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，感謝您參加百度第四季及2021年財報電話會議。 （操作員指示）今天的會議正在錄製。如果您有任何異議，您可以立即斷開連接。

I'd now like to turn the meeting over to your host for today's conference, Juan Lin, Baidu's Director of Investors 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 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，歡迎參加百度2021財年第四季及全年業績電話會議。百度的財報已於今天早些時候發布，您可以在我們的網站和新聞通訊社上找到一份副本。

On the call today, we have Robin Li, our Co-Founder and CEO; 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.

今天的電話會議由我們的共同創辦人兼執行長李彥宏主持；我們的財務長羅榮；竇深，我們負責百度行動生態系統的執行副總裁；以及負責百度智慧駕駛的高級副總裁鄭宇。在我們準備好發言之後，我們將舉行問答環節。

Please note that the discussion today will contain forward-looking statements made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from our current expectations. For detailed discussions of these risks and uncertainties, please refer to our latest annual report and other documents filed with the SEC and 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」條款所作出的前瞻性陳述。前瞻性陳述受風險和不確定性的影響，這些風險和不確定性可能導致實際結果與我們目前的預期有重大差異。有關這些風險和不確定性的詳細討論，請參閱我們向美國證券交易委員會和香港交易所提交的最新年度報告和其他文件。除非適用法律要求，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. Our press release contains a reconciliation of the unaudited non-GAAP measures to the unaudited most directly comparable GAAP measures and is available on our IR website at ir.baidu.com.

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

As a reminder, this conference is being recorded. In addition, a webcast of this conference call will 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將在百度投資者關係網站上提供。

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

現在我將電話轉給我們的執行長羅賓。

Hello, everyone. We delivered 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 年取得了穩健的表現。 2021 年「百度核心」營收年增 21%，這得益於非廣告收入成長 71%，佔「百度核心」營收的 22%，高於 2020 年的 16%。在非廣告業務中，我們的雲端收入全年持續表現出色，據我們估計，其成長速度超過了中國雲端市場。此外，Apollo Go 擴大了營運規模並實現了關鍵里程碑，推動了我們的自動駕駛叫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2021年的營運情況，介紹一下我們的AI雲、智慧駕駛、DuerOS和行動生態系統業務。之後，我將討論我們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AI雲開始。我們在2021年實現了強勁的營收成長。百度智慧雲的成長速度從2020年開始加快，我們認為其成長率明顯高於同業。我們在多個行業取得了長足進步，特別是交通、製造業、公共服務業以及能源和公用事業。這些產業的總收入在當年成長了一倍多，推動了我們的雲端業務成長。

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.

我將與大家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，國家電網自 2020 年起一直利用我們的人工智慧雲端來早期檢測故障設備並估算公用事業需求，以確保持續的電力供應。目前，我們已經涵蓋了全國近90%的分公司。

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.

在製造業領域，百度智慧雲已拓展至中國製造業重鎮重慶，實現工作流程自動化，協助提升營運效率。在重慶，我們服務於兩江新區，該區擁有數千家企業，其中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，我們觀察到中國對人工智慧的應用日益增加。根據IDC統計，百度開源深度學習平台PaddlePaddle的市佔率持續提升。我們的內部數據顯示，截至去年底，PaddlePaddle開發者社群已發展到410萬，服務業15.7萬家。而在同一時間段內，開發人員已經基於該平台創建了 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智慧交通領域，我們持續擴大地理覆蓋範圍。截至去年底，百度ACE已覆蓋35個城市，而一年前只有14個。以千萬以上合約金額計算，2020年購買我們解決方案的城市中，94%在2021年擴大了與我們的合作。智慧交通收入快速成長，2021年較前一年成長一倍以上。

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.

