Bill Zhang

Friday, August 05, 2005

This is the richest Chinese young man, Liyanhong, CEO of

Chinese 'google' went to Nasdaq Stock Market today's Shares More Than Triple

SAN FRANCISCO - Inc.'s shares more than tripled in their stock market debut Friday as investors scrambled to buy an early stake in a Chinese-language search engine that's hoping to become its country's equivalent of Google.

The Beijing-based company's shares soared as high as $99.50 on the Nasdaq Stock Market after being priced at $27 in an initial public offering completed late Thursday. After the initial buying stampede, the shares settled back to $90.35 in early afternoon trading.

At that price, Baidu's market value stood at $2.9 billion — a lofty appraisal for a 5 1/2-year-old company that only recently became profitable. The company earned $1.8 million on revenue of $13.6 million during the first half of this year.

Investors are betting that Baidu's search engine might turn into a moneymaking machine if it can emerge as an Internet hub in China, where most of the country's more than 1 billion residents still aren't surfing the Web.

As China's early search engine leader, Baidu's growth potential often is compared to Google, which has turned into a cultural and financial phenomenon less than seven years after its incorporation.

With its stock worth three times more than its own IPO nearly a year ago, Google's market value now hovers around $85 billion.

Like Google, Baidu — pronounced "by doo" — so far has made most of its money from text-based ads that are tied to search requests and generate a commission whenever the commercial links are clicked upon.

Although its business model mirrors Google, Baidu faces different challenges.

China's Communist government and its history of censorship poses one of the biggest potential stumbling blocks.

In 2002, the government shut down Baidu for a week and fined the company for producing search results with content considered "socially harmful," according to

Securities and Exchange Commission documents.

Requests for MP3 music files account for 21 percent for Baidu's search requests, a frequency that already has provoked two lawsuits for alleged copyright infringement.

But even Google apparently likes Baidu's potential, having invested $5 million in the company last year. Google's 2.6 percent is now worth $67.7 million.

With ambitions to become a bigger player in China, Google also represents a significant threat to Baidu. Two other search engine powers, Yahoo Inc. (Nasdaq:YHOO - news) and Microsoft Corp., also have designs on China.

Baidu was founded by two engineers, Robin Li and Eric Xu, who at one time went to school and worked in the United States.

Li, who received his master's degree in computer science from the University of New York at Buffalo, is the company's chief executive officer and owns a 25.8 percent stake worth nearly $700 million. Xu, who received a doctorate from Texas A&M, no longer works at the company.

Baidu's biggest shareholder is a Silicon Valley venture capital firm, Draper Fisher Jurvetson, whose 28.1 percent is worth $740 million.

Tuesday, August 02, 2005

My manager in Flextronics Oulu, Sakari Nokela and me

Near my apartment

In the office

Monday, August 01, 2005

Finland: Chinese Landwind SUVs to enter markets 2005

Helsinki, 28 July, 2005 — The first Chinese Landwind SUVs will enter the Finnish markets at the end of 2005. Landwind Motor's SUVs are imported to Europe by Dutch businessman Peter Bijvelds. The image of the cars is expected to be raised by the fact that the cars will be sold by specially selected retailers, and they have Mitsubishi and General Motor engines.

Related news from china source:

首批中国汽车抵比利时 将在27个欧洲国家销售 2005/07/15 10:36 DCC


  荷兰汽车交易商Peter Bijvelds表示,已为这批200部陆风(Landwind)运动型多功能车(SUV)找到买主,并对年内约2000部的销量抱有信心。他对路透社表示,“我认为市场很大。”