Technology

Baidu Announces Second Quarter 2024 Results

Published

1 month ago

August 22, 2024

BEIJING, Aug. 22, 2024 /PRNewswire/ — Baidu, Inc. (NASDAQ: BIDU and HKEX: 9888 (HKD Counter) and 89888 (RMB Counter)), (“Baidu” or the “Company”), a leading AI company with strong Internet foundation, today announced its unaudited financial results for the second quarter ended June 30, 2024.

“AI Cloud continued to accelerate in the second quarter, offsetting the ongoing macro headwinds for online marketing revenue and resulting in modestly positive topline growth for Baidu Core. Operationally, we fast-tracked the renovation of Baidu search, which we believe will drive long-term success despite the short-term impact on monetization. We also achieved new breakthroughs with Apollo Go, which now offers 100% fully driverless ride-hailing services in practically the entire Wuhan municipality, and has started scalable testing of the latest RT6 vehicles,” said Robin Li, Co-founder and CEO of Baidu. “Gradually, the transformative impact of Gen-AI and foundation models is becoming more tangible in business and everyday life. Throughout all layers of our AI technology stack and with the rapid adoption of applications built on top of ERNIE, we are scaling AI to address real-world problems and generate substantial value both for external customers and our own product portfolio.”

“As we speeded up the AI-native transformation of our products in the second quarter, we continued to optimize our operations and maintained a healthy margin,” said Rong Luo, CFO of Baidu. “For AI Cloud in particular, we expect growth to maintain a strong momentum.”

Second Quarter 2024 Financial Highlights[1]

Baidu, Inc.

(In millions except per

ADS, unaudited)

2023

2024

YOY

QOQ

RMB

US$

Total revenues

34,056

31,513

33,931

4,669

(0 %)

8 %

Operating income

5,210

5,484

5,944

818

14 %

8 %

Operating income (non-GAAP) [2]

7,334

6,673

7,500

1,032

2 %

12 %

Net income to Baidu

5,210

5,448

5,488

755

5 %

1 %

Net income to Baidu (non-GAAP) [2]

7,998

7,011

7,396

1,018

(8 %)

5 %

Diluted earnings per ADS

14.17

14.91

15.01

2.07

6 %

1 %

Diluted earnings per ADS (non-GAAP) [2]

22.55

19.91

21.02

2.89

(7 %)

6 %

Adjusted EBITDA [2]

9,116

8,244

9,147

1,259

0 %

11 %

Adjusted EBITDA margin

27 %

26 %

27 %

Baidu Core

(In millions, unaudited)

2023

2024

YOY

QOQ

RMB

US$

Total revenues

26,407

23,803

26,687

3,672

1 %

12 %

Operating income

4,568

4,538

5,608

772

23 %

24 %

Operating income (non-GAAP) [2]

6,516

5,586

7,005

964

8 %

25 %

Net income to Baidu Core

5,012

5,150

5,462

752

9 %

6 %

Net income to Baidu Core (non-GAAP) [2]

7,694

6,628

7,290

1,003

(5 %)

10 %

Adjusted EBITDA[2]

8,229

7,118

8,617

1,186

5 %

21 %

Adjusted EBITDA margin

31 %

30 %

32 %

[1] Unless otherwise noted, RMB to USD was converted at an exchange rate of RMB7.2672 as of June 28, 2024,
as set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System. Translations
are provided solely for the convenience of the reader.

[2] Non-GAAP measures are defined in the Non-GAAP Financial Measures section (see also “Reconciliations of
Non-GAAP Financial Measures to the Nearest Comparable GAAP Measures” for more details).

Operational Highlights

Corporate

Baidu expanded the ERNIE family of models with the launch of ERNIE 4.0 Turbo in June 2024, offering superior capabilities for typical use cases, and designed to run faster and at lower cost compared to ERNIE 4.0.Baidu returned US$301 million to shareholders since the beginning of Q2 2024, bringing the cumulative repurchase to about US$1.2 billion under the 2023 share repurchase program.Baidu earned a position in the China edition of the S&P Global Sustainability Yearbook, in recognition of its exceptional ESG performance. The selection stems from a comprehensive evaluation of 1,700 Chinese companies as part of the S&P Global 2023 Corporate Sustainability Assessment, underscoring Baidu’s sustainability practices.

AI Cloud

PaddlePaddle and ERNIE developer community grew to 14.7 million in June 2024.

Intelligent Driving

Apollo Go, Baidu’s autonomous ride-hailing service, provided about 899K rides in the second quarter of 2024, up 26% year over year. As of July 28, 2024, the cumulative rides provided to the public by Apollo Go surpassed 7 million.On June 19, Apollo Go started offering 100% fully driverless operations in practically the entire Wuhan municipality, its largest operational city, marking a significant milestone.The sixth-generation of our autonomous vehicle, the RT6, is now undergoing scalable testing.

Mobile Ecosystem

In June 2024, Baidu App’s MAUs reached 703 million, up 4% year over year.Managed Page accounted for 51% of Baidu Core’s online marketing revenue in the second quarter of 2024.

Second Quarter 2024 Financial Results

Total revenues were RMB33.9 billion ($4.67 billion), which was basically flat from last year.