接下來是智慧駕駛。 Apollo Go 繼續朝自動駕駛叫車服務的可擴展營運邁出重要一步。我們相信規模化的營運能讓我們發現測試階段難以發現的問題，也能夠推動L4級自動駕駛技術的進步。去年第四季度，Apollo Go 取得了長足進步——Apollo Go 提供了 213,000 次乘車服務，並且再次環比增長近一倍，重申了我們在全球自動駕駛叫車市場中的領導地位。 Apollo Go現已在北京、上海、廣州、深圳、重慶、長沙、滄州、陽泉8個城市上線。同時，我們已於2021年11月25日起在北京、2022年2月18日起在重慶、2022年2月27日起在陽泉開始在開放道路上對自動駕駛網約車服務進行收費。

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.

百度一直致力於透過整合我們的ACE智慧交通解決方案、自動駕駛汽車、地圖和雲端服務來提高自動駕駛的安全性能並最大限度地提高其效率。我們的北京計畫就是一個很好的例子。大約一年前，我們在北京亦莊地區打造了ACE智慧交通，並引進了Apollo Go。目前，每天有近百輛車在亦莊提供自動駕駛叫車服務，並已開始向乘客收費。同時，我們的ACE智慧交通解決方案在過去一年中，在亦莊地區的路口覆蓋範圍擴大了近10倍，為Apollo Go提供了額外的支援。我們相信北京的計畫可以成為其他城市效仿和複製的典範。

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.

隨著智慧網聯汽車成為汽車銷售的焦點，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大量投資開發內部解決方案更好，我們將獲得進一步的發展。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，其打算在多款熱門車型中採用 ASD，特別是 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，根據去年前九個月的出貨量數據，小度在 DuerOS 中再次位居全球智慧顯示器第一名、中國智慧音箱第一名。小度營收持續快速成長。同時，我們很高興地看到，去年我們的服務收入已經超過了小度收入的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，在行動生態系統中，穩健的用戶成長顯示我們的行動生態系統正在不斷擴張。 12月，百度App月活躍用戶數年增14%，達6.22億。百度App日均登入用戶數已超過80%。用戶使用百度不僅僅是為了搜尋訊息，他們也越來越多地享受透過百度App可以存取的多樣化內容格式和閉環服務。透過我們建立的搜尋模組，用戶現在可以享受從資訊搜尋到事實查核、與行業參與者互動、購買產品和服務的全服務週期，而無需離開百度應用程式。

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.

在服務領域，我們對搜尋查詢的即時回覆在第四季度涵蓋了來自 19 個垂直行業的 40,000 多名行業參與者。從 9 月到 12 月，每日即時回覆總量增加了約 60%。尤其是百度健康，2021年第四季每日遠距醫療諮詢量成長至240萬次，比去年同期成長了62%。 12月份，百度App內搬家、家事等本地服務的月訂單量較去年同期成長5倍。百度推動的電子商務GMV雖然仍較小，但第四季與去年第一季相比成長了約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內影片內容的提供形式。 2021年，我們推出了橫豎短片無縫銜接的全沉浸式視訊體驗。這項功能和其他增強功能顯著提高了短影片的觀看人數，並提高了百度應用程式內的廣告轉換率。

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，託管頁面持續取得進展。 2021年託管頁面營收成長52%，佔百度核心廣告收入的40%。儘管 2021 年百度核心廣告收入成長了 12%，但宏觀經濟疲軟和新冠疫情捲土重來對 2021 年末的廣告產業造成了影響。第四季度，我們的廣告收入較上季下降 2%，年成長放緩至 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，中國決心推動科技創新，提升傳統產業。這個策略目標是中國「十四五」規劃期間提出的，今年1月初國務院辦公室再次強調。此外，北京市政府日前發布的2021年政府工作報告強調，到2022年，要加速建構智慧汽車、智慧交通、雲端、圖一體化綜合交通體系，高階自動駕駛發展達到全國領先水準。

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.

在這種有利的營運環境中，百度將繼續利用我們世界一流的人工智慧能力來發展我們的非廣告業務，這顯然是我們整體收入的成長引擎。對於來年，我們設定了以下四項營運重點：對於 AI Cloud，我們的目標是維持高於產業水準的營收成長。我們將繼續將人工智慧創新帶到各個傳統產業和公共服務領域，幫助我們的客戶提高效率、提升生產力。我們相信我們能夠在更多垂直領域中取得進一步的突破。

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.

