Alicia Yap: Thanks, Robin.
Operator: The next question comes from Eddie Leung with Bank of America. Please go ahead.
Eddie Leung: Hi, good evening, guys. Pretty solid quarter despite all the macro headwinds. I have a couple of questions on cloud services. So we have seen — it seems like a slowdown in the industry. So could you talk a little bit about the reasons behind the slowdown — and how you guys are thinking about the growth rates in the upcoming lessor quarters on the medium term? And then secondly, could you also talk a little bit about the competitive landscape — we have seen a media reporting market share gains by cloud companies all tie the Internet set in the past one or two years, right? So any color on the competitive landscape will be useful. And then finally, I remember, Robin, you mentioned about the margin improvement of cloud. So could you also talk about your thoughts on the role to profitability? Any time line would be helpful. Thank you.
A €“ Dou Shen: Hello, Eddie. Thanks a lot for your questions. This is Dou. I’ll try to answer your questions. So for the revenue growth part, right, I think it’s slowing down mainly due to the COVID-19 impact. for example, because of the travel restrictions, we could not even implement our projects on time, and the bidding for the new contracts was also affected. Apart from that, I also want to highlight that we are focused on healthier and more sustainable growth by cutting some low-margin businesses. So we believe this approach is crucial for the long-term development. Actually, looking beyond the current quarter, as Robin has just mentioned, the train for China’s traditional industries and the public sector to use AI and move their business onto the cloud remains unchanged.
So I think post pandemic, the companies should gain more confidence in their future growth so that they are more willing to spend more money on digital and intelligent upgrades. Baidu has already demonstrated that we are very capable of using AI to improve the efficiency in transportation. As you can already see, our ACE Smart Transportation revenues have been growing rapidly, and we continue to gain market share accordingly. So in the meanwhile, we are reducing the operating loss for small transportation because we continue to expand scale and continue to increase operating leverage. So in our next steps, so we are excited about repeating our success in transportation in other traditional industries like manufacturing and utilities. So actually, in the — just the past quarter €“ the quarter, so our cloud revenues from the manufacturing and utilities industries both grow solidly.
And it’s largely because of our continuous efforts in improving the end-to-end AI capabilities and our understanding of the fundamental needs in these industries. So to answer your questions, we believe this or our sustainable competitive advantages to compete against other players. In addition, the market is expanding in their alternative opportunities for us and our peer companies to grow over the long-term. So talking about the profitability, so Baidu AI Cloud reduced operating loss and continue to improve operating loss margin this quarter. To expand on that, our personal cloud kept generating decent operating profit and margin. And our enterprise part grow faster than personal cloud, and we’re very happy to see the trend of loss reduction because of the efforts I just mentioned earlier.
So our strategy to standardize solutions in the user — in the use cases for our key industries started to bear fruit. So we have worked very hard to replicate more solutions from one user case to another to grow business scale and improve margins. So it’s already proven in Smart Transportation as we have mentioned. And in the future, we look forward to expanding this approach at large scale in more key industries. So AI Cloud is very important new business for Baidu, and we will continue to grow the business and improve margins going forward.
