A：In Q2, Baidu generated total revenue of RMB 25.2 billion, with Baidu's core AI-powered business representing half of the total.

A：AI Cloud infrastructure revenue increased by 50% year over year. Growth was driven by strong demand for AI computing, robust usage and spending by existing key clients, a rapid increase in the overall customer count with new clients across various sizes, and broad demand across industry verticals.

A：GPU cloud revenue grew 283% year over year, building on an already strong growth rate of 184% from the previous quarter. This acceleration indicates strong underlying demand for scalable AI compute in the public cloud and a shift towards higher quality revenue streams, which is contributing to a healthier revenue mix and strengthening the long-term profitability of the cloud business.

A：The Tencent Mass Platform offers one of the most comprehensive model libraries and is contributing to making model inference at scale more reliable and cost-efficient for customers. It leverages Baidu's deep expertise in AI infrastructure and engineering, and the model service is enhanced with continued inference optimization for higher throughput, reduced latency, and costs.

A：Recent advancements in digital human technology have led to stronger performance at lower costs and expanded use cases across industries, including e-commerce, live streaming, and real-time interactive digital humans. The technology has gained recognition from clients, with new and existing clients scaling their usage, such as a Chinese internet company expanding its digital human live streaming deployment. Global expansion efforts have also seen encouraging results, particularly with the overseas platform.

A：melda 3.0 allows users to generate standalone mobile apps for both Android and iOS using natural language, simplifying app development that previously required professional development teams, lengthy cycles, and significant investment. Users can now complete app development more easily from their phones. melda has seen increasing user engagement with a 67% monthly active user increase in June compared to March, and is adopted across diverse industries.

A：AI is helping enterprises solve complex operational problems, with 'Pharma agent' as a good example that autonomously explores solutions and identifies the best ones. After the launch of Amo agent, improvements have been made to usability and the range of scenarios it addresses, gaining early commercial traction. These AI applications demonstrate potential in optimizing operations and delivering tangible business value.

A：AI is being integrated across Baidu's consumer facing applications, with new and improved AI capabilities, such as an upgrade to Gam Flow that brings AI more deeply into users' everyday workflows. In June, AI penetration across Baidu wenku and Baidu Drive increased by 27.4% year over year.

A：AI search has seen improvements in the quality of AI-generated answers, overall user experience, and reduced hallucination rates. Integration with E阿拉 assist has extended the search experience into more interactive conversations. In June, E阿拉 assist daily active users grew year over year, with more than triple the daily average conversation rounds.

A：Apollo Go has advanced global expansion, enhanced safety, operational performance, and rider experience. It received Hong Kong's first permits for fully driverless testing and conducted such tests on Airport Island. This made Apollo Go the first autonomous ride-hailing service provider to conduct fully driverless testing in a right-hand drive, left-hand traffic market. Progress was also made in other international markets, such as the UAE and Switzerland. Safety standards were raised, and the ride volume is expected to regain momentum as operations ramp up.

A：In the second half, priorities for Apollo Go include enhancing safety standards and operational capability, advancing global expansion, increasing the fleet and ride volumes, and bringing more cities to economic break-even. These priorities affirm the company's leadership in autonomous ride-hailing and its foundation for scalable and sustainable growth.

A：Revenue from Baidu's core AI powered business reached RMB 12.5 billion and continued to account for half of Baidu general business revenue, with AI cloud inflow revenue growing approximately 50% year over year, and GPU cloud revenue growing 283% year over year in Q2.

A：Baidu's total revenue was RMB 31.3 billion, decreasing 2% quarter over quarter and 4% year over year. Revenue from Baidu General Business was RMB 25.2 billion, decreasing 3% quarter over quarter and 4% year over year. Revenue from it was RMB 6.3 billion, increasing 1% quarter over quarter and decreasing 5% year over year.

A：Upon the conversion becoming effective, which is subject to shareholder and Hong Kong Stock Exchange approval, Baidu expects the dual primary listing to broaden its investor base, enhance the liquidity of its shares, and provide greater flexibility in accessing capital across both markets.

A：Baidu plans to continue investing with conviction and discipline in the capabilities and businesses where it sees the strongest long-term opportunities.

A：Baidu's non GA operating income was RMB 3.8 billion, and the non GAAP operating margin was 12%.

A：Total other income net was RMB 184 million compared to RMB 626 million last quarter and RMB 4.9 billion for the same period last year. The year over year decrease was primarily due to a decrease in fair value gain from long-term investments and an increase in net foreign exchange loss. Income tax expense was RMB 1.0 billion compared to RMB 528 million last quarter and RMB 881 million for the same period last year.

