Q2 2025 Baidu Inc Earnings Call

After management's prepared remarks, there will be a question and answer session.

Today's conference is being recorded.

If you have any objections you may disconnect at this time.

I'd now like to turn the meeting over to your host for today's conference Joanne Lim.

<unk> director of Investor Relations.

Hello, everyone and welcome to Baidu second quarter 2025 earnings Conference call.

Judy with tissue distributed earlier today, and you can find our website as well as on newswire services.

Today, we have Robin Li our co founder and CFO Jerome law, our EVP in charge of Baidu mobile ecosystem group in EG the ocean, our EVP in charge of Baidu AI Cloud group, ACG, and Henry Hi, Tien Ho our CFO. After our prepared remarks, we will hold a Q&A session. Please note.

Speaker #2: Hello, and thank you for standing by for Baidu's second quarter 2025 earnings conference call. At this time, all participants are in listen-only mode. After management's prepared remarks, there will be a question-and-answer session.

That is the discussion today will contain forward looking statements made under the safe Harbor provisions of the U S Credit Securities Litigation Reform Act of 1995.

Speaker #2: Today's conference is being recorded. If you have any objections, you may disconnect at this time. I would now like to turn the meeting over to your host for today's conference, Juan Lin.

Forward looking statements are subject to risks and uncertainties that may cause actual results to differ maturity from our current expectations for detailed discussions of these risks and uncertainties. Please refer to our latest annual report and other filings with SEC and Hong Kong stock Exchange Baidu does not undertake any obligation to update any forward looking statements except as.

Speaker #2: Baidu's Director of Investor Relations.

Speaker #3: Hello, everyone, and welcome to Baidu's second quarter 2025 earnings conference call. Baidu's earnings release was distributed earlier today, and you can find a copy on our website, as well as on news to our services.

Rong Luo: Hello, everyone, and welcome to Baidu's second quarter 2025 earnings conference call. Baidu's earnings release was distributed earlier today, and you can find the conference on our website, as well as on our newsletter services. On the call today, we have Robin Li, our Co-founder and CEO; Rong Luo, our Executive Vice President in charge of Baidu Motor Ecosystem Group, MEG; Dou Shen, our Executive Vice President in charge of Baidu AI Cloud Group, ACG; and Henry Hai Jianhe, our CFO. After our prepared remarks, we will hold a Q&A session. Please note that the discussion today will contain forward-looking statements made under the safe harbor provisions of the U.S. Credit Security Litigation Reform Act of 1995. Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from our current expectations.

Required under applicable law, our earnings press release and these call include discussions of certain unaudited non-GAAP financial measures. Our press release contains a reconciliation of the unaudited non-GAAP measures to the unaudited most directly comparable GAAP measures and is available on our IR website at IR Baidu Dot com.

Speaker #3: On the call today, we have Robin Lee, our co-founder and CEO, and Rong Luo, our EVP in charge of Baidu Mobile Ecosystem Group (MEG).

Speaker #3: Dou Shen, our EVP in charge of Baidu AI Cloud Group (ACG), and Henry Hai Jianhe, our CFO. After our prepared remarks, we will hold a Q&A session.

As a reminder, this conference is being recorded in addition, a webcast of this conference call will be available on Baidu with Iowa, SEC I will now turn the call over to our CEO Robin.

Speaker #3: Please note that the discussion today will contain forward-looking statements, made under the Safe Harbor provisions of the US Credit Security Litigation Reform Act of 1995.

Hello, everyone in Q2, I do of course total revenue.

It was RMB $26 3 billion.

<unk> continued to gain momentum.

Speaker #3: Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from our current expectations. For detailed discussions of these risks and uncertainties, please refer to our latest annual report and other filings with the SEC and the Hong Kong Stock Exchange.

27% year over year to RMB, six 5 billion.

Rong Luo: For detailed discussions of these risks and uncertainties, please refer to our latest annual report and other filings with the SEC and Hong Kong Stock Exchange. Baidu does not undertake any obligation to update any statements except as required under applicable law. Our earnings press release and this call include discussions of certain unaudited non-GAAP financial measures. Our press release contains a reconciliation of the unaudited non-GAAP measures to the unaudited most directly comparable GAAP measures and is available on our IR website at ir.baidu.com. As a reminder, this conference is being recorded. In addition, a webcast of this conference call will be available on Baidu's IR website. I will now turn the call over to our CEO, Robin.

Notably Baidu Core's long online marketing revenue exceeded RMB 10 billion for the first time.

Speaker #3: Baidu does not undertake any obligation to update any forward-looking statements, except as required under applicable law. Our earnings press release and this call include discussions of certain unaudited non-GAAP financial measures.

That's up 34% year over year.

This performance helped offset the near term headwinds in our online marketing business.

Yes.

This year marks baidu, 20th anniversary as a public company.

Speaker #3: Our press release contains a reconciliation of the unaudited non-GAAP measures to the unaudited most directly comparable GAAP measures and is available on our IR website at ir.baidu.com.

Over the past two decades, we've remained grounded in our belief in technology and innovation.

Hey, technological advancement is.

Speaker #3: As a reminder, this conference is being recorded. In addition, a webcast of this conference call will be available on Baidu's IR website. I will now turn the call over to our CEO, Robin.

Floating at an unprecedented pace.

We've embraced the.

Mega trend with open minds.

Experiment in boldly adapting quickly and engaging deeply with AI from peers.

Speaker #4: Hello, everyone. In Q2, Baidu's total revenue was RMB 26.3 billion. Our AI Cloud continued to gain momentum, growing 27% year-over-year to RMB 6.5 billion.

Robin Li: Hello, everyone. In Q4, Baidu's total revenue was RMB 26.3 billion. Our AI Cloud business continued to gain momentum, growing 27% year over year to RMB 6.5 billion. Notably, Baidu's Q4 non-online marketing revenue exceeded RMB 10 billion for the first time. That is up 34% year over year. This performance helped offset the near-term headwinds in our online marketing business. This year marks Baidu's 20th anniversary as a public company. Over the past two decades, we have remained grounded in our belief in technology and innovation. Today, technological advancement is unfolding at an unprecedented pace. We have embraced the megatrend with an open mind, experimenting boldly, adapting quickly, and engaging deeply with AI frontiers. Amid rapid evolution, we have identified and doubled down on a few directions we believe hold the greatest long-term value and are deepening our efforts with increasing clarity and confidence.

Amit rapid evolution, we've identified and double down on a few directions.

We believe holds the greatest long term value.

And our deepening our efforts with increasing clarity and confidence.

Speaker #4: Notably, Baidu's quarterly non-online marketing revenue exceeded RMB 10 billion for the first time. That's up 34% year-over-year. This performance helped offset the near-term headwinds in our online marketing business.

Foundation model development remains a key focus area, where we are actively exploring the frontier.

Asian model research and pushing the boundaries of AI capabilities.

Speaker #4: This year marks Baidu's 20th anniversary as a public company. Over the past two decades, we've remained grounded in our belief in technology and innovation.

If they see an application driven approach with tier earnings acceleration toward areas with real world application value.

Such as the fundamental AI transformation of Baidu search and our industry, leading digital human technology.

Speaker #4: Today, technological advancement is unfolding at an unprecedented pace. We've embraced the megatrend with open minds, experimenting boldly, adapting quickly, and engaging deeply with AI frontiers.

Take a digital human as a Prime example, which represents one of the best applications of our <unk> models.

This quarter powered by Ernie or digital human technology reached new levels of wellness.

Speaker #4: Amid rapid evolution, we've identified and doubled down on a few directions we believe hold the greatest long-term value. And are deepening our efforts with increasing clarity and confidence.

And capabilities.

Matching or even exceeding human performance in certain scenarios.

A standout case was a livestream featuring the digital human off volume call top Influencer in China.

Speaker #4: Foundation model development remains a key focus area where we are actively exploring the frontier of foundation model research and pushing the boundaries of AI capabilities.

Robin Li: Foundation model development remains a key focus area where we are actively exploring the frontier of foundation model research and pushing the boundaries of AI capabilities. With an application-driven approach, we steer ERNIE iteration toward areas with real-world application value, such as the fundamental AI transformation of Baidu Search and our industry-leading Digital Human technology. Take Digital Human as a prime example, which represents one of the best applications of our ERNIE models. This quarter, powered by ERNIE, our Digital Human technology reached new levels of realism and capabilities, matching or even exceeding human performance in certain scenarios. A standout case was a livestream featuring the Digital Human of Luo Yunhao, a top influencer in China. The seven-hour livestream generated tens of millions in GMV, fully powered by ERNIE series models.

The seven hour livestream generated tens of millions in GMB fully.

<unk> fully powered by or any series models.

Only four five turbo generated the complete script.

Speaker #4: With an application-driven approach, we steer earnings iteration toward areas with real-world application value, such as the fundamental AI transformation of Baidu Search and our industry-leading digital human technology.

Including dialogue tune and accident queues.

Closely mirroring the real person communication style.

Our multimodal capabilities delivered industry, leading in visual realism, with nuanced facial expressions and gestures and body movements that responded naturally to conversation flow in real time.

Speaker #4: Take digital humans as a prime example, which represent one of the best applications of our early models. This quarter, powered by earnings, our digital human technology reached new levels of realism and capabilities.

Achieving next level performance that sets new standards in document technology.

Beyond this flagship case digital humans are empowering our broader merchant base.

Speaker #4: Matching or even exceeding human performance in certain scenarios. A standout case was a live stream featuring the digital human of Luo Yonghao, a top influencer in China.

Performance that already surpasses humans live streaming hosts in many scenarios.

Going forward, we will continue accelerating foundation model integration.

Speaker #4: The seven-hour live stream generated tens of millions in GMV. Fully powered by earnings series models. Earnings 4.5 turbo generated the complete script. Including dialogue, tone, and action cues.

Typically focusing our efforts on areas with application value, where we can maintain our most competitive capabilities.

Robin Li: ERNIE 4.5 Turbo generated the complete script, including dialogue, tone, and action cues, closely mirroring the real person's communication style. Our multi-modal capabilities delivered industry-leading visual realism with nuanced facial expressions, gestures, and body movements that responded naturally to conversation flow in real time, achieving next-level performance that sets new standards in Digital Human technology. Beyond this flagship case, Digital Humans are empowering our broader merchant base with performance that already surpasses human live streaming hosts in many scenarios. Going forward, we will continue accelerating foundation model iteration, strategically focusing our efforts on areas with application value where we can maintain our most competitive capabilities. Beyond the model capabilities, our unique four-layer end-to-end AI architecture has become a core competitive advantage and represents a key focus in our AI Cloud business, where our full stack AI capabilities are driving healthy growth.

Beyond the module capabilities are unique for linear end to end AI architecture has become a core competitive advantage and represent a key focus in our AI cloud where.

Speaker #4: Closely mirroring the real person's communication style, our multi-modal capabilities delivered industry-leading visual realism, with nuanced facial expressions, gestures, and body movements that responded naturally to the conversation flow in real time.

Our full stack AI capabilities are driving healthy growth.

As the infrastructure layer, we achieved a critical system engineering breakthrough this quarter by completing the largest scale stable deployment of prevail the cold separation architecture.

Speaker #4: Achieving next-level performance that sets new standards in digital human technology. Beyond this flagship case, digital humans are empowering our broader merchant base. With performance that already surpasses human live-streaming hosts.

This breakthrough significantly improves influence concurrency and resource utilization, while substantially reducing insurance cost.

Speaker #4: In many scenarios. Going forward, we will continue accelerating foundation model iteration. Strategically focusing our efforts on areas with application value where we can maintain our most competitive capabilities.

The achievement was made possible by the end to end optimization enabled by our unique four layer AI architecture spanning infrastructure framework models and applications.

Which allows us to coordinate improvements across all layers at the same time each layer remains open gaming customers flexible choices between Baidu is proprietary and third party options.

Speaker #4: Beyond the model capabilities, our unique four-layer end-to-end AI architecture has become a core competitive advantage and represents a key focus in our AI Cloud business.

As a result, we are continuously improving the cost effectiveness of our AI cloud products and solutions reinforcing our position as China's top tier cloud provider in the AI era.

Speaker #4: Where our full-stack AI capabilities are driving healthy growth. As the infrastructure layer, we achieved a critical system engineering breakthrough this quarter by completing the large-scale stable deployment of pre-sale decode separation architecture.

Robin Li: At the infrastructure layer, we achieved a critical system engineering breakthrough this quarter by completing the large-scale stable deployment of pre-filled decode separation architecture. This breakthrough significantly improves inference concurrency and resource utilization while substantially reducing inference costs. The achievement was made possible by the end-to-end optimization enabled by our unique four-layer AI architecture, spanning infrastructure, framework, models, and applications, which allows us to coordinate improvements across all layers. At the same time, each layer remains open, giving customers flexible choices between Baidu's proprietary and third-party options. As a result, we are continuously improving the cost-effectiveness of our AI Cloud products and solutions, reinforcing our position as China's top-tier cloud provider in the AI era. Meanwhile, our industry-leading math platform, Tianfen, continues to evolve to better support enterprise clients in building models and facilitating AI application development.

