百度 (BIDU) 2021 Q1 法說會逐字稿

Hello, and thank you for standing by for Baidu's First Quarter 2021 Earnings Conference Call. (Operator Instructions) Today's conference is being recorded. If you have any objections, you may disconnect at this time.

您好，感謝您參加百度2021年第一季財報電話會議。 （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 the meeting over to your host for today's conference, Juan Lin, Baidu's Director of Investor Relations.

現在，我想將會議交給今天的會議主持人，百度投資者關係總監林娟。

Hello, everyone, and welcome to Baidu's First Quarter 2021 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2021年第一季業績電話會議。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, our Co-Founder and CEO; Herman Yu, our CFO; and Dou Shen, our EVP in charge of search and feed. After our prepared remarks, we will hold a Q&A session.

今天的電話會議由我們的共同創辦人兼執行長李彥宏主持；我們的財務長 Herman Yu；還有負責搜尋和資訊流的執行副總裁竇深。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. For detailed discussions of these risks and uncertainties, please refer to our latest annual report and other documents filed with the SEC and Hong Kong Exchange. 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，這些風險和不確定性可能導致實際結果與我們目前的預期有重大差異。有關這些風險和不確定性的詳細討論，請參閱我們向美國證券交易委員會和香港交易所提交的最新年度報告和其他文件。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 includes discussion 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 call will also be available on Baidu's IR website.

提醒一下，本次會議正在錄製中。此外，本次電話會議的網路直播也將在百度投資者關係網站上提供。

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, everyone. We delivered strong results in the first quarter with Baidu core revenue growing 34% year-over-year to RMB 20.5 billion. Our business was strong across the board, particularly in our new AI business, including cloud, smart transportation and intelligent driving. Non-advertising revenues within Baidu Core rose 70% year-over-year to RMB 4.2 billion, accounting for 21% of Baidu Core.

大家好。我們在第一季取得了強勁的業績，百度核心營收年增 34%，達到 205 億元人民幣。我們的業務全面強勁，尤其是我們的新人工智慧業務，包括雲端、智慧交通和智慧駕駛。百度核心非廣告收入年增70%至42億元，佔百度核心收入的21%。

China held the 2-session annual congressional gathering in early March, and technology innovation was repeatedly mentioned. It was emphasized that never in the history of China had innovation been more important to the development of China. China's pursuit of innovation through technology to boost long-term growth and productivity will further expand the use of AI.

中國於3月初召開兩會，科技創新被多次提及。強調創新對中國發展的重要性在中國歷史上從未如此重要。中國追求透過技術創新來促進長期成長和生產力，這將進一步擴大人工智慧的應用。

We have witnessed AI platforms or AI-powered infrastructure enabling applications, disrupting markets. For example, we entered the smart device market 3 years ago. Despite 2 dominant market leaders with strong manufacturing and distribution capabilities, we leveraged Baidu's leading AI technology, including natural language processing and speech recognition to make DuerOS smart assistant understand humans better. This, in turn, has resulted in making Xiaodu Smart Display #1 in shipment globally. We further changed the market dynamics by introducing smart devices over RMB 1,000 compared to the sub RMB 100 devices that our peers focused on.

我們見證了人工智慧平台或人工智慧驅動的基礎設施支援應用程式並顛覆市場。例如我們3年前就進入了智慧型設備市場。儘管有兩家擁有強大製造和分銷能力的市場領導者，我們仍利用百度領先的人工智慧技術，包括自然語言處理和語音識別，使 DuerOS 智慧助理更好地理解人類。這使得小度智慧顯示器成為全球出貨量第一的品牌。我們透過推出價格超過 1,000 元人民幣的智慧設備（而同行則專注於 100 元人民幣以下的設備）進一步改變了市場動態。

AI-powered platforms are changing the technology landscape. New vehicles sold are being equipped with sensors and AI capabilities, both internally and externally, to provide intelligent driving and in-vehicle infotainment. Apollo serves as the AI platform that powers the 2 critical functions of intelligent vehicles. Apollo autonomous driving is making new breakthroughs, and over 1.5 million vehicles have been sold in China pre-installed with DuerOS for auto. Installation of DuerOS for auto saw continued strength in the first quarter, growing over 100% year-over-year.

人工智慧平台正在改變技術格局。新售出的車輛配備了內部和外部感測器和人工智慧功能，以提供智慧駕駛和車載資訊娛樂。 Apollo作為人工智慧平台，為智慧汽車的兩大關鍵功能提供支援。 Apollo自動駕駛持續取得新突破，中國預載DuerOS汽車作業系統的汽車銷量已超過150萬輛。第一季度，DuerOS汽車安裝量持續強勁，年成長超過100%。

According to IHS, over 50% of the vehicles sold in China this year are expected to be connected, and the percentage is expected to rise. We are excited to be deploying V2X vehicle-to-road infrastructure across China, which enables connected vehicles to be more intelligent. Just as the continued upgrade of telecom networks since 2G has enabled mobile phones to become better and smarter, we believe Apollo smart transportation infrastructure can be continuously upgraded to make connected vehicles more convenient, safer, greener and in general, more intelligent over time.

根據IHS預測，今年中國銷售的汽車中，預計有超過50%是連網汽車，而且這一比例預計還會上升。我們很高興能夠在中國各地部署 V2X 車路基礎設施，這將使連網汽車更加智慧。正如2G以來電信網路的不斷升級使得手機變得更好、更智慧一樣，我們相信Apollo智慧交通基礎設施可以不斷升級，使連網汽車隨著時間的推移變得更加便捷、更安全、更環保，並且總體上更加智慧。

As we build Apollo V2X infrastructure in cities across China, we are getting requests to expand our smart transportation offering through greater use of AI into MaaS and solutions to digitize public parking and highways. The expansion of Apollo smart transportation beyond V2X into different facets of transportation in metropolitan and highways leading into them will create a powerful network effect when these solutions are integrated in the synchronized transportation network powered by Baidu Brain.

隨著我們在中國各個城市建設 Apollo V2X 基礎設施，我們收到了很多請求，希望能夠透過更多地將人工智慧應用於 MaaS 以及提供數位公共停車場和高速公路的解決方案來擴展我們的智慧交通服務。阿波羅智慧交通將超越V2X，擴展到大都市和通往大都市的高速公路等不同交通領域，當這些解決方案融入百度大腦驅動的同步交通網絡時，將產生強大的網路效應。

Our development of PaaS for different industries and empowering our ad customers with marketing cloud are further examples of how AI platform are changing industry dynamics, from digital transformation to mobile Internet. On the latter, we have a big opportunity to expand online marketing, from selling traffic to empowering merchants with AI-powered marketing cloud and improved search-to-transaction conversion. Our strong Internet foundation coupled with growing user engagement provide us with another driver for non-advertising growth.

我們為不同行業開發 PaaS 並透過行銷雲為我們的廣告客戶提供支持，這是 AI 平台如何改變行業動態（從數位轉型到行動互聯網）的進一步例子。在後者方面，我們有很大機會擴大網路行銷，從銷售流量到為商家提供人工智慧行銷雲和改進的搜尋到交易轉換。我們強大的網路基礎加上不斷增長的用戶參與度為我們提供了非廣告成長的另一個動力。

Turning to Q1 operational highlights. Our AI cloud continues to see strong adoption due to our holistic approach, including a large developer community, self-designed chips, best-in-class machine learning services and large AI patent portfolio. With increasing AI adoption in China, Baidu PaddlePaddle has become a top [3] (corrected by company after the call) deep learning framework globally in terms of pull requests, alongside with Facebook PyTorch and Google TensorFlow, according to GitHub.

談到第一季的營運亮點。由於我們採取了整體方法，包括龐大的開發者社群、自主設計的晶片、一流的機器學習服務和龐大的人工智慧專利組合，我們的人工智慧雲端繼續被廣泛採用。根據 GitHub 的數據，隨著中國人工智慧的應用日益普及，百度 PaddlePaddle 已成為全球頂級 [3]（電話會議後公司更正）深度學習框架，與 Facebook PyTorch 和 Google TensorFlow 並列。

We have spent years in developing AI chips to optimize workload and improve cloud cost structure. With external demand for GPU chips, Baidu Kunlun completed its first round of funding at a post-money valuation of USD 2 billion in April this year.

我們花費數年時間開發人工智慧晶片，以優化工作負載並改善雲端成本結構。在外部GPU晶片需求旺盛的背景下，百度崑崙今年4月完成首輪融資，投後估值20億美元。

Baidu EasyDL, a simple-to-use machine learning service for non-developers, was really #1 in terms of usage in China per IDC, topping the list for the second time. Customers are telling us that they are choosing Baidu due to us having the largest AI patent portfolio in China. Baidu's decade-long experience with AI technology and our large patent portfolio give customers the confidence that we can deliver end-to-end cloud solutions with PaaS -- and PaaS that meet their needs.

百度 EasyDL 是一款針對非開發人員的簡單易用的機器學習服務，根據 IDC 的數據，其在中國的使用率排名第一，這是它第二次榮登榜首。客戶告訴我們，他們選擇百度是因為我們擁有中國最大的人工智慧專利組合。百度在人工智慧技術領域長達十年的經驗和我們龐大的專利組合讓客戶相信我們能夠透過 PaaS 提供端到端的雲端解決方案——以及滿足他們需求的 PaaS。

Last quarter, we illustrated AI solutions that were scalable and replicable across different industries such as our automated AI call center. We are also seeing customers who implement Baidu AI PaaS return for repeat purchases. For example, we helped a major retail bank in China implement Baidu AI PaaS, which has led to 5 follow-on purchases, including application to automate customer service and customer loan approval and the recent purchase of a private cloud service.

上個季度，我們展示了可擴展且可在不同行業複製的人工智慧解決方案，例如我們的自動化人工智慧呼叫中心。我們也看到實施百度 AI PaaS 的客戶再次購買。例如，我們幫助中國一家大型零售銀行實施了百度AI PaaS，並促成了5項後續購買，包括自動化客戶服務和客戶貸款審批的應用程式以及最近購買的私有雲服務。

In the media sector, we partnered with online arm of China's largest TV network, CCTV, to implement Baidu AI PaaS with capabilities to automate video clip creation and tagging from live broadcasting and use smart assistant to quickly locate desired video content. During the 2 sessions, we enabled CCTV.com to simultaneously interview congressional meeting participants with AI reporters, powered by Baidu Brain and to timely share these interviews on the Internet.

