百度 (BIDU) 2018 Q3 法說會逐字稿

Hello, and thank you for standing by for Baidu's Third Quarter 2018 Earnings Conference Call. (Operator Instructions) Today's conference is being recorded. And if you have any objections, you may disconnect at this time.

您好，感謝您參加百度2018年第三季財報電話會議。（操作員指示）今天的會議正在錄製。如果您有任何異議，您可以立即斷開連接。

I would now like to turn this meeting over to your host for today's conference, Ms. Sharon Ng, Baidu's Director of Investor Relations. Thank you.

現在，我想將本次會議交給今天會議的主持人，百度投資者關係總監 Sharon Ng 女士。謝謝。

Hello, everyone, and welcome to Baidu's Third Quarter 2018 Earnings Conference Call. Baidu's earnings release was distributed earlier today, and you can find a copy on our website as well as on newswire services.

大家好，歡迎參加百度2018第三季業績電話會議。百度的財報已於今天早些時候發布，您可以在我們的網站和新聞通訊社上找到一份副本。

On the call today, we have Robin Li, Baidu's Chief Executive Officer; and Herman Yu, Baidu's Chief Financial Officer. After our prepared remarks, we will hold a Q&A session.

參加今天電話會議的有百度執行長李彥宏和百度財務長俞敏洪。在我們準備好發言之後，我們將舉行問答環節。

Please note that the discussion today will contain forward-looking statements made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from our current expectations. Potential risks and uncertainties include, but are not limited to, those outlined in our public filings with the SEC, including our annual report on Form 20-F. Baidu does not undertake any obligation to update any forward-looking statements except as required under applicable law.

請注意，今天的討論將包含根據 1995 年美國私人證券訴訟改革法案的安全港條款做出的前瞻性陳述。前瞻性陳述受風險和不確定性的影響，可能導致實際結果與我們目前的預期有重大差異。潛在風險和不確定性包括但不限於我們向美國證券交易委員會提交的公開文件中概述的風險和不確定性，包括我們的 20-F 表年度報告。除適用法律要求外，百度不承擔更新任何前瞻性聲明的義務。

Our earnings press release and this call include discussions of certain unaudited non-GAAP financial measures. Our press release contains a reconciliation of the unaudited non-GAAP measures to the unaudited most directly comparable GAAP measures and is available on our IR website at ir.baidu.com.

我們的收益新聞稿和本次電話會議包括對某些未經審計的非公認會計準則財務指標的討論。我們的新聞稿包含未經審計的非 GAAP 指標與未經審計的最直接可比較 GAAP 指標的對賬，可在我們的 IR 網站 ir.baidu.com 上查閱。

As a reminder, this conference is being recorded. In addition, a webcast of this conference will also be available on the Baidu IR website.

提醒一下，本次會議正在錄製中。此外，本次大會的網路直播也將在百度投資者關係網站上進行。

I will now turn the call over to our CEO, Robin.

現在我將電話轉給我們的執行長羅賓。

Hello, everybody, and thank you for joining our call today. We delivered solid revenue growth in the third quarter driven by AI-powered search, continued robust growth from Baidu feed as well as strong and increasingly significant growth from new AI businesses such as ABC Cloud.

大家好，感謝您今天參加我們的電話會議。在人工智慧搜尋、百度資訊流持續強勁成長以及 ABC 雲端等新人工智慧業務強勁且日益顯著的成長的推動下，我們在第三季度實現了穩健的收入成長。

Baidu has made incredible progress on strengthening our mobile foundation over the past 2 years with our efforts to improve the user experience for Baidu's family of apps with AI, such as search, maps, mobile keyboard and launching feed with AI-powered algorithms.

過去兩年來，百度在加強行動基礎方面取得了令人難以置信的進步，我們努力透過人工智慧改善百度系列應用程式的用戶體驗，例如搜尋、地圖、手機鍵盤和使用人工智慧演算法啟動資訊流。

QuestMobile, a third-party research firm, recently cited Baidu's family of apps together generates 980 million monthly active users, putting Baidu in the top 3 of MAUs in China, in its Autumn Report on Mobile Internet. Our own internal data actually indicates that the MAUs of the Baidu family of apps reached 990 million in September and growing 28% year-over-year, excluding overlaps, as many users have multiple touch points with us.

第三方研究公司QuestMobile最近在《秋季行動互聯網報告》中指出，百度旗下所有應用程式的月活躍用戶總數達9.8億，位列中國月活躍用戶前三名。我們自己的內部數據實際上表明，9 月份百度系列應用程式的每月活躍用戶數達到 9.9 億，同比增長 28%（不包括重疊部分），因為許多用戶與我們有多個接觸點。

With massive reach on mobile in hand, we are well positioned for the shift in Internet usage in China. App developers are placing greater reliance on super apps to direct user traffic and provide native-app integration, bypassing the need for new users to download their apps. Internet connectivity on home devices is seeing accelerated growth this year, and the auto industry is beginning to experiment with connected Internet via voice assistants. These trends play to Baidu's strengths and put us in a sweet spot for new Internet gateways.

憑藉在行動裝置上的巨大覆蓋範圍，我們已為中國互聯網使用方式的轉變做好了充分準備。應用程式開發人員越來越依賴超級應用程式來引導用戶流量並提供原生應用程式集成，從而無需新用戶下載他們的應用程式。今年，家用設備的網路連線正在加速成長，汽車產業也開始嘗試透過語音助理連接網路。這些趨勢充分發揮了百度的優勢，並使我們處於新的網路入口網站的最佳位置。

Our use of AI to strengthen Baidu's core business is also generating new use cases and opening Baidu up to exciting new markets, such as AI as a Service. We are seeing AI extend beyond the Internet into everyday life, and this presents Baidu with large new market opportunities in the 2C, 2B and 2G markets.

我們利用人工智慧來加強百度的核心業務，也創造了新的用例，並為百度開啟了令人興奮的新市場，例如人工智慧即服務。我們看到人工智慧已經從網路延伸到日常生活，這為百度在2C、2B和2G市場帶來了巨大的新市場機會。

Let's begin Q3 with search and feed. In core search, Top 1 now comprises of over 40% of our search queries, and visual search is becoming ever more popular, with daily queries in the tens of millions, doubling from last year. These AI-powered features not only differentiate Baidu's search experience but also enable us to introduce features like Smart Answer for smart screens. For example, a user of Huawei, Oppo or Vivo smartphone with Baidu AI may take a photo of a plant or a pet, and the phone screen will return a card with information about the species in the photo. Smart Answer can also identify and provide information about celebrities, points of interests and so forth.

讓我們從搜尋和回饋開始第三季。在核心搜尋中，Top 1 目前佔據了我們搜尋查詢的 40% 以上，而視覺搜尋也變得越來越受歡迎，每天的查詢量達到數千萬，比去年翻了一番。這些人工智慧功能不僅使百度的搜尋體驗與眾不同，還使我們能夠為智慧螢幕引入智慧答案等功能。例如，使用配備百度 AI 的華為、Oppo 或 Vivo 智慧型手機的用戶可以拍攝植物或寵物的照片，手機螢幕會傳回一張卡片，其中包含有關照片中物種的資訊。Smart Answer 還可以識別並提供有關名人、興趣點等的資訊。

IDC recently reported that smartphones shipments in China declined 11% year-over-year in the first half of this year, making it more difficult for less frequented apps to continue traffic acquisition from app pre-installations. Mini programs have become a new source of traffic without requiring merchants to have native apps.

IDC 近期報告顯示，今年上半年中國智慧型手機出貨量年減 11%，這使得低使用率應用更難以繼續透過應用程式預載取得流量。小程式已成為商家無需擁有原生應用程式的新流量來源。

We launched the invite-only phase of our Smart Mini Program in July. And monthly active users ramped up quickly, surpassing 100 million in September. We have received favorable feedback from users, developers and our network partners, and program registration was open to the public at the end of September. We are on track to open source our Smart Mini Programs, which enable apps to join our host union and run Smart Mini Programs. Our Smart Mini Program open approach by design makes the information in Baidu's Smart Mini Program network searchable.

我們於 7 月推出了智慧小程式的邀請階段。月活躍用戶數快速成長，9月突破1億。我們收到了來自用戶、開發者和網路合作夥伴的正面回饋，而該計劃的註冊已於 9 月底向公眾開放。我們正在按計劃開源我們的智慧小程序，這使得應用程式能夠加入我們的主機聯盟並運行智慧小程式。我們的智慧小程式採用開放式設計，使百度智慧小程式網路中的資訊可搜尋。

Moving on to Baidu App. In September, average daily active users of Baidu App reached 151 million, up 19% year-over-year, and time spent on feed grew 68% year-over-year.

