Baidu Announces Proposed Spin-off and Separate Listing of Kunlunxin

Rhea-AI Summary

Baidu (NASDAQ: BIDU) announced a proposed spin-off and separate listing of the H shares of Kunlunxin (Beijing) Technology on the Main Board of the Hong Kong Stock Exchange.

A confidential listing application form has been submitted to the HKEX. The Proposed Spin-off aims to showcase Kunlunxin's value, attract AI chip investors, broaden financing channels, and align management accountability with performance.

Details are not final: the transaction is subject to HKEX approval, completion of the China Securities Regulatory Commission filing, and final decisions by both parties. It is expected Kunlunxin will remain a subsidiary after completion, and there is no assurance the Proposed Spin-off will occur or on its timing.

Positive

• Confidential HKEX listing application submitted for Kunlunxin H shares
• Spin-off aims to broaden financing channels and attract AI chip investors

Negative

• Proposed Spin-off requires HKEX and CSRC approvals, creating execution risk
• Company states no assurance the Proposed Spin-off will take place or on timing

Key Figures

Total revenue RMB31.2 billion Q3 2025, -7% YoY

AI-powered businesses revenue RMB10 billion Q3 2025, >50% YoY growth

AI Cloud Infra revenue RMB4.2 billion Q3 2025, +33% YoY

AI-native Marketing Services RMB2.8 billion Q3 2025, +262% YoY

Operating loss RMB15.1 billion Q3 2025, includes impairment

Impairment of assets RMB16.2 billion Q3 2025, long-lived assets

Non-GAAP net income RMB3.8 billion Q3 2025

Cash and investments RMB296.4 billion As of Sept 30, 2025

Market Reality Check

$141.26 Last Close

Volume Volume 2,150,241 is below 20-day average of 2,498,974, suggesting no pre-news accumulation signal. normal

Technical Price 130.66 is above 200-day MA of 102.97, reflecting a pre-news longer-term uptrend.

Peers on Argus

Key peers (e.g., TME, RDDT, Z) showed modest declines between -0.54% and -1.95%, broadly in line with BIDU’s -1.3% move, but no momentum scanner signals or peer news suggest this spin-off headline was stock-specific.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Nov 18	Q3 2025 earnings	Positive	+2.7%	Q3 revenue and strong AI business growth despite asset impairment.
Nov 13	AI product launch	Positive	-6.4%	Launch of ERNIE 5.0 and multiple AI applications with strong usage.
Nov 11	Robotaxi permit win	Positive	-0.3%	Abu Dhabi fully driverless commercial permit and fleet expansion plans.
Oct 27	Conference announcement	Positive	+4.8%	Announcement of Baidu World 2025 flagship AI technology conference.
Oct 22	Autonomous partnership	Positive	-1.8%	Apollo Go partnership with PostBus to deploy AVs in Switzerland.

Pattern Detected

Recent history shows mixed alignment: major AI and autonomous driving announcements often saw muted or negative reactions despite positive strategic content.

Recent Company History

Over the last few months, Baidu has emphasized AI and autonomous driving growth. Q3 2025 results showed total revenue of RMB31.2 billion with AI-powered businesses exceeding RMB10 billion, alongside sizeable impairment-driven losses. Product-side, Baidu launched ERNIE 5.0 and highlighted strong usage metrics, while Apollo Go expanded via permits in Abu Dhabi and a partnership with PostBus in Switzerland. Market reactions alternated between gains and pullbacks, indicating investors weighed profitability, investments and AI optionality. The Kunlunxin spin-off proposal fits this broader effort to surface AI-related value.

Market Pulse Summary

The stock surged +15.0% in the session following this news. A strong positive reaction aligns with Baidu’s broader push to highlight AI-driven assets. The proposed Kunlunxin spin-off could be viewed in context of prior AI milestones, such as Q3 AI revenues of RMB10 billion and Apollo Go expansions. Investors may reassess valuation of AI chips versus consolidated BIDU. However, past events show instances where enthusiasm faded, so sustainability would depend on final spin-off terms and regulatory progress.

Key Terms

spin-off financial

"announced its proposed spinoff and separate listing of the H shares"

A spin-off happens when a company creates a new, independent business by separating part of itself, like splitting off a division into its own company. This often happens so the new company can focus better on its own goals or attract different investors. It matters because it can lead to more growth opportunities and clearer focus for both companies.

H shares financial

"separate listing of the H shares of Kunlunxin (Beijing) Technology"

H shares are the ordinary shares of companies incorporated in mainland China that are listed and traded on the Hong Kong stock market. They matter to investors because they provide a way to buy into Chinese companies under Hong Kong’s market rules and currency, which can affect liquidity, pricing and access for international investors—think of them as the version of a domestic stock that’s packaged for global buyers.

Main Board financial

"on the Main Board of the Hong Kong Stock Exchange"

The main board is the primary segment of a stock exchange where larger, more established companies are listed under stricter rules and disclosure requirements. For investors it matters because companies on the main board tend to be easier to buy or sell, provide more public information and regulatory oversight, and are generally seen as lower risk than firms on secondary or junior markets—think of a main stage versus a side stage at a concert.

