UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of August 2023

Commission File Number: 001-38431

 

 

 

iQIYI, Inc.

4/F, iQIYI Youth Center Yoolee Plaza,

 

 

No.21, North Road of Workers’ Stadium, Chaoyang District Beijing, 100027,

People’s Republic of China

Tel: +86 10 6267-7171

(Address of principal executive offices)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F  ☒            Form 40-F  ☐

 

 

 


Exhibit Index

 

Exhibit 99.1     Press Release


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

iQIYI, Inc.
By :  

/s/ Jun Wang

Name : Jun Wang
Title : Chief Financial Officer

Date: August 22, 2023

[Signature Page to Form 6-K]

Exhibit 99.1

iQIYI Announces Second Quarter 2023 Financial Results

BEIJING, CHINA, August 22, 2023 – iQIYI, Inc. (Nasdaq: IQ) (“iQIYI” or the “Company”), a leading provider of online entertainment video services in China, today announced its unaudited financial results for the second quarter ended June 30, 2023.

Second Quarter 2023 Highlights

 

   

Total revenues were RMB7.8 billion (US$1.1 billion1), increasing 17% year over year.

 

   

Operating income was RMB610.4 million (US$84.2 million) and operating income margin was 8%, compared to operating income of RMB125.8 million and operating income margin of 2% in the same period in 2022.

 

   

Non-GAAP operating income2 was RMB786.4 million (US$108.4 million) and non-GAAP operating income margin was 10%, compared to non-GAAP operating income of RMB343.8 million and non-GAAP operating income margin of 5% in the same period in 2022.

 

   

Net income attributable to iQIYI was RMB365.2 million (US$50.4 million), compared to net loss attributable to iQIYI of RMB214.0 million in the same period in 2022.

 

   

Non-GAAP net income attributable to iQIYI2 was RMB594.7 million (US$82.0 million), compared to non-GAAP net income attributable to iQIYI of RMB78.3 million in the same period in 2022.

“Our original content strategy continued to deliver top-notch titles, which in turn brought the strongest second-quarter performance in our history in terms of key metrics, such as total revenues, profits, free cash flow, and average daily subscribers,” commented Mr. Yu Gong, Founder, Director, and Chief Executive Officer of iQIYI. “On top of these exceptional results, we are investing in transformative technologies, including generative AI, to prepare us for future growth.”

“Our second quarter total revenues grew by 17% year over year, while GAAP and Non-GAAP operating income grew by 385% and 129%, respectively. In addition, our operating cash flow and free cash flow reached RMB886 million and RMB872 million, respectively, each maintaining positive for five and four consecutive quarters. Our total interest-bearing debt decreased significantly quarter over quarter.” commented Mr. Jun Wang, Chief Financial Officer of iQIYI. “We are making solid progress in delivering high-quality growth.”


Second Quarter 2023 Financial Highlights

 

     Three Months Ended  

(Amounts in thousands of Renminbi (“RMB”), except for per

ADS data, unaudited)

   June 30,
2022
    March 31,
2023
     June 30,
2023
 
     RMB     RMB      RMB  

Total revenues

     6,656,549       8,348,807        7,802,297  

Operating income

     125,787       858,631        610,392  

Operating income (non-GAAP)

     343,806       1,034,296        786,391  

Net (loss)/income attributable to iQIYI, Inc.

     (213,995     618,109        365,207  

Net income attributable to iQIYI, Inc. (non-GAAP)

     78,253       939,533        594,663  

Diluted net (loss)/income per ADS

     (0.28     0.64        0.37  

Diluted net income per ADS (non-GAAP)2

     0.10       0.97        0.61  

Second Quarter 2023 Other Operating Highlights

 

   

The average daily number of total subscribing members3 for the quarter was 111.2 million, compared to 98.3 million for the same period in 2022 and 128.9 million for the first quarter in 2023. The average daily number of subscribing members excluding individuals with trial memberships4 for the quarter was 110.7 million, compared to 97.7 million for the same period in 2022 and 128.1 million for the first quarter in 2023.

