BIDU(HK:09888) Jin Rong Jie·2025-12-08 04:03Core Viewpoint - Baidu Group has clarified that it is evaluating the potential spin-off and independent listing of its subsidiary Kunlun Chip (Beijing) Technology Co., Ltd. The company does not guarantee that the proposed spin-off and listing will occur, as it requires regulatory approval [1][3]. Group 1: Company Developments - On December 5, market rumors suggested that Kunlun Chip was preparing for a listing in Hong Kong and had completed a new round of financing, with a post-investment valuation of approximately 21 billion RMB [3]. - Following the rumors, Baidu's stock price surged over 7% during trading on December 5, closing up 5.01% at 121.6 HKD per share [3]. - Kunlun Chip, which was established as an independent entity in 2021, has undergone three generations of product iterations, with the third generation P800 series set for mass production in 2024 [5][6]. Group 2: Financial Performance - Baidu's Q3 2025 financial report indicated total revenue of 31.2 billion RMB, a year-on-year decrease of 7%, and a net loss of 11.232 billion RMB, compared to a net profit of 7.632 billion RMB in the same period last year [6]. - The AI business revenue grew over 50% year-on-year, with intelligent cloud infrastructure revenue reaching 4.2 billion RMB (up 33% year-on-year) and AI application revenue increasing by 6% to 2.6 billion RMB [6].