BEIJING, July 22, 2025 (GLOBE NEWSWIRE) -- iQIYI, Inc. (NASDAQ: IQ) ("iQIYI" or the "Company"), a leading provider of online entertainment video services in China, today announced that it will report its financial results for the second quarter ended June 30, 2025 before the U.S. market opens on August 20, 2025. Participant Online Registration: https://s1.c-conf.com/diamondpass/10049037-erdm7c.html It will automatically direct you to the registration page of "iQIYI Second Quarter 2025 Earnings Conference Ca ...

Core Insights - BilibiliWorld 2025 has officially opened, marking the largest ACGN comprehensive exhibition in Asia [1] - The exhibition features a total exhibition area of 240,000 square meters, over 700 exhibitors, and more than 1,000 global guest creators participating [1] - The event is expected to attract a total of 300,000 attendees over three days, indicating strong interest and engagement [1] - The first round of ticket sales sold out in 35 seconds, while the second round sold out in just 6 seconds, showcasing high demand [1]

Investment Rating - The report assigns an "Attractive" investment rating to the China Internet and Other Services industry, specifically focusing on Entertainment and OTAs [1]. Core Insights - The report highlights a sharp recovery in the gaming sector, particularly driven by PC games, with a low base effect expected to end in Q3 2025 [5]. - The gaming revenue forecast indicates a significant year-on-year growth, with PC games grossing expected to reach Rmb 39,471 million in FY25, reflecting a 54% growth from the previous year [14]. - The report emphasizes the importance of new game releases and the expansion of mobile and PC gaming as key drivers for revenue growth [12][14]. Summary by Sections Online Entertainment - The gaming industry is experiencing a recovery, with a notable increase in PC game contributions [6]. - The report provides a detailed game pipeline for NetEase, showcasing upcoming titles that are expected to enhance revenue streams [12]. Revenue Forecasts - Total game revenue is projected to grow significantly, with mobile games grossing expected to stabilize around Rmb 56,800 million in FY25, showing a 0% growth year-on-year [14]. - The report outlines specific revenue forecasts for various game titles, indicating a diverse portfolio that supports revenue stability [14]. Market Share - The report analyzes the market share of major players in the gaming industry, with Tencent and NetEase being the leading companies [11]. - It highlights the competitive landscape and the potential for market share shifts as new games are released [10]. Financial Performance - Non-GAAP net profit margins are expected to improve, driven by effective cost management and revenue growth strategies [16][46]. - The report indicates a strong capital return strategy, with buybacks and dividends projected to increase over the coming years [21]. OTA Sector - The report notes that Trip.com is positioned for solid profit growth in its core OTA business, with revenue expected to grow 14% year-on-year in 2025 [98]. - The analysis of the overseas total addressable market (TAM) presents significant opportunities for growth in international travel services [89].

