CXI Secures Control of Chinese AI Firm, Begins Business Restructuring

KOSDAQ-listed CXI is securing a controlling stake in a Chinese enterprise AI company and moving to restructure its business through new ventures. The strategy is to add an AI company that is already generating revenue and operating profit to its consolidated results and develop it into a new growth engine.

CXI said it decided on October 13 to invest approximately $45.37 million (about KRW 60.6 billion) to acquire a 55% stake in AIDT Technologies Limited and take control of the company.

AIDT Technologies Limited primarily collects AI data and develops enterprise AI software. In the first half of 2026 (January-June), it recorded revenue of $36.97 million (about KRW 53.6 billion) and operating profit of $7.24 million (about KRW 10.5 billion). As AIDT Technologies Limited's results are expected to be reflected in CXI's consolidated results going forward, changes to the company's revenue and earnings structure are also anticipated.

Growth has continued as well. In the first half of 2026, AIDT Technologies Limited's revenue, operating profit, and net profit increased 93.5%, 144.0%, and 114%, respectively, from the same period last year. Its operating margin in 2026 was 19.6%, while its net margin was 16.8%, up 4.1 percentage points and 1.6 percentage points, respectively, from the previous year. The company said its earnings-generating capacity is strengthening as profitability improves alongside revenue growth.

CXI emphasized that this acquisition differs from a typical move into a new business. Rather than developing AI technology in-house and building a new business from scratch, it is acquiring control of a company that already has an established business base and track record, enabling immediate integration of the business and its results.

AIDT Technologies Limited is expanding its business from data collection and processing into data governance, AI model training and fine-tuning, and AI application services for specific industries. Its structure is based on a so-called "Data-to-AI" value chain that runs from data to AI services, providing vertical AI solutions tailored to business operations in specific industries.

Its operations are not limited to China. The company conducts AI data collection and enterprise AI software businesses in mainland China, Taiwan, Singapore, and Malaysia.

Market growth potential is another area of focus for CXI. According to a Chinese market research institution, China's enterprise AI market is forecast to grow at an average annual rate of 43.8% from 2025 to 2030. Policy support from the Chinese government, the wider adoption of AI by businesses, and advances in related technologies such as agentic AI are expected to drive market expansion.

An external evaluation agency also offered a positive outlook on AIDT Technologies Limited's growth potential. The consolidated revenue of AIDT and its subsidiaries was forecast to reach approximately $52.07 million in 2027, with an average annual growth rate of about 40% expected to continue through 2029.

CXI plans to make AI and data businesses a new growth pillar following its acquisition of a controlling stake. The company aims to improve both its earnings profile and business portfolio over the medium to long term by integrating a new business with strong growth prospects and profitability alongside its existing operations.

A CXI official said, "We view this transaction as an important turning point in the transformation of our business portfolio. Over the medium to long term, we plan to improve both the fundamental value and earnings profile of the listed company, and to build a foundation for the market to reassess our corporate value."

This content was produced with the assistance of AI translation services.