iQIYI(US:IQ) Chang Jiang Shang Bao·2025-08-21 23:53Core Viewpoint - iQIYI is facing significant financial challenges, reporting a revenue decline and a return to net losses, while also planning a secondary listing in Hong Kong to raise funds for future growth [1][4][6]. Financial Performance - In Q2, iQIYI's total revenue was 6.63 billion yuan, a year-on-year decrease of 11% [1][4]. - The company reported a net loss of 134 million yuan, compared to a net profit of 68.7 million yuan in the same period last year [1][4]. - Membership service revenue was 4.09 billion yuan, down 9%, while online advertising revenue fell 13% to 1.27 billion yuan [4]. - Non-GAAP operating profit was 587 million yuan, with a Non-GAAP net profit of 147 million yuan, maintaining profitability for 14 consecutive quarters [4]. Market Position and Content Strategy - iQIYI's market share in the film sector has remained the highest for 14 consecutive quarters, with notable successes in both long and short content [5]. - The company is focusing on innovative content creation, particularly in dramas and variety shows, to enhance user engagement [5][8]. - iQIYI's international membership and revenue have reached new highs, indicating growth in overseas markets [4]. Secondary Listing Plans - iQIYI is reportedly planning a secondary listing in Hong Kong, aiming to raise approximately 200 to 300 million USD [6][7]. - The company has engaged major investment banks to assist with the listing process, with an application expected in Q3 and a target completion date before the Lunar New Year in 2026 [6][7]. - This move is seen as a necessary step for capital replenishment and strategic adjustment in response to the evolving market landscape [12]. Historical Context - iQIYI was listed on NASDAQ in 2018, reaching a market value of 44.5 billion USD shortly after [2][9]. - Currently, its market value has plummeted to around 2.2 billion USD, representing a 95% decline and a loss of over 300 billion yuan in market capitalization [3][12]. - The company had previously considered a Hong Kong listing in 2021, but that plan did not materialize [9][10].