在媒體領域，我們與中國最大的電視網絡中央電視台的網路部門合作，實施百度AI PaaS，該功能可以自動創建和標記直播視訊片段，並使用智慧助理快速找到所需的視訊內容。兩會期間，我們啟用了中央電視台網，利用百度大腦的人工智慧記者同步採訪兩會與會人員，並及時在網路上分享訪談內容。

Smart transportation is becoming a way to digitize the transportation industry in China to improve traffic condition and road safety and reduce carbon emission. Our V2X vehicle-to-road infrastructure has helped reduce traffic congestion time by 20% to 30%.

智慧交通正在成為中國交通運輸產業數位化的一種方式，以改善交通狀況和道路安全並減少碳排放。我們的 V2X 車到道路基礎設施已幫助將交通擁堵時間減少了 20% 至 30%。

Chongqing, which implemented Apollo V2X last year and opened the door for Apollo into Western China, reengaged with us this year to make their smart transportation infrastructure 5G enabled, laying the foundation for future rollout of robotaxi ride hailing. Chengdu, the capital of Sichuan and a leader in science and technology development, recently partnered with Apollo to implement V2X, too.

重慶去年實施了 Apollo V2X，為 Apollo 進入中國西部打開了大門。今年，重慶再次與我們合作，使其智慧交通基礎設施 5G 化，為未來推出自動駕駛計程車叫車服務奠定基礎。四川省會成都是科技發展的領先城市，最近也與阿波羅合作實施 V2X。

Turning to intelligent driving. Since its founding 8 years ago, Apollo has accumulated over 6 million miles of level 4 autonomous driving testing miles on the road and over 600 million miles of simulated testing. Apollo continues to be the leader in autonomous driving in China with our early investment, open platform strategy and comprehensive technology infrastructure. With Apollo autonomous driving can operate -- while Apollo autonomous driving can operate independently on vehicle sensors, it is uniquely empowered by Baidu's HD maps, our AI cloud and Apollo smart transportation. The comprehensive data set and integration with city smart transportation network, we believe, will enable Apollo to offer better driving behavior and reduce incident rate.

轉向智能駕駛。阿波羅成立8年來，已累積完成4級自動駕駛道路測試超過600萬英里，模擬測試超過6億英里。 Apollo憑藉著早期的投資、開放的平台策略和完善的技術基礎設施，持續在中國自動駕駛領域保持領先地位。借助 Apollo 自動駕駛可以運行——Apollo 自動駕駛雖然可以獨立於車輛感測器運行，但它是由百度的高清地圖、我們的人工智慧雲和 Apollo 智慧交通獨特支援的。我們相信，全面的數據集和與城市智慧交通網絡的整合將使 Apollo 能夠提供更好的駕駛行為並降低事故發生率。

Following the opening up of highway testing for autonomous driving in January, Apollo received the permit to operate at night and under special weather condition on public roads in Beijing. Apollo also received permits to pilot fully autonomous driving in Beijing, Cangzhou and Changsha.

繼今年1月開放自動駕駛高速公路測試後，Apollo又獲得了在北京公共道路夜間和特殊天氣條件下運營的許可。阿波羅也獲得了在北京、滄州和長沙試點全自動駕駛的許可。

Apollo Go, China's first fully autonomous ride hailing service with no one in the driver's seat, is now open to the public at the Shougang Park, a Beijing 2022 Winter Olympics site. Rides are priced at RMB 30 each. In March, Apollo Go began to charge the robotaxi ride hailing in Cangzhou based on the distance traveled starting with a minimum fare similar to regular ride hailing.

Apollo Go 是中國首個無人駕駛的全自動駕駛叫車服務，目前已在北京 2022 年冬奧會舉辦地首鋼園區向公眾開放。每次搭乘票價為30元人民幣。今年3月，Apollo Go開始在滄州對自動駕駛計程車叫車實施按行駛距離收費，最低票價與一般叫車類似。

Jidu Auto, an intelligent EV company established in partnership with Geely, has appointed Xia Yiping as CEO. Yiping previously served as CTO at Mobike and worked various positions at Fiat Chrysler and Ford. We welcome Yiping to the Baidu family and look forward to his contribution to innovate the smart EV sector.

與吉利合作成立的智慧電動車公司極度汽車已任命夏一平為執行長。易平曾擔任摩拜單車首席技術官，並在菲亞特克萊斯勒和福特擔任多個職位。我們歡迎易平加入百度大家庭，並期待他為智慧電動車領域的創新做出貢獻。

On Apollo Self Driving, GAC Group joins Apollo's network of over 10 leading local and multinational automakers to install ASD services in its new vehicles. According to China Insights Consultancy, a market research and consulting firm, the TAM for Apollo intelligent driving, which includes robotaxi ride hailing, EVs and self-driving services for automakers, will reach USD 467 billion, almost 9x the size of our advertising TAM of $53 billion, in 2025. Apollo platform powers Jidu and other automakers as well as Apollo Go robotaxi. It is in a unique position to be well funded and widely adopted. Such coveted position has earned Baidu the only Chinese company selected for the leader category in autonomous driving by Guidehouse Insights, previously known as Navigant Research, for the second consecutive year.

在阿波羅自動駕駛方面，廣汽集團加入了阿波羅由 10 多家領先的本地和跨國汽車製造商組成的網絡，在其新車中安裝 ASD 服務。根據市場研究和諮詢公司灼識諮詢的預測，到 2025 年，Apollo 智慧駕駛的潛在市場規模（包括自動駕駛計程車叫車、電動車和為汽車製造商提供的自動駕駛服務）將達到 4,670 億美元，幾乎是我們 530 億美元廣告潛在市場規模的 9 倍。 Apollo 平台為極度等汽車製造商以及 Apollo Go 自動駕駛計程車提供支援。它具有獨特的優勢，資金充足，被廣泛採用。這一令人垂涎的地位使百度成為唯一一家連續第二年被 Guidehouse Insights（前身為 Navigant Research）評選為自動駕駛領域領導者的中國公司。

Turning to mobile ecosystem. In March, Baidu app MAUs reached 558 million. Creators on Baijiahao more than doubled, and the number of Smart Mini Programs grew 74% from a year ago. Our AI building blocks, coupled with our marketing cloud, continue to attract more third-party content and service providers onto our platform, which improves user experience.

轉向移動生態系。 3月份，百度App月活躍用戶數達5.58億人。百家號創作者數量較去年同期增加一倍多，智慧小程式數量較去年同期成長74%。我們的人工智慧建構模組與我們的行銷雲結合，持續吸引更多第三方內容和服務提供者加入我們的平台，從而改善用戶體驗。

Merchants are adopting our direct-to-consumer model to get closer to their customers. Traditional e-commerce tends to accentuate its platform over the strengthening of individual brands and merchants. Baidu, on the other hand, empowers merchants to build their own online presence and grow their brands by leveraging our social and live streaming capabilities, e-commerce features and AI tools from our marketing cloud.

商家正在採用我們的直接面向消費者的模式來拉近與客戶的距離。傳統電商較注重平台的建設，較少強調單一品牌和商家的強化。另一方面，百度則利用我們的行銷雲端中的社交和直播功能、電子商務功能和人工智慧工具，幫助商家建立自己的線上形象並發展他們的品牌。

Our AI building blocks, coupled with marketing cloud, help merchants acquire customers, better understand them, engage with them and perform lifetime customer management. Such search-to-transaction closed-loop experience, improved user stickiness resulting in daily logged-on users on Baidu App reaching over 75%. That's up 16 points from a year ago.

我們的人工智慧建置模組與行銷雲端結合，可協助商家獲取客戶、更了解客戶、與客戶互動並進行終身客戶管理。這種從搜尋到交易的閉環體驗，提升了用戶黏性，百度App日均登入用戶數達到75%以上。比一年前上升了 16 個百分點。

On social and interest-based communities, our search users sometimes have questions on their search results. With professional content providers like attorneys and designers opening enterprise accounts on Baijiahao, they are able to respond to search queries and interact directly with users. 8% of our top 1 search results now enable users to ask questions and interact with original content provider.

在社交和基於興趣的社群中，我們的搜尋用戶有時會對他們的搜尋結果產生疑問。律師、設計師等專業內容提供者在百家號上開設企業帳戶，可以回應搜尋查詢並直接與使用者互動。現在，我們 8% 的熱門搜尋結果允許用戶提問並與原始內容提供者互動。

Baidu Health has attracted approximately 300,000 doctors and medical experts to provide in-depth authoritative content and online consultation to consumers. As our users adapt to more services on Baidu, we see a great opportunity to offer non-ad services of our own to meet the need of our large user base. When you couple the robust growth of our AI business, non-advertising revenue could possibly exceed advertising revenue within Baidu Core in the next 3 years.

百度健康已吸引約30萬名醫生和醫學專家，為消費者提供深入權威的內容和線上諮詢。隨著我們的用戶適應百度的更多服務，我們看到了提供自己的非廣告服務以滿足龐大用戶群需求的絕佳機會。加上我們人工智慧業務的強勁成長，未來 3 年內百度核心的非廣告收入可能會超過廣告收入。

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

說完這些，讓我把電話轉給赫爾曼，讓他介紹我們的財務亮點。

Thank you, Robin. Hello, everyone. Welcome to Baidu's First Quarter 2021 Call. All monetary amounts used in my discussion are in renminbi, unless otherwise stated.

謝謝你，羅賓。大家好。歡迎參加百度2021年第一季電話會議。除非另有說明，否則我在討論中使用的所有貨幣金額均為人民幣。

In March, we listed on the Hong Kong Stock Exchange under ticker number 9888, raising USD 3.1 billion. Two weeks later, we were added to the Hang Seng TECH Index, the Composite Index, and the China Enterprise Index. Listing closer to our user base with strong brand and unique profile as a leading AI company with strong Internet foundation generates incremental interest for Baidu and increases our stock liquidity.

今年3月，我們在香港證券交易所上市，股票代號為9888，融資31億美元。兩週後，我們被納入恆生科技指數、綜合指數和中國企業指數。作為一家擁有強大網路基礎的領先人工智慧公司，憑藉強大的品牌和獨特的形象更貼近我們的用戶群上市，將為百度帶來越來越多的興趣，並提高我們的股票流動性。

Our retail tranche during the Hong Kong listing was 111x oversubscribed. Our daily trading liquidity on the 2 exchanges in aggregate averaged 8.4 million shares last week, ADS adjusted, and approximately USD 1.6 billion in amount compared to, say, 2.8 million average daily traded shares last September or approximately USD 350 million in amount. That is an increase of 4.5x in daily trading amount on Baidu over the past 7 months.

