Technology

Baidu Announces Third Quarter 2024 Results

Published

2 years ago

November 21, 2024

BEIJING, Nov. 21, 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 third quarter ended September 30, 2024.

“Baidu Core’s flattish third quarter top line reflected the ongoing weakness in our online marketing business, offset by the growth of our AI Cloud business. Our strong AI capabilities are gaining broader market recognition, as evidenced by increasing adoption of ERNIE. In intelligent driving, Apollo Go continues to lead the global autonomous ride-hailing market, hitting another milestone with our sixth-generation autonomous vehicle now operating on public roads across multiple cities in China,” said Robin Li, Co-founder and CEO of Baidu. “Despite the near-term pressures, we remain steadfast in our AI-focused strategy and are confident in our long-term trajectory. As we further scale AI, we are emboldened to find how it can drive innovations and create value for consumers, enterprises and society at large.”

“Our relentless focus on cost control helped support our third quarter results. Baidu Core’s operating margins remained stable as we managed to further optimize costs and realize more cost efficiencies between business units,” said Junjie He, Interim CFO of Baidu. “AI Cloud continued to show healthy and sustainable development in the third quarter. Meanwhile, Apollo Go continued to make operational strides, underpinning our confidence in the validity of the fully autonomous ride hailing business model.”

Third Quarter 2024 Financial Highlights [1]

Baidu, Inc.

(In millions except per ADS, unaudited)

2023

2024

YOY

QOQ

RMB

US$

Total revenues

34,447

33,931

33,557

4,782

(3 %)

(1 %)

Operating income

6,274

5,944

5,925

844

(6 %)

(0 %)

Operating income (non-GAAP) [2]

7,596

7,500

7,014

999

(8 %)

(6 %)

Net income to Baidu

6,681

5,488

7,632

1,088

14 %

39 %

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

7,267

7,396

5,886

839

(19 %)

(20 %)

Diluted earnings per ADS

18.22

15.01

21.60

3.08

19 %

44 %

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

20.40

21.02

16.60

2.37

(19 %)

(21 %)

Adjusted EBITDA [2]

9,505

9,147

8,733

1,244

(8 %)

(5 %)

Adjusted EBITDA margin

28 %

27 %

26 %

Baidu Core

(In millions, unaudited)

2023

2024

YOY

QOQ

RMB

US$

Total revenues

26,572

26,687

26,524

3,780

(0 %)

(1 %)

Operating income

5,498

5,608

5,694

811

4 %

2 %

Operating income (non-GAAP) [2]

6,672

7,005

6,652

948

(0 %)

(5 %)

Net income to Baidu Core

6,436

5,462

7,536

1,074

17 %

38 %

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

6,956

7,290

5,676

809

(18 %)

(22 %)

Adjusted EBITDA [2]

8,513

8,617

8,336

1,188

(2 %)

(3 %)

Adjusted EBITDA margin

32 %

31 %

[1] Unless otherwise noted, RMB to USD was converted at an exchange rate of RMB7.0176 as of September 30, 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

In October 2024, Baidu was upgraded from the prior ‘BBB’ rating to an ‘A’ rating by MSCI ESG Research.Baidu returned US$161 million to shareholders since early Q3 2024, bringing the cumulative repurchase to US$1.4 billion under the 2023 share repurchase program.

AI Cloud

PaddlePaddle and ERNIE developer community grew to 18.1 million in November 2024.In November 2024, ERNIE handled approximately 1.5 billion API calls daily, a significant jump from 600 million in August.In the third quarter of 2024, Baidu expanded the ERNIE family with two enhanced lightweight models, Speed Pro and Lite Pro.Baidu AI Cloud was ranked the No.1 AI cloud provider for the fifth consecutive year, according to IDC’s 2023 report on China’s AI public cloud market, issued in August 2024.

