Group 1 - The article discusses the response of Mixue Ice City to a viral incident where a blogger resold their lemonade at a markup, indicating that the company is investigating whether the seller was an employee or an independent vendor [4] - Elon Musk reaffirmed his commitment to remain as CEO of Tesla for the next five years unless he passes away, emphasizing his focus on maintaining control over the company [4] - The film "Nezha" has extended its release until June 30, with a total box office of 15.405 billion yuan [5] Group 2 - Alibaba's entertainment division has rebranded as "Whale Entertainment," aiming to enhance its content and technology-driven strategy [5] - The Chinese government has approved 130 domestic and 14 imported online games in May, indicating a supportive regulatory environment for the gaming industry [8] - The U.S. retail giant Walmart plans to lay off approximately 1,500 employees as part of a restructuring plan to reduce costs [14] Group 3 - Nvidia's CEO predicts that the Chinese AI market will reach a scale of $50 billion by 2026, highlighting the growth potential in this sector [18] - Google announced that its Gemini AI application has surpassed 400 million monthly active users, showcasing its rapid adoption [19] - Weibo reported a total revenue of 2.883 billion yuan for Q1 2025, exceeding Wall Street expectations [20] Group 4 - Baidu's Q1 2025 revenue reached 32.5 billion yuan, with a 42% year-on-year growth in its intelligent cloud segment [21] - iQIYI's Q1 2025 revenue was 7.19 billion yuan, reflecting a 9% quarter-on-quarter increase [22] - Amer Sports reported a Q1 revenue of $1.473 billion, a 23% year-on-year increase, with significant growth in the Greater China region [23]

Group 1 - The 21st China (Shenzhen) International Cultural Industries Fair will be held from May 22 to 26, with a significant "policy package" to support six key areas for high-quality cultural industry development [2] - The European Union plans to impose handling fees on small packages entering the EU, with China's Ministry of Foreign Affairs advocating for a fair and transparent business environment for Chinese enterprises [2] - China and the ten ASEAN countries have completed negotiations for the China-ASEAN Free Trade Area 3.0, adding nine new chapters including digital economy and green economy [2] Group 2 - International gold prices rebounded on May 21, with domestic gold jewelry prices surpassing 1,000 yuan per gram, with notable increases from major retailers [3] - Several banks, including Ping An Bank and CITIC Bank, have lowered deposit rates, particularly for medium- and long-term deposits, with some banks suspending five-year term deposits [3] - A surge in A-share buyback and increase plans has been observed, with 394 companies announcing such plans since the second quarter of 2025, a rise of over 60% compared to the first quarter [3] Group 3 - The Hong Kong Hang Seng Index closed up 0.62%, with BYD shares rising over 4% to a new historical high, and southbound funds net buying exceeding 1.4 billion HKD [4] - UBS noted a growing international interest in Chinese assets, highlighting the strategic importance of the Chinese stock market for global investors seeking excess returns [4] Group 4 - Baidu reported Q1 revenue of 32.452 billion yuan, a 3% year-on-year increase, with a notable 42% growth in Baidu Smart Cloud [5] - Xpeng Motors achieved Q1 revenue of 15.81 billion yuan, a 141.5% year-on-year increase, with a projected delivery volume of 102,000 to 108,000 units in Q2 [5] - Weibo's Q1 revenue remained stable at 396.9 million USD, with a 12% year-on-year increase in adjusted net profit [5] Group 5 - The stock price for Naxin Microelectronics was set at 163.15 yuan per share, with a subscription rate of 1.29 times from institutional investors [6] - The U.S. stock market saw declines across major indices, with significant drops in Chinese concept stocks such as iQIYI and Baidu [6]