我們在香港上市期間的零售部分獲得了111倍的超額認購。上週，我們在兩家交易所的每日交易流動性總計平均為 840 萬股（以美國存託憑證調整後），金額約為 16 億美元，而去年 9 月的每日平均交易量為 280 萬股，金額約為 3.5 億美元。這意味著過去 7 個月百度的每日交易量增加了 4.5 倍。

Sustainability is an important focus for Baidu. We have worked diligently on ESG and were upgraded twice by MSCI last year. Greenpeace, a global environmental organization, published a report on China's cloud and data center companies, ranked Baidu top 3 in cloud services and #1 in the utilization of renewable energy, based on their April report entitled Clean Cloud: Tracking Renewable Energy Use in China's Tech Industry.

永續發展是百度關注的重點。我們在 ESG 方面一直努力，去年獲得了 MSCI 兩次升級。全球環保組織綠色和平組織4月發布的《清潔雲：追蹤中國科技產業的再生能源使用情況》報告顯示，百度在雲端服務領域名列前三，在再生能源利用領域名列第一。

Turning to financial highlights. For the first quarter of 2021, Baidu revenue reached RMB 28.1 billion or USD 4.3 billion, up 25% year-over-year, driven by the growth of Baidu Core, whose revenue reached RMB 20.5 billion or USD 3.1 billion, up 34% year-over-year. Non-advertising grew 70% year-over-year, accounting for 21% of Baidu Core's revenue.

轉向財務亮點。 2021 年第一季度，百度營收達到人民幣 281 億元（約 43 億美元），年增 25%，這得益於「百度核心」的成長，其營收達到人民幣 205 億元（約 31 億美元），年成長 34%。非廣告收入年增70%，佔百度核心收入的21%。

Let me give you more color on each area. AI cloud was 2.8 billion, up 55% year-over-year, and we expect our AI cloud growth rate to accelerate in the future. Our cloud growth benefited from customers from the Internet, media, financial services and other high-tech sectors as well as from the strong adoption of Apollo smart transportation by cities seeking to modernize, digitize transportation and network vehicles.

讓我給你更詳細地介紹一下每個區域。 AI雲28億，年增55%，我們預期未來我們的AI雲增速還會加快。我們的雲端運算成長受益於來自互聯網、媒體、金融服務和其他高科技領域的客戶，以及尋求現代化、數位化交通和網路車輛的城市對阿波羅智慧交通的大力採用。

Intelligent driving and OGI revenue also grew rapidly. Apollo Self Driving or ASD, though a small base, grew over 5x from last year. ASD revenue is booked upon vehicle shipment, and revenue is recognized ratably over the contract period if the services provided over the air, in other words upgraded regularly.

智慧駕駛和OGI收入也快速成長。阿波羅自動駕駛（ASD）雖然基數較小，但比去年增加了 5 倍以上。 ASD 收入在車輛裝運時入賬，如果服務是透過無線方式提供的，即定期升級，則收入在合約期間內按比例確認。

Revenue for Xiaodu smart devices and services saw robust double-digit growth in the first quarter. Online marketing revenue was up 27% year-over-year, driven by Baidu App growing over 30% year-over-year. Most of our top ad vehicles performed well. CPM was up double-digits.

小度智慧型設備及服務收入在第一季實現了強勁的兩位數成長。網路行銷收入較去年同期成長 27%，主要得益於百度應用程式較去年同期成長超過 30%。我們的大多數頂級廣告載體都表現良好。 CPM 上漲了兩位數。

Managed Page grew -- Managed Page reached 35% of Baidu Core online marketing revenue, and 4/5 of our advertisers have adopted Baidu marketing cloud, which is the one-stop shop to purchase online marketing, build audience and leverage Baidu AI to enable user lifetime management. The strong adoption of our Managed Page and marketing cloud shows our customers' preference to move from managing their own website to operating their hosted sites on Baidu to better leverage Baidu's advanced technology and tools to improve closed-loop transactions.

託管頁面增長——託管頁面佔百度核心線上行銷收入的 35%，我們 4/5 的廣告商已經採用了百度行銷雲，這是購買線上行銷、建立受眾並利用百度 AI 實現用戶終身管理的一站式商店。我們託管頁面和行銷雲的廣泛採用表明我們的客戶傾向於從管理自己的網站轉向在百度上運營其託管網站，以更好地利用百度的先進技術和工具來改善閉環交易。

iQIYI revenue reached RMB 8 billion, up 4% year-over-year, and its net loss is narrowed to RMB 1.3 billion, from RMB 2.9 billion last year. iQIYI subscribers reached 105.3 million, serving as a strong foundation to support their over 50 in-house studios and produce entertainment blockbuster originals.

愛奇藝營收達80億元人民幣，年增4%；淨虧損由去年的29億元收窄至13億元。愛奇藝付費會員規模達1.053億，為支撐其50多個自有工作室、製作原創娛樂大片奠定了堅實的基礎。

Cost of revenues was CNY 15 billion, up 2% year-over-year, primarily due to an increase in TAC and cost of goods sold, offset by a decrease in content costs and amortization impairment of intangible assets. Baidu Core's cost of revenues increased 15% year-over-year as tech revenues increased while iQIYI's cost of revenue decreased 10% year-over-year.

營業成本為人民幣 150 億元，年增 2%，主要由於總成本和銷售成本增加，但內容成本和無形資產攤提減損的減少抵消了這一增長。由於技術收入增加，百度核心的收入成本年增 15%，而愛奇藝的收入成本較去年同期下降 10%。

Operating expenses were CNY 10.3 billion, up 25% year-over-year, primarily due to an increase in channel spending and promotional expenses as well as R&D-related personnel expenses. SG&A for Baidu Core was up 58%, partially reflecting the ramp-up of our sales force, especially to support the pipeline of our new AI business as we look out the next 6 to 12 months. In addition, we accrued for bad debt allowance on new AI business, which holds accounts receivable unlike our online marketing which generates revenue mostly on a prepaid basis.

營業費用為人民幣103億元，年增25%，主要由於通路支出和促銷費用以及研發相關人員費用的增加。百度核心的銷售、一般及行政費用上漲了 58%，部分反映了我們銷售團隊的壯大，特別是為了支持我們未來 6 到 12 個月的新人工智慧業務。此外，我們也對新的人工智慧業務提列了壞帳準備，該業務持有應收帳款，而我們的線上行銷則主要以預付款方式產生收入。

Non-GAAP operating income for Baidu and Baidu Core were CNY 4.4 billion and CNY 5.1 billion or USD 773 million, respectively. Non-GAAP operating margin for Baidu Core was 25%. Adjusted EBITDA for Baidu and Baidu Core were CNY 5.9 billion and CNY 6.5 billion or USD 990 million, respectively. Adjusted EBITDA margin for Baidu Core was 32% compared to 30% last year.

百度和百度核心的非美國通用會計準則營業收入分別為 44 億元和 51 億元人民幣（約 7.73 億美元）。百度核心的非美國通用會計準則營業利益率為25%。百度和百度核心的調整後 EBITDA 分別為 59 億元和 65 億元（約 9.9 億美元）。百度核心的調整後 EBITDA 利潤率為 32%，去年同期為 30%。

Cash and short-term investments for Baidu and Baidu Core as of March 31, 2021, were CNY 172.9 billion and CNY 159.6 billion or USD 24.4 billion, respectively. Free cash flow for Baidu and excluding iQIYI were CNY 2.6 billion and CNY 4 billion or USD 615 million, respectively. Baidu Core had approximately 34,000 full-time employees as of March 31, 2021, up 18% from last year.

截至 2021 年 3 月 31 日，百度和百度核心的現金和短期投資分別為 1,729 億元人民幣和 1,596 億元或 244 億美元。百度和不包括愛奇藝的自由現金流分別為人民幣 26 億元和人民幣 40 億元或 6.15 億美元。截至2021年3月31日，百度核心約有3.4萬名全職員工，較去年同期成長18%。

Turning to second quarter guidance. For the second quarter of 2021, Baidu expects revenue to be between CNY 29.7 billion or USD 4.5 billion and CNY 32.5 billion or USD 5 billion, representing a growth rate between 14% and 25% year-over-year, which assumes that Baidu Core will grow between 20% and 33% year-over-year. This guidance does not give any potential contribution from the acquisition of YY Live. The above forecast reflects our current and preliminary view, which is subject to substantial uncertainty.

轉向第二季度指引。 2021年第二季度，百度預計營收在297億元人民幣（約45億美元）至325億元人民幣（約50億美元）之間，年增14%至25%，其中假設「百度核心」年增20%至33%。該指引並未給予收購 YY Live 的任何潛在貢獻。上述預測反映了我們目前的初步觀點，具有很大的不確定性。

Before I turn the call back to the operator, let me summarize our first quarter results. We continue to see strong momentum in our business, powered by our leading AI. Non-advertising revenue grew 70% from last year, accounting for over 1/5 of Baidu Core revenue. China's goal to drive innovation through technology will serve as a tailwind for our new AI business.

在我將電話轉回接線生之前，請容許我總結一下我們第一季的業績。在我們領先的人工智慧的推動下，我們的業務繼續呈現強勁勢頭。非廣告收入較去年同期成長70%，佔百度核心收入的五分之一以上。中國透過科技推動創新的目標將為我們新的人工智慧業務帶來助力。

Embarking on the digitalization of transportation and connected vehicles is like investing in a new telecom network to drive economic growth and productivity except, this time, it is on a transportation network and the connected computers are smart vehicles rather than the smartphones. Transportation is 16% of Chinese economy. Thus, AI platforms that power smart transportation, autonomous driving and in-vehicle infotainment, working in tandem, can bring incredible operating efficiencies and convenience as well as improved traffic safety, reduced carbon emission for the transportation sector.

著手實現交通和連網汽車的數位化就像投資一個新的電信網路來推動經濟成長和生產力，只不過這次是交通網絡，連網的電腦是智慧汽車而不是智慧型手機。交通運輸佔中國經濟的16%。因此，支援智慧交通、自動駕駛和車載資訊娛樂的人工智慧平台協同工作，可以為交通運輸產業帶來令人難以置信的營運效率和便利性，並提高交通安全性，減少碳排放。

Apollo autonomous driving continues to be the leader in China, with fully autonomous ride hailing open to the public in Beijing. Apollo Go ride hailing is now available to the public in 3 cities. We are quite encouraged that Apollo Go ride hailing is gradually permitted to charge a fee, for example, in Cangzhou as well as in Beijing.