轉到百度應用程式。9月份，百度App日均活躍用戶數達1.51億，年增19%，資訊流使用時長較去年同期成長68%。

In the 2 short years that we launched the Baidu feed, we have added 276 MCNs and over 1.5 million content publishers, up from 1 million 2 quarters ago. Twin-engine search-plus-feed offering, coupled with unmatched AI-powered recommendation technology, deep insight of our massive user base, make Baidu App a compelling offering. A twin-engine app not only provides better user experience but also generates better unit economics.

在我們推出百度資訊流的短短兩年內，我們增加了 276 個 MCN 和超過 150 萬個內容髮布者，而兩個季度前這一數字為 100 萬。雙引擎搜尋加上資訊流服務，加上無與倫比的人工智慧推薦技術，以及對龐大用戶群的深入了解，使百度 App 成為一款引人注目的產品。雙引擎應用程式不僅提供更好的使用者體驗，還能產生更好的單位經濟效益。

Excluding iQIYI, Baidu distributes over 2 billion video views per day. The strong demand for video content on Baidu's platform places us in a good position to offer more variety of video feeds. We are replicating the Baidu app formula to develop video-only feed apps. For example, we began experimenting with Haokan this year, and in September, Haokan reached a DAU of 12 million. According to QuestMobile, Haokan was the fastest-growing app from June to September among all mobile apps in China with a DAU of more than 5 million.

除愛奇藝外，百度每天的影片播放量超過 20 億次。百度平台對影片內容的強勁需求使我們能夠提供更多種類的影片內容。我們正在複製百度應用程式的模式來開發純視訊資訊流應用程式。例如我們今年開始嘗試好看，9月好看的日活躍用戶就達到了1200萬。根據QuestMobile統計，好看是6月至9月中國所有行動應用中成長最快的應用，每日活躍用戶超過500萬。

On monetization. The strong traffic growth of our feed as well as video traffic are contributing to Baidu's revenue growth. In addition, our industry-leading use of AI to power ad monetization such as dynamic ads, mobile action ads and optimized cost-per-click continues to position Baidu as a compelling source of performance-based traffic.

關於貨幣化。我們的資訊流和視訊流量的強勁成長正在促進百度的收入成長。此外，我們在業界領先地利用人工智慧來推動動態廣告、行動行動廣告和優化每次點擊費用等廣告貨幣化，繼續使百度成為基於績效的流量的有力來源。

Baidu is pushing the boundary of innovation with cutting-edge technologies to better meet our customers' needs, for example, using blockchain and visual search to combat fake goods and generate more revenue for our customers.

百度正在利用尖端技術突破創新界限，以更好地滿足客戶的需求，例如，使用區塊鏈和視覺搜尋來打擊假冒商品並為客戶創造更多收入。

Hairy crabs from the Yangcheng Lake in Jiangsu province are a prized fall-season delicacy in China. This year, we worked with hairy crab fisheries from the Yangcheng Lake to set up a Smart Mini Program to enable consumers to verify product authenticity via the Baidu App. Blockchain ensures a tag or a card's uniqueness, while visual search provides a matching rating to ensure that the product was not switched. The combination of the 2 technologies have significant commercial value for merchants of big-ticket items sold online.

產自江蘇省陽澄湖的大閘蟹是中國秋季的珍品。今年，我們與陽澄湖大閘蟹漁業合作，推出了智慧小程序，方便消費者透過百度App驗證產品真偽。區塊鏈確保標籤或卡片的唯一性，而視覺搜尋提供匹配評級以確保產品沒有被調換。兩種技術的結合對於在線銷售大件商品的商家來說具有重大的商業價值。

Baidu has made significant strides to proactively improve the quality of health care information, and consumers are increasingly depending on Baidu for healthcare related services. We are developing a search solution to organize healthcare information into a structured format so that users can more easily compare services across healthcare providers. Our solution will verify the identity of licensed medical institutions and use AI to monitor the information quality on the landing pages. Ads will link to such structured data instead of third-party websites. Although these efforts to improve user experience may impact our revenue in the near term, as users get used to the new information structure, we believe they will ultimately lead to better traffic conversion for health care providers.

百度在積極提高醫療保健資訊品質方面取得了重大進展，消費者越來越依賴百度提供醫療保健相關服務。我們正在開發一種搜尋解決方案，將醫療保健資訊組織成結構化格式，以便使用者可以更輕鬆地比較各個醫療保健提供者的服務。我們的解決方案將驗證持牌醫療機構的身份，並使用人工智慧監控登陸頁面上資訊的品質。廣告將連結到此類結構化數據，而不是第三方網站。雖然這些改善用戶體驗的努力可能會在短期內影響我們的收入，但隨著用戶逐漸適應新的資訊結構，我們相信它們最終將為醫療保健提供者帶來更好的流量轉換。

Turning to DuerOS, Baidu's voice assistant. DuerOS continues to gain traction as we focus on user experience such as improving natural language processing, which enables endless conversation, and building out DuerOS' skills ecosystem. We are seeing people across China from Tier 1 to lower-tiered cities, from toddlers to senior citizens, use DuerOS-powered devices to perform voice search, watch videos, listen to music, make video calls and control IoT devices in their homes.

談到百度的語音助理DuerOS。隨著我們專注於使用者體驗，例如改進自然語言處理（實現無休止的對話）以及建立 DuerOS 的技能生態系統，DuerOS 繼續獲得關注。我們看到，從一線城市到二線城市、從幼兒到老年人，中國各地的人們都在使用搭載 DuerOS 的設備進行語音搜尋、觀看影片、聽音樂、進行視訊通話和控製家中的物聯網設備。

In September, DuerOS installed base reached 141 million, up from 100 million in July, and voice queries on DuerOS continued its rapid rise, surpassing 800 million times, which roughly doubled every quarter for the past 7 quarters.

9月份，DuerOS的安裝達到1.41億，高於7月份的1億，DuerOS上的語音查詢持續快速成長，超過8億次，在過去7個季度中每季都大致翻一番。

DuerOS skills store now has a community of over 24,000 developers and over 800 skills available such as education, cooking and game genres such as VIPKID, Cooking Recipes and Digital Pets, respectively.

DuerOS技能商店目前擁有超過24,000名開發者社群和超過800種技能可供選擇，例如教育、烹飪和遊戲類型，例如VIPKID、烹飪食譜和數位寵物。

DuerOS partners continue to expand from TVs to smart speakers to smart watches. In addition to homes, DuerOS also expanding its partnership in the IoV environment. For example, UCAR, better known as Shenzhou Youche, a car rental and ride-hailing service provider, will be installing DuerOS on its fleet of new vehicles.

DuerOS的合作夥伴不斷從電視擴展到智慧音箱、智慧手錶。除了家庭之外，DuerOS 也擴大了在車聯網領域的合作。例如，汽車租賃和叫車服務提供者神州優車（UCAR，更廣為人知的名字是神州優車）將在其新車隊上安裝 DuerOS。

Turning to Apollo. We are gaining valuable experience in commercial operations with Level 4 vehicles. The Xiamen King Long-produced Apolong, an Apollo-based fully autonomous minibus is currently running in over 10 locations throughout China. We are learning that end customers are requesting to purchase post-sales annual maintenance plan and that the passengers are willing to pay for a ride on the Apolong minibuses. For example, Guangzhou Sunflower Garden charges 20 RMB a ride for adult and 10 RMB for children.

轉向阿波羅。我們在 4 級車輛的商業營運中累積了寶貴的經驗。廈門金龍生產的阿波羅龍是一款基於阿波羅的全自動小型巴士，目前在中國 10 多個地點運行。我們了解到，終端客戶要求購買售後年度維護計劃，乘客也願意付費搭乘阿波龍小巴。例如廣州葵園成人票價為20元，兒童票價為10元。

Smart City utilizing AI to improve urban living presents Baidu with a great opportunity to serve the 2G market and bring Baidu AI to everyday life. The municipality of Changsha has just signed with us to be the first municipality in China to test robotaxis and our connected road solution powered by Apollo. We are also in discussions with Beijing and Shanghai, whose population is almost equivalent of 3 New York cities, to provide AI-powered city management solutions, to help with urban safety, traffic congestion and public parking, leveraging Baidu Brain, Baidu Cloud and autonomous driving technologies to improve urban living.

智慧城市利用人工智慧改善城市生活，為百度服務2G市場、將百度人工智慧帶入日常生活提供了絕佳機會。長沙市剛與我們簽約，成為中國第一個測試自動駕駛計程車和由 Apollo 提供支援的連網道路解決方案的城市。我們也正在與人口幾乎相當於3個紐約市的北京和上海進行討論，提供基於人工智慧的城市管理解決方案，幫助解決城市安全、交通擁堵和公共停車問題，利用百度大腦、百度雲和自動駕駛技術改善城市生活。

Turning to ABC Cloud. Baidu Cloud continues to grow robustly and recently recognized by third-party market research firm, Analysys, as the fastest-growing and among the top 3 most technologically advanced cloud service providers in China.

