42%-60% of the number of users to achieve this purpose. In addition, the report believes that iQiyi has exaggerated the costs it paid for content, other assets and acquisitions, and concealed fraud from auditors and investors by burning fake money.
At that time, iQiyi responded in the first time: “With regard to today’s third-party agency’s report questioning iQiyi, the quoted data and conclusions are seriously inconsistent with the actual situation. As a responsible listed company, we All financial and operating data disclosed are true and meet the requirements of the SEC. We resolutely deny all false allegations and reserve the power of legal prosecution.”
Some investors also said that this short report on iQiyi is completely nonsense.
The second quarter loss decreased
On August 13, US Eastern Time, iQiyi announced its unaudited financial report for the second quarter ending June 30, 2020. The financial report shows that in the second quarter of 2020, iQiyi’s total revenue reached 7.4 billion yuan (about 1 billion US dollars), a year-on-year increase of 4%. As of the end of the second quarter, iQiyi’s subscription membership reached 105 million.
In the second quarter of 2020, membership service revenue was RMB 4 billion (approximately US$572.7 million), an increase of 19% over the same period in 2019. The increase was mainly due to the increase in the number of subscription members and the company’s increased monetization of its membership business. The promotion of such operational measures.
Picture source: Photo by every reporter Tan Yuhan
In the second quarter of 2020, iQiyi’s revenue costs dropped by 2% compared to the same period in 2019. Operating losses of 1.3 billion yuan (approximately US$181.4 million) were significantly reduced compared to the first quarter of this year (2.2 billion yuan). The operating loss rate was 17%, and the operating loss rate for the same period in 2019 was 26%.
As of June 30, 2020, iQIYI holds a total of 9.5 billion in cash, cash equivalents, restricted cash and short-term investments