Intelligent Driving

Apollo Go, Baidu’s autonomous ride-hailing service, provided 988K rides in the third quarter of 2024, up 20% year over year. As of October 28, 2024, the cumulative rides provided to the public by Apollo Go surpassed 8 million.During the third quarter of 2024, rides provided by Apollo Go’s fully driverless vehicles accounted for over 70% of total rides nationwide. The proportion of fully driverless rides further increased to 80% in October 2024.Our sixth generation autonomous vehicle, the RT6, is now operating on public roads in multiple cities in China.

Mobile Ecosystem

In September 2024, Baidu App’s MAUs reached 704 million, up 6% year over year.Managed Page accounted for 51% of Baidu Core’s online marketing revenue in the third quarter of 2024.

Third Quarter 2024 Financial Results

Total revenues were RMB33.6 billion ($4.78 billion), decreasing 3% year over year.

Revenue from Baidu Core was RMB26.5 billion ($3.78 billion), which was basically flat from last year; online marketing revenue was RMB18.8 billion ($2.68 billion), decreasing 4% year over year, and non-online marketing revenue was RMB7.7 billion ($1.10 billion), up 12% year over year, mainly driven by AI Cloud business.Revenue from iQIYI was RMB7.2 billion ($1.03 billion), decreasing 10% year over year.

Cost of revenues was RMB16.4 billion ($2.34 billion), increasing 1% year over year, primarily due to an increase in traffic acquisition costs and costs related to AI Cloud business, partially offset by a decrease in personnel-related expenses and cost of goods sold.

Selling, general and administrative expenses were RMB5.9 billion ($836 million), increasing 2% year over year, primarily due to an increase in channel spending and promotional marketing expenses, partially offset by a decrease in personnel-related expenses.

Research and development expenses were RMB5.4 billion ($765 million), decreasing 12% year over year, primarily due to a decrease in personnel-related expenses.

Operating income was RMB5.9 billion ($844 million). Baidu Core operating income was RMB5.7 billion ($811 million), and Baidu Core operating margin was 21%. Non-GAAP operating income was RMB7.0 billion ($999 million). Non-GAAP Baidu Core operating income was RMB6.7 billion ($948 million), and non-GAAP Baidu Core operating margin was 25%.

Total other income, net was RMB2.7 billion ($381 million), increasing 40% year over year, primarily due to an increase in fair value gain from long-term investments and disposal gain, partially offset by an increase in net foreign exchange loss arising from exchange rate fluctuation between Renminbi and U.S. dollar.

Income tax expense was RMB814 million ($116 million), compared to RMB1.3 billion in the same period last year.

Net income attributable to Baidu was RMB7.6 billion ($1.09 billion), and diluted earnings per ADS was RMB21.60 ($3.08). Net income attributable to Baidu Core was RMB7.5 billion ($1.07 billion), and net margin for Baidu Core was 28%. Non-GAAP net income attributable to Baidu was RMB5.9 billion ($839 million). Non-GAAP diluted earnings per ADS was RMB16.60 ($2.37). Non-GAAP net income attributable to Baidu Core was RMB5.7 billion ($809 million), and non-GAAP net margin for Baidu Core was 21%.

Adjusted EBITDA was RMB8.7 billion ($1.24 billion) and adjusted EBITDA margin was 26%. Adjusted EBITDA for Baidu Core was RMB8.3 billion ($1.19 billion) and adjusted EBITDA margin for Baidu Core was 31%.

As of September 30, 2024, cash, cash equivalents, restricted cash and short-term investments were RMB144.5 billion ($20.59 billion), and cash, cash equivalents, restricted cash and short-term investments excluding iQIYI were RMB140.3 billion ($19.99 billion). Free cash flow was RMB2.6 billion ($376 million), and free cash flow excluding iQIYI was RMB2.4 billion ($342 million).

