Baidu's long -termist strategy effect is highlighting: the second and third curves are growing rapidly

On August 30, Baidu released the second quarter of 2022 financial reports. The financial report data shows that Baidu develops in the context of the macro environment, and revenue data exceeds market expectations. The result of this data is also the result of Baidu's practice of long -termism and adhering to the technology.

Performance retrograde growth

In the second quarter, Baidu achieved revenue of 29.647 billion yuan; net profit attributable to Baidu (non -American general accounting standards) reached 5.541 billion yuan, an increase of 3%year -on -year, an increase of 43%month -on -month. From the perspective of the overall performance of the financial report, Baidu's continuous and healthy income model brings more possibilities to the company.

"Although the domestic new crown epidemic has repeatedly disturbed the macro economy, Baidu's core generated 23.2 billion yuan in the second quarter, of which Baidu Smart Cloud revenue maintained a rapid growth momentum, an increase of 31%year -on -year, and a 10%month -on -month increase." Baidu founder and chairman of the chairman Li Yanhong, also CEO Li Yanhong, said, "Radish running is still the world's largest autonomous driving travel service provider. In the second quarter, radish running completed 287,000 orders. Yizhuang's normalized travel method. In addition, radish running quickly achieved milestone results. For the first time, it provided unmanned operations on the open road of Chongqing and Wuhan. Running a large -scale deployment. "

Baidu Chief Financial Officer Luo Rong said: "In the second quarter, because we are committed to reducing costs and efficiency, and improving operating efficiency, Baidu's core operating profit margin under non -US general accounting standards is 22%, which is compared to the first quarter of 2022 17%have risen. Looking forward to the future, we are still committed to healthy and sustainable high -quality income growth and business models. "

Baidu's long -term pressure, marathon investment and accumulation have ushered in return. Baidu ranked first in China for four consecutive years in terms of AI patent applications and authorization volume. In 2021, Baidu's deep learning patent applications and the number of autonomous driving patents all ranked first in the world. In 2021, Baidu won the only Chinese patent gold award in the field of artificial intelligence interaction, becoming a high -tech enterprise with the highest and highest award -winning level in the field of artificial intelligence.

The second curve growth leadership industry

Baidu's strong toughness is not only reflected in the stable growth of the original business, but also in Baidu's second and third growth curve to show amazing explosive power.

As the second growth curve of Baidu, the intelligent cloud business led the industry again in the second quarter. The revenue increased by 31%year -on -year and 10%month -on -month, accounting for further increase in Baidu's core income ratio.

The Canalys report shows that China's cloud infrastructure service market increased by 45%in 2021, and Baidu Smart Cloud increased by 55%year -on -year, exceeding the industry average. In Q1 Baidu Intelligent Cloud's year -on -year growth rate was 43%year -on -year, which was twice the market average growth rate.

Zhu Keli, the founder of the founding dean of the National Research Institute of Economic Research and the chief researcher of the New Economic Think Tank (CINE), and the Dean of the Bay Area New Economic Research Institute, said: "From the perspective of the second quarter financial report, Baidu's market share and" The key indicators such as income growth performed well, and the intelligent cloud selected long -term large -scale investment in technology research and development, and made a technical base for a stable cloud and wisdom. According to the financial report, Baidu Smart Cloud's past technological investment has begun to transform into growth dividends. "

The Ministry of Industry and Information Technology released a list of new cross -industry internet industrial Internet platforms (referred to as "double -crossing" platforms) in 2022. Baidu Smart Cloud Kaibu was selected as the "National Team" for the first time.

From the perspective of landing, Baidu Smart Cloud has already had successful cases in many fields. Specific to smart traffic scenarios, as of the end of the second quarter, based on the cumulative contract amount of more than 10 million yuan, Baidu ACE intelligent traffic solutions have been adopted by 51 cities, and the coverage has continued to increase compared with 20 cities a year ago. For example, in the industrial field, Baidu Smart Cloud already has an exclusive lead. In 2021, Baidu launched the industrial Internet platform "Kaishou", which is characterized by "AI+Industrial Internet", providing an overall solution of Yunzhi integration for industrial enterprises such as manufacturing, energy, water affairs, industrial chain and regional industrial clusters to reduce the application of enterprise landing applications The threshold for artificial intelligence. As of now, the "Kaifang" Industrial Internet Platform has established cooperation with more than 300 benchmarking companies in more than 22 industries such as 3C, automobiles, electronics, energy and power, equipment manufacturing, steel, chemical, and water services to build more than 180,000 industrial enterprises Provide services, deeply landed in 16 areas including Guiyang, Chongqing, Tongxiang, Suzhou, Guangzhou, Ningbo.

Specifically on the AI ​​cloud, Baidu Smart Cloud is already a well -deserved industry leader. In June 2022, IDC released the "2021H2 China AI Cloud Service Market Research Report". Baidu Smart Cloud has won the first place in the AI ​​public cloud service market 6 consecutive times. In terms of application, on August 3 this year, Baidu Smart Cloud Chongqing Industrial Internet Platform was launched. Baidu Intelligent Cloud Chongqing Industrial Internet Platform will reduce the threshold of enterprises using AI capabilities and application industrial digital systems, and create intelligent applications that meet the needs of core scenes. At the same time, enterprises can achieve interoperability of supply chain information through the platform, and achieve the synergy effect of upstream and downstream.