Revenue from Baidu Core was RMB26.7 billion ($3.67 billion), increasing 1% year over year; online marketing revenue was RMB19.2 billion ($2.64 billion), decreasing 2% year over year, and non-online marketing revenue was RMB7.5 billion ($1.03 billion), up 10% year over year, mainly driven by AI Cloud business.Revenue from iQIYI was RMB7.4 billion ($1.02 billion), decreasing 5% year over year.

Cost of revenues was RMB16.4 billion ($2.26 billion), increasing 1% year over year, primarily due to an increase in traffic acquisition costs and costs related to AI Cloud business.

Selling, general and administrative expenses were RMB5.7 billion ($784 million), decreasing 9% year over year, primarily due to a decrease in expected credit losses, channel spending and promotional marketing expenses and personnel related expenses.

Research and development expenses were RMB5.9 billion ($810 million), decreasing 8% year over year, primarily due to a decrease in personnel related expenses.

Operating income was RMB5.9 billion ($818 million). Baidu Core operating income was RMB5.6 billion ($772 million), and Baidu Core operating margin was 21%. Non-GAAP operating income was RMB7.5 billion ($1.03 billion). Non-GAAP Baidu Core operating income was RMB7.0 billion ($964 million), and non-GAAP Baidu Core operating margin was 26%.

Total other income, net was RMB771 million ($106 million), decreasing 44% year over year, primarily due to a decrease in net foreign exchange gain and disposal gain, partially offset by the decrease in fair value loss and impairment loss from long-term investments.

Income tax expense was RMB1.1 billion ($156 million), compared to RMB1.3 billion in the same period last year.

Net income attributable to Baidu was RMB5.5 billion ($755 million), and diluted earnings per ADS was RMB15.01 ($2.07). Net income attributable to Baidu Core was RMB5.5 billion ($752 million), and net margin for Baidu Core was 20%. Non-GAAP net income attributable to Baidu was RMB7.4 billion ($1.02 billion). Non-GAAP diluted earnings per ADS was RMB21.02 ($2.89). Non-GAAP net income attributable to Baidu Core was RMB7.3 billion ($1.00 billion), and non-GAAP net margin for Baidu Core was 27%.

Adjusted EBITDA was RMB9.1 billion ($1.26 billion) and adjusted EBITDA margin was 27%. Adjusted EBITDA for Baidu Core was RMB8.6 billion ($1.19 billion) and adjusted EBITDA margin for Baidu Core was 32%.

As of June 30, 2024, cash, cash equivalents, restricted cash and short-term investments were RMB162.0 billion ($22.29 billion), and cash, cash equivalents, restricted cash and short-term investments excluding iQIYI were RMB155.0 billion ($21.32 billion). Free cash flow was RMB6.3 billion ($862 million), and free cash flow excluding iQIYI was RMB5.9 billion ($810 million).

Conference Call Information

Baidu’s management will hold an earnings conference call at 8.00 AM on Aug 22, 2024, U.S. Eastern Time (8.00 PM on Aug 22, 2024, Beijing Time).

Please register in advance of the conference call using the link provided below. It will automatically direct you to the registration page of “Baidu Inc. Q2 2024 Earnings Conference Call”. Please follow the steps to enter your registration details, then click “Register”. Upon registering, you will then be provided with the dial-in number, the passcode, and your unique access PIN. This information will also be emailed to you as a calendar invite.

For pre-registration, please click:
https://s1.c-conf.com/diamondpass/10040402-jgu7y6.html

In the 10 minutes prior to the call start time, you may use the conference access information (including dial-in number(s), the passcode and unique access PIN) provided in the calendar invite that you have received following your pre-registration.

Additionally, a live and archived webcast of this conference call will be available at https://ir.baidu.com.

About Baidu

Founded in 2000, Baidu’s mission is to make the complicated world simpler through technology. Baidu is a leading AI company with strong Internet foundation, trading on NASDAQ under “BIDU” and HKEX under “9888”. One Baidu ADS represents eight Class A ordinary shares.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. Among other things, Baidu’s and other parties’ strategic and operational plans, contain forward-looking statements. Baidu may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in announcements made on the website of The Stock Exchange of Hong Kong Limited (the “Hong Kong Stock Exchange”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about Baidu’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Baidu’s growth strategies; its future business development, including development of new products and services; its ability to attract and retain users and customers; competition in the Chinese Internet search and newsfeed market; competition for online marketing customers; changes in the Company’s revenues and certain cost or expense items as a percentage of its revenues; the outcome of ongoing, or any future, litigation or arbitration, including those relating to intellectual property rights; the expected growth of the Chinese-language Internet search and newsfeed market and the number of Internet and broadband users in China; Chinese governmental policies relating to the Internet and Internet search providers, and general economic conditions in China and elsewhere. Further information regarding these and other risks is included in the Company’s annual report on Form 20-F and other documents filed with the Securities and Exchange Commission, and announcements on the website of the Hong Kong Stock Exchange. Baidu does not undertake any obligation to update any forward-looking statement, except as required under applicable law. All information provided in this press release and in the attachments is as of the date of the press release, and Baidu undertakes no duty to update such information, except as required under applicable law.

Non-GAAP Financial Measures

To supplement Baidu’s consolidated financial results presented in accordance with GAAP, Baidu uses the following non-GAAP financial measures: non-GAAP operating income, non-GAAP operating margin, non-GAAP net income attributable to Baidu, non-GAAP net margin, non-GAAP diluted earnings per ADS, adjusted EBITDA, adjusted EBITDA margin and free cash flow. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP.