 

   

The monthly average revenue per membership (ARM5) for the second quarter was RMB14.82, compared to RMB14.53 for the same period in 2022 and RMB14.35 for the first quarter in 2023, increasing 2% year over year.

 

Footnotes:

[1]

Unless otherwise noted, RMB to USD was converted at an exchange rate of RMB7.2513 as of June 30, 2023, as set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System. Translations are provided solely for the convenience of the reader.

[2]

Non-GAAP measures are defined in the Non-GAAP Financial Measures section (see also “Reconciliations of Non-GAAP Financial Measures to the Nearest Comparable GAAP Measures” for more details).

[3]

The average daily number of total subscribing members for a quarter is calculated by averaging the number of total subscribing members in each day of such quarter.

[4]

The average daily number of subscribing members excluding individuals with trial memberships for the quarter is calculated by averaging the number of subscribing members excluding individuals with trial memberships in each day of such quarter.

[5]

The monthly ARM for the quarter is calculated by dividing our total revenues from membership services during a given quarter by the average daily number of total subscribing members for that quarter and the number of months in the quarter.

Second Quarter 2023 Financial Results

Total revenues reached RMB7.8 billion (US$1.1 billion), increasing 17% year over year.

Membership services revenue was RMB4.9 billion (US$682.2 million), increasing 15% year over year, primarily attributable to the increase in the number of total subscribing members and our continuous efforts in refining operations to improve monetization capabilities. The average daily number of total subscribing members increased from 98.3 million for the second quarter in 2022 to 111.2 million for the second quarter in 2023. The number of total subscribing members reached 109.5 million as of June 30, 2023, compared to 95.6 million as of June 30, 2022.


Online advertising services revenue was RMB1.5 billion (US$206.2 million), increasing 25% year over year. The increase was primarily driven by the growth of performance-based advertising business and, to a lesser extent, the growth in the brand advertising business.

Content distribution revenue was RMB553.3 million (US$76.3 million), increasing 15% year over year, primarily driven by the increase in average unit price of barter transactions.

Other revenues were RMB807.0 million (US$111.3 million), increasing 16% year over year, primarily driven by the revenue derived from third-party cooperation, partially offset by the deconsolidation of live broadcasting business.

Cost of revenues was RMB5.8 billion (US$796.3 million), increasing 10% year over year, primarily driven by higher content costs. Content costs as a component of cost of revenues were RMB4.1 billion (US$571.2 million), increasing 7% year over year. The increase in content cost was primarily driven by higher number of original dramas and variety shows launched during the quarter.

Selling, general and administrative expenses were RMB979.0 million (US$135.0 million), increasing 22% year over year, primarily due to higher marketing spending.

Research and development expenses were RMB439.0 million (US$60.5 million), decreasing 9% year over year, primarily due to the decrease in personnel-related compensation expenses.

Operating income was RMB610.4 million (US$84.2 million), compared to operating income of RMB125.8 million in the same period in 2022. Operating income margin was 8%, compared to operating income margin of 2% in the same period in 2022. Non-GAAP operating income was RMB786.4 million (US$108.4 million) and non-GAAP operating income margin was 10%, compared to non-GAAP operating income of RMB343.8 million and non-GAAP operating income margin of 5% in the same period in 2022.

Total other expense was RMB234.6 million (US$32.4 million), compared to total other expense of RMB291.0 million during the same period of 2022. The year over year variance was primarily due to increased interest expenses and the foreign exchange loss due to the fluctuation of exchange rate between Renminbi and the U.S. dollar, partially offset by higher interest income and less loss from equity method investment.

Income before income taxes was RMB375.8 million (US$51.8 million), compared to loss before income taxes of RMB165.2 million in the same period in 2022.

Income tax expense was RMB7.9 million (US$1.1 million), compared to income tax expense of RMB36.2 million in the same period in 2022.


