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Baidu Inc.， China’s biggest search engine， has recorded slowed net income growth for the ninth consecutive quarter， which it blamed on continued heavy investment in research and development as it continues to grow its share of China’s mobile Internet market.
However， some analysts said they expected the declining profit growth could continue for up to two years， as the company strives to translate its mobile traffic into revenues.
Baidu reported total revenues of 5.97 billion yuan （$961.0 million） in the first quarter， a 40-percent increase over the same period last year， which delivered net income of 2.04 billion yuan （331million）， an 8.5 percent rise. Most of the revenue came from search advertising， it said.
The company’s net income growth rate peaked at 171.3 percent in the fourth quarter of 2010， but has been declining since.
IT Legal War
Tencent， China’s biggest Internet company， won its third lawsuit against Qihoo 360， a leading Chinese antivirus software developer， over claims of the latter’s unfair competition， according to a court ruling issued on April 25.
Qihoo 360 was accused of breaching faith as well as equal competition and was malicious in its competition against Tencent， a Guangdong Provincial High People’s Court ruling said.
Qihoo 360 seriously disturbed the Internet business order and set down the roots of a long and drawn-out legal war between the two companies， it added.
Fined 5 million yuan （$802，568） in compensation to Tencent， Qihoo 360 was asked to apologize on its official website and via several major portal websites and newspapers.
Qihoo 360 held a news briefing in Beijing immediately after the trial， saying it will appeal to the Supreme People’s Court.
However， some analysts said they expected the declining profit growth could continue for up to two years， as the company strives to translate its mobile traffic into revenues.
Baidu reported total revenues of 5.97 billion yuan （$961.0 million） in the first quarter， a 40-percent increase over the same period last year， which delivered net income of 2.04 billion yuan （331million）， an 8.5 percent rise. Most of the revenue came from search advertising， it said.
The company’s net income growth rate peaked at 171.3 percent in the fourth quarter of 2010， but has been declining since.
IT Legal War
Tencent， China’s biggest Internet company， won its third lawsuit against Qihoo 360， a leading Chinese antivirus software developer， over claims of the latter’s unfair competition， according to a court ruling issued on April 25.
Qihoo 360 was accused of breaching faith as well as equal competition and was malicious in its competition against Tencent， a Guangdong Provincial High People’s Court ruling said.
Qihoo 360 seriously disturbed the Internet business order and set down the roots of a long and drawn-out legal war between the two companies， it added.
Fined 5 million yuan （$802，568） in compensation to Tencent， Qihoo 360 was asked to apologize on its official website and via several major portal websites and newspapers.
Qihoo 360 held a news briefing in Beijing immediately after the trial， saying it will appeal to the Supreme People’s Court.