A：Baidu's net income attributable to Baidu was RMB 2.3 billion, and the net margin for Baidu was 7%. The diluted earnings per ADS was RMB 5.74. The non GAAP net income attributable to Baidu was RMB 2.6 billion, and the non GAAP net margin for Baidu was 8%, with a non-GAAP diluted earnings per ADS of RMB 7.22.

A：As of June 30, total cash and investments were RMB 283.1 billion. Operating cash flow was RMB 3.4 billion.

A：Baidu General Business had approximately 27,000 employees as of June 30, 2026.

A：Growth is being driven by strong demand for computing in China, increasing involvement in real applications and business workloads, reliance on AI for inference, and an expanding customer base with increasing usage and spending. The company is broadening demand across industries and use cases, and has built a differentiated AI architecture along with competitive offerings at every layer, especially in the application layer with a portfolio of AI applications.

A：Profitability and margins are expected to improve further as several factors come into play. Growth of G Cloud is outpacing general AI Cloud growth and has a more attractive margin profile than traditional CPU cloud. Continued optimization of the product and customer mix, better resource utilization, and greater operating efficiency are expected to support margin expansion. Additionally, as mass-related businesses grow, they will become a more meaningful contributor to margins. Long-term, the company sees significant room for AI Cloud infrastructure margins to improve.

A：The company is committed to unwavering investment in AI, focusing on areas with high demand from both customers and internally. Investments are made with conviction, but with careful consideration of ROI, and are expected to quickly contribute to revenue. The company is continuously enhancing supply chain management capabilities to improve capital efficiency. The aim is to achieve a balance between making substantial investments in AI, which play out on different timelines, and ensuring profitability. As some investments take longer to deliver value, the current phase of investment is seen as critical for translating into sustainable profit growth.

A：The listing process for Kuaile is still ongoing. The company believes in the long-term structural growth opportunity for the AI chip industry due to increasing demand across training and inference, and as models advance, more applications are expected to move to real-world use. Domestically, there is significant growth potential for efficient and cost-competitive chips, which require strong technical capabilities. Kuaiile has built a solid foundation in hardware, software integration, model and framework compatibility, and large-scale deployment learning. Kuaile is positioned to take advantage of these trends and is an important part of the infrastructure layer within Baidu's AI ecosystem, expanding chip cloud infrastructure models, and applications.

A：Baidu has approved a conversion to a new primary listing in Hong Kong and has filed the application with the Hong Kong Stock Exchange. Shareholder approval is required at an extraordinary general meeting on August 26 for matters related to the conversion. The conversion is expected to take effect within the year, pending approval from the Hong Kong Stock Exchange and meeting other applicable conditions. Baidu is also preparing for potential inclusion in the Stock Connect, with the hope of being included at the earliest opportunity. This inclusion would remain subject to eligibility requirements and decisions by the relevant authorities. The conversion and inclusion are expected to affect Baidu's investor base, share liquidity, and valuation over time, although the specific impacts are not detailed in the provided text.

A：The main objectives of a new Prime listing are to broaden the investor base, enhance the liquidity of shares, provide greater flexibility in accessing both the Hong Kong and US capital markets, and allow more investors in Asia to better understand and potentially expand participation from mainland Chinese investors.

A：The main factors leading to online marketing revenue pressure in Q2 were not specifically detailed in the transcript. Management expects the business to remain under pressure in the second half due to the intense competition and new product introductions affecting the ways users discover and consume information, as well as the competition for users' time and attention.

A：The AI search transformation has been improving by enhancing the quality of AI answers, focusing on accuracy and authority, and reinforcing these core strengths during the AI transformation. The AI search now better understands user queries, provides more reliable and well-structured answers, and has reduced hallucination rates. Further integration with the learning system has led to more coherent, interactive, multi-round conversations that address follow-up questions and broader user needs. Despite these improvements, monetization is currently being held back to prioritize product and user experience clarity, with expectations that as model capabilities improve, natural monetization opportunities will emerge in the future.

A：Management views the new regulatory environment for robot taxis in China positively, acknowledging the global robot taxi industry's evolution and the need for reliable, large-scale operations that integrate with existing transportation systems. Regulatory frameworks are being iterated and refined worldwide, and Apollo's experience contributes to the L4 requirement. Safety is considered a top priority, and clearer, more systematic regulations support industry operations and public trust. ApolloGold's expansion strategy does not view domestic and international markets as an either-or choice, assessing each city based on various factors like regulations, mobility demand, pricing, road conditions, and commercial viability. The company's proven technology and operating experience facilitate quick and efficient scaling in cities with appropriate regulations, as demonstrated by their progress in different cities around the world.