Baidu, Inc.

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In depth: What will Chinese apps do after India ban? Jul 22, 2020

Company Background

Baidu is the largest Internet search engine in China. The company's strength lies in its domestic market share, controlling 70% of Chinese online searches. The company is one of China's three biggest Internet companies, together with Alibaba Group and Tencent, collectively known as BAT. These three lead the Chinese information and technology industry.

Robin Li, who studied in the U.S. and worked at search engine company Infoseek, established Baidu after returning to China. Li is CEO. The company is largely dependent on his insight and ability for launching new businesses and expanding overseas.

Baidu has been actively diversifying its areas of business by entering speech translation, artificial intelligence and autonomous driving systems for cars. The expansion comes as domestic competition heats up, due in part, to Alibaba Group, which launched its own mobile app search engine.

Baidu is also trying to diversify its revenue by actively acquiring operations at home and abroad, including Japanese and American startups.

Li is Baidu's leading shareholder owning some 20% of the company's shares. Baidu is a private enterprise but is known to have close ties with the Chinese government. The company is taking a cooperative stance toward government restrictions on freedom of speech.

Also, Li is a member of the Chinese People's Political Consultative Conference, a political advisory body in China.

It was discovered at the end of 2013 that its free Japanese-language input software had been sending data to Baidu without the consent of its users.

Business Summary

Baidu, Inc. engages in the provision of internet search and online marketing solutions. The firm’s products and services include Baidu App, Baidu Search, Baidu Feed, Haokan, Quanmin, Baidu Post Bar, Baidu Knows, Baidu Encyclopedia, Baidu Input Method Editor or Baidu IME and Overseas Products. It operates through the following segments: Baidu Core and iQIYI. The Baidu Core segment provides search-based, feed-based, and other online marketing services. The iQiyi segment is an online entertainment service provider, which offers original, professionally produced and partner-generated content on its platform. The company was founded by Yanhong Li and Xu Yong on January 18, 2000 and is headquartered in Beijing, China.

Financial Highlights

Dec 2020	USD
Revenue	15,512.94M	15,512.94M
Gross Profit	7,521.62M	7,521.62M
Operating income	2,077.58M	2,077.58M
Income before tax	3,670.98M	3,670.98M
Net income	3,243.00M	3,243.00M
EBITDA	2,982.22M	2,982.22M
Diluted EPS	9.41	9.41
Dividends Per Share	0	0
Total Assets	50,874.33M	50,874.33M
Total liabilities	21,539.64M	21,539.64M
Total equity	27,936.02M	27,936.02M
Operating cash flow	3,506.11M	3,506.11M
	Currency in USD	Currency in USD

Historical Data

USD

	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020
Revenue	10,619.21M	12,549.01M	15,456.67M	15,544.90M	15,512.94M
Gross Profit	5,252.28M	6,116.25M	7,636.83M	6,449.19M	7,521.62M
Operating income	1,512.60M	2,321.76M	2,346.98M	912.75M	2,077.58M
Income before tax	2,183.95M	3,158.52M	4,141.44M	132.27M	3,670.98M
Net income	1,666.93M	2,710.47M	4,147.34M	286.54M	3,243.00M
EBITDA	2,766.08M	4,052.98M	4,795.21M	3,676.92M	2,982.22M
Diluted EPS	4.80	7.75	11.79	0.82	9.41
Dividends Per Share	0	0	0	0	0
Total Assets	26,188.55M	38,656.01M	43,340.95M	43,257.10M	50,874.33M
Total liabilities	12,123.89M	18,635.74M	17,742.40M	18,447.67M	21,539.64M
Total equity	13,277.72M	17,712.83M	23,726.20M	23,486.36M	27,936.02M
Operating cash flow	3,384.43M	4,857.49M	5,435.53M	4,118.46M	3,506.11M

	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020
Revenue	10,619.21M	12,549.01M	15,456.67M	15,544.90M	15,512.94M
Gross Profit	5,252.28M	6,116.25M	7,636.83M	6,449.19M	7,521.62M
Operating income	1,512.60M	2,321.76M	2,346.98M	912.75M	2,077.58M
Income before tax	2,183.95M	3,158.52M	4,141.44M	132.27M	3,670.98M
Net income	1,666.93M	2,710.47M	4,147.34M	286.54M	3,243.00M
EBITDA	2,766.08M	4,052.98M	4,795.21M	3,676.92M	2,982.22M
Diluted EPS	4.80	7.75	11.79	0.82	9.41
Dividends Per Share	0	0	0	0	0
Total Assets	26,188.55M	38,656.01M	43,340.95M	43,257.10M	50,874.33M
Total liabilities	12,123.89M	18,635.74M	17,742.40M	18,447.67M	21,539.64M
Total equity	13,277.72M	17,712.83M	23,726.20M	23,486.36M	27,936.02M
Operating cash flow	3,384.43M	4,857.49M	5,435.53M	4,118.46M	3,506.11M

Valuation Measures

Dec 2020
PER	22.77
ROA	6.89%
ROE	12.61%
Operating margin	13.39%
Profit margin	20.90%

Key executives

Chairman & Chief Executive Officer: Yan Hong Li
Chief Financial Officer: Rong Luo
Chief Technology Officer: Hai Feng Wang
Executive Vice President: Dou Shen
Senior Vice President & General Counsel: Zhi Xiang Liang

Shareholders

PRIMECAP Management Co. (3.3%)
BlackRock Fund Advisors (3.0%)
The Vanguard Group, Inc. (2.7%)
Dodge & Cox (2.2%)
T. Rowe Price Associates, Inc. (Investment Management) (1.9%)
SSgA Funds Management, Inc. (1.9%)
Baillie Gifford & Co. (1.3%)
Pictet Asset Management SA (1.3%)
Norges Bank Investment Management (1.2%)
Ariel Investments LLC (0.9%)

Contact Details

Website:http://www.baidu.com
Address: Baidu Campus, No. 10 Shangdi, 10th Street, Beijing, 100085, China
Phone: +86.10.5992.8888

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Last Updated on 28 Jan, 2022