# EDGAR Filing Document

**Accession Number:** 0001329099
**File Stem:** 0001193125-25-183792
**Filing Date:** 2025-8
**Character Count:** 70288
**Document Hash:** 642be3f2f3b4c154881b8feab735adc9
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-25-183792.hdr.sgml**: 20250820

**ACCESSION NUMBER**: 0001193125-25-183792

**CONFORMED SUBMISSION TYPE**: 6-K

**PUBLIC DOCUMENT COUNT**: 3

**CONFORMED PERIOD OF REPORT**: 20250820

**FILED AS OF DATE**: 20250820

**DATE AS OF CHANGE**: 20250820

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Baidu, Inc.
- **CENTRAL INDEX KEY:** 0001329099
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-COMPUTER PROGRAMMING, DATA PROCESSING, ETC. [7370]
- **ORGANIZATION NAME:** 06 Technology
- **EIN:** 000000000
- **STATE OF INCORPORATION:** E9
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 6-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-51469
- **FILM NUMBER:** 251234043

**BUSINESS ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** BAIDU CAMPUS, NO. 10 SHANGDI 10TH STREET
- **STREET 2:** HAIDIAN DISTRICT
- **CITY:** BEIJING
- **NON US STATE TERRITORY:** CHINA
- **PROVINCE COUNTRY:** F4
- **BUSINESS PHONE:** (86-10)59928888

**MAIL ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** BAIDU CAMPUS, NO. 10 SHANGDI 10TH STREET
- **STREET 2:** HAIDIAN DISTRICT
- **CITY:** BEIJING
- **NON US STATE TERRITORY:** CHINA
- **PROVINCE COUNTRY:** F4

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Baidu.com, Inc.
- **DATE OF NAME CHANGE:** 20050602

**UNITED STATES** 

**SECURITIES AND EXCHANGE COMMISSION** 

**WASHINGTON, D.C. 20549** 

**FORM 6-K** 

**REPORT OF FOREIGN PRIVATE ISSUER** 

**PURSUANT TO RULE 13a-16 OR 15d-16** 

**UNDER THE SECURITIES EXCHANGE ACT OF 1934** 

**For the month of August 2025** 

**Commission File Number: 000-51469** 

## BAIDU, INC.
**Baidu Campus** 

**No. 10 Shangdi 10th Street** 

**Haidian District, Beijing 100085** 

**The People's Republic of China** 

**(Address of principal executive offices)** 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F ☒ Form 40-F ☐

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**EXPLANATORY NOTE** 

Baidu, Inc. (the "Company") hereby furnishes the press release announcing its unaudited financial results for the quarter ended June 30, 2025, which is attached hereto as exhibit 99.1. Pursuant to the Rules Governing the Listing of Securities on the Hong Kong Stock Exchange, the Company hereby also furnishes the reconciliation of the material differences between its unaudited financial results for the quarter ended June 30, 2025 prepared under the U.S. Generally Accepted Accounting Principles and the International Financial Reporting Standards, which is attached hereto as exhibit 99.2.

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**EXHIBIT INDEX** 

---

| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| 99.1 | Press Release –– Baidu Announces Second Quarter 2025 Results |
| 99.2 | Reconciliation Between the U.S. Generally Accepted Accounting Principles and the International Financial Reporting Standards |

---

------

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | | |
|:---|:---|:---|
| BAIDU, INC. | BAIDU, INC. | BAIDU, INC. |
|  By | : | /s/ Haijian He |
| Name | : | Haijian He |
| Title | : | Chief Financial Officer |

---

Date: August 20, 2025

## Exhibit 99.1

**Exhibit 99.1** 

**Baidu Announces Second Quarter 2025 Results** 

BEIJING, China, Aug 20, 2025 – Baidu, Inc. (NASDAQ: BIDU and HKEX: 9888 (HKD Counter) and 89888 (RMB Counter)), ("Baidu" or the "Company"), a leading AI company with strong Internet foundation, today announced its unaudited financial results for the second quarter ended June 30, 2025.

"In the second quarter, our AI Cloud business continued to deliver robust and healthy revenue growth, supported by our strengthening full-stack AI capabilities and comprehensive end-to-end AI products and solutions. This performance helped mitigate the near-term pressure on online marketing business, as we intensified the AI transformation of Baidu Search to elevate user experience and establish a stronger foundation for long-term growth. Apollo Go accelerated global expansion while actively exploring new business models, underscored by our leadership in both left-hand drive and right-hand drive robotaxi markets globally," said Robin Li, Co-founder and CEO of Baidu. "We remain focused on AI initiatives that offer the greatest long-term value creation potential, where our technology and innovation can make the most meaningful and lasting impact."

"In Q2, mainly propelled by new AI initiatives, Baidu Core's non-online marketing revenue exceeded RMB 10 billion for the first time, delivering 34% year-over-year growth and marking a more balanced, diversified mix," said Haijian He, CFO of Baidu. "We remain committed to our AI investments, focusing on advancing AI transformation across the Mobile Ecosystem, sustaining healthy growth momentum in AI Cloud, and accelerating Apollo Go's global expansion. While navigating near-term challenges, we believe these strategic priorities will drive significant long-term value."

**Second Quarter 2025 Financial Highlights <sup>1</sup>** 

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Baidu, Inc.** | **Baidu, Inc.** | **Baidu, Inc.** | **Baidu, Inc.** | **Baidu, Inc.** | **Baidu, Inc.** | **Baidu, Inc.** | **Baidu, Inc.** |
| (In millions except per ADS, unaudited) | **Q2<br>2024** | **Q1<br>2025** | **Q2<br>2025** |  | *YOY* | *YOY* | *QOQ* | *QOQ* |
|  | **RMB** | **RMB** | **RMB** | **US$** |  |  |  |  |
|  **Total revenues** | 33931 | 32452 | 32713 | 4567 | | *(4 %)* | | *1 %* |
|  **Operating income** | 5944 | 4508 | 3277 | 457 | | *(45 %)* | | *(27 %)* |
|  **Operating income (non-GAAP) <sup>2</sup>** | 7500 | 5333 | 4445 | 620 | | *(41 %)* | | *(17 %)* |
|  **Net income to Baidu** | 5488 | 7717 | 7322 | 1022 | | *33 %* | | *(5 %)* |

---

<sup>1</sup> Unless otherwise noted, RMB to USD was converted at an exchange rate of RMB7.1636 as of June 30, 2025, as set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System. Translations are provided solely for the convenience of the reader.

<sup>2</sup> Non-GAAP measures are defined in the Non-GAAP Financial Measures section (see also "Reconciliations of Non-GAAP Financial Measures to the Nearest Comparable GAAP Measures" for more details).

------

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  **Net income to Baidu (non-GAAP) <sup>2</sup>** |  | 7396 |  | 6469 |  | 4795 |  | 669 | | *(35 %)* | | *(26 %)* |
|  **Diluted earnings per ADS** |  | 15.01 |  | 21.59 |  | 20.35 |  | 2.84 | | *36 %* | | *(6 %)* |
|  **Diluted earnings per ADS (non-GAAP) <sup>2</sup>** |  | 21.02 |  | 18.54 |  | 13.58 |  | 1.90 | | *(35 %)* | | *(27 %)* |
|  **Adjusted EBITDA <sup>2</sup>** |  | 9147 |  | 7209 |  | 6492 |  | 906 | | *(29 %)* | | *(10 %)* |
|  **Adjusted EBITDA margin** | | *27 %* | | *22 %* | | *20 %* | | *20 %* |  |  |  |  |

---

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Baidu Core** | **Baidu Core** | **Baidu Core** | **Baidu Core** | **Baidu Core** | **Baidu Core** | **Baidu Core** | **Baidu Core** | **Baidu Core** | **Baidu Core** | **Baidu Core** | **Baidu Core** |
| (In millions, unaudited) | **Q2<br>2024** | **Q2<br>2024** | **Q1<br>2025** | **Q1<br>2025** | **Q2<br>2025** | **Q2<br>2025** |  |  | *YOY* | *YOY* | *QOQ* | *QOQ* |
|  | **RMB** | **RMB** | **RMB** | **RMB** | **RMB** | **RMB** | **US$** | **US$** |  |  |  |  |
|  **Total revenues** |  | 26687 |  | 25463 |  | 26251 |  | 3664 | | *(2 %)* | | *3 %* |
|  **Operating income** |  | 5608 |  | 4164 |  | 3322 |  | 464 | | *(41 %)* | | *(20 %)* |
|  **Operating income (non-GAAP) <sup>2</sup>** |  | 7005 |  | 4872 |  | 4385 |  | 612 | | *(37 %)* | | *(10 %)* |
|  **Net income to Baidu Core** |  | 5462 |  | 7633 |  | 7382 |  | 1030 | | *35 %* | | *(3 %)* |
|  **Net income to Baidu Core (non-GAAP)** <sup>2</sup> |  | 7290 |  | 6330 |  | 4792 |  | 669 | | *(34 %)* | | *(24 %)* |
|  **Adjusted EBITDA**<sup>2</sup> |  | 8617 |  | 6712 |  | 6397 |  | 893 | | *(26 %)* | | *(5 %)* |
|  **Adjusted EBITDA margin** | | *32 %* | | *26 %* | | *24 %* | | *24 %* |  |  |  |  |