轉向 ABC Cloud。百度雲持續強勁成長，最近被第三方市場研究公司易受國際評為中國成長最快、技術最先進的三大雲端服務供應商之一。

At Baidu ABC Cloud Summit in Shanghai last month, we announced new enterprise solutions with advanced AI capabilities to serve the transportation, education and financial services industries. Our AI-as-a-service approach aims to help customers increase productivity and improve operational efficiency.

上個月在上海舉行的百度 ABC 雲端高峰會上，我們宣布了具有先進人工智慧功能的全新企業解決方案，以服務交通、教育和金融服務業。我們的人工智慧即服務方法旨在幫助客戶提高生產力並提高營運效率。

For example, a top Chinese telecom chose Baidu's ABC Cloud with AI-as-a-service to power their call center. Baidu Cloud was chosen for our differentiated AI technology in speech recognition, natural language processing and knowledge graph, enabling endless conversation and sparing customers the tedious experience of IVR menus. Using Baidu's enterprise AI solution, the call center saw dramatic improvement in customer service quality, with average call time falling 70%, and Baidu's AI solution handling millions of calls per month.

例如，一家中國頂級電信公司選擇了百度的 ABC Cloud 和 AI-as-a-service 來支援其呼叫中心。百度雲之所以被選中，是因為我們在語音辨識、自然語言處理和知識圖譜方面採用了差異化的人工智慧技術，可以實現無休止的對話，讓客戶免於 IVR 菜單的繁瑣體驗。使用百度的企業人工智慧解決方案後，呼叫中心的客戶服務品質顯著提高，平均通話時間減少了70%，百度的人工智慧解決方案每月可處理數百萬個呼叫。

At Baidu World in Beijing tomorrow, we will hear many more case studies illustrating Baidu's enterprise AI solutions now serving over a dozen industries.

明天在北京的百度世界，我們將聽到更多案例研究，展示百度的企業人工智慧解決方案現已服務於十幾個產業。

Turning to iQIYI. In the third quarter, iQIYI added a record 13.5 million subscribers, reaching a total of 80.7 million subscribers, driven by top-quality content and blockbuster originals like Story of Yanxi Palace. iQiyi continues to rank #1 across reach and engagement metrics in the third quarter according to third-party market research firms.

轉向愛奇藝。第三季度，愛奇藝新增訂閱用戶1350萬，創歷史新高，總訂閱用戶數達到8070萬，這得益於優質內容和《延禧攻略》等熱門原創作品的推動。根據第三方市場研究公司的數據，愛奇藝在第三季的覆蓋率和參與度指標中繼續排名第一。

Also during the quarter, iQiyi co-launched a hybrid OTT box with Beijing Gehua CATV Network, featuring DuerOS voice assistant, Video Search and children's mode. The hybrid OTT box enables users to access both iQiyi videos and cable TV from one box, an industry first. Partnerships such as these help DuerOS and iQiyi extend presence into the fast-growing OTT market and exemplify the unique value proposition that Baidu and iQiyi can offer, working in tandem.

本季度，愛奇藝還與北京歌華有線電視網絡聯合推出了一款混合 OTT 盒子，具有 DuerOS 語音助理、視訊搜尋和兒童模式。混合 OTT 盒子使用戶可以透過一個盒子同時存取愛奇藝影片和有線電視，這是業界首創。此類合作有助於 DuerOS 和愛奇藝擴大在快速成長的 OTT 市場的影響力，並體現百度和愛奇藝攜手合作所能提供的獨特價值主張。

With that, let me turn the call over to Herman to go through the financial highlights.

說完這些，讓我把電話轉給赫爾曼，讓他介紹一下財務亮點。

Thank you, Robin. Hello, everyone. Welcome to Baidu's third quarter 2018 call. Before I begin the third quarter review, let me make a few notes. All monetary announced used in my discussion are in RMB, unless stated otherwise. Starting on January 1, we adopted ASC 606, a new revenue accounting standard that nets value-added tax from revenue and cost of revenue line items. To increase comparability with 2018 numbers, 2017 numbers have been adjusted net of VAT.

謝謝你，羅賓。大家好。歡迎參加百度2018年第三季電話會議。在開始第三季回顧之前，請允許我做一些筆記。除非另有說明，否則我在討論中使用的所有貨幣均為人民幣。從 1 月 1 日開始，我們採用了 ASC 606，這是一項新的收入會計準則，從收入和收入成本項目中扣除增值稅。為了提高與 2018 年數據的可比性，2017 年數據已扣除增值稅進行調整。

We completed the spinoff of Du Xiaoman, Baidu's Financial Services, during the third quarter which was the last of the announced spinoffs. For today's discussion on Baidu Core, we are providing revenue and operating income numbers, excluding the spinoff businesses, to give more visibility on the performance of Baidu Core without the spinoffs and allows for easier comparison for future quarters. Please refer to our press release for full information on Baidu Core financials.

我們在第三季完成了百度金融服務業務度小滿的剝離，這是最後一次宣布的剝離。在今天關於「百度核心」的討論中，我們提供了不包括分拆業務的收入和營業收入數據，以便更清楚地了解沒有分拆業務的「百度核心」的業績，並更容易與未來幾季進行比較。有關百度核心財務的完整信息，請參閱我們的新聞稿。

With that, let's turn to Q3. We had a solid quarter. Total revenues reached CNY 28.2 billion, up 27% year-over-year. Non-GAAP operating income was CNY 5.7 billion, up 2% year-over-year. Non-GAAP net income to Baidu was CNY 6.7 billion, up 47% year-over-year. And non-GAAP net margin was 24%.

接下來，讓我們進入第三季。我們本季表現穩健。總營收達282億元人民幣，年增27%。非美國通用會計準則營業收入為人民幣57億元，較去年同期成長2%。百度非美國通用會計準則淨利為67億元人民幣，較去年同期成長47%。非公認會計準則淨利率為24%。

Revenue from Baidu Core, excluding spinoff revenues, were CNY 20.6 billion, up 27% year-over-year. Non-GAAP operating profit of Baidu Core, excluding spinoffs, was CNY 7.7 billion, up 12% year-over-year. And non-GAAP operating margin was 37% compared to 42% from the previous year.

百度核心營收（不含分拆收入）為 206 億元，年增 27%。百度核心的非美國通用會計準則營運利潤（不包括分拆業務）為 77 億元，較去年同期成長 12%。非公認會計準則營業利益率為 37%，而上年度為 42%。

As we previously highlighted, our plan this year is to increase investment in content purchase for BJH accounts and increase marketing expenditures for the Baidu App. This helps Baidu achieve several benefits: 1) shifting Baidu search to our own properties improves the user experience for search and saves on TAC; 2) feed is a complementary business for search, and the two together drives better unit economics for marketing purposes; and 3) with more and more apps relying on super apps to generate traffic, strengthening the Baidu App as we roll out Baidu's Smart Mini Program will increase our ad monetization potential.

正如我們之前所強調的，我們今年的計劃是增加對 BJH 帳戶的內容購買投資，並增加百度應用程式的行銷支出。這有助於百度實現多項優勢：1）將百度搜尋轉移到我們自己的資產中，可以改善用戶的搜尋體驗並節省 TAC；2）資訊流是搜尋的補充業務，兩者相結合可以為行銷帶來更好的單位經濟效益；3）隨著越來越多的應用程式依賴超級應用程式來產生流量，隨著我們推出百度應用程式，加強百度應用程式將增加我們的廣告獲利潛力。

Although content and marketing costs are expensed as incurred, we believe we will be able to recover more dollars from these investments to further increase the scale of Baidu App. We are already seeing time spent on feed in the Baidu App growing 68% year-over-year in September. But to ensure good budget management, we have placed a sophisticated tracking system in place to keep a close watch on our marketing investments.

雖然內容和行銷成本在發生時計入費用，但我們相信我們將能夠從這些投資中收回更多資金，以進一步擴大百度應用程式的規模。我們已經看到，9 月百度 App 的資訊流使用時間年增了 68%。但為了確保良好的預算管理，我們建立了一個複雜的追蹤系統來密切關注我們的行銷投資。

As Robin elaborated, we are making strong progress in our strategy to solidify our mobile foundation and lead in AI, and we stay committed to Baidu's future. As of September 30, 2018, Baidu has returned $487 million to our shareholders under the 2018 share repurchase program announced in June. Let me now go through the rest of the quarter financial highlights.

