Form 6-K












PURSUANT TO RULE 13a-16 OR 15d-16


For the month of May 2019

Commission File Number: 001-38431



iQIYI, Inc.



9/F, iQIYI Innovation Building

No. 2 Haidian North First Street, Haidian District, Beijing 100080

People’s Republic of China

Tel: +86 10 6267-7171

(Address of principal executive offices)



Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F  ☒            Form 40-F  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ☐





Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


iQIYI, Inc.

/s/ Xiaodong Wang

Name:   Xiaodong Wang
Title:   Chief Financial Officer

Date: May 20, 2019

Exhibit Index

Exhibit 99.1—Press Release


Exhibit 99.1

iQIYI Announces First Quarter 2019 Financial Results

BEIJING, May 16, 2019 – iQIYI, Inc. (NASDAQ: IQ) (“iQIYI” or the “Company”), an innovative market-leading online entertainment service in China, today announced its unaudited financial results for the first quarter ended March 31, 2019.

First Quarter 2019 Highlights



Total revenues were RMB7.0 billion (US$1.0 billion1), representing a 43% increase from the same period in 2018.



Operating loss was RMB2.0 billion (US$301.9 million) and operating loss margin was 29%, compared to operating loss of RMB1.1 billion and operating loss margin of 22% in the same period in 2018.



Net loss attributable to iQIYI was RMB1.8 billion (US$270.3 million), compared to net loss attributable to iQIYI of RMB395.7 million in the same period in 2018. Diluted net loss attributable to iQIYI per ADS was RMB2.52 (US$0.35).



The number of total subscribing members was 96.8 million as of March 31, 2019, 98.6% of whom were paying subscribing members. This compares to 61.3 million of total subscribing members as of March 31, 2018, up 58% year over year.

“We started off 2019 with a solid quarter of results, especially in membership business driven by our rapidly growing subscriber base of 96.8 million at quarter end,” commented Dr. Yu Gong, Founder, Director and Chief Executive Officer of iQIYI. “We further strengthened our platform and continued to take the lead in China’s internet video streaming industry in terms of various 3rd-party tracking metrics. Our strategy remains focused on producing high quality original content and refining our IP-centered content ecosystem which will be the key drivers for our future growth. As China’s online entertainment industry is entering a new phase of growth, we believe we are well-positioned to capture the enormous opportunities for us in the years to come.”

“We delivered another quarter of decent top-line growth with total revenues increasing 43% year-over-year to RMB7.0 billion,” commented Mr. Xiaodong Wang, Chief Financial Officer of iQIYI. “Membership business again spearheaded the growth in the quarter, reflecting the strength and popularity of our vast library of premium content. We also continued to broaden and diversify our revenue streams by fully leveraging the IP value of our original content. As 2019 unfolds, we will continue to build and invest in our content ecosystem which is the foundation for us to achieve long-term sustainable growth.”




This announcement contains translations of certain RMB amounts into U.S. dollars at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB6.7112 to US$1.00, the effective noon buying rate as of March 29, 2019, in The City of New York for cable transfers of RMB as certified for customs purposes by the Federal Reserve Bank of New York.

First Quarter 2019 Financial Results

Total revenues reached RMB7.0 billion (US$1.0 billion), representing a 43% increase from the same period in 2018.

Membership services revenue was RMB3.4 billion (US$513.4 million), representing a 64% increase from the same period in 2018. The increase resulted from the strong growth in the number of subscribing members, driven by our premium content as well as various operational initiatives during the quarter.

Online advertising services revenue was RMB2.1 billion (US$315.8 million), flat compared to the same period in 2018 due to the challenging macroeconomic environment in China and slower-than-expected recovery of our in-feed advertising.

Content distribution revenue was RMB442.6 million (US$66.0 million), representing a 66% increase from the same period in 2018. The strong growth was primarily attributable to a number of premium content titles that we distributed during the quarter.

Other revenues were RMB982.5 million (US$146.4 million), representing a 143% increase from the same period in 2018. The increase was driven by strong performance across various vertical business lines, especially the robust growth of our game business after the acquisition of Skymoons, which launched several successful games during the quarter.

Cost of revenues was RMB7.3 billion (US$1.1 billion), representing a 50% increase from the same period in 2018. The increase was primarily driven by higher content costs as well as other cost items. Content costs as a component of cost of revenues were RMB5.3 billion (US$793.9 million), representing a 38% increase from the same period in 2018.

Selling, general and administrative expenses were RMB1.1 billion (US$170.0 million), representing a 62% increase from the same period in 2018. This was primarily due to increased share-based compensation expenses and marketing spending on game business associated with the consolidation of Skymoons.

