百度 (BIDU) 2020 Q2 法說會逐字稿

Hello, and thank you for standing by for second quarter 2020 earnings conference call. (Operator Instructions)

您好，感謝您參加 2020 年第二季財報電話會議。（操作員指示）

Today's conference is being recorded. If you have any objections, you may disconnect at this time.

今天的會議正在錄製中。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 Second Quarter 2020 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2020年第二季業績電話會議。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 Chief Executive Officer; Herman Yu, our Chief Financial Officer; and Dou Shen, our Executive Vice President in charge of Baidu's Mobile Ecosystem group, our search and feed business. After our prepared remarks, we will hold a Q&A session.

參加今天電話會議的有我們的執行長李彥宏；我們的財務長 Herman Yu；以及我們的執行副總裁竇深，負責百度行動生態系統事業部、搜尋和資訊流業務。在我們準備好發言之後，我們將舉行問答環節。

Please note that session 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，今天的會議將包含根據 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。除非適用法律要求，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. We have made minor adjustments to our non-GAAP measures and retroactively applied these changes for comparison purposes. 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。我們對非公認會計準則指標進行了微調，並為了比較目的而追溯應用了這些變更。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, the 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.

大家好。

Baidu's total revenues in the second quarter reached RMB 26.0 billion, declining 1% year- over- year, versus a 7% decline.

百度第二季總營收達260億元，年減1%，季減7%。

Excuse me, presenter. We do not have audio from the outside. Can you unmute locally, please?

不好意思，主持人。我們沒有收到外界的聲音。您能在本地取消靜音嗎？

All right. Let me repeat what I just said. Baidu's total revenues in the second quarter reached RMB 26.0 billion, declining 1% year over year, versus a 7% decline in the first quarter. Baidu Core contributed to the rebound, with the second quarter revenue growing 24% sequentially.

好的。讓我重複一下我剛才說的話。百度第二季總營收為260億元人民幣，較去年同期下降1%，而第一季則下降7%。百度核心為業績反彈做出了貢獻，第二季營收環比成長 24%。

Baidu Core's online marketing services has demonstrated steady improvement since the trough in February, with encouraging recovery across many industries. The second quarter, however, was also met with temporary setbacks, such as new waves of COVID-19 cases appearing in Beijing and other areas of China, where Level 2 pandemic precautionary measures were again put in place. Fast forward to latter half of July, the situation has been improving since then as COVID-19 cases subside.

百度核心的網路行銷服務自2月觸底以來穩步回升，多個行業呈現令人鼓舞的復甦勢頭。但第二季也遭遇了暫時的挫折，北京等地出現新一波疫情，各地再次實施二級疫情防控措施。時間快轉到 7 月下半月，隨著新冠肺炎病例的減少，情況一直在改善。

These positive moves forward, coupled with some temporary setbacks, leave us cautiously optimistic about the business climate in the second half. While COVID-19 geopolitical tension and other phenomenon plaguing the economy may continue to bring about hiccups, the opportunities that AI has presented us are getting more exciting.

這些積極的舉措，加上一些暫時的挫折，讓我們對下半年的商業環境保持謹慎樂觀的態度。儘管新冠疫情、地緣政治緊張局勢和其他困擾經濟的現象可能會繼續帶來阻礙，但人工智慧為我們帶來的機會變得越來越令人興奮。

Our foray into in-app search 3 years ago is proving to redefine how content and services are consumed and allow Baidu to be a competitive force to enable long-tail SMEs to do business online. More than 2/3 of Baidu App users are logging in daily, which not only demonstrates user stickiness, but also indicates greater sense of identity and belonging of Baidu's users. The CPM gap between Baidu App and union traffic continues to widen, in-app revenue makes up the majority of search and feed revenue, and daily in-app search queries outgrowing the total search market in China.

我們三年前進軍應用內搜尋領域，重新定義了內容和服務的消費方式，使百度成為一股競爭力量，幫助長尾中小企業開展線上業務。超過2/3的百度App用戶每天都會登錄，這不僅體現了百度的用戶黏性，也體現了百度用戶對百度的認同感和歸屬感。百度App與聯盟流量的CPM差距持續擴大，應用程式內收入佔搜尋與資訊流收入的絕大部分，每日應用程式內搜尋查詢量超過中國搜尋市場整體成長速度。

Traditional search through a browser directs users away from Baidu, whereas in-app search aggregates third-party content and services onto our platform for a unique closed-loop experience. Users come to Baidu to form relationships with merchants through follow, messaging, live video, shop and so forth.

透過瀏覽器進行的傳統搜尋會將使用者引導出百度，而應用程式內搜尋將第三方內容和服務聚合到我們的平台上，以獲得獨特的閉環體驗。用戶透過關注、留言、影片直播、購物等方式來到百度與商家建立關係。

With users remaining on Baidu after the landing page, we are in a better position to improve user insight and provide superior user experience, such as verifying the merchants, monitoring the content and services on Baidu for better quality, strengthening Baidu's vertical and community offerings, and enabling users to follow, interact and transact with merchants.

隨著用戶在登陸頁面之後繼續留在百度，我們能夠更好地提升用戶洞察力並提供卓越的用戶體驗，例如驗證商家、監控百度上的內容和服務以提高品質、加強百度的垂直和社區產品，並使用戶能夠關注、與商家互動和交易。

From the merchant's perspective, our customers no longer rely on Baidu only for traffic. They are able to build a fan base through our building blocks of BJH accounts, Smart Mini Program and Managed Page, and increase interaction with their fan base through live videos, coupon giveaways and closed-loop transactions, and leverage our marketing services platform for conversion improvement, look-a-like targeting and repeat purchases.

從商家的角度來看，我們的客戶不再只依賴百度的流量。他們可以透過我們的BJH帳戶、智慧小程式和託管頁面建立粉絲群，並透過直播、優惠券贈送和閉環交易增加與粉絲群的互動，並利用我們的行銷服務平台提高轉換率、進行類似定位和重複購買。

Baidu's value proposition, extending from selling traffic to also provide marketing cloud services, to empower merchants consumer relationship management capabilities, makes us more competitive by leveraging Baidu's AI and cloud capabilities. The increasing liveliness of our users, their participation in live broadcasting, e-commerce and other activities provides Baidu an opportunity to leverage our existing traffic, to move beyond marketing services, into membership, online games and other revenue streams.

百度的價值主張從銷售流量延伸到提供行銷雲端服務，為商家的消費者關係管理能力賦能，透過利用百度的人工智慧和雲端功能，讓我們更具競爭力。我們用戶的活躍度不斷提高，他們參與直播、電子商務和其他活動，為百度提供了一個機會，利用我們現有的流量，超越行銷服務，進入會員、線上遊戲和其他收入來源。

Our new AI businesses. Xiaodu Smart devices continue to sell well despite the current economic situation causing headwinds to smartphones and other consumer electronics. Baidu Cloud is leveraging Baidu's leading AI to provide intelligent cloud solutions to enterprises to help them digitize and do more with AI computing. Apollo continues to make advances in autonomous driving and commercialization, particularly in the area of smart transportation, which stands to benefit from the new infrastructure initiative that China is pushing to reignite the economy.

我們的新人工智慧業務。儘管當前經濟狀況為智慧型手機和其他消費性電子產品帶來阻力，但小度智慧型裝置仍然銷售良好。百度雲端利用百度領先的人工智慧技術，為企業提供智慧雲端解決方案，幫助企業實現數位轉型，並利用人工智慧運算做更多的事情。阿波羅在自動駕駛和商業化方面不斷取得進展，特別是在智慧交通領域，這將受益於中國為重振經濟而推動的新基礎設施計畫。

iQIYI weathered another COVID-19-impacted quarter with positive growth year-over-year, reinforcing the belief that online entertainment can fare well in difficult economic times.

愛奇藝安然度過了又一個受新冠疫情影響的季度，實現了同比增長，這強化了人們對在線娛樂在困難的經濟時期能夠表現良好的信念。

Let's begin Baidu's second quarter review with MEG. Baidu App DAUs reached 204 million in June. MAUs were over 0.5 billion, which puts Baidu app in an elite class of top 6 apps in China, ahead of Douyin, Kuaishou, Weibo and other feed apps according to Quest Mobile. In-app user engagement on Baidu App remained strong, with in-app search queries growing 28% year over year in the second quarter, thanks to improving user experience and the expansion of third-party content and services on our platform. Let me talk about video social services and monetization for MEG.

