Cover Page
Cover Page | 9 Months Ended |
Sep. 30, 2020 | |
Document Information [Line Items] | |
Document Type | 6-K |
Amendment Flag | false |
Document Period End Date | Sep. 30, 2020 |
Entity Registrant Name | iQIYI, Inc. |
Entity Central Index Key | 0001722608 |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEET ¥ in Thousands, $ in Thousands | Sep. 30, 2020CNY (¥) | Sep. 30, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Current assets: | |||
Cash and cash equivalents | ¥ 3,163,128 | $ 465,878 | ¥ 5,934,742 |
Restricted cash | 655,653 | 96,567 | 974,932 |
Short-term investments | 3,603,891 | 530,796 | 4,579,313 |
Accounts receivable, net of allowance of RMB144,574 and RMB370,027 (US$54,499) as of December 31, 2019 and September 30, 2020, respectively | 3,260,191 | 480,174 | 3,627,749 |
Prepayments and other assets | 3,463,425 | 510,108 | 3,719,228 |
Amounts due from related parties | 169,799 | 25,009 | 211,993 |
Licensed copyrights, net | 1,247,415 | 183,724 | 1,224,881 |
Total current assets | 15,563,502 | 2,292,256 | 20,272,838 |
Non-current assets: | |||
Fixed assets, net | 1,463,733 | 215,585 | 1,754,367 |
Long-term investments | 3,710,782 | 546,539 | 2,982,154 |
Deferred tax assets, net | 66,673 | 9,820 | 34,916 |
Licensed copyrights, net | 6,061,511 | 892,764 | 6,287,330 |
Intangible assets, net | 661,683 | 97,455 | 813,960 |
Produced content, net | 5,517,095 | 812,580 | 4,355,221 |
Prepayments and other assets | 2,711,235 | 399,322 | 3,508,476 |
Operating lease assets | 1,001,648 | 147,527 | 722,742 |
Goodwill | 3,888,346 | 572,691 | 3,888,346 |
Amounts due from related parties | 242,000 | 35,643 | 172,200 |
Total non-current assets | 25,324,706 | 3,729,926 | 24,519,712 |
Total assets | 40,888,208 | 6,022,182 | 44,792,550 |
Current liabilities (including current liabilities of the consolidated VIEs without recourse to the primary beneficiary of RMB12,093,465 and RMB11,646,729 (US$1,715,378) as of December 31, 2019 and September 30, 2020, respectively): | |||
Accounts and notes payable | 7,455,954 | 1,098,143 | 8,212,449 |
Amounts due to related parties | 1,828,085 | 269,248 | 1,604,258 |
Customer advances and deferred revenue | 3,064,785 | 451,394 | 3,081,407 |
Short-term loans | 3,804,396 | 560,327 | 2,618,170 |
Long-term loans, current portion | 733,365 | 108,013 | 736,814 |
Operating lease liabilities, current portion | 197,673 | 29,114 | 125,412 |
Accrued expenses | 2,162,980 | 318,572 | 2,611,217 |
Other liabilities | 1,256,218 | 185,020 | 1,183,439 |
Total current liabilities | 20,503,456 | 3,019,831 | 20,173,166 |
Non-current liabilities (including non-current liabilities of the consolidated VIEs without recourse to the primary beneficiary of RMB1,932,830 and RMB 1,812,912 (US$267,013) as of December 31, 2019 and September 30, 2020, respectively): | |||
Long-term loans | 628,286 | 92,537 | 880,278 |
Convertible senior notes | 12,307,243 | 1,812,661 | 12,296,868 |
Deferred tax liabilities | 13,749 | 2,025 | 30,136 |
Amounts due to related parties | 993,608 | 146,343 | 1,061,883 |
Operating lease liabilities | 757,882 | 111,624 | 402,732 |
Other non-current liabilities | 207,071 | 30,498 | 232,555 |
Total non-current liabilities | 14,907,839 | 2,195,688 | 14,904,452 |
Total liabilities | 35,411,295 | 5,215,519 | 35,077,618 |
Commitments and contingencies | |||
Mezzanine equity | |||
Redeemable noncontrolling interests | 106,802 | 15,730 | 101,542 |