Apollo自動駕駛持續在中國保持領先地位，全自動駕駛叫車服務在北京向公眾開放。 Apollo Go 叫車服務現已在 3 個城市對外開放。我們非常高興看到Apollo Go叫車逐漸被允許收費，例如在滄州和北京。

Over 10 domestic and multinational automakers have signed up with Apollo to install ASD in their new vehicles. In recognition by the other industry, to partner with Apollo is the preferred choice versus committing to heavy investment in autonomous driving for the next decade or maybe 2. Apollo's open platform and diversified monetization to support autonomous driving through ASD, Jidu Auto and Apollo Go ride hailing put Apollo in a unique position to be well funded and well -- widely adopted.

超過 10 家國內外汽車製造商已與 Apollo 簽約，為其新車安裝 ASD。在其他行業的認可後，與 Apollo 合作是優先選擇，而不是在未來十年或二十年對自動駕駛進行大量投資。 Apollo 的開放平台和透過 ASD、極度用車和 Apollo Go 叫車服務支援自動駕駛的多元化貨幣化使 Apollo 處於獨特的地位，可以獲得充足的資金並廣泛採用。

IDC ranks Baidu #1 in autonomous solution for public cloud. By focusing on AI PaaS, our AI cloud is differentiated in the market. We are seeing the implementation of our AI PaaS drawing repeat purchases. And over the long run, we expect our AI cloud business to have higher margins as we build on our PaaS and SaaS business compared to pure IaaS players.

IDC 將百度評為公有雲自主解決方案第一名。透過專注於AI PaaS，我們的AI雲在市場上脫穎而出。我們看到我們的 AI PaaS 的實施正在吸引重複購買。從長遠來看，隨著我們在 PaaS 和 SaaS 業務的基礎上不斷發展，與純 IaaS 廠商相比，我們的 AI 雲端業務預計利潤率會更高。

Advertising revenue growth was solid, up 27% year-over-year. Merchants are adopting our direct-to-customer model to get closer to their customers. And Baidu's open platform model to accentuate the merchants by allowing them to build their brands on Baidu, access their own user data and leverage Baidu's AI-powered cloud services is a huge opportunity for our mobile ecosystem.

廣告收入成長穩健，較去年同期成長27%。商家正在採用我們的直接面對客戶的模式來拉近與客戶的距離。百度的開放平台模式讓商家可以在百度上建立自己的品牌、存取自己的用戶資料並利用百度的人工智慧雲端服務，這對我們的行動生態系統來說是一個巨大的機會。

ESG is an area that we focus on. In addition to leading the industry in cloud and data center construction, we hope to contribute to sustainability in a big way as we help cities across China deploy smart transportation to significantly improve the flow of internal combustion engines and promote the crossover to EV. Baidu is also developing smart EV, empowering automakers through intelligent driving services and providing robotaxi ride hailing and mobile buses which are all powered by EVs.

ESG 是我們關注的領域。除了引領產業雲端運算和資料中心建設之外，我們還希望為永續發展做出巨大貢獻，幫助中國各個城市部署智慧交通，顯著改善內燃機的流量，並促進向電動車的轉變。百度還在開發智慧電動車，透過智慧駕駛服務為汽車製造商賦能，並提供由電動車驅動的自動駕駛計程車和移動巴士。

Baidu returned USD 300 million to shareholders under the 2020 share repurchase program this year, bringing the cumulative repurchase from last year to USD 2.2 billion. We are confident about our future, on the strong profitability of our search and feed business and how we are using the AI technology developed from this business to fuel growth in the new AI business, which, along with our other non-ad business, has a TAM 10x the size of our online marketing business and 3x the CAGR growth to 2025, even when you exclude robotaxi ride hailing according to CIC.

百度今年以2020年股票回購計畫向股東返還3億美元，去年累計回購金額達22億美元。我們對未來充滿信心，相信我們的搜尋和資訊流業務擁有強勁的獲利能力，我們將利用從該業務中開發的人工智慧技術來推動新人工智慧業務的成長。根據 CIC 的數據，即使排除自動駕駛計程車叫車服務，新人工智慧業務連同我們的其他非廣告業務，其 TAM 也是我們在線上行銷業務的 10 倍，到 2025 年的複合年增長率將是其 3 倍。

Operator, with that, let's now open the call to questions.

接線員，好了，我們現在開始提問。

Hi, thank you. Good evening management, Robin and Herman. Thanks for taking my questions. Congrats on the solid results and guidance. My questions is related to cloud -- your AI cloud business. So wondering if management could share some of the operating metrics, for example the total numbers of the cloud customers and also the industry vertical that you are major in.

你好，謝謝。管理層、羅賓和赫爾曼晚上好。感謝您回答我的問題。恭喜您所取得的堅實成果和指導。我的問題與雲端有關—您的 AI 雲端業務。所以想知道管理層是否可以分享一些營運指標，例如雲端客戶的總數以及您所主攻的行業垂直領域。

And then also, for example like, how much or how big it is coming from the government or the big enterprise versus the smaller SME merchants in terms of using your cloud business? And also the current loss ratio that if you can share and how you envision your cloud business to grow into -- in the coming quarters and years? Thank you.

然後，例如，在使用雲端業務方面，來自政府或大型企業的份額與來自中小型企業的份額相比有多少或多大？還有目前的損失率，可以分享一下嗎？您預計未來幾季和幾年您的雲端業務將如何發展？謝謝。

Hi Alicia, yeah. So -- yeah, you guys hear me OK?

你好，艾莉西亞，是的。那麼——是的，你們聽清楚了嗎？

Yes.

是的。

Yeah. So, the way we look at our cloud business, as you know, in our AI cloud, there are several segments to our business. Number one is our familiar infrastructure cloud where we have IaaS, where we have PaaS, and where we have SaaS, right. In that segment, we have our key accounts and then we have our SMEs which are much smaller cloud providers. So you have your typical key accounts and then when you have SMEs, we have many, many customers there.

是的。因此，如您所知，我們看待雲端業務的方式是，在我們的 AI 雲端中，我們的業務有幾個部分。第一個是我們熟悉的基礎設施雲，其中我們有 IaaS，有 PaaS，有 SaaS，對吧。在這一領域，我們有主要客戶，然後我們有中小企業，它們是規模小得多的雲端供應商。因此，您有典型的大客戶，然後當您有中小企業時，我們在那裡有很多客戶。

In addition, we also have our customers for our smart transportation in that space. So that would be the key cities -- the top tier cities that we are in China. We don't have the exact number prepared for you for just today. But you can think of our segment, it's mostly smart cities and mostly key accounts in our AI cloud. Our top sectors are things like Internet, media, financial services, and transportation.

此外，我們在該領域也有智慧交通的客戶。這些就是重點城市──我們在中國所在的一線城市。我們還沒有為您準備今天的確切數字。但你可以想想我們的部分，它主要是智慧城市，主要是我們的人工智慧雲端中的關鍵客戶。我們的主要產業是網路、媒體、金融服務和交通運輸等。

And when you look at how we're growing, I think, last quarter, we said we're growing at 67% year-over-year. This quarter, we're growing a little bit slower at 55%. Part of the reason is because, if you recall, last year, COVID-19 started toward the end of January. So we did -- we had a pretty good base in Q1, because, typically, if you think about it, COVID-19 impacted us a lot, but when you think about the beginning of the quarter, we had a higher base. So the way I would look at it is we think that we can continue to grow the way we did last quarter, higher than what we have, 55%, this quarter. We think that we see in our pipeline that we should be able to grow at a higher rate.

當你觀察我們的成長情況時，我想，上個季度，我們說我們的年成長率為 67%。本季度，我們的成長速度略有放緩，為 55%。部分原因是，如果你還記得的話，去年 COVID-19 是在 1 月底開始爆發的。所以我們確實做到了——我們在第一季有一個相當不錯的基礎，因為，通常情況下，如果你仔細想想，COVID-19 對我們影響很大，但是當你想到本季度初時，我們有一個更高的基礎。因此，我認為我們可以繼續保持上一季的成長速度，甚至高於本季 55% 的水平。我們認為，從我們的管道來看，我們應該能夠以更高的速度成長。

Okay. Thank you, Herman.

好的。謝謝你，赫爾曼。

Thank you for the questions. Next questions comes from the line Piyush Mubayi of Goldman Sachs. Please go ahead.

謝謝您的提問。下一個問題來自高盛的 Piyush Mubayi。請繼續。

Hi, Robin, Herman. Thank you for taking my questions. When I look at the Core, the Core seems to have bounced back very nicely in both the first quarter as well as based on the guidance you're providing for the second quarter and the marketing revenue was up 27%. I suspect in the second quarter, based on the high end of the range at 33%, it would be a similar number.

你好，羅賓，赫爾曼。感謝您回答我的問題。當我查看核心業務時，核心業務似乎在第一季以及根據您提供的第二季指引都出現了非常好的反彈，行銷收入成長了 27%。我懷疑，在第二季度，基於 33% 的高端範圍，這將是一個類似的數字。

Could you just take us through some of the verticals where you're seeing spending come back very nicely and try to -- so that we can try and see whether this is sustainable through the rest of the year with the clear emergence of a trend coming back very nicely? That's the first question. And if I might slip in a second question, you talked about the TAM for ride- hailing, I wonder if you could just take us through what your strategy is and how deep you want to go? Thank you.

您能否向我們介紹一下您看到的支出回升非常順利的一些垂直領域，並嘗試——以便我們可以嘗試看看這種趨勢在今年剩餘時間內是否可持續，並且是否明顯出現了回升非常順利的趨勢？這是第一個問題。如果我可以問第二個問題，您談到了叫車服務的 TAM，我想知道您是否可以向我們介紹一下您的策略是什麼以及您想要深入到什麼程度？謝謝。

I will ask Dou to answer your first question and I'll take on the second one.

我會讓竇先生回答你的第一個問題，然後我會回答第二個問題。

Okay. For the first one, actually, we see pretty good performance for most of the top ad verticals actually, not just by a single one. Actually, talking about the performance of the ad revenue. I think it's not only because of the low base of the last year's first quarter. I want to actually give the credit to the 3 building blocks we have been working on in the past few years.