Baidu believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance and liquidity by excluding certain items that may not be indicative of its recurring core business operating results, such as operating performance excluding non-cash charges or non-operating in nature. The Company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing its performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to Baidu’s historical performance and liquidity. The Company believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. A limitation of using these non-GAAP financial measures is that these non-GAAP measures exclude certain items that have been and will continue to be for the foreseeable future a significant component in the Company’s results of operations. These non-GAAP financial measures presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to the Company’s data.

Non-GAAP operating income represents operating income excluding share-based compensation expenses, and amortization and impairment of intangible assets resulting from business combinations.

Non-GAAP net income attributable to Baidu represents net income attributable to Baidu excluding share-based compensation expenses, amortization and impairment of intangible assets resulting from business combinations, disposal gain, impairment of long-term investments, and fair value gain (loss) of long-term investments, adjusted for related income tax effects. Baidu’s share of equity method investments for these non-GAAP reconciling items, amortization and impairment of intangible assets not on the investees’ books, accretion of their redeemable non-controlling interests, and the gain or loss associated with the issuance of shares by the investees at a price higher or lower than the carrying value per share, adjusted for related income tax effects, are also excluded.

Non-GAAP diluted earnings per ADS represents diluted earnings per ADS calculated by dividing non-GAAP net income attributable to Baidu, by the weighted average number of ordinary shares expressed in ADS. Adjusted EBITDA represents operating income excluding depreciation, amortization and impairment of intangible assets resulting from business combinations, and share-based compensation expenses.

For more information on non-GAAP financial measures, please see the tables captioned “Reconciliations of non-GAAP financial measures to the nearest comparable GAAP measure.”

Baidu, Inc.

Condensed Consolidated Statements of Income

(In millions except for per share (or ADS) information, unaudited)

Three Months Ended

Six Months Ended

June 30,

March 31,

June 30,

2023

2024

2023

2024

RMB

US$(2)

RMB

US$(2)

Revenues:

Online marketing services

21,081

18,490

20,625

2,838

39,053

39,115

5,382

Others

12,975

13,023

13,306

1,831

26,147

26,329

3,623

Total revenues

34,056

31,513

33,931

4,669

65,200

65,444

9,005

Costs and expenses:

Cost of revenues(1)

16,167

15,291

16,398

2,257

31,319

31,689

4,361

Selling, general and administrative(1)

6,298

5,375

5,700

784

11,887

11,075

1,524

Research and development(1)

6,381

5,363

5,889

810

11,804

11,252

1,548

Total costs and expenses

28,846

26,029

27,987

3,851

55,010

54,016

7,433

Operating income

5,210

5,484

5,944

818

10,190

11,428

1,572

Other income:

Interest income

1,948

2,091

1,993

274

3,863

4,084

562

Interest expense

(817)

(766)

(742)

(102)

(1,621)

(1,508)

(208)

Foreign exchange gain, net

1,176

401

1,070

494

Share of losses from equity method investments

(383)

(205)

(119)

(16)

(431)

(324)

(45)

Others, net

(555)

(275)

(454)

(63)

1,083

(729)

(100)

Total other income, net

1,369

1,246

771

106

3,964

2,017

277

Income before income taxes

6,579

6,730

6,715

924

14,154

13,445

1,849

Income tax expense

1,270

883

1,131

156

2,463

2,014

277

Net income

5,309

5,847

5,584

768

11,691

11,431

1,572

Net income attributable to noncontrolling interests

399

656

495

Net income attributable to Baidu

5,210

5,448

5,488

755

11,035

10,936

1,504

Earnings per ADS (1 ADS representing 8 Class A ordinary shares):

-Basic

14.34

14.97

15.11

2.08

30.55

30.12

4.14

-Diluted

14.17

14.91

15.01

2.07

30.05

29.98

4.13

Earnings per share for Class A and Class B ordinary shares:

-Basic

1.79

1.87

1.89

0.26

3.82

3.77

0.52

-Diluted

1.77

1.86

1.88

0.26

3.76

3.74

0.51

Weighted average number of Class A and Class B ordinary shares outstanding (in millions):

-Basic

2,804

2,796

2,801

2,800

-Diluted

2,834

2,816

2,804

2,836

2,810

(1) Includes share-based compensation expenses as follows:

Cost of revenues

194

108

146

292

254

Selling, general and administrative

446

417

385

909

802

110

Research and development

1,403

618

981

135

2,231

1,599

220

Total share-based compensation expenses

2,043

1,143

1,512

208

3,432

2,655

365

(2) All translations from RMB to U.S. dollars are made at a rate of RMB7.2672 to US$1.00, the exchange rate in effect as of June 28, 2024 as set forth in the H.10 statistical release of The Board of Governors
of the Federal Reserve System.

Baidu, Inc.

