Form 6-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER

THE SECURITIES EXCHANGE ACT OF 1934

For the month of April 2012

Commission File Number: 000-51469

 

 

BAIDU, INC.

 

 

Baidu Campus

No. 10 Shangdi 10th Street

Haidian District, Beijing 100085

The People’s Republic of China

(Address of principal executive offices)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F  x            Form 40-F  ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):              

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):              

 

 

 


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

BAIDU, INC.
By   :   /s/ Robin Yanhong Li
Name   :   Robin Yanhong Li
Title   :   Chief Executive Officer

Date: April 25, 2012


Exhibit Index

Exhibit 99.1—Press Release

Press Release

Exhibit 99.1

Baidu Announces First Quarter 2012 Results

BEIJING, China, April 24, 2012 – Baidu, Inc. (NASDAQ: BIDU), the leading Chinese language Internet search provider, today announced its unaudited financial results for the first quarter ended March 31, 20121.

First Quarter 2012 Highlights

 

   

Total revenues in the first quarter of 2012 were RMB4.264 billion ($677.1 million), a 75.0% increase from the corresponding period in 2011.

 

   

Operating profit in the first quarter of 2012 was RMB2.091 billion ($332.1 million), a 75.1% increase from the corresponding period in 2011.

 

   

Net income attributable to Baidu in the first quarter of 2012 was RMB1.883 billion ($299.0 million), a 75.9% increase from the corresponding period in 2011. Diluted earnings attributable to Baidu per ADS for the first quarter of 2012 were RMB5.38($0.85); diluted earnings attributable to Baidu per ADS excluding share-based compensation expenses (non-GAAP) for the first quarter of 2012 were RMB5.48 ($0.87).

“We’ve started the year with solid financial results and steady business progress,” said Robin Li, chairman and chief executive officer of Baidu. “Although this is usually a seasonally slow quarter, our effective sales and marketing efforts enabled us to expand our SME customer base significantly.”

Mr. Li continued, “China’s Internet landscape is evolving quickly and we are very excited about fast-emerging opportunities in areas such as mobile and Cloud Computing. We believe that Baidu is uniquely positioned to capture this immense growth potential in the Chinese online market.”

Jennifer Li, Baidu’s chief financial officer, commented, “We kept up our pace of investment in talent and network infrastructure in the first quarter in support of our long-term growth initiatives. We are committed to this aggressive investment strategy for the year ahead and will maintain our focus on managing operational efficiency to ensure sustainable growth.”

First Quarter 2012 Results

Baidu reported total revenues of RMB4.264 billion ($677.1 million) for the first quarter of 2012, representing a 75.0% increase from the corresponding period in 2011.

 

 

1 

This announcement contains translations of certain RMB amounts into U.S. dollars at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB6.2975 to US$1.00, the effective noon buying rate as of March 30, 2012 in The City of New York for cable transfers of RMB as certified for customs purposes by the Federal Reserve Bank of New York.


Online marketing revenues for the first quarter of 2012 were RMB4.261 billion ($676.5 million), representing a 75.0% increase from the corresponding period in 2011. Baidu had about 321,000 active online marketing customers in the first quarter of 2012, representing a 17.2% increase from the corresponding period in 2011 and a 3.2% increase from the fourth quarter of 2011. Revenue per online marketing customer for the first quarter was approximately RMB13,300 ($2,112), a 49.4% increase from the corresponding period in 2011 and a 7.6% decrease compared to the fourth quarter of 2011.

Traffic acquisition cost (TAC) as a component of cost of revenues was RMB331.3 million ($52.6 million), representing 7.8% of total revenues, as compared to 8.2% in the corresponding period in 2011 and 7.9% in the fourth quarter of 2011.

Bandwidth costs as a component of cost of revenues were RMB222.6 million ($35.4 million), representing 5.2% of total revenues, compared to 5.0% in the corresponding period in 2011. Depreciation costs as a component of cost of revenues were RMB233.4 million ($37.1 million), representing 5.5% of total revenues, compared to 5.0% in the corresponding period in 2011. These increases were mainly due to an increase in network infrastructure capacity.