---

**Operational Highlights** 

*Corporate* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Baidu open-sourced the ERNIE 4.5 series, its latest and most advanced family of foundation models comprising ten
models of different architectures and sizes, in June 2025. The ERNIE 4.5 series delivers strong performance particularly in instruction following, world knowledge memorization, and visual understanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Baidu has returned US$677 million to shareholders since the beginning of Q1 2025, bringing the cumulative
repurchase to US$2.3 billion under the 2023 share repurchase program.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Baidu launched MuseSteamer, its proprietary video generation model in July 2025.

*AI Cloud* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Baidu AI Cloud was ranked the No.1 AI cloud provider for the sixth consecutive year, according to IDC's
2024 report on China's AI public cloud market, issued in July 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Qianfan, Baidu's MaaS platform, expanded its model library with the open-sourced ERNIE 4.5 series and
additional third-party models, while integrating more AI tools and functions to better support AI-native application development.

------

*Intelligent Driving* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Apollo Go, Baidu's autonomous ride-hailing service, provided over 2.2 million fully driverless rides
in the second quarter of 2025, representing a 148% year-over-year increase. As of August 2025, the cumulative rides provided to the public by Apollo Go surpassed 14 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Apollo Go entered into a multi-year strategic partnership with Uber Technologies, Inc. in July 2025 to deploy
thousands of Apollo Go's fully autonomous vehicles on the Uber platform across multiple international markets, with initial deployments planned for Asia and the Middle East.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Apollo Go entered into a strategic partnership with Lyft, Inc. in August 2025 to deploy Apollo Go's fully
autonomous vehicles across key European markets through the Lyft platform, starting with Germany and the United Kingdom and scaling to thousands of vehicles across Europe.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Apollo Go expanded its open-road testing area in Hong Kong to Tung Chung residential areas in June 2025, and to
the Southern District in August.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Apollo Go commenced open-road testing in designated areas in both Dubai and Abu Dhabi in August 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Apollo Go's global footprint covered 16 cities as of June 2025.

*Mobile Ecosystem* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The AI transformation of Baidu Search accelerated rapidly. By the end of June, over 50% of mobile search result
pages contained AI-generated content, up from 35% in April. By July, 64% of mobile search result pages contained AI-generated content, with traditional link-based
results progressively replaced by structured, intelligent, and multimodal-first AI answers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In June 2025, Baidu App's MAUs reached 735 million, up 5% year over year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Managed Page accounted for 50% of Baidu Core's online marketing revenue in the second quarter of 2025.

**Second Quarter 2025 Financial Results** 

**Total revenues** were RMB32.7 billion ($4.57 billion), decreasing 4% year over year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Revenue from Baidu Core** was RMB26.3 billion ($3.66 billion), decreasing 2% year over year; **online marketing revenue** was RMB16.2 billion ($2.27 billion), decreasing 15% year over year, and **non-online marketing revenue** was RMB10.0 billion ($1.40 billion), up 34% year over year, primarily
driven by the boost of AI Cloud business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Revenue from iQIYI** was RMB6.6 billion ($926 million), decreasing 11% year over year.

**Cost of revenues** was RMB18.4 billion ($2.56 billion), increasing 12% year over year, primarily due to an increase in costs related to AI Cloud business and content costs.

------

**Selling, general and administrative expenses** were RMB6.0 billion ($832 million), increasing 5% year over year, primarily due to an increase in channel spending expenses, partially offset by a decrease in personnel-related expenses.

**Research and development expenses** were RMB5.1 billion ($715 million), decreasing 13% year over year, primarily due to a decrease in personnel-related expenses.

**Operating income** was RMB3.3 billion ($457 million). **Baidu Core operating income** was RMB3.3 billion ($464 million), and **Baidu Core operating margin** was 13%. **Non-GAAP operating income** was RMB4.4 billion ($620 million). **Non-GAAP Baidu Core operating income** was RMB4.4 billion ($612 million), and **non-GAAP Baidu Core operating margin** was 17%.

**Total other income, net** was RMB4.9 billion ($678 million), increasing 531% year over year, primarily due to an increase in fair value gain and pickup of earnings from long-term investments, partially offset by an increase in net foreign exchange loss arising from exchange rate fluctuation between Renminbi and U.S. dollar.

**Income tax expense** was RMB881 million ($123 million), compared to RMB1.1 billion in the same period last year.

**Net income attributable to Baidu** was RMB7.3 billion ($1.02 billion), and diluted earnings per ADS was RMB20.35 ($2.84). **Net income attributable to Baidu Core** was RMB7.4 billion ($1.03 billion), and **net margin for Baidu Core** was 28%. **Non-GAAP net income attributable to Baidu** was RMB4.8 billion ($669 million). **Non-GAAP diluted earnings per ADS** was RMB13.58 ($1.90). **Non-GAAP net income attributable to Baidu Core** was RMB4.8 billion ($669 million), and **non-GAAP net margin for Baidu Core** was 18%.

**Adjusted EBITDA** was RMB6.5 billion ($906 million) and **adjusted EBITDA margin** was 20%. **Adjusted EBITDA for Baidu Core** was RMB6.4 billion ($893 million) and **adjusted EBITDA margin for Baidu Core** was 24%.

As of June 30, 2025, **cash, cash equivalents, restricted cash and short-term investments** were RMB124.2 billion ($17.34 billion), and **cash, cash equivalents, restricted cash and short-term investments excluding iQIYI** were RMB119.9 billion ($16.74 billion). As of June 30, 2025, **cash, cash equivalents, short-term investments and long-term time deposits and held-to-maturity investments for Baidu Core** were RMB229.7 billion ($32.07 billion). **Free cash flow** was negative RMB4.7 billion (negative $653 million), and **free cash flow excluding iQIYI** was negative RMB4.6 billion (negative $648 million), primarily due to an increase of investment in AI business. We define net cash position as total cash, cash equivalents, restricted cash, short-term investments, net, long-term time deposits and held-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 RMB155.1 billion ($21.66 billion).

------

**Conference Call Information** 

Baidu's management will hold an earnings conference call at 8.00 AM on Aug 20, 2025, U.S. Eastern Time (8.00 PM on Aug 20, 2025, Beijing Time).

Please register in advance of the conference call using the link provided below. It will automatically direct you to the registration page of "Baidu Inc. Q2 2025 Earnings Conference Call". Please follow the steps to enter your registration details, then click "Register". Upon registering, you will then be provided with the dial-in number, the passcode, and your unique access PIN. This information will also be emailed to you as a calendar invite.

For pre-registration, please click:

<u>https://s1.c-conf.com/diamondpass/10049043-p7skv7.html</u> 

In the 10 minutes prior to the call start time, you may use the conference access information (including dial-in number(s), the passcode and unique access PIN) provided in the calendar invite that you have received following your pre-registration.

Additionally, a live and archived webcast of this conference call will be available at <u>https://ir.baidu.com</u>.

**About Baidu** 

Founded in 2000, Baidu's mission is to make the complicated world simpler through technology. Baidu is a leading AI company with strong Internet foundation, trading on NASDAQ under "BIDU" and HKEX under "9888". One Baidu ADS represents eight Class A ordinary shares.

**Contacts** 

Investors Relations, Baidu, Inc.

