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 February 2014

 

 

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.

 

Date: February 27, 2014

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Exhibit Index

Exhibit 99.1—Press Release

Exhibit 99.1

Baidu Announces Fourth Quarter and Fiscal Year 2013 Results

BEIJING, China, February 26, 2014 – Baidu, Inc. (NASDAQ: BIDU) (“Baidu” or the “Company”), the leading Chinese language Internet search provider, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2013¹.

Fourth Quarter and Fiscal Year 2013 Highlights

 

•

Total revenues in the fourth quarter of 2013 were RMB9.523 billion ($1.573 billion), a 50.3% increase from the corresponding period in 2012.

 

•

Total revenues in fiscal year 2013 were RMB31.944 billion ($5.277 billion), a 43.2% increase from 2012.

 

•

Operating profit in the fourth quarter of 2013 was RMB2.740 billion ($452.6 million), a 3.8% decrease from the corresponding period in 2012.

 

•

Operating profit in fiscal year 2013 was RMB11.192 billion ($1.849 billion), a 1.3% increase from 2012.

 

•

Net income attributable to Baidu in the fourth quarter of 2013 was RMB2.784 billion ($459.9 million), a 0.4% decrease from the corresponding period in 2012. Diluted earnings attributable to Baidu per ADS for the fourth quarter of 2013 were RMB7.90 ($1.30); diluted earnings attributable to Baidu per ADS excluding share-based compensation expenses (non-GAAP) for the fourth quarter of 2013 were RMB8.40 ($1.39).

 

•

Net income attributable to Baidu in fiscal year 2013 was RMB10.519 billion ($1.738 billion), a 0.6% increase from 2012. Diluted earnings attributable to Baidu per ADS for the fiscal year 2013 were RMB29.93 ($4.94); diluted earnings attributable to Baidu per ADS excluding share-based compensation expenses (non-GAAP) in fiscal year 2013 were RMB31.40 ($5.19).

“We’re pleased to have finished a milestone year for Baidu with a solid fourth quarter performance,” said Robin Li, chairman and chief executive officer of Baidu. “2013 was marked by our entry into new areas and significant progress in mobile, as we invested aggressively to build out Baidu’s position in search, app distribution, and location-based services. Our efforts to drive mobile adoption among customers gained significant traction throughout the year. In the fourth quarter, mobile accounted for over 20% of total revenues.”

 

 

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 RMB6.0537 to US$1.00, the effective noon buying rate as of December 31, 2013, in The City of New York for cable transfers of RMB as certified for customs purposes by the Federal Reserve Bank of New York.

---

Mr. Li continued, “Building out our platform to capture the huge opportunities ahead remains our focus for 2014. We are confident that Baidu’s technology DNA and unparalleled data capabilities will be crucial competitive advantages as China’s Internet landscape continues to shift.”

“We delivered solid top line growth in 2013, and the increasing revenue contribution from mobile over the last several quarters has been especially encouraging,” commented Jennifer Li, Baidu’s chief financial officer. “Our investments helped to lay a strong foundation for sustainable growth across our business. Looking ahead, we will continue to expand the Baidu platform and invest aggressively in R&D, sales and marketing and infrastructure during this crucial period of market transformation.”

Fourth Quarter 2013 Results

Baidu reported total revenues of RMB9.523 billion ($1.573 billion) for the fourth quarter of 2013, representing a 50.3% increase from the corresponding period in 2012.

Online marketing revenues for the fourth quarter of 2013 were RMB9.462 billion ($1.563 billion), representing a 50.5% increase from the corresponding period in 2012. Baidu had about 451,000 active online marketing customers² in the fourth quarter of 2013, representing an 11.1% increase from the corresponding period in 2012 and a 2.8% decrease from the third quarter of 2013.

Revenue per online marketing customer for the fourth quarter of 2013 was approximately RMB20,900 ($3,452), a 34.8% increase from the corresponding period in 2012 and a 9.4% increase compared to the third quarter of 2013.

Traffic acquisition cost as a component of cost of revenues was RMB1.176 billion ($194.3million), representing 12.3% of total revenues, as compared to 9.6% in the corresponding period in 2012 and 11.7% in the third quarter of 2013. The increase mainly reflects increased contextual ads contributions and hao123 promotions through the Company’s network.