正如羅賓所闡述的，我們在鞏固行動基礎和引領人工智慧領域的策略方面正在取得重大進展，我們將繼續致力於百度的未來。截至2018年9月30日，百度已根據6月宣布的2018年股票回購計畫向股東返還4.87億美元。現在讓我來回顧一下本季剩餘的財務亮點。

Online marketing revenues were CNY 22.5 billion, up 18% year-over-year. We had approximately 522,000 online marketing customers, up 7% year-over-year. And revenue per customer was approximately RMB 43,100, up 12% year-over-year. Other revenues were CNY 5.7 billion, up 80% year-over-year, mainly resulting from the robust growth in iQiyi membership and other businesses.

網路行銷收入為225億元人民幣，較去年同期成長18%。我們擁有約522,000名網路行銷客戶，年增7％。每位客戶的收入約為人民幣43,100元，較去年同期成長12％。其他營收為人民幣57億元，較去年成長80%，主要得益於愛奇藝會員及其他業務的強勁成長。

Excluding spinoff revenue of CNY 1 billion in the third quarter, revenue from Baidu Core was CNY 20.6 billion, up 27% year-over-year. Revenue from iQiyi reached CNY 6.9 billion, up 48% year-over-year.

剔除第三季10億元人民幣的分拆收入，百度核心營收為206億元人民幣，較去年同期成長27%。愛奇藝營收達69億元人民幣，較去年成長48%。

Cost of sales, excluding stock compensation, was CNY 14.2 billion, up 36% year-over-year. Content cost was up 73% year-over-year to CNY 6.7 billion, mainly due to increased content purchases by iQiyi and, to a much lesser extent, from Baijiahao, or BJH accounts, Baidu feed's content network.

不包括股票薪酬的銷售成本為 142 億元，年增 36%。內容成本年增 73% 至 67 億元人民幣，主要由於愛奇藝增加內容購買，以及百度資訊流內容網路百家號（BJH 帳戶）的內容購買（但幅度要小得多）。

Other operating expenses, excluding stock compensation, was CNY 8.4 billion, up 35% year-over-year, mainly due to the increase in channel and promotional marketing of Baidu Apps and other apps and the increase in R&D personnel-related costs. Other income in the third quarter was CNY 4.4 billion, down 6% year-over-year. Non-GAAP operating income was CNY 5.7 billion, up 2% year-over-year.

除股票薪酬外的其他營運費用為人民幣 84 億元，年增 35%，主要由於百度應用程式及其他應用程式的通路和促銷行銷費用增加以及研發人員相關成本的增加。第三季其他收入為44億元人民幣，較去年同期下降6%。非美國通用會計準則營業收入為人民幣57億元，較去年同期成長2%。

As mentioned, excluding spinoffs, non-GAAP operating income from Baidu Core was CNY 7.7 billion, up 12% year-over-year, and non-GAAP operating margin for Baidu Core was 37%.

如上所述，不包括分拆業務，「百度核心」的非美國通用會計準則營業收入為人民幣 77 億元，年增 12%，非美國通用會計準則營業利潤率為 37%。

Net income attributable to Baidu in the third quarter was CNY 12.4 billion. Diluted earnings per ADS was RMB 35. Non-GAAP net income attributable to Baidu was CNY 6.7 billion, up 47% year-over-year, and non-GAAP diluted earnings per ADS was RMB 19. The year-over-year increase was partially due to the change in non-controlling interest as losses from iQIYI were not allocable to preferred shares prior to the IPO.

第三季歸屬於百度的淨利為124億元。每股美國存託憑證攤薄收益為35元人民幣。非美國通用會計準則下歸屬於百度的淨利潤為67億元人民幣，較去年同期成長47%；非美國通用會計準則下每股美國存託憑證攤薄收益為19元。年成長部分是由於非控制權益的變化，因為愛奇藝的損失在 IPO 之前不能分配給優先股。

Non-GAAP net income attributable to Baidu Core was CNY 8.4 billion, up 57% year-over-year.

非美國通用會計準則下，歸屬於百度核心的淨利為84億元人民幣，較去年同期成長57%。

Adjusted EBITDA in the third quarter reached CNY 6.8 billion, and EBITDA margin reached 24%. Adjusted EBITDA for Baidu Core reached CNY 9 billion, and adjusted EBITDA margin reached 42%.

第三季調整後EBITDA達68億元人民幣，EBITDA利潤率達24%。百度核心調整後EBITDA達90億元人民幣，調整後EBITDA利潤率達42%。

As of September 30, 2018, cash and short-term investments was CNY 104.5 billion. Free cash flow was CNY 9.1 billion. Total headcount as of September 30, 2018, was approximately 40,700, up 2% year-over-year.

截至2018年9月30日，現金及短期投資為人民幣1,045億元。自由現金流為91億元。截至 2018 年 9 月 30 日，員工總數約為 40,700 人，年增 2%。

Excluding iQiyi, cash and short-term investments was CNY 94.8 billion, free cash flow to Baidu Core was CNY 8.3 billion and total headcount for Baidu Core was approximately 32,300, down 3% year-over-year.

不計愛奇藝，現金及短期投資為948億元人民幣，百度核心自由現金流83億元人民幣，百度核心員工總數約32,300人，較去年同期下降3%。

Turning to fourth quarter guidance. Toward the latter half of Q3, iQiyi's brand advertising and Baidu's brand advertising, to a lesser extent, began to feel the impact of recent policy changes related to certain verticals, such as gaming, financial services and so forth, as well as general uncertainties from a potential trade war. We expect this trend to continue into the fourth quarter. In addition, our proactive effort to improve the structure of health care information may impact our ad revenues in the near future.

轉向第四季指引。進入第三季後半段，愛奇藝的品牌廣告和百度的品牌廣告（程度較輕）開始受到近期與某些垂直領域（如遊戲、金融服務等）相關的政策變化以及潛在貿易戰帶來的普遍不確定性的影響。我們預計這一趨勢將持續到第四季。此外，我們積極努力改善醫療保健資訊結構可能會在不久的將來影響我們的廣告收入。

Based on the above, we expect total revenues to be between CNY 25.48 billion and CNY 26.72 billion, representing a 15% to 20% increase year-over-year. Excluding spinoff revenue of CNY 1 billion for the fourth quarter last year, this guidance assumes Baidu's fourth quarter revenues will grow between 20% to 26% year-over-year.

基於上述情況，我們預計總收入將在人民幣 254.8 億元至 267.2 億元之間，年增 15% 至 20%。不計去年第四季10億元人民幣的分拆收入，指引預計百度第四季營收將年增20%至26%。

These forecasts are our current and preliminary view and are subject to change.

這些預測是我們目前的初步觀點，可能會改變。

I will now turn the call over to the operator. Thank you.

我現在將把電話轉給接線生。謝謝。

Operator, we're ready for our first question.

接線員，我們已經準備好回答第一個問題了。

(Operator Instructions) And the first question is from the line of Alicia Yap from Citigroup.

（操作員指示）第一個問題來自花旗集團的 Alicia Yap。

I wanted to ask if management could share with us your view when comparing the news feed ad versus the search advertising in light of these softening advertising environment or potentially more ad budget cut, which one is actually likely to be more resilient and which one is more vulnerable to the budget cuts? In addition to iQiyi, which, on previous calls, you noted that it was impacted by the online game sector, wonder how big the exposure of Baidu mobile news feed ad is related to the online games. And is management obviously expecting the economic conditions in these two softening? Any measure that Baidu plans to do to mitigate the downturn? Or do you think Baidu will be more immune to any slowdown?

我想問管理層是否可以與我們分享您的觀點，在廣告環境疲軟或廣告預算可能進一步削減的情況下，比較新聞推送廣告和搜尋廣告，哪一個實際上可能更具彈性，哪一個更容易受到預算削減的影響？除了愛奇藝之外，您在之前的電話會議上提到它受到了網路遊戲產業的影響，想知道百度行動新聞資訊流廣告的曝光與網路遊戲的關係有多大。管理階層是否明顯預期到這兩年經濟狀況的疲軟？百度計畫採取什麼措施來緩解下滑趨勢？或者您認為百度對任何放緩的免疫力更強嗎？

Alicia, this is Robin. Your question regarding to the news feed ad and search ad, I will say first that both search and feed ad are primarily performance ads, which means that advertisers always find that the performance on our platform is better and is worthwhile for them to spend money on. I think the brand ads, the display ads are impacted more due to macro condition. And having said that, I'll say that the feed is probably less resilient than search because a percentage of the feed ad could be brand-related. But on the other hand, as you know, that the feed is growing faster than search. And the new regulations on games did have an impact on our revenue. We have a number of advertisers from the game industry. They are affected significantly, but gaming is not a very large industry for Baidu's advertising base. So we, to a certain extent, are affected but it's not a top 5 industry for us.

