(Yicai) Aug. 23 -- Baidu’s shares advanced after the Chinese search engine and artificial intelligence behemoth reported better-than-expected earnings in the second quarter of the year thanks to a pickup in online advertising revenue.

Baidu's Hong Kong-listed stock [HKG: 9888] jumped 4.4 percent to close at HKD128.40 (USD16.38) today. In pre-market trading in New York, the company's shares [NASDAQ: BIDU] were up 1.8 percent at USD130.63 as of 4.58 a.m. local time, after having gained 2.8 percent yesterday.

Net income on the basis of non-generally accepted accounting principles jumped 44 percent to CNY8 billion (USD1.1 billion) in the three months ended June 30 from a year ago, the Beijing-based firm’s trading results showed yesterday. Analysts at China International Capital had predicted CNY5.5 billion. Revenue rose 15 percent to CNY34.1 billion (USD4.7 billion), also topping expectations.

“Baidu Core accelerated revenue and profit growth, driven by the solid performance of online marketing business and operating leverage,” said Robin Li, co-founder and chief executive.

Baidu Core mainly provides online marketing services and non-marketing value-added services, as well as products and services from new AI projects. The business segment's non-GAAP net profit surged 41 percent to CNY7.7 billion, and revenue grew 14 percent to CNY26.4 billion.

“Generative AI and large language models hold immense transformative power in numerous industries, presenting a significant market opportunity for us,” Li said. “Our latest foundation model Ernie 3.5 has been well recognized by our cloud customers, AI developers, and industry experts.”

According to a report released by International Data Corporation, the 3.5 version of Ernie Bot ranked top nationwide from all perspectives, including algorithms, model, and sectors covered.

“By adopting an AI-native mindset, we are reinventing our products and offerings for innovative experiences, and to support various enterprises to capture this opportunity," Li noted. “Overall, Baidu is committed to building a new engine around generative AI and LLM to drive sustainable long-term growth.”

Baidu's AI Cloud, intelligent driving, and user product businesses also maintained fast earnings growth in the second quarter. 

Baidu's driverless ride-hailing service Apollo Go quickly scaled up its operation. In the second quarter, it offered 714,000 rides, a 149 percent increase on a year ago. As of June 30, Apollo Go had completed about 3.3 million orders in all. 

The number of active users of Baidu's mobile app reached 677 million in June, up 8 percent from a year earlier. 

Editor: Futura Costaglione