好的。對於第一個，實際上，我們看到大多數頂級廣告垂直行業的表現都相當不錯，而不僅僅是一個。其實說的是廣告收入的表現。我想不只是因為去年第一季基數低。我實際上想把功勞歸功於我們過去幾年來一直致力於的三個基石。

As Robin mentioned in the prepared remarks, Baijiahao and Smart Mini program and also the Managed Pages, they all grew quickly. And these building blocks actually, they provide high quality content and also the services to the users so that the users you know they can not only get the information as before, but they can also get the service in the closed-loop experience.

正如Robin在準備好的發言中提到的，百家號和智慧小程式以及託管頁面都發展迅速。這些構建模組實際上為用戶提供了高品質的內容和服務，以便用戶不僅可以像以前一樣獲取信息，還可以獲得閉環體驗中的服務。

Now with that, the user, they can complete their tasks like book a flight or book -- in one-stop step instead of jumping away. So, all these building blocks actually, they contribute to the monetization capability we have built, especially for Baidu APP. So, we can see it actually grows even faster than the average 27%. It's more than 30%. So with that actually we are seeing pretty good performance for all the verticals on the way down the road.

現在，用戶可以一站式完成預訂航班或書籍等任務，而不必跳轉。因此，所有這些建構模組實際上都有助於我們建立貨幣化能力，特別是對於百度應用程式而言。因此，我們可以看到它的成長速度實際上比平均 27% 還要快。超過30%。因此，實際上我們看到所有垂直行業在未來的表現都相當不錯。

Yes. So for the TAM of Apollo, it's huge. It's very large and right now it's growing very fast. If you recall, we started to invest in autonomous driving roughly eight years ago. Over the years, Apollo has moved into a very comprehensive platform that supports all kinds of business models and directions that includes robotaxi ride hailing, that includes software services provider for the OEMs, and also that includes building our own smart EVs.

是的。因此，對於阿波羅的 TAM 來說，它是巨大的。它非常龐大，而且現在成長非常快。如果你還記得的話，我們大約八年前就開始投資自動駕駛了。多年來，Apollo 已發展成為一個非常全面的平台，支援各種商業模式和方向，包括自動駕駛計程車叫車、為原始設備製造商提供軟體服務，還包括打造我們自己的智慧電動車。

I think all of this effort will feed back data and other kinds of market signals to the Apollo platform making Apollo a stronger and better platform for both autonomous driving and smart transportation. We are very excited that each of this directions including the smart transportation project we're building for many, many cities, because it all can be integrated together and provide a much more efficient transportation system for the cities, for the society, and provide better experience for the drivers and the consumers. And it all come together and we're very happy we invested early and we start to reap the benefit of this direction.

我認為所有這些努力都會將數據和其他類型的市場訊號回饋給 Apollo 平台，使 Apollo 成為一個更強大、更好的自動駕駛和智慧交通平台。我們非常高興每一個方向，包括我們正在為許多城市建設的智慧交通項目，因為它們可以整合在一起，為城市、為社會提供更有效率的交通系統，為駕駛員和消費者提供更好的體驗。一切順利，我們很高興我們早期進行了投資，並開始從這個方向獲益。

Thank you for the questions. Next questions comes from Alex Yao of J.P. Morgan. Please go ahead.

謝謝您的提問。下一個問題來自摩根大通的 Alex Yao。請繼續。

Hi, good evening, management. Thank you for taking my question. I have a couple of follow-up questions on the cloud. Robin, you mentioned deployment of V2X infrastructure will play -- will generate a network effect to your broader Apollo strategy. Can you elaborate that network effect little bit more and also what strategic benefits will the broader Apollo ecosystem benefit from the build-up of your V2X infrastructure in China?

嗨，管理層，晚上好。感謝您回答我的問題。我有幾個關於雲的後續問題。羅賓，您提到 V2X 基礎設施的部署將對您的更廣泛的阿波羅策略產生網路效應。您能否更詳細地闡述網路效應？以及更廣泛的阿波羅生態系統將從中國建立 V2X 基礎設施中獲得哪些戰略利益？

Then the near-term financial question is, Herman, I think you mentioned despite of the strong -- in addition to the strong growth momentum in first quarter, you expect Core revenue to further accelerate into the coming quarters. Can you talk about the fundamental driver to the strong revenue growth momentum, particularly in the Smart City market? What is your competitive edge or who do you see as the biggest competitor and what are the unique value proposition you bring to this market segment? Thank you.

那麼近期的財務問題是，赫爾曼，我想你提到儘管第一季成長勢頭強勁，但你預計核心收入將在未來幾季進一步加速成長。您能否談談強勁營收成長動能的根本驅動力，特別是在智慧城市市場？您的競爭優勢是什麼，或是您認為誰是最大的競爭對手，您為這個細分市場帶來什麼獨特的價值主張？謝謝。

Yes. For the V2X project, it's quite clear that the sensors build on the roads can communicate with vehicles. Therefore, vehicles, be it with autonomous driving capabilities or not, they are connected so they can get signals from the infrastructure and therefore become more informed when deciding on their driving behavior.

是的。對於 V2X 項目，很明顯，道路上建造的感測器可以與車輛進行通訊。因此，無論車輛是否具有自動駕駛功能，它們都是聯網的，以便可以從基礎設施獲取訊號，從而在決定駕駛行為時獲得更多資訊。

If there is a driver on the car, we can alert on any risks that's not directly visible by a human eye because there are sensors surrounding the environment that can alert the drivers and also better tracking driver behavior in some cases.

如果車上有司機，我們可以對任何人眼無法直接看到的風險發出警報，因為周圍環境中有感測器可以向司機發出警報，並且在某些情況下還可以更好地追蹤司機的行為。

For example, in the city of Guangzhou, there are some commercial trucks, their license plates could be covered by mud so the drivers were not afraid of violating the traffic laws. But now, with V2X infrastructure and on-vehicle devices that sometimes installed on those trucks, the city regulators can much better track those violations, therefore making the road safer and more efficient.

例如在廣州市，有些商用貨車，車牌上可以​​蓋滿泥巴，司機不怕違反交通法規。但現在，有了 V2X 基礎設施和有時安裝在卡車上的車載設備，城市監管機構可以更好地追蹤這些違規行為，從而使道路更安全、更有效率。

Of course with vehicles with autonomous driving capabilities, they can be assured that the infrastructure can send signals to those kind of vehicles and help the vehicles to better assess the environment, therefore improve the accuracy of the planning and controlling process for autonomous driving.

當然，對於具有自動駕駛功能的車輛，他們可以放心，基礎設施可以向這類車輛發送訊號，幫助車輛更好地評估環境，從而提高自動駕駛規劃和控制過程的準確性。

The more V2X projects we deploy, the more cars can benefit from this kind of infrastructure. Therefore, the autonomous driving capabilities can improve faster and also become safer for the passengers on those cars. And also it can reduce the cost of a single car because sometimes you don't have to rely on very expensive on-board devices such as the high-end Lidars in order to really drive on fully autonomous. Herman?

我們部署的 V2X 專案越多，越多的汽車可以從這種基礎設施中受益。因此，自動駕駛能力可以得到更快的提升，同時也為車上的乘客提供更安全的環境。而且它還可以降低單輛汽車的成本，因為有時您不必依賴非常昂貴的車載設備（例如高端雷射雷達）即可真正實現完全自動駕駛。赫爾曼？

Yes. And to add to what Robin just said, I think a couple of things. You asked us for smart transportation, what are the growth drivers. One thing is recognize how AI works, right, that the more data you have synchronized, it becomes more powerful. So what V2X does, for example, in Guangzhou, it is 102 intersections where we are offering an AI solution that allows the traffic lights to be synchronized throughout that whole part of the city. Okay. So, when you think about that and you know that the chance of getting to Phase 2 so that the first phase of the project is synchronized with the second phase, that would give you that kind of network effect.

是的。除了羅賓剛才所說的內容之外，我還想到了幾點。您問我們智慧交通的發展動力是什麼。一件事是認識到人工智慧是如何運作的，對吧，同步的數據越多，它就越強大。例如，在廣州，V2X 為 102 個路口提供了 AI 解決方案，使整個城市的交通號誌能夠同步。好的。因此，當您考慮到這一點，並且您知道進入第二階段的機會，以便專案的第一階段與第二階段同步，這將為您帶來那種網路效應。

So that's why for example, when you see in the City of Baoding when we first had our first phase, we were called back for a second phase because you want that second set of lights to that part of the city to be synchronized and then we even see, for example, now a third part of the phase as we continue to expand the traffic lights. So, that's one way to expand our business, is to continue to take in more area of the city and be able to synchronize all of the traffic lights synchronized with the traffic flow.

這就是為什麼，例如，當你看到我們在保定市首次進行第一階段建設時，我們被召回進行第二階段建設，因為你想讓第二組交通信號燈與該市的那部分同步，然後我們甚至看到，例如，現在我們正處於該階段的第三部分，我們將繼續擴大交通信號燈的規模。因此，這是擴大我們業務的一種方式，即繼續覆蓋更多的城市區域，並能夠使所有交通號誌與交通流同步。

Okay. And you asked who is our competitor. We see competitors in the area, but we don't see them focusing on a whole part of the city. They are more looking at one light at a time, while we're using Baidu Brain to power the whole thing. And our opportunity is -- In addition, as Robin mentioned in the prepared remarks, once you go in there with V2X, you have the opportunity to go in there with Maas, right. Maas is our open platform, which controls robotaxi and Robobuses.

好的。你問誰是我們的競爭對手。我們看到該地區有競爭對手，但我們沒有看到他們專注於整個城市的一部分。他們一次只專注於一盞燈，而我們使用百度大腦來為整個系統提供動力。我們的機會是——此外，正如羅賓在準備好的演講中提到的那樣，一旦你使用 V2X 進入那裡，你就有機會與 Maas 一起進入那裡，對吧。 Maas 是我們開放的平台，控制著 robotaxi 和 Robobuses。

Like in Guangzhou not only does it power the Robotaxis that Apollo have, you also have Robobuses in there. You also have another brand of robotaxi that our Maas is powering. So, you can think of it as the operating system for that part of the city and whenever there are other robotaxi transportation and so forth, the government uses our Maas to kind of power those robotaxi or Robobuses so that you could prioritize the ride and so forth.