Research and development expenses were RMB598.1 million (US$89.1 million), representing a 54% increase from the same period in 2018, primarily due to the increase of personnel-related compensation expenses.

Operating loss was RMB2.0 billion (US$301.9 million), compared to operating loss of RMB1.1 billion in the same period in 2018. Operating loss margin was 29%, compared to operating loss margin of 22% in the same period in 2018.

Total other income was RMB211.1 million (US$31.5 million), compared to total other income of RMB666.2 million during the same period of 2018. The majority of the year-over-year variance was due to the fair value gain we recognized in the first quarter of 2018 arising from our private company equity investments. The remaining variance came from less foreign exchange gain we recognized this quarter due to the fluctuation of exchange rate between Renminbi and the U.S. dollar, as well as increased interest expenses associated with our financing activities.

Loss before income taxes was RMB1.8 billion (US$270.4 million), compared to loss before income taxes of RMB396.2 million in the same period in 2018.

Income tax expense was RMB7.4 million (US$1.1 million), compared to income tax expense of RMB0.5 million in the same period in 2018.

Net loss attributable to iQIYI was RMB1.8 billion (US$270.3 million), compared to net loss attributable to iQIYI of RMB395.7 million in the same period in 2018. Diluted net loss attributable to iQIYI per ADS was RMB2.52 (US$0.35) for the first quarter of 2019.

As of March 31, 2019, the Company had cash, cash equivalents, restricted cash and short-term investments of RMB17.9 billion (US$2.7 billion). In March 2019, we closed the offering of US$1.2 billion in aggregate principal amount of convertible senior notes, and received aggregate net proceeds of approximately US$1,178.2 million after deducting discounts and commissions and offering expenses from the offering.

Financial Guidance

For the second quarter of 2019, iQIYI expects total net revenues to be between RMB6.91 billion (US$1.0 billion) and RMB7.29 billion (US$1.1 billion), representing a 12% to 18% increase from the same period in 2018. This forecast reflects iQIYI’s current and preliminary view, which is subject to substantial uncertainty.

Conference Call Information

iQIYI’s management will hold an earnings conference call at 8:00 PM on May 16, 2019, U.S. Eastern Time (8:00 AM on May 17, 2019, Beijing/Hong Kong Time). Dial-in details for the earnings conference call are as follows:


International    +65 67135090
China    4006 208038
US    +1 845 675 0437
UK    +44 2036 214779
Hong Kong    +852 3018 6771
Passcode:    6672348

A telephone replay of the call will be available two hours after the conclusion of the conference call through May 24, 2019.

Dial-in numbers for the replay are as follows:


International Dial-in    +61 2 8199 0299
Passcode:    6672348

A live and archived webcast of this conference call will be available at

About iQIYI, Inc.

iQIYI, Inc. is an innovative market-leading online entertainment service in China. Its corporate DNA combines creative talent with technology, fostering an environment for continuous innovation and the production of blockbuster content. iQIYI’s platform features highly popular original content, as well as a comprehensive library of other professionally-produced content, partner-generated content and user-generated content. The Company distinguishes itself in the online entertainment industry by its leading technology platform powered by advanced AI, big data analytics and other core proprietary technologies. iQIYI attracts a massive user base with tremendous user engagement, and has developed a diversified monetization model including membership services, online advertising services, content distribution, live broadcasting, online games, IP licensing, online literature and e-commerce etc.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. Among other things, the Financial Guidance and quotations from management in this announcement, as well as iQIYI’s strategic and operational plans, contain forward-looking statements. iQIYI may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about iQIYI’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: iQIYI’s strategies; iQIYI’s future business development, financial condition and results of operations; iQIYI’s ability to retain and increase the number of users, members and advertising customers, and expand its service offerings; competition in the online entertainment industry; changes in iQIYI’s revenues, costs or expenditures; Chinese governmental policies and regulations relating to the online entertainment industry, general economic and business conditions globally and in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company’s filings with the Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of the press release, and iQIYI undertakes no duty to update such information, except as required under applicable law.

For more information, please contact:

Investor Relations

iQIYI, Inc.

