Xin Lang Cai Jing·2025-08-21 11:20Core Insights - Baidu reported a total revenue of RMB 32.7 billion (USD 4.57 billion) for Q2 2025, a year-on-year decrease of 4% [3][4] - Baidu's core revenue was RMB 26.3 billion (USD 3.66 billion), down 2% year-on-year [3][4] - The net profit attributable to Baidu was RMB 7.3 billion (USD 1.02 billion), with a core net profit of RMB 7.4 billion (USD 1.03 billion), reflecting a 35% increase year-on-year [3][8] Revenue Breakdown - Online marketing services revenue fell to RMB 16.2 billion (USD 2.27 billion), a 15% decline year-on-year, indicating increased market competition [4][5] - Non-online marketing revenue reached RMB 10 billion (USD 1.4 billion), growing 34% year-on-year, driven by strong performance in AI and smart cloud services [5][6] Cost and Expenses - Total sales costs increased to RMB 18.4 billion (USD 2.56 billion), a 12% rise year-on-year, primarily due to costs associated with smart cloud services [6][7] - Research and development expenses decreased to RMB 5.1 billion (USD 715 million), down 13% year-on-year, suggesting a potential reallocation of resources [6][7] Profitability Metrics - Operating profit was RMB 3.3 billion (USD 457 million), with a core operating profit margin of 13% [7][8] - Other income totaled RMB 4.9 billion (USD 678 million), a significant increase of 531% year-on-year, mainly due to fair value gains and increased long-term investment profits [7][8] Cash Flow and Financial Position - As of June 30, 2025, Baidu had cash and cash equivalents totaling RMB 124.2 billion (USD 17.34 billion), indicating a strong liquidity position [8][9] - Free cash flow was negative RMB 4.7 billion (negative USD 653 million), primarily due to increased investments in AI, reflecting the company's commitment to future growth [9]