Meanwhile, our industry, leading mass platform.

Continuing to evolve to better support enterprise clients in building models and facilitating AI application development.

Speaker #4: This breakthrough significantly improves inference concurrency and resource utilization while substantially reducing inference costs. The achievement was made possible by the end-to-end optimization enabled by our unique four-layer AI architecture.

Shipment features a comprehensive model library, covering nearly all mainstream foundation models on the market.

This quarter, we further expanded our library, there's a re.

Range of new models, including our newly open sourced earning four five theories additional third party multimodal model and the other leading options, enabling greater flexibility across enterprise use cases.

Speaker #4: Spanning infrastructure, framework, models, and applications, this allows us to coordinate improvements across all layers. At the same time, each layer remains open, giving customers flexible choices between Baidu's proprietary and third-party options.

Leveraging our breakthrough in cloud infrastructure, chimp, and delivers enhanced stability higher concurrency and lower insurance costs when running models.

Speaker #4: As a result, we have continuously improved the cost-effectiveness of our AI Cloud products and solutions, reinforcing our position as China's top-tier cloud provider in the AI era.

Our superior price performance.

On the tool chain from Chevrons.

Children's tool change among the most comprehensive with industry, leading reinforcement learning and post training tools for model development.

Speaker #4: Meanwhile, our industry-leading mass platform, Samsung, continued to evolve to better support enterprise clients in building models and facilitating AI application development. Samsung features a comprehensive model library covering nearly all mainstream foundation models on the market.

In Q2, Kimpton was further enhanced to support a wider range of AI tools and function that can be called via MCP or API.

Robin Li: Tianfen features a comprehensive model library covering nearly all mainstream foundation models on the market. This quarter, we further expanded the library with a range of new models, including our newly open-sourced ERNIE 4.5 series, additional third-party multi-modal models, and other leading options, enabling greater flexibility across enterprise use cases. Leveraging our breakthrough in cloud infrastructure, Tianfen delivers enhanced stability, higher concurrency, and lower inference costs when running models, making our superior price performance. On the toolchain front, Tianfen's toolchains are among the most comprehensive, with industry-leading reinforcement learning and post-training tools for model development. In Q2, Tianfen was further enhanced to support a wider range of AI tools and functions that can be called via MCP or APIs, including Baidu's proprietary capabilities such as Baidu AI Search, Baidu Wiki, Baidu Maps, as well as selected third-party capabilities like payment services.

Including Baidu proprietary capabilities, such as Baidu AI search Baidu wiki baidu maps as well as selected third party capabilities like payment services.

Speaker #4: This quarter, we further expanded the library with a range of new models, including our newly open-sourced early 4.5 series, additional third-party multi-model models, and other leading options enabling greater flexibility across enterprise use cases.

This enhancement helps simplify AI application development and continue to solidify <unk> leadership, that's one of China's top mass platforms.

Speaker #4: Leveraging our breakthrough in cloud infrastructure, Samsung delivers enhanced stability, higher concurrency, and lower inference costs when running models, maintaining our superior price performance. On the toolchain front, Samsung's toolchains are among the most comprehensive.

Hunt is driving remains one of the most promising areas with long Investor day.

Which represents a critical frontier in physical World AI.

Following the successful validation of our business model at the end of last year Apollo goal is now scaling rapidly.

Speaker #4: With industry-leading reinforcement learning and post-training tools. For model development. In Q2, Samsung was further enhanced to support a wider range of AI tools and functions that can be called via MCP or APIs.

In Q2, Apollo gold provided over two 2 million fully drive early strides to the public.

Up 148% year over year.

Marking our strongest quarterly growth in two years.

Speaker #4: Including Baidu's proprietary capabilities such as Baidu AI Search, Baidu Wiki, Baidu Maps, as well as selected third-party capabilities like Payment Services. This enhancement helps simplify AI application development and continue to solidify Samsung's leadership as one of China's top mass platforms.

Also a political global expansion has gained solid momentum Tyler.

By two strategic partnerships with leading global ride hailing platforms.

Robin Li: This enhancement helps simplify AI application development and continues to solidify Tianfen's leadership as one of China's top math platforms. Autonomous driving remains one of the most promising areas we've long invested in, which represents a critical frontier in physical world AI. Following the successful validation of our earnings model at the end of last year, Apollo Go is now scaling rapidly. In Q2, Apollo Go provided over 2.2 million fully driverless rides to the public. That's up 148% year over year, marking our strongest quarterly growth in two years. Also, Apollo Go's global expansion has gained solid momentum, highlighted by two strategic partnerships with leading global ride-hailing platforms. In July, we announced a multi-year strategic partnership with Uber. Under this partnership, thousands of Apollo Go's fully autonomous vehicles will be deployed on the Uber platform across multiple international markets, with initial rollouts planned for Asia and the Middle East.

In July we announced a multiyear strategic partnership with Uber.

Under this partnership thousands of Apollo goes fully autonomous vehicles will be deployed on the Woodbury platform across multiple international markets with initial rollout plan for Asia and the Middle East.

Speaker #4: Upon striving, this remains one of the most promising areas we have long invested in. This represents a critical frontier in physical world AI. Following the successful validation of our business model at the end of last year, Apollo Go is now scaling rapidly.

This milestone was followed by our partnership with Lyft in August.

Which will also bring thousands of our fully autonomous vehicles, two key European markets through the Lyft platform, starting with Germany, and United Kingdom, and scaling across Europe overtime.

Speaker #4: In Q2, Apollo Go provided over 2.2 million fully driverless rides to the public. That's up 148% year-over-year, marking our strongest quarterly growth in two years.

Our expansion into international market dispute on a strong foundation.

In China, we have already achieved positive unit economics in markets, where ride fares are much lower than those in major overseas markets.

Speaker #4: Also, Apollo Go's global expansion has gained solid momentum, highlighted by two strategic partnerships with leading global ride-hailing platforms. In July, we announced a multi-year strategic partnership with Uber.

That's why this global partnerships, both logical and strategic positioning us to capture greater value in higher power markets, while scaling efficiently.

Speaker #4: Under this partnership, thousands of Apollo Go's fully autonomous vehicles will be deployed on the Uber platform across multiple international markets, with initial rollouts planned for Asia and the Middle East.

Our partners global market presence.

Leveraging our partners local market presence, we can accelerate market entry across different covenants and achieve faster deployment.

Speaker #4: This milestone was followed by our partnership with Lyft in August, which will also bring thousands of our fully autonomous vehicles to key European markets through the Lyft platform.

Robin Li: This milestone was followed by our partnership with Lyft in August, which will also bring thousands of our fully autonomous vehicles to key European markets through the Lyft platform, starting with Germany and the United Kingdom and scaling across Europe over time. Our expansion into international markets is built on a strong foundation. In China, we have already achieved positive unit economics in markets where ride fares are much lower than those in major overseas markets. That's why these global partnerships are both logical and strategic, positioning us to capture greater value in higher fare markets while scaling efficiently. Leveraging our partners' local market presence, we can accelerate market entry across different continents and achieve faster deployment while maintaining a cost-efficient asset-light business model. In markets we've already entered, we continue to make encouraging progress.

While maintaining our cost efficient asset light business model.

The markets. We've already entered we continue to making encouraging progress in Hong Kong one of the world's most complex right hand drive steady with.

Speaker #4: Starting with Germany and the United Kingdom, and scaling across Europe, over time. Our expansion into international markets is viewed on a strong foundation. In China, we have already achieved positive unit economics in markets where rideshares are much lower than those in major overseas markets.

We recently expanded our testing courage to include Tangshan and Southern district.

Advancing our open node testing into more complex urban scenarios across both commercial and residential areas.

Speaker #4: That's why this global partnerships are both logical and strategic. Positioning us to capture greater value in higher fare markets while scaling efficiently. Our partners global market presence.

Also we further strengthened our presence in the middle East.

In Dubai, and Abu Dhabi, We started open road testing in designated areas in August.

Notably our Pogo leads the world in right hand drive Robo taxi market.

Speaker #4: Leveraging our partners' local market presence, we can accelerate market entry across different continents and achieve faster deployment, while maintaining a cost-efficient, asset-light business model.

This is a space we're hardly any companies are kind of entered and we've made by far the most progress.

The rapid progress, we're making in Hong Kong really shows our global leadership.

Speaker #4: In markets we've already entered, we continue to make encouraging progress. In Hong Kong, one of the world's most complex right-hand drive cities, we recently expanded our testing coverage to include Zhongcheng and the Southern District.

It's proof of how of that double up our technology is and how mature our operations have become across all kinds of environments.

Robin Li: In Hong Kong, one of the world's most complex right-hand drive cities, we recently expanded our testing coverage to include Dongcheng and the Southern District, advancing our open road testing into more complex urban scenarios across both commercial and residential areas. Also, we further strengthened our presence in the Middle East. In Dubai and Abu Dhabi, we started open road testing in designated areas in August. Notably, Apollo Go leads the world in right-hand drive robotaxi markets. This is a space where hardly any companies of our kind have entered, and we have made by far the most progress. The rapid progress we are making in Hong Kong really shows our global leadership. It is proof of how adept our technology is and how mature our operations have become across all kinds of environments.

Our experience there provide us valuable insights for entering other right hand drive markets strengthening our confidence in scaling up our logo globally.

Speaker #4: Advancing our open-node testing into more complex urban scenarios, across both commercial and residential areas. Additionally, we further strengthened our presence in the Middle East.

The solid progress quarter by quarter, we are more confident than ever.

In Apollo goes international potential.

Speaker #4: In Dubai and Abu Dhabi, we started open road testing in designated areas in August. Notably, Apollo Go leads the world in right-hand drive robotaxi markets.

As China's largest autonomous ride hailing service provider and a global leader in this space.

<unk> continues industry, leading technology.

Hello go combine industry, leading technology extensive operational experience and the extraordinary safety records to bring safe comfortable and affordable autonomous ride hailing services to more markets worldwide.

Speaker #4: This is a space where hardly any companies of our kind have entered, and we've made by far the most progress. The rapid progress we're making in Hong Kong really shows our global leadership.

Anyone else.

Speaker #4: It's proof of how adept our our technology is, and how mature our operations have become across all kinds of environments. Our experience there provides us valuable insights, for entering other right-hand drive markets.

Our mobile ecosystem transforming our product with AI remains a strategic priority, especially our legacy consumer facing product Baidu search.

Robin Li: Our experience there provides us valuable insights for entering other right-hand drive markets, strengthening our confidence in scaling Apollo Go globally. With solid progress quarter by quarter, we are more confident than ever in Apollo Go's international potential. As China's largest autonomous ride-hailing service provider and a global leader in this space, Apollo Go continues industry-leading technology. Apollo Go combines industry-leading technology, extensive operational experience, and extraordinary safety records to bring safe, comfortable, and affordable autonomous ride-hailing services to more markets worldwide than anyone else. In our mobile ecosystem, transforming our products with AI remains a strategic priority, especially our legacy consumer-facing product, Baidu Search. Baidu is at the forefront of applying AI to transform search globally. Rather than simply inserting AI summaries into search results, we are fundamentally revolutionizing the search experience by completely replacing static textual hyperlinks with intelligent, structured, and multi-modal-first AI-generated responses.

Baidu is at the forefront of applying AI to transform surged globally.

Speaker #4: Strengthening our confidence in scaling Apollo Go globally. With solid progress quarter by quarter, we are more confident than ever in Apollo Go's international potential.

Rather than simply exerting AI summaries into search results.

Fundamentally revolutionizing the search experience by completely replacing static.

Speaker #4: As China's largest autonomous ride-hailing service provider and a global leader in this space, Apollo Go continues to leverage industry-leading technology. Apollo Go combines cutting-edge technology, extensive operational experience, and an extraordinary safety record to provide safe, comfortable, and affordable autonomous ride-hailing services to more markets worldwide than anyone else.

Textural hyper links with intelligent structured and multimodal first AI generated responses.

This responses start with relevant multimodal content right at the top.

Making complex information more accessible to a broader user base and therefore, creating a more intuitive experience.

In Q2, our AI transformation continued to accelerate with AI generated content, reaching over 50% of mobile search result pages by the end of June.

Speaker #4: In our mobile ecosystem, transforming our products with AI remains a strategic priority. Especially our legacy consumer-facing product, Baidu Search. Baidu is at the forefront of applying AI to transform search globally.