就像在廣州，它不僅為阿波羅的 Robotaxis 提供動力，還為那裡的 Robobuses 提供動力。您還有另一個由我們的 Maas 提供動力的自動駕駛計程車品牌。因此，你可以將其視為城市該部分的操作系統，每當有其他機器人出租車交通工具等出現時，政府就會使用我們的 Maas 為這些機器人出租車或 Robobuses 提供動力，以便你可以優先乘車等等。

And then, there is other product expansions like for example going to highway, going to parkings, and so forth. So the more of these projects are synchronized obviously through AI and so forth, you're going to make the traffic moves smoother. So, you're seeing two trends.

然後，還有其他產品擴展，例如上高速公路、去停車場等等。因此，顯然透過人工智慧等技術同步的項目越多，交通運行就越順暢。所以，你看到了兩個趨勢。

One is, as we're going into cities, we're getting multiple phases. We're expanding the products and you're also seeing us entering new and new -- more and more cities because a lot of cities in China now, they are leveraging on technology to improve their infrastructure rather than closing down roads and taking more land in order to widen the roads to basically reach the same goal.

一是，當我們進入城市時，我們會進入多個階段。我們正在擴大產品範圍，你也會看到我們進入越來越多的新城市，因為現在中國的許多城市都在利用科技來改善基礎設施，而不是透過關閉道路、佔用更多土地來拓寬道路來達到同樣的目標。

Thank you for the questions. Next questions comes from the line of Jerry Liu of UBS. Please go ahead.

謝謝您的提問。下一個問題來自瑞銀的 Jerry Liu。請繼續。

Hey, thank you. Thank you, management. Robin, if I may go back to your earlier statement about how non-ad revenues could surpass ad revenues in the Baidu Core in three years. So, I mean that makes me feel that you guys see more -- have a bit more visibility and confidence of this mix shift. So I just want to ask, what are some of the drivers you're seeing here? Now obviously cloud Apollo maybe YY Live or can contribute to that, but I'm just wondering what are maybe the bigger drivers in this mix shift. Thank you.

嘿，謝謝你。謝謝管理層。羅賓，我可以回到你之前的聲明，關於百度核心的非廣告收入如何在三年內超過廣告收入。所以，我的意思是，這讓我覺得你們看得更多——對這種混合轉變有了更多的了解和信心。所以我只想問一下，您在這裡看到了哪些驅動因素？現在顯然雲端 Apollo 或許是 YY Live 或可以為此做出貢獻，但我只是想知道這種混合轉變中更大的驅動力是什麼。謝謝。

Hi, Jerry. This is Robin. I don't know if you've noticed that when we say what kind of company Baidu is, we say that we are a leading AI company with strong Internet foundation. That means that we can not only benefit from the investments we did over the past like 10 years to more -- to get into more new businesses like intelligent driving and smart cloud, we also can leverage our AI capability to better monetize our strong user base we accumulated over the past for like 20 years.

你好，傑瑞。這是羅賓。我不知道大家有沒有註意到，我們在說百度是一家甚麼樣的公司的時候，我們說我們是一家領先的人工智慧公司，有強大的網路基礎。這意味著，我們不僅可以從過去 10 多年所做的投資中獲益，進入智慧駕駛和智慧雲端等更多新業務，還可以利用我們的人工智慧能力，更好地將我們過去 20 年積累的強大用戶群貨幣化。

If you compare the Baidu mobile ecosystem with other leading mobile ecosystems in China, you notice that we are probably one of the very few that has online marketing revenue as the majority of total revenue. This is not a very reasonable situation. Our tens of millions of users can enjoy other kind of services of Baidu not just clicking on that, they can pay for premium content, they can do e-commerce transactions, they can play games, they can watch live streaming and tip their influencers.

如果將百度行動生態系統與中國其他領先的行動生態系統進行比較，你會發現我們可能是極少數將網路行銷收入作為總收入主要來源的公司之一。這不是一個很合理的情況。我們的數千萬用戶可以享受百度的其他服務，不僅是點擊，他們還可以為優質內容付費，可以進行電子商務交易，可以玩遊戲，可以觀看直播，可以給有影響力的人打賞。

There are a lot of things we can do and as we deploy more closed-loop user experience, we think that the Baidu App and as we leverage our AI algorithms to better recommend services and better understand user's needs, we can monetize the strong user base through multiple ways. That's how we look at this landscape.

我們可以做很多事情，隨著我們部署更多的閉環用戶體驗，我們認為百度應用程式以及我們利用人工智慧演算法來更好地推薦服務並更好地了解用戶的需求，我們可以透過多種方式將強大的用戶群貨幣化。這就是我們看待這片景觀的方式。

Yes. And just let me add to that -- to Robin. You asked us what are the key drivers. I think Robin was very clear, when you look at the mobile ecosystem, our non-advertising like here because we can leverage our huge user base. We're reaching over 1 billion mobile devices per month, right.

是的。讓我補充一下——對羅賓來說。您問我們關鍵驅動因素是什麼。我認為羅賓非常清楚，當你觀察行動生態系統時，我們的非廣告就像在這裡一樣，因為我們可以利用我們龐大的用戶群。我們每月覆蓋的行動裝置超過 10 億台，對吧。

So, in addition to that, we talk about our cloud. You look at our cloud. It's pretty significant in size right now and it's still growing very robust and I think as we mentioned before, there's two main areas that's driving the growth. One is our infrastructure cloud. You have us differentiating with AI solutions, like on the prepared remarks whenever we go into a big customer with AI PaaS, we're seeing them having cross selling and having upselling.

因此，除此之外，我們也討論我們的雲。你看看我們的雲。目前它的規模相當可觀，並且仍在強勁增長，我認為正如我們之前提到的，有兩個主要領域推動著它的成長。一個是我們的基礎設施雲端。我們透過 AI 解決方案進行區分，就像在準備好的評論中所說的那樣，每當我們帶著 AI PaaS 去見大客戶時，我們都會看到他們進行交叉銷售和追加銷售。

So not only does it sell more PaaS in applications, you're also seeing them, for example, crossing into IaaS like the example we gave, one bank started buying private cloud as a result of building their relationship with us. So, we're going to see that digitalization of enterprises drive our sales, I think particularly in AI PaaS, particularly in application and it's also going to allow us to go into the IaaS of that business.

因此，它不僅在應用程式中銷售更多的 PaaS，你還會看到它們進入 IaaS 領域，例如我們給出的例子，一家銀行在與我們建立關係後開始購買私有雲。因此，我們將看到企業數位化推動我們的銷售，我認為特別是在 AI PaaS 領域，特別是在應用程式領域，它也將使我們能夠進入該業務的 IaaS 領域。

Smart transportation we talked about, we think that that's a huge opportunity. When you look at, for example just last year in the number of projects that China has with transportation and so forth, there's probably over 300 cities. I think that's 302 cities recorded by the government that have a transportation project.

我們談到的智慧交通，我們認為這是一個巨大的機會。例如，光是去年，中國在交通等領域的項目數量就可能超過 300 個城市。我認為政府記錄的擁有交通項目的城市有 302 個。

So, there's huge opportunity for us in that area. And then, when you're looking at OGI, we look at a few areas. You look at, for example, our DuerOS with smart display, smart devices and so forth. You're looking at, for example, Apollo Self Driving, we're signing up with lot of OEMs as they are starting to ship their cars in the next few years, you're going to see more and more come on. For example in this year, just for example, ASD were still in the pipeline, by the end of the year, we should have maybe four automakers install our ASD, right.

因此，我們在該領域面臨著巨大的機會。然後，當您查看 OGI 時，我們會查看幾個區域。例如，您可以看看我們的 DuerOS，它具有智慧顯示器、智慧型裝置等等。例如，你正在看阿波羅自動駕駛，我們正在與許多原始設備製造商簽約，因為他們將在未來幾年開始運送他們的汽車，你會看到越來越多的公司加入。例如今年，ASD 仍在籌備中，到今年年底，應該會有大約四家汽車製造商安裝我們的 ASD，對吧。

And then, on top of that, we're already testing robotaxi ride-hailing. For example, went live in Beijing and so we should see that pretty exciting in the next couple of years. So here are just some of the areas that we think that there is potential for growth and because the TAM is 10 times and the CAGR is 3 times of advertising and you look at the pace that we have gone through, right.

除此之外，我們也正在測試自動駕駛計程車叫車服務。例如，在北京上線，因此我們應該在未來幾年看到它非常令人興奮的發展。因此，這些只是我們認為具有成長潛力的一些領域，因為 TAM 是廣告的 10 倍，CAGR 是廣告的 3 倍，您可以看到我們經歷的速度，對吧。

If you recall, just two quarters back, our non-advertising was growing at 14%. Last quarter we said it was a little bit higher at 52% and this quarter we're seeing 70%. So, you're seeing us really starting with our firepower for our non-advertising AI businesses that we have incubated over the last decade start to mature and start to monetize.

如果你還記得的話，短短兩個季度前，我們的非廣告收入就成長了 14%。上個季度我們說這個比例略高，為 52%，而本季我們看到的是 70%。因此，您將看到我們真正開始發揮我們在過去十年中孵化的非廣告 AI 業務的火力，這些業務開始成熟並開始盈利。

Thank you. Next question comes from the line of Miranda Zhuang from Bank of America. Please go ahead.

謝謝。下一個問題來自美國銀行的 Miranda Zhuang。請繼續。

Thank you. And good evening management. Thank you for taking my question. Congratulations on a very strong results and outlook. So, my question is about your EV business, can management provide any color on the scale of the financial investments that we're planning for the EV business this year and also as well as if there is any update to the product timeline?

謝謝。各位管理層晚上好。感謝您回答我的問題。祝賀您取得了非常強勁的業績和前景。所以，我的問題是關於你們的電動車業務，管理層能否透露我們今年為電動車業務計劃的財務投資規模，以及產品時間表是否有任何更新？

I would remember that in last earnings call management mentioned about planning to launch the EV car in three years' time. We would like to check if there is any update to this plan given that the EV market is recently becoming more and more crowded with more newcomers and more capital inflow. So, just want to check our timeline and also want to get a sense of what will our EV business roadmap look like and what kind of key business milestones can we expect this year and next year? Thank you.