艾莉西亞，這是羅賓。你提到的關於資訊流廣告和搜尋廣告的問題，首先我想說的是，搜尋廣告和資訊流廣告主要都是效果廣告，也就是說，廣告主總是覺得我們平台上的效果更好，值得他們花錢。我認為品牌廣告、展示廣告受宏觀環境的影響更大。話雖如此，我想說的是，資訊流的彈性可能不如搜索，因為一定比例的資訊流廣告可能與品牌相關。但另一方面，如您所知，資訊流的成長速度比搜尋更快。而新的遊戲法規確實對我們的收入產生了影響。我們有許多來自遊戲產業的廣告商。它們受到了很大影響，但遊戲對於百度的廣告基礎來說並不是一個很大的行業。因此，我們在一定程度上受到了影響，但這並不是我們排名前五的行業。

Yes, to give more color, Alicia, I think going into Q4, there's been various policies in China. So game will probably be one of the industries that would be impacted. There's several other ones. We could be impacted, for example, from real estate and interior design, some from lifestyle, online commerce and so forth, some on financial services. So it's not any particular industry that's impacting us heavily for the Baidu Core business, it's just spread around several industries, a little bit here, a little bit there added together, be it car, real estate to probably grow not as fast as we would like in Q4. But we also need to remember that when comparing for Q4, that last year over CNY 1 billion was related to the spinoff, so we've got to have a lower base to recognize that.

是的，艾莉西亞，為了提供更多的信息，我認為進入第四季度，中國已經出台了各種政策。因此遊戲可能會成為受到影響的行業之一。還有其他幾個。例如，我們可能會受到房地產和室內設計的影響，生活方式、線上商務等的影響，以及金融服務的影響。因此，並不是某個特定行業對百度核心業務造成了重大影響，而是多個行業受到影響，這裡一點，那裡一點，加在一起，無論是汽車還是房地產，第四季度的增長速度可能都沒有我們想像的那麼快。但我們還要記住，與第四季相比，去年有超過 10 億元與分拆有關，因此我們必須有一個較低的基數才能認識到這一點。

Sure. Can I just follow up, next year, are we expecting further slowdown that we should probably take more into consideration for now expecting next year will be slower?

當然。我能否跟進一下，明年，我們是否預計會進一步放緩，我們現在可能應該更多地考慮明年的放緩預期？

Alicia, we don't really give forward-looking guidance for next year. It's very hard for us to predict the macro economy over the next year. What we have seen is that for the next couple of quarters, that the current macro environment is like this.

艾莉西亞，我們實際上並沒有為明年提供前瞻性的指導。我們很難預測明年的宏觀經濟。我們看到，未來幾季的宏觀環境是這樣的。

The next question that we have is from the line of Eddie Leung from Merrill Lynch.

我們的下一個問題來自美林證券的 Eddie Leung。

Just a question on traffic and competition. I think, Robin, you mentioned that it's getting less efficient to acquire traffic, fire the mobile channel given you're slowing down in handset growth. But recently I have seen a couple of your competitors probably seen area of this year pretty aggressively buying traffic, I mean, competitors, direct competitors, on the search side. So just wondering how you see the competitive landscape going. Considering a couple of third parties are also showing -- it seems like they acquired a bit of MAU, although still are much smaller than you guys. Just wondering how you think about this phenomenon.

這只是關於交通和競爭的一個問題。羅賓，我想，你提到過，由於手機成長速度正在放緩，獲取流量、啟動行動管道的效率變得越來越低。但最近我看到你們的一些競爭對手可能在今年相當積極地購買流量，我的意思是，競爭對手，直接競爭對手，在搜尋方面。我只是想知道您如何看待競爭格局。考慮到一些第三方也表現出色——似乎他們獲得了一些 MAU，儘管仍然比你們小得多。只是想知道您對這種現像有何看法。

Yes, sure, Eddie. I think there are 2 types of companies. One is platform companies like us. We own super apps. We are continuing to aggressively invest in channel to do all kinds of pre-installation or marketing to further solidify our position as the super app or as the platform. But for most other companies who had a native app or had a website but hoping to establish their native app as the gateway to their services, it's getting tougher because consumers just don't want to install that many apps on their phones, and the number of mobile Internet users are not growing that fast. So we expect most of the companies will increasingly rely on large platforms like us to get traffic through either Baijiahao or Smart Mini Programs. I think they will shift their developing resources from native apps to Smart Mini Programs and Baijiahao infrastructure. The advantage Baidu has is that we are very strong in AI technology. We have the DNA of using technology to distribute content and services. So our core competence is really to find the most efficient way to distribute content and services and to deliver the best conversion for our advertisers and merchants. As you mentioned, we do have competition in this area. There are other Internet platforms that are trying to attract more users, more traffic, more advertisers. And again, our strength is technology. We have unmatched capability to distribute the content services more efficiently and drive conversion better than anyone else.

是的，當然，艾迪。我認為有兩種類型的公司。一類是我們這樣的平台公司。我們擁有超級應用程式。我們將繼續積極投資管道，進行各種預裝或行銷，以進一步鞏固我們作為超級應用程式或平台的地位。但對於大多數擁有原生應用程式或網站但希望將原生應用程式確立為其服務門戶的公司來說，情況變得越來越困難，因為消費者並不想在手機上安裝那麼多應用程序，而且移動互聯網用戶的數量增長速度也沒有那麼快。因此，我們預計大多數公司將越來越依賴像我們這樣的大型平台，透過百家號或智慧小程式來獲取流量。我認為他們會將開發資源從原生應用程式轉移到智慧小程式和百家號基礎設施。百度的優點是，我們的人工智慧技術非常強。我們擁有利用科技分發內容和服務的 DNA。因此，我們的核心競爭力實際上是找到最有效的方式來分發內容和服務，並為我們的廣告商和商家提供最佳的轉換。正如您所說，我們在這個領域確實存在競爭。其他網路平台正在努力吸引更多用戶、更多流量、更多廣告主。再次強調，我們的優勢在於技術。我們擁有無與倫比的能力，可以比任何人都更有效地分發內容服務並更好地推動轉換。

The next question is from the line of Gregory Zhao from Barclays.

下一個問題來自巴克萊銀行的 Gregory Zhao。

So my first question, still about your advertising. Can you share with us the top ranking, like the top 5 or top 3 advertising categories in this quarter? And how does that compare to the last quarter and last year? And based on your key account and SME advertising account, so which account have seen more impact from the regulation on the policy impact? And a quick follow-up is in the e-commerce category, your advertising saw very strong growth last year. So you still have less than 2 weeks before this year's Singles' Day promotions, so can you share us some early colors or metrics for this year's Singles' Day?

所以我的第一個問題仍然是關於您的廣告。能否與我們分享本季的排名情況，例如前 5 名或前 3 名的廣告類別？與上一季和去年相比如何？而根據您的大客戶和中小企業廣告帳戶，哪個帳戶受到的政策影響更大？快速跟進的是，在電子商務類別中，你們的廣告去年實現了非常強勁的成長。距離今年的光棍節促銷活動還有不到兩週的時間，您能和我們分享今年光棍節的一些早期顏色或指標嗎？

Yes. So Greg, I'll take the first one. We actually are -- because of the size of our advertising, we actually span widely among all the industries. Our top industry in advertising will include things like medical; would include retail as a general term, both e-commerce and other type of retail businesses; would include education, especially those post-college. These are just some of the top advertising industries we have.

是的。格雷格，我選擇第一個。事實上，由於我們的廣告規模，我們的業務範圍實際上廣泛涵蓋了所有行業。我們的廣告主要行業包括醫療等領域；包括零售業（總體而言，包括電子商務和其他類型的零售業務）；包括教育，特別是大學後的教育。這些只是我們擁有的一些頂級廣告行業。

Yes, I think that the regulatory environment change affects both the key accounts and SME. It's more industry-specific than size-specific. And regarding to the e-commerce market, or the upcoming Double Eleven Shopping Festival, we do expect solid growth again, and I think both the e-commerce platforms as well as merchants and retailers are pretty active in promoting their products during this period. And we stand to benefit from the advertising dollars they spend on our platform.

是的，我認為監管環境的變化既影響大客戶，也影響中小企業。它更側重於行業而非規模。至於電子商務市場，或即將到來的雙十一購物節，我們確實預計會再次出現穩健的成長，而且我認為電子商務平台以及商家和零售商在此期間都會非常積極地推廣他們的產品。我們將從他們在我們平台上投入的廣告費中獲益。

The next question is from the line of Grace Chen from Morgan Stanley.

下一個問題來自摩根士丹利的 Grace Chen。

Could you share with us your strategy for 2019? For this year, we made it clear that we focused more on top line growth and share gains. So we invest more aggressively in content and market expenses. And the result is we're seeing very good revenue growth, while margins are trending down in the recent quarters. How about your strategy for the next year, specifically your plan for counter spending, marketing expenses? And what's the implication on margin for the next year?

