百度 (BIDU) 2021 Q4 法說會逐字稿

Hello, and thank you for standing by for Baidu's Fourth Quarter and 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，感謝您等待百度第四季度及 2021 年財報電話會議。 （操作員說明）今天的會議正在錄製中。如果您有任何異議，您可以在此時斷開連接。

I'd now like to turn the meeting over to your host for today's conference, Juan Lin, Baidu's Director of Investors Relations.

我現在想將會議轉交給今天會議的主持人，百度投資者關係總監林娟。

Hello, everyone, and welcome to Baidu's Fourth Quarter and Fiscal Year 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，歡迎來到百度 2021 年第四季度及財年財報電話會議。百度的財報發佈於今天早些時候，您可以在我們的網站以及新聞專線服務上找到一份副本。

On the call today, we have Robin Li, our Co-Founder and CEO; Rong Luo, our CFO; Dou Shen, our EVP in charge of Baidu Mobile Ecosystem; and Zhen-Yu, our SVP in charge of Baidu Intelligent Driving. After our prepared remarks, we will hold a Q&A session.

今天的電話會議是我們的聯合創始人兼首席執行官李彥宏；我們的首席財務官羅榮；我們負責百度移動生態系統的執行副總裁竇深；以及我們負責百度智能駕駛的高級副總裁甄宇。在我們準備好發言後，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 HKEX. Baidu does not undertake any obligation to update any forward-looking statements, except as required under applicable law.

請注意，今天的討論將包含根據 1995 年美國私人證券訴訟改革法案的“安全港”條款做出的前瞻性陳述。前瞻性陳述受風險和不確定性的影響，可能導致實際結果與我們目前的期望。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陳述的義務。

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

我們的收益新聞稿和本次電話會議包括對某些未經審計的非公認會計原則財務措施的討論。我們的新聞稿包含未經審計的非公認會計原則措施與未經審計的最直接可比的公認會計原則措施的對賬，可在我們的投資者關係網站 ir.baidu.com 上查閱。

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

提醒一下，本次會議正在錄製中。此外，本次電話會議的網絡直播將在百度 IR 網站上提供。

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

我現在將把電話轉給我們的首席執行官 Robin。

Hello, everyone. We delivered solid results in 2021. Revenues from Baidu Core were up 21% year-over-year in 2021, driven by a 71% increase in non-ad revenue, which accounted for 22% of Baidu Core revenue, up from 16% in 2020. Within the non-ad business, our cloud revenues consistently showed outstanding growth throughout the year and, in our estimates, outgrow the cloud market in China. Furthermore, Apollo Go scaled up its operation and delivered key milestones to drive the long-term commercialization of our autonomous ride-hailing services.

大家好。我們在 2021 年取得了穩健的業績。2021 年百度核心的收入同比增長 21%，這得益於非廣告收入增長 71%，佔百度核心收入的 22%，高於 2021 年的 16% 2020 年，在非廣告業務中，我們的雲收入全年持續呈現顯著增長，據我們估計，其增長速度超過了中國雲市場。此外，Apollo Go 擴大了運營規模並實現了關鍵里程碑，以推動我們的自動乘車服務的長期商業化。

Today, I'll review our operation by walking through our AI Cloud, intelligent driving, DuerOS and Mobile Ecosystem business in 2021. And after that, I will discuss our priorities in 2022.

今天，我將回顧我們在 2021 年的 AI Cloud、智能駕駛、DuerOS 和移動生態系統業務的運營情況。然後，我將討論我們在 2022 年的優先事項。

Starting with AI Cloud. We achieved strong revenue growth in 2021. The growth rate of Baidu AI Cloud has accelerated from 2020 on, and we believe it has been meaningfully higher than its peers. We made great strides in several industries, notably transportation, manufacturing, public service sector, and energy and utilities. Total revenues from these industries more than doubled in the year, driving our cloud business growth.

從人工智能雲開始。我們在 2021 年實現了強勁的收入增長。百度 AI 雲的增長率從 2020 年開始加速，我們認為它明顯高於同行。我們在多個行業取得了長足的進步，特別是交通運輸、製造、公共服務部門以及能源和公用事業。這些行業的總收入在這一年增長了一倍以上，推動了我們的雲業務增長。

I'll share with you on some of our latest developments in the above vertical. In the energy and utilities sector, State Grid has been utilizing our AI Cloud since 2020 to perform early detection of malfunctioning equipment and estimate utility demand to ensure a consistent electricity supply. By now, we have covered almost 90% of its branches nationwide.

我將與您分享我們在上述垂直領域的一些最新發展。在能源和公用事業領域，自 2020 年以來，國家電網一直在利用我們的人工智能雲來對故障設備進行早期檢測並估算公用事業需求，以確保持續的電力供應。目前，我們已經覆蓋了全國近90%的分支機構。

In the manufacturing industry, Baidu AI Cloud has expanded into Chongqing, a major manufacturing hub in China, enabling automated workflow processes and helping to improve operational efficiency. In Chongqing, we serve the Liangjiang new area, which hosts thousands of enterprises, including some top automakers and electronic companies.

在製造業方面，百度人工智能雲已擴展到中國主要的製造業中心重慶，實現自動化工作流程並幫助提高運營效率。在重慶，我們服務於兩江新區，這裡有數千家企業，包括一些頂級汽車製造商和電子公司。

More broadly, we observe an increasing adoption of AI in China. According to IDC, the PaddlePaddle, Baidu's open-source deep learning platform, continues to gain market share. Our internal data show that by the end of last year, PaddlePaddle developer community has grown to 4.1 million, and served 157,000 businesses. And in the same time frame, developers have created 476,000 models based on the platform.

更廣泛地說，我們觀察到中國越來越多地採用人工智能。據 IDC 稱，百度的開源深度學習平台 PaddlePaddle 繼續獲得市場份額。我們的內部數據顯示，截至去年底，PaddlePaddle 開發者社區已經發展到 410 萬，服務了 15.7 萬家企業。在同一時間框架內，開發人員基於該平台創建了 476,000 個模型。

Meanwhile, in ACE smart transportation, we continued to expand our footprint geographically. By year-end last year, Baidu ACE has been adopted by 35 cities, up from 14 a year ago. Based on contract amounts of over RMB 10 million, 94% of cities that had purchased our solutions in 2020 expanded their collaboration with us in 2021. Revenues from smart transportation have been growing rapidly, and more than doubled in 2021 versus the prior year.

同時，在ACE智能交通方面，我們繼續在地域上擴大我們的足跡。截至去年年底，百度ACE已被35個城市採用，高於一年前的14個。從合同金額來看，2020年94%購買了我們解決方案的城市在2021年擴大了與我們的合作。智能交通的收入增長迅速，2021年同比增長一倍以上。

Next, in Intelligent Driving. Apollo Go continued to take big steps towards scalable operation of its autonomous ride-hailing services. We believe that large-scale operation allows us to identify the problems that are not visible during testing stage, and also push the Level 4 autonomous driving technology advancement. In the fourth quarter last year, Apollo Go advanced -- Apollo Go provided 213,000 rides and, once again, almost doubled its rides quarter-over-quarter, reaffirming our leadership position in the global autonomous ride-hailing market. Apollo Go is now available in 8 cities: Beijing, Shanghai, Guangzhou, Shenzhen, Chongqing, Changsha, Cangzhou and Yangquan. Meanwhile, we have begun to charge fees for the autonomous ride-hailing service on open roads since November 25th, 2021, in Beijing and February 18th, 2022, in Chongqing and February 27th, 2022, in Yangquan.

接下來是智能駕駛。 Apollo Go 繼續朝著其自動乘車服務的可擴展運營邁出一大步。我們相信，大規模的運營可以讓我們發現測試階段看不到的問題，也可以推動4級自動駕駛技術的進步。去年第四季度，Apollo Go 取得了進步——Apollo Go 提供了 213,000 次乘車服務，並且再次環比增長了近一倍，再次確認了我們在全球自動駕駛網約車市場的領先地位。 Apollo Go 現已在北京、上海、廣州、深圳、重慶、長沙、滄州和陽泉 8 個城市推出。同時，自2021年11月25日起，北京、2022年2月18日、2022年2月18日、2022年2月27日，陽泉開始對開放道路上的自動駕駛網約車服務收費。

Baidu has been working hard to improve the safety performance and maximize the efficiency of autonomous driving by synergizing our ACE smart transportation solution, autonomous vehicles, maps and cloud services. Our Beijing project is a case in point. About one year ago, we built ACE smart transportation and introduced Apollo Go in Yizhuang region of Beijing. Currently, almost 100 vehicles are providing autonomous ride-hailing services in Yizhuang on a daily basis and we have started charging passengers. At the same time, our ACE smart transportation solution has expanded its coverage almost to 10 fold in terms of intersections in Yizhuang area over the past year, providing extra support for Apollo Go. We believe that the Beijing project serves as a showcase for other cities to follow and replicate.