Conference Call Information

Baidu’s management will hold an earnings conference call at 7.30 AM on November 21, 2024, U.S. Eastern Time (8.30 PM on November 21, 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. Q3 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/10043066-56ncpy.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 (loss), 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

September 30,

June 30,

September 30,

2023

2024

RMB

US$(2)

Revenues:

Online marketing services

21,346

20,625

20,108

2,865

Others

13,101

13,306

13,449

1,917

Total revenues

34,447

33,931

33,557

4,782

Costs and expenses:

Cost of revenues(1)

16,294

16,398

16,399

2,337

Selling, general and administrative(1)

5,778

5,700

5,867

836

Research and development(1)

6,101

5,889

5,366

765

Total costs and expenses

28,173

27,987

27,632

3,938

Operating income

6,274

5,944

5,925

844

Other income:

Interest income

2,082

1,993

1,877

267

Interest expense

(853)

(742)

(673)

(96)

Foreign exchange (loss) gain, net

(26)

(1,096)

(156)

Share of (losses) earnings from equity method investments

(398)

(119)

Others, net

1,100

(454)

2,535

361

Total other income, net

1,905

771

2,675

381

Income before income taxes

8,179

6,715

8,600

1,225

Income tax expense

1,282

1,131

814

116

Net income

6,897

5,584

7,786

1,109

Net income attributable to noncontrolling interests

216

154

Net income attributable to Baidu

6,681

5,488

7,632

1,088

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

-Basic

18.45

15.11

21.93

3.13

-Diluted

18.22

15.01

21.60

3.08

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

-Basic

2.31

1.89

2.74

0.39

-Diluted

2.28

1.88

2.70

0.38

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

-Basic

2,814

2,796

2,785

-Diluted

2,846

2,804

2,789

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

Cost of revenues

139

146

104

Selling, general and administrative

358

385

328

Research and development

778

981

612

Total share-based compensation expenses

1,275

1,512

1,044

149

(2) All translations from RMB to U.S. dollars are made at a rate of RMB7.0176 to US$1.00, the exchange rate in effect as of

September 30, 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,

September 30,

2023

2024

RMB

US$

ASSETS

Current assets:

Cash and cash equivalents

25,231

28,682

4,087

Restricted cash

11,503

11,665

1,662

Short-term investments, net

168,670

104,129

14,838

Accounts receivable, net

10,848

9,848

1,403

Amounts due from related parties

1,424

1,379

197

Other current assets, net

12,579

16,415

2,339

Total current assets

230,255

172,118

24,526

Non-current assets:

Fixed assets, net

27,960

29,696

4,232

Licensed copyrights, net

6,967

6,862

978

Produced content, net

13,377

14,313

2,040

Intangible assets, net

881

749

107

Goodwill

22,586

3,218

Long-term investments, net

47,957

44,637

6,361

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

24,666

88,547

12,618

Amounts due from related parties

195

120

Deferred tax assets, net

2,100

2,852

406

Operating lease right-of-use assets

10,851

10,693

1,524

Other non-current assets

18,964

24,143

3,440

Total non-current assets

176,504

245,198

34,941

Total assets

406,759

417,316

59,467

LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY

Current liabilities:

Short-term loans

10,257

11,969

1,706

Accounts payable and accrued liabilities

37,717

39,000

5,557

Customer deposits and deferred revenue

14,627

14,310

2,039

Deferred income

306

300

Long-term loans, current portion

Convertible senior notes, current portion

2,802

Notes payable, current portion

6,029

7,714

1,099

Amounts due to related parties

1,603

1,959

279

Operating lease liabilities

3,108

3,123

445

Total current liabilities

76,451

78,429

11,175

Non-current liabilities:

Deferred income

200

265

Deferred revenue

481

532

Amounts due to related parties

Long-term loans

14,223

14,487

2,064

Notes payable

34,990

26,911

3,835

Convertible senior notes

8,144

8,187

1,167

Deferred tax liabilities

2,725

2,885

411

Operating lease liabilities

5,040

4,911

700

Other non-current liabilities

1,820

1,457

208

Total non-current liabilities

67,700

59,696

8,508

Total liabilities

144,151

138,125

19,683

Redeemable noncontrolling interests

9,465

9,312

1,327

Equity

Total Baidu shareholders’ equity

243,626

259,649

36,999

Noncontrolling interests

9,517

10,230

1,458

Total equity

253,143

269,879

38,457

Total liabilities, redeemable noncontrolling interests, and equity

406,759

417,316

59,467

Baidu, Inc.