Selling, general and administrative expenses were RMB478.5 million ($76.0 million), representing an increase of 43.9% from the corresponding period in 2011, primarily due to an increase in personnel-related expenses.

Research and development expenses were RMB443.2 million ($70.4 million), an 85.2% increase from the corresponding period in 2011. The increase was primarily due to an increase in the number of research and development personnel.

Share-based compensation expenses, which were allocated to related operating costs and expense line items, were RMB35.2 million ($5.6 million) in the first quarter of 2012, compared to RMB31.3 million in the corresponding period in 2011 and RMB46.6 million in the fourth quarter of 2011.

Operating profit was RMB2.091 billion ($332.1 million), representing a 75.1% increase from the corresponding period in 2011. Operating profit excluding share-based compensation expenses (non-GAAP) was RMB2.127 billion ($337.7 million), a 73.5% increase from the corresponding period in 2011.

Income tax expense was RMB331.2 million ($52.6 million), compared to an income tax expense of RMB181.3 million in the corresponding period in 2011. The effective tax rate for the first quarter of 2012 was 15.1% as compared to 14.5% for the corresponding period in 2011 and 16.5% in the fourth quarter of 2011.

Net income attributable to Baidu was RMB1.883 billion ($299.0 million), representing a 75.9% increase from the corresponding period in 2011. Basic and diluted earnings per ADS for the first quarter of 2012 amounted to RMB5.39 ($0.86) and RMB5.38 ($0.85), respectively.


Net income attributable to Baidu excluding share-based compensation expenses (non-GAAP) was RMB1.918 billion ($304.6 million), a 74.1% increase from the corresponding period in 2011. Basic and diluted earnings per ADS excluding share-based compensation expenses (non-GAAP) for the first quarter of 2012 amounted to RMB5.49 ($0.87) and RMB5.48 ($0.87), respectively.

As of March 31, 2012, the Company had cash, cash equivalents and short-term investments of RMB16.115 billion ($2.559 billion). Net operating cash inflow for the first quarter of 2012 was RMB2.367 billion ($375.9 million). Capital expenditures for the first quarter of 2012 were RMB298.1 million ($47.3 million).

Adjusted EBITDA (non-GAAP), defined in this announcement as earnings before interest, taxes, depreciation, amortization, other non-operating income and share-based compensation expenses, was RMB2.442 billion ($387.8 million) for the first quarter of 2012, representing a 76.0% increase from the corresponding period in 2011.

Outlook for Second Quarter 2012

Baidu currently expects to generate total revenues in an amount ranging from RMB5.335 billion ($847.2 million) to RMB5.460 billion ($867.0 million) for the second quarter of 2012, representing a 56.2% to 59.9% year-over-year increase. This forecast reflects Baidu’s current and preliminary view, which is subject to change.

Conference Call Information

Baidu’s management will hold an earnings conference call at 8:00 PM on April 24, 2012 U.S. Eastern Time (8:00 AM on April 25, 2012 Beijing/Hong Kong Time).

Dial-in details for the earnings conference call are as follows:

 

  US/International:    +1-718-354-1231
  UK:    +44-20-3059-8139
  Hong Kong:    +852-2475-0994

     Passcode for all regions: 71227990

A replay of the conference call may be accessed by phone at the following number until May 1, 2012:

International:

+17183541232

Passcode: 71227990

Additionally, a live and archived webcast of this conference call will be available at http://ir.baidu.com.