讓我們從MEG開始百度第二季的回顧。6月份，百度App日活躍用戶數達2.04億。根據Quest Mobile的數據，百度應用程式的月活躍用戶超過5億，位列中國前6大應用程式之列，領先抖音、快手、微博和其他資訊流應用程式。百度應用程式的應用程式內用戶參與度依然強勁，第二季應用程式內搜尋查詢年增 28%，這得益於用戶體驗的改善以及我們平台上第三方內容和服務的擴展。我來談談 MEG 的視訊社交服務和貨幣化。

First, on video. Baidu App is becoming a powerful distributor of video content. Video consumption from search increased 81% year-over-year, and videos make up about 70% of the feed consumed.

首先，關於視訊。百度App正在成為強大的影片內容發行者。搜尋中的影片消費量年增了 81%，影片約佔資訊流消費量的 70%。

For Baidu's set of 6 knowledge products, such as Baidu Wiki, Baidu Knows, etc. Video contributed to almost 1/3 of the page views, up from less than 20% at the beginning of the year. Our efforts in fortifying the content on Baidu with video is showing incredible results. For example, in the area of healthcare, PGC videos expanded rapidly, resulting in total video views surging over fivefold from the prior quarter.

針對百度的6大知識產品，例如百度維基、百度知道等。影片貢獻了頁面瀏覽量的近三分之一，而年初這一比例還不到 20%。我們透過影片強化百度內容的努力正在取得令人難以置信的成果。例如，在醫療保健領域，PGC 影片迅速擴張，影片總觀看次數較上一季激增 5 倍以上。

Live streaming is becoming a popular way for professionals to share their content on Baidu. We are making live streaming easy to conduct on our building blocks, especially for nonentertainment-oriented content creators. For example, daily nonentertainment live video sessions on Baidu App surged by more than 4 folds and monthly viewership grew by 80% in the last 3 months. Topical live sessions, such as Baidu Wiki Virtual Zoo, Summer Art Festival and Wandering through Civilization Season 2 attracted over 40 million viewership in the second quarter. Industry experts are also live streaming on Baidu. For example, live video sessions by healthcare experts nearly tripled in the last 3 months, even as COVID-19 subside in China.

直播正在成為專業人士在百度上分享內容的一種流行方式。我們正在使我們的構建模組上的直播變得簡單，特別是對於非娛樂導向的內容創作者。例如，百度App上非娛樂類直播日均播放量在過去3個月內成長了4倍多，每月觀看量增加了80%。百度百科虛擬動物園、夏日藝術節、《文明漫步第二季》等熱門直播節目第二季累積收視超過4,000萬。業界專家也在百度上進行直播。例如，儘管中國的新冠疫情已經消退，但過去 3 個月醫療專家的現場視訊會議數量仍然增加了近兩倍。

Second, on social. We are making it easier for users to interact with content creators and service providers on Baidu through our building blocks. The versatility of Baidu building blocks allows our users, for example, to leave comments on their search results, to interact with content creators or with others who are interested in the same content, in essence building topical communities. Users can follow the content creators for future informational updates. We recently integrated BJH accounts with knowledge products, and interactions between users and content creators within Baidu Knowledge products increased 78% in the last 3 months.

第二，在社交方面。我們正在透過我們的建置模組讓使用者更輕鬆地與百度上的內容創作者和服務提供者互動。百度建構模組的多功能性使我們的用戶可以對其搜尋結果發表評論，與內容創作者或對相同內容感興趣的其他人互動，本質上建立主題社群。用戶可以關注內容創建者以獲取未來的資訊更新。我們最近將 BJH 帳戶與知識產品整合在一起，百度知識產品內使用者和內容創作者之間的互動在過去 3 個月內增加了 78%。

Third, on services. In the second quarter, we added service centers in Baidu App, which allows users to access services from a wide range of merchants and government organizations through a single sign-on, and keep track of their transactions with various service providers through myWallet and myMessage Center. Through myService Center, users can perform a host of third-party services, such as buying tickets for tourist destinations and train rides, making reservations for restaurants and car repairs, checking express delivery status and paying utilities bills, all in Baidu App, without having to download the host apps. Baidu's service offerings will continue to expand, as new players join our Smart Mini Program network.

第三，關於服務。第二季度，我們在百度App中增加了服務中心，用戶可以透過單一登入存取來自眾多商家和政府機構的服務，並透過myWallet和myMessage Center追蹤與各個服務提供者的交易。透過myService Center，用戶可以在百度App中實現購買旅遊景點和火車票、預訂餐廳和汽車維修、查詢快遞狀態、繳納水電費等一系列第三方服務，無需下載主機應用程式。隨著新參與者加入我們的智慧小程式網絡，百度的服務範圍將持續擴大。

Fourth, on monetization. Despite tough macro environment in the first half of this year, Baidu App revenue grew both in Q1 and in Q2. Baidu App's search traffic continues to see healthy growth, and the CPM gap between in-app search and browser search continues widening, validating that Baidu's in-app strategy is coming to fruition.

第四，關於貨幣化。儘管今年上半年宏觀環境嚴峻，但百度App第一季和第二季營收均成長。百度App搜尋流量持續健康成長，應用程式內搜尋與瀏覽器搜尋的CPM差距持續擴大，驗證了百度應用程式內策略正在取得成效。

On the CRM side, when customers buy traffic from Baidu, they can log into our marketing cloud platform, which is upgraded regularly with new features, tools and technology advances, to help them improve ad conversion. By enabling our marketing service customers to perform consumer relationship management, we are transforming search from directing traffic to enabling our customers to engage and improve the life-time value of the consumers they acquire on Baidu.

在 CRM 方面，當客戶從百度購買流量時，他們可以登入我們的行銷雲端平​​台，該平台定期升級新功能、新工具和技術進步，以幫助他們提高廣告轉換率。透過使我們的行銷服務客戶能夠進行消費者關係管理，我們正在將搜尋從引導流量轉變為使我們的客戶能夠參與並提高他們在百度上獲得的消費者的終身價值。

Let me talk about how our building blocks is making verticals and communities more compelling.

讓我來談談我們的建造模組如何使垂直行業和社區更具吸引力。

The health care and wellness industry makes up almost 1/10 of China's GDP. Baidu Health is fortunate to be a top health care and wellness platform in China, and our strong brand has gained further recognition, amid the spread of COVID-19 into a pandemic. Year to date, top tier doctors joining Baidu Health has increased 87%, and our partnership covers the majority of the top hospitals in China.

健康醫療保健產業佔中國GDP的近十分之一。百度健康很幸運能夠成為中國頂級的醫療保健和健康平台，在新冠疫情蔓延成為全球大流行的情況下，我們強大的品牌獲得了進一步的認可。今年以來，加入百度健康的頂級醫生數量增加了87%，合作夥伴涵蓋了中國大部分頂級醫院。

The aggregation of quality healthcare content on Baidu from healthcare expert newsfeeds to short videos to live broadcasting, has increased our healthcare traffic and resulted in online doctor consultation more than doubling from last year. We see such progress to naturally lead to offerings of online prescription, dietary supplements and other related products and services over time, to enable more people in China to access quality health care and wellness services.

百度聚合了醫療專家新聞、短視頻和直播等優質醫療內容，增加了我們的醫療流量，並導致線上醫生諮詢量比去年增加了一倍多。我們看到，隨著時間的推移，這樣的進步將自然地帶來線上處方、膳食補充劑和其他相關產品和服務的提供，從而使更多的中國人民能夠獲得優質的醫療保健和保健服務。

Baidu building blocks are also helping to form topical communities. For example, we hosted approximately 100 live broadcasting sessions conducted by experts on national cultural heritage in the second quarter, which created a community following for jade, antique jewelries and collectibles. Various stakeholders in the community sprouted up on Baidu, such as collectible valuation specialists and merchants selling jade, antique jewelries and collectibles, using live broadcasting, e-commerce and other feature sets on Baidu, to enable long-tail merchants to better monetize on Baidu.

百度建構模組也有助於形成主題社群。例如，我們在第二季度舉辦了約100場由國家文化遺產專家主持的直播課程，為玉器、古董珠寶和收藏品創造了一個社群追隨者。社群中的各種利害關係人在百度上湧現，例如收藏品評估專家以及銷售玉器、古董珠寶和收藏品的商家，他們利用百度的直播、電子商務和其他功能集，使長尾商家能夠更好地在百度上實現貨幣化。

The versatility of Baidu building blocks is also allowing a strong community of students and parents to form on Baidu. For example, students can watch the 400+ live broadcasting sessions offered by over 100 universities and educational experts from our feed and Smart Mini Programs, as well as check their entrance exam scores, research suitable universities and learn about popular majors based on Baidu's big data.

百度建構模組的多功能性也使得百度上形成了一個強大的學生和家長社群。例如，學生可以透過百度資訊流和智慧小程式觀看超過100所大學和教育專家提供的400多場直播，還可以查看自己的入學考試成績、研究合適的大學以及基於百度大數據了解熱門專業。

While at an early stage, we see community formation, from the interplay of Baidu building blocks, as a way to further enrich Baidu's position as a leading knowledge-and-information-centric Internet platform. Empowering content and service providers to monetize on Baidu will ensure a robust and growing content and services ecosystem, paving the way for additional monetization opportunities in the future.