Up from 35% in April.

By July 64% of our mobile search result pages contained AI generated content presented in a structured and multimodal first format.

Speaker #4: Rather than simply inserting AI summaries into search results, we are fundamentally revolutionizing the search experience by completely replacing static textual hyperlinks with intelligent structured and multi-model first AI-generated responses.

Marking the broader rollout of our innovative AI search experience.

This AI transformation reached over 90% of Baidu apps monthly active users in July with over 60% of such search result pages, starting with reach media elements, such as images or videos.

Speaker #4: This response starts with relevant multimodal content right at the top, making complex information more accessible to a broader user base and therefore creating a more intuitive experience.

Robin Li: These responses start with relevant multi-modal content right at the top, making complex information more accessible to a broader user base and therefore creating a more intuitive experience. In Q2, our AI transformation continued to accelerate, with AI-generated content reaching over 50% of mobile search result pages by the end of June, up from 35% in April. By July, 64% of mobile search result pages contained AI-generated content presented in a structured and multi-modal-first format, marking the broader rollout of our innovative AI search experience. This AI transformation reached over 90% of Baidu App's monthly active users in July, with over 60% of such search result pages starting with rich media elements such as images or videos. As we advance our AI transformation, the expanding content ecosystem across Baidu provides meaningful support.

As we advance our AI transformation, the expanding content ecosystem across Baidu provides meaningful support.

Speaker #4: In Q2, our AI transformation continued to accelerate. With AI-generated content, reaching over 50% of mobile search result pages. By the end of June, up from 35% in April.

Leveraging ongoing progress in Chennai, and multimodal capabilities Baidu AI generated content has grown significantly in both scale and quality, providing more high quality content for search results.

Speaker #4: By July, 64% of mobile search result pages contained AI-generated content. Presented in a structured and multi-model first format. Marking the broader rollout of our innovative AI search experience.

AI generated multimodal content in particular has been rapid has seen rapid expansion.

For example, daily Aig's video generation reached millions of units starting from May and daily Juicy video distribution within Baidu App has grown rapidly.

Speaker #4: This AI transformation reached over 90% of Baidu App's monthly active users in July, with over 60% of search result pages starting with rich media elements such as images or videos.

We are delighted to see sustained improvements in user metrics in June Baidu App's, FAU reached 735 million, representing a 5% year over year growth. The daily average time spent per user in Q2.

Speaker #4: As we advance our AI transformation, the expanding content ecosystem across Baidu provides meaningful support. Leveraging ongoing progress in GenAI and multi-model capabilities, Baidu's AI-generated content has grown significantly in both sales and quality.

<unk> increased by 4% year over year.

Robin Li: Leveraging ongoing progress in GenAI and multi-modal capabilities, Baidu's AI-generated content has grown significantly in both scale and quality, providing more high-quality content for search results. AI-generated multi-modal content, in particular, has seen rapid expansion. For example, Daily AIGC video generation reached millions of units starting from May, and Daily AIGC video distribution within Baidu App has grown rapidly. We are delighted to see sustained improvements in user metrics. In June, Baidu App's MAU reached 735 million, representing a 5% year-over-year growth. The daily average time spent per user in Q2 increased by 4% year over year. Building on Search's ability to satisfy user intent, we are expanding its boundaries from providing smart answers to completing tasks and connecting real-world services. For instance, our agents engage users in multi-round conversations, connect them with relevant service providers when needed, and facilitate end-to-end task completion across multiple verticals.

Building on search ability to satisfy user intent, we are expanding its boundaries from providing smart answers to completing tasks and connecting real work services for.

Speaker #4: Providing more high-quality content for search results. AI-generated multi-modal content, in particular, has seen rapid expansion. For example, daily AIGC video generation reached millions of units starting from May.

For instance, our agents engaged users and multi around the conversations.

<unk> them with relevant service provider when needed and facilitate end to end task completion across multiple verticals.

Speaker #4: And daily AIGC video distribution within Baidu App has grown rapidly. We're delighted to see sustained improvements in user metrics. In June, Baidu App's MAU reached 735 million.

We believe this represents a meaningful expansion of what search can achieve enabling users to seamlessly move from information to action.

Now, let me review the key highlights of each sector this quarter.

Speaker #4: Representing a 5.8% year-over-year growth. The daily average time spent per user in Q2 increased by 4% year-over-year. Building on search ability to satisfy user intents, we are expanding its boundaries from providing smart answers to completing tasks and connecting real-world services.

Cloud revenue reached RMB, six 5 billion in Q2 up 27% year over year with non-GAAP operating profit achieving year over year growth.

Growth was primarily driven by the growing demand for our high.

<unk> Costa effective end to end AI products and solutions.

Within the enterprise cloud, which contributes the vast majority of AI cloud revenue subscription based revenue grow at a solid pace secondly, a healthier and more sustainable revenue structure.

Speaker #4: For instance, our agents engage users in multi-round conversations. Connect them with relevant service providers when needed. And facilitate end-to-end task completion across multiple verticals.

On the infrastructure layer, we continuously enhanced our resource management capabilities, achieving higher and higher infrastructure utilization.

Speaker #4: We believe this represents a meaningful expansion of what search can achieve. Enabling users to seamlessly move from information to action. Now, let me review the key highlights of each business sector this quarter.

Robin Li: We believe this represents a meaningful expansion of what Search can achieve, enabling users to seamlessly move from information to action. Now, let me review the key highlights of each business sector this quarter. AI Cloud revenue reached RMB 6.5 billion in Q2, up 27% year over year, with non-GAAP operating profit achieving year-over-year growth. The growth was primarily driven by the growing demand for our highly cost-effective end-to-end AI products and solutions. Within the enterprise cloud, which contributes the vast majority of AI Cloud revenue, subscription-based revenue grows at a solid pace, signaling a healthier and more sustainable revenue structure. On the infrastructure layer, we continuously enhanced our resource management capabilities, achieving higher and higher infrastructure utilization through ongoing end-to-end optimization across our four-layer AI architecture.

Through ongoing end to end optimization across our falling our AI architecture, combined with increasingly refined and efficient GPU resource management capabilities.

Speaker #4: AI Cloud revenue reached RMB 6.5 billion in Q2, representing a 27% year-over-year increase. Additionally, non-GAAP operating profit achieved year-over-year growth. This growth was primarily driven by the increasing demand for our highly cost-effective end-to-end AI products and solutions.

Our large scale key clusters have achieved over 90% utilization rates recently for key tasks.

Our enhanced capabilities allow us to deliver better performance at lower costs and provide more competitive pricing for enterprise customers.

Speaker #4: Within the enterprise cloud, which contributes the vast majority of AI Cloud revenue. Subscription-based revenue grow at a solid pace. Signaling a healthier and more sustainable revenue structure.

Establishing a virtuous circle, where our growing customer base and diversified workloads further improve resource utilization reinforcing our sustainable revenue model.

In Q2, our customer portfolio continue to improve existing lines depends of the collaboration and increased spending while mid tier enterprise clients demonstrated strong growth momentum.

Speaker #4: On the infrastructure layer, we continuously enhanced our resource management capabilities. Achieving higher and higher infrastructure utilization. Through ongoing end-to-end optimization, across our four-layer AI architecture.

Additionally, this quarter marked several strategic partnerships with prominent companies across key verticals, including a leading lifestyle platform.

Speaker #4: Combined with increasingly refined and efficient GPU resource management capabilities, our large-scale key clusters have achieved over 90% utilization rates recently for key tasks. Our enhanced capabilities allow us to deliver better performance at lower costs.

Robin Li: Combined with increasingly refined and efficient GPU resource management capabilities, our large-scale key clusters have achieved over 90% utilization rates recently for key tasks. Our enhanced capabilities allow us to deliver better performance at lower costs and provide more competitive pricing for enterprise customers, establishing a virtual circle where our growing customer base and diversified workloads further improve resource utilization, reinforcing our sustainable revenue model. In Q2, our customer portfolio continued to improve. Existing clients deepened the collaboration and increased spending, while mid-tier enterprise clients demonstrated strong growth momentum. Additionally, this quarter marked several strategic partnerships with prominent companies across key verticals, including a leading lifestyle platform and a top-tier gaming company in China. In the embodied AI industry, we have partnered with 20 companies cumulatively, including Shenzhen Institute of Artificial Intelligence and Robotics for Society. In autonomous driving, we established a partnership with BlackSystem Technologies on AI Cloud infrastructure.

Top tier gaming company in China.

In the embodied AI industry, we have partnered with 20 companies accumulatively, including changing has to do with artificial intelligence and robotics for society.

Speaker #4: And provide more competitive pricing for enterprise customers, establishing a virtual circle where our growing customer base and the diversified workloads further improve resource utilization.

In autonomous driving we established a partnership with Black system technologies AI cloud infrastructure.

This partnership reflects the strong recognition baidu.

Baidu AI cloud and affirm our competitive positioning in China's AI cloud market.

Speaker #4: Reinforcing our sustainable revenue model. In Q2, our customer portfolio continued to improve. Existing clients deepened the collaboration and increased spending. While mid-tier enterprise clients demonstrated strong growth momentum.

Building on our full stack AI capabilities, we're not only serving enterprise clients, but also driving internal productivity and mass market AI adoption at the application layer.

Speaker #4: Additionally, this quarter marked several strategic partnerships with prominent companies across key verticals, including a leading lifestyle platform and a top-tier gaming company in China.

Internally, we have widely adopted co baked our AI coding assistant for developers.

Coal based capabilities continue to improve enabling more authentic and efficient development workflow.

Speaker #4: In the invalid AI industry, we have partnered with 20 companies cumulatively, including Shenzhen Institute of Artificial Intelligence and the Robotics for Society. In autonomous driving, we established a partnership with Black Sesame Technologies.

In July AI contributed to generating over 45% of our new code.

R&D batteries, providing oversight and approval.

This has significantly boosted our engineering productivity and meaningfully enhanced our internal R&D efficiency.

Speaker #4: Our AI Cloud infrastructure. This partnership reflects the strong recognition of Baidu AI Cloud and affirms our competitive positioning in China's AI Cloud market. Building on our full-stack AI capabilities, we are not only serving enterprise clients.

Robin Li: These partnerships reflect the strong recognition of Baidu AI Cloud and affirm our competitive positioning in China's AI Cloud market. Building on our full stack AI capabilities, we are not only serving enterprise clients but also driving internal productivity and mass-market AI adoption at the application layer. Internally, we've widely adopted Colemate, our AI coding assistant for developers. Colemate's capabilities continue to improve, enabling more agentic and efficient development workflows. In July, AI contributed to generating over 45% of our new code, with our developers providing oversight and approval. This has significantly boosted our engineering productivity and meaningfully enhanced our internal R&D efficiency. Externally, Miaodan extends these AI development capabilities to the broader community. Following Miaodan's official launch last quarter, we're now delivering true no-code capabilities that enable users to create applications from mini games to utility tools and websites through simple natural language conversations with AI.

Externally we are now.

This AI development capabilities to the broader community.

Following that office.

Official launch last quarter, we're now delivering true noncore with the capabilities that enable users to create applications from mini games to utility tools and websites through simple natural language conversations with AI <unk>.

Speaker #4: But also driving internal productivity and mass market AI adoption at the application layer. Internally, we've widely adopted Colmate, our AI coding assistant for developers.

<unk>.

Programming expertise required.

Speaker #4: Colmate's capabilities continue to improve, enabling more agentic and efficient development workflows. In July, AI contributed to generating over 45% of our new code, with our developers providing oversight and approval.

As of July users have created around 200000 applications.

All of you to completely without writing a single line of code.

We are continuously enhancing non code capabilities as we work toward our mission to democratize AI and empower everyone to innovate.

Speaker #4: This has significantly boosted our engineering productivity and meaningfully enhanced our internal R&D efficiency. Externally, Miaotao extends this AI development capabilities to the broader community.

Moving to intelligent driving in Q2, Apollo gold provided over $2 2 million fully driverless rise to the public at 148% over.

Year over year as of August accumulative rides provided to the public have surpassed $14 million.

Speaker #4: Following Miaotao's official launch last quarter, we're now delivering two no-code capabilities that enable users to create applications, ranging from mini-games to utility tools and websites.

Underscoring the scale and maturity of our fully properties operations.

As of June Apollo Global footprint spans 16 cities to date, our fleets have accumulated over $200 million autonomous kilometers west.

Speaker #4: Through simple natural language conversations with AI, no programming expertise is required. As of July, users have created around 200,000 applications on Miaotao, all built completely without writing a single line of code.