Tel: +86-10-5992-8888

Email: ir@baidu.com

------

**Safe Harbor Statement** 

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Among other things, Baidu's and other parties' strategic and operational plans, contain forward-looking statements. Baidu may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in announcements made on the website of The Stock Exchange of Hong Kong Limited (the "Hong Kong Stock Exchange"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about Baidu's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Baidu's growth strategies; its future business development, including development of new products and services; its ability to attract and retain users and customers; competition in the Chinese Internet search and newsfeed market; competition for online marketing customers; changes in the Company's revenues and certain cost or expense items as a percentage of its revenues; the outcome of ongoing, or any future, litigation or arbitration, including those relating to intellectual property rights; the expected growth of the Chinese-language Internet search and newsfeed market and the number of Internet and broadband users in China; Chinese governmental policies relating to the Internet and Internet search providers, and general economic conditions in China and elsewhere. Further information regarding these and other risks is included in the Company's annual report on Form 20-F and other documents filed with the Securities and Exchange Commission, and announcements on the website of the Hong Kong Stock Exchange. Baidu does not undertake any obligation to update any forward-looking statement, except as required under applicable law. All information provided in this press release and in the attachments is as of the date of the press release, and Baidu undertakes no duty to update such information, except as required under applicable law.

**Non-GAAP Financial Measures** 

To supplement Baidu's consolidated financial results presented in accordance with GAAP, Baidu uses the following non-GAAP financial measures: non-GAAP operating income, non-GAAP operating margin, non-GAAP net income attributable to Baidu, non-GAAP net margin, non-GAAP diluted earnings per ADS, adjusted EBITDA, adjusted EBITDA margin and free cash flow. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP.

------

Baidu believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance and liquidity by excluding certain items that may not be indicative of its recurring core business operating results, such as operating performance excluding non-cash charges or non-operating in nature. The Company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing its performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management's internal comparisons to Baidu's historical performance and liquidity. The Company believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. A limitation of using these non-GAAP financial measures is that these non-GAAP measures exclude certain items that have been and will continue to be for the foreseeable future a significant component in the Company's results of operations. These non-GAAP financial measures presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to the Company's data.

Non-GAAP operating income represents operating income excluding share-based compensation expenses, and amortization and impairment of intangible assets resulting from business combinations.

Non-GAAP net income attributable to Baidu represents net income attributable to Baidu excluding share-based compensation expenses, amortization and impairment of intangible assets resulting from business combinations, disposal gain or loss, impairment of long-term investments, and fair value gain or loss of long-term investments and exchangeable bonds, adjusted for related income tax effects. Baidu's share of equity method investments for these non-GAAP reconciling items, amortization and impairment of intangible assets not on the investees' books, accretion of their redeemable non-controlling interests, and the gain or loss associated with the issuance of shares by the investees at a price higher or lower than the carrying value per share, adjusted for related income tax effects, are also excluded.

Non-GAAP diluted earnings per ADS represents diluted earnings per ADS calculated by dividing non-GAAP net income attributable to Baidu, by the weighted average number of ordinary shares expressed in ADS. Adjusted EBITDA represents operating income excluding depreciation, amortization and impairment of intangible assets resulting from business combinations, and share-based compensation expenses.

For more information on non-GAAP financial measures, please see the tables captioned "Reconciliations of non-GAAP financial measures to the nearest comparable GAAP measure."

------

**Baidu, Inc.** 

**Condensed Consolidated Statements of Income** 

(In millions except for per share (or ADS) information, unaudited)

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** | **Six Months Ended** |
|  | **June 30,<br>2024** | **March 31,<br>2025** | **June 30,<br>2025** | **June 30,<br>2025** | **June 30,<br>2024** | **June 30,<br>2025** | **June 30,<br>2025** |
|  | **RMB** | **RMB** | **RMB** | **US$<sup>(2)</sup>** | **RMB** | **RMB** | **US$<sup>(2)</sup>** |
|  **Revenues:** |  |  |  |  |  |  |  |
|  Online marketing services | 20625 | 17306 | 17485 | 2441 | 39115 | 34791 | 4857 |
|  Others | 13306 | 15146 | 15228 | 2126 | 26329 | 30374 | 4240 |
|  **Total revenues** | **33931** | **32452** | **32713** | **4567** | **65444** | **65165** | **9097** |
|  **Costs and expenses:** |  |  |  |  |  |  |  |
|  Cost of revenues<sup>(1)</sup> | 16398 | 17487 | 18357 | 2563 | 31689 | 35844 | 5004 |
|  Selling, general and administrative<sup>(1)</sup> | 5700 | 5913 | 5960 | 832 | 11075 | 11873 | 1657 |
|  Research and development<sup>(1)</sup> | 5889 | 4544 | 5119 | 715 | 11252 | 9663 | 1349 |
|  **Total costs and expenses** | **27987** | **27944** | **29436** | **4110** | **54016** | **57380** | **8010** |
|  **Operating income** | **5944** | **4508** | **3277** | **457** | **11428** | **7785** | **1087** |
|  **Other income:** |  |  |  |  |  |  |  |
|  Interest income | 1993 | 2664 | 1957 | 273 | 4084 | 4621 | 645 |
|  Interest expense | (742) | (801) | (701) | (98) | (1508) | (1502) | (210) |
|  Foreign exchange gain (loss), net | 93 | (210) | (621) | (87) | 494 | (831) | (116) |
|  Share of (losses) earnings from equity method investments | (119) | 574 | 694 | 97 | (324) | 1268 | 177 |
|  Others, net | (454) | 2260 | 3534 | 493 | (729) | 5794 | 809 |
|  **Total other income, net** | **771** | **4487** | **4863** | **678** | **2017** | **9350** | **1305** |
|  **Income before income taxes** | **6715** | **8995** | **8140** | **1135** | **13445** | **17135** | **2392** |
|  Income tax expense | 1131 | 1177 | 881 | 123 | 2014 | 2058 | 287 |
|  **Net income** | **5584** | **7818** | **7259** | **1012** | **11431** | **15077** | **2105** |
|  Net income (loss) attributable to noncontrolling interests | 96 | 101 | (63) | (10) | 495 | 38 | 5 |
|  **Net income attributable to Baidu** | **5488** | **7717** | **7322** | **1022** | **10936** | **15039** | **2100** |
|  Earnings per ADS (1 ADS representing 8 Class A ordinary shares): | Earnings per ADS (1 ADS representing 8 Class A ordinary shares): |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - Basic | 15.11 | 21.86 | 20.90 | 2.92 | 30.12 | 42.76 | 5.97 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - Diluted | 15.01 | 21.59 | 20.35 | 2.84 | 29.98 | 41.95 | 5.86 |
|  Earnings per share for Class A and Class B ordinary shares: | Earnings per share for Class A and Class B ordinary shares: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - Basic | 1.89 | 2.73 | 2.61 | 0.36 | 3.77 | 5.35 | 0.75 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - Diluted | 1.88 | 2.70 | 2.54 | 0.35 | 3.74 | 5.24 | 0.73 |
|  Weighted average number of Class A and Class B ordinary shares outstanding (in millions): | Weighted average number of Class A and Class B ordinary shares outstanding (in millions): | Weighted average number of Class A and Class B ordinary shares outstanding (in millions): |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - Basic | 2796 | 2751 | 2720 | 2720 | 2800 | 2735 | 2735 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - Diluted | 2804 | 2762 | 2730 | 2730 | 2810 | 2746 | 2746 |
| (1) Includes share-based compensation expenses as follows: | (1) Includes share-based compensation expenses as follows: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cost of revenues | 146 | 77 | 120 | 17 | 254 | 197 | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Selling, general and administrative | 385 | 313 | 276 | 38 | 802 | 589 | 82 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Research and development | 981 | 361 | 685 | 96 | 1599 | 1046 | 146 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total share-based compensation expenses | 1512 | 751 | 1081 | 151 | 2655 | 1832 | 256 |

---

(2) All translations from RMB to U.S. dollars are made at a rate of RMB7.1636 to US$1.00, the exchange rate in
effect as of June 30, 2025 as set forth in the H.10 statistical release of The Board of Governors of the Federal Reserve System.