雖然處於早期階段，但我們認為，透過百度建構模組的相互作用，社群的形成可以進一步鞏固百度作為領先的以知識和資訊為中心的網路平台的地位。授權內容和服務提供者在百度上獲利將確保內容和服務生態系統的強勁和不斷增長，為未來更多的獲利機會鋪平道路。

Moving to DuerOS. Xiaodu series of smart displays and smart speakers was the best-selling in the speaker category on JD.com, during the June 18 Shopping Festival. Xiaodu series of smart devices is building a strong brand in the marketplace, with Baidu's leading AI capabilities, such as voice search and multi-input modality. DuerOS skills store now offers over 4,000 skills, in wide breadth of content, including children learning, online games, videos.

遷移至 DuerOS。6·18購物節期間，小度系列智慧顯示器和智慧音箱成為京東音箱類目暢銷產品。小度系列智慧型裝置憑藉百度領先的人工智慧功能（例如語音搜尋和多輸入模式）在市場上打造強大的品牌。DuerOS技能商店目前提供超過4000種技能，內容廣泛，包括兒童學習、線上遊戲、影片。

Turning to Baidu Cloud & AI services. We are at an early stage of intelligent transformation, empowering traditional industries, through the use of AI and their operational data, to increase productivity and improve their service offerings. Businesses are coming to the realization that they have to innovate through AI, or be left behind.

轉向百度雲端和人工智慧服務。我們正處於智慧轉型的早期階段，透過利用人工智慧及其營運數據賦能傳統產業，提高生產力並改善其服務產品。企業逐漸意識到，必須透過人工智慧進行創新，否則就會落後。

While many cloud companies are chasing after scale, in areas such as CDN and IaaS, Baidu Cloud is positioned as a one-stop shop for our customers' cloud needs, and, more importantly, differentiating through intelligent solutions by leveraging Baidu's leading AI, paving the way for long-term growth.

當許多雲端公司都在追求規模化時，在 CDN 和 IaaS 等領域，百度雲的定位是滿足客戶雲端需求的一站式服務平台，更重要的是，透過利用百度領先的人工智慧，透過智慧解決方案實現差異化，為長期成長鋪平道路。

For example, Baidu formed a strategic partnership with China National Building Materials Group, the parent of 13 listed companies, with the aim to leverage Baidu AI PaaS, equipped with big data and IoT edge computing capabilities, to provide intelligent logistics, intelligent factory and industrial autonomous driving. CNBM Group plans to use Baidu AI PaaS, paired with Baidu intelligent map, to improve the routing efficiency of its logistics vehicles and track vehicles whereabouts to improve operational efficiency and reduce production costs.

例如，百度與擁有13家上市公司的中國建築材料集團有限公司達成策略夥伴關係，旨在利用具備大數據和物聯網邊緣運算能力的百度AI PaaS，提供智慧物流、智慧工廠和工業自動駕駛等服務。中國建材集團計畫利用百度AI PaaS，配合百度智慧地圖，提升集團物流車輛的行駛路線效率，追蹤車輛行踪，進而提高營運效率，降低生產成本。

Baidu's AI open platform is built on Baidu Cloud, offering over 260 AI capabilities, which is tapped at peak a trillion times a day, by over 2.1 million developers. This gives Baidu incredible insight on how AI is best used. At the World Artificial Intelligence Conference recently, Baidu ERNIE, our natural language processing framework, earned the highest honorary recognition, the SAIL (Super AI Leader) award. IDC recently published a report ranking Baidu Cloud #1 in China's AI public cloud market in 2019, based on revenue, AI cloud product portfolio and APIs used by developers.

百度AI開放平台依托百度雲，提供超過260項AI能力，日均調用峰值達萬億次，開發者超過210萬。這讓百度對如何最好地利用人工智慧有了深刻的了解。在近日的世界人工智慧大會上，百度自然語言處理框架ERNIE榮獲最高榮譽SAIL（Super AI Leader）獎。IDC近日發布報告，根據營收、AI雲產品組合、開發者使用的API等數據，百度雲位列2019年中國AI公有雲市場第一。

Turning to Apollo. We are making strides in autonomous driving, smart transportation as well as connected vehicles. China's New Infrastructure initiative is promoting municipalities to adopt smart transportation, and Apollo stands to benefit by providing local governments with V2X infrastructure, which supports add-on features, including smart signaling, smart parking and smart buses. To date, we have seen multiple 100 million plus RMB contracts, which reflect how municipal governments are intelligently using technology to improve the living standard of citizens in their community. DuerOS for auto is also a promising market with electrical vehicles becoming ever more popular.

轉向阿波羅。我們在自動駕駛、智慧交通以及車聯網領域取得了長足進展。中國的新基礎設施計畫正在推動各城市採用智慧交通，而阿波羅將透過為地方政府提供 V2X 基礎設施而受益，該基礎設施支援附加功能，包括智慧信號、智慧停車和智慧公車。到目前為止，我們已經看到多個價值超過人民幣1億元的合同，這反映了市政府如何聰明地利用科技來改善社區居民的生活水平。隨著電動車越來越受歡迎，DuerOS 汽車版也是一個前景光明的市場。

Apollo robotaxi operations in Beijing, Changsha and Cangzhou are expanding into larger networks and more complex road conditions, such as downtown streets. In working with Apollo customers, we are gaining valuable experience in the operation of autonomous driving, leading us to believe that the arrival of 5G will bring new opportunities for Apollo, for example, enabling the monitoring of driverless fleets from remote, which will increase the efficiency of auto operation to one person per multiple vehicles.

北京、長沙和滄州的阿波羅自動駕駛計程車營運正在擴展到更大的網路和更複雜的路況，例如市中心街道。在與Apollo客戶合作的過程中，我們在自動駕駛營運方面累積了寶貴的經驗，讓我們相信5G的到來將為Apollo帶來新的機遇，例如可以實現對無人駕駛車隊的遠端監控，從而將自動駕駛營運效率提升到一人多車。

In Q2, we completed the 145,000 square feet "Apollo Park" in Beijing, probably the world's largest autonomous driving and V2X test facilities, which supports associated functions, including testing, operational command center, big data cloud control, vehicle warehousing, maintenance and calibration.

第二季度，我們在北京建造了佔地145,000平方英尺的“阿波羅公園”，這可能是世界上最大的自動駕駛和V2X測試設施，它支援相關功能，包括測試、營運指揮中心、大數據雲控、車輛倉儲、維護和校準。

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。

Thanks, Robin. Hello, everyone. Welcome to Baidu's second quarter 2020 call. All monetary amounts used in my discussion are in RMB, unless stated otherwise.

謝謝，羅賓。大家好。歡迎參加百度2020年第二季電話會議。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。

Baidu's total revenues reached RMB 26.0 billion, or $3.7 billion, decreasing 1% year over year, which is an improvement from last quarter's 7% decline. Our business improvement mainly came from Baidu Core, whose revenue reached RMB 18.9 billion, or $2.7 billion, in the second quarter, decreasing 3% year over year, which is a significant improvement from the 13% decline last quarter.

百度總營收達 260 億元（約 37 億美元），年減 1%，但較上一季 7% 的降幅有所改善。我們的業務改善主要來自“百度核心”，其第二季度營收達到人民幣 189 億元（約 27 億美元），年減 3%，但較上一季 13% 的降幅有顯著改善。

Travel, financial services, franchising, healthcare and auto underperformed in the second quarter, though we are seeing a meaningful recovery in healthcare and franchising, along with real estate and machinery.

旅遊、金融服務、特許經營、醫療保健和汽車行業在第二季度表現不佳，但我們看到醫療保健和特許經營以及房地產和機械行業正在出現顯著復甦。

In-app revenue grew double digits year over year in the second quarter, and made up more than half of our search and feed revenues. The robustness of in-app revenue, and its increasing revenue proportion, will be an important revenue driver for us going forward.

第二季度，應用程式內營收年增兩位數，占我們搜尋和資訊流收入的一半以上。應用內收入的強勁成長及其不斷增加的收入佔比將成為我們未來重要的收入驅動力。

Our new AI businesses also saw strong growth, up double digits year over year, with strength coming from Baidu cloud and smart transportation. Cloud revenue reached RMB 2 billion in the second quarter, and we expect cloud and smart transportation to be important revenue drivers for us going forward.