Robin Li: No programming expertise required. As of July, users have created around 200,000 applications on Miaodan, all built completely without writing a single line of code. We are continuously enhancing no-code capabilities as we work toward our mission to democratize AI and empower everyone to innovate. Moving to intelligent driving, in Q2, Apollo Go provided over 2.2 million fully driverless rides to the public, up 148% year over year. As of August, cumulative rides provided to the public have surpassed 14 million, underscoring the scale and maturity of our fully driverless operations. As of June, Apollo Go's global footprint spans 16 cities. To date, our fleets have accumulated over 200 million autonomous kilometers with an outstanding safety record, which is a testament to the ability and safety of our autonomous driving technology. Beyond global partnerships like Uber and Lyft, we are accelerating the rollout of asset-light business models domestically.

An outstanding safety record, which is a testament to the ability and safety autonomous driving technology.

Speaker #4: We are continuously enhancing no-code capabilities as we work toward our mission to democratize AI and empower everyone to innovate. Moving to intelligent driving, in Q2, Apollo Go provided over 2.2 million fully driverless rides to the public.

Beyond the global partnerships like Uber and Lyft, we are accelerating the rollout of asset light business models domestically. This quarter, we established new partnerships with Hello, right and T screen mobility.

Spending our collaborative network with leading mobility service providers.

Speaker #4: Up 148% year-over-year. As of August, cumulative rides provided to the public have surpassed 14 million, underscoring the scale and maturity of our fully driverless operations.

Additionally building on the partnership announced last quarter Apollo goes fully autonomous vehicle rental service.

Officially one lie on the car Inc. App.

Offering users a new access point to our Apollo Gulf Fleet.

Speaker #4: As of June, Apollo Go's global footprint spans 16 cities. To date, our fleets have accumulated over 200 million autonomous kilometers, with an outstanding safety record.

These partnerships enable us to rapidly scale, our services, while leveraging partners operational expertise and existing customer basis.

Waiting an efficient path to broader market penetration.

Speaker #4: Which is a testament to the ability and safety of our autonomous driving technology. Beyond global partnerships like Uber and Lyft, we are accelerating the rollout of asset-light business models domestically.

Going forward, we are confident to further accelerate our global expansion and capture significant value across multiple markets worldwide.

For mobile ecosystem, we continue accelerating AI transformation of search in Q2.

Speaker #4: This quarter, we established new partnerships with HelloRide and T-Screen Mobility. Expanding our collaborative network with leading mobility service providers. Additionally, building on the partnership announced last quarter, Apollo Go's fully autonomous vehicle rental service officially went live on the CarInc app.

Robin Li: This quarter, we established new partnerships with HelloRide and T-Screen Mobility, expanding our collaborative network with leading mobility service providers. Additionally, building on the partnership announced last quarter, Apollo Go's fully autonomous vehicle rental service officially went live on the CAR Inc. app, offering users a new access point to our Apollo Go fleet. These partnerships enable us to rapidly scale our services while leveraging partners' operational expertise and existing customer bases, creating an efficient path to broader market penetration. Going forward, we are confident to further accelerate our global expansion and capture significant value across multiple markets worldwide. For our mobile ecosystem, we continue accelerating AI transformation of Baidu Search in Q2.

In today's highly competitive mobile internet market, where new products and technologies are emerging and evolving faster than ever user needs and behaviors are constantly shifting making it essential for us to keep if rating at a rapid pace.

While our AI transformation is progressing rapidly it is still in the early stages with considerable room for optimization before reaching its full potential and we are not yet at the stage.

Speaker #4: Offering users a new access point to our Apollo Go fleet. This partnership enables us to rapidly scale our services while leveraging partners' operational expertise and existing customer bases.

For large scale monetization.

Speaker #4: Creating an efficient path to broader market penetration. Going forward, we are confident we can further accelerate our global expansion and capture significant value across multiple markets worldwide.

Against this backdrop, we began prudent small scale monetization testing in Q2 with user experience remains our top priority.

Early results have.

Been satisfying for example, some queries that we previously.

Speaker #4: For mobile ecosystem, we continue accelerating AI transformation of search in Q2. In today's highly competitive mobile internet market, where new products and technologies are emerging and evolving faster than ever.

Yeah.

Difficult to monetize are now showing potential.

Robin Li: In today's highly competitive mobile internet market, where new products and technologies are emerging and evolving faster than ever, user needs and behaviors are constantly shifting, making it essential for us to keep iterating at a rapid pace. While our AI transformation is progressing rapidly, it is still in the early stages, with considerable room for optimization before reaching its full potential. We are not yet at the stage for large-scale monetization. Against this backdrop, we began prudent small-scale monetization testing in Q2, with user experience remaining our top priority. Early results have been satisfying. For example, some queries that we previously found difficult to monetize are now showing potential. Agents maintained strong performance in driving better conversion efficiency, further validating our effectiveness. In Q2, revenue generated by our agents for advertisers rose 50% quarter over quarter, contributing 13% of Baidu's online marketing revenue.

Agents maintained strong performance in driving better conversion efficiency.

Speaker #4: User needs and behaviors are constantly shifting. Making it essential for us to keep everything at a rapid pace. While our AI transformation is progressing rapidly, it is still in the early stages.

Further validating our effectiveness.

In Q2 revenue generated by our agents for advertisers grow 50% year over quarter over quarter.

Contributing 13% of Baidu Core's online marketing revenue, that's up from 9% in Q2.

Speaker #4: With considerable room for optimization before reaching its full potential, and we are not yet at the stage for large-scale monetization. Against this backdrop, we began prudent small-scale monetization testing in Q2.

In Q1.

In parallel detailed human gained traction as an innovative monetization avenue for our advertising business.

Speaker #4: With user experience remaining our top priority, early results have been satisfying. For example, some queries that were previously difficult to monetize are now showing potential.

Particularly through AI powered live streaming.

We are seeing steady growth in digital human adoption over recent quarters.

Beyond serving live streaming hosts for merchants.

We're being adopted at growing scale in healthcare legal services education and.

Speaker #4: Agents maintained strong performance in driving better conversion efficiency, further validating our effectiveness. In Q2, revenue generated by our agents for advertisers rose 50% year-over-year.

Automotive sector.

More advertisers recognize the value in boosting conversion performance through real time user.

Interaction and round the clock availability.

Leading to increased AD budget allocation toward digital humans.

Speaker #4: Contributing 13% of Baidu's quarterly online marketing revenue, that's up from 9% in Q2 and Q1. In parallel, digital humans gained traction as an innovative monetization avenue for our advertising business.

In Q2 revenue generated by digital Humira increased by.

Robin Li: That is up from 9% in Q1. In parallel, digital human technology gained traction as an innovative monetization avenue for our advertising business, particularly through AI-powered live streaming. We have seen steady growth in digital human adoption over recent quarters. Beyond serving live streaming hosts for merchants, they were being adopted at growing scale in healthcare, legal services, education, and automotive sectors. More advertisers recognize their value in boosting conversion performance through real-time user interaction and round-the-clock availability, leading to increased ad budget allocation toward digital human technology. In Q2, revenue generated by digital human technology increased by 55% quarter over quarter, contributing 3% of Baidu Q4's online marketing revenue. To sum up, as we look ahead, Baidu will stay anchored in our long-term mission and move forward with greater focus and resolve as we continue to translate AI innovation into real-world value.

55% quarter over quarter, contributing 3% of Baidu Core's online marketing revenue.

To sum up as we look ahead baidu well stay anchored in our long term vision and move forward with greater focus and resolve as we continue to translate AI innovation into real world value.

Speaker #4: Particularly through AI-powered live streaming. We've seen steady growth in digital human adoption over recent quarters. Beyond serving live streaming hosts for merchants, we were being adopted as growing scale in healthcare, legal services, education, and automotive sectors.

Before we move to Q&A I'd like to take a moment to welcome Henry Mr. Hygiene.

Who recently joined Us as Chief Financial Officer.

With that let me turn the call over to Henri to go through the financial results.

Speaker #4: More advertisers recognized their value in boosting conversion performance through real-time user interaction and round-the-clock availability. Leading to increased ad budgets allocation toward digital humans.

Thank you Robyn and Hello, everyone.

I am delighted to join the Baidu team and looking forward to working with all of you.

Now, let me walk through the details of our second quarter financial results.

Total revenues were $22 7 billion RMB decreased 4% year over year.

Speaker #4: In Q2, revenue generated by digital human increased by 55% quarter over quarter, contributing 3% of Baidu quarter's online marketing revenue. To sum up, as we look ahead, Baidu will stay anchored in our long-term mission and move forward with greater focus and resolve.

Revenue from Baidu core was $26 3 billion RMB decreasing 2% year over year.

Baidu course online marketing revenue was $16 2 billion RMB decreasing 15% year over year.

Baidu cost now online marketing revenue was 10 billion RMB.

Speaker #4: As we continue to translate AI innovations into real-world value, before we move to Q&A, I'd like to take a moment to welcome Henry, Mr. Hai Jianhe, who recently joined us as Chief Financial Officer.

34% year over year.

Primarily driven by the boost of AI cloud business within.

Within Baidu core non online marketing revenue AI cloud revenue was $6 5 billion RMB increased by 27% year over year.

Robin Li: Before we move to Q&A, I would like to take a moment to welcome Henry, Mr. Hai Jianhe, who recently joined us as Chief Financial Officer. With that, let me turn the call over to Henry to go through the financial results.

Speaker #4: With that, let me turn the call over to Henry to go through the financial results.

Revenue from GE was $6 6 billion RMB decreasing 11% year over year.

Speaker #5: Thank you, Robin. And hello, everyone. I'm delighted to join the Baidu team and look forward to working with all of you. Now, let me walk through the details of our second quarter financial results.

Cost of revenues was $18 4 billion RMB, increasing 12% year over year, primarily due to an increase in costs related to AI cloud business and our content costs.

Henry Hai Jianhe: Thank you, Robin, and hello, everyone. I am delighted to join the Baidu team and looking forward to working with all of you. Now, let me walk through the details of our second quarter financial results. Total revenues were 22.7 billion RMB, decreasing 4% year over year. Revenue from Baidu Core was 26.3 billion RMB, decreasing 2% year over year. Baidu Core's online marketing revenue was 16.2 billion RMB, decreasing 15% year over year. Baidu Core's non-online marketing revenue was 10 billion RMB, up 34% year over year, primarily driven by the boost of AI Cloud business. Within Baidu Core's non-online marketing revenue, AI Cloud revenue was 6.5 billion RMB, increased by 27% year over year. Revenue from iQIYI was 6.6 billion RMB, decreasing 11% year over year.

Operating expenses were $11 1 billion RMB decreasing 4% year over year, primarily due to a decrease in personnel related expenses.

Speaker #5: Total revenues were 22.7 billion RMB, decreasing 4% year-over-year. Revenue from Baidu core was 26.3 billion RMB, decreasing 2% year-over-year. Baidu core's online marketing revenue was 16.2 billion RMB, decreasing 15% year-over-year.

Partially offset by the increase in channel spanning expenses.

Baidu cost operating expenses was $9 7 billion RMB decreasing 5% year over year.

Speaker #5: Baidu core's non-online marketing revenue was 10 billion RMB, up 34% year-over-year. Primarily driven by the boost of AI Cloud business. Within Baidu core's non-online marketing revenue, AI Cloud revenue was 6.5 billion RMB, increased by 27% year-over-year.

Baidu core SG&A expenses was 5 billion RMB, increasing 6% year over year.

SG&A accounted for 19% of Baidu core revenue in the quarter.

Compared to 18% in the same period of last year.

I do recall R&D expenses.

Or a $4 7 billion RMB decreasing 14% year over year.

Speaker #5: Revenue from ITE was 6.6 billion RMB, decreasing 11% year-over-year. Cost of revenues was 18.4 billion RMB, increasing 12% year-over-year, primarily due to an increase in costs related to AI Cloud business and content costs.

R&D accounted for 18% of Baidu core revenue in this quarter.

Henry Hai Jianhe: Cost of revenues was 18.4 billion RMB, increasing 12% year over year, primarily due to an increase in costs related to AI Cloud business and content costs. Operating expenses were 11.1 billion RMB, decreasing 4% year over year, primarily due to a decrease in personnel-related expenses, partially offset by the increase in channel spending expenses. Baidu Core's operating expenses were 9.7 billion RMB, decreasing 5% year over year. Baidu Core's SG&A expenses were 5 billion RMB, increasing 6% year over year. SG&A accounted for 19% of Baidu Core's revenue in the quarter, compared to 18% in the same period of last year. Baidu Core R&D expenses were 4.7 billion RMB, decreasing 14% year over year. R&D accounted for 18% of Baidu Core's revenue in this quarter, compared to 20% in the same period of last year. Operating income was 3.3 billion RMB.

Paired with 20% in the same period of last year.

Operating income was $3 3 billion RMB.

At all costs operating income was $3 3 billion RMB and Baidu costs operating margin was 13%.

