Well-known Chinese news site Sina recently reported that the Chinese search engine giant Baidu reported a massive loss in its just-released first quarter financial report. The report indicated that Baidu suffered a net loss of RMB 327 million (around US$49 million) in the first quarter. Last year, in same time period, Baidu reported a net profit of RMB 6.694 billion (around US$967 million). This is the first time since Baidu went public in 2005 that it has reported a loss. Immediately after the report was released, its stock price dropped by 16 percent and reached a three and a half year low. Instantly, the market value shrank by US$8.7 billion. Baidu’s Sr. Vice President who is Chief of the Search Engine Business Group Xiang Hailong resigned at the same time that the report was released. Baidu’s search engine represents the company’s core business and enjoys a near monopoly position in China’s search market, with government backing as well as a Google ban. Market experts expressed their belief that, by examining reports from other similar companies, Baidu’s report indeed reflected the adjustments in the economy.
Source: Sina, May 19, 2019
http://finance.sina.com/gb/usstock/usstock_news/sinacn/2019-05-19/doc-ifzikfzn1690342.shtml