百度一直致力於通過協同我們的ACE智能交通解決方案、自動駕駛汽車、地圖和雲服務來提高自動駕駛的安全性能並最大限度地提高自動駕駛效率。我們的北京項目就是一個例子。大約一年前，我們在北京亦莊地區建立了ACE智能交通並引入了Apollo Go。目前，亦莊每天有近100輛汽車在提供自動駕駛服務，我們已經開始向乘客收費。同時，我們的ACE智慧交通解決方案在過去一年也將亦莊地區的路口覆蓋率擴大了近10倍，為Apollo Go提供了額外的支持。我們相信北京項目可以作為其他城市效仿和復制的典範。

As intelligent and connected vehicles are taking the center stage of auto sales, Baidu's autonomous driving solutions have won increasing acceptance among automakers. We believe that we will gain further traction as more automakers recognize that partnering with Baidu is better than investing extensively in developing their in-house solutions. Recently, we received a nomination letter from BYD, one of China's largest automotive and technology companies, intending to adopt ASD, in particular, ANP and AVP for multiple popular models.

隨著智能網聯汽車成為汽車銷售的中心舞台，百度的自動駕駛解決方案越來越受到汽車製造商的認可。我們相信，隨著越來越多的汽車製造商認識到與百度合作比廣泛投資開發其內部解決方案更好，我們將獲得進一步的牽引力。最近，我們收到了中國最大的汽車和科技公司之一比亞迪的提名信，打算在多款熱門車型中採用 ASD，尤其是 ANP 和 AVP。

In DuerOS, Xiaodu again was ranked No.1 in smart display globally and No.1 in smart speaker in China, based on the first nine-month shipment data last year, according to Strategy Analytics, Canalys and IDC. Xiaodu revenues continued to grow rapidly. At the same time, we are pleased to note that our services revenue already surpassed 10% of Xiaodu revenues last year.

根據Strategy Analytics、Canalys和IDC的數據，根據去年前9個月的出貨量數據，在DuerOS中，小度再次蟬聯全球智能顯示第一、中國智能音箱第一。小度收入繼續快速增長。同時，我們很高興地看到，去年我們的服務收入已經超過小度收入的 10%。

Finally, in Mobile Ecosystem, Solid user growth demonstrated continuous expansion of our mobile ecosystem. In December, Baidu App's MAU accelerated year-over-year growth rate to 14%, reaching 622 million. Daily logged-in users on Baidu App already surpassed 80%. Users are not only coming to Baidu to search information but increasingly to enjoy the diversified formats of content and close-loop services accessible using Baidu App. Through a search on our building blocks, users now can enjoy a full service cycle from information search to fact checking to interaction with industry participants and to purchasing products and services without leaving Baidu App.

最後，在移動生態系統中，穩定的用戶增長證明了我們移動生態系統的持續擴張。 12月，百度App的MAU同比增速加快至14%，達到6.22億。百度App每日登錄用戶已超過80%。用戶來百度不僅是為了搜索信息，越來越多地通過百度App享受到內容形式多樣的內容和閉環服務。通過搜索我們的積木，用戶現在可以在不離開百度App的情況下享受從信息搜索到事實核查到與行業參與者互動再到購買產品和服務的完整服務週期。

In services, our instant replies to search queries cover over 40,000 industry participants from 19 verticals in the fourth quarter. Total daily instant replies increased about 60% from September to December. In particular, daily telehealth consultations on Baidu Health grew to 2.4 million in the fourth quarter 2021. That's up 62% from last year. Monthly orders for local services, such as moving services and home repair services, within Baidu App multiplied 5 fold year-over-year in December. E-commerce GMV facilitated by Baidu, though still small, grew about 5 fold in the fourth quarter compared to the first quarter of last year.

在服務方面，我們對搜索查詢的即時回复在第四季度覆蓋了來自 19 個垂直行業的 40,000 多名行業參與者。從 9 月到 12 月，每日即時回复總數增加了約 60%。特別是百度健康的每日遠程醫療諮詢在 2021 年第四季度增長到 240 萬，比去年增長 62%。 12 月，百度 App 內本地服務（如搬家服務和上門維修服務）的月度訂單同比增長 5 倍。百度推動的電子商務GMV雖然仍然很小，但與去年第一季度相比，第四季度增長了約5倍。

Furthermore, in 2021, we further diversified the formats of video content offerings within Baidu App. In 2021, we introduced a fully immersive video experience that combines horizontal and vertical short videos in an endless flow. This and other enhancements have significantly improved short video viewership and driven up ad conversion within Baidu App.

此外，2021年，我們進一步豐富了百度App內的視頻內容提供形式。 2021 年，我們推出了一種完全沉浸式的視頻體驗，將橫向和縱向的短視頻結合在一個無窮無盡的流程中。這一改進和其他改進顯著提高了短視頻的收視率，並推動了百度 App 內的廣告轉化。

In monetization, Managed Page continued to make progress. Revenues from Managed Page grew by 52% in 2021, and reached 40% of Baidu Core advertising. While Baidu Core ad revenues increased by 12% in 2021, macro weakness and COVID-19 resurgence have impacted the ad industry in late 2021. In the fourth quarter, our ad revenues declined by 2% quarter-on-quarter, with year-over-year growth slowing down to 1%.

在貨幣化方面，託管頁面繼續取得進展。託管頁面的收入在 2021 年增長了 52%，達到了百度核心廣告的 40%。雖然百度核心廣告收入在 2021 年增長了 12%，但宏觀疲軟和 COVID-19 復甦在 2021 年末影響了廣告行業。第四季度，我們的廣告收入環比下降 2%，同比下降- 年增長率放緩至 1%。

Going into 2022. China is determined to promote technological innovation and upgrade the traditional industries. Such strategic goals were promoted during China's 14th 5-year plan and re-emphasized by the General Office of State Council in early January of this year. In addition, the Beijing municipal government recently released its 2021 work report, emphasizing the target to accelerate the construction of a holistic transportation system containing intelligent vehicles, smart transportation, cloud and map as well as leading the development of high-level autonomous driving nationally in 2022.

邁入2022年，中國決心推進科技創新，提升傳統產業。這些戰略目標在中國“十四五”規劃期間得到推進，今年1月初國務院辦公廳再次強調了這一戰略目標。此外，北京市政府近日發布2021年工作報告，強調加快構建智能車、智慧交通、雲、地圖的整體交通體系，引領全國高水平自動駕駛發展。 2022 年。

Navigating in this favorable operating environment, Baidu will continue to leverage our world-class AI capabilities to grow our non-ad business, which is a clear growth engine for our overall revenue. For the coming year, we have set the 4 -- the following operational priorities: For AI Cloud, we aim to sustain above-industry level revenue growth. We will continue to bring our innovation in AI to various traditional industries and the public service sector, enabling our customers to improve efficiency and boost productivity. We believe we will be able to make further breakthroughs in more verticals.

在這種有利的運營環境中，百度將繼續利用我們世界一流的人工智能能力來發展我們的非廣告業務，這顯然是我們整體收入的增長引擎。對於來年，我們設定了以下 4 個運營重點： 對於 AI Cloud，我們的目標是保持高於行業水平的收入增長。我們將繼續將我們在人工智能方面的創新帶到各個傳統行業和公共服務領域，使我們的客戶能夠提高效率和提高生產力。我們相信我們將能夠在更多的垂直領域取得進一步的突破。

For intelligent driving, we will further scale up the Apollo Go operations to provide rides to more passengers. We will steadily work towards the goals of removing the safety drivers and providing fully autonomous ride-hailing services in China.

在智能駕駛方面，我們將進一步擴大 Apollo Go 運營，為更多乘客提供乘車服務。我們將穩步朝著消除安全駕駛員和在中國提供全自動乘車服務的目標努力。

We will continue to expand our partnership with more automakers in ASD, in particular, ANP and AVP to enable them to be better positioned in the evolving auto industry. As a result, we expect to further drive up our pipeline. Jidu plans to take orders in the second half of 2022 after launching its first concept production car in Beijing auto show April of this year and aim to deliver mass production in 2023.

