iQIYI(US:IQ) Ge Long Hui·2025-08-20 09:33Core Insights - iQIYI reported total revenue of 6.63 billion RMB for Q2, with membership services contributing 4.09 billion RMB, online advertising services 1.27 billion RMB, content distribution 440 million RMB, and other revenues 830 million RMB [1][5] - The company maintained Non-GAAP operating profit of 58.7 million RMB for the 14th consecutive quarter, while net profit attributable to iQIYI was 14.7 million RMB [1][5] - iQIYI's CEO emphasized the focus on innovative content and AI applications to drive sustainable long-term growth [1] Revenue Breakdown - Membership services accounted for the largest share of revenue at 40.9 billion RMB, followed by online advertising at 12.7 billion RMB, content distribution at 4.4 billion RMB, and other income at 8.3 billion RMB [1] - The total cost for the quarter was 5.29 billion RMB, a 7% decrease year-over-year, with content costs being the largest component at 3.78 billion RMB [5] Content Performance - iQIYI's original micro-dramas saw significant success, with titles like "Chasing Love" and "What is the Body" achieving high popularity, and the first IP adaptation micro-drama "What is the Body" setting a new record with a peak content heat value of 5,500 [3] - The company has a content reserve of approximately 15,000 micro-dramas, indicating a strong pipeline for future releases [3] Financial Management - The CFO highlighted effective resource management and optimization of capital structure, resulting in a continuous decline in net interest expenses for seven consecutive quarters [1] - As of June 30, 2025, iQIYI's cash balance totaled 5.06 billion RMB, including cash, cash equivalents, and short-term investments [5]