在智慧駕駛方面，我們將進一步擴大Apollo Go的營運規模，為更多乘客提供旅遊服務。我們將穩步朝著在中國實現去除安全駕駛員、提供完全自動駕駛叫車服務的目標努力。

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.

我們將繼續擴大與 ASD 中更多汽車製造商的合作夥伴關係，特別是 ANP 和 AVP，使他們能夠在不斷發展的汽車行業中佔據更有利的地位。因此，我們期望進一步擴大我們的產品線。極度汽車計劃在今年 4 月北京車展上推出首款概念量產車後，於 2022 年下半年接受訂單，並計劃於 2023 年實現量產。

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

對於小度來說，我們將尋求有品質的收入成長和利潤率的提高。小度目前已完成兩輪融資。

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.

在行動生態方面，我們將持續利用人工智慧提升用戶在搜尋和資訊流方面的體驗，並進一步建構百度App內的閉環服務，滿足用戶的需求。此外，我們專注於健康和永續的商業模式，以便持續產生強勁的現金流，為我們對新的人工智慧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.

說完這些，請容許我將電話轉給榮先生，讓他介紹我們的財務亮點。

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，讓我向您介紹我們 2021 年第四季和全年財務業績的詳細資訊。

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.

我們以穩健的財務表現結束了 2021 年。百度核心第四季營收為260億元人民幣，較去年同期成長12%。 2021年，百度核心營收950億元人民幣，年增21%。非廣告業務成長非常迅速，第四季佔百度核心營收的26%，高於去年同期的18%，這表明我們先前在人工智慧方面的投資已經為百度當前以及中長期建立了新的成長引擎。 2021年全年，非廣告業務佔百度核心收入的22%，高於2020年的16%。在非廣告業務中，百度智能雲是明顯的收入成長動力。百度智能雲第四季營收年增60%至52億元人民幣，2021年營收年增64%至151億元人民幣，非IaaS業務佔百度智慧雲端營收的一半以上。

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 業務受益於許多客戶採用的多雲策略。我們的非IaaS業務受惠於百度強大的AI能力和中國傳統產業的升級。正如Robin之前提到的，百度智慧雲端在多個產業都取得了長足的進步。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當年增加了一倍以上。展望未來，我們的目標是讓百度智慧雲端的營收維持高於產業的成長。

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.

除百度智慧雲端外，百度核心非廣告業務包括智慧駕駛以及其他成長計劃，智慧駕駛主要包括來自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，以及我們的自動駕駛叫車車隊。小度是其他成長計畫的重要組成部分。小度持續實現穩健的收入成長。

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 年廣告收入較去年同期成長 12%。第四季度，由於宏觀環境疲軟和新冠疫情捲土重來，廣告收入較去年同期成長 1%，但季減 2%。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重大阻力的影響，短期內可能仍將面臨挑戰。話雖如此，我們的廣告業務應該保持相對的彈性，一旦宏觀環境開始改善，就應該會復甦。此外，我們預期營收多元化將持續，非廣告業務將呈現強勁成長。

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.

愛奇藝第四季營收為74億元人民幣，較去年同期下降1%。愛奇藝2021年營收306億元，年增3%。第四季營收成本為人民幣173億元，年增19%，主要由於流量獲取成本、頻寬成本、銷售成本以及與新AI業務相關的其他成本的增加。 2021年營收成本為人民幣643億元，較去年同期成長17%，主要由於內容成本、流量獲取成本、頻寬成本、銷售成本以及與新AI業務相關的其他成本的增加。

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.

第四季營運費用為人民幣138億元，年增29%，主要由於通路支出、促銷行銷和人員相關費用的增加。 2021年營業費用為人民幣497億元，年增32%，主要由於通路支出、推廣及行銷以及人員相關費用的增加。

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.

