Xin Lang Cai Jing·2026-01-04 06:37Core Viewpoint - Kunlun Core, an AI chip company under Baidu, has quietly submitted a listing application to the Hong Kong Stock Exchange on January 1, 2026, in a "confidential manner" to protect its business secrets and choose the best timing for public disclosure [2][12][22]. Group 1: Listing Process - The company has initiated a "secret submission" process, allowing it to submit all application materials to the exchange while keeping the content confidential from the public [3][17]. - This approach helps protect sensitive information such as financial data and client lists, which is crucial in the competitive AI chip industry [19][66]. - The company can control the timing of its public appearance based on market conditions and the progress of the review process [4][20]. Group 2: Reasons for Spin-off - Baidu aims to unlock the value of Kunlun Core by allowing it to operate as an independent entity, making its potential more visible to the market [5][74]. - The spin-off is expected to attract specialized investors focused on semiconductor technology, which may not be interested in Baidu's traditional internet advertising business [6][75]. - Kunlun Core will benefit from having its own financing platform, enhancing its brand recognition and operational focus [7][76]. Group 3: Shareholder Support - Kunlun Core boasts a prestigious shareholder list, including national funds and top venture capital firms, indicating strong backing and confidence in its future [8][34]. - Notable investors include IDG Capital, Junlian Capital, and BYD, which suggest potential collaborations in the automotive AI chip sector [9][10][89]. - Following its latest financing round, Kunlun Core's valuation has reached approximately 21 billion RMB [11][90]. Group 4: Market Reaction - Following the announcement, Baidu's stock price surged over 8%, reflecting positive market sentiment regarding the spin-off [12][28]. - Investment banks estimate that Baidu's 59% stake in Kunlun Core could be valued at tens of billions to over a hundred billion USD, highlighting the market's recognition of Baidu's undervalued hard tech assets [12][28]. Group 5: Current Status and Future Outlook - The application has been submitted, and the review process by the Hong Kong Stock Exchange has begun, marking a significant step in the listing journey [14][80]. - The company has transitioned from a limited liability company to a joint-stock company, a critical legal step for the listing process [43][94]. - Future steps include multiple rounds of inquiries from the exchange, followed by the public release of the prospectus and the eventual listing [25][81].