Net income attributable to iQIYI was RMB365.2 million (US$50.4 million), compared to net loss attributable to iQIYI of RMB214.0 million in the same period in 2022. Diluted net income attributable to iQIYI per ADS was RMB0.37 (US$0.05) for the second quarter of 2023, compared to diluted net loss attributable to iQIYI per ADS of RMB0.28 in the same period of 2022. Non-GAAP net income attributable to iQIYI was RMB594.7 million (US$82.0 million), compared to non-GAAP net income attributable to iQIYI of RMB78.3 million in the same period in 2022. Non-GAAP diluted net income attributable to iQIYI per ADS was RMB0.61 (US$0.08), compared to non-GAAP diluted net income attributable to iQIYI per ADS of RMB0.10 in the same period of 2022.

As of June 30, 2023, the Company had cash, cash equivalents, restricted cash, short-term investments and long-term restricted cash included in prepayments and other assets of RMB6.1 billion (US$840.8 million). In the second quarter of 2023, the Company had repurchased a total principal amount of US$133.6 million of its 4% convertible senior notes due 2026 for cash.

Conference Call Information

iQIYI’s management will hold an earnings conference call at 7:00 AM on August 22, 2023, U.S. Eastern Time (7:00 PM on August 22, 2023, Beijing Time).

Please register in advance of the conference using the link provided below. Upon registering, you will be provided with participant dial-in numbers, passcode and unique access PIN by a calendar invite.

Participant Online Registration: https://s1.c-conf.com/diamondpass/10032705-gh86y7.html

It will automatically direct you to the registration page of “ iQIYI Second Quarter 2023 Earnings Conference Call”, where you may fill in your details for RSVP.

In the 10 minutes prior to the call start time, you may use the conference access information (including dial-in number(s), passcode and unique access PIN) provided in the calendar invite that you have received following your pre-registration.

A telephone replay of the call will be available after the conclusion of the conference call through August 29, 2023.

Dial-in numbers for the replay are as follows:

International Dial-in      +1 855 883 1031

Passcode:                          10032705

A live and archived webcast of the conference call will be available at http://ir.iqiyi.com/.


About iQIYI, Inc.

iQIYI, Inc. is a leading provider of online entertainment video services in China. It combines creative talent with technology to foster an environment for continuous innovation and the production of blockbuster content. It produces, aggregates and distributes a wide variety of professionally produced content, as well as a broad spectrum of other video content in a variety of formats. The Company distinguishes itself in the online entertainment industry by its leading technology platform powered by advanced AI, big data analytics and other core proprietary technologies. iQIYI attracts a daily subscriber base of more than 100 million, and its diversified monetization model includes membership services, online advertising services, content distribution, online games, IP licensing, talent agency, online literature, etc.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. Among other things, the quotations from management in this announcement, as well as iQIYI’s strategic and operational plans, contain forward-looking statements. iQIYI may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about iQIYI’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: iQIYI’s strategies; iQIYI’s future business development, financial condition and results of operations; iQIYI’s ability to retain and increase the number of users, members and advertising customers, and expand its service offerings; competition in the online entertainment industry; changes in iQIYI’s revenues, costs or expenditures; Chinese governmental policies and regulations relating to the online entertainment industry, general economic and business conditions globally and in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company’s filings with the Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of the press release, and iQIYI undertakes no duty to update such information, except as required under applicable law.

Non-GAAP Financial Measures

To supplement iQIYI’s consolidated financial results presented in accordance with GAAP, iQIYI uses the following non-GAAP financial measures: non-GAAP operating income, non-GAAP operating income margin, non-GAAP net income attributable to iQIYI, non-GAAP diluted net income attributable to iQIYI per ADS and free cash flow. The presentation of the non-GAAP financial measure is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP.


iQIYI believes that these non-GAAP financial measures provide meaningful supplemental information regarding its operating performance by excluding certain items that may not be indicative of its business operating results, such as operating performance excluding non-cash charges or non-operating in nature. The Company believes that both management and investors benefit from referring to the non-GAAP financial measures in assessing its performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to iQIYI’s historical operating performance. The Company believes the non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. A limitation of using these non-GAAP financial measures is that the non-GAAP measures exclude certain items that have been and will continue to be for the foreseeable future a significant component in the Company’s results of operations. These non-GAAP financial measures presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to the Company’s data.

