(Yicai) Jan. 10 -- IFlytek, a Chinese developer of artificial intelligence technologies, will spin off its AI medical service business for listing on the Hong Kong Stock Exchange to maintain the leading position in the field of AI technologies for medical use and improve its influence in the international market.

Xunfei Healthcare Technology will issue up to 20.1 million shares to global investors, which will be no more than 15 percent of the company’s total shares after the issuance, Hefei, Anhui province-based iFlytek said in a statement yesterday. The new share issuing could increase to as much as 23.1 million if the greenshoe option is fully exercised. 

IFlytek did not disclose the issue price and date of the planned initial public offering but mentioned that it would remain the controller of Xunfei Health after the IPO.

Once the spin-off and listing are completed, Xunfei Healthcare will adopt management methods more suitable for its own business features, the parent company noted, adding that the move will also help iFlytek straighten out its business structure to advance the upgrade of general AI large models.

Xunfei Healthcare is an AI service provider that aims to build an AI clinical assistant for every doctor and an AI health assistant for every person. Its AI medical solutions are committed to offering services such as disease early warning and screening, diagnosis, treatment, efficacy evaluation, post-diagnosis, and chronic disease management, iFlytek said.

Xunfei Healthcare reported CNY494 million (USD69.3 million) in operating revenue in 2022, iFlytek’s statement showed. However, the company has not yet turned profitable. It logged a CNY204 million net loss in 2022, compared with a net loss of CNY79.7 million in 2021.

iFlytek’s shares [SHE: 002230] were trading down 0.5 percent at CNY39.96 (USD5.59) as of lunch break in Shenzhen today. The stock jumped nearly 42 percent last year.

Editor: Futura Costaglione