Core Viewpoint - iQIYI reported a total revenue of 6.63 billion yuan for Q2, a year-on-year decline of 11%, with a net loss of 133.7 million yuan compared to a net profit of 68.7 million yuan in the same period last year [1] Revenue Breakdown - Membership service revenue was 4.09 billion yuan, down 9% year-on-year due to reduced content compared to the previous year [1] - Online advertising service revenue was 1.27 billion yuan, down 13% year-on-year, influenced by macroeconomic pressures on advertisers [1] - Content distribution revenue was 436.6 million yuan, down 37% year-on-year due to a decrease in barter and cash transactions [1] - Other revenue increased by 6% year-on-year to 829.3 million yuan [1] Cost Management - Revenue cost was 5.29 billion yuan, down 7% year-on-year [2] - Content cost was 3.78 billion yuan, down 8% year-on-year, attributed to a decrease in content supply [2] Policy Impact - The "Broadcasting 21 Articles" policy is expected to shorten the production and review cycle of content, enhance creative flexibility, and improve collaboration between internet video platforms and TV stations [2][3] - The policy aims to attract more talent and investment into content production, promoting healthy industry growth [2] Content Performance - iQIYI's self-produced dramas and micro-dramas performed well during the summer season, with several shows achieving high popularity ratings [4] - The box office for the film "Chasing the Wind" exceeded 300 million yuan, with projections suggesting total box office could surpass 1 billion yuan [4] IP Development - iQIYI is expanding its IP derivative business, including self-managed IP consumer products and offline experience businesses [6] - The company plans to establish more iQIYI parks, with 1-2 additional locations expected to be confirmed by the end of the year [6]