Bandwidth costs as a component of cost of revenues were RMB563.7 million ($93.1 million), representing 5.9% of total revenues, compared to 5.3% in the corresponding period in 2012. Depreciation costs as a component of cost of revenues were RMB410.2 million ($67.8 million), representing 4.3% of total revenues, compared to 4.9% in the corresponding period in 2012. The year-over-year increase in bandwidth costs was mainly due to an increase in network infrastructure capacity and iQiyi.

Content costs as a component of cost of revenues were RMB361.7 million ($59.7 million), representing 3.8% of total revenues, compared to 1.9% in the corresponding period in 2012, and 2.5% in the third quarter of 2013. The increase was mainly due to iQiyi’s increased content costs.

 

 

2	The number of active online marketing customers and revenue per online active customer exclude our group-buying related businesses for consistency with previous reporting.

---

Selling, general and administrative expenses were RMB1.863 billion ($307.7 million), representing an increase of 135.1% from the corresponding period in 2012, and an increase of 34.6% from the previous quarter, primarily due to an increase in promotional spending for mobile products.

Research and development expenses were RMB1.264 billion ($208.8 million), an 80.1% increase from the corresponding period in 2012, and an increase of 15.9% from the previous quarter, 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 RMB177.4 million ($29.3 million) in the fourth quarter of 2013, compared to RMB66.6 million in the corresponding period in 2012, and RMB143.1 million in the third quarter of 2013.

Operating profit was RMB2.740 billion ($452.6 million), representing a 3.8% decrease from the corresponding period in 2012. Operating profit excluding share-based compensation expenses (non-GAAP) was RMB2.917 billion ($481.9 million), a 0.1% increase from the corresponding period in 2012.

Income tax expense was RMB338.8 million ($56.0 million), compared to income tax expense of RMB539.9 million in the corresponding period in 2012. The effective tax rate for the fourth quarter of 2013 was 11.2% as compared to 16.2% for the corresponding period in 2012.

Net income attributable to Baidu was RMB2.784 billion ($459.9 million), representing a 0.4% decrease from the corresponding period in 2012. Basic and diluted earnings per ADS for the fourth quarter of 2013 amounted to RMB7.92 ($1.31) and RMB7.90 ($1.30), respectively.

Net income attributable to Baidu excluding share-based compensation expenses (non-GAAP) was RMB2.962 billion ($489.2 million), a 3.5% increase from the corresponding period in 2012. Basic and diluted earnings per ADS excluding share-based compensation expenses (non-GAAP) for the fourth quarter of 2013 amounted to RMB8.43 ($1.39) and RMB8.40 ($1.39), respectively.

As of December 31, 2013, the Company had cash, cash equivalents and short-term investments of RMB38.427 billion ($6.348 billion).

Net operating cash inflow for the fourth quarter of 2013 was RMB4.107 billion ($678.5 million). Capital expenditures for the fourth quarter of 2013 were RMB 961.0 million ($158.7 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 RMB3.563 billion ($588.6 million) for the fourth quarter of 2013, representing a 7.2% increase from the corresponding period in 2012.

---

Fiscal Year 2013 Results

Total revenues in 2013 were RMB31.944 billion ($5.277 billion), representing a 43.2% increase from 2012.

Online marketing revenues in 2013 were RMB31.802 billion ($5.253 billion), representing a 43.0% increase from 2012. The growth was driven by increases in both the number of active online marketing customers and revenue per customer. Baidu had about 753,000 active online marketing customers in 2013, representing a 26.3% increase from 2012. Revenue per online marketing customer for 2013 was RMB42,200 ($6,971), an increase of 13.1% from 2012.

Traffic acquisition costs in 2013 were RMB3.704 billion ($611.9 million), representing 11.6% of total revenues, compared to 8.7% in 2012. The increase in TAC reflects the increased contribution of contextual ads and hao123 promotions through the Company’s network.

Bandwidth costs as a component of cost of revenues were RMB1.939 billion ($320.2 million), representing 6.1% of total revenues, compared to 4.8% in 2012. Depreciation costs as a component of cost of revenues were RMB1.470 billion ($242.8 million), representing 4.6% of total revenues, compared to 4.8% in 2012. The increase in bandwidth costs was mainly due to an increase in network infrastructure capacity and iQiyi.

Content costs as a component of cost of revenues were RMB830.4 million ($137.2 million), representing 2.6% of total revenues, compared to 1.0% in 2012. The increase was mainly due to the consolidation of iQiyi into the Company’s financial statements.

