Core Insights - The 2025 Beijing Cultural Forum's Cultural Industry Investors Conference was held on September 24, where several cultural projects, including "iQIYI Paradise" in Wangfujing, were successfully signed [1] Company Developments - iQIYI has partnered with Beijing Wangfujing Joy Shopping Center to create the "iQIYI Paradise," marking its third theme park signing in 2023 after projects in Yangzhou and Kaifeng [2] - The iQIYI Paradise aims to integrate Chinese film and television IP with cutting-edge digital technology, providing an immersive entertainment experience [2][3] - iQIYI's strategy focuses on "IP full-scenario development" as a response to declining membership and advertising revenues, seeking a "second growth curve" [2] Industry Trends - The theme park market in China reached a scale of 47.1 billion yuan in 2023, reflecting a year-on-year growth of 23.5% [3] - The trend of light-asset operations in theme parks is gaining traction, allowing companies like iQIYI to avoid heavy capital burdens while focusing on content and operational support [3]

Core Viewpoint - iQIYI is solidifying its long-term competitiveness through diversified business layouts as competition in the long video industry intensifies [1][2]. Financial Performance - In Q2 2025, iQIYI reported total revenue of 6.63 billion RMB, with Non-GAAP operating profit of 58.7 million RMB and Non-GAAP net profit of 14.7 million RMB, maintaining Non-GAAP operating profitability for 14 consecutive quarters [1]. - Revenue breakdown includes membership services at 4.09 billion RMB, online advertising services at 1.27 billion RMB, content distribution at 440 million RMB, and other income at 830 million RMB, indicating a continuous optimization of revenue structure [1]. Content Strategy - iQIYI continues to lead in the long video sector, ensuring a stable output of high-quality content, with a total market share in drama series leading the industry for four consecutive quarters [4]. - Popular series such as "Linjiang Xian," "Chao Xue Lu," and "Sheng Wan Wu" have achieved high engagement, reinforcing iQIYI's advantage in female and realistic themes [4][7]. - The platform has also made significant strides in micro-drama content, with a daily average viewing time and unique visitors showing double-digit growth quarter-over-quarter [8][9]. IP Development - iQIYI's IP ecosystem is maturing, with a focus on monetizing IP through various channels, including merchandise and experiential offerings [12][14]. - The self-operated film card business achieved a GMV exceeding 100 million RMB in the first half of the year, with significant sales from titles like "Huai Shui Zhu Ting" and "Linjiang Xian" [15]. - The company aims to enhance its design and craftsmanship capabilities in the IP consumer goods market, which is projected to reach 35.1 billion RMB by 2027, with a compound annual growth rate of 25.4% [15]. International Expansion - iQIYI's international version has seen membership revenue and scale grow for eight consecutive quarters, with a 35% year-over-year increase in revenue [13]. - Key markets such as Brazil, Mexico, and Indonesia have reported over 80% year-over-year growth in membership revenue [13]. Experiential Business - iQIYI is expanding its offline experience business, including "Full Sensory Theaters" and "iQIYI Parks," which integrate IP experiences and merchandise sales [17][25]. - The company currently operates over 50 Full Sensory Theater locations across approximately 30 cities and plans to establish additional parks [25]. Future Outlook - By leveraging AI to enhance content production and activating IP monetization potential through experiential business, iQIYI aims to transition from a "traffic platform" to an "ecosystem platform" [26].

Core Insights - iQIYI reported a significant growth in its self-operated film and television card business, achieving a GMV exceeding 100 million yuan in the first half of the year, with record sales from popular dramas "Huai Shui Zhu Ting" and "Lin Jiang Xian" [1][10] - The company is expanding its offline experience business, with plans for new iQIYI parks in Yangzhou and Kaifeng, aiming to confirm 1-2 additional locations by the end of the year [1][10] Financial Performance - For Q2 2025, iQIYI's total revenue reached 6.63 billion yuan, with membership service revenue at 4.09 billion yuan, online advertising service revenue at 1.27 billion yuan, content distribution revenue at 440 million yuan, and other revenue at 830 million yuan [11] - The company maintained a Non-GAAP operating profit of 58.7 million yuan for the quarter, marking 14 consecutive quarters of Non-GAAP operating profitability [11] Industry Trends - The Chinese IP consumer goods market is experiencing explosive growth, with the market size projected to expand from 99.4 billion yuan in 2020 to 202.5 billion yuan by 2025 [10] - The card market, as a significant derivative category, is expected to reach 35.1 billion yuan by 2027, with an annual compound growth rate of 25.4% [10] - iQIYI is leveraging its strong IP reserves and channel capabilities to enhance its product design and craftsmanship, aiming to develop a sustainable portfolio of IP characters for long-term revenue generation [9][10]