我們將繼續在 ASD 領域擴大與更多汽車製造商的合作夥伴關係，特別是 ANP 和 AVP，使他們能夠更好地在不斷發展的汽車行業中定位。因此，我們希望進一步推動我們的管道。繼今年4月在北京車展推出首款概念量產車後，極都計劃在2022年下半年接單，併計劃在2023年實現量產。

For Xiaodu, we will seek quality revenue growth and margin improvement. Xiaodu has already completed two roundup financing.

對於小度，我們將尋求高質量的收入增長和利潤率提升。小度已經完成了兩次圍捕融資。

For Mobile Ecosystem, we will continue to leverage AI to improve the user experience in search and feed, and further build closed-loop services within Baidu App to fulfill user needs. In addition, we focused on a healthy and sustainable business model in order to consistently generate strong cash flow to power our investment in new AI businesses.

移動生態方面，我們將繼續利用人工智能提升搜索和信息流的用戶體驗，進一步在百度App內構建閉環服務，滿足用戶需求。此外，我們專注於健康和可持續的商業模式，以持續產生強勁的現金流，為我們對新人工智能業務的投資提供動力。

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

有了這個，讓我把電話轉給 Rong 來了解我們的財務亮點。

Thank you, Robin. Now, let me walk you through the details of our fourth quarter and full year 2021 financial results.

謝謝你，羅賓。現在，讓我帶您了解我們第四季度和 2021 年全年財務業績的詳細信息。

We closed 2021 with solid financial results. Baidu Core's Q4 revenue was RMB 26 billion, increasing 12% year-over-year. In 2021, Baidu Core generated RMB 95 billion or USD 15 billion in revenue, up 21% year-over-year. Non-ad business grew very fast and reached 26% of Baidu Core revenues in the fourth quarter, up from 18% a year ago, demonstrating how our previous investments in AI have built a new growth engine for Baidu now as well as for the mid-to-long term. For the full year 2021, non-ad business accounted for 22% of Baidu Core revenues, up from 16% in 2020. Within the non-ad business, Baidu AI Cloud is a clear revenue growth driver. Revenues from Baidu AI Cloud increased by 60% year-over-year to RMB 5.2 billion in Q4 and was up by 64% year-over-year to RMB 15.1 billion in 2021, non-IaaS accounted for more than half of the Baidu AI Cloud revenues.

我們以穩健的財務業績結束了 2021 年。百度核心第四季度營收為人民幣260億元，同比增長12%。 2021年，百度核心實現收入950億元人民幣或150億美元，同比增長21%。非廣告業務增長非常迅速，在第四季度達到百度核心收入的 26%，高於一年前的 18%，這表明我們之前在人工智能方面的投資如何為百度現在和中期建立了新的增長引擎- 長期。 2021 年全年，非廣告業務佔百度核心收入的比重為 22%，高於 2020 年的 16%。在非廣告業務中，百度人工智能雲是明顯的收入增長動力。百度AI雲第四季度營收同比增長60%至52億元人民幣，2021年同比增長64%至151億元人民幣，非IaaS佔百度AI的一半以上雲收入。

Our IaaS business is benefiting from multi-cloud strategies adopted by many of our customers. Our non-IaaS business profited from Baidu's strong AI capabilities and upgrade of China's traditional industries. As Robin mentioned earlier, Baidu AI Cloud made great strides in several industries. Total revenues from transportation, manufacturing, the public service sectors and energy and utilities industries more than doubled in the year. Looking ahead, we aim to sustain above-industry revenue growth for Baidu AI Cloud.

我們的 IaaS 業務受益於我們許多客戶採用的多雲戰略。我們的非IaaS業務受益於百度強大的人工智能能力和中國傳統產業的升級。正如羅賓之前提到的，百度人工智能雲在多個行業取得了長足的進步。交通運輸、製造業、公共服務業以及能源和公用事業行業的總收入在這一年增長了一倍以上。展望未來，我們的目標是維持百度人工智能雲高於行業的收入增長。

Excluding Baidu AI Cloud, Baidu Core non-ad business includes intelligent driving as well as other growth initiatives, intelligent driving mainly composes of revenue from ASD, including HD Maps, automated valet parking, AVP, and autonomous navigation pilot ANP, and our autonomous ride-hailing fleets. Xiaodu is an important component in other grow initiatives. Xiaodu continued to achieve solid revenue growth.

除百度AI雲外，百度核心非廣告業務包括智能駕駛以及其他增長舉措，智能駕駛主要來自ASD的收入，包括高清地圖、自動代客泊車、AVP和自動導航試點ANP，以及我們的自動乘車- 歡呼艦隊。小度是其他成長計劃的重要組成部分。小度繼續實現穩健的收入增長。

Ad revenue grew by 12% year-over-year in 2021. In Q4, ad revenue was up 1% year-over-year yet decreased by 2% quarter-over-quarter due to softness in the macro environment and the COVID-19 resurgence. Our ad business was impacted by significant headwinds in sectors, such as education, real estate, franchising, health care and travel, and may remain challenging in the near term. With that said, our advertising business should remain relatively resilient and should recover once the macro environment starts to improve. In addition, we expect revenue diversification to continue with non-ad business exhibiting strong growth.

2021 年廣告收入同比增長 12%。由於宏觀環境疲軟和 COVID-19，第四季度廣告收入同比增長 1%，但環比下降 2%再起。我們的廣告業務受到教育、房地產、特許經營、醫療保健和旅遊等行業的重大不利因素的影響，短期內可能仍面臨挑戰。話雖如此，我們的廣告業務應該保持相對彈性，一旦宏觀環境開始改善，應該會恢復。此外，我們預計收入多元化將繼續，非廣告業務表現出強勁增長。

iQIYI revenue was RMB 7.4 billion in Q4, decreasing 1% year-over-year. iQIYI revenue was RMB 30.6 billion in 2021, increasing 3% year-over-year. Cost of revenue, RMB 17.3 billion in Q4, up 19% year-over-year, primarily due to an increase in traffic acquisition costs, bandwidth costs, cost of goods sold and other costs related to the new AI businesses. Cost of revenue was RMB 64.3 billion in 2021, increasing 17% year-over-year, primarily due to an increase in content costs, traffic acquisition costs, bandwidth costs, cost of goods sold and other costs related to the new AI business.

愛奇藝第四季度營收為人民幣74億元，同比下降1%。愛奇藝2021年營收306億元，同比增長3%。第四季度收入成本為人民幣 173 億元，同比增長 19%，主要是由於流量獲取成本、帶寬成本、銷售成本以及與新 AI 業務相關的其他成本的增加。 2021年收入成本為人民幣643億元，同比增長17%，主要是由於內容成本、流量獲取成本、帶寬成本、銷售成本以及與新人工智能業務相關的其他成本增加。

Operating expenses were RMB 13.8 billion in Q4, up 29% year-over-year, which was primarily due to an increase in channel spending, promotional marketing and personnel-related expenses. Operating expenses were RMB 49.7 billion in 2021, up 32% year-over-year, which was primarily due to an increase in channel spending, promotion and marketing and personnel-related expenses.

第四季度運營費用為人民幣138億元，同比增長29%，主要是由於渠道支出、促銷營銷和人員相關費用的增加。 2021年營業費用為人民幣497億元，同比增長32%，主要是由於渠道支出、促銷和營銷以及人事相關費用的增加。

Non-GAAP operating income was RMB 4.3 billion in Q4, and non-GAAP operating margin was 13%. Non-GAAP Baidu Core operating income was RMB 4.8 billion, and operating margin was 19%. Non-GAAP operating income was RMB 19 billion in 2021. Non-GAAP Baidu Core operating income was RMB 22.2 billion. And non-GAAP Baidu Core operating margin was 23% in 2021.

第四季度非美國通用會計準則營業收入為人民幣 43 億元，非美國通用會計準則營業利潤率為 13%。 Non-GAAP百度核心營業收入為人民幣48億元，營業利潤率為19%。 2021年非美國通用會計準則營業收入為190億元人民幣。非美國通用會計準則百度核心營業收入為222億元人民幣。 2021 年非 GAAP 百度核心營業利潤率為 23%。

Adjusted EBITDA was RMB 5.8 billion, and adjusted EBITDA margin was 17% in Q4. Adjusted EBITDA for Baidu Core was RMB 6.2 billion or USD 974 million, and adjusted EBITDA margin for Baidu Core is 24%. Adjusted EBITDA was RMB 24.9 billion or USD 3.91 billion, and adjusted EBITDA margin was 20% in 2021. Adjusted EBITDA for Baidu Core was RMB 27.7 billion or USD 4.34 billion, and adjusted EBITDA margin for Baidu Core was 29%.