第四季非美國通用會計準則營業收入為43億元人民幣，非美國通用會計準則營業利益率為13%。非美國通用會計準則下，「百度核心」營業收入為人民幣48億元，營業利益率為19%。 2021年非美國通用會計準則營業收入為人民幣190億元。非美國通用會計準則「百度核心」營業收入為人民幣222億元。 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%.

第四季調整後EBITDA為58億元人民幣，調整後EBITDA利潤率為17%。 「百度核心」調整後EBITDA為人民幣62億元（約9.74億美元），調整後EBITDA利潤率為24%。 2021年調整後EBITDA為人民幣249億元（約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（約43.4億美元），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，我們持續投入新的AI業務，包括AI雲、智慧駕駛、智慧助理等。雖然百度核心的非 GAAP 營業利潤率自 2020 年起有所下降，但我們的投資帶來了非廣告收入的快速成長。總體而言，我們預計我們的廣告業務將繼續產生現金流，以支持我們的非廣告 AI 業務的快速成長。對於百度智慧雲，我們正努力維持 2020 年、2022 年及以後的快速收入成長。

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人民幣 1,865 億元或 292.7 億美元。 2021 年，百度（不包括愛奇藝）的自由現金流為人民幣 154 億元（約 24 億美元）。截至 2021 年 12 月 31 日，百度核心約有 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價值的幾句話。我們的許多年輕企業正在經歷令人興奮的發展。 2021年，我們完成了小度和百度崑崙的融資。 2022年1月下旬，極度完成A輪融資，融資金額近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.

我們的股票回購計畫的最新消息。我們在第四季向股東返還了 6.15 億美元，使 2021 年的累計回購額達到約 12 億美元。截至 2021 年底，我們已根據 2020 年股票回購計畫向股東返還了約 29 億美元，該計畫授權總額為 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，該公司決定不再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，好了，我們現在開始提問。

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

（操作員指示）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，管理層晚上好，感謝您回答這個問題，也祝賀您取得了堅實的成果。我想就這些問題向羅賓提問。我想你們的管理階層自 2019 年以來就一直在談論不同的業務轉型，而百度目前仍處於轉型期。您如何評估自己在過渡時期所取得的成就和進步？我記得，如果我記得的話，管理階層過去曾多次提到中國傳統產業轉型的順風。所以我想知道，當我們進入 2022 年時，您將如何量化其中的一些機會？

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，艾莉西亞。如您所見，2021 年結束時，非廣告業務在去年第四季佔百度核心的 26%。一年前，這一比例為18%。我們的新人工智慧業務的成長速度快於行業平均水平。 2021年是充滿挑戰與機會的一年。儘管宏觀經濟、地緣政治緊張等因素帶來不確定性，但有一點是肯定的。那就是世界正在走向人工智慧。

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.

正如我在演講中提到的，百度已經將人工智慧引入各個傳統產業和公共服務領域，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，並且我們在運輸、製造、能源和公用事業等行業中取得了突破。隨著越來越多的汽車製造商認識到人工智慧的重要性，他們向我們表示，他們希望在越來越多的熱門車型上使用 ASD 和 DuerOS for Auto。這可能意味著數十億美元的銷售額，我們預計這一趨勢今年將持續下去。

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 已大幅擴大其業務規模。如果您恰好在我們剛才在準備好的演講中提到的任何一個城市，歡迎您透過百度地圖或 Apollo Go 應用程式試用我們的服務。它聽起來像是一位經驗豐富、細心的駕駛員，但實際上，它是由人工智慧驅動的。我們相信，在開放道路上為乘客提供更多的乘車體驗將有助於我們進一步完善 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導地位。

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，在政策利好的背景下，我們將繼續擴大我們的AI雲，並在智慧駕駛方面取得進一步的突破。同時，我們注重移動生態系統的健康和永續發展。未來幾年，人工智慧生成的內容可能會成為我們的一大差異化因素。所以總的來說，我認為人工智慧對我們成長的貢獻將在 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 Robin、Rong Luo、Juan 回答我的問題。恭喜您又一個季度取得穩健的業績，您能否分享一下對 2022 年第一季整體業務前景的看法？此外，我們該如何取得 2022 年的業務利潤？

