Baidu Research Note

Compared to 1Q2018, Baidu's SG&A expenses were increased by CNY 2.94 billion, the content cost were increased by CNY 1.98 billion, the operating income were decreased by CNY 5.51 billion. The large increase in SG&A expenses and content cost was caused by promotional expenses related to Haokan App, Quanmin App and other baidu products. Among them, considerable resources are spent in the promotional campaigns during the Chiense Spring Festial.