我記得在上次收益電話會議上管理層提到計劃在三年內推出電動車。鑑於電動車市場最近變得越來越擁擠，新進業者和資本流入越來越多，我們想檢查該計劃是否有任何更新。因此，只是想查看我們的時間表，也想了解我們的電動車業務路線圖是什麼樣的，以及今年和明年我們可以期待什麼樣的關鍵業務里程碑？謝謝。

Yes. As you know that the EV business is a relatively independently operated company controlled by us. The goal is to make our latest and coolest technology available on the market as soon as possible. We mentioned that we intend to launch that within three years and of course the team is trying very hard to make it available earlier, as soon as possible.

是的。如您所知，電動車業務是我們控制的相對獨立營運的公司。我們的目標是盡快將我們最新、最酷的技術推向市場。我們提到我們打算在三年內推出產品，當然團隊正在努力盡快推出產品。

And our thesis remains unchanged because Apollo is a very comprehensive platform for all kind of autonomous technologies and we've been investing in this for many, many years. But we see a lot of opportunities to offer unique user experience and technology through a seamless integration of software and hardware as well as fully take advantage of infrastructure that's available to the consumers.

我們的論點保持不變，因為阿波羅是一個非常全面的平台，適用於所有類型的自主技術，而且我們已經在這方面投資了很多年。但我們看到了許多機會，透過軟體和硬體的無縫整合來提供獨特的用戶體驗和技術，並充分利用消費者可用的基礎設施。

Herman, do you have any financial color to add on that?

赫爾曼，你對此有什麼財務上的補充嗎？

I think that the CEO just saying on, I think we're still working through our business plans. But if -- to look at that whole EV market, you can actually -- there's quite a few analysts that have given projection on the size and so forth. I think where we are lucky in the sense that the hardest part if you think about EVs and so forth is the autonomous driving, that that ability being able to build intelligent driving, and also being able to power infotainment within the car so that you're having more intelligence both within the car as the person drives and also outside of the car.

我認為執行長剛才說過，我認為我們仍在製定我們的商業計劃。但如果——看看整個電動車市場，你實際上可以——有相當多的分析師對規模等做出了預測。我認為我們很幸運，因為如果你考慮電動車等，最困難的部分是自動駕駛，這種能力能夠建立智慧駕駛，並且能夠為汽車內的資訊娛樂提供動力，這樣當人們駕駛時，無論是在車內還是在車外，你都能擁有更多的智慧。

So, I think that would give us that ability to actually be able to design the car and to have those kind of technologies and products ready. So we don't have any particular numbers to give out now, but you do have projections on where the EV volume is going to be in three years and you do have other automakers that have shone in the last few years.

所以，我認為這將使我們有能力真正設計汽車並準備好這類技術和產品。因此，我們現在沒有任何具體的數字可以公佈，但可以預測三年後電動車的銷量將會達到什麼水平，而且也確實有其他汽車製造商在過去幾年裡表現優異。

So, we're going to be looking at that kind of model and we're going to be looking at the market that fits us -- our profile, as Robin mentioned, so that in this model -- maybe another way to look at this. If you look at where a lot of the EV cars are going, a lot of them are going direct to customers, right. If you look at the model with intelligent -- just like our speakers and so forth, in the past, with the speakers people sell hardware, right.

因此，我們將研究這種模型，我們將研究適合我們的市場——我們的概況，正如羅賓所提到的，以便在這種模型中——也許可以用另一種方​​式來看待這個問題。如果你看看很多電動車的去向，你會發現很多都是直接面對客戶銷售的。如果你看一下智慧模型——就像我們的揚聲器等等，過去，人們透過揚聲器銷售硬件，對吧。

When you think about EVs nowadays, you look at, for example, some of the cars, when they sell the cars, they are also trying to swap batteries so that they can get users to actually have more frequent contact so that they can also make more money after the post sales of hardware so they could sell more services.

當你想到現在的電動車時，你會看到，例如，一些汽車，當他們銷售汽車時，他們也在嘗試更換電池，以便他們可以讓用戶實際上有更頻繁的聯繫，這樣他們也可以在硬體售後賺更多的錢，這樣他們就可以銷售更多的服務。

So, when you think about our business. Number one, we're already selling a lot of services like intelligent driving. We're already getting a lot of our infotainment installed in OEMs and so forth. So, this whole business model of having more contact with the users, with the consumers to build the brand and also be able to drive more services after the initial sale of hardware is something that we're very familiar with.

所以，當你考慮我們的業務時。首先，我們已經在銷售很多服務，例如智慧駕駛。我們已經在 OEM 等處安裝了許多資訊娛樂系統。因此，我們非常熟悉這種與用戶、與消費者建立更多聯繫以建立品牌並在首次銷售硬體後能夠提供更多服務的商業模式。

So, I think we'll be more prepared as we go into that model of EV and adapting to that direct to customers rather than the traditional way of just trying to make the dollars by selling just hardware.

因此，我認為，當我們進入電動車模式並適應直接面向客戶時，我們會做好更充分的準備，而不是僅僅透過銷售硬體來賺錢的傳統方式。

Thank you. Next question comes from Gary Yu of Morgan Stanley. Please go ahead.

謝謝。下一個問題來自摩根士丹利的 Gary Yu。請繼續。

Hi. Thank you, Robin, Herman, and Juan. I have one follow-up question regarding your three-year kind of revenue mix outlook. Given to-date, the biggest part of your non-marketing revenue is coming from AI cloud. So how should we look at contribution from various businesses in three years' time when non-marketing surpass your marketing revenue? Should we still expect kind of AI cloud to be a dominant driver of that or we expect some of these autonomous driving revenue and also car hailing revenue will start to become more material?

你好。謝謝你，羅賓、赫爾曼和胡安。關於您三年的收入組合前景，我有一個後續問題。目前來看，你們非行銷收入的最大部分來自於AI雲。那麼三年後，當非行銷收入超過行銷收入的時候，我們該如何看待各個業務的貢獻呢？我們仍應預期人工智慧雲端將成為其中的主要驅動力，或者我們預期自動駕駛收入和叫車收入將開始變得更加重要？

And a related question to that is, how should we look at margin given the revenue mix shift? So, how should we look at the mobile ecosystem margin trend going forward and by what time should we expect the non-marketing business to become profitable? Thank you.

與此相關的一個問題是，考慮到收入結構的變化，我們應該如何看待利潤率？那麼，我們應該如何看待未來的行動生態系統利潤率趨勢，以及我們應該在什麼時候預期非行銷業務能夠實現獲利？謝謝。

Yes, on the revenue mix, if you look at our AI cloud, we've been disclosing the revenue number and growth rates for a number of quarters and you can probably do a projection based on the past performance. And there are many other ways that we can monetize our strong user base and AI technology through either intelligent driving or other things mentioned by myself and Herman.

是的，就收入組合而言，如果你看看我們的人工智慧雲，我們已經揭露了多個季度的營收數字和成長率，你大概可以根據過去的表現做一個預測。我們還可以採用許多其他方式將我們強大的用戶基礎和人​​工智慧技術貨幣化，無論是透過智慧駕駛還是我和 Herman 提到的其他方式。

I think that all -- when that all add up, it should represent more than half of our total revenue. But the foundation is the same. We've been accumulating the user base for the past 20 years and we've been investing in AI technology for more than 10 years and this all come together and opens up a lot of new opportunities for us to grow our revenue.

我認為所有這些加起來應該占到我們總收入的一半以上。但基礎是一樣的。過去 20 年，我們一直在累積用戶群，10 多年來，我們一直在投資人工智慧技術，所有這些結合在一起，為我們增加收入開闢了許多新的機會。

I'll let Herman answer about the margin question.

我會讓赫爾曼回答有關利潤率的問題。

Yeah. Yeah, so on the margins, let me answer several ways. I think number one, obviously mobile ecosystem search and feed that is a mature business growing not as fast. When you have a business that we are in where our search is the largest in China, where we have tremendous amount of traffic, obviously you're going to have very good margin.

是的。是的，所以從邊緣角度來說，讓我從幾個方面來回答。我認為，首先，顯然行動生態系統搜尋和資訊流是一個成熟的業務，成長速度沒有那麼快。當我們所從事的業務是中國最大的搜尋業務，擁有龐大的流量時，顯然您將獲得非常好的利潤。

But at the same time, with our mobile ecosystem, we were able to afford a lot of investments in these AIs and we're leveraging AIs into these businesses. So it helps us allocate some of that cost structure into other businesses. But as we're ramping up two types of businesses. One is 2B business right, when you think about AI cloud going into enterprises and we're also ramping up our 2G business going into cities working with municipalities and so forth, right. So, you're going to see us getting impacted by the margins in several ways.

但同時，憑藉我們的行動生態系統，我們有能力在這些人工智慧上進行大量投資，並將人工智慧運用到這些業務中。因此，它可以幫助我們將部分成本結構分配到其他業務。但隨著我們兩種類型的業務的擴大。一個是 2B 業務，當你想到 AI 雲端進入企業時，我們也在加強我們的 2G 業務，進入與市政當局合作的城市等等。因此，你會看到我們在多個方面受到利潤的影響。

Number one is number -- you're going to have a cost of sales, right. Whether we're selling more AI solution projects, you have cost of sales. Whether we're selling more projects with smart transportation, whether we're selling more displays, you're going to have cost of sales. Furthermore, when you're seeing a strong steep ramp-up of our AI cloud business, smart transportation, and so forth, we have to hire ahead of the curve.

第一個數字是——你將有一個銷售成本，對吧。無論我們是否銷售更多的人工智慧解決方案項目，您都有銷售成本。無論我們是否銷售更多智慧交通項目，無論我們是否銷售更多顯示器，您都會有銷售成本。此外，當您看到我們的人工智慧雲端業務、智慧交通等業務強勁成長時，我們必須提前招募人才。

We have to be looking at for the next six to 12 months where our sales are going to be and hire those salespeople in early so that we can train them for two quarters or so forth and then they could start going out there and get orders. So I think for the margins as you're seeing -- for example you're seeing us give very robust Q2 revenue guidance, then you should assume number one is, a lot of that growth is coming from new AI business.

我們必須預測未來 6 到 12 個月的銷售情況，並儘早僱用這些銷售人員，以便我們可以對他們進行兩個季度左右的培訓，然後他們就可以開始出去接訂單了。所以我認為，就您所看到的利潤率而言——例如，您看到我們給出了非常強勁的第二季度收入預期，那麼您應該假設，第一，很大一部分是增長來自新的人工智慧業務。

You're going to see gross margin compared to last year, you're going to see gross margin this year more incrementally from AI business. So, you've got to consider that. And secondly, you've got to consider the fact that we're going to increase our sales and marketing to support the current growth. And also the next few quarters, you're going -- you should expect, for example, us to accrue for bad debt because new -- these new business 2B and 2G, they all have AR allowances unlike our advertising. So, these are the things you should consider.