Condensed Consolidated Balance Sheets

(In millions, unaudited)

December 31,

June 30,

2023

2024

RMB

US$

ASSETS

Current assets:

Cash and cash equivalents

25,231

43,534

5,990

Restricted cash

11,503

11,646

1,603

Short-term investments, net

168,670

106,821

14,699

Accounts receivable, net

10,848

11,112

1,529

Amounts due from related parties

1,424

1,396

192

Other current assets, net

12,579

12,757

1,756

Total current assets

230,255

187,266

25,769

Non-current assets:

Fixed assets, net

27,960

29,154

4,012

Licensed copyrights, net

6,967

6,914

951

Produced content, net

13,377

14,320

1,970

Intangible assets, net

881

812

112

Goodwill

22,586

3,108

Long-term investments, net

47,957

46,193

6,356

Long-term time deposits and held-to-maturity investments

24,666

72,497

9,976

Amounts due from related parties

195

212

Deferred tax assets, net

2,100

2,342

322

Operating lease right-of-use assets

10,851

10,919

1,503

Other non-current assets

18,964

22,312

3,071

Total non-current assets

176,504

228,261

31,410

Total assets

406,759

415,527

57,179

LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY

Current liabilities:

Short-term loans

10,257

12,514

1,722

Accounts payable and accrued liabilities

37,717

37,988

5,227

Customer deposits and deferred revenue

14,627

14,038

1,932

Deferred income

306

291

Long-term loans, current portion

Convertible senior notes, current portion

2,802

2,892

398

Notes payable, current portion

6,029

7,986

1,099

Amounts due to related parties

1,603

1,831

252

Operating lease liabilities

3,108

3,196

440

Total current liabilities

76,451

80,765

11,114

Non-current liabilities:

Deferred income

200

287

Deferred revenue

481

520

Amounts due to related parties

Long-term loans

14,223

14,859

2,045

Notes payable

34,990

27,860

3,834

Convertible senior notes

8,144

8,408

1,157

Deferred tax liabilities

2,725

2,940

405

Operating lease liabilities

5,040

5,056

696

Other non-current liabilities

1,820

1,827

250

Total non-current liabilities

67,700

61,824

8,507

Total liabilities

144,151

142,589

19,621

Redeemable noncontrolling interests

9,465

10,107

1,391

Equity

Total Baidu shareholders’ equity

243,626

252,769

34,782

Noncontrolling interests

9,517

10,062

1,385

Total equity

253,143

262,831

36,167

Total liabilities, redeemable noncontrolling interests, and equity

406,759

415,527

57,179

Baidu, Inc.

Selected Information

(In millions, unaudited)

Three months ended
June 30, 2023 (RMB)

Three months ended
March 31, 2024 (RMB)

Three months ended
June 30, 2024 (RMB)

Three months ended
June 30, 2024 (US$)

Baidu
Core

iQIYI

Elim &
adj(2)

Baidu,
Inc.

Baidu
Core

iQIYI

Elim &
adj(2)

Baidu,
Inc.

Baidu
Core

iQIYI

Elim &
adj(2)

Baidu,
Inc.

Baidu
Core

iQIYI

Elim &
adj(2)

Baidu,
Inc.

Total revenues

26,407

7,802

(153)

34,056

23,803

7,927

(217)

31,513

26,687

7,439

(195)

33,931

3,672

1,024

(27)

4,669

YOY

1 %

(5 %)

(0 %)

QOQ

12 %

(6 %)

8 %

Costs and expenses:

Cost of revenues (1)

10,553

5,774

(160)

16,167

9,839

5,631

(179)

15,291

10,888

5,678

(168)

16,398

1,498

781

(22)

2,257

Selling, general and administrative (1)

5,344

979

(25)

6,298

4,492

922

(39)

5,375

4,751

970

(21)

5,700

654

133

(3)

784

Research and development (1)

5,942

439

–

6,381

4,934

429

–

5,363

5,440

449

–

5,889

748

–

810

Total costs and expenses

21,839

7,192

(185)

28,846

19,265

6,982

(218)

26,029

21,079

7,097

(189)

27,987

2,900

976

(25)

3,851

YOY

Cost of revenues

3 %

(2 %)

1 %

Selling, general and administrative

(11 %)

(1 %)

(9 %)

Research and development

(8 %)

2 %

(8 %)

Costs and expenses

(3 %)

(1 %)

(3 %)

Operating income (loss)

4,568

610

5,210

4,538

945

5,484

5,608

342

(6)

5,944

772

(2)

818

YOY

23 %

(44 %)

14 %

QOQ

24 %

(64 %)

8 %

Operating margin

17 %

8 %

15 %

19 %

12 %

17 %

21 %

5 %

18 %

Add: total other income (loss), net

1,603

(234)

–

1,369

1,508

(262)

–

1,246

1,011

(240)

–

771

139

(33)

–

106

Less: income tax expense

1,262

–

1,270

866

–

883

1,105

–

1,131

152

–

156

Less: net (loss) income attributable to NCI

(103)

199

(3)

358

(3)

399

(3)

Net income (loss) attributable to Baidu

5,012

365

(167)

5,210

5,150

655

(357)

5,448

5,462

(43)

5,488

752

(7)

755

YOY

9 %

(81 %)

5 %

QOQ

6 %

(89 %)

1 %

Net margin

19 %

5 %

15 %

22 %

8 %

17 %

20 %

1 %

16 %

Non-GAAP financial measures:

Operating income (non-GAAP)

6,516

786

7,334

5,586

1,086

6,673

7,005

501

7,500

964

1,032

YOY

8 %

(36 %)

2 %

QOQ

25 %

(54 %)

12 %

Operating margin (non-GAAP)

25 %

10 %

22 %

23 %

14 %

21 %

26 %

7 %

22 %

Net income attributable to Baidu (non-GAAP)

7,694

595

7,998

6,628

844

7,011

7,290

247

7,396

1,003

1,018

YOY

(5 %)