Core Insights - iQIYI has partnered with CGModel.com to exclusively license and commercialize premium 3D digital asset packs, enhancing the commercialization and efficiency of digital assets in China's entertainment industry [1][2] - The initial digital asset pack, "Tang Dynasty Architecture - Luoyang City," includes over 40 high-fidelity models that authentically recreate Tang Dynasty architecture [1][2] - iQIYI aims to expand its Digital Asset Library, which currently contains over 10,000 digital assets, to meet the growing demand for cross-scenario asset reuse in content production [4] Industry Trends - The market for high-fidelity, photorealistic digital assets is experiencing significant growth due to the widespread adoption of virtual production technologies and increasing demand for diverse content creation across gaming, VR/AR, and other applications [3] - Reusable, high-quality digital assets can significantly reduce workloads in both pre- and post-production workflows, leading to improved production efficiency [3] - iQIYI has established itself as a leader in investing in and scaling virtual production, successfully implementing processes for reusing digital assets across multiple commercial scenarios [3] Company Developments - iQIYI's Digital Asset Library integrates traditional 3D techniques with advanced technologies like AI and 3D scanning, expanding asset development capabilities [4] - The effectiveness of the Digital Asset Library has been demonstrated in iQIYI's original productions, which have benefited from shorter production cycles [5] - Notable productions, such as "Southern Anecdote" and "Fangs of Fortune," have utilized the Digital Asset Library, showcasing its impact on production efficiency and immersive experiences [5]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $494 million, with non-live streaming revenue reaching $123 million, a year-over-year increase of 25.3% [8][29] - Non-GAAP operating profit was $31 million, reflecting a year-over-year increase of 25% [9][35] - Operating cash flow was strong at $58 million, with dividends distributed amounting to approximately $49.1 million and share repurchases of about $22.5 million [9][36] Business Line Data and Key Metrics Changes - Live streaming revenue was $351.3 million, with Bigo contributing $352 million, aligning with expectations [30] - Non-live streaming revenue accounted for 24.9% of total group revenues, up from 17.4% in the same period last year [31] - Bigo's non-live streaming revenues, primarily from advertising, increased by 27.3% year-over-year to $80.3 million [32] Market Data and Key Metrics Changes - In developed countries, live streaming revenue increased, with North America seeing a 7% year-over-year growth in MAUs [16] - The Middle East market remains a strategic priority due to strong monetization potential and high engagement [18] - Bigo achieved approximately $18 million in advertising revenue, a year-over-year growth of about 27% [20] Company Strategy and Development Direction - The company is focusing on diversifying its revenue streams, with non-live streaming businesses expected to become a second growth engine [12][26] - A multi-agent approach is being adopted to establish a sustainable long-term growth roadmap [12] - The advertising platform, Bigo Ads, is being enhanced through AI technologies to improve targeting and ROI for advertisers [23][24] Management's Comments on Operating Environment and Future Outlook - Management anticipates stabilization in live streaming revenue starting in Q2 2025, with positive quarter-over-quarter growth expected [45] - Non-live streaming businesses are projected to accelerate revenue growth in the second half of the year [46] - The company remains committed to delivering sustainable, profitable growth and long-term value for shareholders [38][62] Other Important Information - The company has a healthy balance sheet with a strong net cash position of $3.4 billion as of March 31, 2025 [36] - Shareholder returns are a key component of the capital allocation strategy, with consistent dividends and share repurchases [37][60] Q&A Session Summary Question: Can management comment on the overall monetization trend in the second half, particularly for Bigo Life? - Management expects live streaming revenue to stabilize and resume positive growth in Q2, driven by high-quality user acquisition strategies [45] Question: What are the trends in operating expenses and margin outlook for 2025? - Management noted improvements in gross margins for both Bigo and other segments, with expectations for continued positive trends in operating profit for the full year [48] Question: Can management share updates on new initiatives in 2025 and the reasons behind Bigo Ads' accelerating growth? - Management highlighted the need for advertisers to diversify their placement budgets and the advantages of Bigo Ads' extensive user base and AI capabilities for effective targeting [53][56] Question: What are the insights on shareholder return policies and capital return strategies? - Management reiterated the commitment to shareholder returns through dividends and share repurchases, while also focusing on resource allocation to support growth in non-live streaming businesses [60][62]

Core Viewpoint - Bilibili Inc. has successfully completed a US$690 million offering of convertible senior notes due 2030 and a concurrent offering of Class Z ordinary shares, aiming to enhance its content ecosystem and improve monetization efficiency [1][5]. Notes Offering - The offering included US$690 million in convertible senior notes, with an additional US$90 million purchased by initial purchasers [1] - The notes are senior, unsecured obligations maturing on June 1, 2030, with a conversion rate of 42.1747 Class Z ordinary shares per US$1,000 principal amount [3] - The initial conversion price is approximately HK$185.63 per Class Z ordinary share, representing a 27.1% premium over the closing price of HK$146.00 on May 21, 2025 [3] Interest and Use of Proceeds - The notes will bear an interest rate of 0.625% per year, payable semiannually starting December 1, 2025 [4] - Net proceeds from the offering will be used to enhance the content ecosystem, facilitate user growth, improve monetization efficiency, fund share repurchases, and for general corporate purposes [5] Concurrent Delta Offering - Bilibili completed a concurrent offering of 10,281,240 Class Z ordinary shares at HK$140.10 per share, borrowed from non-affiliate third parties [7] - The offering facilitated hedging transactions for investors subscribing to the notes, allowing them to establish short positions [7] - The company repurchased 5,588,140 Class Z ordinary shares for approximately HK$782.9 million as part of its share repurchase program [10]