Shareholders' equity: | |||
Additional paid-in capital | 42,464,474 | 6,254,341 | 41,298,328 |
Accumulated deficit | (39,424,412) | (5,806,588) | (33,834,357) |
Accumulated other comprehensive income | 2,274,276 | 334,965 | 2,106,718 |
Noncontrolling interests | 55,444 | 8,166 | 42,376 |
Total shareholders' equity | 5,370,111 | 790,933 | 9,613,390 |
Total liabilities, mezzanine equity and shareholders' equity | 40,888,208 | 6,022,182 | 44,792,550 |
Class A Ordinary Shares | |||
Shareholders' equity: | |||
Ordinary shares, value | 146 | 22 | 142 |
Class B Ordinary Shares | |||
Shareholders' equity: | |||
Ordinary shares, value | ¥ 183 | $ 27 | ¥ 183 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEET (Parenthetical) ¥ in Thousands, $ in Thousands | Sep. 30, 2020CNY (¥)shares | Sep. 30, 2020USD ($)$ / sharesshares | Dec. 31, 2019CNY (¥)shares |
Allowance for doubtful accounts receivable | ¥ 370,027 | $ 54,499 | ¥ 144,574 |
Total current liabilities | 20,503,456 | 3,019,831 | 20,173,166 |
Total non-current liabilities | 14,907,839 | 2,195,688 | 14,904,452 |
VIEs | |||
Total current liabilities | 11,646,729 | 1,715,378 | 12,093,465 |
Total non-current liabilities | ¥ 1,812,912 | $ 267,013 | ¥ 1,932,830 |
Class A Ordinary Shares | |||
Common stock, par value per share | $ / shares | $ 0.00001 | ||
Common stock, shares authorized | 94,000,000,000 | 94,000,000,000 | 94,000,000,000 |
Common stock, shares issued | 2,617,771,642 | 2,617,771,642 | 2,603,890,438 |
Common stock, shares outstanding | 2,318,853,056 | 2,318,853,056 | 2,259,125,125 |
Class B Ordinary Shares | |||
Common stock, par value per share | $ / shares | $ 0.00001 | ||
Common stock, shares authorized | 5,000,000,000 | 5,000,000,000 | 5,000,000,000 |
Common stock, shares issued | 2,876,391,396 | 2,876,391,396 | 2,876,391,396 |
Common stock, shares outstanding | 2,876,391,396 | 2,876,391,396 | 2,876,391,396 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS ¥ in Thousands, $ in Thousands | 9 Months Ended | ||
Sep. 30, 2020CNY (¥)¥ / sharesshares | Sep. 30, 2020USD ($)$ / sharesshares | Sep. 30, 2019CNY (¥)¥ / sharesshares | |
Revenues: | |||
Revenues | ¥ 22,249,035 | $ 3,276,928 | ¥ 21,497,034 |
Operating costs and expenses: | |||
Cost of revenues (including related party amounts of RMB965,944 and RMB827,884 (US$121,935) for the nine months ended September 30, 2019 and 2020, respectively) | (21,099,888) | (3,107,678) | (22,433,904) |
Selling, general and administrative (including related party amounts of RMB2,482 and RMB17,133 (US$2,524) for the nine months ended September 30, 2019 and 2020, respectively) | (3,870,170) | (570,014) | (3,836,478) |
Research and development (including related party amounts of RMB12,085 and RMB7,381 (US$1,087) for the nine months ended September 30, 2019 and 2020, respectively) | (2,012,113) | (296,352) | (1,955,884) |
Total operating costs and expenses | (26,982,171) | (3,974,044) | (28,226,266) |
Operating loss | (4,733,136) | (697,116) | (6,729,232) |
Other income/(expense): | |||
Interest income (including related party amounts of RMB3,596 and RMB1,247 (US$184) for the nine months ended September 30, 2019 and 2020, respectively) | 135,068 | 19,893 | 312,312 |
Interest expenses (including related party amounts of RMB nil and RMB nil (US$ nil) for the nine months ended September 30, 2019 and 2020, respectively) | (796,997) | (117,385) | (637,444) |
Foreign exchange (loss)/gain, net | 14,349 | 2,113 | (634,187) |