(58 %)

(8 %)

QOQ

10 %

(71 %)

5 %

Net margin (non-GAAP)

29 %

8 %

23 %

28 %

11 %

22 %

27 %

3 %

22 %

Adjusted EBITDA

8,229

855

9,116

7,118

1,125

8,244

8,617

536

9,147

1,186

1,259

YOY

5 %

(37 %)

0 %

QOQ

21 %

(52 %)

11 %

Adjusted EBITDA margin

31 %

11 %

27 %

30 %

14 %

26 %

32 %

7 %

27 %

(1) Includes share-based compensation as follows:

Cost of revenues

160

194

108

117

146

Selling, general and administrative

356

446

353

417

292

385

Research and development

1,358

1,403

575

618

945

981

130

135

Total share-based compensation

1,874

169

2,043

1,004

139

1,143

1,354

158

1,512

186

208

(2) Relates to intersegment eliminations and adjustments

(3) Relates to the net income attributable to iQIYI noncontrolling interests

Baidu, Inc.

Condensed Consolidated Statements of Cash Flows

(In millions,unaudited)

Three months ended

June 30, 2023 (RMB)

March 31, 2024 (RMB)

June 30, 2024 (RMB)

June 30, 2024 (US$)

Baidu
excl.
iQIYI

iQIYI

Baidu,
Inc.

Baidu
excl.
iQIYI

iQIYI

Baidu,
Inc.

Baidu
excl.
iQIYI

iQIYI

Baidu,
Inc.

Baidu
excl.
iQIYI

iQIYI

Baidu,
Inc.

Net cash provided by operating activities

9,746

886

10,632

5,284

936

6,220

7,970

409

8,379

1,097

1,153

Net cash provided by (used in) investing activities

7,309

(421)

6,888

(2,893)

(223)

(3,116)

13,824

337

14,161

1,903

1,949

Net cash provided by (used in) financing activities

1,908

(1,176)

732

2,126

261

2,387

(9,946)

869

(9,077)

(1,369)

120

(1,249)

Effect of exchange rate changes on cash, cash
equivalents and restricted cash

496

128

624

154

169

Net increase (decrease) in cash, cash equivalents and
restricted cash

19,459

(583)

18,876

4,671

989

5,660

11,914

1,637

13,551

1,640

225

1,865

Cash, cash equivalents and restricted cash

At beginning of period

30,355

5,665

36,020

32,293

5,281

37,574

36,964

6,270

43,234

5,086

863

5,949

At end of period

49,814

5,082

54,896

36,964

6,270

43,234

48,878

7,907

56,785

6,726

1,088

7,814

Net cash provided by operating activities

9,746

886

10,632

5,284

936

6,220

7,970

409

8,379

1,097

1,153

Less: Capital expenditures

(2,693)

(13)

(2,706)

(2,016)

(22)

(2,038)

(2,090)

(28)

(2,118)

(287)

(4)

(291)

Free cash flow

7,053

873

7,926

3,268

914

4,182

5,880

381

6,261

810

862

Note: Baidu excl. iQIYI represents Baidu, Inc. minus iQIYI’s consolidated cash flows.

Baidu, Inc.

Reconciliations of Non-GAAP Financial Measures to the Nearest Comparable GAAP Measures

(In millions except for per ADS information, unaudited)

Three months ended

June 30, 2023 (RMB)

March 31, 2024 (RMB)

June 30, 2024 (RMB)

June 30, 2024 (US$)

Baidu
Core

iQIYI

Baidu,
Inc.

Baidu
Core

iQIYI

Baidu,
Inc.

Baidu
Core

iQIYI

Baidu,
Inc.

Baidu
Core

iQIYI

Baidu,
Inc.

Operating income

4,568

610

5,210

4,538

945

5,484

5,608

342

5,944

772

818

Add: Share-based compensation expenses

1,874

169

2,043

1,004

139

1,143

1,354

158

1,512

186

208

Add: Amortization and impairment of intangible assets(1)

–

Operating income (non-GAAP)

6,516

786

7,334

5,586

1,086

6,673

7,005

501

7,500

964

1,032

Add: Depreciation of fixed assets

1,713

1,782

1,532

1,571

1,612

1,647

222

227

Adjusted EBITDA

8,229

855

9,116

7,118

1,125

8,244

8,617

536

9,147

1,186

1,259

Net income attributable to Baidu

5,012

365

5,210

5,150

655

5,448

5,462

5,488

752

755

Add: Share-based compensation expenses

1,872

169

1,949

1,003

139

1,066

1,353

158

1,425

185

196

Add: Amortization and impairment of intangible assets(1)

–

Add: Disposal (gain)

(919)

(89)

(959)

(458)

–

(458)

(30)

–

(30)

(4)

–

(4)

Add: Impairment of long-term investments

270

155

340

Add: Fair value loss (gain) of long-term investments

1,239

(4)

1,237

725

(23)

714

531

–

Add: Reconciling items on equity method investments(2)

296

(9)

292

280

–

280

–

Add: Tax effects on non-GAAP adjustments(3)

(137)

(136)

(150)

–

(150)

(176)

–

(176)

(24)

–

(24)

Net income attributable to Baidu (non-GAAP)

7,694

595

7,998

6,628

844

7,011

7,290

247

7,396

1,003

1,018

Diluted earnings per ADS

14.17

14.91

15.01

2.07

Add: Accretion of the redeemable noncontrolling interests

0.50

0.55

0.57

0.08

Add: Non-GAAP adjustments to earnings per ADS

7.88

4.45

5.44

0.74

Diluted earnings per ADS (non-GAAP)

22.55

19.91

21.02

2.89

(1) This represents amortization and impairment of intangible assets resulting from business combinations.