Selected Information

(In millions, unaudited)

Three months ended
September 30, 2023 (RMB)

Three months ended
June 30, 2024 (RMB)

Three months ended
September 30, 2024 (RMB)

Three months ended
September 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

26,572

8,015

(140)

34,447

26,687

7,439

(195)

33,931

26,524

7,246

(213)

33,557

3,780

1,032

(30)

4,782

YOY

(0 %)

(10 %)

(3 %)

QOQ

(1 %)

(3 %)

(1 %)

Costs and expenses:

Cost of revenues (1)

10,610

5,840

(156)

16,294

10,888

5,678

(168)

16,398

10,923

5,650

(174)

16,399

1,557

805

(25)

2,337

Selling, general and administrative (1)

4,810

981

(13)

5,778

4,751

970

(21)

5,700

4,990

908

(31)

5,867

711

129

(4)

836

Research and development (1)

5,654

447

–

6,101

5,440

449

–

5,889

4,917

449

–

5,366

701

–

765

Total costs and expenses

21,074

7,268

(169)

28,173

21,079

7,097

(189)

27,987

20,830

7,007

(205)

27,632

2,969

998

(29)

3,938

YOY

Cost of revenues

3 %

(3 %)

1 %

Selling, general and administrative

4 %

(7 %)

2 %

Research and development

(13 %)

0 %

(12 %)

Costs and expenses

(1 %)

(4 %)

(2 %)

Operating income (loss)

5,498

747

6,274

5,608

342

(6)

5,944

5,694

239

(8)

5,925

811

(1)

844

YOY

4 %

(68 %)

(6 %)

QOQ

2 %

(30 %)

(0 %)

Operating margin

21 %

9 %

18 %

21 %

5 %

18 %

21 %

3 %

18 %

Add: total other income (loss), net

2,159

(254)

–

1,905

1,011

(240)

–

771

2,667

–

2,675

380

–

381

Less: income tax expense

1,272

–

1,282

1,105

–

1,131

803

–

814

114

–

116

Less: net (loss) income attributable to NCI

(51)

260(3)

216

37(3)

125(3)

154

–

18(3)

Net income (loss) attributable to Baidu

6,436

476

(231)

6,681

5,462

(43)

5,488

7,536

229

(133)

7,632

1,074

(19)

1,088

YOY

17 %

(52 %)

14 %

QOQ

38 %

232 %

39 %

Net margin

24 %

6 %

19 %

20 %

1 %

16 %

28 %

3 %

23 %

Non-GAAP financial measures:

Operating income (non-GAAP)

6,672

895

7,596

7,005

501

7,500

6,652

370

7,014

948

999

YOY

(0 %)

(59 %)

(8 %)

QOQ

(5 %)

(26 %)

(6 %)

Operating margin (non-GAAP)

25 %

11 %

22 %

26 %

7 %

22 %

25 %

5 %

21 %

Net income attributable to Baidu (non-

GAAP)

6,956

622

7,267

7,290

247

7,396

5,676

480

5,886

809

839

YOY

(18 %)

(23 %)

(19 %)

QOQ

(22 %)

94 %

(20 %)

Net margin (non-GAAP)

26 %

8 %

21 %

27 %

3 %

22 %

21 %

7 %

18 %

Adjusted EBITDA

8,513

963

9,505

8,617

536

9,147

8,336

405

8,733

1,188

1,244

YOY

(2 %)

(58 %)

(8 %)

QOQ

(3 %)

(24 %)

(5 %)

Adjusted EBITDA margin

32 %

12 %

28 %

32 %

7 %

27 %

31 %

6 %

26 %

(1) Includes share-based compensation as follows:

Cost of revenues

107

139

117

146

104

Selling, general and administrative

290

358

292

385

268

328

Research and development

732

778

945

981

574

612

Total share-based compensation

1,129

146

1,275

1,354

158

1,512

915

129

1,044

131

149

(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

September 30, 2023 (RMB)

June 30, 2024 (RMB)

September 30, 2024 (RMB)

September 30, 2024 (US$)

Baidu

excl. iQIYI

iQIYI

Baidu,

Inc.