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們的雲端業務，它的成長非常好，超過了產業的發展速度。您認為今年剩餘時間內推動該業務發展的因素有哪些？另外，如果您可以評論一下雲端業務的利潤前景，將其按毛利率和營業利潤率分開。非常感謝。

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，Piyush。我認為這是一個非常好的問題。回顧去年的業務並展望未來，2021年，百度核心的營收將成長21%，達到950億元人民幣，主要得益於百度人工智慧雲端的推動。百度智能雲去年成長64%，達到151億元人民幣，貢獻了70%以上的核心非廣告收入。正如我們在準備好的評論中所提到的，百度智慧雲在幾個重要的垂直領域中取得了突破。正如羅賓剛才提到的，來自交通運輸、製造業、能源和公用事業以及公共部門的總收入去年增加了一倍以上。當客戶意識到擁有我們的人工智慧能力後，他們會變得更強大。這或許就是為什麼去年我們看到來自同一客戶的重複購買以及在各個行業的滲透不斷加深的原因。

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.

特別要關注的是我們的ACE智慧交通，幾年前才從零開始，到現在一直保持著強勁的成長動能。 2021年，ACE智慧交通營收實現三位數成長。

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.

這些垂直領域的突破，讓我們有信心維持AI雲的穩健成長勢頭，2022年我們的目標是實現高於產業的成長。需要提醒大家的是，我們的雲端收入可能會出現季度環比波動，建議大家專注在年度收入成長，這樣更有意義。另外，我們不得不說，百度智能雲包括兩個部分。個人雲端服務和企業及公有部門雲端服務。個人雲端服務的收入僅佔一小部分，由於利潤率相對較高，其成長速度低於整體雲端收入。來自企業和公共部門（包括智慧交通）的收入一直超過整體人工智慧雲端業務的成長。從長遠來看，我們相信隨著我們的解決方案更加成熟和標準化，我們的AI雲的利潤率將會提高。

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，百度核心廣告收入成長12%，利潤率維持健康。需要注意的是，受宏觀環境和新冠疫情復發等因素影響，廣告業短期內面臨挑戰。我們可能會看到百度核心廣告收入成長在第一季從 2021 年第四季開始放緩。話雖如此，如果新冠疫情趨勢在第一季之後沒有惡化，那麼第一季應該標誌著該行業的底部。整體而言，我們相信，一旦宏觀環境開始改善，我們的廣告業務就會復甦。

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，展望未來，我們將保持嚴謹的態度，平衡投資和回報，確保廣告業務健康發展。管理健康成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.

在非廣告和我們的AI雲業務中，小度是一個重要的組成部分。 2021年小度收入成長良好，我們的目標是在2022年維持穩健的營收成長動能。在非雲端業務中，智慧駕駛也取得了一些突破。正如Robin所提到的，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多年來的多款熱銷車型。這是百度ASD業務前景光明的例子。雖然此類合作的收入將隨著每款車型的出貨在未來幾年內得到確認，但我們對已經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.

總而言之，我認為我們將繼續對人工智慧業務進行精細投資，特別是在智慧駕駛和人工智慧雲端領域，這兩個領域發展迅速。我們相信，從長遠來看，所有這些都將產生巨大的成長潛力。謝謝你，Piyush。

Our next question comes from Alex Yao from JPMorgan.

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?

感謝管理層回答這個問題，並祝賀阿波羅本季再次創下載客量紀錄。我的問題是，在道路條件極為複雜的條件下，Apollo如何在中國城市實現大規模自動駕駛叫車營運？另外，您對 Apollo Go 有何策略來加速其營運和技術路線圖？

I'll have Zhen Yu answer your question.

我讓振宇來回答你的問題。

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所提到的，2021年，我們在4級自動駕駛技術領域的先發優勢，擴大了Apollo Go的營運規模。今天，我們相信我們已經是世界上最大的自動駕駛叫車服務提供商，我們完成的叫車次數就是明證。

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.