可以跟我們分享一下您2019年的策略嗎？今年，我們明確表示將更加重視營收成長和市佔率成長。因此，我們在內容和市場費用方面投入了更多精力。結果是，我們看到了非常好的收入成長，而利潤率在最近幾季呈現下降趨勢。您明年的策略如何，特別是櫃檯支出、行銷費用的計劃？這對明年的利潤率有何影響？

I think our strategy for next year will pretty much stay the same. We will continue to invest for growth, and we will continue to solidify our mobile foundation and lead in the AI new businesses such as the DuerOS, Apollo, all require continued investment. And the fast growth from video and other apps will also require marketing dollars to continue to fulfill their momentum.

我認為我們明年的策略基本上保持不變。我們將繼續為成長而投資，我們將繼續鞏固我們的行動基礎並引領人工智慧新業務，例如DuerOS，Apollo，都需要持續的投資。影片和其他應用程式的快速成長也需要行銷資金來繼續保持其發展勢頭。

Yes, just as Robin said, I think with regards to the margins, I think we explained it pretty well in the prepared remarks, there's really 2 issues here. Number one is the revenue guidance that we have in Q4 is growing less than the group Q3 rates, so that's going to impact our margin a little bit. For example, in Q4, you see our Baidu Core business, it's probably down around CNY 800 million on a quarter-over-quarter basis, if you assume midpoint of Q4. And then on top of that, you should expect that our cost of sales plus our OpEx, we've been growing at over RMB 1 billion per quarter. So that's going to dampen our margin. So that's one reason for dampening our margin. The other to consider is the fact that we are heavily investing in the app world to create super apps. So in the past couple of quarters, we've been focusing on Baidu App. Now that we have seen a pattern of success, we are also going into different video apps, Haokan being the one that we tried in Q3. And you can see how DAU has significantly grown in Q3. And the fact that QuestMobile cited us as the fastest-growing app with DAU over 5 million, so we're going to continue to invest in that. And because of that particular financial model, we are not going to be able to match expenses with revenue because expenses occurs during the quarter while the revenue is over several quarters after the investment as users come back. So that is changing, so we have to factor in that as we look at 2019 margins. All in all, we do have a tracking system that tells us over the 2 years how the users generate revenue. And when we see positive, only when we see a positive ROI, do we double-down and increase the market spending with that particular app. I hope that helps.

是的，正如羅賓所說，我認為關於利潤率，我們在準備好的評論中已經解釋得很好了，這裡實際上有兩個問題。首先，我們第四季的營收預期增幅低於第三季的增幅，因此這會對我們的利潤率產生一定影響。例如，在第四季度，我們可以看到百度核心業務的營收季減了約 8 億元人民幣（假設第四季的中點）。除此之外，你應該預料到我們的銷售成本加上營運支出每季將成長超過 10 億元。所以這會降低我們的利潤率。所以這是我們利潤率下降的一個原因。另一個需要考慮的事實是，我們正在大力投資應用程式領域以創建超級應用程式。因此在過去的幾個季度中，我們一直專注於百度應用程式。現在我們已經看到了成功的模式，我們也正在進入不同的視訊應用領域，好看是我們在第三季度嘗試過的應用程式。您可以看到第三季的 DAU 顯著成長。QuestMobile 將我們評為成長最快的應用程序，DAU 超過 500 萬，因此我們將繼續在這方面進行投資。由於這種特殊的財務模型，我們無法將支出與收入相匹配，因為支出發生在季度內，而收入則發生在投資後的幾個季度，即用戶回歸之後。這種情況正在發生變化，因此我們在考慮 2019 年的利潤率時必須考慮到這一點。總而言之，我們確實有一個追蹤系統，可以告訴我們兩年內用戶如何創造收入。當我們看到積極的一面時，只有當我們看到正的投資回報率時，我們才會加倍努力並增加該特定應用的市場支出。我希望這能有所幫助。

The next question we have is from the line of Juan Lin from 86Research.

下一個問題來自 86Research 的 Juan Lin。

My first question is related to your business outlook. On the outlook, you mainly referred to regulations impacting certain industries. I'm wondering, have you seen the early signs of massive slowdown impacting budget spending sentiment for the next few quarters? Also, if I got it correctly, you also mentioned the restructure and cleanup of medical ads. Could you elaborate the reasons and details for such changes and whether there is room for further adjustment of your screening process of advertisers and other industries down the road? My second question is related to DuerOS. Given that DuerOS has already accumulated a very high installed base, queries and partners, could you please remind us on the monetizations roadmap planned for DuerOS on when shall we expect to contribute meaningful revenue?

我的第一個問題與您的商業前景有關。關於展望，您主要提到了影響某些行業的法規。我想知道，您是否看到了經濟大幅放緩影響未來幾季預算支出情緒的早期跡象？另外，如果我沒理解錯的話，您也提到了醫療廣告的重組和清理。您能否解釋一下這些變化的原因和細節，以及未來對廣告商和其他行業的篩選流程是否還有進一步調整的空間？我的第二個問題與 DuerOS 有關。鑑於 DuerOS 已經累積了非常高的安裝基礎、查詢和合作夥伴，您能否提醒我們 DuerOS 計劃的貨幣化路線圖，我們何時可以預期貢獻有意義的收入？

Okay, on the possible massive slowdown, right now what we have seen is that the confidence level from the private sector, from consumers, are not that high, but the actual impact is not obvious yet. If, let's say, during the next couple of months, the confidence level changes, things will change to the positive direction, but we don't know exactly what's going to happen. On the medical ad, the cleanup is an ongoing process. It's like many other industries, and it's like fighting with fake news on the Internet. It's a battle between the platform and those merchants who want to find unusual ways to take advantage of our platform. So this is the ongoing part. And in particular, for this quarter and the next few quarters, we are basically redesigning the sponsored search system so that starting from the medical industry, we will not allow advertisers to direct link to their own website. We will host all information on the Baidu servers in a more structured format, so that we have better control on what they can say and what kind of information they present to the consumers. We believe this will be beneficial to the end users and eventually drive better conversion for the health care providers. DuerOS monetization, as I mentioned, it's been growing very, very rapidly. We expect the growth to continue in 2019, and meaningful monetization should start from 2020.

好的，關於可能出現的大規模經濟放緩，目前我們看到的是，私部門和消費者的信心水準並不高，但實際影響尚不明顯。假設在接下來的幾個月裡，信心水準發生變化，事情就會朝著正面的方向發展，但我們不知道究竟會發生什麼。在醫療廣告中，清理是一個持續的過程。這就像許多其他行業一樣，就像在網路上與假新聞作鬥爭一樣。這是平台與那些想以不尋常的方式利用我們平台的商家之間的一場戰鬥。這是正在進行的部分。特別是，對於本季度和接下來的幾個季度，我們基本上重新設計了贊助搜尋系統，從醫療行業開始，我們將不允許廣告商直接連結到他們自己的網站。我們將以更結構化的格式將所有資訊託管在百度伺服器上，以便我們更好地控制它們可以說什麼以及它們向消費者呈現什麼樣的資訊。我們相信這將有利於最終用戶並最終推動醫療保健提供者更好的轉變。正如我所提到的，DuerOS 的貨幣化發展非常非常迅速。我們預計 2019 年將繼續成長，並從 2020 年開始實現有意義的貨幣化。

Next question is from the line of Piyush Mubayi from Goldman Sachs.

下一個問題來自高盛的 Piyush Mubayi。

Robin, there have been rumors recently of a potential international search engine entering China. I wonder whether you would be able to talk through the advantages that you think you have in the face of a company like that. And in the same vein, looking at several Chinese companies exploring opportunities internationally, I know you've done those and looked at those in the past. And I wondered if you could take us through how your experience has been and relate that to the potential entry of a search engine into the China market. That's my first question. And second and a very short question, from a macro slowdown perspective, which period in your operating history does this remind you of at this stage?

