDU) announced a proposed spinoff and separate listing of its AI chip subsidiary Kunlunxin (Beijing) Technology Co., Ltd. on the Hong Kong Stock Exchange main board.

The company submitted a confidential listing application to the Hong Kong Stock Exchange for Kunlunxin's H shares. Baidu expects to retain Kunlunxin as a subsidiary following the proposed transaction.

The spinoff requires approvals from the Hong Kong Stock Exchange and completion of filing with China Securities Regulatory Commission. Final decisions from both Baidu and Kunlunxin are also needed before proceeding.

Baidu stated the proposed transaction aims to showcase Kunlunxin's value independently, attract AI chip sector investors, and enhance the unit's market profile while broadening its financing channels.

Details of the proposed spinoff have not been finalized. The company noted no assurance exists that the transaction will occur or its timing.

Kunlunxin operates as a non-wholly owned subsidiary of Baidu focused on AI chip technology. The parent company describes itself as a leading AI company with internet foundation, founded in 2000.

The announcement included standard forward-looking statement disclaimers regarding risks and uncertainties that could affect actual results.

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