調整後 EBITDA 為人民幣 58 億元，第四季度調整後 EBITDA 利潤率為 17%。百度核心調整後 EBITDA 為人民幣 62 億元或 9.74 億美元，百度核心調整後 EBITDA 利潤率為 24%。 2021年調整後EBITDA為人民幣249億元或39.1億美元，調整後EBITDA利潤率為20%。百度核心調整後EBITDA為人民幣277億元或43.4億美元，百度核心調整後EBITDA利潤率為29%。

In 2021, we continue to invest in new AI businesses, including AI Cloud, intelligent driving and smart assistants. While the non-GAAP operating margin for Baidu Core decreased from 2020, our investment result in the rapid growth of non-ad revenue. Overall, we expect our ad business to continue generating cash flow to support the rapid growth of our non-advertising AI business. For Baidu AI Cloud, we are trying to retain rapid revenue growth for 2020 -- for 2022 and beyond.

2021年，我們繼續投資新的人工智能業務，包括人工智能雲、智能駕駛和智能助手。雖然百度核心的非美國通用會計準則營業利潤率從 2020 年開始下降，但我們的投資導致非廣告收入快速增長。總體而言，我們預計我們的廣告業務將繼續產生現金流，以支持我們非廣告人工智能業務的快速增長。對於百度人工智能雲，我們正努力在 2020 年——2022 年及以後保持快速的收入增長。

Cash and short-term investments for Baidu Core as of December 31, 2021, were RMB 186.5 billion or USD 29.27 billion. Free cash flow for Baidu, excluding iQIYI, was RMB 15.4 billion or USD 2.4 billion in 2021. Baidu Core had approximately 39,600 employees as of December 31, 2021.

截至 2021 年 12 月 31 日，百度核心的現金和短期投資為 1865 億元人民幣或 292.7 億美元。百度（不包括愛奇藝）在 2021 年的自由現金流為 154 億元人民幣或 24 億美元。截至 2021 年 12 月 31 日，百度核心擁有約 39,600 名員工。

A few words on unlocking value of other new businesses. A number of our younger businesses are seeing exciting development. In 2021, we completed fund raising for Xiaodu and Baidu Kunlun. In late January 2022, Jidu closed its Series A financing and raised nearly USD 400 million.

關於釋放其他新業務的價值的幾句話。我們的一些年輕企業正在看到令人興奮的發展。 2021年，我們完成了小度、百度崑崙的募資。 2022年1月下旬，極度完成A輪融資，融資近4億美元。

An update on our share repurchase program. We returned USD 615 million to shareholders in Q4, bringing the cumulative repurchase of approximately USD $1.2 billion in 2021. As of year-end 2021, we have returned approximately USD 2.9 billion to shareholders under the 2020 share repurchase program, which authorized a total of USD 4.5 billion. Taking into account the practice of other U.S.-listed companies that are listed on Hong Kong Exchange, the company has decided not to provide a guidance on the company's revenues going forward.

我們股票回購計劃的更新。我們在第四季度向股東返還了 6.15 億美元，2021 年累計回購約 12 億美元。截至 2021 年底，我們已根據 2020 年股票回購計劃向股東返還約 29 億美元，該計劃共授權45 億美元。考慮到其他在香港交易所上市的美國上市公司的做法，公司決定不對公司未來的收入提供指引。

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

接線員，現在讓我們開始提問。

(Operator Instructions) First question comes from Alicia Yap from Citigroup.

（操作員說明）第一個問題來自花旗集團的 Alicia Yap。

Hi Thank you, good evening management, thanks for taking that question, also congrats on solid results. I wanted to ask Robin on these questions. I guess your management has been talking about different business transitions since 2019 and since that Baidu is still undergoing a transitional period. How would you assess your achievement and the progress during this transitional period? I remember, if I recall, I think management mentioned a few times in the past the tailwinds of China's transformation in the traditional industry. So I wonder, as we enter into 2022, how would you quantify some of these opportunities?

嗨，謝謝，晚上好，感謝您提出這個問題，也祝賀您取得了可靠的結果。我想就這些問題問羅賓。我猜你的管理層自 2019 年以來一直在談論不同的業務轉型，因為百度仍處於轉型期。您如何評價您在這個過渡時期的成就和進展？我記得，如果我回想起來，我認為管理層過去曾多次提到中國傳統行業轉型的順風。所以我想知道，隨著我們進入 2022 年，您將如何量化其中一些機會？

Thank you, Alicia. As you can see, we closed 2021 with non-ad business accounting for 26% of Baidu Core in Q4 last year. A year ago, it was 18%. Our new AI businesses have been growing at a pace faster than industry average. 2021 was a year with many challenges and opportunities. Despite the uncertainties caused by macro, by geopolitical tensions and other factors, there's one thing for sure. That is the world is moving towards AI.

謝謝你，艾麗西亞。如您所見，我們在 2021 年結束時，非廣告業務在去年第四季度佔百度核心的 26%。一年前，這一比例為 18%。我們新的人工智能業務的增長速度超過了行業平均水平。 2021年是充滿挑戰和機遇的一年。儘管宏觀、地緣政治緊張等因素造成不確定性，但有一點是肯定的。那就是世界正在走向人工智能。

As I mentioned in my prepared remarks, Baidu has brought AI to various traditional industries and the public service sector to help them improve efficiency and strengthen their competitiveness. Our enterprise customers increasingly recognize the value we can add to their business, and we have made breakthroughs in industries like transportation, manufacturing, energy and utilities. As more automakers recognize the importance of AI, they have indicated to us that they want to use ASD and the DuerOS for auto for more and more popular models. That accounts for potentially billions in sales, and we expect that trend to continue this year.

正如我在準備發言中提到的，百度已經將人工智能帶入了各個傳統行業和公共服務領域，以幫助他們提高效率，增強競爭力。我們的企業客戶越來越認識到我們可以為他們的業務增加的價值，我們在交通、製造、能源和公用事業等行業取得了突破。隨著越來越多的汽車製造商認識到人工智能的重要性，他們向我們表示，他們希望將 ASD 和 DuerOS 用於汽車，用於越來越多的流行車型。這可能帶來數十億美元的銷售額，我們預計這一趨勢將在今年繼續。

But what is more important is our autonomous driving technology and Robotaxi service. Apollo Go has scaled up its operations significantly. If you happen to be in any of the cities we just mentioned during the prepared remarks, you're welcome to try out our service via Baidu Map or Apollo Go app. It sounds like an experienced and attentive driver, but in fact, it's powered by AI. We believe providing more ride to passengers on the open road will help us further improve our Level 4 autonomous driving technology, further improve the safety performance and user experience and, therefore, further solidify our leadership position.

但更重要的是我們的自動駕駛技術和Robotaxi服務。 Apollo Go 已顯著擴大其運營規模。如果您恰好在我們剛才在準備發言中提到的任何一個城市，歡迎您通過百度地圖或 Apollo Go 應用程序試用我們的服務。聽起來像是一位經驗豐富且細心的司機，但實際上它是由人工智能驅動的。我們相信，在開闊的道路上為乘客提供更多的乘車服務將有助於我們進一步改進我們的 4 級自動駕駛技術，進一步提高安全性能和用戶體驗，從而進一步鞏固我們的領先地位。

And going into 2022, in short, the backdrop of policy tailwinds, we will continue to expand our AI Cloud and make further breakthroughs in intelligent driving. At the same time, we focus on a healthy and sustainable development for the mobile ecosystem. And AI-generated content could become a big differentiator for us in the years to come. So overall, I think AI's contribution to our growth will become more apparent in 2022.

而進入2022年，簡而言之，在政策順風的背景下，我們將繼續做大AI Cloud，在智能駕駛方面取得進一步突破。同時，我們關注移動生態系統的健康可持續發展。人工智能生成的內容可能會在未來幾年成為我們的一大差異化因素。所以總的來說，我認為人工智能對我們增長的貢獻將在 2022 年變得更加明顯。

Our next question comes from Piyush Mubayi from Goldman Sachs.

我們的下一個問題來自高盛的 Piyush Mubayi。

Thank you for taking my question Robin, Rong Luo, Juan. Congratulation on another solid quarter, can you share your thoughts on the business outlook for 2022 in general in Q1 in particular? Also, how should we be taking of a margin of the business in 2022?