(2) This represents Baidu’s share of equity method investments for other non-GAAP reconciling items, amortization and impairment of intangible assets not on the investee’s books, accretion of their redeemable noncontrolling interests, and the gain or loss
associated with the issuance of shares by the investees at a price higher or lower than the carrying value per share.

(3) This represents tax impact of all non-GAAP adjustments.

View original content:https://www.prnewswire.com/news-releases/baidu-announces-second-quarter-2024-results-302228460.html

SOURCE Baidu, Inc.

Technology

Data Center Asia 2025 Set for Ground-breaking Launch in Hong Kong

Published

56 mins ago

September 23, 2024

HONG KONG, Sept. 22, 2024 /PRNewswire/ — Positioned as an essential knowledge exchange platform and a cross-continental meeting place for the industry, Data Center Asia (DCA), organized by Informa Markets Asia, is set to make its grand debut from 15 to 17 July 2025 at AsiaWorld-Expo, Hong Kong. Building on the success of the long-running, AFCOM-affiliated Data Center World event in the US, Data Center Asia will serve as the epicenter for data center technology innovations and business transformations in the fast-growing Asia-Pacific markets, with highlights to the regional hotspots such as the Greater Bay Area (GBA). Hong Kong as a prime event location allows the event to attract a diverse visitor mix across Asia-Pacific region and boost the connectivity with global markets.

By showcasing the end-to-end data center value chain, DCA 2025 promises to be a transformative moment for Asia’s data center ecosystem, offering unparalleled opportunities for education, networking and sourcing that will shape the future of digital infrastructure. The event will be co-located with Build4Asia, The Battery Show Asia and Mobility Tech Asia, bringing content and visitor synergies under a broad renewable energy theme that covers advanced battery technologies, energy storage, electric/hybrid technologies, green facilities and green building solutions, and other relevant subjects.

The Ultimate Showcase of Data Center Innovations

The three-day DCA 2025 will showcase hundreds of advanced solutions designed to help attendees refine their data center strategies. Exhibitors will span the entire data center industry ecosystem, bringing together every key element from data center infrastructure, design engineering and systems integration, intelligent products and technologies, cloud and virtualisation to telecommunications. Corporate users and industry professionals including data center operators, IT and infrastructure managers, facility managers, cloud service experts, cybersecurity specialists and sustainability advocates will have the opportunity to connect with top-tier global suppliers, explore the latest technologies, and rethink the full lifecycle of data center operations.

Held alongside the exhibition, The DCA conference will feature a series of expertly curated tracks, each focused on the latest trends and best practice in the industry. Featuring over 100 top-tier speakers across the region and from outside Asia, attendees will engage in in-depth discussions on key topics such as the current market landscape, energy efficiency & sustainability, data center design & operations, among many others. This dynamic exchange of ideas will inject new energy into the data center communities, offering attendees invaluable insights and practical takeaways.

Hong Kong as a Springboard to China and the Wider Asian Markets

Strategically located in the heart of Asia, Hong Kong bridges between Mainland China and the rest of the world, offering unmatched access for foreign businesses to enter the burgeoning GBA and the wider China markets and meanwhile enabling China local enterprises to expand their global footprint. Situated at AsiaWorld-Expo, which is conveniently located next to the Hong Kong International Airport and near the Hong Kong-Zhuhai-Macao Bridge, DCA 2025 ensures seamless access for visitors from all directions, making it an ideal platform to foster global connections and explore trans-continental business opportunities.

Hong Kong is distinguished by its superior connectivity, deep talent pool and advanced hardware infrastructure that complement the essential needs of the data center industry. The city’s commitment to supporting this sector is evident in its significant government initiatives, including subsidies for relevant R&D projects and the redevelopment initiatives to convert industrial buildings into the state-of-the-art data centers. These efforts are also complemented by Hong Kong’s strong supply-demand dynamics within key industries such as finance, trade, insurance and logistics, which drive lasting and robust needs for data center solutions. All these offer a fertile environment for investment and growth to the data center.

Strategic Co-Location for Maximum Synergy

As a strategic move to create powerful synergies, DCA 2025 will be co-located with three other technology-focused events held across seven standard halls at AsiaWorld-Expo:

the locally acclaimed Build4Asia, which specializes in green building, smart facilities and efficient power managementthe inaugural edition of The Battery Show Asia, which showcases the advancements in advanced battery and energy storage technologiesthe newly created Mobility Tech Asia, which explores the future of new energy vehicles across land, air and water.

This co-location is set to attract a diverse audience encompassing regional professionals from Internet Data Center (IDC) experts, EPC contractors, data center infrastructure manufacturers and distributors, end users and more, which would offer a broader perspective on data applications and drive valuable cross-sector exchange.

In addition, leveraging Informa’s extensive technology media network including Data Center Knowledge, InformationWeek, Network Computing and OMdia, DCA 2025 will serve up unprecedented opportunities for networking, knowledge exchange and business collaborations. The extensive industry expertise and audience base brought by these sister brands will significantly enhance the event’s global impact and educational value.

