This article only represents the author's own views.
The “AI halo” is proving quite a draw for many traditional companies these days, attracted by the technology’s potential to transform them from their otherwise ordinary roots.The latest to jump on that bandwagon is China Qidian Guofeng Holdings Ltd. (1280.HK), which this month announced it had signed a letter of intent to acquire an AI technology company. The news had the desired effect the next day, as Qidian Guofeng’s shares jumped nearly 30%, before paring those gains to close up a more modest 7.6%.
With a market capitalization of less than HK$10 billion ($127 million), Qidian Guofeng is a bit of a jack-of-all-trades, mainly engaged in home appliance and traditional Chinese liquor sales, as well as education training services. Home appliance sales were its biggest breadwinner last year, contributing 61.5% of revenue, followed by liquor at 23.1% and education training services at 15.4%. Such core activities give little or no indication of any direct connection to or expertise in the AI or information technology it’s now pursuing with the latest acquisition plan.