羅賓，最近有傳言說一個國際搜尋引擎可能會進入中國。我想知道您是否可以談談，面對這樣的公司，您認為自己有哪些優勢。同樣，看到幾家中國公司在國際上探索機遇，我知道您過去也做過這些事情，也研究過這些事情。我想知道您是否可以向我們介紹您的經歷，並將其與搜尋引擎進入中國市場的可能性聯繫起來。這是我的第一個問題。第二個問題也很簡短，從宏觀經濟放緩的角度來看，這讓您想起了您經營歷史上的哪個時期？

Okay. Yes, if you look at the overall Chinese Internet landscape, you probably cannot find any single U.S.-based company that has meaningful market share here. Well, that's for a reason. First, China is a very large market; and secondly, it's a very fast-growing, fast-changing market. Things change every day, and you need to make new decisions every day. I don't think a non-China-based company has that kind of competency to really compete in this market, be it search or e-commerce or social or whatever you can think of, you just cannot find anything that meaningful in this market. And secondly, on our international expansion or the international expansion for Chinese Internet companies, both us and many other Chinese companies are expanding overseas, and we are learning how to do business outside of China. What we have learned is that it's very difficult to get into a new market where there's a status quo, there's an existing dominant player and you play the same rules, that's very difficult. What we have seen is that, if we can come up with some kind of new products, we have a chance to win over the users there and make money. Take Japan as an example. We own the largest input method editor called Simeji in Japan. And a lot of people, lots of Japanese consumers are familiar with this brand. And Simeji is also profitable and growing. And it's also related to our core technology in terms of search and AI. We enable users to do voice input which requires good speech recognition technology in Japanese. So going forward, we will continue to find new opportunities, new markets, new products to try to gain traction in international markets. On the macro, people will probably most likely think of 2008 when the financial crisis happened. But this time, I think it's different. I think right now, it's more about the traditional industry, more about entrepreneurs' confidence and that can change very quickly. I don't think that the fundamental fabric of the Chinese economy is in question. So I think longer-term, I'm still very optimistic about the future of Baidu and the future of China.

好的。是的，如果你看看整個中國網路格局，你可能找不到任何一家在中國擁有重要市場份額的美國公司。嗯，這是有原因的。首先，中國是一個非常大的市場；其次，中國是一個成長非常快、變化也很快的市場。事情每天都在變化，你需要每天做出新的決定。我認為非中國公司不具備這樣的能力在這個市場上真正競爭，無論是搜尋、電子商務、社交或任何你能想到的領域，你都無法在這個市場上找到任何有意義的東西。第二，關於我們的國際擴張，或者說中國網路公司的國際擴張，我們和許多中國公司都在向海外擴張，我們也在學習如何在中國以外開展業務。我們的經驗是，進入一個現狀穩定、已有主導者、遵循相同規則的新市場非常困難。我們看到的是，如果我們能夠推出某種新產品，我們就有機會贏得那裡的用戶並賺錢。以日本為例。我們擁有日本最大的輸入法編輯器Simeji。很多人，很多日本消費者都熟悉這個品牌。Simeji 也實現了盈利並且不斷增長。這也與我們的搜尋和人工智慧方面的核心技術有關。我們讓使用者能夠進行語音輸入，這需要良好的日語語音辨識技術。因此，展望未來，我們將繼續尋找新機會、新市場、新產品，以爭取在國際市場上發展。從宏觀角度來看，大家最容易想到的可能是2008年金融危機。但這一次，我認為情況有所不同。我認為現在更多的是關於傳統行業，更多的是關於企業家的信心，而且這種情況可能會很快改變。我並不認為中國經濟的基本結構有問題。所以我認為從長遠來看，我仍然對百度的未來和中國的未來感到非常樂觀。

Next question is from the line of Natalie Wu from CICC.

下一個問題來自中金公司的 Natalie Wu。

Just following up with the landing page change related to merchant account for health care industry. Robin, you mentioned that it will bring along some short-term pain in your prepared remarks. Just wondering if it's only related with mobile side and core search product, right? And also, how is that going to impact for your fourth quarter guidance? And you've also mentioned that this kind of change is still at medical sector. I just wonder if there's any follow-up for other top verticals for your advertisers? And if yes, can you give us some color about your plan for that?

只是跟進與醫療保健行業商家帳戶相關的登陸頁面變更。羅賓，你在準備好的發言中提到，這會帶來一些短期的痛苦。只是想知道它是否僅與行動和核心搜尋產品有關，對嗎？此外，這將對您的第四季指導產生什麼影響？您也提到，這種變化仍然在醫療領域。我只是想知道，對於您的廣告客戶來說，是否有針對其他頂級垂直領域的後續行動？如果是的話，可以給我們詳細介紹一下您的計劃嗎？

Okay, Herman will address the Q4 impact, and let me elaborate on the landing page strategy change more. If you look at other type of services on the Internet, it's actually quite natural for platforms to use structured data instead of directing consumers to a third-party website. It's just the nature of the search. Or due to the legacy of the search, people naturally think that they do a search here, they find all kinds of different links and they click one of the links, they are brought to a different website where search engines have no control. This is not the best user experience in the mobile age. That's why in the beginning of the prepared remarks, I said 40% of our Top 1 results now can satisfy users' needs. And many of the Top 1 results are actually structured data. It's not a website linked to a third-party content. If you look at -- in the online travel industry, if you try to find information about a particular hotel, you typically do not go to a -- go from an online agency like Ctrip and to the website of a hotel official website, you actually find structured data about users' comments and their price and all sorts of things on the Ctrip app or on the Ctrip website. And for restaurants, right, if you go Dianping or Meituan -- you also find all kinds of related information in a structured manner. You are not directed to the official website of that restaurant. And health care should be similar. I think in the future, we should provide structured data for health care providers so that consumers have an easier way to navigate our own information and make their choices. This is a transition. Transition always affects revenue. But longer term, I think this is a win-win-win situation. The platform has better control, and the content users have more transparent way to find information and serve their interest and health care providers gets better conversion from it.

好的，Herman 將討論第四季的影響，讓我進一步詳細說明登陸頁面策略的變化。如果你看看網路上的其他類型的服務，你會發現平台使用結構化資料而不是將消費者引導到第三方網站實際上是很自然的。這只是搜尋的本質。或者由於搜索的遺留問題，人們自然而然地認為他們在這裡進行搜索，他們找到各種不同的鏈接，他們點擊其中一個鏈接，他們被帶到一個搜索引擎無法控制的不同網站。這不是行動時代最好的使用者體驗。這就是為什麼在準備好的發言一開始我就說，現在我們的 Top 1 結果中有 40% 可以滿足使用者的需求。而許多 Top 1 結果實際上都是結構化資料。這不是一個連結到第三方內容的網站。如果你看一下——在在線旅遊業，如果你想要查找有關特定酒店的信息，你通常不會去——從攜程這樣的在線代理商到酒店官方網站的網站，你實際上可以在攜程應用程序或攜程網站上找到有關用戶評論及其價格等各種信息的結構化數據。對於餐廳來說，如果你去大眾點評或美團，你也可以以結構化的方式找到各種相關資訊。您沒有被引導至該餐廳的官方網站。醫療保健也應該類似。我認為未來我們應該為醫療保健提供者提供結構化數據，以便消費者可以更輕鬆地瀏覽自己的資訊並做出選擇。這是一個過渡。轉型總是會影響營收。但從長遠來看，我認為這是一個三贏的局面。該平台具有更好的控制力，內容使用者可以以更透明的方式找到資訊並滿足他們的興趣，醫療保健提供者也可以從中獲得更好的轉換。

Yes, Natalie, your question was, what's the impact on Q4? Let me try to answer it this way. So when you look at our guidance, excluding spinoff, for Q4 right now, it's between 20% to 26%, and the midpoint 23%, right? When you look at Q3, for example, our actual result was 27%. So assuming we're trying to reach 27%, we're 44% off, 4% lower using our midpoint versus the Q3. So when you look at last year in Q4, we're talking about CNY 21 billion. So you're talking about maybe a little bit CNY 800 million light, right? So I can't break out for you the CNY 800 million, how much is medical, how much is all the other industries, what I can tell you is that the CNY 800 million lighter than what we would have thought we could do for Q4, assuming it's equivalent to the growth rate of Q3, is that it would be spread out between this health care initiative. And we think that it's probably going to be impacted by some other industry that we've already seen such as games, such as real estate, interior decoration, such as lifestyle, such as financial services and maybe a few others. So you can see CNY 800 million is not significant with our overall revenues when you have so many different industries and so many different policies impacting us, a little bit here, a little bit there, hard to really quantify at this point how much of each of these factors will be. We just think that overall, it should be around that range.

是的，娜塔莉，你的問題是，這對第四季有什麼影響？讓我嘗試這樣回答。因此，當您查看我們目前第四季的指導意見（不包括分拆）時，其成長率在 20% 到 26% 之間，中間值是 23%，對嗎？例如，當您查看第三季時，我們的實際結果是 27%。因此，假設我們試圖達到 27%，那麼我們將下降 44%，使用中點與第三季相比下降 4%。因此，當你看去年第四季時，我們談論的是 210 億元。所以您說的可能是 8 億人民幣左右，對嗎？所以我無法告訴你這 8 億人民幣中有多少是醫療行業，有多少是其他行業，我能告訴你的是，這 8 億人民幣比我們原計劃在第四季度做的要少，假設它相當於第三季度的增長率，那麼它將分攤到這項醫療保健計劃中。我們認為它可能會受到我們已經看到的其他一些行業的影響，例如遊戲、房地產、室內裝飾、生活方式、金融服務等等。所以你可以看到，8 億元對我們的整體收入來說並不重要，因為有這麼多不同的行業和這麼多不同的政策影響著我們，這裡一點，那裡一點，目前很難真正量化這些因素各自佔多大比例。我們只是認為整體來說應該在那個範圍內。

Got it. In the follow-up plan for copying this kind of a change to other top verticals?