Non-GAAP operating income represents operating income excluding share-based compensation expenses, amortization and impairment of intangible assets resulting from business combinations.

Non-GAAP net income attributable to iQIYI, Inc. represents net income attributable to iQIYI, Inc. excluding share-based compensation expenses, amortization and impairment of intangible assets resulting from business combinations, disposal gain or loss, impairment of long-term investments, fair value change of long-term investments, adjusted for related income tax effects. iQIYI’s share of equity method investments for these non-GAAP reconciling items, primarily amortization and impairment of intangible assets not on the investees’ books, accretion of their redeemable non-controlling interests, and the gain or loss associated with the issuance of shares by the investees at a price higher or lower than the carrying value per shares, adjusted for related income tax effects, are also excluded.

Non-GAAP diluted net income per ADS represents diluted net income per ADS calculated by dividing non-GAAP net income attributable to iQIYI, Inc, by the weighted average number of ordinary shares expressed in ADS.

Free cash flow represents net cash provided by operating activities less capital expenditures.

For more information, please contact:

Investor Relations

iQIYI, Inc.

ir@qiyi.com


iQIYI, INC.

Condensed Consolidated Statements of (Loss)/Income

(In RMB thousands, except for number of shares and per share data)

 

     Three Months Ended     Six Months Ended  
     June 30,
2022
    March 31,
2023
    June 30,
2023
    June 30,
2022
    June 30,
2023
 
     RMB
(Unaudited)
    RMB
(Unaudited)
    RMB
(Unaudited)
    RMB
(Unaudited)
    RMB
(Unaudited)
 

Revenues:

          

Membership services

     4,285,071       5,547,305       4,946,567       8,756,546       10,493,872  

Online advertising services

     1,193,809       1,403,752       1,495,378       2,531,108       2,899,130  

Content distribution

     479,261       727,262       553,319       1,105,377       1,280,581  

Others

     698,408       670,488       807,033       1,540,577       1,477,521  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

     6,656,549       8,348,807       7,802,297       13,933,608       16,151,104  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating costs and expenses:

          

Cost of revenues

     (5,247,959     (5,956,003     (5,773,867     (11,211,812     (11,729,870

Selling, general and administrative

     (800,602     (1,105,855     (979,000     (1,545,383     (2,084,855

Research and development

     (482,201     (428,318     (439,038     (957,213     (867,356
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating costs and expenses

     (6,530,762     (7,490,176     (7,191,905     (13,714,408     (14,682,081
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     125,787       858,631       610,392       219,200       1,469,023  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Other income/(expenses):

          

Interest income

     15,707       104,986       52,196       24,654       157,182  

Interest expenses

     (181,907     (285,964     (278,521     (357,422     (564,485

Foreign exchange (loss)/gain, net

     (98,101     36,982       (114,992     (107,118     (78,010

(Loss)/gain from equity method investments

     (93,690     (85,109     33,789       (96,848     (51,320

Others, net

     67,006       20,862       72,928       343,082       93,790  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total other expense, net

     (290,985     (208,243     (234,600     (193,652     (442,843
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

(Loss)/income before income taxes

     (165,198     650,388       375,792       25,548       1,026,180  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income tax expense

     (36,204     (24,632     (7,930     (53,086     (32,562

Net (loss)/income

     (201,402     625,756       367,862       (27,538     993,618  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Less: Net income attributable to noncontrolling interests

     12,593       7,647       2,655       17,364       10,302  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net (loss)/income attributable to iQIYI, Inc.

     (213,995     618,109       365,207       (44,902     983,316  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net (loss)/income attributable to ordinary shareholders

     (213,995     618,109       365,207       (44,902     983,316  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net (loss)/income per share for Class A and Class B ordinary shares:

          

Basic

     (0.04     0.09       0.05       (0.01     0.15  

Diluted

     (0.04     0.09       0.05       (0.01     0.14  

Net (loss)/income per ADS (1 ADS equals 7 Class A ordinary shares):

          

Basic

     (0.28     0.66       0.38       (0.07     1.04  

Diluted

     (0.28     0.64       0.37       (0.07     1.01  

Weighted average number of Class A and Class B ordinary shares used in net loss per share computation:

          

Basic

     6,074,616,616       6,569,658,687       6,704,546,096       5,891,471,047       6,637,475,009  

Diluted

     6,074,616,616       6,754,965,091       6,851,986,558       5,891,471,047       6,803,848,441  


iQIYI, INC.