 


About Baidu

Baidu, Inc. is the leading Chinese language Internet search provider. As a technology-based media company, Baidu aims to provide the best way for people to find information. In addition to serving individual Internet search users, Baidu provides an effective platform for businesses to reach potential customers. Baidu’s ADSs trade on the NASDAQ Global Select Market under the symbol “BIDU”. Currently, ten ADSs represent one Class A ordinary share.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. Among other things, the outlook for the second quarter 2012 and quotations from management in this announcement, as well as Baidu’s strategic and operational plans, contain forward-looking statements. Baidu may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Baidu’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: our growth strategies; our future business development, including development of new products and services; our ability to attract and retain users and customers; competition in the Chinese and Japanese language Internet search markets; competition for online marketing customers; changes in our revenues and certain cost or expense items as a percentage of our revenues; the outcome of ongoing, or any future, litigation or arbitration, including those relating to intellectual property rights; the expected growth of the Chinese language Internet search market and the number of Internet and broadband users in China; Chinese governmental policies relating to the Internet and Internet search providers and general economic conditions in China, Japan and elsewhere. Further information regarding these and other risks is included in our annual report on Form 20-F and other documents filed with the Securities and Exchange Commission. Baidu does not undertake any obligation to update any forward-looking statement, except as required under applicable law. All information provided in this press release and in the attachments is as of the date of the press relesae, and Baidu undertakes no duty to update such information, except as required under applicable law.


About Non-GAAP Financial Measures

To supplement Baidu’s consolidated financial results presented in accordance with GAAP, Baidu uses the following measures defined as non-GAAP financial measures by the SEC: adjusted EBITDA, operating profit excluding share-based compensation expenses, net income excluding share-based compensation expenses, and basic and diluted earnings per ADS excluding share-based compensation expenses. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. For more information on these non-GAAP financial measures, please see the tables captioned “Reconciliations of non-GAAP results of operations measures to the nearest comparable GAAP measures” and “Reconciliation from net cash provided by operating activities to adjusted EBITDA” set forth at the end of this release.

Baidu believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance and liquidity by excluding certain expenses, particularly share-based compensation expenses, that may not be indicative of its operating performance or financial condition from a cash perspective. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to Baidu’s historical performance and liquidity. Baidu has computed its non-GAAP financial measures using the same consistent method from quarter to quarter since April 1, 2006. We believe these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. A limitation of using these non-GAAP financial measures is that these non-GAAP measures exclude share-based compensation charge that has been and will continue to be for the foreseeable future a significant recurring expense in our results of operations. A limitation of using non-GAAP adjusted EBITDA is that it does not include all items that impact our net income for the period. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying tables have more details on the reconciliations between GAAP financial measures that are most directly comparable to the non-GAAP financial measures.

For investor and media inquiries, please contact:

China

Victor Tseng

Baidu, Inc.

Tel: +86-10-5992-7244

ir@baidu.com

Cynthia He

Brunswick Group LLC

Tel: +86-10-5960-8600

che@brunswickgroup.com


U.S.

Cindy Zheng

Brunswick Group

Tel: +1-212-333-3810

Email: czheng@brunswickgroup.com


Baidu, Inc.

Condensed Consolidated Balance Sheets

 

     March 31     December 31  

(in RMB thousands)

   2012     2011  
     Unaudited     Audited  

ASSETS

    

Current assets:

    

Cash and cash equivalents

     6,254,364        4,127,482   

Restricted cash

     327,759        483,387   

Short-term investments

     9,861,061        10,051,578   

Accounts receivable, net

     615,939        599,558   

Due from related parties

     187,732        149,728   

Deferred tax assets, net

     194,992        121,411   

Other assets, current

     135,498        315,012   
  

 

 

   

 

 

 

Total current assets

     17,577,345        15,848,156   
  

 

 

   

 

 

 

Non-current assets:

    

Fixed assets, net

     2,689,832        2,744,241   

Intangible assets, net

     899,403        928,511   

Goodwill

     2,418,284        2,419,542   

Long-term investments, net

     711,397        734,360   

Due from related parties

     100,000        100,000   

Deferred tax assets, net

     52,144        52,125   

Other assets, non-current

     551,680        513,606   
  

 

 

   

 

 

 

Total non-current assets

     7,422,740        7,492,385   
  

 

 

   

 

 

 