我們的新人工智慧業務也實現了強勁成長，年成長兩位數，其中百度雲和智慧交通發揮了重要作用。第二季雲端業務收入達到20億元人民幣，我們預期雲端業務和智慧交通將成為我們未來重要的收入驅動力。

iQIYI revenue reached RMB 7.4 billion, up 4% year over year. iQIYI subscribers reached 104.9 million, and its membership revenues was up 19% year over year. iQIYI's ad business was down 28% year over year, impacted by the challenging macro environment and the delayed release of top hits.

愛奇藝營收達到人民幣74億元，較去年成長4%。愛奇藝付費會員數量達到1.049億，會員收入年增19%。受宏觀環境挑戰和熱門作品延遲發布的影響，愛奇藝的廣告業務較去年同期下降 28%。

Non-GAAP cost of revenues was RMB 12.9 billion, down 19% year over year, primarily due to a decrease in traffic acquisition costs, sales tax and surcharges, and costs of goods sold. Traffic acquisition costs decreased primarily due to a double-digit decline in TAC revenue. Our strategy on TAC continues to be optimizing profit, rather than growing TAC revenue at a loss.

非美國通用會計準則營業成本為 129 億元，較去年同期下降 19%，主要由於流量獲取成本、銷售稅金及附加、銷售成本下降。流量獲取成本下降主要是由於 TAC 收入出現兩位數的下降。我們對 TAC 的策略仍然是優化利潤，而不是在虧損的情況下增加 TAC 收入。

Non-GAAP SG&A expenses were RMB 3.9 billion, down 18% year over year, primarily due to less channel spending and promotional marketing, and, to a lesser extent, a decrease in personnel-related expenses.

非美國通用會計準則銷售、一般及行政費用為人民幣 39 億元，較去年同期下降 18%，主要由於通路支出和促銷行銷支出減少，以及人員相關費用減少（但程度較小）。

Non-GAAP R&D expenses were RMB 3.7 billion, down 2% year over year.

非美國通用會計準則研發費用為人民幣37億元，較去年同期下降2%。

Non-GAAP operating income for Baidu was RMB 5.6 billion, up 187% year over year. Non-GAAP operating income for Baidu Core was RMB 6.5 billion, or $917 million, up 86% year over year. Non-GAAP operating margin for Baidu Core was 34%, up 16 points from last year.

百度非美國通用會計準則營業利潤為人民幣56億元，較去年同期成長187%。百度核心的非美國通用會計準則營運利潤為人民幣 65 億元（約 9.17 億美元），較去年同期成長 86%。百度核心的非美國通用會計準則營業利益率為34%，較去年同期成長16個百分點。

Adjusted EBITDA was RMB 7.0 billion, up 109% year over year. Adjusted EBITDA for Baidu Core was RMB 7.8 billion or US$1.1 billion, up 63% year over year; and adjusted EBITDA margin for Baidu Core was 41%, up 17 points from last year.

調整後EBITDA為人民幣70億元，較去年成長109%。「百度核心」調整後EBITDA為人民幣78億元（約11億美元），較去年同期成長63%；百度核心調整後EBITDA利潤率為41%，較去年同期上升17個百分點。

As of June 30, 2020, cash and short-term investments was RMB 154.1 billion. Cash and short-term investments for Baidu Core was RMB 144.6 billion or US$20.5 billion. Free cash flow was RMB 7.3 billion, and free cash flow for Baidu Core was RMB 8.8 billion or US$1.2 billion.

截至2020年6月30日，現金及短期投資為人民幣1,541億元。百度核心的現金和短期投資為人民幣 1,446 億元或 205 億美元。自由現金流為人民幣 73 億元，百度核心自由現金流為人民幣 88 億元或 12 億美元。

Baidu Core had approximately 29,300 full-time employees, as of June, down 2% from last year.

截至 6 月份，百度核心全職員工約 29,300 人，較去年同期下降 2%。

During the second quarter, we returned $540 million to shareholders under the 2020 Stock Repurchase Program, and cumulatively over the last two years, we repurchased approximately USD$1.9 billion. Our board recently approved a change to our 2020 share repurchase plan, increasing the buyback approval from US$1 billion to US$3 billion, which is effective through the end of 2022.

在第二季度，我們根據 2020 年股票回購計畫向股東返還了 5.4 億美元，在過去兩年中，我們累積回購了約 19 億美元。我們的董事會最近批准了 2020 年股票回購計畫的修改，將回購批准金額從 10 億美元增加到 30 億美元，有效期至 2022 年底。

Turning to third quarter guidance. We expect total revenues to be between RMB 26.3 billion and RMB 28.7 billion, representing a growth rate of -6% to 2% year over year. Our guidance assumes Baidu Core will grow between -7% and 3% year over year. These forecasts are our current and preliminary view, which is subject to substantial uncertainty.

轉向第三季指引。我們預計總收入將在人民幣 263 億元至人民幣 287 億元之間，年增 -6% 至 2%。我們的預測是，百度核心的年增長率將在 -7% 至 3% 之間。這些預測是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 second quarter achievements.

在我將電話轉回接線生之前，讓我總結一下我們第二季的成就。

Our strategy to strengthen Baidu's mobile ecosystem, through our building blocks and marketing cloud platform is bearing fruit. More than 2/3 of Baidu App users are logging in daily, compared to 51% a year ago. In-app search queries continue to grow above 20% year over year, and CPM in in-app search continues to widen against traditional browser search.

我們透過建構模組和行銷雲端平​​台加強百度行動生態系統的策略正在取得成果。超過2/3的百度App用戶每天都會登錄，而一年前這一比例為51%。應用程式內搜尋查詢量持續維持年增 20% 以上，應用程式內搜尋的 CPM 與傳統瀏覽器搜尋的差距持續拉大。

Content and services are expanding at an incredible rate on Baidu. BJH content network now holds 3.4 million publisher accounts, up 52% year over year, and the number of SMPs joining Baidu network grew over 5 folds from last year.

百度上的內容和服務正在以驚人的速度擴張。BJH內容網絡目前擁有340萬個發布商帳戶，年增52%，加入百度網路的SMP數量較去年增加了5倍多。

The increase in services, along with improvements in social, video and monetization feature sets, including live streaming and shopping, is making Baidu platform more lively and interactive, and more conducive to doing business for long-tail SMEs. Verticals and communities are forming, which further enhance closed-loop transactions and down-the-marketing-funnel opportunities in the future.

服務的增加，以及社交、視訊和貨幣化功能（包括直播和購物）的改進，使百度平台更加活躍和互動，更有利於長尾中小企業開展業務。垂直行業和社區正在形成，這將進一步增強未來的閉環交易和行銷通路機會。

In-app revenue is growing double digits and making up a majority of search and feed revenues. In-app revenue, together with new AI businesses, will be respectable growth engines for Baidu in the years to come.

應用程式內收入正在以兩位數成長，並佔搜尋和資訊流收入的大部分。應用內收入以及新的人工智慧業務將成為未來幾年百度可觀的成長引擎。

Our strong execution is also reflected by our results of increasing non-GAAP operating margin for Baidu Core by 16 points year over year, and adjusted EBITDA margin for Baidu Core by 17 points. Such strong operating results from Baidu Core is an indication of Baidu's prudent approach to investments and growing quality revenues. In uncertain macro-economic environment, it is important to recognize the importance of growing profitable revenue, vs. growing revenue at all costs. Over time, we believe the true measure of value creation is the ability to increase cash flow to our shareholders.

我們的強勁執行力也體現在我們的業績上：百度核心的非 GAAP 營業利潤率年增 16 個百分點，百度核心調整後 EBITDA 利潤率年增 17 個百分點。百度核心如此強勁的營運表現反映了百度對投資的審慎態度以及不斷增長的優質收入。在不確定的宏觀經濟環境中，認識到增加獲利收入的重要性，而不是減少利潤，這一點很重要。不惜一切代價增加收入。隨著時間的推移，我們相信，衡量價值創造的真正標準是增加股東現金流的能力。

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

接線員，好了，我們現在開始提問。

(Operator Instructions)

（操作員指示）

First question comes from the line of Piyush from Goldman.

第一個問題來自高盛的 Piyush。

I really have one question centered around how your business has been recovering into the third quarter. You mentioned, Herman, that medical has started coming into its own, which is very encouraging. Could you give us a sense of what percentage or some scale of how much it's come back and how much further we can expect it to come back in the coming quarters based on the guidance you've set for 3Q?

我有一個問題，是關於您的業務在第三季如何復甦的。赫爾曼，您提到醫療已經開始發揮作用，這是非常令人鼓舞的。根據您為第三季設定的指導，您能否告訴我們它回升了多少百分比或規模，以及我們預計它在未來幾季還會回升多少？

And related to the guidance and the medical, you talked about some of the other verticals where you're in the earlier stage of recovery. Can you give us a feel for how long that might take to come back? And essentially, give us a feel for how the broader economy has been performing?