感謝您提出我的問題 Robin、Rong Luo、Juan。祝賀又一個穩健的季度，您能否分享您對 2022 年第一季度總體業務前景的看法？此外，我們應該如何在 2022 年獲取業務利潤？

My second question is on your cloud business, which has grown very nicely, outgrowing the pace of the industry. What are the drivers that you see for this business for the rest of the calendar year? And also, if you could comment on the margin outlook for the cloud business, splitting it by gross margin and operating margin. Thank you very much.

我的第二個問題是關於你的雲業務，它發展得非常好，超過了行業的步伐。在本日曆年的剩餘時間裡，您認為該業務的驅動因素是什麼？此外，如果您可以評論云業務的利潤率前景，將其按毛利率和營業利潤率劃分。非常感謝你。

Thank you so much, Piyush. I think that's a very good question. When we're looking to our business in last year and looking forward, in the year 2021, the revenue from Baidu Core, increased by 21% to RMB 95 billion, particularly driven by the Baidu AI Cloud. Baidu AI Cloud grew by 64% to RMB 15.1 billion last year and contributed to over 70% of the core non-ad revenues. As we mentioned in the prepared remarks, Baidu AI Cloud made breakthrough in several important verticals. As Robin just mentioned, total revenues coming from transportation, manufacturing, energy and utilities and the public sectors is more than double last year. As customers realize that by being equipped with our AI capabilities, they become stronger. That's probably the reason why we have seen repeated purchase coming from the same customers last year and deepened the penetration in various industries.

非常感謝你，皮尤什。我認為這是一個非常好的問題。回顧去年的業務，展望2021年，百度核心的收入增長了21%，達到人民幣950億元，尤其是在百度人工智能雲的推動下。百度人工智能雲去年增長 64% 至 151 億元人民幣，貢獻了超過 70% 的核心非廣告收入。正如我們在準備好的評論中提到的，百度人工智能雲在幾個重要的垂直領域取得了突破。正如羅賓剛剛提到的，來自交通、製造、能源和公用事業以及公共部門的總收入是去年的兩倍多。隨著客戶意識到，通過配備我們的 AI 功能，他們會變得更強大。這可能是我們去年看到來自同一客戶的重複購買並加深在各個行業的滲透的原因。

In particular, one thing we need to draw attention is our ACE smart transportation, which started from scratch only a few years ago and has maintained strong growth momentum ever since. In year 2021, ACE smart transportation's revenue achieved triple-digit revenue growth.

特別值得一提的是，我們的ACE智能交通，從幾年前從無到有，一直保持著強勁的增長勢頭。 2021年，ACE智慧交通的收入實現了三位數的收入增長。

Our breakthroughs in these verticals have built our confidence to maintain a solid growth momentum for AI Cloud, and we aim at above-industry level growth in 2022. One thing I would like to remind you, our cloud revenues might fluctuate quarter-over-quarter, and we will suggest you focus on the annual revenue growth, which makes more sense. And margin-wise, we have to say that Baidu AI Cloud includes two parts. The personal cloud services and enterprise and public sector cloud services. Revenue from personal cloud services contributed to a small portion and has been growing more slowly than overall cloud revenues by enjoying a relatively healthy margins. Revenue coming from enterprise and the public sector including smart transportations has been consistently outgrowing the overall AI Cloud business. From a long-term perspective, we believe that our solutions become more mature and more standardized, our margins of AI Cloud will improve.

我們在這些垂直領域的突破讓我們有信心保持 AI Cloud 穩健的增長勢頭，我們的目標是在 2022 年實現高於行業水平的增長。我想提醒您一件事，我們的雲收入可能會出現環比波動，我們建議您關注年收入增長，這更有意義。而在利潤方面，我們不得不說百度人工智能雲包括兩個部分。個人云服務以及企業和公共部門雲服務。來自個人云服務的收入只佔一小部分，並且由於享有相對健康的利潤率，其增長速度低於整體雲收入。來自企業和公共部門（包括智能交通）的收入一直超過整體人工智能雲業務。從長遠來看，我們相信我們的解決方案會變得更加成熟和標準化，我們的AI Cloud利潤率將會提高。

Baidu Core ad revenue grew by 12% in 2021, and the margin stayed healthy. We need to note that the ad industry has been facing challenges in the near term due to the macro environment and the resurgence of the COVID-19. We may see Baidu Core ad revenue growth slowdown in Q1 from Q4 2021. Having said that, if the COVID-19 trends don't get worse post Q1, then the first quarter should mark the bottom of the industry. Overall, we believe that our advertising business could recover once the macro environment start to improve.

2021 年百度核心廣告收入增長 12%，利潤率保持健康。我們需要注意的是，由於宏觀環境和 COVID-19 的複蘇，廣告行業在短期內一直面臨挑戰。從 2021 年第四季度開始，我們可能會看到第一季度百度核心廣告收入增長放緩。話雖如此，如果 COVID-19 趨勢在第一季度之後沒有變得更糟，那麼第一季度應該標誌著行業的底部。總體而言，我們相信一旦宏觀環境開始改善，我們的廣告業務就會復蘇。

I think going forward, we will maintain a disciplined approach to balance investments and returns to ensure healthy development for the ad business. Managing healthy growth is always one of our priorities.

我認為未來，我們將保持嚴謹的方法來平衡投資和回報，以確保廣告業務的健康發展。管理健康增長始終是我們的首要任務之一。

Within the non-ad and our AI Cloud business, Xiaodu is an important component. In 2021, Xiaodu revenue grew quite well, and we target to sustain solid revenue growth momentum in 2022. Within the non-cloud business, intelligent driving was also achieving some breakthroughs. As Robin mentioned, BYD chose Baidu as a partner to provide Apollo self-driving solutions. This partnership covers BYD's multiple hot models across several years. That is one of the example of the promising development for ASD business in Baidu. While the revenue of such partnerships that will be recognized over the few years alongside the shipment of each model, we're encouraged about the progress we've made and are relatively optimistic about the future business outlook.

在非廣告業務和我們的 AI Cloud 業務中，小度是一個重要組成部分。 2021年小度收入增長良好，我們的目標是在2022年保持穩健的收入增長勢頭。在非雲業務中，智能駕駛也取得了一些突破。正如 Robin 所說，比亞迪選擇百度作為合作夥伴，提供 Apollo 自動駕駛解決方案。此次合作涵蓋了比亞迪數年的多款熱門車型。這是百度ASD業務發展前景廣闊的例子之一。雖然此類合作夥伴關係的收入將在幾年內隨著每種型號的出貨而得到認可，但我們對我們取得的進展感到鼓舞，並對未來的業務前景相對樂觀。

In summary, I think we will continue to invest delicately in AI-enabled business especially in the intelligent driving and AI cloud, which have been developing rapidly. And we believe that all of this will generate a huge growth potential over the long term. Thank you, Piyush.

綜上所述，我認為我們會繼續在人工智能賦能業務上進行精細投資，尤其是在快速發展的智能駕駛和人工智能雲上。我們相信，所有這些都將在長期內產生巨大的增長潛力。謝謝你，皮尤什。

Our next question comes from Alex Yao from JPMorgan.

我們的下一個問題來自摩根大通的 Alex Yao。

Thanks for management take the question and congratulations on Apollo achieving another record-breaking number of rides this quarter. My question is how will Apollo achieve large-scale autonomous ride-hailing operations in Chinese cities, given extremely complicated road conditions? And also, what are your strategies for Apollo Go to accelerate its operational and technological road map?

感謝管理層提出問題並祝賀 Apollo 在本季度再創紀錄。我的問題是，在極其複雜的路況下，Apollo 將如何在中國城市實現大規模的自動駕駛叫車業務？此外，您對 Apollo Go 加快其運營和技術路線圖的策略是什麼？

I'll have Zhen Yu answer your question.

我會讓甄宇回答你的問題。

Okay. Thanks, Alex. As Robin mentioned, in 2021, we scaled up our Apollo Go's operation supported by our early mover advantage in Level 4 autonomous technology. Today, we believe that we are already the largest autonomous ride-hailing service provider in the world, evidenced by the number of rides that we have completed.

好的。謝謝，亞歷克斯。正如 Robin 所說，在 2021 年，我們在 4 級自主技術方面的先發優勢支持下擴大了 Apollo Go 的運營。今天，我們相信我們已經是世界上最大的自動乘車服務提供商，我們完成的乘車數量就是明證。

Based on our experience, scalable public operations can generate a large number of long-tail data with better quality and a better match with actual user demand, which is different from small-scale test driving. By combining these data with our simulation system, we enjoy a flying wheel effect that drives the acceleration of technology iteration, hence improving safety performance and consumer experience and lowering cost.