Core Viewpoint - The company reported a decline in revenue and net profit for 2024, attributed to a weak film market performance, but showed resilience in online ticketing services and content distribution capabilities [1][2]. Group 1: Financial Performance - The company achieved a revenue of 4.082 billion yuan in 2024, representing a year-over-year decline of 14.2%, with an adjusted net profit of 310 million yuan [1]. - The company announced a dividend of 0.32 HKD per share and a dividend plan for 2025-2027, targeting to distribute no less than 20% of the fiscal year's net profit [1]. Group 2: Market Performance - The overall film market in China saw a total box office of 42.502 billion yuan in 2024, down 23% year-over-year, with total audience attendance decreasing by 22% to 1.01 billion [1]. - The company's online entertainment ticketing service revenue fell by 14.9% to 1.922 billion yuan, although this decline was less severe than the overall film market, benefiting from increased market share and rapid growth in live entertainment revenue [1]. Group 3: Content and Distribution - The company participated in 63 domestic films released in 2024, achieving a cumulative box office of approximately 23.2 billion yuan, marking a historical high in both the number of films and market coverage [2]. - The company maintained strong content distribution capabilities, with six of the top ten domestic films in 2024 under its control, including the successful release of "Detective Chinatown 1900" during the Spring Festival [2]. - The company has a rich content pipeline for 2025, including films like "The Lychee of Chang'an" and "Dumpling Queen," which are expected to be released within the year [2]. Group 4: Profit Forecast - The company forecasts adjusted net profits of 652 million yuan, 860 million yuan, and 938 million yuan for 2025-2027, reflecting year-over-year growth rates of 111%, 32%, and 9% respectively, maintaining a "buy" rating [2].

Core Viewpoint - Bilibili Inc. has announced a Concurrent Delta Offering of its Class Z ordinary shares and an upsized offering of US$600 million in convertible senior notes due 2030, reflecting the company's strategic financial maneuvers to support its growth and investor confidence [1][2][4]. Group 1: Offering Details - The Concurrent Delta Offering involves 10,281,240 Class Z ordinary shares priced at HK$140.10 per share, with no new shares being issued, and the company will not receive any proceeds from this offering [3]. - The Notes Offering consists of US$600 million in aggregate principal amount of convertible senior notes, with an option for initial purchasers to buy an additional US$90 million [2][3]. - The Concurrent Delta Offering and the Notes Offering are contingent upon each other, indicating a strategic linkage between the two financial activities [3]. Group 2: Purpose and Strategy - Proceeds from the Notes Offering will be partially used for a Concurrent Repurchase, allowing investors to establish short positions in Class Z ordinary shares to hedge market risk [4]. - The Concurrent Repurchase reflects the company's confidence in its long-term strategy and growth, as repurchased shares will be cancelled [4]. Group 3: Company Background - Bilibili is a leading video community in China, targeting young generations with a mission to enrich their everyday lives through diverse video content [9]. - The company is known for its innovative "bullet chatting" feature, enhancing user engagement by allowing real-time comments during video viewing [9].

