UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 20-F (Mark One) ‘ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 or È ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2015. or ‘ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to or ‘ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of event requiring this shell company report Commission file number: 000-51469 Baidu, Inc. (Exact name of Registrant as specified in its charter) N/A (Translation of Registrant’s name into English) Cayman Islands (Jurisdiction of incorporation or organization) Baidu Campus No. 10 Shangdi 10th Street Haidian District, Beijing 100085 The People’s Republic of China (Address of principal executive offices) Jennifer Xinzhe Li, Chief Financial Officer Telephone: +(86 10) 5992-8888 Email: [email protected] Facsimile: +(86 10) 5992-0000 Baidu Campus No. 10 Shangdi 10th Street, Haidian District, Beijing 100085 The People’s Republic of China (Name, Telephone, Email and/or Facsimile number and Address of Company Contact Person) Securities registered or to be registered pursuant to Section 12(b) of the Act: Title of Each Class Name of Each Exchange on Which Registered American depositary shares (ten American depositary shares representing one Class A The NASDAQ Stock Market LLC ordinary share, par value US$0.00005 per share) (The NASDAQ Global Select Market) Class A ordinary shares, par value US$0.00005 per share* The NASDAQ Stock Market LLC (The NASDAQ Global Select Market) * Not for trading, but only in connection with the listing on The NASDAQ Global Select Market of American depositary shares. Securities registered or to be registered pursuant to Section 12(g) of the Act: None (Title of Class) Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act: None (Title of Class) Indicate the number of outstanding shares of each of the Issuer’s classes of capital or common stock as of the close of the period covered by the annual report. 27,113, 541 Class A ordinary shares and 7,492,921 Class B ordinary shares, par value US$0.00005 per share, as of December 31, 2015. Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes È No ‘ If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. Yes ‘ No È Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes È No ‘ Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes È No ‘ Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act. (Check one): Large accelerated filer È Accelerated filer ‘ Non-accelerated filer ‘ Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing: U.S. GAAP È International Financial Reporting Standards as issued by the International Other ‘ Accounting Standards Board ‘ If “Other” has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow. Item 17 ‘ Item 18 ‘ If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ‘ No È (APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PAST FIVE YEARS) Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes ‘ No ‘ TABLE OF CONTENTS Page INTRODUCTION ....................................................................... 1 FORWARD-LOOKING INFORMATION ................................................... 1 PART I ............................................................................... 2 Item 1. Identity of Directors, Senior Management and Advisers ............................ 2 Item 2. Offer Statistics and Expected Timetable ........................................ 2 Item 3. Key Information ........................................................... 2 Item 4. Information on the Company ................................................. 40 Item 4A. Unresolved Staff Comments ................................................. 74 Item 5. Operating and Financial Review and Prospects ................................... 74 Item 6. Directors, Senior Management and Employees ................................... 103 Item 7. Major Shareholders and Related Party Transactions ............................... 112 Item 8. Financial Information ....................................................... 113 Item 9. The Offer and Listing ....................................................... 114 Item 10. Additional Information ...................................................... 116 Item 11. Quantitative and Qualitative Disclosures about Market Risk ........................ 124 Item 12. Description of Securities Other than Equity Securities ............................. 125 PART II .............................................................................. 127 Item 13. Defaults, Dividend Arrearages and Delinquencies ................................ 127 Item 14. Material Modifications to the Rights of Security Holders and Use of Proceeds .......... 127 Item 15. Controls and Procedures ..................................................... 127 Item 16A. Audit Committee Financial Expert ............................................. 127 Item 16B. Code of Ethics ............................................................ 128 Item 16C. Principal Accountant Fees and Services ........................................ 128 Item 16D. Exemptions from the Listing Standards for Audit Committees ....................... 128 Item 16E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers ................ 129 Item 16F. Change in Registrant’s Certifying Accountant ................................... 129 Item 16G. Corporate Governance ...................................................... 129 Item 16H. Mine Safety Disclosure ..................................................... 129 PART III ............................................................................. 130 Item 17. Financial Statements ........................................................ 130 Item 18. Financial Statements ........................................................ 130 Item 19. Exhibits .................................................................. 130 SIGNATURES ......................................................................... 137 i INTRODUCTION In this annual report, except where the context otherwise requires and for purposes of this annual report only: • “we,” “us,” “our company,” “our,” or “Baidu” refers to Baidu, Inc., its subsidiaries, and, in the context of describing our operations and consolidated financial information, our consolidated affiliated entities in China, including but not limited to Beijing Baidu Netcom Science Technology Co., Ltd., or Baidu Netcom; • “user traffic” or “traffic” refers generally to page views and the reach of a website, with “page views” measuring the number of web pages viewed by internet users over a specified period of time except that multiple page views of the same page viewed by the same user on the same day are counted only once, and “reach” measuring the number of internet users and typically expressed as the percentage of all internet users who visit a given website; • “China” or “PRC” refers to the People’s Republic of China, and solely for the purpose of this annual report, excluding Taiwan, Hong Kong and Macau; • “shares” or “ordinary shares” refers to our ordinary shares, which include both Class A ordinary shares and Class B ordinary shares; • “ADSs” refers to our American depositary shares, and we effected a change of the ADS to Class A ordinary share ratio from 1 ADS representing 1 Class A ordinary share to 10 ADSs representing 1 Class A ordinary share on May 12, 2010, which has the same effect as a 10-for-1 ADS split; • “U.S. GAAP” refers to generally accepted accounting principles in the United States; • “RMB” or “Renminbi” refers to the legal currency of China; • “$,” “dollars,” “US$” or “U.S. dollars” refers to the legal currency of the United States; and • all discrepancies in any table between the amounts identified as total amounts and the sum of the amounts listed therein are due to rounding.