Loss from equity method investments | (183,792) | (27,070) | (105,860) |
Other income, net | 129,039 | 19,005 | 22,847 |
Total other expenses, net | (702,333) | (103,444) | (1,042,332) |
Loss before income taxes | (5,435,469) | (800,560) | (7,771,564) |
Income tax expense | (39,613) | (5,834) | (29,266) |
Net loss | (5,475,082) | (806,394) | (7,800,830) |
Less: Net income attributable to noncontrolling interests | 15,665 | 2,307 | 28,714 |
Net loss attributable to iQIYI, Inc. | (5,490,747) | (808,701) | (7,829,544) |
Accretion of redeemable noncontrolling interests | (5,260) | (775) | 0 |
Net loss attributable to ordinary shareholders. | (5,496,007) | (809,476) | (7,829,544) |
Other comprehensive income | |||
Foreign currency translation adjustments | 166,781 | 24,564 | 613,424 |
Unrealized losses on available-for-sale debt securities | (315) | (46) | (282) |
Total other comprehensive income, net of tax | 166,466 | 24,518 | 613,142 |
Comprehensive loss | (5,308,616) | (781,876) | (7,187,688) |
Less: Comprehensive income attributable to noncontrolling interests | 14,573 | 2,146 | 29,821 |
Comprehensive loss attributable to iQIYI, Inc. | ¥ (5,323,189) | $ (784,022) | ¥ (7,217,509) |
Class A and Class B ordinary share | |||
Net loss per ordinary share: | |||
Basic | (per share) | ¥ (1.07) | $ (0.16) | ¥ (1.54) |
Diluted | (per share) | ¥ (1.07) | $ (0.16) | ¥ (1.54) |
Shares used in net loss per ordinary share computation: | |||
Basic | 5,157,297,932 | 5,157,297,932 | 5,098,456,394 |
Diluted | 5,157,297,932 | 5,157,297,932 | 5,098,456,394 |
American Depositary Shares | |||
Net loss per ordinary share: | |||
Basic | (per share) | ¥ (7.49) | $ (1.12) | ¥ (10.78) |
Diluted | (per share) | ¥ (7.49) | $ (1.12) | ¥ (10.78) |
Membership services | |||
Revenues: | |||
Revenues | ¥ 12,655,829 | $ 1,864,002 | ¥ 10,574,553 |
Online advertising services | |||
Revenues: | |||
Revenues | 4,963,084 | 730,983 | 6,387,500 |
Content distribution | |||
Revenues: | |||
Revenues | 1,855,739 | 273,321 | 1,666,177 |
Others | |||
Revenues: | |||
Revenues | ¥ 2,774,383 | $ 408,622 | ¥ 2,868,804 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Parenthetical) ¥ in Thousands, $ in Thousands | 9 Months Ended | ||
Sep. 30, 2020CNY (¥) | Sep. 30, 2020USD ($) | Sep. 30, 2019CNY (¥) | |
Cost of revenue to related party | ¥ 827,884 | $ 121,935 | ¥ 965,944 |
Selling, general and administrative expenses to related party | 17,133 | 2,524 | 2,482 |
Research and development expenses to related party | 7,381 | 1,087 | 12,085 |
Interest income from related party | 1,247 | 184 | 3,596 |
Interest expense to related party | ¥ 0 | $ 0 | ¥ 0 |
American Depositary Shares | |||
ADS per ordinary share | 7 | 7 | 7 |
Membership services | |||
Revenue from related parties | ¥ 12,640 | $ 1,862 | ¥ 22,098 |
Online advertising services | |||
Revenue from related parties | 153,725 | 22,642 | 51,635 |
Content distribution | |||
Revenue from related parties | 137,597 | 20,266 | 389,990 |
Others | |||
Revenue from related parties | ¥ 41,995 | $ 6,185 | ¥ 38,968 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands | 9 Months Ended | ||
Sep. 30, 2020CNY (¥) | Sep. 30, 2020USD ($) | Sep. 30, 2019CNY (¥) | |
Cash flows from operating activities: | |||
Net loss | ¥ (5,475,082) | $ (806,394) | ¥ (7,800,830) |
Adjustments to reconcile net loss to net cash provided by operating activities | |||