Speaker #5: Operating expenses were ¥11.1 billion, decreasing 4% year-over-year, primarily due to a decrease in personnel-related expenses, partially offset by the increase in channel spending expenses.

non-GAAP operating income was $4 4 billion RMB non.

non-GAAP Baidu core operating income was $4 4 billion RMB.

Speaker #5: Baidu Core's operating expenses were 9.7 billion RMB, decreasing 5% year-over-year. Baidu Core's SG&A expenses were 5 billion RMB, increasing 6% year-over-year. SG&A accounted for 19% of Baidu Core's revenue in the quarter.

And the non-GAAP Baidu core operating margin was 17%.

Uh huh.

Total other income net was $4 9 billion RMB, increasing 531% year over year, primarily due to an increase in the fair value again, and a pickup of earnings from long term investments.

Speaker #5: Compared to 18% in the same period of last year, Baidu Core's R&D expenses were ?4.7 billion, decreasing 14% year-over-year. R&D accounted for 18% of Baidu Core's revenue in this quarter.

Partially offset by increase in the net foreign exchange loss arising from exchange rate fluctuation between RMB and the U S dollar.

Income tax expenses was 881 million RMB.

<unk> to $1 1 billion RMB in the same period of last year.

Speaker #5: Compared to 20% in the same period of last year, operating income was 3.3 billion RMB, Baidu Core's operating income was 3.3 billion RMB, and Baidu Core's operating margin was 13%.

Net income attributed to Baidu was seven 3 billion RMB and diluted earning per ads was 23% to five RMB.

Henry Hai Jianhe: Baidu Core's operating income was 3.3 billion RMB, and Baidu Core's operating margin was 13%. Non-GAAP operating income was 4.4 billion RMB. Non-GAAP Baidu Core operating income was 4.4 billion RMB, and the non-GAAP Baidu Core operating margin was 17%. Total other income, net, was 4.9 billion RMB, increasing 531% year over year, primarily due to an increase in the fair value gain and the pickup of earnings from long-term investments, partially offset by an increase in the net foreign exchange loss arising from exchange rate fluctuation between RMB and the U.S. dollar. Income tax expenses were 881 million RMB, compared to 1.1 billion RMB in the same period of last year. Net income attributed to Baidu was 7.3 billion RMB, and the diluted earnings per ADS were 20.35 RMB. Net income attributed to Baidu Core was 7.4 billion RMB, and the net margin for Baidu Core was 28%.

Net income attributed to Baidu core was seven 4 billion RMB.

Speaker #5: Non-GAAP operating income was 4.4 billion RMB, non-GAAP Baidu core operating income was 4.4 billion RMB. And the non-GAAP Baidu core operating margin was 17%.

And the net margin for Baidu core was 28%.

non-GAAP net income attributed to Baidu was $4 8 billion RMB non-GAAP diluted earnings per ads was $13 five eight RMB.

Speaker #5: Total other income, net, was 4.9 billion RMB, increasing 531% year-over-year. Primarily due to an increase in the fair value gain and a pickup of earnings from long-term investments.

non-GAAP net income attributed to Baidu core was $4 8 billion RMB and a non-GAAP net margin for Baidu core was 18%.

Speaker #5: Partially offset by an increase in the net foreign exchange loss arising from exchange rate fluctuations between RMB and the US dollar. Income tax expenses were 881 million RMB, compared to 1.1 billion RMB in the same period of last year.

As of June 32, 75.

Cash cash equivalents restricted cash and short term investments were $124 2 billion RMB.

And our cash cash equivalents restricted cash and short term investments excluding.

Or $119 9 billion RMB.

Speaker #5: Net income attributed to Baidu was 7.3 billion RMB, and a diluted earning per ADS was 20.35 RMB. Net income attributed to Baidu core was 7.4 billion RMB, and the net margin for Baidu core was 28%.

As of June 32025.

Cash cash equivalents short term investments and long term time deposits and held to maturity investments for Baidu core was $229 7 billion RMB.

Free cash flow was negative $4 7 billion RMB and a free cash flow, excluding IC was negative $4 6 billion RMB.

Speaker #5: Non-GAAP net income attributed to Baidu was 4.8 billion RMB, non-GAAP diluted earnings per ADS was 13.58 RMB. Non-GAAP net income attributed to Baidu core was 4.8 billion RMB, and the non-GAAP net margin for Baidu core was 18%.

Henry Hai Jianhe: Non-GAAP net income attributed to Baidu was 4.8 billion RMB. Non-GAAP diluted earnings per ADS were 13.58 RMB. Non-GAAP net income attributed to Baidu Q4 was 4.8 billion RMB, and the non-GAAP net margin for Baidu Q4 was 18%. As of June 30, 2025, cash, cash equivalents, restricted cash, and short-term investments were 124.2 billion RMB. The cash, cash equivalents, restricted cash, and short-term investments, excluding ITE, were 119.9 billion RMB. As of June 30, 2025, cash, cash equivalents, short-term investments, and the long-term time deposits and head-to-maturity investments for Baidu Q4 were 229.7 billion RMB. Free cash flow was negative 4.7 billion RMB, and the free cash flow, excluding ITE, was negative 4.6 billion RMB, primarily due to the increase of investment in AI business.

Primarily due to the increase of investment in AI business.

We define net cash position.

Total cash cash equivalents restricted cash and short term investments net long term time deposits.

The majority of investments in others.

Last total loans convertible senior notes and the notes payable.

Speaker #5: As of June 30, 2025, cash cash equivalents restricted cash and short-term investments were 124.2 billion RMB. And the cash cash equivalents restricted cash and short-term investments excluding ITE were 119.9 billion RMB.

As of June 32025, net cash position for Baidu was $155 1 billion RMB.

Baidu call has approximately 31000 employees.

June 30, 'twenty or quantify.

Speaker #5: As of June 30, 2025, cash cash equivalents short-term investments and the long-term time deposit and had to maturity investments for Baidu core were 229.7 billion RMB.

With that operator, let's now open up the call for questions. Thank you.

Ladies and gentlemen.

We'll now begin the question and answer session.

If you wish to ask a question. Please press star one on your telephone and wait for your name to be announced.

Speaker #5: Free cash flow was negative 4.7 billion RMB, and free cash flow excluding ITE was negative 4.6 billion RMB. Primarily due to the increase of investment in AI business.

If you wish to cancel your request please press star two.

If you're on a speakerphone, please pick up the handset to ask a question.

Speaker #5: With defined net cash position, as total cash cash equivalents restricted cash, short-term investments net long-term time deposits held to maturity investments and others. Last total loans convertible senior notes and the notes payable.

Henry Hai Jianhe: We define net cash position as total cash, cash equivalents, restricted cash, short-term investments net, long-term time deposits, head-to-maturity investments, and others, less total loans, convertible senior notes, and notes payable. As of June 30, 2025, net cash position for Baidu was 155.1 billion RMB. Baidu Q4 has approximately 31,000 employees as of June 30, 2025. With that, operator, let's now open up the call for the questions. Thank you.

Okay.

Your first question comes from Alicia Yap.

Citigroup. Please go ahead.

Thank you.

Management, Thanks for taking my questions and also welcome Henry CFO.

Speaker #5: As of June 30, 2025, the net cash position for Baidu was 155.1 billion RMB. Baidu Core has approximately 31,000 employees as of June 30, 2025.

Questions on your model.

With the Rabbit model iteration, how do you view the current landscape, how do you position R&D strategically in the market.

Alignment with Baidu broader business strategy.

Speaker #5: With that operator, let's now open up the call for the questions. Thank you.

We also have parts that you are planning to launch <unk>.

Speaker #6: Ladies and gentlemen, we will now begin with the question and answer session. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced.

Juan Lin: Ladies and gentlemen, we will now begin the question and answer session. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you are on a speakerphone, please pick up the handset to ask a question. Your first question comes from Alicia Yap, Citigroup. Please go ahead.

Five <unk>.

Could management share plan for any in the second half this year and also with a key focus area for <unk>.

Thank you.

Speaker #6: If you wish to cancel your request, please press *2. If you are on a speakerphone, please pick up the handset to ask a question.

Yeah.

Hi, Alicia this is Robin let me first give you our take on the current landscape.

The pace of model year duration is faster than ever.

Speaker #6: Your first question comes from Alicia Yap, Citi Group. Please go ahead.

We see multiple new models are launched almost every week.

Speaker #7: Thank you. Good evening, management. Thanks for taking my questions. And also welcome, Henry, as the new CFO. I have a question on your AI model.

Speaker 5: Thank you. Good evening, management. Thanks for taking my questions. Welcome, Henry Hai Jianhe, as the new CFO. I have a question on your AI model. With the rapid model iteration, how do you view the current landscape? How do you position ERNIE strategically in the market and its alignment with Baidu's broader business strategy? We have also heard that you are planning to launch ERNIE 5.0. Could management share plans for ERNIE in the second half this year and also the key focus area for this next version? Thank you.

And each new generation is.

Stronger than the left.

In recent months, we've seen models grow more capable reaching a stage.

Speaker #7: With the rapid model iteration, how do you view the current landscape? How do you position earnings strategically in the market and its alignment with Baidu broader business strategy?

We are there.

Deeper logic and greater creativity now enabled them to propose entirely new solutions, we've never seen before.

And I believe this is.

Speaker #7: And we also have heard that you are planning to launch Earnings 5.0. Could management share plans for earnings in the second half of this year and also the key focus areas for this next version?

This kind of innovative.

Ability.

Is getting stronger.

Meanwhile, The foundation model landscape is becoming more diverse and clearly not a one size fits all situations.

Speaker #7: Thank you.

Especially in China.

Speaker #8: Hi, Alicia. This is Robin. Let me first give you our take on the current landscape. The pace of model iteration is faster than ever.

To Evs, you'll always have a lot of choices.

Robin Li: Hi, Alicia. This is Robin. Let me first give you our take on the current landscape. The pace of model iteration is faster than ever. We see multiple new models launched almost every week, and each new generation is stronger than the last. In recent months, we have seen models grow more capable, reaching a stage where their deeper logic and greater creativity now enable them to propose entirely new solutions we have never seen before. I believe this kind of innovative ability is getting stronger. Meanwhile, the foundation model landscape is becoming more diverse and clearly not a one-size-fits-all situation. Especially in China, similar to EVs, you always have a lot of choices. Different models excel at different tasks. Some are stronger in reasoning, some in coding, and some in multi-modality.

Different models excel at different tasks.

Some are stronger in returning some in coding and some in multi modality.

Speaker #8: We see multiple new models launched almost every week, and each new generation is stronger than the last. In recent months, we've seen models grow more capable, reaching a stage where they're demonstrating deeper logic and greater creativity.

So we will continue to see a market where multiple models co exist.

Very reasonable prices.

And the value creation will happen at the application level more than at the module level.

Against this backdrop Ernest positioning is clear.

Speaker #8: Now enable them to propose entirely new solutions we've never seen before. And I believe this is this kind of innovative ability is getting stronger.

We take an application driven approach to innovation.

In fact that we've taken this approach since the launch of Ernie.

First launch of earning more than two years ago.

Rather than spreading efforts across every possible direction, we stay focused on.

Speaker #8: Meanwhile, the foundation model landscape is becoming more diverse and clearly not a one-size-fits-all situation. Especially in China, similar to EVs, you always have a lot of choices.

The strategic the important areas.

That's.

Valuable to us.

Speaker #8: Different models excel at different tasks. Some are stronger in reasoning, some in coding, and some in multimodality. Therefore, we will continue to see a market where multiple models coexist and vary reasonable prices.

We think we can deliver meaningful impact and assisting our.

Leadership.

For example, as we advance AI search transformation.

Robin Li: We will continue to see a market where multiple models coexist at very reasonable prices, and the value creation will happen at the application level more than at the model level. Against this backdrop, ERNIE's positioning is clear. We take an application-driven approach to innovation. In fact, we have taken this approach since the first launch of ERNIE, more than two years ago. Rather than spreading efforts across every possible direction, we stay focused on the strategically important areas that are valuable to us. We think we can deliver meaningful impact and sustain our leadership. For example, as we advance AI search transformation, we direct our model capabilities toward generating and selecting multi-model search results. Our users love it. Our cloud customers also love it. They are paying for our search API for the purpose of RAG in their GenAI applications.

We direct.

Our model capabilities towards generating and selecting multi.

Speaker #8: And the value creation will happen at the application level more than at the model level. Against this backdrop, earnings positioning is clear. We take an application-driven approach to innovation.

A multimodal search results.

Our users love it.

Our cloud customers also love it the pain for our search API for the purpose of a rack in their margin AI applications.

Speaker #8: In fact, we've taken this approach since the launch of earnings first launch of earnings more than two years ago. Rather than spreading efforts across every possible direction, we stay focused on the strategically important areas.