根據我們的經驗，可擴展的公共運營可以生成大量質量更好、更符合用戶實際需求的長尾數據，這與小規模試駕不同。通過將這些數據與我們的仿真係統相結合，我們享受到了飛輪效應，推動了技術迭代的加速，從而提高了安全性能和消費者體驗，降低了成本。

I think you mentioned the complicated road conditions in China. How can Apollo overcome all sorts of challenge and provide autonomous ride-hailing services? I think one distinct feature is our business is our holistic approach, which synergizes our ACE smart transportation solution, autonomous vehicles, maps and cloud services to improve the safety performance on China's complicated urban roadways. Our Yizhuang, Beijing project is a case in point. Yizhuang, the economic-technology development area of Beijing, is a typical Chinese urban road scenario. Apollo began autonomous driving testing in Yizhuang back in 2018. Since 2020, we have collaborated with Beijing government to construct a high-level autonomous driving demonstration zone.

我想你提到了中國複雜的路況。 Apollo 如何克服各種挑戰並提供自動乘車服務？我認為我們的一個顯著特點是我們的業務是我們的整體方法，它結合了我們的 ACE 智能交通解決方案、自動駕駛汽車、地圖和雲服務，以提高中國複雜城市道路的安全性能。我們的北京亦莊項目就是一個很好的例子。北京經濟技術開發區亦莊是典型的中國城市道路場景。 Apollo早在2018年就開始在亦莊進行自動駕駛測試。從2020年開始，我們與北京市政府合作建設高水平的自動駕駛示範區。

Within 4 years, Apollo Go has grown from L4 testing to offering large-scale operations and serving passengers in Yizhuang. Last November, we started up to collect fees. Nowadays, almost 100 vehicles are providing autonomous ride-hailing services in Yizhuang on a daily basis. On average, each autonomous ride-hailing vehicle had provided about 20 rides daily at the end of 2021.

4年內，Apollo Go已經從L4測試發展到在亦莊提供大規模運營和服務乘客。去年11月，我們開始收費。如今，每天有近100輛汽車在亦莊提供自動乘車服務。截至 2021 年底，平均每輛自動駕駛網約車每天提供約 20 次乘車服務。

At the same time, our ACE smart transportation solution has expanded its coverage almost 10 fold, from covering 30 intersections to 300.

同時，我們的ACE智慧交通解決方案的覆蓋範圍擴大了近10倍，從30個路口擴大到300個。

What is even more exciting? That Apollo is now conducting fully autonomous driving testing, with no one at the driver seat, in Yizhuang on a regular basis. We are working steadily towards goals of removing the safety drivers and providing fully autonomous ride-hailing services in the near future. We believe that removing the number of safety drivers will allow us to significantly reduce our costs and expenses and to help the business to generate profits in the future.

更令人興奮的是什麼？那輛阿波羅現在正在亦莊定期進行全自動駕駛測試，沒有人坐在駕駛座上。我們正在穩步朝著消除安全駕駛員和在不久的將來提供完全自動駕駛的叫車服務的目標努力。我們相信，取消安全司機的數量將使我們能夠顯著降低成本和開支，並幫助企業在未來產生利潤。

Lastly, I want to highlight that our autonomous driving business is navigating in a favorable operating environment. The Beijing government has announced their plans to expand autonomous driving region to a large area in 2022. Several large cities, such as Guangzhou, Chongqing and Shanghai, have proactively adopted our ACE smart transportation solutions and facilitated public operation for Apollo Go autonomous ride hailing. We believe that in the short future, those cities will follow Yizhuang's lead to embrace our solution using our holistic approach system.

最後，我想強調一下，我們的自動駕駛業務正處於有利的運營環境中。北京市政府已宣布2022年將自動駕駛區域擴大到大面積。廣州、重慶、上海等多個大城市已積極採用我們的ACE智慧交通解決方案，推動Apollo Go自動駕駛網約車的公眾運營。我們相信，在不久的將來，這些城市會效仿亦莊的做法，採用我們的整體方法體係來採用我們的解決方案。

We also recently expanded the commercial operations of Apollo Go in Beijing, Chongqing and Yangquan. We believe that we will continue to benefit from China's ambition to establish autonomous driving as national pride and homegrown technology. Thank you.

我們最近還擴大了 Apollo Go 在北京、重慶和陽泉的商業運營。我們相信，我們將繼續受益於中國將自動駕駛確立為民族自豪感和本土技術的雄心。謝謝你。

Our next question comes from Gary Yu from Morgan Stanley.

我們的下一個問題來自摩根士丹利的 Gary Yu。

Hi good evening management, thank you for your opportunity and congratulations on the strong progress you've made on AI and intelligent driving. I think most of the questions around these areas have been asked. My question is more related to marketing and advertising business. So I think you mentioned earlier that we think first quarter will see slower growth but should mark the bottom. So how should we look at the impact on your advertising or marketing revenue from macro, from COVID and from regulations? When you think about potentially slower growth in first quarter that we cover afterwards, how bad can the first quarter be? And how should we look at the recovery trend for the remaining of the year?

嗨晚上好，感謝您的機會，並祝賀您在人工智能和智能駕駛方面取得的巨大進展。我認為圍繞這些領域的大部分問題都已被提出。我的問題更多與營銷和廣告業務有關。所以我認為你之前提到過，我們認為第一季度的增長會放緩，但應該是底部。那麼，我們應該如何看待宏觀、COVID 和法規對您的廣告或營銷收入的影響？當您考慮我們之後報導的第一季度潛在的增長放緩時，第一季度會有多糟糕？我們應該如何看待今年剩餘時間的複蘇趨勢？

And then I think my second question also related to that is more on longer term. So another policy tailwind that I think Baidu is facing is with more openness in ecosystem. We may see more potential opportunity from platforms being more kind of interoperational. So in video search, in e-commerce, what kind of progress have we made so far? And how should we look at the long-term opportunities there?

然後我認為我的第二個問題也與此有關，更長期而言。所以我認為百度面臨的另一個政策順風是生態系統更加開放。我們可能會從更具互操作性的平台中看到更多潛在機會。那麼在視頻搜索、電商方面，到目前為止我們取得了怎樣的進展？我們應該如何看待那裡的長期機會？

Gary, thanks for your questions. This is Dou.

加里，謝謝你的提問。這是竇。

So for the first question, our ad business is highly correlated with macro developments. So actually as Julius has already mentioned, the macroeconomy and COVID-19 impact the whole industry and, clearly, our business as well in the Q4. These challenges are likely to continue in Q1. Sectors that underperformed in Q4, such as the education, real estate, franchising and travel, are likely to be solved as well in Q1, at the meanwhile, we are cautiously optimistic about macro developments because we already see many macro-economic regulations are being put into places and likely to have a positive influence on the economy. We already witnessed early signs of the recovery and momentum for some industries like Healthcare. We believe once the macro environment begins to improve and our ad business starts to normalize and along the economic recovery, in the Q1 could be the trough for our ad business in this year.

所以對於第一個問題，我們的廣告業務與宏觀發展高度相關。所以實際上正如朱利葉斯已經提到的那樣，宏觀經濟和 COVID-19 影響了整個行業，顯然，第四季度我們的業務也是如此。這些挑戰可能會在第一季度繼續存在。第四季度表現不佳的行業，如教育、房地產、特許經營和旅遊等，也可能在第一季度得到解決，同時，我們對宏觀發展持謹慎樂觀態度，因為我們已經看到許多宏觀經濟法規正在出台。落實到位，並可能對經濟產生積極影響。我們已經見證了醫療保健等一些行業復甦和發展勢頭的早期跡象。我們認為，一旦宏觀環境開始好轉，我們的廣告業務開始正常化，隨著經濟復甦，第一季度可能是我們今年廣告業務的低谷。

In the long run, our strategy, to build a stronger user base and commercialization capabilities is also making our ad business and mobile ecosystem more resilient than before. As Robin already mentioned, we made stride to enrich both content and closed-loop services within Baidu App, through our efforts on Smart-Mini-Program, Managed Page, Baijiahao the building block we have talked about a lot before. In turn, the user experience for both the content and service consumption, and also the commercial conversion both on ads and non-ads are being enhanced accordingly. Our mobile ecosystem, from mid-to-long term perspective, will become a platform where our users have one-stop satisfaction for majority of their needs.