------

**Baidu, Inc.** 

**Condensed Consolidated Balance Sheets** 

(In millions, unaudited)

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31,<br>2024** | **June 30,<br>2025** | **June 30,<br>2025** |
|  | **RMB** | **RMB** | **US$** |
|  **ASSETS** |  |  |  |
|  **Current assets:** |  |  |  |
|  Cash and cash equivalents | 24832 | 29940 | 4179 |
|  Restricted cash | 11697 | 320 | 45 |
|  Short-term investments, net | 102608 | 93926 | 13112 |
|  Accounts receivable, net | 10104 | 11568 | 1615 |
|  Amounts due from related parties | 790 | 758 | 106 |
|  Other current assets, net | 18818 | 20706 | 2890 |
|  **Total current assets** | **168849** | **157218** | **21947** |
|  **Non-current assets:** |  |  |  |
|  Fixed assets, net | 30102 | 32456 | 4531 |
|  Licensed copyrights, net | 6930 | 6670 | 931 |
|  Produced content, net | 14695 | 14468 | 2020 |
|  Intangible assets, net | 772 | 3266 | 456 |
|  Goodwill | 22586 | 37637 | 5254 |
|  Long-term investments, net | 41721 | 45103 | 6296 |
|  Long-term time deposits and held-to-maturity investments | 98535 | 110123 | 15373 |
|  Amounts due from related parties | 137 | 119 | 17 |
|  Deferred tax assets, net | 2193 | 2352 | 328 |
|  Operating lease right-of-use assets | 10898 | 10682 | 1491 |
|  Receivables related to the proposed acquisition of YY Live, net | 13547 |  |  |
|  Other non-current assets | 16815 | 30475 | 4253 |
|  **Total non-current assets** | **258931** | **293351** | **40950** |
|  **Total assets** | **427780** | **450569** | **62897** |
|  **LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY** | **LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY** |  |  |
|  **Current liabilities:** |  |  |  |
|  Short-term loans | 10669 | 7048 | 984 |
|  Accounts payable and accrued liabilities | 41443 | 38208 | 5334 |
|  Customer deposits and deferred revenue | 14624 | 13142 | 1835 |
|  Deferred income | 684 | 490 | 68 |
|  Long-term loans, current portion | 168 | 15022 | 2097 |
|  Convertible senior notes, current portion | 242 | 1484 | 207 |
|  Notes payable, current portion | 8026 | 4653 | 650 |
|  Amounts due to related parties | 1794 | 1636 | 228 |
|  Operating lease liabilities | 3303 | 3442 | 480 |
|  **Total current liabilities** | **80953** | **85125** | **11883** |
|  **Non-current liabilities:** |  |  |  |
|  Deferred income | 231 | 194 | 27 |
|  Deferred revenue | 585 | 663 | 93 |
|  Amounts due to related parties | 56 | 46 | 6 |
|  Long-term loans | 15596 | 2300 | 321 |
|  Notes payable | 27996 | 46512 | 6493 |
|  Convertible senior notes | 8351 | 6739 | 941 |
|  Deferred tax liabilities | 3870 | 4196 | 586 |
|  Operating lease liabilities | 4973 | 4643 | 648 |
|  Other non-current liabilities | 1557 | 2239 | 312 |
|  **Total non-current liabilities** | **63215** | **67532** | **9427** |
|  **Total liabilities** | **144168** | **152657** | **21310** |
|  **Redeemable noncontrolling interests** | **9870** | **12652** | **1766** |
|  **Equity** |  |  |  |
|  Total Baidu shareholders' equity | 263620 | 275057 | 38396 |
|  Noncontrolling interests | 10122 | 10203 | 1425 |
|  **Total equity** | **273742** | **285260** | **39821** |
|  **Total liabilities, redeemable noncontrolling interests, and equity** | **427780** | **450569** | **62897** |

---

------

**Baidu, Inc.** 

**Selected Information** 

(In millions, unaudited)