關於指導和醫療，您談到了處於恢復早期階段的其他一些垂直領域。您能告訴我們恢復需要多長時間嗎？從本質上來說，能讓我們了解整體經濟的表現如何嗎？

And I know you said one question only, but there is a pronounced improvement in your gross margin in 2Q over the first quarter and versus the past. Are the gains you're seeing on the operating profit level sustainable?

我知道您只問了一個問題，但是與第一季和過去相比，您們第二季的毛利率有明顯的增加。您所看到的營業利潤水準的成長是否可持續？

Piyush, well, that's a mouthful of questions here. Let me see what I can do. With regards to health care, as I mentioned, when you look at on a year-over-year basis, we're still down significantly double digits. But when you look at how we're recovering on a sequential basis, we've come back pretty significantly. And we expect, at this current rate that health care should probably be as good as last year. Probably sometime in Q3, given the current trajectory.

皮尤什，嗯，這裡有一堆問題。讓我看看我能做什麼。關於醫療保健，正如我所提到的，如果與去年同期相比，我們的收入仍然大幅下降了兩位數。但當你觀察我們連續復甦的情況時，就會發現我們已經恢復得相當顯著了。我們預計，以目前的速度，醫療保健水平可能與去年一樣好。按照目前的發展軌跡來看，很可能是在第三季的某個時候。

We're also seeing several other verticals at the same trend. And that's why when you look at our guidance in Q3, you're seeing us doing better on a year-over-year basis than Q2. And Q2 is assuming we hit midpoint and then Q2 is much better than Q1.

我們也看到其他幾個垂直產業也呈現相同的趨勢。這就是為什麼當您查看我們第三季的指導時，您會看到我們的年比表現比第二季更好。假設我們達到中點，那麼 Q2 就會比 Q1 好得多。

So I think, on a whole, the trend is right. And as I mentioned in the prepared remarks, given this COVID-19 pandemic, we have seen a second wave coming back to Beijing. So the assumption here is that we will continue to have smooth sailing and that we don't have further ways to disrupt the economy because part of our business relies on the fact that stores need to be open, so they'll come to Baidu to buy traffic to their stores.

所以我認為，整體來說，趨勢是正確的。正如我在準備好的發言中提到的那樣，鑑於此次新冠肺炎疫情，我們已經看到第二波疫情捲土重來。因此，這裡的假設是，我們將繼續順利航行，並且我們沒有進一步擾亂經濟的方式，因為我們的部分業務依賴商店需要營業的事實，所以他們會來百度購買商店流量。

With regards to gross margin and operating margin, I think that you can probably expect the savings that we had in the last few quarters, as we talked about this last year in May, we promised you that we will go through our operations and look at where we should put our investment on that would have higher ROIs. We followed through 6 months after that. And you saw, starting from Q4 last year, that we had a pretty lean P&L. And we've been going through with this strategy in Q1 and again in Q2. So you should expect us to continue into Q3 and Q4.

關於毛利率和營業利潤率，我想您可能可以預期我們在過去幾個季度中實現的節省，正如我們去年 5 月談到的那樣，我們向您承諾，我們將仔細檢查我們的營運情況，並研究應該將投資放在哪裡才能獲得更高的投資回報率。此後我們又追蹤了 6 個月。您會發現，從去年第四季開始，我們的損益表就相當精簡。我們在第一季和第二季都實施了這項策略。所以你應該期待我們繼續進入第三季和第四季。

I would say that part of Q2 cost structure, though, is the fact that several things to look at, for example, sales and marketing, that's a function of whether we can actually spend, right. If our revenue is coming in hard, it probably would be hard for us to spend on marketing, whether it's promotions or whether it's trying to buy more app installations because less smartphones are being sold. So as it kind of gets back, there's more app installation we could buy with higher ROIs we're going to continue to buy.

不過，我想說，第二季成本結構的一部分是需要考慮的幾個因素，例如銷售和行銷，這取決於我們是否真的有能力花錢，對吧。如果我們的收入很難，那麼我們可能很難在行銷上花錢，無論是促銷還是試圖購買更多的應用程式安裝，因為智慧型手機的銷量減少了。因此，隨著它的恢復，我們可以購買更多的應用程式安裝，並獲得更高的投資回報率，我們將繼續購買。

And then similarly, going into Q3, Q4, it was hard to do interviews, especially for people to come into the office. But as China opens up, we're going to be able to do that and we're going to be able to hire and go according to our budget. So I would say that going from Q2 to Q3, you should expect our cost of sales and operating expenses on a non-GAAP basis for Baidu Core to increase probably 10 to in the teens. I would say that's probably a good way to gauge this.

同樣，進入第三季、第四季後，面試就變得很困難，尤其是對於來辦公室的人來說。但隨著中國的開放，我們將能夠做到這一點，我們將能夠根據我們的預算進行招募和營運。因此，我想說，從第二季度到第三季度，你應該預期百度核心的非 GAAP 銷售成本和營運費用可能會增加 10% 到 15%。我想說這可能是衡量這一點的好方法。

Next question comes from the line of Eddie Leung of Bank of America.

下一個問題來自美國銀行的 Eddie Leung。

Just 2 questions. Number one, could you comment on your thought about the potential combination of Tencent and one of your competitors? Would that change the competitive landscape and how Baidu can address the potential changes?

僅 2 個問題。第一，您能否評論一下對於騰訊和您的競爭對手的潛在合併的看法？這會改變競爭格局嗎？百度將如何因應潛在的改變？

And then number two, probably more a housekeeping question. You mentioned that the COVID situation in Beijing affected the second quarter Core business. So just wondering, could you help us to get a sense of potential impact? And how much exposure of the Core business to the advertisers in Beijing, for example?

第二個問題可能更像是常規問題。您提到北京的新冠疫情影響了第二季的核心業務。我只是想知道，您能幫助我們了解潛在的影響嗎？例如，核心業務對北京的廣告商的曝光率是多少？

Thank you for the question, Eddie. I'll take the first one. So it is actually not new, between Sogou and Tencent. So they have been working together for a long while. I think it is not new in terms of the collaboration.

謝謝你的提問，艾迪。我要第一個。所以，搜狗和騰訊的合作其實不新鮮。所以他們已經合作了很久了。我認為就合作而言這並不是什麼新鮮事。

So actually, in the mobile era, users usually remember each app by its key feature, and Baidu App has clearly established the brand as the #1 general search engine. So I think such brand awareness is very hard to duplicate. And what's more for Baidu, we have moved to the Baidu App strategy to build our ecosystem within the app.

因此實際上，在行動時代，用戶通常會根據每個應用程式的主要功能來記住它，而百度應用程式已明確確立了其作為第一大通用搜尋引擎的品牌地位。所以我認為這樣的品牌知名度很難複製。對百度來說，我們已經轉向百度App策略，在App內部建構我們的生態系統。

So with that, actually, we have already improved user experience from the traditional general search engine. It is not just for users to get information, but also help the users to experience the closed-loop experience, to complete the tasks in their minds, not only for service, but also even for shop online. So the more we build our ecosystem, the more good features we can present to the users. So with that, I think Baidu will keep leading innovations in search market and keep doing well.

因此，實際上，我們已經改善了傳統通用搜尋引擎的使用者體驗。它不只是讓用戶獲取信息，更要幫助用戶體驗閉環，完成他們心中的任務，不僅是服務，甚至是在線購物。因此，我們的生態系統建設得越好，我們就能提供使用者越多好的功能。因此，我認為百度將繼續引領搜尋市場的創新並保持良好的表現。

Let me add to what Dou just said, Eddie. So it's important to understand the different product positioning, right? For example, WeChat is a social network. So the purpose of the social network is to get people together. You try to connect people with other people that are known. The purpose of search is not trying to connect people to people. It's trying to connect people to certain content, whether it's text, whether it's a photo, whether it's a video.

艾迪，讓我補充一下竇剛才說的話。所以了解不同的產品定位很重要，對嗎？例如，微信是一個社交網路。所以社交網路的目的就是讓人們聚集在一起。您嘗試將人們與其他認識的人聯繫起來。搜尋的目的不是試圖將人與人聯繫起來。它試圖將人們與某些內容聯繫起來，無論是文字、照片還是影片。

So when you go, for example, into a social network, you have their newsfeed, and what you want to do is usually trying to just kind of get a very quick update and you want to go through a lot of various feeds. Whereas, when you're going into search, sometimes you're interested in a topic. As we mentioned in prepared remarks by Robin, we have people listening to live broadcasting for maybe an hour on a certain topic. You won't want just very rich content. Usually, it's from whether a social account or certain apps. And we have a Managed Page, whether it's some website.

