According to the China Internet Network Information Center, search became the top service in 2010, with about 82 percent of the country's Web population using it. Online music is ranked second with 79 percent of the country's Internet users.

Baidu is also expanding its presence in mobile phones. Android is developed by Baidu's rival Google, but the mobile operating system is open-source software, allowing handset manufacturers to make changes to it. Baidu has been able to pre-install its search service on Android mobile phones through "revenue sharing agreements" with device makers.

Even as search remains Baidu's core service, the company has been including social networking features in its platform, Li said. Both analysts and Internet firms have identified Twitter-like microblogging as the next big Web service to hit China.

The company recently introduced a feature to its Baidu search engine, allowing users to directly post from the search page to third-party microblogging sites. In addition, the company has a beta version of its own .

Baidu also reported growth with Qiyi.com, the company’s video sharing site. The video site now has more than 150 million monthly unique users, just one year after its launch, Li said. "This is by far a record for online video sites," he added. Qiyi operates as a video site that hosts licensed videos, much like Hulu does.