And then another example is our hyper realistic digital human technology, which now matches and even exceeds a real human performance in the live streaming E. Commerce scenario. Our motto is just better at convincing people to buy.

Speaker #8: That's valuable to us. We think we can deliver meaningful impact and sustain our leadership. For example, as we advance AI search transformation, we direct our model capabilities toward generating and selecting multi-model search results.

Cloud customers are paying for this capabilities too.

As we move into the second half and beyond we will continue.

Continue.

Acceleration with currently working on the next flagship version of Ernie with.

Significant improvements across key.

Capabilities and.

Speaker #8: And our users love it. Our cloud customers also love it. They're paying for our search API for the purpose of RAG in their GenAI applications.

Expected to launch it as soon as we are writing.

In the meantime, we will continue to rollout iterations and updates on an ongoing basis.

For our exits.

Listing models.

Speaker #8: Another example is our hyper-realistic digital human technology, which now matches and even exceeds real human performance in the live streaming e-commerce scenario. Our model is just better at convincing people to buy.

Robin Li: Another example is our hyper-realistic Digital Human technology, which now matches and even exceeds real human performance in the live streaming e-commerce scenario. Our model is just better at convincing people to buy. Cloud customers are paying for these capabilities too. As we move into the second half and beyond, we will continue this acceleration. We are currently working on the next flagship version of ERNIE, with significant improvements across key capabilities, and expect to launch it as soon as we are ready. In the meantime, we will continue to roll out iterations and updates on an ongoing basis for our existing models. We also keep monitoring industry developments to ensure our technology roadmap captures the most promising market opportunities. Thank you.

We are also keep monitoring industry developments.

To ensure our technology roadmap.

Capture the most promising market opportunities.

Thank you.

Thank you.

Yeah.

Speaker #8: Cloud customers are paying for this capability too. As we move into the second half and beyond, we will continue this acceleration. With currently working on the next flagship version of earnings, with significant improvements across key capabilities, and expect to launch it as soon as we are ready.

Thank you.

Your next question comes from Alex Yao from Jpmorgan. Please go ahead.

Okay.

Thank you management for taking my question and Henry on the best to your new role.

So curious my question on the homes to.

Power the search upgrade progressing in Q2 and Q3.

Could management share updates updated metrics on how user behavior is shifting with the new experience.

Speaker #8: In the meantime, we will continue to roll out iterations and updates on an ongoing basis. For our existing models. We are also keep monitoring industry developments to ensure our technology roadmap captures the most promising market opportunities.

Should we think about that.

And game of search in terms of product formats user reach and lastly, commercial potential. Thank you.

Hi, Alex.

For our question and this is Louis I think Q2 will continue as other areas such as formations as Robin has just mentioned.

Speaker #8: Thank you.

Baidu list globally and use AI to transform search.

Speaker #7: Thank you.

Speaker 5: Thank you.

Maybe what are the most aggressive.

Speaker #6: Thank you. Your next question comes from Alex Yao from JP Morgan. Please go ahead.

Juan Lin: Thank you. Your next question comes from Alex Yao from JPMorgan. Please go ahead.

Sure.

Revolutionizing the search.

Probably the only company that has completely replace.

Speaker #9: Thank you, management, for taking my question, and Henry, all the best in your new role. So, here is my question: How is the AI-powered search upgrade progressing in Q2 and Q3?

Traditional links with intelligent answers.

Speaker 7: Thank you, management, for taking my question. Henry, all the best to your new role. Here is my question. How is the AI-powered search upgrade progressing in Q2 and Q3? Could the management share updated metrics on how user behavior is shifting with the new experience? How should we think about the endgame of AI Search in terms of product formats, user reach, and lastly, commercial potential? Thank you.

The multi module content.

This creates a more efficient.

<unk>.

The user experiences.

Unlike current AI answers R. Chop off that remains mostly still is the tech space.

Speaker #9: Could the management share updates updated metrics on how user behavior is shifting with the new experience? How should we think about the end game of AI search in terms of product formats?

Our focus remains delivering better user experiences.

EMEA, you're saying the times by improvements.

The use is exposed to AI search now shows.

Speaker #9: User reach and, lastly, commercial potential. Thank you.

Higher year over year and retention.

Indicating our next generation such expertise is driving the stronger euro.

Speaker #8: Hi, Alex. Thank you so much for your question. And this is Lewis. I think Q2 will continue accelerated AI search transformations. As Robin has just mentioned, Baidu leads globally in using AI to transform search and we are maybe one of the most aggressive in revolutionizing the search.

Robin Li: Hi, Alex. Thank you so much for your question. This is Juan Lin. I think Q2 will continue accelerating AI search transformations. As Robin Li has just mentioned, Baidu leads globally in using AI to transform search, and we are maybe one of the most aggressive in revolutionizing the search. We are probably the only company that has completely replaced the traditional links with intelligent AI answers that start with the multi-modal content. This creates a more efficient, intuitive user experience. Unlike the current AI answers or chatbots that remain mostly still in the text space, our focus remains on delivering better user experiences. Beyond the MAUs and the time-span improvements, the user exposed to AI search now shows a higher UV and retention, indicating our next-generation search experience is driving stronger user satisfaction.

This asset structures.

As for the end game of such things do open question. Our policy, it's quite clear we are fundamentally restructuring search.

Instead of just indexing, our Linkedin to information we are delivering the intelligent AI generated answer that began with the relevant multi module content.

Speaker #8: And we're probably the only company that has completely replaced the traditional links with intelligent AI answers that start with the multi-model content. This creates a more efficient intuitive user experiences.

Multimodal content now appears more allegory path emphasis with increasing portion.

Alrighty as high core to edge as a contra expense on our platform. It directly enrich the search results and broadband so all we can offer to our users.

Speaker #8: And unlike the current AI answers or chatbots that remain mostly still as the text-based. Our focus remains delivering the better user experiences beyond the MAUs and the time span improvements and the user exposed to AI search now shows a higher UV and retention.

And Meanwhile, Ai's also empowering the people across our ecosystem for.

Joseph Kauffman creditors.

And service providers.

To produce the more back to content.

Speaker #8: Indicating our next generation search experience is driving the stronger user satisfaction. As for the end game of AI search, I think still an open question, but our part is quite clear.

In cruise.

Enabling those who were not traditional content creators to participate and making our whole ecosystem small library.

Robin Li: As for the end game of AI search, I think it is still an open question, but our policy is quite clear. We are fundamentally restructuring search. First, instead of just indexing or leaking information, we are delivering intelligent AI-generated answers that begin with the relevant multi-modal content. Multi-modal content now appears more at the very top of AI answers, with an increasing portion being AI-generated. As high-quality AIGC content expands on our platform, it directly enriches the search results and broadens what we can offer to the users. Meanwhile, the AI is also empowering the people across our ecosystem, from users, content creators, to advertisers, and service providers to produce more and better content. This includes enabling those who are not traditional content creators to participate and making our whole ecosystem more vibrant.

For example in July we have launched our mill steamer our brokerage or either video generation model to facilitate <unk> video creators as scale.

Speaker #8: We are fundamentally restructuring search. First, instead of just indexing or linking to information, we are delivering the intelligent AI-generated answers that began with the relevant multi-model content.

The latest version of optimal steamer was significant update will be launched tomorrow afternoon.

<unk>, where we're moving fast.

Speaker #8: Multi-model content now appears more elaborate top of AI answers. With the increasing portion being AI-generated. As high-quality AIGC content expands on our platform, it directly enriches the search results and broadens what we can offer to the users.

Second we're also evolving from filing information through completing tasks in connecting users with the rural worst services.

For example, solar Mcp's, we have conducted a search.

<unk> capabilities like our British Museum and Metropolitan.

Speaker #8: And meanwhile, the AI is also empowering the people across our ecosystem—from users and content creators to advertisers and service providers—to produce more and better content.

I missed.

That can provide attribution explanations writing search.

For more complicated needs our agents how to understand the users' intent and connect them with the services providers provide us when the offline services are required.

Speaker #8: This includes enabling those who were not traditional content creators to participate and making our whole ecosystems more vibrant. And for example, in July, we have launched our mail steamer our proprietary video generation model to facilitate AIGC video creations at scale.

What we have done stay is only the beginning.

She will continue to.

Continuing a one thing.

Robin Li: For example, in July, we have launched our Miaodan, our proprietary video generation model to facilitate AIGC video creations at scale. The latest version of Miaodan with a significant update will be launched tomorrow afternoon. Just stay tuned. We are moving fast. Second, we are also evolving from finding information to completing tasks and connecting users with the real-world services. For example, through the MCPs, we have connected search to external capabilities like our British Museum and Metropolitan Museum MCPs that can provide exhibition explanations right in search. For more complicated needs, our agents help to understand the user's intent and connect them with the service providers when the offline services are required. What we have done today is only the beginning. Search will continue to advance in capabilities and reach over time. In the third place, we are also working towards the shift from general results to personalized pages.

<unk> capabilities and reach over time are you. Mr. Places. We're also working towards the shift from general results through personal life.

Speaker #8: And in the latest version of mail steamer, we significantly update will be launched tomorrow afternoon. And please stay tuned. We will be moving fast.

<unk>.

Okay.

Personalized page.

Pages.

<unk> AI such individuals.

Speaker #8: And second, we are also evolving from fighting information to completing tasks and connecting users with real-world services. For example, through the MCPs, we have connected search to external capabilities.

Contacts our memories and preferreds Cogenerate paler Mae.

Responses, delivering more intelligent relevant and personalized ounces, while a better matching of users with tools and services they need.

Speaker #8: Like our British Museum and Metropolitan Museum MCPs that can provide exhibition explanations right in search. For more complicated needs, our agents help to understand the user's intent and connect them with the service providers when the offline services are required.

Looking ahead.

We will continue our southern <unk> formation, which in the short term.

Our revenue, but over time, we believe for AI search will unlock is sizing commercial possibilities and the upside is substantial.

Thank you for your question Alex.

Speaker #8: What we have done today has only the beginning. And search will continue to continue advancing in capabilities and reach over time. In the third place, we're also working towards the shift from the general results to personalized personalized pages.

Thank you.

Next question comes from Gary Yu Morgan Stanley. Please go ahead.

Hi, Thank you management for the opportunity to ask questions I have a question regarding the AI cloud revenue.

Management will provide a breakdown of the current revenue mix margin profile, what's the split between subscription based and project based revenue and how do you see them evolving in the coming quarters and also whats the margin profile looking like in the near term and over the long term. Thank you.

Speaker #8: While AI search understands the individual context, memories, and preferences to generate tailored responses, it delivers more intelligent, relevant, and personalized answers while better matching users with the tools and services they need.

Robin Li: While AI search understands the individual context, memories, and preference to generate tailor-made responses, delivering the more intelligent, relevant, and personalized answers while better matching the users with the tools and services they need. Looking ahead, we will continue to accelerate AI transformation, which in the short term will weigh on our revenue. Over time, we believe the AI search will unlock exciting commercial possibilities, and the upside is substantial. Thank you for your question, Alex.

Yes.

Thank you Gary this is though.

Speaker #8: And looking ahead, we will continue to accelerate AI transformation. Which in the short term, we'll wait on our revenue. But over time, we believe the AI search will unlock exciting commercial possibilities.

In Q2, AI cloud revenue grew 27 plus.

<unk> year over year to <unk>.

$6 5 billion RMB for the first half of the 2025 <unk> revenue increased.

Speaker #8: And the upside is substantial. Thank you for your question, Alex.

34% year over year accelerates.

Accelerating from the low teens growth we saw in the first half 2024.

Speaker #6: Thank you. Next question comes from Gary Yu, Morgan Stanley. Please go ahead.

Juan Lin: Thank you. Next question comes from Gary Yu, Morgan Stanley. Please go ahead.

Enterprise cloud has consistently.

Consistently outgrown our overall AI cloud business and remains the main growth driver.

Speaker #10: Hi. Thank you, management, for the opportunity to ask questions. I have a question regarding the AI Cloud revenue. Could management provide a breakdown of the current revenue mix and margin profile?

Speaker 5: Hi. Thank you, management, for the opportunity to ask questions. I have a question regarding the AI Cloud revenue. Can management provide a breakdown of the current revenue mix and margin profile? What is the split between subscription-based and project-based revenue, and how do you see them evolving in the coming quarters? Also, what is the margin profile looking like in the near term and over the long term? Thank you.

And then within the enterprise cloud subscription based revenue accounts for more than half of the total.

And continued growing steadily.

Speaker #10: What’s the split between subscription-based and project-based revenue, and how do you see them evolving in the coming quarters? Also, what’s the margin profile looking like in the near term and over the long term?

Q2.