Baidu

excl.

iQIYI

Baidu,

Inc.

Baidu

excl. iQIYI

iQIYI

Baidu,

Inc.

Baidu

excl.

iQIYI

Baidu,

Inc.

Net cash provided by operating activities

8,694

831

9,525

7,970

409

8,379

4,036

243

4,279

575

610

Net cash (used in) provided by investing activities

(11,345)

(55)

(11,400)

13,824

337

14,161

(12,300)

(1,663)

(13,963)

(1,753)

(237)

(1,990)

Net cash (used in) provided by financing activities

(5,253)

269

(4,984)

(9,946)

869

(9,077)

(2,787)

(2,612)

(5,399)

(397)

(372)

(769)

Effect of exchange rate changes on cash, cash

equivalents and restricted cash

153

158

(721)

(84)

(805)

(103)

(12)

(115)

Net (decrease) increase in cash, cash

equivalents and restricted cash

(7,751)

1,050

(6,701)

11,914

1,637

13,551

(11,772)

(4,116)

(15,888)

(1,678)

(586)

(2,264)

Cash, cash equivalents and restricted cash

At beginning of period

49,814

5,082

54,896

36,964

6,270

43,234

48,878

7,907

56,785

6,965

1,127

8,092

At end of period

42,063

6,132

48,195

48,878

7,907

56,785

37,106

3,791

40,897

5,287

541

5,828

Net cash provided by operating activities

8,694

831

9,525

7,970

409

8,379

4,036

243

4,279

575

610

Less: Capital expenditures

(3,525)

(4)

(3,529)

(2,090)

(28)

(2,118)

(1,637)

(8)

(1,645)

(233)

(1)

(234)

Free cash flow

5,169

827

5,996

5,880

381

6,261

2,399

235

2,634

342

376

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

September 30, 2023 (RMB)

June 30, 2024 (RMB)

September 30, 2024 (RMB)

September 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

5,498

747

6,274

5,608

342

5,944

5,694

239

5,925

811

844

Add: Share-based compensation expenses

1,129

146

1,275

1,354

158

1,512

915

129

1,044

131

149

Add: Amortization and impairment of intangible assets(1)

–

Operating income (non-GAAP)

6,672

895

7,596

7,005

501

7,500

6,652

370

7,014

948

999

Add: Depreciation of fixed assets

1,841

1,909

1,612

1,647

1,684

1,719

240

245

Adjusted EBITDA

8,513

963

9,505

8,617

536

9,147

8,336

405

8,733

1,188

1,244

Net income attributable to Baidu

6,436

476

6,681

5,462

5,488

7,536

229

7,632

1,074

1,088

Add: Share-based compensation expenses

1,128

146

1,194

1,353

158

1,425

914

129

972

130

138

Add: Amortization and impairment of intangible assets(1)

–

Add: Disposal (gain) loss

(753)

–

(753)

(30)

–

(30)

(1,501)

(1,491)

(214)

(212)

Add: Impairment of long-term investments

–

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

(384)

(2)

(385)

531

(1,361)

(1,358)

(194)

Add: Reconciling items on equity method investments(2)

572

–

572

–

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

(132)

–

(132)

(176)

–

(176)

–

Net income attributable to Baidu (non-GAAP)

6,956

622

7,267

7,290

247

7,396

5,676

480

5,886

809

839

Diluted earnings per ADS

18.22

15.01

21.60

3.08

Add: Accretion of the redeemable noncontrolling

interests

0.53

0.57

0.01

–

Add: Non-GAAP adjustments to earnings per ADS

1.65

5.44

(5.01)

(0.71)

Diluted earnings per ADS (non-GAAP)

20.40

21.02

16.60

2.37

(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

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SOURCE Baidu, Inc.