Sustainable growth

In the environment where challenges and development coexist, Baidu's mobile ecological business focuses on high -quality and efficient operations, relying on more flexible search advertisements, and once again achieve considerable profit margins. In terms of revenue structure, non -network marketing revenue has grown rapidly. In the second quarter, revenue was 6.1 billion yuan, a year -on -year increase of 22%, mainly due to the promotion of Baidu Smart Cloud and other artificial intelligence services.

The scale of mobile ecological users has increased steadily. In June, the number of monthly active users of Baidu APP reached 628 million, an increase of 8%year -on -year, and the number of users accounted for 84%. At the same time, the mobile ecological interaction volume has further increased. In the second quarter, Baidu app searched the number of query queries and information flow content in the second quarter to achieve double -digit growth year -on -year. As the advertising market has gradually recovered, mobile ecological business will recover again.

A healthier revenue structure also makes Baidu's business model more sustainable.

The mobile ecological business continues to produce strong cash flow. On the whole, Baidu recorded a free cash flow of 5.5 billion yuan in the second quarter. Its health and sustainable business model provided long -term development momentum for Baidu for smart clouds and smart driving.

From the perspective of investment, Baidu, which insists on long -termism, has invested in Baidu's core R & D for 7 consecutive quarters to account for more than 20%of Baidu's core income. Technology has always been a weapon for Baidu to deal with challenges and seize opportunities. The pressure -intensive and marathon R & D investment ushered in flowering.

For example, in the field of autonomous driving, Baidu's advantages are further expanding. In the second quarter, the scale of radish running operations on Baidu's autonomous driving service platform continued to expand, providing 287,000 ride services, an increase of nearly 500%year -on -year. As of July 20, 2022, the cumulative order volume of radish running reached 1 million orders, which has stabilized the world's largest self -driving travel service provider.

In terms of products, Baidu once again achieved rapid updates.

At the 2022 Baidu World Conference, Baidu released the sixth generation of production unmanned cars -APollo RT6. Based on the major breakthrough of autonomous driving technology, APOLLO RT6 not only has unmanned driving capabilities in urban complex roads, but also costs only 250,000 yuan. This also makes the cost of unmanned vehicles, the price range of electric vehicles in the mass market for the first time in China. According to the plan, Apollo RT6 will be put into operation at a certain scale in 2024, and takes the lead in running in radish. Its mass production will accelerate the large -scale deployment of unmanned vehicles and redefine cars and future travel methods. Radish running plans to expand its business to 65 cities by 2025, and by 2030 to 100 cities.

On the other hand, Baidu's unmanned commercial operations ushered in major policies. In August of this year, radish running quickly to open unmanned commercial operations in Chongqing and Wuhan. Baidu became the first company in China and the only company to provide the public with unmanned autonomous driving travel services on the open road.

Recognized by capital

The recognition of the capital market is also a proof that Baidu has continuous vitality and growth.

On August 19, the Hong Kong Hang Seng Index Co., Ltd. announced the quarterly review results of the Hang Seng Index series of the Hang Seng Index as of June 30, 2022. The four companies of Baidu Group, China Shenhua, Chow Tai Fook, and Hansen Pharmaceutical have been included in the Hang Seng Index. The new changes will take effect on September 5, 2022, and Baidu will also become the only AI company that has been included in the HSI.

As an important indicator of the Hong Kong stock market price, the Hang Seng Index is the most influential stock price index that reflects the fluctuation of the price of the Hong Kong stock market. Including the Hang Seng Index's ingredients, it can make enterprises get greater market influence and attract the attention of more investment institutions and the allocation of stock funds.

Zhu Keli believes that, given that the HSI has a relatively stringent threshold, the index is incorporated into Baidu, reflecting the attitude of Hong Kong stocks towards AI, and also shows the confidence of the HSI and the capital market for Baidu's performance.

Affected by this good news, Baidu rose 2.5%in front of the US stock market that day. In the case of the Nasdaq index fell 2.01%as a whole, the closing of the market still rose against 0.62%.

Baidu incorporates the Hang Seng Index, which means that the HSI's recognition of Baidu's performance and health, and the capital market is also optimistic about Baidu's future performance. Recently, funds such as the world's largest hedge fund bridge water fund, Canada's largest pension fund CPPIB have added positions to Baidu. Well -known securities firms Goldman Sachs, JP Morgan Chase, UBS, CICC, etc. all give Baidu "buy" rating.

Goldman Sachs said in the report in mid -July that it is still optimistic about Baidu's path to achieve profit growth through a relatively flexible advertising business (more than 40%of the operating profit margin), which will promote the rapid growth of Baidu's smart cloud and autonomous driving business. This will The two businesses are gradually taking off and obtained commercial returns. The cost control plan implemented from September 21 should help the company with stable profits for its advertising business, and the transition from the income portfolio that buffer profit dilution throughout the first quarter to the second quarter to the artificial intelligence cloud.

PaddlePaddle is now China's first and the world's third largest deep learning framework platform. Baidu DuerOS has reached cooperation with more than 160 models. As of 2Q22, a total of 3 million units (1.8 million units above 2Q21) were ranked first in market share.

Morgan Chase also stated in the report that Baidu's search advertisement may be more flexible in resisting the popularity of the new crown and macro adverse factors; the effect -based search advertisement brings higher return on investment.

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