從我們的經驗來看，規模化的公眾營運可以產生大量長尾數據，數據品質更好，也更符合實際用戶需求，這一點與小規模的試駕有所不同。這些數據與我們的模擬系統結合，形成飛輪效應，推動技術迭代加速，進而提升安全性能和消費者體驗，降低成本。

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.

我想您提到了中國複雜的道路狀況。 Apollo如何克服各種挑戰，提供自動駕駛叫車服務？我認為我們的業務的一個顯著特點是我們的整體方法，它協同我們的ACE智慧交通解決方案、自動駕駛汽車、地圖和雲端服務，以提高中國複雜城市道路的安全性能。我們的北京亦莊計畫就是一個很好的例子。亦莊是北京經濟技術開發區，是典型的中國城市道路場景。 Apollo早在2018年就在亦莊進行自動駕駛測試，2020年起與北京市政府合作，興建高水準自動駕駛示範區。

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.

短短四年時間，Apollo Go 從 L4 測試階段發展到規模化運營，服務亦莊地區的乘客。去年11月，我們開始收費。如今，每天有近百輛自動駕駛汽車在亦莊提供叫車服務。截至 2021 年底，每輛自動駕駛叫車平均每天提供約 20 次出行服務。

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，從覆蓋30個路口增加到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？目前，阿波羅正在亦莊定期進行無人駕駛的全自動駕駛測試。我們正在穩步努力，在不久的將來實現去除安全駕駛員並提供完全自動駕駛的叫車服務的目標。我們相信，減少安全駕駛員的數量將使我們能夠大幅降低成本和費用，並幫助企業在未來創造利潤。

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，我想強調的是，我們的自動駕駛業務正在良好的營運環境中發展。北京市政府已宣布計劃在2022年將自動駕駛區域擴展至大面積區域。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，並為Apollo Go自動駕駛叫車服務提供公共營運支援。我們相信，在不久的將來，這些城市將效仿亦莊，採用我們的整體方法體系解決方案。

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.

我們最近也擴大了Apollo Go在北京、重慶和陽泉的商業營運。我們相信，我們將繼續受益於中國將自動駕駛打造為民族驕傲和本土技術的雄心。謝謝。

Our next question comes from Gary Yu from Morgan Stanley.

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?

大家好，管理層晚上好，感謝你們給予的機會，並祝賀你們在人工智慧和智慧駕駛方面取得的巨大進步。我認為圍繞這些領域的大多數問題都已經被問過了。我的問題更與行銷和廣告業務有關。所以我認為您之前提到過，我們認為第一季的成長將會放緩，但應該標誌著底部。那麼，我們該如何看待宏觀經濟、新冠疫情和法規對您的廣告或行銷收入的影響？當您考慮到我們隨後報導的第一季可能出現的成長放緩時，第一季的情況會有多糟糕？那麼，我們該如何看待今年剩餘時間的復甦趨勢呢？

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相關，更多的是長期問題。因此，我認為百度面臨的另一個政策順風是生態系統更加開放。我們可能會看到平台更具互通性，從而帶來更多潛在機會。那麼在影片搜尋、電子商務方面，我們目前取得了什麼樣的進展？我們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.

對於第一個問題，我們的廣告業務與宏觀發展高度相關。因此，正如 Julius 已經提到的那樣，宏觀經濟和 COVID-19 影響了整個行業，顯然也影響了我們第四季度的業務。這些挑戰可能會在第一季持續存在。教育、房地產、特許經營、旅遊等第四季度表現不佳的行業，在第一季也有可能得到解決。同時，我們對宏觀經濟情勢發展持謹慎樂觀的態度，因為我們已經看到許多宏觀經濟調控措施正在實施，並可能對經濟產生正面影響。我們已經看到醫療保健等一些行業復甦和發展勢頭的早期跡象。我們相信，一旦宏觀環境開始改善，我們的廣告業務開始正常化，隨著經濟復甦，第一季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，我們的策略是建立更強大的用戶基礎和商業化能力，這也使我們的廣告業務和行動生態系統比以前更具彈性。正如 Robin 所提到的，我們透過對智慧小程式、託管頁面、百家號等建置模組的努力，大力豐富了百度 App 內的內容和閉環服務。反過來，使用者對內容和服務消費的體驗以及廣告和非廣告的商業轉換也相應得到增強。我們的行動生態系統，從中長期來看，將成為一個能夠一站式滿足用戶大部分需求的平台。