Selling, general and administrative expenses in 2013 were RMB5.174 billion ($854.6 million), representing an increase of 106.8% from the previous year, primarily due to an increase in promotional spend for mobile products.

Research and development expenses totaled RMB4.107 billion ($678.4 million) in 2013, representing a 78.2% increase from 2012, primarily due to an increase in the number of research and development personnel.

Share-based compensation expenses, which were allocated to related operating cost and expense line items, were RMB514.7 million ($85.0 million) in 2013, compared to RMB212.3 million in 2012.

Operating profit in 2013 was RMB11.192 billion ($1.849 billion), a 1.3% increase from 2012. Operating profit excluding share-based compensation expenses (non-GAAP) in 2013 was RMB11.706 billion ($1.934 billion), representing a 3.9% increase from 2012.

---

Income tax expense was RMB1.829 billion ($302.1 million), compared to an income tax expense of RMB1.574 billion in 2012. The effective tax rate for 2013 was 15.0% as compared to 13.2% in 2012.

Net income attributable to Baidu in 2013 was RMB10.519 billion ($1.738 billion), representing a 0.6% increase from 2012. Basic and diluted earnings attributable to Baidu per ADS for 2013 amounted to RMB29.98 ($4.95) and RMB29.93 ($4.94), respectively.

Net income attributable to Baidu excluding share-based compensation expenses (non-GAAP) in 2013 was RMB11.034 billion ($1.823 billion), reflecting a 3.4% increase from 2012. Basic and diluted earnings attributed to Baidu per ADS excluding share-based compensation expenses (non-GAAP) in 2013 were RMB31.45 ($5.19) and RMB31.40 ($5.19), respectively.

Net operating cash inflow in 2013 was RMB 13.793 billion ($2.278 billion). Capital expenditures in 2013 were RMB 2.757 billion ($455.4 million).

Adjusted EBITDA (non-GAAP) was RMB13.819 billion ($2.283 billion) in 2013, representing an 8.8% increase from 2012.

Outlook for First Quarter 2014

Baidu currently expects to generate total revenues in an amount ranging from RMB9.240 billion ($1.526 billion) to RMB9.520 billion ($1.573 billion) for the first quarter of 2014, representing a 54.8% to 59.5% 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 February 26, 2014, U.S. Eastern Time (9:00 AM on February 27, 2014, Beijing/Hong Kong Time).

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

 

International:		+65-6723-9381
U.S.:		+1-845-675-0437
UK:		+44-20-3059-8139
Hong Kong:		+852-2475-0994

Passcode for all regions: 52281034

---

A replay of the conference call may be accessed by phone at the following number until March 5, 2014:

 

International:		+61-2-8199-0299
Passcode:		52281034

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 first quarter 2014 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 release, and Baidu undertakes no duty to update such information, except as required under applicable law.

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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

Sharon Ng

Baidu, Inc.

Tel: +86-10-5992-3776

Email: ir@baidu.com

Nick Beswick

Brunswick Group LLC

Tel: +86-10-5960-8600

Email: baidu@brunswickgroup.com

---

U.S.

Cindy Zheng

Brunswick Group

Tel: +1-212-333-3810

Email: baidu@brunswickgroup.com

---

Baidu, Inc.

Condensed Consolidated Statements of Income

 