Market Overview - The new US budget proposal raises concerns among traders about the deficit, leading to a significant drop in US stocks, bonds, and the dollar, with the Dow Jones falling nearly 2% [2][4] - Bitcoin surged to a historic high, approaching $110,000, while gold rose over 1% [2][10] - The US 10-year Treasury yield increased by over 10 basis points, reaching 4.5985% [5][11] Key Events - The 20-year US Treasury auction was disappointing, with the bid rate exceeding 5%, marking one of the worst performances since its introduction five years ago [8][10] - The EU criticized the US's negotiation proposals as unrealistic and introduced a new plan to eliminate tariffs on certain products and invest jointly in AI [4][9] - Bitcoin's price fluctuated significantly, influenced by the poor auction results, dropping over $3,000 from its peak [10] Company Highlights - Baidu reported a Q1 net profit increase of 42% year-on-year, with intelligent cloud revenue also growing by 42% [11][21] - OpenAI made its largest acquisition, purchasing an AI hardware startup for $6.5 billion, which will enhance its hardware capabilities [12] - Target's Q1 sales fell by 2.8%, prompting the company to lower its annual forecast [19] Industry Insights - The semiconductor industry is seeing significant collaboration, with Nanwei Semiconductor partnering with Nvidia to develop next-generation high-voltage DC architecture [19] - The robotics sector is evolving, with a focus on humanoid robots and their application in various industries, including textiles and logistics [20] - The pharmaceutical industry is witnessing a notable deal, with a Chinese biotech firm licensing its innovative drug to Pfizer for substantial upfront and milestone payments [20]

Financial Performance - Baidu's total revenues for Q1 2025 were RMB 32.5 billion ($4.47 billion), representing a 3% increase year over year[10]. - Baidu Core revenue grew 7% year over year to RMB 25.5 billion ($3.51 billion), with online marketing revenue decreasing 6% year over year[6][12]. - AI Cloud revenue surged 42% year over year, contributing significantly to overall revenue growth[3]. - Net income attributable to Baidu increased by 42% year over year to RMB 7.7 billion ($1.06 billion), with diluted earnings per ADS rising 45% to $2.98[4][16]. - Baidu's total revenues for the three months ended March 31, 2025, were RMB 32,452 million (approximately US$4,472 million), a decrease of 2% from RMB 34,124 million in the previous quarter[32]. - Non-GAAP net income attributable to Baidu for the same period was RMB 7,717 million (approximately US$1,063 million), representing an increase of 48% compared to RMB 5,192 million in the previous quarter[32]. - The company's operating income for the three months ended March 31, 2025, was RMB 4,508 million (approximately US$621 million), up from RMB 3,917 million in the previous quarter[32]. - Operating income for Baidu in Q1 2025 was RMB 4,164 million, reflecting an 18% year-over-year decrease[34]. - Net income attributable to Baidu in Q1 2025 was RMB 7,633 million, a 42% year-over-year increase[34]. - Baidu's operating margin for Q1 2025 was 16%, compared to 19% in the previous year[34]. - The diluted earnings per ADS (non-GAAP) for Q1 2025 was $2.55, compared to $2.98 in Q4 2024, indicating a decrease of 14.4%[36]. Cash and Investments - Baidu's cash, cash equivalents, and short-term investments totaled RMB 142.0 billion ($19.57 billion) as of March 31, 2025[18]. - Baidu's cash and cash equivalents increased significantly to RMB 49,202 million (approximately US$6,780 million) as of March 31, 2025, compared to RMB 24,832 million at the end of the previous quarter[33]. - Baidu's cash, cash equivalents, and restricted cash at the end of Q1 2025 amounted to RMB 49,876 million[35]. - The company reported a net cash provided by operating activities of RMB 5,284 million in Q1 2025[35]. Expenses and Liabilities - Research and development expenses decreased by 15% year over year to RMB 4.5 billion ($626 million)[11]. - The company reported total costs and expenses of RMB 27,944 million (approximately US$3,851 million) for the three months ended March 31, 2025, a decrease from RMB 30,207 million in the previous quarter[32]. - Baidu's total costs and expenses in Q1 2025 were RMB 21,299 million, an increase of 11% year-over-year[34]. - The company’s total liabilities increased to RMB 163,908 million (approximately US$22,587 million) as of March 31, 2025, from RMB 144,168 million at the end of the previous quarter[33]. Shareholder Returns - Baidu returned $445 million to shareholders since the beginning of Q1 2025, with cumulative repurchases reaching $2.1 billion[8]. User Engagement and Product Development - Apollo Go provided over 1.4 million rides in Q1 2025, marking a 75% increase year over year, and cumulative rides surpassed 11 million[12]. - Baidu App's monthly active users (MAUs) reached 724 million, up 7% year over year[12]. - Baidu launched ERNIE 4.5 and ERNIE X1 in March 2025, enhancing its AI product offerings[8]. iQIYI Performance - iQIYI's operating income for Q1 2025 was RMB 342 million, a rise from RMB 285 million in Q4 2024, reflecting a growth of 19.9%[36]. - Baidu's adjusted EBITDA for iQIYI in Q1 2025 was RMB 495 million, up from RMB 444 million in Q4 2024, representing an increase of 11.5%[36]. - The net income attributable to Baidu (non-GAAP) for Q1 2025 was RMB 6,330 million, a decrease from RMB 6,741 million in Q4 2024, showing a decline of 6.1%[36]. Other Financial Metrics - Free cash flow for Baidu in Q1 2025 was negative RMB 8,901 million, a significant decline from the previous quarter[35]. - Baidu's adjusted EBITDA margin for Q1 2025 was 22%, compared to 26% in the previous year[34]. - Baidu's core operating income for Q1 2025 was RMB 4,164 million, a 14.5% increase from RMB 3,638 million in Q4 2024[36]. - The adjusted EBITDA for Baidu in Q1 2025 reached RMB 6,712 million, up from RMB 6,516 million in Q4 2024, reflecting a growth of 3.0%[36]. - Baidu's fair value loss of long-term investments in Q1 2025 was RMB (1,889) million, compared to RMB (288) million in Q4 2024, indicating a significant increase in losses[36].