Condensed Consolidated Balance Sheets

(In RMB thousands, except for number of shares and per share data)

 

     December 31,
2022
    June 30,
2023
 
     RMB     RMB
(Unaudited)
 

ASSETS

    

Current assets:

    

Cash and cash equivalents

     7,097,938       3,565,285  

Restricted cash

     13,618       6,120  

Short-term investments

     818,265       1,014,692  

Accounts receivable, net

     2,402,675       2,692,389  

Prepayments and other assets

     2,602,927       2,664,647  

Amounts due from related parties

     104,154       159,641  

Licensed copyrights, net

     746,058       832,020  
  

 

 

   

 

 

 

Total current assets

     13,785,635       10,934,794  
  

 

 

   

 

 

 

Non-current assets:

    

Fixed assets, net

     1,104,721       969,319  

Long-term investments

     2,453,644       2,359,960  

Licensed copyrights, net

     6,840,629       6,463,198  

Intangible assets, net

     436,685       391,488  

Produced content, net

     13,001,904       12,722,298  

Prepayments and other assets

     3,865,133       4,604,782  

Operating lease assets

     673,971       647,177  

Goodwill

     3,826,147       3,820,823  

Amounts due from related parties

     59,880       175,079  
  

 

 

   

 

 

 

Total non-current assets

     32,262,714       32,154,124  
  

 

 

   

 

 

 

Total assets

     46,048,349       43,088,918  
  

 

 

   

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

    

Current liabilities:

    

Accounts and notes payable

     5,993,416       5,740,030  

Amounts due to related parties

     3,521,646       2,872,843  

Customer advances and deferred revenue

     4,232,110       4,636,969  

Convertible senior notes, current portion

     8,305,447       23,263  

Short-term loans

     3,347,638       2,992,101  

Operating lease liabilities, current portion

     103,517       100,081  

Accrued expenses and other liabilities

     2,626,244       2,372,579  
  

 

 

   

 

 

 

Total current liabilities

     28,130,018       18,737,866  
  

 

 

   

 

 

 

Non-current liabilities:

    

Convertible senior notes

     9,568,279       11,446,838  

Deferred tax liabilities

     1,832       1,273  

Amounts due to related parties

     100,941       90,649  

Operating lease liabilities

     508,571       489,826  

Other non-current liabilities

     1,395,269       1,581,179  
  

 

 

   

 

 

 

Total non-current liabilities

     11,574,892       13,609,765  
  

 

 

   

 

 

 

Total liabilities

     39,704,910       32,347,631  
  

 

 

   

 

 

 

Shareholders’ equity:

    

Class A ordinary shares

     194       236  

Class B ordinary shares

     193       193  

Additional paid-in capital

     50,885,688       54,663,377  

Accumulated deficit

     (46,498,897     (45,515,581

Accumulated other comprehensive income

     1,863,454       1,510,843  

Non-controlling interests

     92,807       82,219  
  

 

 

   

 

 

 

Total shareholders’ equity

     6,343,439       10,741,287  
  

 

 

   

 

 

 

Total liabilities and shareholders’ equity

     46,048,349       43,088,918  
  

 

 

   

 

 

 


iQIYI, INC.