		Three Months Ended												Twelve Months Ended
		December 31,				December 31,				September 30,				December 31,				December 31,
(In RMB thousands except for share, per share (or ADS) information)		2013				2012				2013				2013				2012
		Unaudited				Unaudited				Unaudited				Unaudited				Audited
Revenues:
Online marketing services			9,462,202				6,287,549				8,847,987				31,802,219				22,245,643
Other services			60,711				47,797				43,671				141,705				60,383
Total revenues			9,522,913				6,335,346				8,891,658				31,943,924				22,306,026
Operating costs and expenses:
Cost of revenues (note 1, 2)			(3,656,489	)			(1,993,313	)			(3,078,969	)			(11,471,839	)			(6,448,545	)
Selling, general and administrative (note 2)			(1,862,966	)			(792,373	)			(1,384,399	)			(5,173,533	)			(2,501,336	)
Research and development (note 2)			(1,263,835	)			(701,575	)			(1,090,549	)			(4,106,832	)			(2,304,825	)
Total operating costs and expenses			(6,783,290	)			(3,487,261	)			(5,553,917	)			(20,752,204	)			(11,254,706	)
Operating profit			2,739,623				2,848,085				3,337,741				11,191,720				11,051,320
Other income:
Interest income			367,922				252,556				348,822				1,308,542				866,465
Interest expense			(148,207	)			(33,012	)			(118,381	)			(447,084	)			(107,857	)
Foreign exchange loss, net			(40,861	)			(3,028	)			(676	)			(48,379	)			(4,533	)
Income (loss) from equity method investments			(651	)			(121,719	)			215				(5,806	)			(294,229	)
Other income, net			115,399				380,545				36,815				186,023				454,271
Total other income			293,602				475,342				266,795				993,296				914,117
Income before income taxes			3,033,225				3,323,427				3,604,536				12,185,016				11,965,437
Income taxes			(338,832	)			(539,909	)			(588,067	)			(1,828,930	)			(1,574,159	)
Net income			2,694,393				2,783,518				3,016,469				10,356,086				10,391,278
Less: net loss attributable to noncontrolling interests			(89,870	)			(11,964	)			(31,512	)			(162,880	)			(64,750	)
Net income attributable to Baidu, Inc.			2,784,263				2,795,482				3,047,981				10,518,966				10,456,028
Earnings per share for Class A and Class B ordinary shares:
Net income attributable to Baidu, Inc.-Basic			79.22				79.96				86.47				299.75				298.62
Net income attributable to Baidu, Inc.-Diluted			78.99				79.91				86.34				299.32				298.29
Earnings per ADS (1 Class A ordinary share equals 10 ADSs ):
Net income attributable to Baidu, Inc.-Basic			7.92				8.00				8.65				29.98				29.86
Net income attributable to Baidu, Inc.-Diluted			7.90				7.99				8.63				29.93				29.83
Weighted average number of Class A and Class B ordinary shares outstanding:
Basic			35,013,458				34,963,019				34,985,689				34,986,228				34,939,838
Diluted			35,117,726				34,983,115				35,041,729				35,036,346				34,979,459
(1)    Cost of revenues are detailed as follows:
Sales tax and surcharges			(702,336	)			(442,709	)			(649,496	)			(2,329,558	)			(1,572,420	)
Traffic acquisition costs			(1,175,929	)			(606,809	)			(1,038,641	)			(3,704,146	)			(1,929,966	)
Bandwidth costs			(563,709	)			(337,194	)			(512,644	)			(1,938,520	)			(1,069,306	)
Depreciation costs			(410,164	)			(317,488	)			(369,403	)			(1,469,646	)			(1,062,060	)
Operational costs			(433,478	)			(164,412	)			(280,204	)			(1,175,624	)			(589,555	)
Content costs			(361,702	)			(120,337	)			(222,224	)			(830,369	)			(215,133	)
Share-based compensation expenses			(9,171	)			(4,364	)			(6,357	)			(23,976	)			(10,105	)
Total cost of revenues			(3,656,489	)			(1,993,313	)			(3,078,969	)			(11,471,839	)			(6,448,545	)
(2)    Includes share-based compensation expenses as follows:
Cost of revenues			(9,171	)			(4,364	)			(6,357	)			(23,976	)			(10,105	)
Selling, general and administrative			(63,861	)			(4,423	)			(49,167	)			(164,704	)			(54,512	)
Research and development			(104,319	)			(57,778	)			(87,620	)			(326,047	)			(147,692	)
Total share-based compensation expenses			(177,351	)			(66,565	)			(143,144	)			(514,727	)			(212,309	)

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Baidu, Inc.

Condensed Consolidated Balance Sheets

 