---

| | | | | | | | | | | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Three months ended**<br>**June 30, 2024 (RMB)** | **Three months ended**<br>**June 30, 2024 (RMB)** | **Three months ended**<br>**June 30, 2024 (RMB)** | **Three months ended**<br>**June 30, 2024 (RMB)** | **Three months ended**<br>**June 30, 2024 (RMB)** | **Three months ended**<br>**June 30, 2024 (RMB)** | **Three months ended**<br>**June 30, 2024 (RMB)** | **Three months ended**<br>**March 31, 2025 (RMB)** | **Three months ended**<br>**March 31, 2025 (RMB)** | **Three months ended**<br>**March 31, 2025 (RMB)** | **Three months ended**<br>**March 31, 2025 (RMB)** | **Three months ended**<br>**March 31, 2025 (RMB)** | **Three months ended**<br>**March 31, 2025 (RMB)** | **Three months ended**<br>**March 31, 2025 (RMB)** | **Three months ended**<br>**June 30, 2025 (RMB)** | **Three months ended**<br>**June 30, 2025 (RMB)** | **Three months ended**<br>**June 30, 2025 (RMB)** | **Three months ended**<br>**June 30, 2025 (RMB)** | **Three months ended**<br>**June 30, 2025 (RMB)** | **Three months ended**<br>**June 30, 2025 (RMB)** | **Three months ended**<br>**June 30, 2025 (RMB)** | **Three months ended**<br>**June 30, 2025 (US$)** | **Three months ended**<br>**June 30, 2025 (US$)** | **Three months ended**<br>**June 30, 2025 (US$)** | **Three months ended**<br>**June 30, 2025 (US$)** |
|  | **Baidu<br>Core** | **Baidu<br>Core** | **iQIYI** | **iQIYI** | Elim &<br>adj<sup>(2)</sup> | **Baidu,<br>Inc.** | **Baidu,<br>Inc.** | **Baidu<br>Core** | **Baidu<br>Core** | **iQIYI** | **iQIYI** | Elim &<br>adj<sup>(2)</sup> | **Baidu,<br>Inc.** | **Baidu,<br>Inc.** | **Baidu<br>Core** | **Baidu<br>Core** | **iQIYI** | **iQIYI** | Elim &<br>adj<sup>(2)</sup> | **Baidu,<br>Inc.** | **Baidu,<br>Inc.** | **Baidu<br>Core** | **iQIYI** | Elim &<br>adj<sup>(2)</sup> | **Baidu,<br>Inc.** |
|  **Total revenues** |  | **26687** |  | **7439** | (195) |  | **33931** |  | **25463** |  | **7186** | (197) |  | **32452** |  | **26251** |  | **6628** | (166) |  | **32713** | **3664** | **926** | (23) | **4567** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *YOY* |  |  |  |  |  |  |  |  |  |  |  |  |  |  | | *(2 %)* | | *(11* |  | | *(4 %)* |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *QOQ* |  |  |  |  |  |  |  |  |  |  |  |  |  |  | | *3 %* | | *(8* |  | | *1 %* |  |  |  |  |
|  Costs and expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cost of revenues <sup>(1)</sup> |  | 10888 |  | 5678 | (168) |  | 16398 |  | 12246 |  | 5406 | (165) |  | 17487 |  | 13214 |  | 5292 | (149) |  | 18357 | 1844 | 739 | (20) | 2563 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Selling, general and administrative <sup>(1)</sup> |  | 4751 |  | 970 | (21) |  | 5700 |  | 4921 |  | 1026 | (34) |  | 5913 |  | 5018 |  | 960 | (18) |  | 5960 | 700 | 134 | (2) | 832 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Research and development <sup>(1)</sup> |  | 5440 |  | 449 |  |  | 5889 |  | 4132 |  | 412 |  |  | 4544 |  | 4697 |  | 422 |  |  | 5119 | 656 | 59 |  | 715 |
|  **Total costs and expenses** |  | **21079** |  | **7097** | (189) |  | **27987** |  | **21299** |  | **6844** | (199) |  | **27944** |  | **22929** |  | **6674** | (167) |  | **29436** | **3200** | **932** | (22) | **4110** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *YOY* |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Cost of revenues* |  |  |  |  |  |  |  |  |  |  |  |  |  |  | | *21 %* | | *(7* |  | | *12 %* |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Selling, general and administrative* |  |  |  |  |  |  |  |  |  |  |  |  |  |  | | *6 %* | | *(1* |  | | *5 %* |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Research and development* |  |  |  |  |  |  |  |  |  |  |  |  |  |  | | *(14 %)* | | *(6* |  | | *(13 %)* |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Costs and expenses* |  |  |  |  |  |  |  |  |  |  |  |  |  |  | | *9 %* | | *(6* |  | | *5 %* |  |  |  |  |
|  **Operating income (loss)** |  | **5608** |  | **342** | (6) |  | **5944** |  | **4164** |  | **342** | 2 |  | **4508** |  | **3322** |  | **(46** | 1 |  | **3277** | **464** | **(6)** | (1) | **457** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *YOY* |  |  |  |  |  |  |  |  |  |  |  |  |  |  | | *(41 %)* | | *—* |  | | *(45 %)* |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *QOQ* |  |  |  |  |  |  |  |  |  |  |  |  |  |  | | *(20 %)* | | *—* |  | | *(27 %)* |  |  |  |  |
|  *Operating margin* | | *21 %* | | *5 %* |  | | *18 %* | | *16 %* | | *5 %* |  | | *14 %* | | *13 %* | | *(1* |  | | *10 %* |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Add: total other income (loss), net |  | 1011 |  | (240) |  |  | 771 |  | 4602 |  | (115) |  |  | 4487 |  | 4925 |  | (62) |  |  | 4863 | 687 | (9) |  | 678 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: income tax expense |  | 1105 |  | 26 |  |  | 1131 |  | 1136 |  | 41 |  |  | 1177 |  | 854 |  | 27 |  |  | 881 | 119 | 4 |  | 123 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: net income (loss) attributable to NCI |  | 52 |  | 7 | 37<sup>(3)</sup> |  | 96 |  | (3) |  | 4 | 100<sup>(3)</sup> |  | 101 |  | 11 |  | (1) | (73)<sup>(3)</sup> |  | (63) | 2 |  | (12)<sup>(3)</sup> | (10) |
|  **Net income (loss) attributable to Baidu** |  | **5462** |  | **69** | (43) |  | **5488** |  | **7633** |  | **182** | (98) |  | **7717** |  | **7382** |  | **(134** | 74 |  | **7322** | **1030** | **(19)** | 11 | **1022** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *YOY* |  |  |  |  |  |  |  |  |  |  |  |  |  |  | | *35 %* | | *—* |  | | *33 %* |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *QOQ* |  |  |  |  |  |  |  |  |  |  |  |  |  |  | | *(3 %)* | | *—* |  | | *(5 %)* |  |  |  |  |
|  *Net margin* | | *20 %* | | *1 %* |  | | *16 %* | | *30 %* | | *3 %* |  | | *24 %* | | *28 %* | | *(2* |  | | *22 %* |  |  |  |  |
|  Non-GAAP financial measures: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  **Operating income (non-GAAP)** |  | **7005** |  | **501** |  |  | **7500** |  | **4872** |  | **459** |  |  | **5333** |  | **4385** |  | **59** |  |  | **4445** | **612** | **9** |  | **620** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *YOY* |  |  |  |  |  |  |  |  |  |  |  |  |  |  | | *(37 %)* | | *(88* |  | | *(41 %)* |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *QOQ* |  |  |  |  |  |  |  |  |  |  |  |  |  |  | | *(10 %)* | | *(87* |  | | *(17 %)* |  |  |  |  |
|  *Operating margin (non-GAAP)* | | *26 %* | | *7 %* |  | | *22 %* | | *19 %* | | *6 %* |  | | *16 %* | | *17 %* | | *1* |  | | *14 %* |  |  |  |  |
|  **Net income attributable to Baidu (non-GAAP)** |  | **7290** |  | **247** |  |  | **7396** |  | **6330** |  | **304** |  |  | **6469** |  | **4792** |  | **15** |  |  | **4795** | **669** | **2** |  | **669** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *YOY* |  |  |  |  |  |  |  |  |  |  |  |  |  |  | | *(34 %)* | | *(94* |  | | *(35 %)* |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *QOQ* |  |  |  |  |  |  |  |  |  |  |  |  |  |  | | *(24 %)* | | *(95* |  | | *(26 %)* |  |  |  |  |
|  *Net margin (non-GAAP)* | | *27 %* | | *3 %* |  | | *22 %* | | *25 %* | | *4 %* |  | | *20 %* | | *18 %* | | *0* |  | | *15 %* |  |  |  |  |
|  **Adjusted EBITDA** |  | **8617** |  | **536** |  |  | **9147** |  | **6712** |  | **495** |  |  | **7209** |  | **6397** |  | **94** |  |  | **6492** | **893** | **14** |  | **906** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *YOY* |  |  |  |  |  |  |  |  |  |  |  |  |  |  | | *(26 %)* | | *(82* |  | | *(29 %)* |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *QOQ* |  |  |  |  |  |  |  |  |  |  |  |  |  |  | | *(5 %)* | | *(81* |  | | *(10 %)* |  |  |  |  |
|  *Adjusted EBITDA margin* | | *32 %* | | *7 %* |  | | *27 %* | | *26 %* | | *7 %* |  | | *22 %* | | *24 %* | | *1* |  | | *20 %* |  |  |  |  |
| (1) Includes share-based compensation as follows: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cost of revenues |  | 117 |  | 29 |  |  | 146 |  | 50 |  | 27 |  |  | 77 |  | 88 |  | 32 |  |  | 120 | 12 | 5 |  | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Selling, general and administrative |  | 292 |  | 93 |  |  | 385 |  | 257 |  | 56 |  |  | 313 |  | 238 |  | 38 |  |  | 276 | 33 | 5 |  | 38 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Research and development |  | 945 |  | 36 |  |  | 981 |  | 329 |  | 32 |  |  | 361 |  | 652 |  | 33 |  |  | 685 | 91 | 5 |  | 96 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total share-based compensation |  | 1354 |  | 158 |  |  | 1512 |  | 636 |  | 115 |  |  | 751 |  | 978 |  | 103 |  |  | 1081 | 136 | 15 |  | 151 |

---

(2) Relates to intersegment eliminations and adjustments

(3) Relates to the net income attributable to iQIYI noncontrolling interests

------

**Baidu, Inc.** 

**Condensed Consolidated Statements of Cash Flows** 

(In millions,unaudited)

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Three months ended** | **Three months ended** | **Three months ended** | **Three months ended** | **Three months ended** | **Three months ended** | **Three months ended** | **Three months ended** | **Three months ended** | **Three months ended** | **Three months ended** | **Three months ended** |
|  | **June 30, 2024 (RMB)** | **June 30, 2024 (RMB)** | **June 30, 2024 (RMB)** | **March 31, 2025 (RMB)** | **March 31, 2025 (RMB)** | **March 31, 2025 (RMB)** | **June 30, 2025 (RMB)** | **June 30, 2025 (RMB)** | **June 30, 2025 (RMB)** | **June 30, 2025 (US$)** | **June 30, 2025 (US$)** | **June 30, 2025 (US$)** |
|  | **Baidu<br>excl.<br>iQIYI** | **iQIYI** | **Baidu,<br>Inc.** | **Baidu<br>excl.<br>iQIYI** | **iQIYI** | **Baidu,<br>Inc.** | **Baidu<br>excl.<br>iQIYI** | **iQIYI** | **Baidu,<br>Inc.** | **Baidu<br>excl.<br>iQIYI** | **iQIYI** | **Baidu,<br>Inc.** |
|  **Net cash provided by (used in) operating activities** | **7970** | **409** | **8379** | **(6340)** | **339** | **(6001)** | **(864)** | **(13)** | **(877)** | **(120)** | **(2)** | **(122)** |
|  Net cash provided by (used in) investing activities | 13824 | 337 | 14161 | (1175) | (30) | (1205) | (8428) | (113) | (8541) | (1176) | (16) | (1192) |
|  Net cash (used in) provided by financing activities | (9946) | 869 | (9077) | 19639 | 860 | 20499 | (8688) | (465) | (9153) | (1213) | (65) | (1278) |
|  Effect of exchange rate changes on cash, cash equivalents and restricted cash | 66 | 22 | 88 | (5) | (1) | (6) | (210) | (28) | (238) | (29) | (4) | (33) |
|  **Net increase (decrease) in cash, cash equivalents and restricted cash** | **11914** | **1637** | **13551** | **12119** | **1168** | **13287** | **(18190)** | **(619)** | **(18809)** | **(2538)** | **(87)** | **(2625)** |
|  Cash, cash equivalents and restricted cash |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; At beginning of period | 36964 | 6270 | 43234 | 32999 | 3590 | 36589 | 45118 | 4758 | 49876 | 6298 | 664 | 6962 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; At end of period | 48878 | 7907 | 56785 | 45118 | 4758 | 49876 | 26928 | 4139 | 31067 | 3760 | 577 | 4337 |
|  **Net cash provided by (used in) operating activities** | **7970** | **409** | **8379** | **(6340)** | **339** | **(6001)** | **(864)** | **(13)** | **(877)** | **(120)** | **(2)** | **(122)** |
|  Less: Capital expenditures | (2090) | (28) | (2118) | (2869) | (31) | (2900) | (3779) | (21) | (3800) | (528) | (3) | (531) |
|  **Free cash flow** | **5880** | **381** | **6261** | **(9209)** | **308** | **(8901)** | **(4643)** | **(34)** | **(4677)** | **(648)** | **(5)** | **(653)** |

---

Note: Baidu excl. iQIYI represents Baidu, Inc. minus iQIYI's consolidated cash flows.