Exhibit 99.1 Baidu Announces First Quarter 2025 Results "Baidu Core revenue grew 7% year over year in the first quarter, driven by the accelerating momentum of AI Cloud, which surged 42% year over year. The strong performance of our AI Cloud business underscores the growing market recognition of our distinctive strength in providing full-stack AI products and solutions with a highly competitive price-performance advantage. We also achieved a pivotal milestone in our robotaxi business, as Apollo Go expanded ...

Core Insights - U.S.-listed shares of Baidu Inc and Xpeng Inc are gaining attention after both companies exceeded revenue expectations for Q1, with Baidu benefiting from AI cloud services and Xpeng narrowing its quarterly losses [1] Baidu Inc (BIDU) - Baidu's shares were last seen down 0.8% at $88.61, despite a year-over-year increase of 10.1%, facing resistance at the $95 level since late March [2] - The stock has struggled to recover from a two-year low of $74.71 reached on April 9, with the $95 resistance level coinciding with its 320-day moving average [2] Xpeng Inc (XPEV) - Xpeng's shares rose 12.8% to $22.20, marking its best performance since February and trading at the highest level since March, supported by its 80-day moving average [3] - Over the past 12 months, Xpeng's stock has increased by 156%, and it is up 89.6% in 2025 [3] Options Trading Activity - Both Baidu and Xpeng are experiencing significant options trading activity, with volumes reaching eight times the intraday average [4] - The most active options for Baidu are the weekly 5/30 100-strike calls, while for Xpeng, it is the weekly 5/23 22-strike calls, with new positions being opened for both [4]

导语 ： 百度Q1亮出底牌：AI业务熬出头了。 百度（ BIDU.US&09888.HK ）在 AI 的长期投入，终于在 2025 年结出了硕果。 "春江水暖鸭先知"，投资市场的反应尤为敏锐。今年一季度，桥水、富达对百度的持仓较上季度增长近十倍，"木头 姐" Cathie Wood 更是在一个半月内六次加仓，将百度视为 AI 应用落地的核心标的。 5 月 21 日晚，百度发布 2025 年一季报，盘前涨超 2% 。财报显示，百度 Q1 总营收达 325 亿元，百度核心收入 255 亿元，同比增长 7% ，均超市场预期。一季度，百度核心净利润同比增长 48% 至 76.3 亿元，智能云持续强劲增长， 同比增速达 42% 。截至 5 月，萝卜快跑在全球累计提供超 1100 万次的出行服务。 过去一年，大模型热潮从"拼参数、卷硬件"走向"拼场景、卷回报"。资本开始冷静，寻找真正能跑通从技术、落地到 商业的闭环选手。 而百度，无疑是最具代表性的企业之一。智能云托底、自动驾驶冲锋，百度 AI 应用率先在国内落地。百度正在最有希 望"统治未来世界"的 AI 应用赛道上，杀出一条生路。 埋头"打地基"，智能云成 AI 变现 ...