+ 86 10 8264 6585


Condensed Consolidated Statements of Income

(In RMB thousands, except for number of shares and per share data)


     Three Months Ended  
     March 31,
    December 31,
    March 31,
     RMB     RMB     RMB  
     (Unaudited)     (Unaudited)     (Unaudited)  



Membership services

     2,094,985       3,200,981       3,445,343  

Online advertising services

     2,110,670       2,203,637       2,119,433  

Content distribution

     266,670       522,038       442,620  


     404,980       1,100,666       982,523  










Total revenues

     4,877,305       7,027,322       6,989,919  










Operating costs and expenses:


Cost of revenues

     (4,848,219     (8,522,761     (7,277,196

Selling, general and administrative

     (704,237     (1,221,681     (1,140,611

Research and development

     (387,329     (607,468     (598,072










Total operating costs and expenses

     (5,939,785     (10,351,910     (9,015,879










Operating loss

     (1,062,480     (3,324,588     (2,025,960










Other expense


Interest income

     4,726       118,025       65,097  

Interest expenses

     (8,325     (61,238     (135,247

Foreign exchange gain/(loss), net

     474,155       (73,836     328,035  

Loss from equity method investments

     (99     (16,016     (34,535

Other income/(expense), net

     195,780       (1,686     (12,224










Total other income /(expense), net

     666,237       (34,751     211,126  










Loss before income taxes

     (396,243     (3,359,339     (1,814,834










Income tax expense

     (509     (79,492     (7,443

Net loss

     (396,752     (3,438,831     (1,822,277










Less: Net (loss) income attributable to noncontrolling interests

     (1,059     37,888       (8,301










Net loss attributable to iQIYI, Inc.

     (395,693     (3,476,719     (1,813,976

Accretion of redeemable convertible preferred shares

     (289,363     —         —    










Net loss attributable to ordinary shareholders

     (685,056     (3,476,719     (1,813,976










Net loss per Class A and Class B ordinary share:



     (1.97     (0.69     (0.36


     (1.97     (0.69     (0.36

Net loss per ADS (1 ADS equals 7 Class A ordinary shares):



     —         (4.83     (2.52


     —         (4.83     (2.52

Weighted average number of Class A and Class B ordinary shares used in net loss per share computation:



     347,381,732       5,069,616,758       5,083,030,810  


     347,381,732       5,069,616,758       5,083,030,810  


Condensed Consolidated Balance Sheets

(In RMB thousands, except for number of shares and per share data)



December 31,

    March 31,  
     2018     2019  
     RMB     RMB  
     (Audited)     (Unaudited)  



Current assets:


Cash and cash equivalents

     4,586,405       11,874,293  

Restricted cash

     2,174,042       2,151,245  

Short-term investments

     6,061,832       3,886,002  

Accounts receivable

     2,889,234       3,021,171  

Prepayments and other assets

     2,696,381       2,928,591  

Amounts due from related parties

     281,710       495,501  

Licensed copyrights, net

     1,163,839       1,261,760  







Total current assets

     19,853,443       25,618,563  







Non-current assets:


Fixed assets, net

     1,618,147       1,746,679  

Long-term investments

     2,572,040       2,568,368  

Deferred tax assets, net

     23,873       23,873  

Licensed copyrights, net

     6,640,910       6,327,855  

Intangible assets, net

     1,678,193       1,559,022  

Produced content, net

     3,736,063       4,213,078  

Prepayments and other assets

     4,695,883       5,151,044  


     3,888,346       3,888,346  

Amounts due from related parties

     52,800       64,800  







Total non-current assets

     24,906,255       25,543,065  







Total assets

     44,759,698       51,161,628  









Current liabilities:


Accounts and notes payable

     10,162,366       10,351,228  

Amounts due to related parties

     692,390       940,117  

Customer advances and deferred revenue

     2,195,283       1,960,719  

Short-term loans

     3,046,449       3,586,155  

Long-term loans, current portion

     83,720       79,066  

Accrued expenses and other liabilities

     3,632,148       3,763,934  







Total current liabilities

     19,812,356       20,681,219  







Non-current liabilities:


Long-term loans

     644,169       651,276  

Convertible senior notes

     4,712,284       11,553,301  

Deferred tax liabilities

     96,405       83,530  

Amounts due to related parties

     1,281,370       1,260,504  

Other non-current liabilities

     57,551       291,001  







Total non-current liabilities

     6,791,779       13,839,612  







Total liabilities

     26,604,135       34,520,831  







Shareholders’ equity:


Class A ordinary shares

     138       140  

Class B ordinary shares

     183       183  

Additional paid-in capital

     39,666,150       40,401,567  

Accumulated deficit

     (23,509,486     (25,323,462

Accumulated other comprehensive income

     1,879,946       1,452,078  

Non-controlling interests

     118,632       110,291  







Total iQIYI, Inc. shareholders’ equity

     18,155,563       16,640,797  







Total liabilities, mezzanine equity and shareholders’ equity

     44,759,698       51,161,628