Join Us to Shape the Future of Data Center

Data Center Asia 2025 is set to be a premier destination for business networking and knowledge exchange and an industry-leading think tank. The event will cultivate a vibrant community of researchers, business leaders, industry associations and opinion makers, all of whom will contribute ground-breaking insights that could make a lasting impact on Asia’s data center industry. Join us in Hong Kong from 15 to 17 July 2025 and be a part of the conversation that will shape the future of Asian data center industry!

About Informa Markets

Informa Markets creates platforms for industries and specialist markets to trade, innovate and grow. Our portfolio is comprised of more than 550 international B2B events and brands in markets including Healthcare & Pharmaceuticals, Infrastructure, Construction & Real Estate, Fashion & Apparel, Hospitality, Food & Beverage, and Health & Nutrition, among others. We provide customers and partners around the globe with opportunities to engage, experience and do business through face-to-face exhibitions, specialist digital content and actionable data solutions. As the world’s leading exhibitions organizer, we bring a diverse range of specialist markets to life, unlocking opportunities and helping them to thrive 365 days of the year. For more information, please visit www.informamarkets.com.

View original content to download multimedia:https://www.prnewswire.com/news-releases/data-center-asia-2025-set-for-ground-breaking-launch-in-hong-kong-302255014.html

SOURCE Informa Markets Asia; Data Center Asia

Technology

On Track for A Low Carbon Future: CRRC to Unveil Passenger and Freight Rail Transit and Full Life-Cycle System Solutions at InnoTrans 2024

Published

2 hours ago

September 23, 2024

BERLIN, Sept. 22, 2024 /PRNewswire/ — Under the theme of On Track for A Low Carbon Future, CRRC Corporation Limited (“CRRC”, SHA: 601766) will display its line-up of passenger and freight transportation offerings, alongside full life-cycle system solutions, at InnoTrans 2024 in Berlin, Germany. Highlighting the event, two innovative, eco-friendly, and intelligent trains will make their world premiere: the CINOVA H2 New Energy Intelligent Intercity Train and the Autonomous Rail Rapid Transit (ART) 2.0, at Stand 210, Hall 4.2 of the venue.

Green Intelligent Passenger Transport Solutions

CRRC will showcase its environmentally responsible and intelligent passenger transport solutions, which include the Intelligent EMU, Intercity/Regional EMU, Intelligent Urban Rail Transit, and New Energy Passenger Transportation. These offerings cater to every speed level and application scenario, envisioning a future of passenger transport that is faster, greener, smarter, and more cost-effective.

The exhibition will highlight standout products that are redefining passenger mobility, including the 350 km/h High-Speed Intelligent EMU, the CINOVA 2.0 New Intelligent Intercity/Regional EMU, the 160 km/h Hydrogen Full-Automatic Intelligent Regional Train, and the Autonomous Rail Rapid Transit (ART).

Diversified Freight Transport Solutions

CRRC introduce a wide range of heavy-duty, fast, and environmentally responsible solutions during the event. To address the growing demand for higher freight capacity, CRRC plans to unveil several new products, among them, the 24-axle Freight Electric Locomotive and the 45-ton Axle Load Ore Car. The 350 km/h High-Speed Freight EMU, the fastest and the most spacious in the industry, will be a focal point. In line with the global push for green transportation, CRRC will launch its serialized new energy locomotives, including the diesel-battery hybrid locomotive, the power battery locomotive, and the hydrogen-battery hybrid locomotive, with power levels from 1000KW to 2000KW. The diversified solutions offer more choices for the global railway freight industry.

Full Life-Cycle System Solutions

CRRC will showcase its expertise beyond just train units with the Train-Ground Integrated Electromechanical System (TIES), a game-changer that centers on the vehicle and incorporates all related operating scenarios. The system reconstructs, integrates, and optimizes the electromechanical system for power supply, signaling, track, depot and passenger service scenarios. It exemplifies the Train-Ground Integration concept, driving overall efficiency gains across disciplines and throughout the entire vehicle-road-station-depot lifecycle.

Focusing on user experience and the diverse needs of the global rail transit market, CRRC will give a detailed presentation on its Digital Life-Cycle System Solution (DLS) at the event. The flexible solution accommodates various city sizes and populations through tailored system designs that support diverse business models such as PPP (public-private partnership), system integration, and electro-mechanical turnkey projects.

For more information about CRRC at the exhibition, please visit https://www.crrcgc.cc/en/.

View original content to download multimedia:https://www.prnewswire.com/news-releases/on-track-for-a-low-carbon-future-crrc-to-unveil-passenger-and-freight-rail-transit-and-full-life-cycle-system-solutions-at-innotrans-2024-302255003.html

SOURCE CRRC Corporation Limited

Technology

Reshaping Future Lifestyles: Markor Unveils AI Strategy at the Apsara Conference

Published

2 hours ago

September 23, 2024

BEIJING, Sept. 21, 2024 /PRNewswire/ — On September 19, the 2024 China Apsara Conference, a major annual event for the Chinese cloud computing industry, commenced in Hangzhou. Over three days, industry representatives, media professionals, and numerous AI technology enthusiasts gathered to witness the event’s grandeur.

