PROSPECTUS SUPPLEMENT SUMMARY
This summary highlights information presented in greater detail elsewhere. This summary is not complete and does not contain all the
information you should consider before investing in the Notes. You should carefully read the entire prospectus before investing, including Risk Factors, and including the documents incorporated by reference. See Incorporation of
Certain Documents by Reference. Our 2016 Form 20-F, which contains our audited consolidated financial statements as of December 31, 2015 and 2016 and for each of the three years ended
December 31, 2016, is incorporated by reference.
We are the leading Chinese
language internet search provider. As a technology-based media company, we aim to provide the best and most equitable way for people to find what they are looking for. We provide our users with many channels to access information and services. In
addition to serving individual internet search users, we provide an effective platform for businesses to reach potential customers.
business currently consists of keyword-based marketing services targeted at and triggered by internet users search queries, which mainly include our
pay-for-performance, or P4P, services and other online marketing services, artificial intelligence (AI)-enabled new business initiatives and online video business.
Our Baidu.com website is the largest website in China and the fourth largest website globally, as measured by average daily visitors
and page views during the three-month period preceding the date of this prospectus supplement, according to Alexa.com, an internet analytics firm. We are the largest internet search provider in China, accounting for 84% of revenues of the PC and
mobile search market in China in the three months ended March 31, 2017, according to Analysys International, a market research firm. We are the top Chinese search engine in terms of combined PC and mobile search page views in the three months
ended March 31, 2017, according to StatCounter, an internet analytics firm. In addition, our Baidu brand is one of the highest ranking brands in China in BrandZ Top 50 Most Valuable Chinese Brands 2016, a study published by Millward
Brown Optimor, a brand strategy research company.
We conduct our operations primarily in China. Revenues generated from our operations in
China accounted for approximately 99.5%, 98.9% and 97.8% of our total revenues in 2014, 2015 and 2016, respectively.
We serve four
types of online participants:
Users. We aspire to provide the best experience to our users. To enrich user
experience, we provide a broad range of products and services accessible through PCs and mobile devices. We offer Chinese language search on our Baidu platform that enables users to find relevant information online, including web pages, news,
images, documents and multimedia files, through links provided on our website. We launched Baidu Newsfeed in 2016 to offer users personalized newsfeed to meet their personal interests as reflected in their past online behaviors, such as search and
browsing, and their demographics. In addition, iQiyis mobile application has continued to maintain its industry leadership with 129 million daily active users, 490 million monthly active users, and 342 billion minutes monthly
user time in March 2017, according to iResearch, a market research firm.
Customers. We deliver online marketing services to
a diverse customer base operating in a variety of industries. The number of our active online marketing customers grew from approximately 596,000 in 2012 to approximately 982,000 in 2016. Consistent with previously reported numbers, the number of