Technology

Galaxy Digital Inc. Announces Pricing of $3.507 Billion of Senior Secured Notes

Published

3 minutes ago

July 24, 2026

NEW YORK, July 23, 2026 /PRNewswire/ — Galaxy Digital Inc. (NASDAQ: GLXY) (“Galaxy” or the “Company”), a global leader in digital assets and data center infrastructure, today announced that its indirect wholly owned subsidiary, Galaxy Helios Data Centers II LLC (the “Issuer”), has priced a $3.507 billion private offering (the “Offering”) of 9.875% senior secured notes due 2031 (the “Notes”). The Offering is expected to close on July 28, 2026, subject to market and other conditions.

The Issuer intends to use the net proceeds from the Offering to finance a portion of the development and construction of two buildings containing eight data halls with a combined total of 400 megawatts (“MW”) of utility capacity and 260 MW of critical IT capacity (the “Project”) to be built on an approximately 260-acre property in Dickens County, Texas and to fund debt service reserves.

The Notes will bear interest at a rate of 9.875% per annum payable semi-annually in cash in arrears on February 1 and August 1 of each year, beginning on February 1, 2027 and will mature on August 1, 2031. The Notes will amortize at a rate of 4.00% per annum of the original principal amount subject to adjustment, with amortization payments payable semi-annually with the first payment date to occur at least ten months after the completion of the Project.

The Notes will be fully and unconditionally guaranteed by Galaxy Helios II LLC, a wholly owned direct subsidiary of the Issuer (the “Guarantor”), and will constitute the senior secured obligations of the Issuer and the Guarantor. The Notes and related note guarantee will be secured by first-priority liens on (i) substantially all assets of the Issuer and the Guarantor, other than certain excluded property and (ii) all equity interests of the Issuer held by the direct parent company of the Issuer.

The Offering is subject to market and other conditions, and there can be no assurance as to whether, when or on what terms the Offering may be completed.

The Notes have not been registered under the Securities Act or the securities laws of any other jurisdiction, and the Notes may not be offered or sold in the United States absent registration or an applicable exemption from registration under the Securities Act and any applicable state securities laws. The Notes will be offered only to persons reasonably believed to be qualified institutional buyers under Rule 144A under the Securities Act and outside the United States to non-U.S. persons in reliance on Regulation S under the Securities Act.

This press release shall not constitute an offer to sell, or a solicitation of an offer to buy the Notes, nor shall there be any sale of the Notes in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Galaxy

Galaxy Digital Inc. (Nasdaq: GLXY) is a global leader in digital assets and data center infrastructure, delivering solutions that accelerate progress in finance and artificial intelligence. Our digital assets platform offers institutional access to trading, advisory, asset management, staking, self-custody, and tokenization technology. In addition, we develop and operate cutting-edge data center infrastructure to power AI and HPC workloads. Our 1.63 GW Helios campus in Texas positions Galaxy among the largest and fastest-growing data center developers in North America. The Company is headquartered in New York City, with offices across North America, Europe, the Middle East, and Asia.

Forward Looking Statements

This press release includes forward-looking statements, including statements relating to the completion, size and timing of the Offering, the terms of the Notes and the intended use of proceeds. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with these safe harbor provisions. Forward-looking statements represent the Company’s current expectations regarding future events and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those implied by the forward-looking statements. Among those risks and uncertainties are market conditions, including market interest rates, the satisfaction of the closing conditions related to the Offering and risks relating to the Company’s business, including those described in periodic reports that the Company files from time to time with the SEC. The Issuer may not consummate the proposed Offering described in this press release and, if the proposed Offering is consummated, cannot provide any assurances regarding the final terms of the Offering or the Notes or its ability to effectively apply the net proceeds as described above. The forward-looking statements included in this press release speak only as of the date of this press release, and the Company does not undertake to update the statements included in this press release for subsequent developments, whether as a result of new information, future events, or otherwise, except as may be required by law.

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SOURCE Galaxy Digital Inc.

