BIDU(HK:09888) Sou Hu Cai Jing·2026-01-02 01:10Core Viewpoint - Baidu announced the submission of a listing application for its subsidiary Kunlun Chip to the Hong Kong Stock Exchange, aiming for a spin-off that will enhance operational transparency and attract specialized investors in AI computing chips [1][3]. Group 1: Spin-off Benefits - The proposed spin-off is expected to better reflect Kunlun Chip's value based on its strengths, improving operational and financial transparency for investors [3]. - The spin-off will attract investors focused on general AI computing chips and related hardware and software systems [3]. - Kunlun Chip's established business scale justifies its pursuit of a public listing, which will enhance its image among clients, suppliers, and potential strategic partners, thereby benefiting Baidu through its shareholding [3]. Group 2: Financial and Market Implications - The scale, structure, and Baidu's shareholding reduction in the global offering have yet to be finalized, pending approval from the Hong Kong Stock Exchange and regulatory bodies [3]. - Kunlun Chip, a semiconductor subsidiary of Baidu, focuses on AI chip development for applications in data centers, cloud computing, and autonomous driving [4]. - Kunlun Chip's latest funding round in July valued the company at approximately 21 billion RMB (about 2.97 billion USD), with Baidu holding a 59.45% stake [5]. - Analysts predict Kunlun Chip's revenue will surge from approximately 1.3 billion RMB in 2025 to 8.3 billion RMB in 2026, a sixfold increase, potentially leading to a valuation exceeding 80 billion RMB based on a 10x price-to-sales ratio [5].