Baidu Inc., the firm behind Baidu. com, China's leading search engine, reported on Tuesday that while its profits have surged a whopping 42%, share rates have gone down. Revealing its third quarter report, the company said the fall in share rates is not a warning sign. They have temporarily been hurt because Baidu is switching over to a new advertising system.

Quoting figures from its their quarter report, the Beijing based firm revealed that for the quarter up-to September 30, its income was 492.9 million Yuan ($72.2 Million), and the current trading rate of each share stood firm at 14.14 Yuan ($2.07). Figures also revealed that Baidu's revenue has surged 39.1% as compared to what it was during the same period last year. The revenue figures now stand firm at 1.3 billion yuan ($187.3 million).

With the largest number of internet users in the world, China is one of the very few places where Google is not the top ranked search engine. Baidu dominates around 60% of China's search market, with Google coming in at number 2, as was recently revealed by a research firm in Beijing, Analysis International.

The temporary fall of share prices, according to Baidu, might crawl into the fourth quarter as well, as the firm is looking at a complete makeover of its online advertising system, moving to the new Phoenix Nest program. "With 70 percent of customers already using Phoenix Nest, we believe this is the right time to complete the switch to the new system", said chairman and CEO Robin Li in a statement. "We are confident that Phoenix Nest will deliver tremendous benefits to our users, customers and Baidu".