Shulou(Shulou.com)11/24 Report--

According to news on August 30, today, Baidu (NASDAQ:BIDU,HKEX: 9888) released its unaudited financial results for the second quarter ended June 30, 2022. In the second quarter, Baidu achieved revenue of 29.647 billion yuan; second-quarter net profit was 3.637 billion yuan, compared with a net loss of 583 million yuan in the same period last year; and the net profit attributed to Baidu (non-GAAP) reached 5.541 billion yuan, up 3% from a year earlier and 43% from a month earlier.

After the release of the results, Robin Li, founder, chairman and CEO of Baidu, issued an internal letter saying, "fully recognize the difficulties and fully consider this premise in every work decision."

Li Yanhong also stressed, "in difficult times, we should also have rational confidence." for so many years, Baidu has been trying to change the world with technology and use technology to make the complex world simpler. The value that technology brings to people's lives and social production efficiency is certain. "

The following is the full text of the internal letter:

Dear students of Baidu,

Today, Baidu released its unaudited financial results for the second quarter ended June 30. In the second quarter, Baidu achieved revenue of 29.647 billion yuan; the net profit attributed to Baidu (non-GAAP) reached 5.541 billion yuan, an increase of 3% over the same period last year and 43% month-on-month growth, exceeding market expectations.

I believe everyone has deeply felt the difficulties and challenges of the macro environment. In the simple appointment of Baidu a few days ago, the students also talked about this issue. We should fully recognize the difficulties and fully consider this premise in every work decision. But in difficult times, we should also have rational confidence. Over the years, Baidu has been trying to change the world with technology and make the complex world easier with technology. The value that technology brings to people's life and social production efficiency is determined. Our years of accumulation and long-term investment in technology have made people feel more and more that Baidu can provide unique value.

China's digital and intelligent transformation provides a huge growth opportunity for Baidu.

China's digital and intelligent transformation is still in its infancy, organizations are eager to use technology to improve efficiency and productivity, and we are on a track with long-term dividends. But among them, we need to find out the real variables and analyze how many factors Baidu's technology can play a key role. For example, we propose that intelligent transportation can improve efficiency by adjusting traffic lights because we have the courage to say so because we have seen that Baidu's accumulation on AI for so many years can play a key role.

In recent years, Baidu Smart Cloud has cut into the core scenarios of key industries such as manufacturing, water, energy, transportation and public utilities, accumulating industry experience, and then precipitating the general demand of different industries into AI products. Through AI innovation to achieve cross-industry replication of similar cases, Baidu smart cloud profit performance has been further optimized. In the second quarter, Baidu Intelligent Cloud led the industry again, with revenue growing 31% year-on-year and 10% month-on-month, accounting for a further increase in Baidu's core revenue. If we continue to do so, Baidu Smart Cloud will become more competitive in China's digital and intelligent transformation.

Apollo has taken a critical step in building a revolutionary business model and accelerating expansion.

The target mass production cost of the Apollo RT6 we launched in July is only 250000 yuan, which is equivalent to the price of an ordinary new energy vehicle. The sharp drop in the cost of self-driving cars has enabled us to deploy tens of thousands of such cars across the country. In August this year, radish Express opened completely unmanned business operations in Chongqing and Wuhan, and Baidu became the first and only company in China to provide completely self-driving travel services to the public on open roads.

The reduction of vehicle costs and labor costs will accelerate the expansion of radish fast running. Large-scale operation can better drive technological progress and provide more favorable conditions for us to further improve L4 self-driving technology.

The operation scale of radish express continued to expand in the second quarter, providing 287,000 rides, an increase of nearly 500% over the same period last year. As of July 20, 2022, the cumulative order volume of radish fast running has reached 1 million, making it the world's largest self-driving travel service provider. In Yizhuang, Beijing, radish fast running has become an important way for citizens to travel every day, accounting for about 10% of the online ride-hailing market share in Yizhuang area.

Under the blessing of AI technology and lean operation, Baidu Mobile ecology is more prosperous, and the operational efficiency continues to improve. In June, the number of monthly active users of Baidu App reached 628 million, up 8 per cent from a year earlier, with 84 per cent of daily login users.

These achievements also benefit from the continuous improvement of our organizational capacity.

We carried out a new round of high-level cross-BG rotation in May this year. As a result, Baidu's organizational ability is more mature. We have a stable and excellent management team, and we have made great progress in rejuvenating senior executives, and we will fully trust and empower young talents. A quarterly survey of 30,000 employees shows that compared with the previous quarter, employee morale has improved significantly in this quarter, students are full of confidence in their department to achieve the set business goals, and the department is more cohesive and centripetal. More determined to overcome difficulties.

Only when we have a clear direction can we take the right course; only when we keep up with our thoughts can we put it into action. Make a good upper-hand move and take the initiative; if you make progress in the midst of stability, you will achieve something.

Robin

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