Technology

The Finish Line that Changed China: Retracing the Long March to Yan’an

Published

3 minutes ago

July 24, 2026

BEIJING, July 23, 2026 /PRNewswire/ — A news report from China.org.cn on the Long March, and what it means for China today:

Every journey has a destination.

But some destinations become the beginning of something even greater.

This is Yan’an.

Over 90 years ago, an army of soldiers embarked from Yudu, Jiangxi Province, on a journey that would go down in history.

They crossed snow-capped mountains, vast grasslands and raging rivers, eventually arriving in northern Shaanxi.

Across this grueling 12,500-kilometer journey, they wrote a magnificent epic in human history with willpower and courage.

Here, their Long March came to a victorious end. But a new chapter of history was only beginning.

In Yan’an, the Red Army found time to recover and rebuild, and the Central Committee of the Communist Party of China regrouped, gathering strength for the next chapter.

Here, new ideas were debated, new strategies were shaped, and a vision for China’s future gradually took form.

Today, while preserving its revolutionary legacy, Yan’an has grown into a vibrant, modern city — with a greener environment, thriving industries and happier lives for its people.

Nearly 90 years ago, American journalist Edgar Snow came to northern Shaanxi, seeking to uncover a story that few outside China knew. He later chronicled it in his book “Red Star Over China,” which carried the story of the Long March to the world.

Today, people from around the world are once again retracing those steps.

As part of China International Communications Group (CICG)’s “Together on the Long March” international communication project, participants have spent more than a month retracing the route across six key regions.

From Jiangxi to Shaanxi, they followed the Red Army’s journey and witnessed the remarkable changes that have taken place along the way.

I asked them one simple question: What does this journey mean to you?

Zhavier Harris, marketing and communications manager at the Springfield Urban League, said conversations with local residents and descendants of the Red Army made history feel far more immediate than he had expected.

He said history isn’t as distant as we often think. “We’re only one or two generations from these great sacrifices that led to the development and the greatness that we see from the Communist Party of China and China as a whole.”

David Ferguson, honorary chief English editor at Foreign Languages Press under CICG and a recipient of the 2021 Chinese Government Friendship Award, said the journey deepened his understanding of the Long March.

He said the journey helped him understand not only the historical facts, but also what the Red Army endured. “If you see the Long March merely as a military campaign, it ended in Yan’an. But as a spirit, it has never truly come to an end.”

We came to retrace history. We leave with something more: a deeper understanding of China’s past, a clearer view of its present, and perhaps a greater appreciation for the stories that connect us across cultures.

Edgar Snow called the Long March “an Odyssey unequalled in modern times.” He believed that what sustained it was a flame — consisting of an undimmed ardor, an undying hope and an amazing revolutionary optimism.

Ninety years later, that flame still burns.

Passed down through generations, the spirit of the Long March continues to light China’s path forward.

And as it crosses borders and cultures, it offers the world a glimpse of a nation defined by resilience, perseverance and an enduring drive to move forward.

China Mosaic
http://www.china.org.cn/video/node_7230027.htm

The Finish Line that Changed China: Retracing the Long March to Yan’an
http://www.china.org.cn/video/2026-07/23/content_118614941.shtml

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SOURCE China.org.cn

Technology

Visa and Lianlian Advance Trusted B2B Agentic Commerce Through LoopXPay’s First Live B2B Agentic Transaction

Published

3 minutes ago

July 24, 2026

First live B2B agentic transaction in Greater China highlights how AI-enabled commerce can help SMBs streamline purchasing and payments, supported by Visa’s Agentic Directory for trusted AI agent interactions

SINGAPORE, July 24, 2026 /PRNewswire/ — Visa (NYSE: V), a global leader in digital payments, and Lianlian DigiTech Co., Ltd. (“Lianlian”), an AI-native global financial infrastructure provider, today announced the first live B2B agentic transaction completed using LoopXPay, Lianlian’s AI agent.