Total assets

     25,000,085        23,340,541   
  

 

 

   

 

 

 

LIABILITIES AND EQUITY

    

Current liabilities:

    

Short-term loans

     —          125,878   

Accounts payable and accrued liabilities

     2,301,238        2,545,445   

Customer advances and deposits

     1,467,076        1,573,967   

Deferred revenue

     36,423        62,705   

Deferred income

     36,920        34,779   

Due to related parties

     47,231        —     

Long-term loans, current portion

     69,000        46,000   

Capital lease obligation

     13,902        17,773   
  

 

 

   

 

 

 

Total current liabilities

     3,971,790        4,406,547   
  

 

 

   

 

 

 

Non-current liabilities:

    

Deferred income

     224,413        19,942   

Long-term loans

     2,259,119        2,277,925   

Due to related parties

     148,959        148,873   

Deferred tax liabilities

     127,457        131,629   

Capital lease obligation

     26,541        30,112   
  

 

 

   

 

 

 

Total non-current liabilities

     2,786,489        2,608,481   
  

 

 

   

 

 

 

Total liabilities

     6,758,279        7,015,028   
  

 

 

   

 

 

 

Redeemable noncontrolling interests

     925,089        935,978   

Equity

    

Class A Ordinary Shares, par value US$0.00005 per share, 825,000,000 shares authorized, and 27,111,117 shares and 27,124,355 shares issued and outstanding as at December 31, 2011 and March 31, 2012

     12        12   

Class B Ordinary Shares, par value US$0.00005 per share, 35,400,000 shares authorized, and 7,803,000 shares and 7,803,000 shares issued and outstanding as at December 31, 2011 and March 31, 2012

     3        3   

Additional paid-in capital

     1,823,533        1,771,770   

Retained earnings

     15,487,309        13,604,334   

Accumulated other comprehensive loss

     (88,536     (84,403
  

 

 

   

 

 

 

Total Baidu, Inc. shareholders’ equity

     17,222,321        15,291,716   

Noncontrolling interests

     94,396        97,819   

Total equity

     17,316,717        15,389,535   
  

 

 

   

 

 

 

Total liabilities and equity

     25,000,085        23,340,541   
  

 

 

   

 

 

 


Baidu, Inc.

Condensed Consolidated Statements of Income

 

     For the Three Months Ended  

(in RMB thousands except for share, per share (or ADS) information)

   March 31,
2012
    March 31,
2011
    December 31,
2011
 
     Unaudited     Unaudited     Unaudited  

Revenues:

      

Online marketing services

     4,260,530        2,434,780        4,466,664   

Other services

     3,197        1,426        7,429   
  

 

 

   

 

 

   

 

 

 

Total revenues

     4,263,727        2,436,206        4,474,093   
  

 

 

   

 

 

   

 

 

 

Operating costs and expenses:

      

Cost of revenues (note 1, 2)

     (1,250,550     (669,713     (1,240,588

Selling, general and administrative (note 2)

     (478,549     (332,609     (522,449

Research and development (note 2)

     (443,162     (239,282     (413,779
  

 

 

   

 

 

   

 

 

 

Total operating costs and expenses

     (2,172,261     (1,241,604     (2,176,816
  

 

 

   

 

 

   

 

 

 

Operating profit

     2,091,466        1,194,602        2,297,277   
  

 

 

   

 

 

   

 

 

 

Other income:

      

Interest income, net

     156,936        41,724        133,076   

Foreign exchange (loss) gain, net

     (10     (1,933     2,374   

Loss from equity method investments

     (45,868     (7,861     (7,794

Other income, net

     (3,510     25,324        21,044   
  

 

 

   

 

 

   

 

 

 

Total other income

     107,548        57,254        148,700   
  

 

 

   

 

 

   

 

 

 

Income before income taxes

     2,199,014        1,251,856        2,445,977   
  

 

 

   

 

 

   

 

 

 

Income taxes

     (331,196     (181,299     (404,492

Net income

     1,867,818        1,070,557        2,041,485   
  

 

 

   

 

 

   

 

 

 

Net loss attributable to noncontrolling interests

     (15,157     —          (12,185

Net income attributable to Baidu, Inc.