------

**Baidu, Inc.** 

**Reconciliations of Non-GAAP Financial Measures to the Nearest Comparable GAAP Measures** 

(In millions except for per ADS information, unaudited)

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Three months ended** | **Three months ended** | **Three months ended** | **Three months ended** | **Three months ended** | **Three months ended** | **Three months ended** | **Three months ended** | **Three months ended** | **Three months ended** | **Three months ended** | **Three months ended** |
|  | **June 30, 2024 (RMB)** | **June 30, 2024 (RMB)** | **June 30, 2024 (RMB)** | **March 31, 2025 (RMB)** | **March 31, 2025 (RMB)** | **March 31, 2025 (RMB)** | **June 30, 2025 (RMB)** | **June 30, 2025 (RMB)** | **June 30, 2025 (RMB)** | **June 30, 2025 (US$)** | **June 30, 2025 (US$)** | **June 30, 2025 (US$)** |
|  | **Baidu<br>Core** | **iQIYI** | **Baidu,<br>Inc.** | **Baidu<br>Core** | **iQIYI** | **Baidu,<br>Inc.** | **Baidu<br>Core** | **iQIYI** | **Baidu,<br>Inc.** | **Baidu<br>Core** | **iQIYI** | **Baidu,<br>Inc.** |
|  **Operating income (loss)** | **5608** | **342** | **5944** | **4164** | **342** | **4508** | **3322** | **(46)** | **3277** | **464** | **(6)** | **457** |
|  Add: Share-based compensation expenses | 1354 | 158 | 1512 | 636 | 115 | 751 | 978 | 103 | 1081 | 136 | 15 | 151 |
|  Add: Amortization and impairment of intangible assets<sup>(1)</sup> | 43 | 1 | 44 | 72 | 2 | 74 | 85 | 2 | 87 | 12 |  | 12 |
|  **Operating income (non-GAAP)** | **7005** | **501** | **7500** | **4872** | **459** | **5333** | **4385** | **59** | **4445** | **612** | **9** | **620** |
|  Add: Depreciation of fixed assets | 1612 | 35 | 1647 | 1840 | 36 | 1876 | 2012 | 35 | 2047 | 281 | 5 | 286 |
|  **Adjusted EBITDA** | **8617** | **536** | **9147** | **6712** | **495** | **7209** | **6397** | **94** | **6492** | **893** | **14** | **906** |
|  **Net income (loss) attributable to Baidu** | **5462** | **69** | **5488** | **7633** | **182** | **7717** | **7382** | **(134)** | **7322** | **1030** | **(19)** | **1022** |
|  Add: Share-based compensation expenses | 1353 | 158 | 1425 | 635 | 115 | 687 | 977 | 103 | 1024 | 136 | 14 | 142 |
|  Add: Amortization and impairment of intangible assets<sup>(1)</sup> | 41 | 1 | 41 | 70 | 2 | 71 | 83 | 2 | 84 | 12 |  | 12 |
|  Add: Disposal (gain) | (30) |  | (30) | (91) |  | (91) | (262) |  | (267) | (37) |  | (37) |
|  Add: Impairment of long-term investments | 26 | 17 | 34 |  | 2 | 1 | 101 | 26 | 113 | 14 | 4 | 16 |
|  Add: Fair value loss (gain) of long-term investments and exchangeable bonds | 531 | 2 | 531 | (1889) | (2) | (1890) | (3317) | 18 | (3309) | (462) | 3 | (462) |
|  Add: Reconciling items on equity method investments<sup>(2)</sup> | 83 |  | 83 | (66) | 5 | (64) | (121) |  | (121) | (17) |  | (17) |
|  Add: Tax effects on non-GAAP adjustments<sup>(3)</sup> | (176) |  | (176) | 38 |  | 38 | (51) |  | (51) | (7) |  | (7) |
|  **Net income attributable to Baidu (non-GAAP)** | **7290** | **247** | **7396** | **6330** | **304** | **6469** | **4792** | **15** | **4795** | **669** | **2** | **669** |
|  **Diluted earnings per ADS** |  |  | **15.01** |  |  | **21.59** |  |  | **20.35** |  |  | **2.84** |
|  Add: Accretion of the redeemable noncontrolling interests |  |  | 0.57 |  |  | 0.57 |  |  | 0.64 |  |  | 0.09 |
|  Add: Non-GAAP adjustments to earnings per ADS |  |  | 5.44 |  |  | (3.62) |  |  | (7.41) |  |  | (1.03) |
|  **Diluted earnings per ADS (non-GAAP)** |  |  | **21.02** |  |  | **18.54** |  |  | **13.58** |  |  | **1.90** |

---

(1) This represents amortization and impairment of intangible assets resulting from business combinations.

(2) This represents Baidu's share of equity method investments for other non-GAAP reconciling items, amortization and impairment of intangible assets not on the investee's books, accretion of their redeemable noncontrolling interests, and the gain or loss associated with the
issuance of shares by the investees at a price higher or lower than the carrying value per share.

(3) This represents tax impact of all non-GAAP adjustments.

## Exhibit 99.2

**Exhibit 99.2** 

**Reconciliation between U.S. GAAP and International Financial Reporting Standards** 

Ernst & Young was engaged by the Company to conduct limited assurance engagement in accordance with International Standards on Assurance Engagements 3000 (Revised), *Assurance Engagements Other Than Audits or Reviews of Historical Financial Information*("ISAE 3000 (Revised)") issued by the International Auditing and Assurance Standards Board (IAASB) on the 'Reconciliation between U.S. GAAP and IFRS Accounting Standards (the "IFRSs") as set out on pages [ ] to [ ] of the 2025 Second Quarter Results (together, the "GAAP Difference Reconciliation").

Ernst & Young's engagement did not involve independent examination of any of the underlying financial information. The work carried out in accordance with ISAE 3000 (Revised) is different in scope from an audit or a review conducted in accordance with International Standards on Auditing or International Standards on Review Engagements issued by the IAASB and consequently, Ernst & Young did not express an audit opinion nor a review conclusion on the GAAP Difference Reconciliation. Ernst & Young's engagement was intended solely for the use of the Directors in connection with the above purpose for this 2025 Second Quarter Results and may not be suitable for another purpose.

The procedures performed by Ernst & Young were based on their professional judgment, having regard to their understanding of the management's process on preparing the GAAP Difference Reconciliation, nature, business performance and financial information of the Company and its subsidiaries ("the Group"). Given the circumstances of the engagement, the procedures performed included:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Comparing the relevant financial information in the columns "Amounts as reported under U.S. GAAP"
as disclosed in the GAAP Difference Reconciliation with the respective line items in the Group's unaudited interim condensed consolidated statement of income for the six months ended June 30, 2025 and the unaudited condensed consolidated
balance sheet as at June 30, 2025 (the "Interim Financial Statements") prepared in accordance with the accounting principles generally accepted in the United States of America (the "U.S. GAAP"), as appropriate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Evaluating the assessment made by the board of directors in identifying the differences between the accounting
treatments according to the Company's accounting policies in accordance with the U.S. GAAP and IFRSs, and the evidence supporting the IFRS adjustments made in the GAAP Difference Reconciliation in arriving at the "Amounts under
IFRSs" as disclosed in the GAAP Difference Reconciliation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Checking the arithmetic accuracy of the computation of the Group's financial information in the columns
"Amounts under IFRSs" as disclosed in the GAAP Difference Reconciliation.

The procedures performed by Ernst & Young in this limited assurance engagement vary in nature and timing from, and are less in extent than for a reasonable assurance engagement. Consequently, the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained had a reasonable assurance engagement been performed. Accordingly, Ernst & Young do not express a reasonable assurance opinion.

------

Based on the procedures performed and evidence obtained, Ernst & Young has concluded that nothing has come to their attention that causes them to believe:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the amounts in the columns "Amounts as reported under U.S. GAAP" as disclosed in the GAAP
Difference Reconciliation for the six months ended June 30, 2025 are not, in agreement with the respective line items in the Interim Financial Statements prepared in accordance with the U.S. GAAP;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the IFRSs adjustments as disclosed in the GAAP Difference Reconciliation, do not reflect, in all material
respects, the different accounting treatments according to the Group's accounting policies in accordance with the U.S. GAAP and the IFRSs of the relevant period; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the computation of the amounts in the columns "Amounts under IFRSs" as disclosed in the GAAP
Difference Reconciliation are not arithmetically accurate.

