(Yicai Global) March 4 -- Xgimi Technology’s shares sank after the Chinese projector maker said two units of internet giant Baidu plan to cut their stakes in the company by more than 36 percent.

Xgimi [SHA: 688696] closed down 7 percent at CNY401.04 (USD63.44), giving it a market capitalization of CNY20.5 billion (USD3.2 billion).

Beijing Baidu Netcom Science and Technology and Beijing Baidu Biwei Enterprise Management Center intend to sell up to 2.1 million Xgimi shares, equal to 4.3 percent of its outstanding stock, the Chengdu-based firm announced yesterday.

The two Baidu units acquired 5.8 million shares, accounting for 11.6 percent of the total, before Xgimi went public in Shanghai last year. After the transaction is completed, Baidu Netcom will own 7.3 percent, remaining Xgimi’s second-largest shareholder after company Chairman Zhong Bo, while Baidu Biwei will no longer hold any shares.

The sale will result in an about CNY572 million (USD90.5 million) profit for Beijing-based Baidu, according to Xgimi’s closing price today.

Founded in 2013, Xgimi makes smart projection devices and laser televisions. It went public on Shanghai’s Nasdaq-like Star Market last March with an issue price of CNY133.73 per share.

Xgimi’s net profit soared 82 percent to CNY488.7 million last year, per its earnings report released on Feb. 25. Revenue rose 43 percent to CNY4 billion (USD632.8 million).

Editor: Futura Costaglione