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，除了廣告之外，我們相信直播獎勵、佣金、訂閱、會員等貨幣化方式也將大幅成長。因此，在仍在投資行動生態系統的許多舉措的同時，我們相信我們有能力繼續使我們的利潤率健康且可持續地向前發展。

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.

對於您提到的第二個問題，即互通性，我們認為這對整個互聯網來說非常非常重要，並將形成一個根本性的開放生態系統，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，搜尋的本質是開放的，百度也一直在努力加強行動生態系統的開放性。我們已經取得了有意義的進展，並且相信未來還會取得更多進展。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.

內容方面，除了百家號之外，我們還利用H5和智能小程序，讓我們的用戶能夠訪問來自中國頂級以及長尾應用程序的大量內容，涵蓋長視頻平台、短視頻平台（如嗶哩嗶嗶）、生活方式平台（如小紅書）、播客應用程序以及更多具有原生應用程序體驗的長尾哩漫畫應用程序。

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，在購物方面，我們之前提到過，我們已經從主要合作夥伴平台為用戶提供了超過 10 億個 SKU。再次對於智慧小程式的服務，我們現在可以滿足各種用戶請求，涵蓋近300個服務類別，來自美團、外帶、攜程等頂級平台以及貓眼、華律等許多垂直平台。

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.

最後但同樣重要的一點是，我們從一開始就開源了我們的智慧小程式框架，以賦能我們的合作夥伴，使小程式能夠在他們的應用程式中無縫運行。近期，OPPO、VIVO、小米等頭部智慧型手機廠商紛紛在自家瀏覽器中採用百度智慧小程式框架，小程式日活躍用戶數新增逾2000萬。我們已經看到，這正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，互聯互通不僅能為百度帶來更多的市場機會，還能為整個產業帶來更多的市場機會。我們將繼續密切關注事態發展，並盡自己的努力加快行動。謝謝你，加里。

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

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.

我的大部分問題現在都已經被問過了。只是好奇您對現金的使用情況，您是否包括投資計劃以及回購計劃中的任何潛在增加？至於投資，我們注意到你們許多主要的同業都在談論未來在投資方面要更加自律。所以想知道您是否有 2022 年的類似策略。

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.

謝謝你的提問。我想就我們的企業策略而言，我想強調的是，最重要的投資始終是投資我們自己。如果你看看我們今天的業務，你會發現我們的成長顯然是由非廣告業務推動的，該業務目前已佔總收入的 26%。非廣告業務主要由AI雲端營運、智慧駕駛、小度等AI相關成長措施所構成。所有這些對我們來說都是一種新業務，需要更多的投資。這些AI業務代表了不同的成長階段，對於百度創造充足的長期收入成長空間非常重要。我們的投資充滿成長潛力。因此，我們將繼續對人工智慧、對自己進行策略性投資，特別是在智慧駕駛和人工智慧雲端方面，為我們未來的成長奠定堅實的基礎。同時，我們將保持開放態度，但也會非常自律地投資於兩家企業，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.

在資本配置方面，是的，我們的一些新業務已經完成了融資，並為其未來的發展需求創造了更多的資本。另一方面，這樣的安排可以更好地協調管理者和員工的利益，我認為未來我們會保持開放的態度，願意引入更多樣化的投資者，包括策略投資者，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.

