Executive Summary

• Baidu’s gross merchandise value totaled ¥7 billion (US$2.3 billion) for 4Q15, an increase of 397% year over year. Total revenues rose by 33.1% year over year. 4Q15 declined 15.7% year over year, excluding an exchange of Qunar shares with Ctrip.
• The contribution from mobile climbed to 56%. However, margins compressed due to higher transaction services and iQiyi-related costs.
• 1Q16 total revenues are forecasted to increase by 21.1%–25.5% year over year, to ¥4–¥16.0 billion (US$2.4–US$2.5 billion).