The growth was driven by strong momentum in subscription based AI infrastructure, which grow over 50% year over year.

Speaker #10: Thank you.

We are seeing a good traction with both top tier and mid tier customers.

Speaker #8: Thank you, Gary. This is Doe. In Q2, AI Cloud revenue grew a 27% year-over-year to 6.5 billion RMB. For the first half of 2025, AI Cloud revenue increased 34% year-over-year.

Robin Li: Thank you, Gary. This is Dou Shen. In Q2, AI Cloud revenue grew 27% year over year to 6.5 billion RMB. For the first half of 2025, AI Cloud revenue increased 34% year over year, accelerating from the low teens growth we saw in the first half of 2024. Enterprise Cloud has consistently outgrown our overall AI Cloud business and remains the main growth driver. Within the Enterprise Cloud, subscription-based revenue accounts for more than half of the total and continued growing steadily in Q2. The growth was driven by strong momentum in the subscription-based AI infrastructure, which grew over 50% year over year.

Mid tier customers in particular are delivered notable revenue growth as they continue expanding with us.

Reflecting our broadening customer base.

The other part of the enterprise.

Speaker #8: Accelerating from the low teens growth, we saw in the first half of 2024. Enterprise Cloud has consistently outgrown our overall AI Cloud business and remains the main growth driver.

<unk> is a project based revenue.

Project based revenue is typically linked to customer deployments and will inevitably fluctuate from quarter to quarter based on contract timing and project schedules.

Speaker #8: Then within the enterprise Cloud, subscription-based revenue accounts for more than half of the total. And continued growing steadily in Q2. The growth was driven by strong momentum in the subscription-based AI infrastructure.

We are currently conducting a careful review of our project portfolio and aim to gradually reduce the proportion of project based revenue for greater.

Revenue stability.

Yeah.

Turning to our personal cloud, which the smaller part of our overall Es club business.

Speaker #8: Which grew over 50% year-over-year. We are seeing a good traction with both top-tier and mid-tier customers. Mid-tier customers in particular delivered notable revenue growth, as they continue expanding with us.

Over the recent quarters, we have integrated Baidu joint wisdom.

Juan Lin: are seeing good traction with both top-tier and mid-tier customers. Mid-tier customers, in particular, delivered notable revenue growth as they continue expanding with us, reflecting our broadening customer base. The other part of an enterprise cloud is project-based revenue. Project-based revenue is typically linked to customer deployments and will inevitably fluctuate from quarter to quarter based on contract timing and project schedules. We are currently conducting a careful review of our project portfolio and aim to gradually reduce the proportion of project-based revenue for greater revenue stability. Turning to a personal cloud, which is a smaller part of our overall AI Cloud business, over the recent quarters, we have integrated Baidu Dou Shen with ZhenKu and launched multiple new AI features. Recently, we opened up select AI features for free to encourage wider adoption.

<unk> launched multiple new features.

Recently, we opened up select.

<unk> features for free to them.

Courage wider adoption.

Speaker #8: Reflecting our broadening customer base, the other part of the enterprise cloud is project-based revenue. Project-based revenue is typically linked to customer deployments and will inevitably fluctuate from quarter to quarter.

While this may involve some near term trade offs, we believe it helps deepen user engagement and positions us to benefit from our broader he adoption.

On profitability, we achieved a year over year growth in our non-GAAP operating profit and maintained a healthy margin.

Speaker #8: Based on contract timing and project schedules. We are currently conducting a careful review of our project portfolio and aim to gradually reduce the proportion of project-based revenue for greater revenue stability.

Driven by a healthier revenue mix tilted towards higher value broke rings.

Well margins can move around from quarter to quarter due to a dynamic market environments.

We see clear potential for future improvement over the long wrong, as we scale and optimize our mix.

Thank you Gary.

Okay.

Thank you.

Yes.

Thank you.

Our next question comes from Lincoln Kang from Goldman Sachs. Please go ahead.

Thank you management for taking my question. So my question is apologize search.

Juan Lin: While this may involve some near-term trade-offs, we believe it helps deepen user engagement and positions us to benefit from a broader AI adoption. On profitability, we achieved year-over-year growth in non-GAAP operating profit and maintained a healthy margin, driven by a healthier revenue mix tilted toward higher-value offerings. While margins can move around from quarter to quarter due to dynamic market environments, we see clear potential for future improvement over the long run as we scale and optimize our mix. Thank you, Gary.

So can management share more color on the reason.

First one physician testing.

As a follow up your earlier comments on AI search you're opening up new monetization opportunity.

Can you elaborate on that and how our advertising format and business model evolving.

B the margin look like.

Stengel income.

The Mastercard just curious.

I mentioned, our bottom of monetization opportunities earlier, and let me elaborate over here.

From a product strategy, while our air transformations already covers a large portion of <unk> results were still in the early stage with substantial room for improvement where and to further increase the penetration of multimodal haunting, but results and I'll continue building and reaching our anh bicoastal sensor MCP and age.

Rong Luo: Thank you.

Robin Li: Thank you. Our next question comes from Lincoln Kong from Goldman Sachs. Please go ahead.

Once.

And our own our foundation enable let's see per our broader all higher quality connections to the railroads doses.

Henry Hai Jianhe: Thank you, Dou Shen, for taking my question. My question is about the search. Can Dou Shen share more color on the recent AI search monetization testing? I follow your earlier comments on AI search opening up new monetization opportunity. Could you elaborate on that? How are those advertising format and business model evolving, and what will be the margin look like? Thank you.

So the air transformation for <unk> and the user experiences improves monetization opportunities will naturally follow.

Also the AI search brings the native apps that feels intuitive.

Integrate enhancing rather than into routing use experiences solar vast majority of keywords that were previously difficult to monetize now can be monetize under areas, such where it should be significant expand our advertising inventory overtime.

Rong Luo: Thank you, Lincoln. That is a massive question. We are curious. I mentioned the marketization opportunities earlier, let me elaborate over here. From a product perspective, while our AI transformations already cover a large portion of search results, we are still in the early stage with substantial room for improvement. We aim to further increase the penetration of multimodal content in search results and continue building and enriching our AI-native ecosystems through MCP and agents. On the foundation, enable the deeper, broader, higher-quality connections to real-world services. As the AI transformations advance and the user experiences improve, monetization opportunities will naturally follow. AI search brings the native apps that feel intuitive and integrate, enhancing rather than interrupting the user experiences. The vast majority of keywords that were previously very difficult to monetize now can be monetized under AI search, which should significantly expand our advertisement inventory over time.

While initially we will be very conservative with monetization to ensure we get the usage.

<unk> experienced rights and valid long term upside is much higher.

Our actual solutions.

Being from simply generating sales leads to enabling the railroad service delivery.

This is a shift from made possible, but a new a new AI native commercial products such as agents are digital humans.

This innovative product allows us to better capture and circular user needs through interactive conversations.

Well connecting users with services providers in verticals like healthcare travel and education.

Where our agents.

Digital humans have already proven.

Paul has different capabilities.

Over the long term.

Our ability to fulfill their needs and trends position us well to drive a gradual transition from CPC and Cps, which offers much higher ceiling for monetization.

Rong Luo: While initially, we will be very conservative with monetization to ensure we get the user experience right, the long-term upside is much higher. During our AI transformations, we are moving from simply generating sales leads to enabling real-world service delivery. This is a shift made possible by new AI-native commercial products such as agents or digital humans. These innovative products allow us to better capture and serve the user needs through interactive conversations while connecting the users with service providers in verticals like healthcare, travel, and education, where our agents and digital humans have already proven monetization capabilities. Over the long term, the ability to fulfill the user needs end-to-end positions us to drive a gradual transition from CPC to CPS, which offers a much higher ceiling for monetization. In Q2, we have already begun the early testing of the AI search monetization.

And in Q2, we have already begun the early testing outlet such monetization, while it's still early.

Early days, we have seen the word encouraging signals and we believe with shrimp will continue over time.

Let's say there were always poor user experience with first.

So it sure Huawei delivery approach to AI search monetization and large scale monetization has not started yet saying Allison time would have been aggressively accelerating the areas such information, including change in those car ratio is the highest monetization capabilities. So in the near term how were to expire.

The revenue margin will remain under six.

Second pressure, but long term, we believe this positions us well for stronger growth.

Thank you.

Yeah.

Our next question comes from the line of Miranda Shuang.

With Banc of America Securities. Please go ahead.

Thank you for taking my question.

Rong Luo: While it is still in early days, we have seen very encouraging signals, and we believe this trend will continue over time. That said, we always put user experiences first. We choose a very deliberate approach to AI search monetization. Large-scale monetization has not started yet. At the same time, we have been aggressively accelerating the AI search transformation, including changing those queries with the highest monetization capabilities. In the near term, we do expect the revenue and margin will remain under significant pressure. Long term, we believe this positions us for stronger growth.

<unk> is about cloud GPU.

So how should we assess the sustainability of the AI driven.

Especially against the backdrop of itself economy, and anticipating market competition.

And also with it.

H 'twenty chip restriction.

Benjamin see any meaningful improvement in supply.

How do you think about the chip.

<unk> will remain as a limiting factor for growth going forward. Thank you.

Miranda I would figure out questions.

Actually we are seeing strong and growing demand for air driven cloud services as the China's current market continues its shift towards centric computing.

Henry Hai Jianhe: Thank you.

Robin Li: Thank you. Our next question comes from the line of Miranda Xuan with Bank of America Securities. Please go ahead.

The adoption of gene AI and foundation model is accelerating.

<unk> has become a strategic focus for more and more companies.

From what we've all deserved demand is picking up across a wide range of sectors not only from early adopters like Tiger and Internet companies.

Speaker 5: Thank you for taking my question. My question is about AI Cloud and GPU. How should we assess the sustainability of the AI-driven cloud demand, especially against the backdrop of a soft economy and intensifying market competition? Also, with the easing of the H20 chip restriction, has management seen any meaningful improvement in supply? How do you think about the chip constraint? Will it remain as a limiting factor for growth going forward? Thank you.

But also from a broader set of industries like utilities financial services and the public sector.

We're interested in are driven cloud solution is rising quickly.

Meanwhile, technological advances awfully strong new demand from the emerging sectors such as in <unk>.

We were effectively capturing new opportunities and working with leading players in this field.

Juan Lin: Hi Miranda. I would take your questions. Actually, we are seeing strong and growing demand for AI-driven cloud services as China's cloud market continues its shift toward AI-centric computing. The adoption of GenAI and foundation models is accelerating, and AI has become a strategic focus for more and more companies. From what we've observed, demand is picking up across a wide range of sectors, not only from early adopters like Titan and AI companies, but also from a broader set of industries like utilities, financial services, and the public sector. We're interested in AI-driven cloud solutions; it's rising quickly. Meanwhile, technological advances are fueling strong new demand from emerging sectors such as embodied AI. We are effectively capturing new opportunities and working with leading players in this field, including 20 of China's promising embodied AI startups, and four of which are China's top humanoid robot companies.

Including 20th China's.

Promising embodied AI startups.

Ford, which or China's top humanoid robot companies.

The reason, we were able to capture opportunities. So quickly is our unique competitive position.

What differentiates us.

Our ability to deliver highly cost effective.

And two in AI cloud products and solutions.

Thanks to our full stack AI capabilities.

Yes.

An example.

We keep improving utilization and efficiency.

Our industry, leading resource management capabilities.

By dynamically allocating computing resources, we can better match workflows with the suitable resources and manage demand.

Fluctuations.

Everyone better performance at lower costs.

As a result, we can provide cost efficient reliable and scalable cloud services that makes it really easy for companies to adopt AI with minimal effort and SKU into real business impact.

Juan Lin: The reason we are able to capture opportunities so quickly is our unique competitive positioning. What differentiates us is our ability to deliver highly cost-effective end-to-end AI Cloud products and solutions, thanks to our full-stack AI capabilities. Taking our AI infra as an example, we keep improving utilization and efficiency through our industry-leading resource management capabilities. By dynamically allocating computing resources, we can better match workloads with the suitable resources and manage demand fluctuations, delivering better performance at lower costs. As a result, we can provide cost-efficient, reliable, and scalable cloud services that make it really easy for companies to adopt AI with minimal effort and scale it into real business impact. On your question about chips, our focus remains on building a flexible AI architecture that maximizes GPU utilization and supports a variety of chips, including domestic chips.

On your question about tips.

Our focus remains on building a flexible architecture that maximize GPU utilization and it supports a variety of chips, including domestic trips.

This enables <unk> to better serve customers as the supply environment evolves.

Looking ahead.

We believe that our self sufficient supply chain together with increasingly major homegrown software stacks will form a solid foundation for sustainable innovation in China's AI ecosystem.

And clearly baidu is well positioned to lead the transition.

