This article only represents the author's own views.
An AI fever swept the business world last year, with products springing up in sectors from education to office work. The healthcare industry was not immediately caught up in the craze, but things are starting to heat up there too. Chinese Artificial Intelligence (AI) company iFlytek (002230.SZ) announced last Tuesday it was planning to hive off its healthcare arm and list the business on the Hong Kong Stock Exchange. It said the unit, Xunfei Healthcare Technology Co. Ltd., would invest the cash in expanding its AI-enhanced medical services.
At present, iFlytek holds 52.47% of Xunfei Healthcare equity, with group Chairman Liu Qingfeng and USTC Holdings as the controlling shareholders. The announcement said Xunfei Healthcare will issue no more than around 20.09 million shares, or 15% of the enlarged share capital, rising to a maximum of approximately 23.1 million new shares if the over-allotment option is exercised. Therefore, iFlytek will keep control of the healthcare enterprise even after the spinoff.