		December 31				December 31
(In RMB thousands except for number of shares and per share data)		2013				2012
		Unaudited				Audited
ASSETS
Current assets:
Cash and cash equivalents			9,691,797				11,880,632
Restricted cash			259,533				395,029
Short-term investments			28,734,761				20,604,223
Accounts receivable, net			2,220,846				1,253,483
Amounts due from related parties			104				—
Deferred tax assets, net			286,844				160,315
Other assets, current			1,835,265				380,407
Total current assets			43,029,150				34,674,089
Non-current assets:
Fixed assets, net			5,370,268				3,887,877
Intangible assets, net			3,630,315				1,587,665
Goodwill			16,864,350				3,877,564
Long-term investments, net			634,777				803,499
Amounts due from related parties			370,916				—
Deferred tax assets, net			97,940				53,303
Other assets, non-current			988,072				784,893
Total non-current assets			27,956,638				10,994,801
Total assets			70,985,788				45,668,890
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable and accrued liabilities			7,362,138				3,806,836
Customer advances and deposits			2,977,872				2,067,586
Deferred revenue			226,599				94,121
Deferred income			77,287				64,506
Long-term loans, current portion			343,625				2,170,978
Capital lease obligation			44,907				32,502
Due to Related Parties, Current			398				—
Total current liabilities			11,032,826				8,236,529
Non-current liabilities:
Deferred income			376,491				190,000
Long-term loans			2,112,359				356,589
Notes payable			15,116,990				9,336,686
Amounts due to related parties			373,227				—
Deferred tax liabilities			1,200,270				289,482
Capital lease obligation			40,999				44,479
Other Non Current Liabilities			67,376				—
Total non-current liabilities			19,287,712				10,217,236
Total liabilities			30,320,538				18,453,765
Redeemable noncontrolling interests			—				1,033,283
Equity
Class A Ordinary Shares, par value US$0.00005 per share, 825,000,000 shares authorized, and 27,202,710 shares and 27,492,452 shares issued and outstanding as at December 31, 2012 and December 31, 2013			12				12
Class B Ordinary Shares, par value US$0.00005 per share, 35,400,000 shares authorized, and 7,763,000 shares and 7,537,921 shares issued and outstanding as at December 31, 2012 and December 31, 2013			3				3
Additional paid-in capital			3,056,418				2,095,273
Retained earnings			34,525,386				24,038,219
Accumulated other comprehensive income (loss)			843,096				(78,278	)
Total Baidu, Inc. shareholders’ equity			38,424,915				26,055,229
Noncontrolling interests			2,240,335				126,613
Total equity			40,665,250				26,181,842
Total liabilities, redeemable noncontrolling interests, and equity			70,985,788				45,668,890

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

 

		Three months ended December 31, 2012												Three months ended September 30, 2013												Three months ended December 31, 2013												Twelve months ended December 31, 2012												Twelve months ended December 31, 2013
		GAAP Result				Adjustment				Non-GAAP Results				GAAP Result				Adjustment				Non-GAAP Results				GAAP Result				Adjustment				Non-GAAP Results				GAAP Result				Adjustment				Non-GAAP Results				GAAP Result				Adjustment				Non-GAAP Results
Operating profit			2,848,085				66,565				2,914,650				3,337,741				143,144				3,480,885				2,739,623				177,351				2,916,974				11,051,320				212,309				11,263,629				11,191,720				514,727				11,706,447
		Three months ended December 31, 2012												Three months ended September 30, 2013												Three months ended December 31, 2013												Twelve months ended December 31, 2012												Twelve months ended December 31, 2013
		GAAP Result				Adjustment				Non-GAAP Results				GAAP Result				Adjustment				Non-GAAP Results				GAAP Result				Adjustment				Non-GAAP Results				GAAP Result				Adjustment				Non-GAAP Results				GAAP Result				Adjustment				Non-GAAP Results
Net income attributable to Baidu, Inc.			2,795,482				66,565				2,862,047				3,047,981				143,144				3,191,125				2,784,263				177,351				2,961,614				10,456,028				212,309				10,668,337				10,518,966				514,727				11,033,693

 

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

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

 

		Three months ended December 31, 2012				As a % of total revenues				Three months ended September 30, 2013				As a % of total revenues				Three months ended December 31, 2013				As a % of total revenues				Twelve months ended December 31, 2012				As a % of total revenues				Twelve months ended December 31, 2013				As a % of total revenues
Net cash provided by operating activities			3,396,282				54	%			4,295,062				48	%			4,107,321				42	%			12,582,618				56	%			13,792,971				43	%
Changes in assets and liabilities, net of effects of acquisitions			(136,513	)			-2	%			(618,730	)			-7	%			(589,598	)			-6	%			(545,055	)			-2	%			(810,058	)			-3	%
Income taxes expenses			539,909				8	%			588,067				7	%			338,832				4	%			1,574,159				7	%			1,828,930				6	%
Interest income and other, net			(475,342	)			-8	%			(266,795	)			-3	%			(293,602	)			-3	%			(914,117	)			-4	%			(993,296	)			-3	%
Adjusted EBITDA			3,324,336				52	%			3,997,604				45	%			3,562,953				37	%			12,697,605				57	%			13,818,547				43	%

 

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