Baidu Inc equity, debt and subsidiaries

Accuracy score :
97%

Summary (from the latest annual and quarterly report)

  • Total equity: 23.60 billion USD
  • Market Cap is 40.06 billion USD ( the last price of the stock is 114.47 USD)
  • Baidu is the largest Internet search engine in China with mid-70s mobile traffic share in the search market. The firm generates 86% of revenue from online marketing services and the rest from other segments
  • Total stockholders' equity has increased from 13.3 billion USD in 2016 to 23.60 billion in 2019
  • The company has 4.60 billion USD in cash on account (from the latest quarterly report  2019)
  • Total equity – cash on account = 23.60 billion USD – 4.60 billion USD = 19 billion USD
  • In 2019 the company has 8.7 billion USD long-term debt, short – term debt is 1.45 billion USD                                                          (In 2017 the company had 5 billion USD long-term debt, short-term debt was 1.12 billion USD)
  • The company's revenue has increased in 2018 to 14.9 billion USD from 12.18 billion in 2017
  • Net income in 2018 was 4 billion USD, Net income in 2017 was 2.6 billion USD

 

Opinion about the company

Fundamentally it is a good company and in the future, we can expect its growth (Total debt is big (10.15 billion USD), a big amount of cash on company's account, ROE is around 14 %).

Baidu is the largest Internet search engine in China with mid-70s mobile traffic share in the search market. The firm generates 86% of revenue from online marketing services and the rest from other segments. Baidu is a technology-driven company and has been investing in artificial intelligence technology, such as autonomously driven cars. Baidu was incorporated in January 2000 and it is one of the largest internet companies in the world. In December 2007, Baidu became the first Chinese company to be included in the NASDAQ-100 index. In October 2018, Baidu became the first Chinese firm to join the United States-based computer ethics consortium Partnership on AI.

Baidu's Global Business Unit, formed under the name of DU Group or DU Apps Studio, is an app developer with various apps and services. It has over 2 billion active users worldwide. Baidu also provides an official international and Chinese version of its online digital distribution services Baidu App Store and Shouji Baidu respectively, both hosting downloadable content and applications. Baidu's advertisement platform is DU Ad Platform. Baidu's Apollo Project is one of the world's leading autonomous driving and AI programs, with one of the largest partner ecosystems and over 100 global partners as of 2019, including BYD, Dongfeng, Microsoft, Intel, Nvidia, Daimler AG, ZTE, Grab, Ford, Hyundai and Honda.

  • Baidu operations are primarily based in China, where the company derives almost all of its revenues. Total revenues in 2018 were RMB102.3 billion (US$14.9 billion), growing by 21% from 2017 (or 28%, if both years’ revenues were net of VAT). In 2017 and 2018, Baidu divested certain non-core businesses, including Baidu Deliveries, Du Xiaoman, and others. These divested businesses together generated approximately RMB4.1 billion and RMB3.1 billion in revenues for the year ended December 31, 2017 and 2018, respectively. Operating profit in 2018 was RMB15.5 billion (US$2.3 billion), a 1% decrease from 2017. Net income attributable to Baidu, Inc. in 2018 was RMB27.6 billion (US$4.0 billion), a 51% increase from 2017
  • Baidu Core revenue was RMB78.3 billion (US$11.4 billion) in 2018, increasing by 16% year over year
  • iQIYI revenues were RMB25.0 billion (US$3.6 billion) in 2018, increasing by 44% from 2017

 

Standalone subsidiaries and acquisitions:

  • On July 16, 2013, Baidu announced its intention to purchase 91 Wireless from NetDragon. 91 Wireless is best known for its app store, but it has been reported that the app store faces piracy and other legal issues. On August 14, 2013, Baidu announced that its wholly-owned subsidiary Baidu (Hong Kong) Limited has signed a definitive merger agreement to acquire 91 Wireless Web-soft Limited from NetDragon for 1.85 billion USD in what was reported to be the biggest deal ever in China's IT sector
  • In 2011 Baidu has made a 306 million USD investment in Qunar, travel search engine in China. In 2015 Baidu has sold its interest in Qunar to Ctrip, another of China's largest online travel companies, in a deal that should greatly benefit both online travel companies. Baidu receives 0.725 shares of Ctrip ADS in exchange for every 1 share of Qunar ADS it owns and posts this transaction, Ctrip will own approximately 190.2 million shares of Qunar while Baidu ends up with a 25% stake (voting) in Ctrip. The deal is valued around 3 billion USD
  • In the period from 2013-2017 Baidu had several smaller acquisitions (Anquanbao, Peixe Urbano, Beijing Huanxiang Zongheng Chinese Literature, PPS, TrustGo, KITT.AI, XPerception and Raven Tech) - worth around 1 billion USD
  • Baidu owns majority stake of the Chinese video streaming service provider iQiyi Inc. At the end of February, iQiyi had 60.1 million subscribers, over 98 percent of whom were paying members – worth 10 billion USD

 

 

Total = 15.85 billion USD

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