因此，例如，當您進入社交網路時，您會獲得他們的新聞提要，而您想要做的通常只是嘗試快速獲取更新，並且您想要瀏覽大量不同的新聞提要。然而，當您進行搜尋時，有時您會對某個主題感興趣。正如我們在羅賓的準備好的發言中提到的那樣，我們有人可能會花一個小時的時間收聽有關某個主題的現場直播。您不會只想要非常豐富的內容。通常，它來自社交帳戶或某些應用程式。我們有一個管理頁面，無論它是某個網站。

So the more information you have on that specific content, the deeper you could dive in that a person who's doing the search would feel more comfortable that they have well-informed information.

因此，您擁有的有關特定內容的資訊越多，您就可以深入了解得越深，進行搜尋的人會更放心，因為他們擁有充分的資訊。

So when you start building a lot of search functions in a social app, you might be good at search, but you will lose that social function. So it's a question of whether Tencent wants to make their social product more search-oriented and search-centric and less social. Because if they start doing that, then they leave the door open for someone to build a better social product.

因此，當您開始在社交應用程式中建立大量搜尋功能時，您可能會擅長搜索，但您會失去社交功能。所以問題在於騰訊是否想讓他們的社群產品更加以搜尋為導向、以搜尋為中心，而減少社交性。因為如果他們開始這樣做，那麼他們就會為別人打造更好的社群產品敞開大門。

And then, exposure to Beijing, perhaps?

然後，也許可以去北京看看？

Yes. The exposure from Beijing is not very significant to our overall revenue, but it will have some [influence] (added by the company after the call) because some of our advertisers are in the north part of China. So I would say, probably, it's in the single-digit rather than more significant than that.

是的。來自北京的曝光對我們的整體收入來說並不是很重要，但它會產生一些影響（公司在電話會議後補充），因為我們的一些廣告商在中國北部。所以我想說，很可能，它是一位數，而不是更重要的。

Next question comes from the line of Alicia Yap of Citi.

下一個問題來自花旗銀行的 Alicia Yap。

My question is related to the revenue from the Managed Page, which, this quarter, increased to 30%, right, of the core marketing revenue. Is there a time frame that you anticipate all the app revenues to be fully migrate to the 100% Managed Page? Is it feasible?

我的問題與託管頁面的收入有關，本季託管頁面的收入佔核心行銷收入的 30% 左右。您是否預計所有應用程式收入將在某個時間範圍內完全遷移到 100% 託管頁面？可行嗎？

So out of the merchants that previously on H5 websites, what is the percentage of the merchants that already switched over to the Managed Page versus those yet to shift over?

那麼之前H5網站的商家中，已經轉移到管理頁的商家和還未轉移的商家的比例是多少呢？

And then just quickly follow-up. Can you describe the advertiser sentiment? Do you feel that the attitude of the spending has dramatically changed or affected in the last 2 months in light of another layer of the U.S. and China tension?

然後快速跟進。能描述一下廣告商的情緒嗎？您是否覺得，鑑於中美關係緊張的另一層因素，過去兩個月對支出的態度發生了巨大變化或影響？

I will start with the first part. So actually, in Robin's opening remarks, he has already mentioned about the percentage of the spending on the Managed Pages. So in the beginning for the Managed Pages, our intention is to make the experience for the users safer and to get more true information. But later on, we are seeing more and more advertisers. Actually, they start to use the Managed Page by themselves without our enforcement. So this is because we are adding more and more features to the Managed Pages so they can significantly improve their ROI.

我先從第一部分開始。實際上，在 Robin 的開場白中，他已經提到了託管頁面支出的百分比。因此，在管理頁面的初期，我們的目的是為使用者提供更安全的體驗並獲得更真實的資訊。但後來，我們看到越來越多的廣告商。實際上，他們在沒有我們強制要求的情況下就開始自行使用託管頁面。這是因為我們正在為託管頁面添加越來越多的功能，以便他們可以顯著提高投資回報率。

So in terms of the number of advertisers adopting Managed Pages, and it is even higher numbers because Managed Pages now can help the niche to easily do the business on our products. So that's why we were seeing more and more advertisers. They are adopting Managed Pages by themselves.

因此，就採用託管頁面的廣告商數量而言，這個數字甚至更高，因為託管頁面現在可以幫助利基市場輕鬆地在我們的產品上開展業務。這就是為什麼我們看到越來越多的廣告商。他們自己正在採用託管頁面。

And I think with more features and more advertisers realizing the advantage of the Managed Pages, the rate for adaptation will be even higher or faster.

我認為，隨著功能的增加和越來越多的廣告商認識到託管頁面的優勢，適應的速度將會更高或更快。

Yes. And let me add to that, Alicia. Your question was, do we have a set target for Managed Page? We don't have a set target. I think as we mentioned many times, using our building blocks, the idea is that if we can get content on Baidu's platform, we'll have better user insight, we can provide better user experience, right?

是的。讓我補充一點，艾莉西亞。您的問題是，我們是否為託管頁面設定了目標？我們沒有設定目標。我認為，正如我們多次提到的那樣，使用我們的構建模組，我們的想法是，如果我們能夠在百度平台上獲取內容，我們將有更好的用戶洞察力，我們可以提供更好的用戶體驗，對嗎？

So the idea is not to have 100% of our revenue from Managed Page, but to have it from Managed Page, to have it from Smart Mini Program because that's content services from other apps, to have it from Baijiahao so that we can promote creators and publishers and so forth.

因此，我們的想法不是將 100% 的收入都來自託管頁面，而是從託管頁面、從智能小程式（因為這是來自其他應用程式的內容服務）獲取收入，從百家號獲取收入，以便我們能夠推廣創作者和出版商等等。

So obviously, the more of that, the better. But because we are a search engine, we're an open app, we want to also be able to search content that's not on our platform, so you have the worldwide web. So I think the goal is trying to have as much of the worldwide web on our platform so that we can improve user experience, not just on Managed Page. And we're seeing a lot of content coming over to Baidu platform since we've been focusing on this, strengthening our mobile ecosystem.

顯然，越多越好。但因為我們是一個搜尋引擎，我們是一個開放的應用程序，我們希望也能夠搜尋不在我們平台上的內容，這樣你就有了萬維網。因此，我認為我們的目標是嘗試將盡可能多的全球網路納入我們的平台，以便我們能夠改善用戶體驗，而不僅僅是在託管頁面上。我們看到很多內容湧入百度平台，因為我們一直專注於此，加強我們的行動生態系統。

With regards to advertiser sentiment on geopolitical tension. We think that currently, our advertisers' sentiment is more a function of the economy in China, is more of a function of the kind of policies we have, allowing people to actually go to stores, to the shops outside and so forth. So as China opens up more, as people have more opportunity to run about, I think our business will come back. I don't think right now geopolitical tension has a meaningful impact on our business so far.

關於廣告商對地緣政治緊張局勢的情緒。我們認為，目前，我們的廣告商的情緒更取決於中國的經濟狀況，更多地取決於我們所採​​取的政策，允許人們真正去商店、去外面的商店等等。因此，隨著中國進一步開放，人們有更多的機會外出活動，我認為我們的業務將會復甦。我認為目前地緣政治緊張局勢不會對我們的業務產生重大影響。

Next question comes from the line of James Lee of Mizuho.

下一個問題來自瑞穗的詹姆斯李 (James Lee)。

Great. Herman, I was wondering maybe you can comment on the Baidu App, DAU decline sequentially. Is it more due to suspension of your app? Or is this because more people returning back to work here? And just curious, are you taking any initiatives to drive DAU growth in the second half? Or do you feel you have the critical mass at this point in time?

偉大的。Herman，我想知道您是否可以評論一下百度應用程式的 DAU 是否連續下降。這是否更多是由於您的應用程式被暫停？還是因為有更多的人返回這裡工作？我很好奇，您是否採取了什麼舉措來推動下半年的 DAU 成長？或者您覺得您現在是否已經達到臨界質量了？

And also secondly, regarding the SEC inquiry on iQIYI and its independent review. I'm just curious how involved is the Baidu management in the process. And especially on the internal review side, such as selecting the adviser here to make sure it's credible and impartial process for this important matter.

其次，關於美國證券交易委員會對愛奇藝的調查及其獨立審查。我只是好奇百度管理階層在這個過程中參與程度如何。特別是在內部審查方面，例如選擇顧問以確保這一重要事項的可信和公正的流程。

Okay. So James, let me answer the first question. I'll answer in part, and then I'll turn over to Dou to answer the second part, which is how do we improve our DAU growth and so forth.

好的。詹姆斯，讓我來回答第一個問題。我先回答一部分，然後交給竇老師來回答第二部分，也就是我們如何提高我們的DAU成長等等。

So as you know, China was hit hard by COVID-19 in first quarter. I think we came to probably the trough of our economy, and people were very stringent with social distancing in February. And even going into March, people were actually the same, and you can see that throughout China. So a lot of stores didn't open up and a lot of people were staying home. You don't have schools open.