從長遠來看，我們建立更強大的用戶群和商業化能力的戰略也使我們的廣告業務和移動生態系統比以前更有彈性。正如羅賓已經提到的，我們在豐富百度App內的內容和閉環服務方面取得了長足的進步，通過我們在智能小程序、託管頁面、百家號上的努力，我們之前已經談過很多了。反過來，內容和服務消費的用戶體驗，以及廣告和非廣告的商業轉化也在相應地得到提升。從中長期來看，我們的移動生態系統將成為一個平台，我們的用戶可以一站式滿足他們的大部分需求。

So with that, besides ads, and we believe the monetization approaches such as live streaming rewards, commission, subscription, membership and etc., will grow materially. Therefore, while still investing in many initiatives in our mobile ecosystem, we believe our capability continue make our margin healthy and sustainable moving forward.

因此，除廣告外，我們相信直播獎勵、佣金、訂閱、會員等貨幣化方式將大幅增長。因此，儘管仍在我們的移動生態系統中投資許多計劃，但我們相信我們的能力將繼續使我們的利潤健康和可持續地向前發展。

For your second question about the interoperability, we feel this is very, very important for the whole Internet and will lead to a fundamental open ecosystem, which will benefit every single user of the Internet.

關於你關於互操作性的第二個問題，我們認為這對整個互聯網非常非常重要，並將導致一個基本的開放生態系統，這將使互聯網的每個用戶受益。

As we all know, search by nature is open, and Baidu has been making its efforts to strengthen the open nature of our mobile ecosystem. We have made a meaningful progress and we believe there are many more to come. Let me show you a few examples:

眾所周知，搜索本質上是開放的，百度一直在努力加強我們移動生態系統的開放性。我們已經取得了有意義的進展，我們相信還會有更多進展。讓我給你看幾個例子：

Content ways, in addition to Baijiahao, we have leveraged the H5 and Smart-Mini-Program to make our users able to access a vast amount of content from China's top as well as long tail apps, covering long-form video platforms, short-form video platforms, like Bilibili, lifestyle platforms like Xiaohongshu, podcasting apps, and much more long-tail comic book apps with the native app experience.

內容方式，除了百家號外，我們還利用H5和智能小程序，讓我們的用戶能夠接觸到海量的中國頂級和長尾應用內容，涵蓋長視頻平台、短視頻包括嗶哩嗶哩等視頻平台、小紅書等生活方式平台、播客應用，以及更多具有原生應用體驗的長尾漫畫應用。

And as you just mentioned, for the shopping side as we mentioned earlier, we have made more than 1 billion SKUs from our major partner platforms available for our users. For services again with the Smart-Mini-Programs, we now can fulfill a variety of user requests, spanning over almost 300 service categories, from top platforms such as Meituan, Waimai, Ctrip and many vertical platforms like Maoyan, Hualv Law service.

正如您剛才提到的，對於我們之前提到的購物方面，我們已經從我們的主要合作夥伴平台為我們的用戶提供了超過 10 億個 SKU。再次通過智能小程序服務，我們現在可以滿足用戶的各種需求，涵蓋近300多個服務類別，來自美團、外賣、攜程等頂級平台和貓眼、華律法律服務等眾多垂直平台。

Last but not least, we open-sourced our Smart Mini Program framework in the very beginning to empower our partners so that the Small Mini Programs can actually run seamlessly in their apps. Recently, the leading smartphone makers, such as OPPO, VIVO and Xiaomi have adopted Baidu Smart-Mini-Program framework in their in-house browsers, which resulted in more than like a 20 million more daily active users for Small Mini Programs. And we already see this has been encouraging more and more developers to embrace the ecosystem.

最後但同樣重要的是，我們在一開始就開源了我們的智能小程序框架，以賦能我們的合作夥伴，以便小程序可以在他們的應用程序中真正無縫地運行。近期，OPPO、VIVO、小米等領先的智能手機製造商在自家瀏覽器中採用了百度智能小程序框架，小程序日活躍用戶增加近2000萬。我們已經看到，這一直在鼓勵越來越多的開發人員擁抱這個生態系統。

We believe that interoperability could bring more market opportunities for not only Baidu but also for the entire industry. We will continue to closely monitor the dynamics and we will do our part to make movement faster. Thank you, Gary.

我們相信，互操作性不僅可以為百度，也可以為整個行業帶來更多的市場機會。我們將繼續密切關注動態，我們將儘自己的一份力量加快行動。謝謝你，加里。

Our next question comes from Eddie Leung from Bank of America Merrill Lynch.

我們的下一個問題來自美銀美林的 Eddie Leung。

Most of my questions now have been asked. Just curious on your use of cash, are you including investment plan as well as any potential increase in your buyback program? As for investment, we noticed that quite some of your major peers talking about more disciplined going forward in terms of investment. So wondering whether you have a similar strategy into 2022.

現在我的大部分問題都被問到了。只是對您使用現金感到好奇，您是否包括投資計劃以及回購計劃中的任何潛在增長？至於投資，我們注意到你們的一些主要同行都在談論在投資方面更加自律。所以想知道你是否有類似的策略到 2022 年。

Thanks for the question. I think in terms of our corporate strategy, I would like to emphasize that the most important investments are always investing in ourselves. If you look into our business today, our growth is clearly driven by the non-ad business, which is already 26% of the total revenue now. And non-ad mainly composed of running on AI cloud, intelligent driving, Xiaodu and other AI-related growth initiatives. All of these are kind of a new business for us and which requires more investment. This AI business represent different stages of growth, and they are very important in create ample room for the long-term revenue growth for Baidu. Our investments are pretty much packed with growth potential. So we will continue to invest strategically in AI, on ourselves and particularly in intelligent driving and AI Cloud to lay a solid foundation for our future growth. And meanwhile, we will remain open but also very disciplined in investing in 2 businesses, which may complement our new business initiatives.

謝謝你的問題。我認為就我們的企業戰略而言，我想強調的是，最重要的投資始終是投資於我們自己。如果您今天查看我們的業務，我們的增長顯然是由非廣告業務推動的，目前已佔總收入的 26%。而非廣告主要由跑AI雲、智能駕駛、小度等AI相關的增長舉措組成。所有這些對我們來說都是一種新業務，需要更多的投資。這項人工智能業務代表了不同的成長階段，對於為百度的長期收入增長創造充足的空間非常重要。我們的投資充滿了增長潛力。因此，我們將繼續戰略性地投資於人工智能，投資於我們自己，尤其是智能駕駛和人工智能雲，為我們未來的發展奠定堅實的基礎。同時，我們將保持開放，但在投資 2 項業務時也非常自律，這可能會補充我們的新業務計劃。

In terms of capital allocation, yes, some of our new businesses have completed the fundraisings and which have created more capital for their future development needs. On the other hand, as such arrangement which can better align their manager, employees' interest, I think going forward, we will maintain open attitudes, and we are open to bring in more diverse investors including strategic investors to help the companies to grow.

在資金配置方面，是的，我們的一些新業務已經完成了募資，為未來的發展需求創造了更多的資金。另一方面，作為這樣的安排，可以更好地協調他們的經理、員工的利益，我認為未來我們會保持開放的態度，我們願意引入包括戰略投資者在內的更多元化的投資者來幫助公司成長。

In addition, you mentioned the share repurchase program. I think we believe that our AI business has been undervalued by the market. For example, the market has not placed sufficient values on our intelligent driving businesses. That's the reason why we keep buying back our shares. As of the end of 2021, we have returned approximately USD 2.9 billion to the shareholders under the 2020 share repurchase program. I think this reflects the condition that we have in the direction of our business. Thank you for your question.

另外，你提到了股票回購計劃。我認為我們認為我們的人工智能業務被市場低估了。例如，市場對我們的智能駕駛業務沒有給予足夠的重視。這就是我們不斷回購股票的原因。截至2021年底，我們已根據2020年股票回購計劃向股東返還約29億美元。我認為這反映了我們在業務方向上的狀況。謝謝你的問題。

Next question comes from Jerry Liu from UBS.

下一個問題來自瑞銀的 Jerry Liu。

Yes, I want to go back to the Apollo topic, maybe just from a different perspective. On this call, you guys mentioned some more wins with automakers and especially the new partnership agreement with BYD. So I just want to ask, what are some of the operating metrics that you can provide to help us quantify how big can this opportunity, can this business be? How will these partnerships benefit the ADS business going forward? How will it benefit overall revenues?

