Chinese AI Solution Provider iFLYTEK to Spin off Subsidiary iFLYTEK Medical for HK IPO

Technology Author: Muriel Meng Editor: Yiru Qian Jan 11, 2024 06:00 PM (GMT+8)

The intelligent and digital transformation of medical health field has accelerated, increasing the market potential of Artificial intelligence + medical industry.


Januray 9th, iFLYTEK has announced its plan to spin off its subsidiary, iFLYTEK Medical Technology Co., Ltd. (referred to as "iFLYTEK Medical"), and list it on the Main Board of the Hong Kong Stock Exchange.

The initial offering size of iFLYTEK Medical will be up to 15% of its post-offering total share capital, which corresponds to a maximum of 20,089,900 shares. Additionally, the global coordinator/bookrunner will be granted an overallotment option of up to 15% of the initial H-share offering size. Even after the spin-off and listing, iFLYTEK will retain control of iFLYTEK Medical.

iFLYTEK Medical, established in 2016, aims to create an AI-assisted diagnostic tool for doctors and an AI health assistant for individuals. It utilizes core technologies such as medical semantic computing, text understanding, knowledge reasoning, and data mining to develop AI medical solutions that cover the entire medical process. This includes disease warning, early screening, diagnosis, treatment and efficacy evaluation, as well as post-diagnosis and chronic disease management, catering to the needs of various stakeholders in the healthcare industry.

In October 2023, iFLYTEK released the iFLYTEK Starfire Cognitive Model V3.0, which surpassed ChatGPT overall. The iFLYTEK Starfire Medical Cognitive Model outperformed GPT-4 in six core capabilities, including medical knowledge-based question answering, complex language understanding in the medical field, and generating professional medical documents. The goal of the iFLYTEK Starfire Medical Cognitive Model is to become everyone's AI health assistant.

Financially, iFLYTEK Medical's revenue for the years 2020 to 2022 amounted to CNY 321 million, CNY 356 million, and CNY 494 million, respectively. The net profit attributable to the parent company was CNY 7.61 million, CNY -79.73 million, and CNY -204 million, respectively.

In addition to the internal restructuring, iFLYTEK is also expanding globally.

Specifically, sales of iFLYTEK's intelligent translation software and voice recorders in Japan and South Korea have continued to rise, reaching 50,000 units in 2022 and exceeding 300,000 units in 2023. The iFLYTEK AI open platform has expanded to 17 customers, with a call volume of 60 million, covering countries such as Japan, South Korea, the Middle East, and Singapore. The intelligent automotive business has helped seven domestic car manufacturers expand overseas, with 46,000 vehicles reaching the United Kingdom, Austria, Spain, and Russia.

In June 2023, iFLYTEK held a significant launch event in Singapore, announcing it as the first stop of its global expansion strategy and embarking on a new journey towards globalizing AI. In November 2023, iFLYTEK appeared at the China (Poland) Trade Fair in Poland, showcasing its consumer-oriented products for international markets. It was also invited to participate in the Asian Excellence Impact Awards in Hong Kong, where it received the Outstanding Scientific Contribution Award. Going forward, iFLYTEK will continue to explore international markets and deepen its global strategy.