知道了。後續計劃是否將這種變化複製到其他頂級垂直行業？

Eventually, yes. Right now we are focusing on the health care industry right now.

最終，是的。目前我們正專注於醫療保健產業。

But do recognize that this is a timing issue, Natalie, because, as Robin mentioned, this structured data has better conversion. The risk of structured data is initially when you change the format of that information, users have to get used to it. So in the front end, you might lose some, and you'll have some revenue impact because users are looking at this and they're not familiar with better quality information. But as they get used to it, in the back end, they're actually will have higher conversion rate. So it's a timing issue. So as we look at this medical maybe a few other quarters down the line and we see better conversion rates and so forth, we might go into other industries, but net-net, it doesn't mean that whenever we go into an industry, it's going to have a significant impact on our revenues. We'll have to see.

但是，娜塔莉，請認識到這是一個時間問題，因為正如羅賓所提到的，這種結構化資料具有更好的轉換效果。結構化資料的風險最初在於當你改變資訊的格式時，使用者必須習慣它。因此，在前端，您可能會損失一些，並且會對收入產生一些影響，因為用戶正在查看這些信息，而他們不熟悉質量更好的信息。但隨著他們逐漸習慣，在後端，他們實際上會有更高的轉換率。所以這是一個時間問題。因此，當我們展望未來幾季的醫療產業時，我們會看到更好的轉換率等等，我們可能會進入其他產業，但這並不意味著每當我們進入一個行業時，它都會對我們的收入產生重大影響。我們得拭目以待。

And presenters, we have the next question from the line of Jerry Liu from UBS.

主持人，下一個問題來自瑞銀的 Jerry Liu。

Yes, I just have 2 quick questions. The first one is when we look at the macro impact, the regulatory impact in the fourth quarter, are we assuming on a month-to-month basis some further deterioration from August to September to October? What would we see for the next few months? And then the second question is on smart mini programs. When should we expect some ramp in monetization? And when can we see that tailwind for the search and feed business?

是的，我只有兩個簡單的問題。第一個問題是，當我們觀察宏觀影響、第四季的監管影響時，我們是否認為從 8 月到 9 月到 10 月，情況會逐月進一步惡化？接下來的幾個月我們會看到什麼？第二個問題是關於智慧小程式。我們什麼時候可以期待貨幣化的成長？我們什麼時候才能看到搜尋和資訊流業務的順風呢？

Okay, Jerry, I'll answer the first one. With regards to how will we do a forecast for our Q4, we try to gather the information from our sales team and also from our channel. So it's not so much month-to-month. But overall, as Robin mentioned, part of it is policy that we are seeing, so that would be on a historical trend. Another is really general sentiment of our customers, of our channels and so forth. So the total, the totality of that assessment goes into our Q4. So I would say based on the information that we have right now, this is what we think the impact would be for Q4.

好的，傑瑞，我來回答第一個問題。關於我們如何對第四季度進行預測，我們嘗試從銷售團隊和管道收集資訊。所以這並不是每月計算的。但總體而言，正如羅賓所提到的，部分原因是我們正在看到的政策，因此這將是一個歷史趨勢。另一個是我們的客戶、通路等的普遍情緒。因此，總體而言，該評估的全部內容都計入了我們的第四季度。因此，根據我們目前掌握的信息，我認為這會對第四季度產生影響。

On the smart mini program, you can think of it as the mobile version of websites for native apps. Itself, it's not a business model, it's not a new business model, it's an enhancement to the existing Baidu mobile ecosystem. People get better experiences when they're navigating around the mini program. But having said that, I think that this will help enhance monetization because -- and improve conversion because the users have better experiences, when they land on a smart mini program. And the user accounts are typically connected to the Baidu account and the mini programs user account, and things like payment are a seamless experience and even better that because of our strength in technology, we can find the best match between the user query or the user intent and the smart mini programs offerings. So we have the best matching and smart mini programs to ensure better user experience and better conversion. So longer term, this will enhance our monetization capability. But itself, it's not a new business model.

在智慧小程式上，你可以把它看作是原生應用程式網站的行動版本。它本身並不是一種商業模式，也不是一種新的商業模式，而是對現有百度移動生態系統的一種增強。人們在使用小程式時可以獲得更好的體驗。但話雖如此，我認為這將有助於提高貨幣化，並提高轉換率，因為當用戶進入智慧小程式時，他們會有更好的體驗。用戶帳戶通常與百度帳戶和小程式用戶帳戶相連，並且支付等操作都是無縫體驗，甚至更好的是，由於我們的技術實力，我們可以找到用戶查詢或用戶意圖與智能小程式產品之間的最佳匹配。因此，我們擁有最佳匹配和智慧的小程序，以確保更好的用戶體驗和更好的轉換。因此從長遠來看，這將增強我們的貨幣化能力。但它本身並不是一個新的商業模式。

Yes, just to add a little bit, Jerry, the assumption behind this is that a lot of search links today the HTML5, right? So someone's searching, directing traffic to the other sites whereas what Robin just described, it allows you to have a close looped transaction within the app. So if you're in Baidu App, you search within and you go to a mini program, you can actually transact, do all the things you want to do with that particular mini program, and you come back to the Baidu App. So it's still within the whole Baidu App ecosystem, you're not really leaving to another site. So that user experience, it's seamless, it allows you to do a transaction. It also allows the users to go back and forth in different areas of Baidu App.

是的，Jerry，我再補充一點，這背後的假設是，今天很多搜尋連結都是 HTML5，對嗎？因此，有人在搜索，將流量引導至其他網站，而正如 Robin 剛才所描述的，它允許您在應用程式內進行閉環交易。因此，如果您在百度應用程式中，您可以在其中進行搜尋並進入一個小程序，您實際上可以進行交易，用該特定的小程式做所有您想做的事情，然後返回百度應用程式。因此它仍然在整個百度應用生態系統內，你並沒有真正離開到另一個網站。因此，用戶體驗是無縫的，它允許您進行交易。它還允許用戶在百度應用程式的不同區域之間來回切換。

And the next question is from the line of Ms. Karen Chan from Jefferies.

下一個問題來自 Jefferies 的 Karen Chan 女士。

So my first question is whether management can give us an update on the revenue contribution from mobile news feed app in the third quarter. And given we saw a very strong quarter-over-quarter growth of 20% on average in '18, wondering how we should think about going into 2019 given the current visibility. And also, just a follow-up question on, can management size the approximate revenue contribution from health care currently compared to a year ago?

因此，我的第一個問題是管理層是否可以向我們提供有關第三季度行動新聞推送應用程式的收入貢獻的最新資訊。鑑於我們看到 2018 年季度環比增長非常強勁，平均增長率為 20%，那麼在目前的情況下，我們應該如何考慮進入 2019 年？另外，還有一個後續問題，管理階層能否估算出目前醫療保健領域與一年前相比對收入的大致貢獻？

Karen, yes, so the question was feed revenue. When you look at our feed revenue, what we disclosed last quarter and this quarter a little bit more is that, historically, last quarter, feed plus all the AI businesses were less than 20% [of Core revenue excluding spinoff] (corrected by company after the call). So this quarter, we see it up a few more percentages, now making up over 20 some percent feed plus the AI businesses. Yes, and then with regards to health care revenues and so forth, [they are about 30% of search top up basis, or mid-teens of Baidu revenues, on a GAAP basis] (corrected by company after the call), and it's been declining steadily over the last few quarters.

凱倫，是的，所以問題是飼料收入。當您查看我們的資訊流收入時，我們上個季度和本季度披露的資訊稍微多一點，從歷史上看，上個季度，資訊流加上所有 AI 業務的收入不到（不包括分拆的核心收入的）20%（公司在電話會議後進行了更正）。因此，本季度，我們看到它又上升了幾個百分點，現在飼料加上人工智慧業務佔比超過 20%。是的，然後關於醫療保健收入等等，[它們約佔搜尋充值收入的 30%，或百度收入的十幾個百分點，基於 GAAP]（公司在電話會議後進行了更正），並且在過去幾個季度中一直在穩步下降。

Ladies and gentlemen, we are now approaching the end of the conference call. Thank you for your participation in today's conference. You may now disconnect. Good day.

女士們、先生們，我們的電話會議即將結束。感謝大家參加今天的會議。您現在可以斷開連線。再會。