------

**Reconciliation of Condensed Consolidated Statements of Income (Extract)** 

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | **For the six months ended June 30, 2024** | **For the six months ended June 30, 2024** | **For the six months ended June 30, 2024** | **For the six months ended June 30, 2024** | **For the six months ended June 30, 2024** | **For the six months ended June 30, 2024** | **For the six months ended June 30, 2024** | |
|  | | **IFRS adjustments** | **IFRS adjustments** | **IFRS adjustments** | **IFRS adjustments** | **IFRS adjustments** | **IFRS adjustments** | **IFRS adjustments** | |
|  |<br>**Amounts as**<br>**reported**<br>**under U.S.**<br>**GAAP** | **Investments<br>in debt<br>investments** | **Investments<br>measured<br>at fair value** | **Equity<br>method<br>investments** | **Operating<br>leases** | **Redeemable<br>preferred<br>shares** | **Share-based<br>compensation** | **Convertible<br>senior<br>notes** |<br>**Amounts<br>under<br>IFRSs** |
|  | | ***(Note (i))*** | ***(Note (ii))*** | ***(Note (iii))*** | ***(Note (iv))*** | ***(Note (v))*** | ***(Note (vi))*** | ***(Note (vii))*** | |
|  | ***(RMB in millions)*** | ***(RMB in millions)*** | ***(RMB in millions)*** | ***(RMB in millions)*** | ***(RMB in millions)*** | ***(RMB in millions)*** | ***(RMB in millions)*** | ***(RMB in millions)*** | |
|  Cost of revenues | 31689 |  |  |  | (139) |  | (24) |  | 31526 |
|  Selling, general and administrative | 11075 |  |  |  | (5) |  | (92) |  | 10978 |
|  Research and development | 11252 |  |  |  | (44) |  | (202) |  | 11006 |
|  Other income (loss): |  |  |  |  |  |  |  |  |  |
|  - Interest income | 4084 | (1245) |  |  |  |  |  |  | 2839 |
|  - Interest expense | (1508) |  |  |  | (158) |  |  | 461 | (1205) |
|  - Others<sup>(1)</sup> | (1053) | 1110 | (286) | 3087 |  | 475 |  | 217 | 3550 |
|  **Income before income taxes** | 13445 | (135) | (286) | 3087 | 30 | 475 | 318 | 678 | 17612 |
|  Income taxes | 2014 | (11) | (102) | (5) | 8 | (45) |  |  | 1859 |
|  **Net income** | 11431 | (124) | (184) | 3092 | 22 | 520 | 318 | 678 | 15753 |
|  Less: net income (loss) attributable to noncontrolling interests | 495 |  | (94) |  | (2) | 1 | 16 | 371 | 787 |
|  **Net income attributable to Baidu, Inc.** | 10936 | (124) | (90) | 3092 | 24 | 519 | 302 | 307 | 14966 |

---

------

**Reconciliation of Condensed Consolidated Statements of Income (Extract)** 

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | **For the six months ended June 30, 2025** | **For the six months ended June 30, 2025** | **For the six months ended June 30, 2025** | **For the six months ended June 30, 2025** | **For the six months ended June 30, 2025** | **For the six months ended June 30, 2025** | **For the six months ended June 30, 2025** | |
|  | | **IFRS adjustments** | **IFRS adjustments** | **IFRS adjustments** | **IFRS adjustments** | **IFRS adjustments** | **IFRS adjustments** | **IFRS adjustments** | |
|  |<br>**Amounts as**<br>**reported**<br>**under U.S.**<br>**GAAP** | **Investments<br>in debt<br>investments** | **Investments<br>measured<br>at fair value** | **Equity<br>method<br>investments** | **Operating<br>leases** | **Redeemable<br>preferred<br>shares** | **Share-based<br>compensation** | **Convertible<br>senior notes** |<br>**Amounts<br>under<br>IFRSs** |
|  | | ***(Note (i))*** | ***(Note (ii))*** | ***(Note (iii))*** | ***(Note (iv))*** | ***(Note (v))*** | ***(Note (vi))*** | ***(Note (vii))*** | |
|  | ***(RMB in millions)*** | ***(RMB in millions)*** | ***(RMB in millions)*** | ***(RMB in millions)*** | ***(RMB in millions)*** | ***(RMB in millions)*** | ***(RMB in millions)*** | ***(RMB in millions)*** | ***(RMB in millions)*** |
|  Cost of revenues | 35844 |  |  |  | (73) |  | (19) |  | 35752 |
|  Selling, general and administrative | 11873 |  |  |  | (6) |  | (52) |  | 11815 |
|  Research and development | 9663 |  |  |  | (16) |  | (109) |  | 9538 |
|  Other income (loss): |  |  |  |  |  |  |  |  |  |
|  - Interest income | 4621 | (1386) |  |  |  |  |  |  | 3235 |
|  - Interest expense | (1502) |  |  |  | (149) |  |  | 362 | (1289) |
|  - Others<sup>(1)</sup> | 7062 | 1591 | (106) | 37 |  | 186 |  | (347) | 8423 |
|  **Income before income taxes** | 17135 | 205 | (106) | 37 | (54) | 186 | 180 | 15 | 17598 |
|  Income taxes | 2058 | 17 | (9) | (5) | (8) | (7) |  |  | 2046 |
|  **Net income** | 15077 | 188 | (97) | 42 | (46) | 193 | 180 | 15 | 15552 |
|  Less: net income attributable to noncontrolling interests | 38 |  | (47) |  | (1) |  | 25 | 8 | 23 |
|  **Net income attributable to Baidu, Inc.** | 15039 | 188 | (50) | 42 | (45) | 193 | 155 | 7 | 15529 |

---

(1) "Others" represents net of "Others, net" and "Share of losses from equity method
investments" as reported under U.S. GAAP.

------

**Reconciliation of Consolidated Balance Sheets (Extract)** 

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | |
|  | | **IFRS adjustments** | **IFRS adjustments** | **IFRS adjustments** | **IFRS adjustments** | **IFRS adjustments** | **IFRS adjustments** | **IFRS adjustments** | |
|  |<br>**Amounts as**<br>**reported**<br>**under U.S.**<br>**GAAP** | **Investments<br>in debt<br>investments** | **Investments<br>measured<br>at fair value** | **Equity<br>method<br>investments** | **Operating<br>leases** | **Redeemable<br>preferred<br>shares** | **Share-Based<br>compensation** | **Convertible<br>senior<br>notes** |<br>**Amounts<br>under<br>IFRSs** |
|  | | ***(Note (i))*** | ***(Note (ii))*** | ***(Note (iii))*** | ***(Note (iv))*** | ***(Note (v))*** | ***(Note (vi))*** | ***(Note (vii))*** | |
|  | ***(RMB in millions)*** | ***(RMB in millions)*** | ***(RMB in millions)*** | ***(RMB in millions)*** | ***(RMB in millions)*** | ***(RMB in millions)*** | ***(RMB in millions)*** | ***(RMB in millions)*** | ***(RMB in millions)*** |
|  Short-term investments, net | 102608 | 105 |  |  |  |  |  |  | 102713 |
|  Long-term investments, net | 41721 |  | 653 | (1021) |  |  |  |  | 41353 |
|  Long-term time deposits and held-to-maturity investments | 98535 | 86 |  |  |  |  |  |  | 98621 |
|  Operating lease right-of-use assets | 10898 |  |  |  | (136) |  |  |  | 10762 |
|  Deferred tax assets, net | 2193 |  |  |  | 10 |  | 17 |  | 2220 |
|  **Total assets** | 427780 | 191 | 653 | (1021) | (126) |  | 17 |  | 427494 |
|  Convertible senior notes | 8593 |  |  |  |  |  |  | (682) | 7911 |
|  Redeemable preferred shares |  |  |  |  |  | 7752 |  |  | 7752 |
|  Deferred tax liabilities | 3870 | 28 | 29 | (16) |  | (23) |  |  | 3888 |
|  **Total liabilities** | 144168 | 28 | 29 | (16) |  | 7729 |  | (682) | 151256 |
|  **Redeemable noncontrolling interests** | 9870 |  |  |  |  | (9870) |  |  |  |
|  **Total Baidu, Inc. shareholders' equity** | 263620 | 163 | 405 | (1005) | (92) | 1955 | 17 | 308 | 265371 |
|  **Noncontrolling interests** | 10122 |  | 219 |  | (34) | 186 |  | 374 | 10867 |
|  **Total equity** | 273742 | 163 | 624 | (1005) | (126) | 2141 | 17 | 682 | 276238 |