This year’s summit, themed “AI on Cloud: Recharging• Innovating • Transforming,” spotlighted the evolution of cloud computing across various sectors in the AI era, presenting the world’s largest showcase of generative AI applications. Industry giants including NVIDIA, Intel, Alibaba Cloud, and Tesla were in attendance. Markor distinguished itself as the sole home furnishing company represented at the summit, presenting its cutting-edge “AI Smart Home” system, which introduced a new era of AI-driven home consumption experiences, attracting significant attention.

Live at the Scene: Markor’s AI Smart Home Takes a Giant Leap Forward

From its transition to new retail in recent years to its embrace of AI, the home furnishing industry’s exploration and implementation of AI have drawn immense attention. It has been recognized as a long-term strategy that will influence the future of urban living and people’s quality of life.
In 2023, dubbed the first year of AI in China, Markor led the industry by launching its AI-powered home application, “AI Smart Home.” This program integrates cutting-edge AI model technology with a curated selection of best-selling products, offering features such as a home knowledge encyclopedia, lifestyle analysis and recommendations, design style suggestions, furniture recommendations, and one-click product replacements, providing users with 24/7 intelligent home design and easy home setup solutions.

The AI Smart Home system revolutionizes traditional home setup processes, enabling users to enjoy services conveniently via mobile devices. At the summit, Markor provided live demonstrations of the AI Smart Home system, with an interactive area for hands-on experiences. The system’s ease of use, wide range of style options, instant results, one-click sharing, and seamless purchasing capabilities ushered in a new era, allowing attendees to transition from imagining AI-powered home setups to instantly experiencing full-room services. The audience was left impressed and full of praise.

As the world’s first AI multimodal model for professional interior design, and the only AI application to incorporate a large language model in home furnishing retail, the AI Smart Home offers flexible and dynamic solutions that go beyond pre-existing layout-generated designs. It represents a groundbreaking leap in the home industry, emerging as a leading tool that reshapes service ecosystems.

Open, Shared, and Collaborative AI Business Achievements Define AI’s Sustainable Future

As a traditional home furnishing retailer closely tied to people’s daily lives, the success of AI Smart Home is no coincidence. Markor’s global strategy and presence ensure that the brand remains open and internationally competitive. Whether through prestigious awards or its global manufacturing footprint, each leap in innovation is supported by its competitive edge.
Since the beta launch of AI Smart Home by Markor Furnishings, a home furnishing brand under Markor, it has recorded over 50,000 page visits in a short time, with tens of thousands of users generating sales orders worth tens of millions of yuan. This achievement has boosted confidence in the traditional industry’s digital transformation.
A representative of Markor at the summit stated, “AI represents openness, and Markor has always embraced the times through an open ecosystem to meet users’ needs. With over 20 years of accumulated lifestyle experience, we aim to extend the reach of quality living experiences through AI interaction and expansion. The true sustainable future of AI lies in achieving shared success among users, brands, and technology platforms.”

It is evident that Markor is not simply focused on app development; it is committed to a long-term strategy that builds AI-driven lifestyles and reshapes business models. By creating personalized shopping experiences and innovating marketing models that cater to new consumer demands, Markor’s AI-based tools like “AI Xiaomei” and “AI Smart Home” serve as personalized recommendation and virtual design solutions. The company is poised to further enhance its services by leveraging AI to accurately predict market trends, optimize advertising effectiveness, and upgrade customer solutions, thus driving marketing conversion opportunities. Through disruptive shopping experiences and business models, Markor aims to become the world’s first AI-driven home furnishing brand with a fully digital and intelligent shopping experience.

Pioneering Future Living with AI: Unlocking New Opportunities

Markor is committed to leveraging technological convenience, unlocking potential, and sharing technological benefits. As a trailblazer in quality living, its development path consistently follows a “science + art” approach, which has proven to be a long-term strategy in line with current market trends. In 2024, Markor was honored with the title of “Outstanding Home Furnishing Brand Enterprise of 2024.” Its sub-brand, Markor Furnishings, reached a new brand value of over 32.2 billion yuan, securing a spot in the “Top 100 New Quality Home Brands of 2024” and winning the “Home Service Excellence Award” for the 13th consecutive year.
Backed by its national-level Industrial Design Center, robust R&D systems, and global operational capabilities, Markor continues to invigorate the ecosystem through digitalization, intelligence, and supply chain integration. With AI Smart Home as the bridge, Markor is reigniting public interest and confidence in AI’s potential and advancing the commercialization of AI technologies like natural language processing. It is building a continually open-source platform for both DTC end-users and B2B interior designers.
In July 2024, Markor hosted the “Art + AI + Life” forum in Beijing and launched a national AI painting and design competition, further embedding AI practices in the industry. In September, it signed a strategic partnership with the AI technology leader Shengshu Technology to break new ground in product design, manufacturing, marketing content innovation, and service experience. This collaboration will fuel the company’s efforts toward smart, personalized home furnishing upgrades, setting new benchmarks in the industry. These initiatives underscore Markor’s determination to use AI to enhance its future competitiveness.

Democratizing design empowers everyone to shape their dreams and take control of their future. Markor’s ongoing AI strategy not only provides opportunities for those pursuing a better life but also highlights new possibilities in the ever-evolving home living landscape.

View original content:https://www.prnewswire.com/news-releases/reshaping-future-lifestyles-markor-unveils-ai-strategy-at-the-apsara-conference-302255015.html

SOURCE Markor International Home Furnishings