     1,882,975        1,070,557        2,053,670   
  

 

 

   

 

 

   

 

 

 

Earnings per share for Class A and Class B ordinary shares:

      

Net income attributable to Baidu,Inc.-Basic

     53.93        30.71        58.83   

Net income attributable to Baidu,Inc.-Diluted

     53.84        30.63        58.73   

Earnings per ADS (1 Class A ordinary share equals 10 ADSs ):

      

Net income attributable to Baidu,Inc.-Basic

     5.39        3.07        5.88   

Net income attributable to Baidu,Inc.-Diluted

     5.38        3.06        5.87   

Weighted average number of Class A and Class B ordinary shares outstanding:

      

Basic

     34,918,054        34,865,552        34,907,318   

Diluted

     34,972,390        34,953,148        34,966,028   

(1) Cost of revenues are detailed as follows:

      

Business tax and surcharges

     (310,021     (159,426     (327,624

Traffic acquisition costs

     (331,277     (198,602     (353,762

Bandwidth costs

     (222,648     (121,852     (192,230

Depreciation costs

     (233,442     (122,843     (214,866

Operational costs

     (152,317     (65,269     (149,938

Share-based compensation expenses

     (845     (1,721     (2,168
  

 

 

   

 

 

   

 

 

 

Total cost of revenues

     (1,250,550     (669,713     (1,240,588
  

 

 

   

 

 

   

 

 

 

(2) Includes share-based compensation expenses as follows:

      

Cost of revenues

     (845     (1,721     (2,168

Selling, general and administrative

     (13,994     (11,509     (14,113

Research and development

     (20,320     (18,083     (30,360
  

 

 

   

 

 

   

 

 

 

Total share-based compensation expenses

     (35,159     (31,313     (46,641
  

 

 

   

 

 

   

 

 

 


Reconciliations of non-GAAP results of operations measures to the nearest comparable GAAP measures (*) (in RMB thousands, unaudited)

 

    Three months ended March 31, 2011     Three months ended December 31, 2011     Three months ended March 31, 2012  
    GAAP Result     Adjustment     Non-GAAP Results     GAAP Result     Adjustment     Non-GAAP Results     GAAP Result     Adjustment     Non-GAAP Results  

Operating profit

    1,194,602        31,313        1,225,915        2,297,277        46,641        2,343,918        2,091,466        35,159        2,126,625   
    Three months ended March 31, 2011     Three months ended December 31, 2011     Three months ended March 31, 2012  
    GAAP Result     Adjustment     Non-GAAP Results     GAAP Result     Adjustment     Non-GAAP Results     GAAP Result     Adjustment     Non-GAAP Results  

Net income attributable to Baidu, Inc.

    1,070,557        31,313        1,101,870        2,053,670        46,641        2,100,311        1,882,975        35,159        1,918,134   

 

(*) The adjustment is only for share-based compensation.


Reconciliation from net cash provided by operating activities to adjusted EBITDA(*) (in RMB thousands, unaudited)

 

    Three months ended     As a % of     Three months ended     As a % of     Three months ended     As a % of  
    March 31, 2011     total revenues     December 31, 2011     total revenues     March 31, 2012     total revenues  

Net cash provided by operating activities

    977,306        40     3,357,790        75     2,366,922        56

Changes in assets and liabilities, net of effects of acquisitions

    286,139        12     (973,970     -22     (148,216     -4

Income taxes expenses

    181,299        7     404,492        9     331,196        8

Interest income and other, net

    (57,254     -2     (148,700     -3     (107,548     -3
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

    1,387,490        57     2,639,612        59     2,442,354        57
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(*) Definition of adjusted EBITDA: earnings before interest, taxes, depreciation, amortization, other non-operating income, and share-based compensation expenses.