Baidu released its financial report on the evening of February 18, 2024, revealing a total revenue of 133.1 billion yuan for the year, a slight decrease of 1% year-on-year. Despite the revenue decline, net profit significantly increased to 23.8 billion yuan, marking a 17% growth. Notably, the intelligent cloud business performed well, with fourth-quarter revenue growth accelerating to 26% year-on-year, and non-online marketing revenue reaching 9.8 billion yuan, up 18% year-on-year. The daily usage of the Wenxin large model reached 1.65 billion calls in December 2024, a 33-fold increase, while the AI monthly active users of Baidu Wenku hit 94 million, a year-on-year rise of 216%.

(Source: Google Finance)

Li Yanhong stated that 2024 is a pivotal year for the company's transition from an internet-centric model to one focused on artificial intelligence, with expectations for more significant results from AI investments in 2025. He announced that Baidu has decided to open-source the upcoming Wenxin large model 4.5 series and provide free services, inspired by the success of Chinese AI company DeepSeek. Li highlighted that open-sourcing will greatly enhance model utilization and promote broader applications, with Baidu’s API daily calls increasing from 50 million a year ago to 16.5 billion.

In the autonomous driving sector, Baidu's Robotaxi service has provided over 9 million rides nationwide, with a 36% increase in ride services in the fourth quarter. Li noted that Baidu has invested over ten years in autonomous driving technology, successfully commercializing operations in complex global environments, and aims to achieve breakeven in Wuhan in 2024, with full profitability expected in 2025.

Although traditional business growth has been sluggish, Baidu continues to show strong momentum in AI and intelligent cloud operations. Core revenue reached 104.7 billion yuan, with online marketing revenue at 73 billion yuan, down 3% year-on-year, while non-online marketing revenue grew by 12%. iQIYI’s revenue fell by 8% year-on-year. The financial report indicated R&D expenses of 22.1 billion yuan, a 9% decrease mainly due to reduced personnel costs, with adjusted EBITDA at 33.1 billion yuan and an EBITDA profit margin of 25%.

Li expressed confidence that AI will drive the company’s long-term success and profitability, committing to further investments in AI capabilities as a strategic focus. Looking ahead to 2025, Baidu believes that the intelligent cloud business will continue to grow. As foundational model performance improves and costs decrease, more companies are expected to integrate AI technology, driving business enhancements.

What is Dollar-Cost Averaging in Stocks?

Dollar-cost averaging, also known as monthly stock investment, refers to an investment strategy where a fixed amount is used to purchase specific stocks at regular intervals. This approach allows investors to buy shares without needing to purchase a whole unit each time, instead buying a proportionate number of shares based on their set monthly investment amount.

For example, consider Mr. Chen, who wishes to invest in the Baidu in stages. Using the dollar-cost averaging feature, Mr. Chen invests HKD 1,000 each month, which uSMART uses to purchase shares at market price and deposits them into Mr. Chen's account. This way, Mr. Chen effectively buys around 3 shares of Baidu each week, achieving a low-threshold stock investment.

Advantages of Monthly Investment via uSMART

Choosing the right investment platform is crucial for dollar-cost averaging in stocks. Investing through the uSMART platform offers several significant advantages:

1. Commission-Free Trading

uSMART provides commission-free trading services, meaning investors do not have to pay commission fees for each stock transaction. This is particularly important for investors making regular investments, as accumulated commissions can significantly erode long-term returns. By investing through uSMART, you can allocate more funds to actual investments.

2. No Platform Fees

Besides commission-free trades, uSMART does not charge platform usage fees. This allows investors to enjoy a lower cost structure in long-term investments, further enhancing investment returns. This is especially beneficial for frequent small investments, as the absence of platform fees effectively reduces overall investment costs.

3. No Custody Fees

uSMART also offers the advantage of no custody fees, meaning you do not need to worry about management fees for account funds. This exemption provides investors with greater flexibility to manage liquidity and investment strategies.

4. Convenient Investment Experience

The uSMART platform features a user-friendly interface, allowing investors to easily set up a monthly investment plan and automate their investment process. The platform supports various payment methods, enabling investors to adjust their investment amounts flexibly based on their financial situation and investment goals.

5. Support for Fractional Shares

uSMART allows investors to make fractional share investments, meaning you can invest according to your set monthly amount even if you do not have enough funds to buy a whole share, further lowering the investment threshold and enabling flexible allocation.

How to Purchase Monthly Stocks on uSMART

Step 1: Log into the uSMART HK app and click "Trading" at the bottom right of the page.

Step 2: Click on "Dollar-Cost Averaging" in the second column of the page and select "All Dollar-Cost Averaging Stocks."

Step 3: Choose your desired dollar-cost averaging stock, select the investment amount, deduction method, and deduction date, then create your investment plan.

Once confirmed, the investment plan will take effect in real time.

(SOURCE: uSMART HK)