On the evening of January 9, iFLYTEK announced that the company intends to spin off its holding subsidiary, iFLYTEK Medical, to be listed on the main board of the Hong Kong Stock Exchange. According to the announcement, the scale of iFLYTEK Medical's issuance does not exceed 15% of the total share capital after the issuance, and the issuance method is Hong Kong public offering and international placement of new shares. After the completion of the spin-off, iFLYTEK will still maintain control of iFLYTEK Medical, which will remain a holding subsidiary within the scope of the company's consolidated statements.
According to reports, with the mission of creating "AI diagnosis and treatment assistant for every doctor and AI health assistant for everyone", iFLYTEK Medical has built an artificial intelligence medical solution system based on the world's leading core technologies such as medical semantic computing, text understanding, knowledge reasoning, and data mining, aiming at the wide range of medical practitioners such as primary medical institutions, hospitals, patients and residents, and realizing the coverage of the whole medical process from disease early warning, early screening, diagnosis, treatment and efficacy evaluation, post-diagnosis and chronic disease management.
On October 24, 2023, the iFLYTEK Xinghuo medical model was officially released, and the "Xunfei Xiaoyi" APP equipped with the Xunfei Xinghuo medical model was also released. On May 6 last year, iFLYTEK released the iFLYTEK Xinghuo cognitive model, why did it not release the medical model until October 24 last year? Liu Qingfeng said that because medical treatment needs to be treated very seriously, as early as 2017, iFLYTEK intelligent medical assistant has passed the national medical practitioner qualification examination, ranking more than 96.3% of human candidates, first of all, to provide help to doctors in grassroots hospitals and grade hospitals, to help become a doctor's AI diagnosis and treatment assistant, on this basis, iFLYTEK began to face families, to create everyone's AI health assistant.
In the announcement, iFLYTEK said that there are significant differences between the listed company and its subsidiaries (except for the proposed spin-off entities and assets) and iFLYTEK Medical in terms of main business, application scenarios, market scope, customer groups, etc., and at the same time, iFLYTEK Medical and the listed company and its subsidiaries (except for the proposed spin-off entities and assets) maintain a relatively high degree of independence, and the spin-off will not have a substantial impact on the continued operation of the listed company.
iFLYTEK is the controlling shareholder of iFLYTEK Medical, and Liu Qingfeng and HKUST Holdings are the actual controllers of iFLYTEK Medical.
iFLYTEK Medical's shareholding structure
After the completion of the spin-off, iFLYTEK Medical will have an independent financing platform and deepen its main business, which will help enhance iFLYTEK's ability to carry out technical reserves and market development in the medical industry, and enhance the company's overall profitability in the future by enhancing its comprehensive market competitiveness.
According to the announcement, iFLYTEK Medical's revenue in 2020, 2021, and 2022 will be 320 million yuan, 356 million yuan, and 494 million yuan respectively, and the net loss will be 19.23 million yuan, 103 million yuan, and 260 million yuan respectively, and the net profit after deducting non-profits will be 14.28 million yuan, -83.56 million yuan, and -216 million yuan respectively.
It is worth noting that iFLYTEK reminded in the announcement that the spin-off of the listed company needs to be approved by relevant parties and requires a certain period of time to complete, during which the stock market price may fluctuate, which will bring certain risks to investors. At the same time, due to the impact of many factors, there is a certain uncertainty in the working schedule of the spin-off listing, and there is a risk that the spin-off cannot be carried out on schedule.
As of the close of trading on January 9, iFLYTEK had a market value of 93 billion yuan. In the 20 trading days from December 8, 2023 to the present, the closing price of iFLYTEK stock has fallen by 17.42%.
According to the financial report of iFLYTEK for the third quarter of 2023, the operating income in the third quarter of last year was 4.772 billion yuan, a year-on-year increase of 2.89%, and the net profit attributable to the parent company was 25.7901 million yuan, a year-on-year decrease of 81.86%. As for the reason for the sharp decline in net profit, iFLYTEK explained in the financial report that the main reason is the company's firm investment in general artificial intelligence cognitive models.
In the first three quarters of 2023, iFLYTEK's revenue was 12.614 billion yuan, a year-on-year decrease of 0.37%, the net profit attributable to the parent company was 99.3621 million yuan, a year-on-year decrease of 76.36%, and the basic earnings per share was 0.04 yuan.
Nandu reporter Ma Ningning sent from Shanghai