如你所知，中國在第一季受到了新冠疫情的嚴重打擊。我認為我們的經濟可能已經跌至低谷，二月人們對保持社交距離的措施非常嚴格。即使進入三月份，人們的情況實際上也是一樣的，你可以在中國各地看到這種情況。因此很多商店沒有開門，很多人都待在家裡。你們沒有學校開學。

So when you compare that, our DAU reported in the third month of each quarter. So when you compare March to June, obviously, in June, you have seen a lot of places in China opening up, a lot of stores opening up, some of the schools opening up. So I think the big differentiation between March and June is the fact that people were running about outside of their house. And as a result, they have probably less time spent on their app.

因此，當您比較時，我們的 DAU 會在每個季度的第三個月報告。因此，當你將三月與六月進行比較時，顯然，在六月份，你會看到中國很多地方開放了，很多商店開放了，一些學校開放了。所以我認為三月和六月之間的最大區別在於人們在屋外跑來跑去。結果，他們花在應用上的時間可能就更少了。

So when you look at basically the top apps in China, QuestMobile is a good example, you can see that it's not just Baidu App. It's a pretty consistent trend with all the top apps that March is very high, and going into June, you're just going to have less traffic. I think with the companies that just reported over the last few days, you're seeing the same trend.

因此，當你查看中國頂級應用程式時，QuestMobile 就是一個很好的例子，你會發現它不僅僅是百度應用程式。對於所有熱門應用程式來說，這是一個相當一致的趨勢，即 3 月份的流量非常高，而進入 6 月份，流量就會減少。我認為，從過去幾天發布報告的公司來看，你會看到同樣的趨勢。

With that, let me turn it over to Dou and talk about what we're doing to improve DAU growth.

接下來，讓我把話題交給竇先生，談談我們為提高 DAU 成長所做的工作。

Okay. So we do have many approaches to work out, to address this issue, right. So as we said, we are adding more and more content and services to the app, right, so that we can increase the engagement between the users and our product. So this will help us to get users being longer and more frequent on this app. And also we are adding more features, not only content and service, but also more new features to this product for a different group of users.

好的。所以我們確實有很多方法可以解決這個問題，對吧。正如我們所說，我們正在為應用程式添加越來越多的內容和服務，以便我們可以增加用戶和我們產品之間的互動。因此，這將幫助我們讓用戶更長時間、更頻繁地使用該應用程式。而我們也為該產品添加了更多功能，不僅是內容和服務，還有更多新功能，以滿足不同用戶群的需求。

So now, we are developing some specific products for the colleges. When they come back to universities, campus, they are going to have a chance to use our newer product. So with that, I think we already see the trend coming back. But for now, because it's in the summer break, so we are going to see how our solutions will work or not in the near future.

所以現在，我們正在為高校開發一些特定的產品。當他們回到大學、校園時，他們將有機會使用我們更新的產品。因此，我認為我們已經看到趨勢回歸。但現在正值暑假，所以我們將在不久的將來看看我們的解決方案是否有效。

Yes. And let me comment on the iQIYI SEC investigation. At Baidu, we have zero tolerance for fraud. When there is a short seller or issue against a subsidiary, it's actually 'one that's quite autonomous. It is important to get an independent opinion. The Audit Committee of iQIYI stepped in, and they summoned the internal audit as well as hired an independent external adviser. This process is part of good corporate governance, and we think this validation process is important to earn investors' trust.

是的。讓我對愛奇藝美國證券交易委員會的調查發表評論。在百度，我們對詐欺行為零容忍。當有賣空者或針對子公司的問題時，它實際上是「一個相當自主的子公司」。獲得獨立的意見很重要。愛奇藝審計委員會介入，召集了內部審計並聘請了獨立的外部顧問。這個過程是良好公司治理的一部分，我們認為這個驗證過程對於贏得投資人的信任非常重要。

Since I am part of the parent company, I am not directly involved in the independent investigation, and thus, I am not in a position to comment on iQIYI's situation, specifically. Perhaps I can talk about my understanding of how the process usually works.

由於我是母公司的一部分，沒有直接參與獨立調查，因此我無法對愛奇藝的情況進行具體評論。也許我可以談談我對過程通常如何運作的理解。

In addition to looking at the short-seller report, it is customary for independent external advisers to also perform forensic procedures on the rest of the financial numbers, which means the process will take time. The fact that the SEC is involved, they may ask the independent external adviser questions, and the independent external adviser may end up doing additional procedures. With COVID-19 in the backdrop, one should expect this process to be longer than normal.

除了查看賣空者報告外，獨立外部顧問通常還會對其餘財務資料進行取證程序，這意味著該過程需要時間。事實上，美國證券交易委員會 (SEC) 參與其中，他們可能會向獨立外部顧問提出問題，而獨立外部顧問最終可能會採取額外的程序。在新冠疫情的背景下，人們應該預期這個過程會比平常更長。

In past cases, without a pandemic, we have seen investigations lasting months and sometimes beyond a year. The positive side is that we have a very qualified independent external adviser looking into this situation. Typically, if evidence comes to light, that there is reasonable doubt to believe the company is fraudulent and that the numbers are not reliable, then the company's auditor will pull their audit opinion and withdraw from the engagement.

在過去的案例中，在沒有大流行的情況下，我們看到調查持續數月甚至有時超過一年。積極的一面是，我們有一位非常合格的獨立外部顧問正在調查這種情況。通常情況下，如果有證據表明有合理理由懷疑該公司存在欺詐行為，且數據不可靠，那麼該公司的審計師將撤回其審計意見並退出業務。

Again, having an independent set of eyes reviewing this situation is meant to put the allegations to rest. At Baidu, we will take action to ensure good corporate governance, if necessary, and operate with our interest in mind. Only this way, will we be able to tap the capital markets in the future. I hope this answers your question.

再次強調，讓獨立機構審查這一情況是為了平息這些指控。在百度，如有必要，我們將採取行動確保良好的公司治理，並以我們的利益為出發點開展業務。只有這樣，未來我們才有可能在資本市場上有所作為。我希望這能回答你的問題。

My first one is about your marketing or non-advertising services. So as mentioned in the press release, your AI, your cloud-related business as well as smart transportation, have become important revenue driver in the quarter. So in the future, let's see a 5-year or 3-year horizon, do you think this non-advertising business revenue can be kind of possible to exceed your current advertising revenue someday?

我的第一個問題是關於您的行銷或非廣告服務。如新聞稿中所提到的，你們的人工智慧、雲端相關業務以及智慧交通已成為本季重要的收入驅動力。那麼在未來，讓我們來看看 5 年或 3 年的時間跨度，您認為這種非廣告業務收入有一天有可能超過您目前的廣告收入嗎？

And a quick follow-up for your share repurchasing. So the amount was raised from $1 billion to $3 billion. I know you have a rich onshore cash position in RMB, and you also recently finished the $1 billion debt offering. So do you have a plan to convert RMB more into U.S. dollar for the buyback? Or issuing more debts or other measures to leave the money for the buyback?

並快速跟進您的股票回購。因此金額從 10 億美元增加到 30 億美元。我知道你們在境內擁有大量的人民幣現金，而且你們最近還完成了 10 億美元的債券發行。那麼，您是否有計劃將更多的人民幣兌換成美元用於回購？或發行更多債券或採取其他措施來留出資金用於回購？

Greg, thanks for your questions. With regards to how significant our non-AI businesses or non-ad business can be, I think what it will do is to become an important growth driver for us.

格雷格，謝謝你的提問。關於我們的非人工智慧業務或非廣告業務有多重要，我認為它將成為我們重要的成長動力。

As you can see, Baidu Core is non-advertising piece. It's getting bigger and bigger. It's pretty significant now. And because of the size, we think there's potential to really help drive overall growth of our business. And we talked about in my prepared remarks that just the cloud business alone, we're talking about RMB 2 billion in a year this quarter. Obviously, when you add on the other businesses such as the Xiaodu speakers， you're talking about smart transportation and so forth, and the size is bigger than that.

如您所見，百度核心是非廣告部分。它變得越來越大。現在這非常重要。而且由於規模龐大，我們認為它有潛力真正推動我們業務的整體成長。我在準備好的發言中提到，光是雲端業務一項，本季的年收入就達到了 20 億元。顯然，如果再加上小度音箱等其他業務，那麼智慧交通等業務的規模就更大了。

With regards to our share repurchase program, where we expanded from USD 1 billion to USD 3 billion, we have several ways of getting US dollars. Obviously, we just raised the bond earlier this year, billed all in US. We can also do several things, as you mentioned. One is to convert RMB into USD, and obviously, we'll take advantage of that when the opportunity arises.