---

------

**Reconciliation of Consolidated Balance Sheets (Extract)** 

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** | |
|  | | **IFRS adjustments** | **IFRS adjustments** | **IFRS adjustments** | **IFRS adjustments** | **IFRS adjustments** | **IFRS adjustments** | **IFRS adjustments** | |
|  |<br>**Amounts as**<br>**reported**<br>**under U.S.**<br>**GAAP** | **Investments<br>in debt<br>investments** | **Investments<br>measured<br>at fair value** | **Equity<br>method<br>investments** | **Operating<br>leases** | **Redeemable<br>preferred<br>shares** | **Share-Based<br>compensation** | **Convertible<br>senior notes** |<br>**Amounts<br>under<br>IFRSs** |
|  | | ***(Note (i))*** | ***(Note (ii))*** | ***(Note (iii))*** | ***(Note (iv))*** | ***(Note (v))*** | ***(Note (vi))*** | ***(Note (vii))*** | |
|  | ***(RMB in millions)*** | ***(RMB in millions)*** | ***(RMB in millions)*** | ***(RMB in millions)*** | ***(RMB in millions)*** | ***(RMB in millions)*** | ***(RMB in millions)*** | ***(RMB in millions)*** | ***(RMB in millions)*** |
|  Short-term investments, net | 93926 | 300 |  |  |  |  |  |  | 94226 |
|  Long-term investments, net | 45103 |  | 540 | (1033) |  |  |  |  | 44610 |
|  Long-term time deposits and held-to-maturity investments | 110123 | 96 |  |  |  |  |  |  | 110219 |
|  Operating lease right-of-use assets | 10682 |  |  |  | (192) |  |  |  | 10490 |
|  Deferred tax assets, net | 2352 |  |  |  | 19 |  | 17 |  | 2388 |
|  **Total assets** | 450569 | 396 | 540 | (1033) | (173) |  | 17 |  | 450316 |
|  Convertible senior notes | 8223 |  |  |  |  |  |  | (681) | 7542 |
|  Redeemable preferred shares |  |  |  |  |  | 9701 |  |  | 9701 |
|  Deferred tax liabilities | 4196 | 45 | 18 | (21) |  | (4) |  |  | 4234 |
|  **Total liabilities** | 152657 | 45 | 18 | (21) |  | 9697 |  | (681) | 161715 |
|  **Redeemable noncontrolling interests** | 12652 |  |  |  |  | (12652) |  |  |  |
|  **Total Baidu, Inc. shareholders' equity** | 275057 | 351 | 318 | (1012) | (137) | 2768 | 17 | 307 | 277669 |
|  **Noncontrolling interests** | 10203 |  | 204 |  | (36) | 187 |  | 374 | 10932 |
|  **Total equity** | 285260 | 351 | 522 | (1012) | (173) | 2955 | 17 | 681 | 288601 |

---

------

Notes:

***(i) Investments in debt investments***

Under U.S. GAAP, the classification and measurement of debt investments are based on the entity's investment intent. Debt investments that the Group has the positive intent and ability to hold to maturity are classified as held-to-maturity (HTM) investments and stated at amortized cost less allowance for credit losses. Debt investments that are bought and held principally for the purpose of selling them in the near term are classified as trading investments and measured at fair value through profit or loss. Debt investments that are not classified as trading or as HTM are classified as available-for-sale (AFS) investments and measured at fair value with unrealized gains and losses recorded in other comprehensive income (loss).

Under IFRSs, the classification and measurement of debt instruments, depends on the instrument's contractual cash flow (CCF) characteristics and the business model under which they are managed. The assessment of the CCF determines whether the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Debt investments are measured at amortized cost if they pass the CCF characteristics test and are held with the objective of collecting CCF. Debt investments are measured at fair value through other comprehensive income (loss) if they pass the CCF characteristics test and are held with the objective of both collecting CCF and selling financial assets. Debt investments that are not measured at amortized cost or fair value through other comprehensive income (loss) is measured at fair value through profit or loss. Therefore, adjustments were made to the debt investments that should be classified as fair value through profit or loss because they did not meet CCF under IFRSs.

***(ii) Investments measured at fair value***

Under U.S. GAAP, for equity investments without readily determinable fair value and do not qualify for the net asset value per share practical expedient, the Group elects to use the measurement alternative to measure these investments at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer, if any.

Available-for-sale debt investments are convertible debt instruments and investments in preferred shares that are currently redeemable at the Group's option. Under U.S. GAAP, these available-for-sale debt investments are measured at fair value. Interest income is recognized in earnings. All other changes in the carrying amount of these debt investments are recognized in other comprehensive income (loss).

Under IFRSs, these investments were classified as financial assets at fair value through profit or loss and measured at fair value with changes in fair value recognized through profit or loss.

***(iii) Equity method investments***

The Group as the investor recorded its share of earnings or losses from its equity method investees in accordance with U.S. GAAP. Under IFRSs, the accounting policies of the equity method investees must be the same as those of the investor. Therefore, adjustments were made to the Group's share of earnings or losses of the investees, from U.S. GAAP to IFRSs, for the IFRS reconciliation.

***(iv) Operating leases***

Under U.S. GAAP, at lease commencement date, the Group classifies a lease as a finance lease or an operating lease. For operating leases, the lease liability is based on the present value of the remaining lease payments using the discount rate determined at lease commencement date, while the right-of-use asset is remeasured at the amount of the lease liability, adjusted for the remaining balance of any lease incentives received cumulative prepaid or accrued rents, unamortized initial direct costs and any impairment. This treatment under U.S. GAAP generally results in expenses being incurred on a straight- line basis over the lease term.

Under IFRSs, all leases are accounted for similar to finance leases under U.S. GAAP where right-of-use assets are generally depreciated on a straight-line basis while lease liabilities are measured under the effective interest method, which results in higher expenses at the beginning of the lease term and lower expenses towards the end of the lease term.

***(v) Redeemable preferred shares***

Under U.S. GAAP, the Group classified the redeemable preferred shares in redeemable noncontrolling interests (mezzanine-equity), in the consolidated balance sheets, initially recorded at fair value, net of issuance costs. The Group elects to use the effective interest method to account for the changes of redemption value over the period from the date of issuance to the earliest redemption date of the preferred shares.

Under IFRSs, these investments were classified as financial liabilities at fair value through profit or loss and measured at fair value with changes in fair value recognized through profit or loss. The amounts of changes in fair value of the redeemable preferred shares that were attributed to changes in credit risk of the redeemable preferred shares were recognized in other comprehensive income (loss).

------

***(vi) Share-based compensation***

Under U.S. GAAP, the Group elects to recognize share-based compensation using the straight-line method for all share-based awards issued with no performance obligations. Under U.S. GAAP, the Group elects to determine the total fair value of the share options by estimating the value of the option subject to graded vesting as a single award using an average expected life.

Under IFRSs, the accelerated method is required to recognize compensation expense for all employee equity awards granted with graded vesting. Under IFRSs, the total fair value of the share options is required to be determined by estimating the value of each vesting tranche separately using a separate expected life.

***(vii) Convertible senior notes***

Under U.S. GAAP, the convertible debts are measured at amortized cost, with any difference between the initial carrying value and the repayment amount recognized as interest expenses using the effective interest method over the period from the issuance date to the maturity date.

Under IFRSs, the convertible debts were designated as at fair value through profit or loss. The convertible debts were initially recognized at their fair value. Subsequent to initial recognition, changes in fair value of the convertible debts were generally recognized in the profit or loss, except for the portion of change in fair value attributable to changes in credit risk of the convertible debts, which is recognized in other comprehensive income (loss).

Under U.S. GAAP, the classification of the convertible debts as current or non-current is not affected by the holder's option to convert the convertible debts into an equity instrument. Under the amendments to IAS 1 in 2024, the convertible debts are classified as current if the holder has an option to convert the host liability into the Group's own equity instruments at any time before maturity, as the Group does not have the right to defer settlement for at least twelve months from the reporting date. The Group applied the amendments retrospectively as required by the amendments to IAS 1.