與去年相比，你會看到毛利率提高，今年人工智慧業務的毛利率將進一步提高。所以，你必須考慮到這一點。其次，你必須考慮到我們將增加銷售和行銷以支持當前的成長。而且在接下來的幾個季度中，你應該預料到，例如，我們會累積壞賬，因為新的——這些新的業務 2B 和 2G，它們都有應收賬款準備金，這與我們的廣告不同。所以，這些都是你該考慮的事情。

So, let me just summarize. I think when you're looking at non-advertising, the opportunity is in our typical cloud business, it's in smart transportation, it's within OGI. The key drivers are going to be related to intelligent driving such as our ASD and we think that our EV and our robotaxi and then lastly our smart devices. So, here are the three -- the few areas. And then in terms of margins, cost of sales, you're going to see it dampening, you've already seen that, for example, in Q1 and then we have to prepare for sales and marketing and also G&A, OK.

那麼，讓我總結一下。我認為，當你專注於非廣告領域時，機會就在於我們典型的雲端業務、智慧交通和 OGI 中。關鍵驅動因素將與智慧駕駛相關，例如我們的 ASD，我們認為還有我們的電動車和我們的自動駕駛計程車，最後還有我們的智慧型裝置。因此，這裡有三個——幾個領域。然後就利潤率、銷售成本而言，你會看到它在下降，你已經看到了，例如，在第一季度，然後我們必須為銷售和行銷以及 G&A 做好準備，好的。

Thank you for the questions. Next questions comes from James Lee of Mizuho. Please go ahead.

謝謝您的提問。下一個問題來自瑞穗的詹姆斯李 (James Lee)。請繼續。

Great. Thanks for taking my questions. Two here. First on the cloud businesses and clearly you guys having a lot of success in AI point solution through customized projects. And maybe can you talk about how you plan to make the business more scalable? How close are you in building a standardized solution so you can expand across various industries using third-party developers and system integrators?

偉大的。感謝您回答我的問題。這裡有兩個。首先是雲端業務，顯然你們透過客製化專案在人工智慧點解決方案方面取得了很大成功。您能否談談您計劃如何使業務更具可擴展性？您在建立標準化解決方案方面還有多遠，以便能夠利用第三方開發人員和系統整合商擴展到各個行業？

And also, do you have a backlog number so we can get a better understanding of the underlying trends? And second is, for second quarter, Herman, can you talk about maybe your expectation on expense growth and to the extent you can break out between core advertising and new investments? Thanks.

另外，您是否有積壓訂單數量，以便我們更了解潛在趨勢？第二，赫爾曼，對於第二季度，您能否談談對費用成長的預期，以及您可以在多大程度上突破核心廣告和新投資？謝謝。

First of all, I think a lot of the projects we are taking for AI cloud is very scalable. The solution can really be standardized on a vertical industry basis. We have been talking about smart transportation. A smart transportation project in one city can be easily copied to another city and although it is loss making right now, but the gross margin is very good at this time already. And going forward, as we do more and more these kind of projects, I think margin will improve and the investment in R&D will gradually pay off.

首先，我認為我們為 AI 雲端開展的許多專案都具有很強的可擴充性。該解決方案確實可以在垂直行業基礎上實現標準化。我們一直在談論智慧交通。一個城市的智慧交通項目可以輕鬆複製到另一個城市，雖然現在處於虧損狀態，但此時的毛利率已經非常好了。展望未來，隨著我們開展越來越多此類項目，我認為利潤率將會提高，研發投資也將逐漸獲得回報。

I mean the solutions are pretty standard from city to city. And more broadly, I think other industries be it in the financial industry or in the energy industry, we've been building a standardized layer mainly on the PaaS, platform-as-a-service layer. We have a lot of AI capabilities; speech recognition capability, text to speech capability, OCR capability, natural language processing capability; lots of things that can be standardized. And we do work with system integrators to deliver turnkey solutions to many of our customers and we will continue to do so. And going forward, I think the standard part of our AI cloud solution will become a bigger and bigger part of the total cloud revenue.

我的意思是，各個城市的解決方案都是相當標準的。更廣泛地說，我認為其他產業，無論是金融業或能源業，我們都一直在建立標準化層，主要在 PaaS、平台即服務層上。我們擁有許多人工智慧能力；語音辨識能力、文字轉語音能力、OCR能力、自然語言處理能力；很多事情都可以標準化。我們確實與系統整合商合作，為許多客戶提供交鑰匙解決方案，我們將繼續這樣做。展望未來，我認為我們的 AI 雲端解決方案的標準部分將在整個雲端收入中所佔的比例越來越大。

Thank you. Next questions comes from the line of Han Joon Kim of Macquarie. Please go ahead.

謝謝。下一個問題來自麥格理的 Han Joon Kim。請繼續。

Great. Thank you, management. As we looked at some of the cloud revenues for your perhaps larger peers in the market, we've noticed a few other key accounts depart recently partially sometimes for extenuating circumstances, but others maybe just as customers want to build out their own services and so forth. So, as we think about stickiness of our own cloud revenues and perhaps dependencies on key accounts, can you give us any kind of indication of how we think about the stickiness of that? And yeah, just general, some observation you might have had about the market situation? Thank you.

偉大的。謝謝管理層。當我們查看市場上一些較大同行的雲端收入時，我們注意到最近其他一些重要客戶也離開了，有時是因為特殊情況，但其他客戶可能只是因為客戶想要建立自己的服務等等。因此，當我們考慮我們自己的雲端收入的黏性以及對關鍵客戶的依賴性時，您能否給我們任何有關我們如何看待這種黏性的跡象？是的，總的來說，您對市場狀況有什麼觀察嗎？謝謝。

Yeah. I think at an early stage, we may be very sensitive to one or two key customers. But as the base becomes larger and larger, any single key account customer will contribute a lower and lower percentage of our total revenue. I think this is kind of different from those standard app solutions provided to those Internet and media customers like some of our peers do. We've been more focused on vertical industries where we've been providing more AI empowered cloud solutions. I think that's more a defendable approach and a direction that's not so sensitive to any one or a few large customers.

是的。我認為在早期階段，我們可能會對一兩個關鍵客戶非常敏感。但隨著客戶群越來越大，任何單一大客戶對我們總收入的貢獻比例都會越來越低。我認為這與我們的一些同行為互聯網和媒體客戶提供的標準應用解決方案有點不同。我們更加專注於垂直產業，為這些產業提供更多支援人工智慧的雲端解決方案。我認為這是一種更具防禦性的方法和方向，對任何一個或幾個大客戶都不太敏感。

Thank you. Next questions comes from Tian Hou of TH Capital.

謝謝。下一個問題來自泰合資本的天侯。

Yeah, thank you, management, for taking my questions and congratulations on a good quarter. I have a quick question. In the EV car area, there are lots of new players in the market. Let's say Huawei right now is like -- you know announced that they have EV cars. So, I think maybe it is better for the audience and for the Street to understand what's the advantage of Baidu's EV cars compared with other guys? So, that's a simple question. Thank you.

是的，謝謝管理層回答我的問題，並祝賀本季取得良好業績。我有一個簡單的問題。在電動車領域，市場上有許多新參與者。假設華為現在宣布他們有電動車。因此，我認為也許讓觀眾和華爾街更了解百度電動車與其他公司相比的優勢是什麼？這是一個簡單的問題。謝謝。

Yes. I mentioned that we've been investing in this for many years for -- since 2013 and we've accumulated the best-in-class autonomous driving capability. And over the years, Apollo also moved into a more comprehensive platform that offers all kinds of capabilities be it V2X capability or infotainment for individual vehicles. I think at this time, nobody on this planet has a more comprehensive solution than we do for smart EV. That's why we are very confident when we launch our own car, we can provide the best user experience and best price to performance ratio for our consumers.

是的。我提到，自 2013 年以來，我們一直在該領域投資多年，並累積了一流的自動駕駛能力。多年來，Apollo 也進入了一個更全面的平台，提供各種功能，無論是 V2X 功能還是單一車輛的資訊娛樂。我認為目前這個星球上沒有人比我們擁有針對智慧電動車更全面的解決方案。所以我們非常有信心在推出自己的汽車時，能夠提供消費者最好的使用者體驗和最好的性價比。

Our technology is just more advanced and mature than any other people in this industry. And on a broader note, I think Baidu has been investing very aggressively in AI. If you think about autonomous driving, it almost uses all kinds of AI technologies and we've been investing in this for more than 10 years and we spend roughly RMB20 billion in R&D last year. And we will continue to aggressively invest in R&D over the next 10, maybe 20 years and will make sure that our technology -- our AI technology and our autonomous driving technology will continue to lead in this market.

我們的技術比這個行業中的任何其他人都更先進、更成熟。從更廣泛的角度來看，我認為百度一直在積極投資人工智慧。如果你考慮一下自動駕駛，它幾乎使用了各種人工智慧技術，我們已經在這個領域投資了10多年，去年我們在研發上花費了約200億元。我們將在未來 10 年甚至 20 年內繼續大力投資研發，並確保我們的技術——我們的人工智慧技術和自動駕駛技術將繼續在這個市場上保持領先地位。

It's very hard for anyone who comes on the Street new and makes this kind of claims and it's very hard to imagine an EV maker with a smaller market share, let's say if they are Number 4 or Number 5 in terms of market share, they can't afford this kind of continued intensive investment in R&D. And I think it's widely known that autonomous driving will not become mature for the next 10 or even 20 years. So, this kind of sustained intensive investment in R&D is necessary to keep the lead in terms of technology.

對於任何剛進入華爾街並提出此類主張的人來說，這都是非常困難的，而且很難想像一家市場份額較小的電動車製造商，假設他們的市場份額排名第四或第五，他們就無法承擔這種持續的密集研發投資。我認為，眾所周知，自動駕駛在未來 10 年甚至 20 年內都不會成熟。因此，這種持續的密集研發投入對於維持技術領先地位是必要的。

With that, ladies and gentlemen, that does conclude the conference for today. Thank you for your participation. You may now disconnect your lines.

女士們、先生們，今天的會議到此結束。感謝您的參與。現在您可以斷開線路了。

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