此外，您也提到了股票回購計畫。我認為我們的人工智慧業務被市場低估了。例如，市場對我們的智慧駕駛業務還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年股票回購計畫向股東返還約29億美元。我認為這反映了我們業務方向的狀況。感謝您的提問。

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取得的更多勝利，特別是與比亞迪達成的新合作協議。所以我只想問一下，您能提供哪些營運指標來幫助我們量化這個機會有多大，這個業務有多大？這些合作關係將如何使 ADS 業務受益？它將如何有利於整體收入？

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。 （聽不清楚）連網汽車正成為汽車銷售的新亮點。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內部解決方案更好。這就是許多汽車製造商選擇與我們合作的原因。我們的車載資訊娛樂系統 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.

正如您所說，比亞迪就是一個很好的例子。他們是中國最大的電動車製造商之一。它可能佔了去年中國新電動車市場的近20%，去年新電動車的銷量成長了200%以上。他們選擇我們作為合作夥伴，為多年來多種流行的電動車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.

隨著智慧電動車在中國的普及，我們相信百度強大的自動駕駛能力將使我們處於非常有利的地位來贏得更多的業務。截至去年底，根據我們的內部估計，新贏家的ASD和DuerOS for Auto預計累計銷售額總計約為人民幣80億元。那是未實現收入。過去2-3年，這個金額成長非常快，尤其是ASD的貢獻非常強勁。

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。我會盡力把這些數字講清楚。我們看到過去幾年 ASD 和 DuerOS 汽車累積銷售的數字非常可觀。成長前景十分可觀。但這個數字，其中包括了合約方和客戶的提名信。我認為在汽車行業，提名信意味著供應商已成功被 OEM 或某些項目接受。在收到提名信件之後，OEM 通常會與供應商簽訂合約。我們的估計可能基於我們對新車型的時間、定價和未來銷售量的假設，根據與客戶的討論，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情況確認收入。我希望這能讓您更了解我們的ASD業務。

Our next question comes from James Lee from Mizuho.

下一個問題來自瑞穗的詹姆斯李。

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。我最近讀了您最近出版的有關智慧交通的書。具體來說，在這本書中，你們詳細闡述了產業格局的許多細節，包括 V2X、交通管理、智慧電動車和自動駕駛。那麼，從您在書中提到的各種利益來看，百度的中期策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.

首先我要說一下我寫這本書的原因。 AI技術的應用為眾多產業的數位轉型提供了新思路、新解決方案。我認為交通和汽車可能是最好的例子。在本書中，我展示了人工智慧如何重塑這個產業並為所有利害關係人創造巨大的價值。

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.

智慧交通系統（ITS）有兩大基石：一是智慧網聯汽車，二是路邊基礎建設。這兩個獨立工作效果很好，但結合起來效果會更好。該系統將人工智慧、5G、雲端運算等多種技術與交通運輸和汽車產業深度整合。

It is dedicated solving 3 major issues:

它致力於解決三大問題：

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

一是最大限度減少道路安全事故。 94%的道路交通事故都是由於人為駕駛失誤造成的，自動駕駛將更加安全。

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%

二是系統性緩解擁塞。根據我們在中國部分城市的經驗，我們的 Apollo V2X 車路基礎設施已協助減少尖峰時段的交通擁堵 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.

第三，減少碳排放。公路運輸佔交通運輸領域碳排放量的80%以上。因此，提高交通系統的效率對於永續發展至關重要。

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.

人工智慧正在重塑交通運輸和移動出行產業，創造出萬億美元的產業機會。中國城市道路有30多萬個路口，約15萬公里高速公路，數千萬個停車場。這一切都在利用AI技術升級的過程中。更不用說自動駕駛叫車和智慧電動車的市場機會。

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

正如我在準備好的演講中提到的，百度在智慧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.

中長期目標是：2025年將Apollo Go的覆蓋範圍擴大到65個城市，2030年擴大到100個城市，並將我們的智慧交通拓展到更多城市，並加深在每個城市的滲透率。

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是未來數位化城市運作的縮影。我認為AI技術輔助的數位城市營運模式將是一個很好的解決方案。透過AI新基建，我們有信心進一步為產業和城市的數位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。問答環節已結束。女士們、先生們，今天的會議到此結束。感謝您的參與。你們都可以斷開連線。