Chinese multinational tech firm Baidu Inc. swung to a net loss in the second quarter due to fair value losses during the period, the company announced in a statement.

  • Baidu reported a net loss of RMB583 million, reflecting an RMB3.1-billion fair value loss from long-term investments. Loss per share stood at RMB1.70, versus the earnings of RMB73.76 in the first quarter and RMB10.31 in 2020.
  • Total revenues jumped 20% to RMB31.350 billion, with core revenue up 27%, driven by the growth of the company’s new AI business, which caters to businesses and local governments.
  • Co-founder and Chief Executive Robin Li said the company will continue to execute and lead on its new AI business, including AI cloud, autonomous driving, and smart assistance. It is supporting the goal to become carbon neutral by 2030.
  • Baidu expects third-quarter revenue between RMB30.6 billion and RMB33.5 billion, or between $4.7 billion and $5.2 billion. This assumes a core revenue growth between 9% and 20%.

Baidu also announced the appointment of Herman Yu as Chief Strategy Officer. He will continue to serve as CFO and report to CEO Robin Li. BIDU is down 2.47% premarket.