Core Insights - Baidu is accelerating its AI transformation, significantly reshaping its business structure, with a focus on application-driven AI innovation to meet rising demand [1][2] - The company acknowledges that the transition to AI search will put significant pressure on short-term revenue and profit margins, but believes it is the right path for long-term growth [1][6] Group 1: Financial Performance - In Q1, Baidu reported total revenue of 32.45 billion yuan, exceeding expectations with a year-on-year growth of 3%, and a profit increase of 42% [2] - The intelligent cloud segment saw a revenue growth of 42%, accelerating from 26% in the previous quarter, driven by demand for generative AI and foundational models [4] Group 2: AI Model Strategy - Baidu emphasizes an application-driven AI model strategy, focusing on practical value rather than striving for overall leadership in every area [2] - The company has successfully integrated foundational models into its mobile ecosystem, enhancing its AI transformation efforts [2] Group 3: AI Cloud Business - Baidu's AI cloud business is experiencing significant growth, with enterprise cloud contributing the majority of revenue and subscription-based income becoming a sustainable revenue stream [4] - The operating profit margin for AI cloud has expanded to double-digit levels, indicating a healthy growth trajectory [4] Group 4: AI Search Transformation - The proportion of AI-generated content in mobile search results increased from 22% in January to approximately 35% in April, with expectations for continued growth [6] - Baidu anticipates that AI search will enhance monetization capabilities for long-tail queries and previously undeveloped areas [6] Group 5: Autonomous Driving Initiative - Baidu's autonomous driving service, "Luobo Kuaipao," has expanded to cover 15 cities globally, with ongoing tests in Dubai and Abu Dhabi [7][8] - The company sees a clear path to profitability as hardware and labor costs decrease, and operational scale increases [8] Group 6: Capital Allocation and Shareholder Returns - Baidu plans to increase AI investments significantly in 2024 and 2025, reinforcing its commitment to AI infrastructure and future growth [9][11] - The company has repurchased $445 million in stock, reflecting strong shareholder return commitments and confidence in long-term growth [10][11]

Financial Data and Key Metrics Changes - Baidu's total revenue for Q1 2025 was RMB32.5 billion, a 3% year-over-year increase [28] - Baidu Core's revenue reached RMB25.5 billion, reflecting a 7% year-over-year growth, while online marketing revenue decreased by 6% to RMB16.0 billion [28][29] - Non-GAAP operating income was RMB5.3 billion, with a non-GAAP operating margin of 19% for Baidu Core [32][34] - Net income attributable to Baidu was RMB7.7 billion, with diluted earnings per ADS at RMB21.59 [33][34] Business Line Data and Key Metrics Changes - AI Cloud revenue reached RMB6.7 billion, marking a 42% year-over-year increase and accounting for 26% of Baidu Core's revenue [29][21] - Non-online marketing revenue for Baidu Core was RMB9.4 billion, up 40% year-over-year, primarily driven by AI Cloud [29] - Revenue from iQIYI decreased by 9% year-over-year to RMB7.2 billion [29] Market Data and Key Metrics Changes - The MAU of Baidu App increased by 7% year-over-year, reaching 724 million [17] - Apollo Go provided approximately 1.4 million rides in Q1, representing a 75% year-over-year growth [26] Company Strategy and Development Direction - The company is focusing on enhancing its AI capabilities and expanding its AI Cloud business, which is seen as a core priority [7][21] - Baidu aims to democratize AI through initiatives like the launch of MiaoDa, which allows users to create applications without coding [22] - The company is also investing in autonomous driving technology, with plans for international expansion of its Apollo Go service [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing demand for AI solutions and the potential for AI Cloud to drive future growth [6][21] - The company is adapting to the evolving AI landscape and is committed to maintaining its competitive edge through continuous innovation [10][75] - Management acknowledged potential near-term pressures on revenue and margins due to the transition to AI search but emphasized the long-term growth potential [62][94] Other Important Information - Baidu's cash position as of March 31, 2025, was RMB159 billion, with a negative free cash flow of RMB9.2 billion due to increased investments in AI [34][35] - The company has accelerated its share repurchase program, purchasing a total of USD 445 million in shares since the beginning of Q1 2025 [35][94] Q&A Session Summary Question: Update on AI model and technology roadmap - Management highlighted the rapid iteration of foundation models and emphasized the importance of application-driven innovation [38][39] - Future models will continue to focus on areas with real application value, and costs are expected to decrease further [43][44] Question: Key drivers for cloud business growth - The strong growth in AI Cloud was attributed to surging demand for Gen AI and foundation models, with enterprise cloud revenue being the primary contributor [47][50] - Management expects subscription-based revenue to rise, supporting sustainable growth [51] Question: AI search transformation rationale - The transformation aims to enhance user experience and meet evolving information-seeking behaviors [55][58] - Management anticipates that AI search will improve monetization capabilities over time [61][62] Question: Competition in the robotaxi space - Baidu's Apollo Go is positioned as a leader in autonomous ride-hailing, with a focus on expanding globally and exploring partnerships [64][67] - The company expects to see faster growth in its global fleet and operational scale [68][69] Question: Competition with other AI applications - Baidu is focusing on enhancing AI search and integrating innovative applications to create lasting value [72][75] - The company is committed to making its platform more open and flexible to meet diverse user needs [78]