是的，我想回到阿波羅的話題，也許只是從不同的角度。在這次電話會議上，你們提到了與汽車製造商的更多勝利，尤其是與比亞迪的新合作協議。所以我只想問，您可以提供哪些運營指標來幫助我們量化這個機會有多大，這個業務能有多大？這些合作夥伴關係將如何使 ADS 業務向前發展？它將如何使整體收入受益？

Jerry, this is Robin. (inaudible) and connected vehicles are becoming the new attraction in auto sales. Also, many automakers have come to realize that adopting Baidu's solution is better than investing in their inhouse solutions. That's why a lot of automakers have chosen to partner with us. Our in-vehicle infotainment system, DuerOS for auto, has been on market for quite a few years. For ASD, namely both ANP and AVP, has been gaining traction over the past year or so. We've seen strong acceptance from the automakers.

傑瑞，這是羅賓。 （聽不清）和聯網汽車正在成為汽車銷售的新吸引力。此外，許多汽車製造商已經意識到採用百度的解決方案比投資自己的解決方案要好。這就是為什麼許多汽車製造商選擇與我們合作的原因。我們的車載信息娛樂系統 DuerOS for auto 已經上市好幾年了。對於 ASD，即 ANP 和 AVP，在過去一年左右的時間裡一直受到關注。我們已經看到汽車製造商的強烈接受。

As you mentioned BYD is a very good example. They are one of the largest EV automakers in China. It probably accounts for close to 20% of Chinese new EV market last year, and their sales volume grew for new EV grow by over 200% last year. They have selected us to be a partner to supply autonomous driving solutions, especially ANP and AVP, for multiple popular EV models across multiple years.

正如你提到的，比亞迪是一個很好的例子。他們是中國最大的電動汽車製造商之一。去年它可能佔中國新電動汽車市場近20%的份額，其銷量同比增長超過200%。他們選擇我們作為合作夥伴，為多年的多種流行 EV 車型提供自動駕駛解決方案，尤其是 ANP 和 AVP。

With the increasing adoption of smart EV in China, we believe Baidu's strong autonomous driving capabilities put us in a very strong position to win more businesses. As of the end of last year, according to our internal estimates, the total projected cumulative sales of ASD and DuerOS for Auto from new wins should be about RMB 8 billion. That is unrealized revenue. This amount was growing very fast over the past 2-3 years, especially the contribution from ASD has been very strong.

隨著中國越來越多地採用智能電動汽車，我們相信百度強大的自動駕駛能力使我們在贏得更多業務方面處於非常有利的地位。截至去年底，根據我們內部測算，新勝ASD和DuerOS for Auto的預計累計銷售總額應該在80億元左右。那是未實現的收入。在過去的 2-3 年裡，這個數字增長得非常快，尤其是 ASD 的貢獻非常大。

Yes. I'll try to make it clear about the numbers. We are seeing very promising numbers of our cumulative sales of ASD and DuerOS for auto in the past few years. The growth is quite promising. But this number, which includes the contract side and nomination letters from customers. I think in the auto industries, a nomination letter means that a supplier is successfully accepted by an OEM or certain projects. Following the nomination letters, OEM typically sign contracts with the suppliers. Our estimate may made based on our assumptions of the timing of new models, pricing and future sales volumes, according to the discussion with our customers, and some projections also coming from professional third parties. These projects usually last for 3 to 5 years, during which time we will recognize revenue based on actual installations. I hope this can give you a better understanding of our ASD business.

是的。我會盡量說明數字。在過去的幾年裡，我們看到我們在汽車領域的 ASD 和 DuerOS 的累計銷量非常可觀。增長是相當有希望的。但這個數字，包括合同方和客戶的提名信。我認為在汽車行業，提名信意味著供應商被OEM或某些項目成功接受。在提名信之後，OEM 通常會與供應商簽訂合同。根據與客戶的討論，我們的估計可能基於我們對新車型的時間、定價和未來銷量的假設，以及來自專業第三方的一些預測。這些項目通常持續 3 至 5 年，在此期間我們將根據實際安裝量確認收入。我希望這可以讓您更好地了解我們的 ASD 業務。

Our next question comes from James Lee from Mizuho.

我們的下一個問題來自瑞穗的 James Lee。

A couple of follow-up questions on autonomous driving. I recently read your recently published book on smart transportation. And in this book, specifically, you guys elaborated a number of details about the industry landscape, including V2X, traffic management, smart EV and autonomous driving. And just looking at the various yields that you mentioned in the book here, what is Baidu's midterm for strategy and long-term development goals?

關於自動駕駛的幾個後續問題。我最近讀了你最近出版的關於智能交通的書。在這本書中，你們具體闡述了一些關於行業格局的細節，包括 V2X、交通管理、智能 EV 和自動駕駛。看看你在書中提到的各種收益率，百度的中期戰略和長期發展目標是什麼？

Let me start with why I wrote this book. The application of AI technology has given new ideas and new solutions to the digital transformation of many industries. I think transportation and auto is probably the best example. In this book, I demonstrate how AI is going to reshape this industry and create enormous value for all of the stakeholders.

讓我從我寫這本書的原因開始。人工智能技術的應用為眾多行業的數字化轉型提供了新思路、新方案。我認為交通和汽車可能是最好的例子。在本書中，我展示了人工智能將如何重塑這個行業並為所有利益相關者創造巨大的價值。

ITS for Intelligent Transportation System has two building blocks: One is the intelligent and connected vehicles, the other is the roadside infrastructure. This two work well independently but are much more effective together. The system deeply integrates a wide range of technologies including AI, 5G and cloud computing into the transportation and auto industry.

智能交通系統 ITS 有兩個組成部分：一個是智能網聯汽車，另一個是路邊基礎設施。這兩個獨立工作很好，但在一起更有效。該系統將人工智能、5G、雲計算等多種技術深度融合到交通和汽車行業。

It is dedicated solving 3 major issues:

它致力於解決3個主要問題：

First, to minimize road safety accidents. 94% of the road accidents are caused by human error in driving, autonomous driving will be much safer.

一是盡量減少道路安全事故。 94%的交通事故都是人為駕駛失誤造成的，自動駕駛會安全很多。

Second, systematically reduced congestion. Based on our experiences with certain Chinese cities, our Apollo V2X vehicle-to-road infrastructure has helped reduce traffic congestion during peak hours by 20% to 30%

二是系統地減少擁堵。根據我們在某些中國城市的經驗，我們的 Apollo V2X 車對路基礎設施幫助將高峰時段的交通擁堵減少了 20% 至 30%

Thirdly, reduce carbon emission. Road transportation accounts for over 80% of the carbon emissions from transportation sector. Therefore, improving the efficiency of transportation system is critical for sustainability.

三是減少碳排放。道路運輸佔交通運輸部門碳排放量的 80% 以上。因此，提高交通系統的效率對於可持續性至關重要。

AI is reshaping the transportation and mobility industries, creating trillion dollars industry opportunities. In China there are more than 300,000 road intersections in urban roads, and about 150,000 kilometers of highways and tens of millions of parking lots. There has been all in the process of upgrading with AI technology. Not to mention the autonomous ride-hailing and smart EV market opportunities.

人工智能正在重塑交通運輸行業，創造數万億美元的行業機會。中國城市道路有30萬多個道路交叉口，高速公路約15萬公里，停車場數以千萬計。一切都在用人工智能技術升級。更不用說自動乘車和智能電動汽車的市場機會了。

As I mentioned in the prepared remarks, Baidu has made significant progress in intelligent driving.

正如我在準備好的評論中提到的，百度在智能駕駛方面取得了重大進展。

In the medium and long term, we aim to: expand the coverage of Apollo Go to 65 cities in 2025 and 100 cities in 2030 and expand our smart transportation into more cities and deepen our penetration in each city.

中長期，我們的目標是：2025年Apollo Go覆蓋65個城市，2030年100個城市，將智慧交通擴展到更多城市，深化在每個城市的滲透。

From a more macro point of view, ITS is a microcosm of future digital city operation. I think the digital city operator mode assisted by AI technology will be a good solution. Through AI new infrastructure, we are confident to further contribute innovative solutions to the digital transformation of industry and city.

從更宏觀的角度來看，ITS是未來數字城市運營的一個縮影。我認為人工智能技術輔助的數字城市運營模式將是一個很好的解決方案。通過AI新基建，我們有信心進一步為產業和城市的數字化轉型貢獻創新解決方案。

All right. Thank you. We have reached the end of the question-and-answer session. And with that, ladies and gentlemen, we conclude the conference for today. Thank you for participating. You may all disconnect.

好的。謝謝你。我們已經到了問答環節的尾聲。女士們，先生們，我們結束今天的會議。感謝您的參與。你們都可以斷開連接。