Small and medium sized businesses (SMBs) often lack dedicated procurement teams and spend valuable time sourcing, purchasing and making payments themselves. In the transaction, the LoopXPay agent was used to source a product sample from a supplier and complete the purchase in a single workflow. The agent identified the purchasing requirement, recommended suitable suppliers, compared options, placed the order and securely executed the payment within a single workflow, while operating within pre-defined spending controls and approval parameters.

The milestone highlights how AI-powered commerce experiences can help SMBs simplify purchasing and payment activities while maintaining appropriate controls and oversight. By enabling AI agents to operate within pre-defined spending parameters and approval controls, businesses can reduce manual effort while retaining visibility into commercial decision-making.

As AI agents become more involved in purchasing and payment activities, businesses will require confidence that transactions are being executed by verified participants, within approved parameters and with appropriate oversight. Capabilities aligned with Visa’s Trusted Agent Protocol can help provide the identity, transparency and controls needed to support these interactions.

As part of the collaboration, LoopXPay has been registered in Visa’s Agentic Directory, enabling participating businesses and merchants to identify verified AI agents within the ecosystem. Supporting the implementation of Visa’s Trusted Agent Protocol, the Agentic Directory helps provide greater transparency into agent-driven interactions and confidence that participating agents have met Visa’s requirements.

“AI-powered commerce experiences can help businesses simplify purchasing and payments while maintaining the controls and oversight they require,” said Darren Parslow, Global Head, Visa Commercial Solutions, Visa. “For SMBs, that means less complexity in managing day-to-day commercial activities and more time focused on growth. As businesses increasingly look to embed intelligence into purchasing and payment experiences, trust will become a critical enabler of adoption. Through our collaboration with Lianlian, we are helping advance the trusted foundations that businesses will need to participate in this next era of commerce with confidence.”

Building on this milestone, Visa and Lianlian are exploring how AI agents can support a broader range of commercial activities, including procurement, digital advertising optimisation and B2B platform payments, helping advance trusted commerce through greater efficiency, transparency and control.

Zhang Zhengyu, Founder, Chairman of the Board and CEO, Lianlian DigiTech, said, “AI is reshaping the entire commercial value chain, where a growing number of business activities will be autonomously executed by AI agents, with payments serving as the critical infrastructure connecting them to global commerce. Leveraging its experience in global cross-border payments, compliance, as well as payment network, LianLian is actively building AI-native financial infrastructure, delivering an integrated suite of capabilities for the Agent Economy, spanning identity verification, transaction authorisation, intelligent payment, and global fund settlement. Through this collaboration with Visa, we aim to combine Lianlian’s AI-native capabilities with Visa’s trusted global network and commercial payment expertise to help businesses transact more securely, intelligently and efficiently in an increasingly agent-driven commerce environment.”

About Visa

Visa (NYSE: V) is a world leader in digital payments, facilitating transactions between consumers, sellers, financial institutions and government entities across more than 200 countries and territories. Our mission is to connect the world through the most innovative, convenient, reliable and secure payments network, enabling individuals, businesses and economies to thrive. We believe that economies that include everyone everywhere, uplift everyone everywhere and see access as foundational to the future of money movement. Learn more at Visa.com.

About Lianlian

Lianlian DigiTech Co., Ltd. (“Lianlian DigiTech” or “Lianlian”) was founded in 2009 and listed on the Main Board of the Hong Kong Stock Exchange in 2024 (stock code: 2598.HK). As China’s leading global provider of digital and intelligent payment services, Lianlian adheres to its mission of “Connecting the world, empowering global commerce” and pursues an “AI-Native + Globalization” strategy. The Company is committed to building a trusted global intelligent financial infrastructure, enabling seamless connectivity between Chinese enterprises and global businesses. As of now, Lianlian has established a global licensing portfolio comprising 68 payment licenses and related qualifications, and holds a VATP license issued by the Hong Kong SFC. It supports services in more than 200 countries and regions and enables transaction settlement in over 140 currencies, connecting over 180 global e-commerce platforms and serving a cumulative total of over 13.3 million customers. Learn more at www.lianlian.com.

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SOURCE Visa Worldwide Pte. Limited