Condensed Consolidated Statements of Cash Flows

(In RMB thousands, except for number of shares and per share data)

 

     Three Months Ended  
     June 30,
2022
    March 31,
2023
    June 30,
2023
 
     RMB
(Unaudited)
    RMB
(Unaudited)
    RMB
(Unaudited)
 

Net cash provided by operating activities

     47,359       1,001,765       885,560  

Net cash (used for)/provided by investing activities (1,2)

     (652,454     166,845       (420,481

Net cash used for financing activities

     (333,393     (3,356,630     (1,175,147

Effect of exchange rate changes on cash, cash equivalents and restricted cash

     75,096       (8,862     127,759  
  

 

 

   

 

 

   

 

 

 

Net decrease in cash, cash equivalents and restricted cash

     (863,392     (2,196,882     (582,309
  

 

 

   

 

 

   

 

 

 

Cash, cash equivalents and restricted cash at the beginning of the period

     3,882,776       7,861,556       5,664,674  

Cash, cash equivalents and restricted cash at the end of the period

     3,019,384       5,664,674       5,082,365  
  

 

 

   

 

 

   

 

 

 

Reconciliation of cash and cash equivalents and restricted cash:

      

Cash and cash equivalents

     2,923,178       4,529,267       3,565,285  

Restricted cash

     96,206       6,120       6,120  

Long-term restricted cash

     —         1,129,287       1,510,960  
  

 

 

   

 

 

   

 

 

 

Total cash and cash equivalents and restricted cash shown in the statements of cash flows

     3,019,384       5,664,674       5,082,365  
  

 

 

   

 

 

   

 

 

 

Net cash provided by operating activities

     47,359       1,001,765       885,560  

Less: Capital expenditures (2)

     (66,005     (241     (13,307
  

 

 

   

 

 

   

 

 

 

Free cash flow

     (18,646     1,001,524       872,253  
  

 

 

   

 

 

   

 

 

 

 

(1)

Net cash provided by or used for investing activities primarily consists of net cash flows from investing in debt securities, purchase of long-term investments and capital expenditures.

(2)

Capital expenditures are incurred primarily in connection with leasehold improvements, computers and servers.


iQIYI, INC.

Reconciliations of Non-GAAP Financial Measures to the Nearest Comparable GAAP Measures

(Amounts in thousands of Renminbi (“RMB”), except for per ADS information, unaudited)

 

     Three Months Ended  
     June 30,
2022
    March 31,
2023
    June 30,
2023
 
     RMB     RMB     RMB  

Operating income

     125,787       858,631       610,392  

Add: Share-based compensation expenses

     201,521       169,046       169,380  

Add: Amortization and impairment of intangible assets(1)

     16,498       6,619       6,619  
  

 

 

   

 

 

   

 

 

 

Operating income (non-GAAP)

     343,806       1,034,296       786,391  
  

 

 

   

 

 

   

 

 

 

Net (loss)/income attributable to iQIYI, Inc.

     (213,995     618,109       365,207  

Add: Share-based compensation expenses

     201,521       169,046       169,380  

Add: Amortization and impairment of intangible assets(1)

     16,498       6,619       6,619  

Add: Disposal gain

     —         —         (89,571

Add: Impairment of long-term investments

     11,000       118,984       155,011  

Add: Fair value loss/(gain) of long-term investments

     1,760       9,445       (3,550

Add: Reconciling items on equity method investments(2)

     59,615       18,351       (8,895

Add: Tax effects on non-GAAP adjustments(3)

     1,854       (1,021     462  
  

 

 

   

 

 

   

 

 

 

Net income attributable to iQIYI, Inc. (non-GAAP)

     78,253       939,533       594,663  
  

 

 

   

 

 

   

 

 

 

Diluted net (loss)/income per ADS

     (0.28     0.64       0.37  

Add: Non-GAAP adjustments to earnings per ADS

     0.38       0.33       0.24  
  

 

 

   

 

 

   

 

 

 

Diluted net income per ADS (non-GAAP)

     0.10       0.97       0.61  
  

 

 

   

 

 

   

 

 

 

 

(1)

This represents amortization and impairment of intangible assets resulting from business combinations.

(2)

This represents iQIYI’s share of equity method investments for other non-GAAP reconciling items, primarily amortization and impairment of intangible assets not on the investee’s books, accretion of their redeemable noncontrolling interests, and the gain or loss associated with the issuance of shares by the investees at a price higher or lower than the carrying value per shares.

(3)

This represents tax impact of all relevant non-GAAP adjustments.


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