Financial Data and Key Metrics Changes - In Q1 2025, total revenues reached RMB32.5 billion, a 3% year-over-year increase [30] - Baidu Core's total revenue was RMB25.5 billion, reflecting a 7% year-over-year increase [30] - Baidu Core's online marketing revenue decreased by 6% year-over-year to RMB16.0 billion [30] - Non-online marketing revenue for Baidu Core was RMB9.4 billion, up 40% year-over-year, primarily driven by AI cloud business [31] - AI cloud revenue reached RMB6.7 billion, increasing by 42% year-over-year, accounting for 26% of Baidu Core's revenue [31] - Operating income was RMB4.5 billion, with a Baidu Core operating margin of 16% [33] - Net income attributable to Baidu was RMB7.7 billion, with a diluted earnings per ADS of RMB21.59 [34] Business Line Data and Key Metrics Changes - AI Cloud revenue growth accelerated to 42% year-over-year, driven by demand for GenAI and foundation models [49] - Revenue from iQIYI decreased by 9% year-over-year to RMB7.2 billion [31] - Revenue generated by agents advertisers increased 30-fold year-over-year, accounting for 9% of Baidu Core's online marketing revenue [26] Market Data and Key Metrics Changes - The MAU of Baidu App increased by 7% year-over-year, reaching RMB724 million [18] - Apollo Go provided approximately 1.4 million rides in Q1, representing a 75% year-over-year growth [28] Company Strategy and Development Direction - The company is focused on advancing AI capabilities and maintaining a leading position in the AI landscape [7] - Baidu plans to open source its advanced Earnie 4.5 series of models on June 30, reflecting its commitment to making AI more accessible [10] - The company is exploring asset-light business models for future growth, including partnerships for autonomous vehicle rental services [28] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of application-driven innovation in AI, focusing on areas with real application value [41] - The company expects to see continued growth in AI cloud services, driven by increasing demand across various sectors [51] - Management acknowledged potential near-term revenue and margin pressures due to the transition to AI search but views it as necessary for long-term growth [61] Other Important Information - The company has accelerated its share repurchase program, purchasing a total of USD 445 million in shares since the beginning of Q1 2025 [36] - Baidu Core had approximately 31,000 employees as of March 31, 2025 [35] Q&A Session Summary Question: Update on AI overall strategy and technology roadmap - Management highlighted the rapid iteration of foundation models and the importance of application-driven innovation, focusing on areas with real application value [40][42] Question: Key drivers for strong growth in cloud business - The growth was driven by surging demand for GenAI and foundation models, with enterprise cloud contributing the majority of AI cloud revenue [49][50] Question: Rationale behind AI search transformation - The transformation aims to enhance user experience and meet evolving user needs, with expectations for increased AI-generated content in search results [56][58] Question: Competitive landscape in robotaxi space - Apollo Go is positioned as a leader in autonomous ride-hailing services, with a focus on expanding globally and exploring new business models through partnerships [66][68] Question: Competition with other AI applications - The company is focused on enhancing AI search capabilities and integrating innovative approaches like agents to improve user experiences and create lasting value [72][75]