關於我們的股票回購計劃，我們從 10 億美元擴大到 30 億美元，我們有幾種方式來獲取美元。顯然，我們今年早些時候剛發行了債券，全部以美元結算。正如您所說，我們還可以做幾件事。一是將人民幣兌換成美元，顯然，當機會出現時，我們會利用這個機會。

The second thing we can also do is to sell down our investments, and we've been steadily doing that. We look at the current market prices and so forth and then we look at our US dollar cash needs, and we'll sell our investment down as appropriate if we feel like there's no strategic need for the previous investments.

我們還可以做的第二件事是出售我們的投資，我們一直在穩步地這樣做。我們會查看當前的市場價格等，然後查看我們的美元現金需求，如果我們認為先前的投資沒有策略性需要，我們會適當地出售我們的投資。

Move on to the next questions once again from Tian Hou of T.H. Capital.

再次進入 T.H. 的 Tian Hoo 的提問環節。首都。

So my question is related to your investment. So if I look at your business, we can literally separate them as one part is consumer facing, let's say, your three building blocks. And the other part is business facing. That's your cloud, AI, Apollo. So I can imagine each of those areas you can do a great deal. so what's the plan? What's your investment plan in the second half or next year? And if you have to rank them, what is your priority investment?

我的問題與您的投資有關。因此，如果我看一下您的業務，我們可以將它們從本質上分開，因為一部分是面向消費者的，可以說是您的三個構建塊。另一部分是面向業務的。這就是你的雲、AI、Apollo。因此我可以想像，在每個領域你都可以做很多事。那麼計劃是什麼？下半年或明年有什麼投資計畫？如果必須對它們進行排名，您的優先投資是什麼？

Tian, this is Robin. Let me try to answer your question. I think our consumer-facing business and business-facing business are all great businesses. They each have their own potential. The consumer-facing ones, during the prepared remarks as well as the answers from Dou and Herman, you can see that there are still a lot of things we can do, especially using technology, to provide better content and services to our users, and provide better conversions for our advertisers.

田，這是羅賓。讓我嘗試回答你的問題。我認為我們面向消費者的業務和麵向企業的業務都是偉大的業務。他們每個人都有自己的潛能。面向消費者的部分，在準備好的發言以及竇文濤和何先生的回答中，你可以看到我們還有很多事情可以做，特別是利用技術，為我們的用戶提供更好的內容和服務，並為我們的廣告商提供更好的轉換。

But for the business-facing opportunities, this sector will grow apparently faster than the consumer-facing ones, and we will continue to aggressively invest in areas we picked. And these areas will grow year after year for many years. And we are leading in almost all the categories we decide to get in for the business-facing opportunities.

但對於面向企業的機會，該領域的成長速度顯然會比面向消費者的機會更快，我們將繼續積極投資於我們選擇的領域。而且這些地區在未來很多年都會逐年成長。我們在幾乎所有面向商業機會的類別中都處於領先地位。

Yes. And let me just add to that, Tian. We talked about priorities. I think it's been pretty clear. We've been very consistent with our priorities. When you look at our 2C business, it's in-app services, right? And then outside of our AI businesses, we talked about the 3 businesses that we have. And particularly, cloud, it's at a bigger scale. And it's a huge market, and we do have our advantage of having a leading AI capability.

是的。讓我補充一點，田。我們討論了優先事項。我認為已經很清楚了。我們的優先事項始終如一。當您查看我們的 2C 業務時，它是應用程式內服務，對嗎？然後，除了我們的人工智慧業務之外，我們還討論了我們的三項業務。尤其是雲端運算，它的規模更大。這是一個巨大的市場，我們確實擁有領先的人工智慧能力的優勢。

So with the AI businesses, in addition to in-app services or our top priorities. And I think among the AI businesses, they're all growing nicely. And then I think cloud is the biggest scale, and that's probably something that we will put more emphasis on.

因此，除了應用程式內服務之外，人工智慧業務也是我們的首要任務。我認為人工智慧業務都發展良好。然後我認為雲端是最大的規模，這可能是我們會更加重視的事情。

The last question comes from Binnie Wong of HSBC.

最後一個問題來自匯豐銀行的 Binnie Wong。

So congrats on the earnings beat with a meaningful margin improvement.

因此，恭喜您的獲利超出預期，利潤率也顯著提高。

The question here is on the Smart Mini Program. Looking at our competitive strategy that is Mini Program and social network actually work nicely together to sustain the relationship with the users, and advertiser can actually feel it's that private domain. So how would that change the advertising industry landscape and then also our positioning in the Smart Mini Program?

這裡的問題是關於智慧小程式的。從我們的競爭策略來看，小程式和社交網路實際上可以很好地協同工作以維持與用戶的關係，廣告商實際上可以感受到它是私人領域。那麼這將如何改變廣告產業格局以及我們在智慧小程式中的定位？

And then a quick follow-up here is that I recall, Robin, in your opening remarks, you mentioned that video is accounting for 70% of the feeds. So I wonder if you can discuss more about the pricing. Because, again, your competitor mentioned that the shift from banner ads towards feeds has seen like a meaningful increase in the pricing. So do you think this is also going to be one of our drivers into the second half and do you see a faster revenue growth from here?

然後這裡的快速跟進是，我記得，羅賓，在你的開場白中，你提到影片佔了資訊流的 70%。所以我想知道您是否可以進一步討論有關定價的問題。因為，您的競爭對手再次提到，從橫幅廣告轉向資訊流已經導致價格顯著上漲。那麼您是否認為這也將成為我們下半年的驅動力之一？您是否認為從現在開始營收成長會更快？

For the Smart Mini Program, as Robin already mentioned, so we see the increase in terms of MAU, monthly active user. Actually, if we would talk about the time spent on the Smart Mini Programs, the growth is even much higher. So it means that Smart Mini Program is leading to higher engagement between the users and the service providers. So we have already seen the numbers of the transactions through the Mini Programs and also the budget dollars used in our Smart Mini Program as the landing page for their campaigns. And then the amount of the transactions, I mean, in terms of the GMVs, are also growing.

對於智慧小程序，正如 Robin 已經提到的，我們看到 MAU（每月活躍用戶）有所增加。實際上，如果我們談論在智慧小程式上花費的時間，成長甚至更高。所以這意味著智慧小程式正在提高用戶和服務提供者之間的互動度。因此，我們已經看到了透過小程式進行的交易數量，以及在我們的智慧小程式中用作其活動登陸頁面的預算金額。然後，交易量，我的意思是，就 GMV 而言，也在成長。

So we see pretty good trends for the Smart Mini Programs in our ecosystem. And then all this happens because it is providing better user experience to users. And it's a good way to connect with users and the service providers. So later on, we are going to share more information and data about the Smart Mini Programs.

因此，我們看到生態系統中的智慧小程式呈現相當良好的趨勢。這一切的發生是因為它為用戶提供了更好的用戶體驗。這是一種連接用戶和服務提供者的好方法。所以稍後我們會分享更多關於智慧小程式的資訊和數據。

And then with that, I will turn it to Robin for the second one.

然後，我將把第二個問題交給羅賓。

Yes, on the video content for advertisers, it's also very effective for our advertisers as well as users.

是的，對於廣告商來說，影片內容對我們的廣告商和用戶來說也是非常有效的。

It improves the conversion for many of our advertisers. Therefore, as you know, most of our advertisers were at budget performance-oriented. So the pricing for app created for this video content is generally higher than the average. Is that what you're asking?

它提高了我們許多廣告商的轉換率。因此，如您所知，我們的大多數廣告商都是以預算效果為導向的。因此，針對此類視訊內容創建的應用程式的定價通常高於平均水平。這就是你要問的嗎？

Binnie, do you have anything to add?

Binnie，你還有什麼要補充的嗎？

Yes. I was just asking in terms of the pricing, because we are seeing more video advertising. So thank you for the color on the conversion. But what about on the pricing side? Do you think we can also charge higher pricing with the video ads on the ECPM side from better ads. And then that should help us to be another growth driver into second half?

是的。我只是想問定價問題，因為我們看到越來越多的影片廣告。非常感謝您對轉換顏色的貢獻。但定價方面又如何呢？您是否認為我們也可以透過 ECPM 方面的影片廣告收取比更好的廣告更高的價格？那麼這是否有助於我們成為下半年的另一個成長動力？

Yes. The simple answer is yes, because the advertisers are mostly performance driven. When we can improve the conversion through video or through other means, the pricing will follow.

是的。簡單的答案是肯定的，因為廣告商大多以效果為導向。當我們可以透過影片或其他方式提高轉換率時，定價就會隨之提高。

Thank you very much, management, for the answers.

非常感謝管理層的回答。

Ladies and gentlemen, that does conclude our 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。