424B5
BAIDU, INC. filed this Form 424B5 on 06/26/2017
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Table of Contents

Selling, General and Administrative Expenses. Our selling, general and administrative expenses decreased by 28.6% from RMB3.9 billion in the three months ended March 31, 2016 to RMB2.8 billion (US$409.3 million) in the three months ended March 31, 2017. This decrease was primarily due to the following factors:

 

    Marketing and promotion expenses decreased by 65.2% from RMB2.3 billion in the three months ended March 31, 2016 to RMB814.0 million (US$118.3 million) in the three months ended March 31, 2017. This decrease was primarily due to a decrease in promotional spending relating to our transaction services.

 

    Total office operating expenses decreased by 8.7% from RMB129.7 million in the three months ended March 31, 2016 to RMB118.5 million (US$17.2 million) in the three months ended March 31, 2017, primarily as a result of reduced office rental expenses as new buildings owned by us went into service.

 

    Total salaries and benefits and staff related expenses increased by 27.6% from RMB916.3 million in the three months ended March 31, 2016 to RMB1.2 billion (US$169.9 million) in the three months ended March 31, 2017, primarily due to the increase in the average salary and bonus per employee in the three months ended March 31, 2017.

 

    Share-based compensation expenses allocated to selling, general and administrative expenses increased by 78.4% from RMB105.0 million in the three months ended March 31, 2016 to RMB187.4 million (US$27.2 million) in the three months ended March 31, 2017.

Research and Development Expenses. Our research and development expenses increased by 34.9% from RMB2.1 billion in the three months ended March 31, 2016 to RMB2.8 billion (US$411.8 million) in the three months ended March 31, 2017, primarily due to an increase in research and development personnel-related cost.

Operating Profit. As a result of the foregoing, we generated an operating profit of RMB2.0 billion (US$291.4 million) in the three months ended March 31, 2017, a 9.3% decrease from RMB2.2 billion in the three months ended March 31, 2016.

Other Income, Net, Including Exchange Gains or Losses. Our other income, net, including exchange gains or losses was RMB79.6 million (US$11.6 million) in the three months ended March 31, 2017. In the three months ended March 31, 2016, our other income, net, including exchange gains or losses amounted to RMB232.0 million, primarily attributable to the investment gain recognized as a result of the spin-off of the music business and additional government subsidies recognized in this period.

Loss From Equity Method Investments. Our loss from equity method investments decreased by 35.0% from RMB117.1 million in the three months ended March 31, 2016 to RMB76.1 million (US$11.1 million) in the three months ended March 31, 2017.

Taxation. Our income tax expenses decreased by 40.0% from RMB674.8 million in the three months ended March 31, 2016 to RMB405.1 million (US$58.8 million) in the three months ended March 31, 2017. The effective tax rate for the three months ended March 31, 2017 was 18.6%, compared to 25.4% for the three months ended March 31, 2016.

Net Income Attributable to Baidu, Inc. As a result of the foregoing, net income attributable to Baidu, Inc. decreased by 10.6% from RMB2.0 billion in the three months ended March 31, 2016 to RMB1.8 billion (US$258.1 million) in the three months ended March 31, 2017.

 

 

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