Core Viewpoint - iQIYI's net profit decline is attributed to the traditional off-season in Q2 and the number of hit shows available on the platform, reflecting unprecedented pressure on long-video platforms due to the rise of short videos and fragmented user attention [1][2] Financial Performance - iQIYI reported total revenue of 6.63 billion yuan for Q2 2025, a year-on-year decline of 11% [1] - The net loss attributable to iQIYI was 133.7 million yuan, compared to a net profit of 68.7 million yuan in the same period last year [1] - Non-GAAP net profit was 14.7 million yuan, down from 246.9 million yuan year-on-year [1] - Membership service revenue was 4.09 billion yuan, down 9% year-on-year due to reduced content inventory [1] - Online advertising service revenue was 1.27 billion yuan, down 13% due to macroeconomic pressures affecting advertisers [1] - Content distribution revenue fell by 37% to 440 million yuan, while other revenue increased by 6% to 830 million yuan [1] Cost Management - iQIYI achieved a total cost of 5.29 billion yuan, a year-on-year decrease of 7% [2] - Content costs were 3.78 billion yuan, down 8% year-on-year [2] - Sales and management expenses and R&D expenses were 960 million yuan and 420 million yuan, respectively, also showing declines [2] - Non-GAAP operating profit for Q2 was 58.7 million yuan, marking the 14th consecutive quarter of Non-GAAP operating profitability [2] Content Strategy - iQIYI plans to focus on high-commercial-value long dramas while pursuing a premium route for micro-dramas to attract more users [3] - The company aims to explore external distribution, commercial placements, and IP derivatives as part of its monetization strategy [3] - iQIYI's self-produced micro-dramas have a content reserve of 15,000 episodes [2][3] Regulatory Environment - Recent policies from the National Radio and Television Administration are expected to enhance content supply by shortening production and review cycles, allowing for more flexible content creation [2][3] Capital Movements - iQIYI is reportedly planning to raise approximately 200 to 300 million USD for a secondary listing in Hong Kong, having engaged several investment banks for this purpose [3] Cash Position - As of June 30, 2025, iQIYI had cash and cash equivalents totaling 5.06 billion yuan [4]