China Securities Regulatory Commission regulatory

"completion of the filing with the China Securities Regulatory Commission"

China Securities Regulatory Commission (CSRC) is the national government agency that oversees and enforces rules for China’s stock, bond and futures markets. Think of it as the market’s referee and rulemaker: it approves offerings, sets disclosure and conduct standards, and disciplines bad actors. Investors watch the CSRC because its decisions and regulations affect market access, transparency and the perceived safety of investing in Chinese securities.

listing application regulatory

"A listing application form has been submitted to the Hong Kong"

A listing application is a formal request filed with a stock exchange or regulator asking permission for a company’s shares to be traded publicly. It matters to investors because approval opens a new market for buying and selling the stock, increases visibility and regulatory oversight, and often brings detailed financial disclosures; like applying for a store permit before opening, the outcome affects when and how easily investors can trade and value the shares.

AI-generated analysis. Not financial advice.

BEIJING, Jan. 1, 2026 /PRNewswire/ -- Baidu, Inc. (NASDAQ: BIDU and HKEX: 9888 (HKD Counter) and 89888 (RMB Counter)), ("Baidu" or the "Company"), a leading AI company with strong Internet foundation, today announced its proposed spinoff and separate listing of the H shares of Kunlunxin (Beijing) Technology Co., Ltd. ("Kunlunxin"), a non-wholly owned subsidiary of the Company, on the Main Board of the Hong Kong Stock Exchange (the "Proposed Spin-off"). The Proposed Spin-off aims to independently showcase Kunlunxin's value, attract investors focused on the AI chip sector, and leverage its standalone listing to enhance its market profile, broaden financing channels, and better align management accountability with performance. This also supports the effort to unlock the value of Baidu's AI-powered businesses.

A listing application form has been submitted to the Hong Kong Stock Exchange (the "HKEX") on a confidential basis to apply for the listing of, and permission to deal in, the H shares of Kunlunxin on the HKEX. Following completion of the Proposed Spin-off, it is expected that Kunlunxin will remain as a subsidiary of the Company.

Details of the Proposed Spin-off have not yet been finalized. The Proposed Spin-off is subject to, among others, the obtaining of approvals from the HKEX, the completion of the filing with the China Securities Regulatory Commission, and the final decisions of the Company and Kunlunxin. There is no assurance that the Proposed Spin-off will take place or when it may take place.

This announcement shall not constitute an offer to sell or a solicitation of an offer to purchase any securities, in the United States or elsewhere, and shall not constitute an offer, solicitation or sale of the securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful. 

About Baidu

Founded in 2000, Baidu's mission is to make the complicated world simpler through technology. Baidu is a leading AI company with strong Internet foundation, trading on NASDAQ under "BIDU" and HKEX under "9888". One Baidu ADS represents eight Class A ordinary shares.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Baidu may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC"), in announcements made on the website of the Hong Kong Stock Exchange, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about Baidu's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Baidu's growth strategies; its future business development, including development of new products and services; its ability to attract and retain users and customers; competition in the Chinese Internet search and newsfeed market; competition for online marketing customers; changes in the Company's revenues and certain cost or expense items as a percentage of its revenues; the outcome of ongoing, or any future, litigation or arbitration, including those relating to intellectual property rights; the expected growth of the Chinese-language Internet search and newsfeed market and the number of Internet and broadband users in China; Chinese governmental policies relating to the Internet and Internet search providers, and general economic conditions in China and elsewhere. Further information regarding these and other risks is included in the Company's annual report on Form 20-F and other documents filed with the SEC, and announcements on the website of the Hong Kong Stock Exchange. Baidu does not undertake any obligation to update any forward-looking statement, except as required under applicable law. All information provided in this announcement is as of the date of the announcement, and Baidu undertakes no duty to update such information, except as required under applicable law.

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SOURCE Baidu, Inc.

FAQ

What did Baidu (BIDU) announce on January 2, 2026 about Kunlunxin?

Baidu announced a proposed spin-off and separate listing of Kunlunxin H shares on the HKEX and said a confidential listing application has been submitted.

Will Kunlunxin remain part of Baidu after the Proposed Spin-off?

The announcement says Kunlunxin is expected to remain a subsidiary of Baidu following completion.

What approvals are required for the Kunlunxin HKEX listing of BIDU's subsidiary?

The Proposed Spin-off is subject to HKEX approval, completion of the China Securities Regulatory Commission filing, and final decisions by both companies.

Does Baidu guarantee the Kunlunxin spin-off and listing will happen?

No; the company explicitly states there is no assurance the Proposed Spin-off will take place or on when it may occur.

How might the Kunlunxin spin-off affect BIDU shareholders?

Baidu says the spin-off aims to unlock value, attract AI chip-focused investors, and broaden financing channels, but specifics and shareholder effects were not provided.

Where was Baidu's Kunlunxin listing application submitted and how was it filed?

A listing application form for Kunlunxin H shares was submitted to the Hong Kong Stock Exchange on a confidential basis.