Core Viewpoint - Bilibili Inc. has announced the pricing of its upsized offering of US$600 million in convertible senior notes due 2030, aimed at enhancing its content ecosystem and improving monetization efficiency [1][2]. Group 1: Notes Offering Details - The Notes Offering consists of US$600 million in aggregate principal amount, with an option for initial purchasers to buy an additional US$90 million within 30 days [1]. - The Notes will mature on June 1, 2030, and holders can convert them into Class Z ordinary shares at an initial conversion rate of 42.1747 shares per US$1,000 principal amount, representing a conversion premium of approximately 27.1% above the closing price of HK$146.00 on May 21, 2025 [3]. - The Notes will bear interest at a rate of 0.625% per year, payable semiannually starting December 1, 2025 [5]. Group 2: Use of Proceeds - The net proceeds from the Notes Offering will be used to enhance the content ecosystem, facilitate user growth, improve monetization efficiency, fund share repurchases, and for general corporate purposes [2]. - Part of the proceeds will also be allocated for a Concurrent Repurchase, allowing investors to establish initial short positions in Class Z ordinary shares [8]. Group 3: Concurrent Delta Offering - Bilibili has priced a concurrent offering of 10,281,240 Class Z ordinary shares at HK$140.10 per share, which will be borrowed from non-affiliate third parties [6]. - The Concurrent Delta Offering is designed to facilitate hedging transactions for investors subscribing to the Notes, employing a convertible arbitrage strategy [6][7]. Group 4: Redemption and Conversion Terms - The Company may redeem the Notes for cash starting June 6, 2028, if the last reported sale price of Class Z ordinary shares is at least 130% of the conversion price for 20 trading days [4]. - Holders can require the Company to repurchase their Notes for cash on June 1, 2028, or upon certain fundamental changes [4].

Core Viewpoint - iQIYI reported a solid first quarter for 2025, with total revenues and operating income showing sequential growth, although year-over-year comparisons indicate a decline in key financial metrics [3][6]. Financial Highlights - Total revenues for Q1 2025 were RMB 7.19 billion (approximately US$990.3 million), a decrease of 9% year-over-year [6][7]. - Operating income was RMB 341.9 million (US$47.1 million), with an operating income margin of 5%, down from 12% in the same period of 2024 [6][12]. - Non-GAAP operating income was RMB 458.5 million (US$63.2 million), with a margin of 6%, compared to 14% in Q1 2024 [6][12]. - Net income attributable to iQIYI was RMB 182.1 million (US$25.1 million), a significant drop from RMB 655.3 million in Q1 2024 [6][14]. - Non-GAAP net income attributable to iQIYI was RMB 304.4 million (US$42.0 million), down from RMB 844.3 million in the same period last year [6][15]. Revenue Breakdown - Membership services revenue was RMB 4.40 billion (US$606.2 million), an 8% decrease year-over-year, attributed to a lighter content slate [7]. - Online advertising services revenue was RMB 1.33 billion (US$183.0 million), down 10% year-over-year, primarily due to a decline in brand advertising [8]. - Content distribution revenue fell by 32% year-over-year to RMB 628.7 million (US$86.6 million), mainly due to reduced revenue from drama series [9]. - Other revenues increased by 16% year-over-year to RMB 830.9 million (US$114.5 million), driven by growth in certain business lines [9]. Cost and Expenses - Cost of revenues was RMB 5.41 billion (US$745.0 million), a decrease of 4% year-over-year, with content costs at RMB 3.79 billion (US$522.5 million), down 7% [10]. - Selling, general and administrative expenses rose by 11% year-over-year to RMB 1.03 billion (US$141.4 million), primarily due to increased marketing spending [11]. - Research and development expenses decreased by 4% year-over-year to RMB 412.5 million (US$56.8 million) [11]. Cash Flow and Balance Sheet - Net cash provided by operating activities was RMB 339.0 million (US$46.7 million), down from RMB 937.8 million in Q1 2024 [16]. - Free cash flow was RMB 307.7 million (US$42.4 million), compared to RMB 915.3 million in the same period last year [16]. - As of March 31, 2025, the company had cash and cash equivalents totaling RMB 5.70 billion (US$786.1 million) [17].