Thank you.

Yes.

Okay.

Thank you.

Next question comes from V Xiang.

Please go ahead.

Sure. Thank you management. Thank you for taking my question.

Given the near term headwinds on AD revenue and continued investment in AI.

I Wonder what are the plans for cost optimization and efficiency improvement that can help protect margins how should we think about the margin trend in 2026 and beyond thank you.

Juan Lin: This enables us to better serve customers as the supply environment evolves. Looking ahead, we believe that a self-sufficient supply chain, together with increasingly major homegrown software stacks, will form a solid foundation for sustainable innovation in China's AI ecosystem. Clearly, Baidu is well-positioned to lead the transition. Thank you.

Thank you this is Henry.

First of all on the AI investment, we remain committed to investing AI and have made a substantial investments throughout this year.

Particularly in AI transformation of search.

As Stuart has mentioned earlier.

Our core legacy product search is undergoing a radical transformation.

Over the past several quarters, we have ramp up investments to accelerate this transformation, which.

Robin Li: Thank you. Next question comes from Vey Xiong, UBS. Please go ahead.

Which we believe.

It's critical to drive long term value.

Ever since the AI search monetization is still in very early stages and has yet to scale, our revenue and our margins on the considerable pressure in the near term with Q3 expected to be especially challenging.

Speaker 5: Sure. Thank you, management. Thank you for taking my question. Given the near-term headwinds on ad revenue and continued investment in AI, I wonder what are the plans for cost optimization and efficiency improvement that can help protect margins? How should we think about the margin trend in 2026 and beyond? Thank you.

To help cushion in the near term impact.

We will actively drive internal efficiency gains. This include a strengthening of the resource coordination efforts across different business groups and improving overall resource utilization efficiency.

Rong Luo: Thank you. This is Rong Luo. First of all, on the AI investment, we remain committed to investing in AI and have made substantial investments throughout this year, particularly in the AI transformation of Baidu Search. As Juan Lin mentioned earlier, our core legacy product Baidu Search is undergoing a radical transformation. Over the past several quarters, we have ramped up investments to accelerate this transformation, which we believe is critical to drive long-term value. However, since the AI search monetization is still in very early stages and has yet to scale, our revenue and margins are under considerable pressure in the near term, with Q3 expected to be especially challenging. To help push the near-term impact, we will actively drive internal efficiency gains. This includes strengthening resource coordination efforts across different business groups and improving overall resource utilization efficiency.

But also on the other ads, while we are remaining committed to long term AI investment will be very prudent in managing the pace to avoid a future deterioration of fluctuation in modules.

Looking further ahead, we see potential for margin improvement.

As our call it about housing business recovers and are stabilized and our non advertising business, both expanded their revenue share and improving their own profitability.

We believe our strategic direction and the disciplined execution should support a gradual recovery and profitability overtime.

Obviously on our outlook front.

I think before around the end of this year, we expect to have a greater visibility into next year and at that time, we will have we will provide a clear outlook beyond the current quarters for the long term.

In parallel we are carefully assessing different approaches to present and to unlock the hidden and on a state at a value of our assets.

Rong Luo: On the other end, while we are remaining committed to long-term AI investment, we will be very prudent in managing the pace to avoid future deterioration or fluctuation in margins. Looking further ahead, we see potential for margin improvement as our core advertising business recovers and stabilizes, and our non-advertising businesses both expand their revenue share and improve their own profitability. We believe our strategic direction and the disciplined execution should support a gradual recovery in profitability over time. On the outlook front, we expect to have greater visibility into next year before or around the end of this year. At that time, we will provide a clear outlook beyond the current quarters for the long term. In parallel, we are carefully assessing different approaches to present and to unlock the hidden and unstated value of our assets.

By doing so we aim to strengthen our portfolio create significant long term value for shareholders, but also support sustainable growth over the long term of business.

Thank you.

Yes.

Okay.

Thank you.

The next question comes from Thomas Chong of Jefferies. Please go ahead.

Hi, Good evening, Thanks management for taking my question. My question is about the global autonomous driving landscape, we see it becomes increasingly competitive.

Apollo go I'll say, it's long term differentiation against peers.

And how do the recent Marlborough partnership fits into your global expansion strategy and what is the road map for achieving sustainable profitability. Thank you.

Okay.

Yes, I think I'll.

What I'm describing is one of the most exciting frontier, where AI is transforming the physical world.

Rong Luo: By doing so, we aim to strengthen our portfolio, create significant long-term value for shareholders, and also support sustainable growth over the long term of business. Thank you.

Success in this field are required.

Cutting edge technology.

Massive sustained.

Investment.

And the disciplined execution over many years.

Robin Li: Thank you. Our next question comes from Thomas Chong, Jefferies. Please go ahead.

To achieve commercial operations at scale.

One of the earliest entrants we have viewed and unparalleled foundation across all these areas and.

Speaker 5: Hi. Good evening. Thanks, management, for taking my question. My question is about the global autonomous driving landscape. We see it becomes increasingly competitive. How does Apollo Go assess its long-term differentiation against peers, and how do the recent Uber and Lyft partnership fit into your global expansion strategy, and what is the roadmap for achieving sustainable profitability? Thank you.

And become an undistributed undisputed global leader in the field.

With our <unk> model validated our current focus is on running.

And how old are the reasons, we bought partnership fits into your global expansion strategy and what gets the volt bacci.

<unk> real world operations at scale.

And we have established global leadership in both left hand, and the right hand.

Achieving sustainable profitability. Thank you.

Drive Robo taxi market.

In the left hand drive market, we were the first to achieve breakeven.

Yeah, I think I'm, describing is one of the most exciting frontier, where AI is transforming the physical world and.

Rong Luo: Yeah, I think autonomous driving is one of the most exciting frontiers where AI is transforming the physical world. Success in this field requires cutting-edge technology, massive sustained investment, and disciplined execution over many years to achieve commercial operations at scale. One of the earliest entrants, we have built an unparalleled foundation across all these areas and become an undisputed global leader in this field. With our business model validated, our current focus is on running real-world operations at scale. We have established global leadership in both left-hand and right-hand drive robotaxi markets. In the left-hand drive market, we were the first to achieve UE break-even. All of our current operations in mainland China are fully driverless. Globally, we are among the very few capable of scaled fully driverless and commercial operations in a single complex, large population area. In the right-hand drive market, we lead the industry globally.

And all of our current operations in China in mainland China are fully travelers.

And success in this field requires.

Globally, we are among the very few.

Cutting edge technology.

<unk> sustained.

Capable of scaled fully driverless and commercial operations in a single complex.

Investment.

And the disciplined execution over many years.

To achieved commercial operations at scale.

Large population area.

And in the right hand drive market.

One of the earliest entrants we have viewed and unparalleled foundation across all this arris.

We lead the industry globally in Hong Kong, we are.

We've rapidly expanded our opening of testing and advanced into increasing Li <unk>.

And become an disagree with you that undisputed a global leader in the field.

With our business model validated our current focus is on running real well operations at scale.

Complex urban scenarios.

Following regulatory approval.

Our technology stack and operational expertise are highly transferable across geographies.

And we have established global leadership in both left hand, and the right hand.

Drive Robo taxi market.

Allowing us to adapt efficiently to new markets and.

In the left hand drive market, we were the first to achieve breakeven.

Regulatory environment.

We also did a major advantage based on <unk> six the world's first and only.

And all of our current operations in China in mainland China are fully fabulous.

Production vehicle with defined.

Globally, we are among the very few.

Especially.

Capable of scaled fully properly and commercial operations in a single complex large population area.

For level four autonomous driving from day one.

Unlike some retrofitted cars <unk> six is a perfect skewed from the ground up with a focus on safety.

And in the right hand drive market.

We lead the <unk>.

System integration and cost efficiency.

Industry globally in Hong Kong, we are we rapidly expanded our opening of testing and advanced into increasing the Ah <unk>.

Rong Luo: In Hong Kong, we have rapidly expanded our open road testing and advanced into increasingly complex urban scenarios following regulatory approval. Our technology stack and operational expertise are highly transferable across geographies, allowing us to adapt efficiently to new markets and regulatory involvement. We also view the major advantage with RT6, the world's first and only production vehicle designed specially for Level 4 autonomous driving from day one. Unlike some retrofitted cars, RT6 is purpose-built from the ground up with a focus on safety, system integration, and cost efficiency. It has the lowest unit cost globally for Level 4 and is already running on our commercial operations at scale, giving us a big edge for broader rollouts. With this strength, we are confident about expanding to more cities worldwide, especially those with higher ride fares. Here's the picture.

It has the lowest unit cost globally for level four and he is already running on our commercial operations at scale.

Giving us a big edge for a broader rollout.

Complex urban scenarios.

Following regulatory approval.

With this strength, we are confident about expanding to more cities worldwide, especially those with higher right fares.

Our technology stack and our operational expertise are highly transferable across geographies.

Allowing us to adapt efficiently to new markets and regulatory involvement.

Here's the picture, we have the lowest cost level four vehicle and most efficient operation with.

We also did a major advantage based the RT six the world's first and only a production vehicle designed especially.

We first achieved you breakeven in Wuhan where <unk>.

Ah.

Over 30% cheaper than the tier one cities in China.

No for level four autonomous driving from day one.

And far below many overseas markets.

Unlike some retrofitted cars <unk> six is a perfect skewed from the ground up with a focus on safety our system integration and cost efficiency.

Yet, we still managed to improve our business model there.

Thank you operator.

Such operational excellence and cost efficiency is unmatched globally.

It has the lowest unit cost a globally for level four and he is already running all our commercial operations and skill.

For us expanding overseas mean going from low fare market to high fair market.

Often with fur several times higher are huge cost advantage can deliver much stronger unit economics in most major cities worldwide.

Giving us a big edge for a broader rollout.

But does this twin says we are confident about expanding to more cities worldwide, especially those with higher right fares.

To accelerate our global expansion. We are also taking a proactive approach to global partnership.

Here's the picture, we have the lowest cost level four vehicle and most efficient operation.

As we mentioned in our prepared remarks.

Rong Luo: We have the world's lowest cost Level 4 vehicle and most efficient operation. We first achieved UE break-even in Wuhan, where taxi fares are over 30% cheaper than the Tier 1 cities in China and far below many overseas markets. Yet we still managed to prove our business model there. Such operational excellence and cost efficiency are unmatched globally. For us, expanding overseas means going from low fare markets to high fare markets, often with fares several times higher. Our huge cost advantage can deliver much stronger unit economics in most major cities worldwide. To accelerate our global expansion, we're also taking a proactive approach to global partnerships. As we mentioned in our prepared remarks, we announced a partnership with Uber in July and followed by Lyft in August.

We announced a partnership with Uber in July and followed by a lift in August our.

We first achieved you your break even in what were taxi fires are over 30% cheaper than the tier one cities in China.

Our partnerships with world, leading mobility platforms.

Well help us enter and scale more quickly into global markets like Middle East Asia and Europe.

And far below many overseas markets.

Yet, we still managed to improve our business model there.

Looking ahead, we anticipate accelerating growth in ride volumes.

Thank you operator, I'll, such operational excellence and cost efficiency is unmatched globally.

Our global operational fleet by multiplying.

With that momentum, we're confident that our polo golf will continue to lead the market and stay.

For us expanding overseas being going from low fare markets to high fair market.

At the forefront of autonomous driving.

Often with fur several times higher are huge cost advantage can deliver much stronger unit economics in most of major cities worldwide.

Worldwide.

Thank you.

Thank you.

Thank you.

To accelerate our global expansion. We are also taking a proactive approach to global partnerships as we mentioned in our prepared remarks.

That does conclude our conference for today.

Thank you for participating you may now disconnect.

We announced a partnership with Uber in July and followed by a lift in August our.

Rong Luo: Our partnerships with these world's leading mobility platforms will help us enter and scale more quickly into global markets like the Middle East, like Asia, like Europe. Looking ahead, we anticipate accelerating growth in ride volumes with our global operational fleet size multiplying. With that momentum, we are confident that Apollo Go will continue to lead the market and stay at the forefront of autonomous driving worldwide. Thank you.

Our partnerships with world, leading mobility platforms are well helped us enter and scale more quickly into global markets like Middle East Asia Pac Europe.

Looking ahead, we anticipate accelerating growth in ride volumes.

Our global operational fleet by some occupying.

But is that momentum, we're confident that our polo golf will continue to lead the market and stay.

At the forefront of.

Uh-huh striving clarified.

Worldwide.

Thank you.

Thank you.

Robin Li: Thank you. Thank you. That does conclude our conference for today. Thank you for participating. You may now disconnect.

Thank you.

That does conclude our conference for today.

Thank you for participating you may now disconnect.

Yes.

Okay.

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