Depreciation of fixed assets | 362,459 | 53,384 | 349,752 |
Amortization and impairment of intangible assets | 271,935 | 40,052 | 419,919 |
Amortization and impairment of licensed copyrights | 8,989,909 | 1,324,070 | 9,531,104 |
Amortization and impairment of produced content | 3,492,657 | 514,413 | 2,324,085 |
Impairment of long-lived assets | 143,534 | 21,140 | 0 |
Provision for credit losses | 212,254 | 31,262 | 72,447 |
Unrealized foreign exchange loss/(gain) | (21,647) | (3,188) | 625,126 |
Loss/(gain) on disposal of fixed assets | (7,146) | (1,052) | 3,193 |
Accretion on convertible notes payable or convertible senior notes | 324,136 | 47,740 | 241,107 |
Barter transaction revenue | (957,675) | (141,050) | (493,570) |
Share-based compensation | 1,021,116 | 150,394 | 769,527 |
Share of losses on equity method investments | 183,792 | 27,070 | 105,860 |
Fair value change and impairment of long-term investments | 35,099 | 5,170 | 21,024 |
Fair value change of assets and liabilities remeasured at fair value on a recurring basis | 0 | 0 | 5,711 |
Other investment and interest income | 7,663 | 1,129 | (61,065) |
Deferred income tax benefit | (48,144) | (7,091) | (44,646) |
Amortization of deferred income | (10,658) | (1,570) | (7,938) |
Other non-cash expenses | 60,637 | 8,931 | 29,869 |
Changes in operating assets and liabilities | |||
Accounts receivable | 92,912 | 13,684 | (155,359) |
Amounts due from related parties | (126,909) | (18,692) | (55,226) |
Licensed copyrights | (7,913,397) | (1,165,517) | 0 |
Produced content | (4,654,531) | (685,538) | (3,433,945) |
Prepayments and other assets | 1,200,455 | 176,808 | (1,246,280) |
Accounts payable | (617,958) | (91,015) | (335,234) |
Amounts due to related parties | (86,373) | (12,721) | 344,642 |
Customer advances and deferred revenue | (20,622) | (3,037) | 154,321 |
Accrued expenses and other current liabilities | (330,627) | (48,696) | 183,107 |
Other non-current liabilities | (19,413) | (2,860) | 16,943 |
Net cash provided by/(used for) operating activities | (3,891,624) | (573,174) | 1,563,644 |
Cash flows from investing activities: | |||
Acquisition of fixed assets | (214,227) | (31,552) | (507,938) |
Acquisition of intangible assets | (131,320) | (19,341) | (106,655) |
Acquisition of licensed copyrights from related parties | 0 | 0 | (259,090) |
Acquisition of licensed copyrights from third parties | 0 | 0 | (8,042,120) |
Purchase of long-term investments | (770,805) | (113,527) | (409,941) |
Proceeds from disposal of long-term investments | 20,000 | 2,946 | 3,000 |
Acquisition of business, net of cash acquired | (5,798) | (854) | (5,798) |
Film investment as passive investor | 0 | 0 | (3,250) |
Proceeds from film investments as passive investor | 1,612 | 237 | 14,368 |
Loans provided to third parties | (6,415) | (945) | (24,000) |
Repayment of loans provided to related parties | 100,000 | 14,728 | 26,500 |
Purchases of held-to-maturity debt securities | (2,181,603) | (321,315) | (6,226,900) |
Maturities of held-to-maturity debt securities | 2,972,378 | 437,784 | 5,632,495 |
Purchases of available-for-sale debt securities | (8,104,132) | (1,193,610) | (11,081,887) |
Maturities of available-for-sale debt securities | 8,190,405 | 1,206,316 | 11,330,555 |
Other investing activities | 7,730 | 1,139 | 0 |
Net cash used for investing activities | (122,175) | (17,994) | (9,660,661) |
Cash flows from financing activities: | |||
Repayments of loans from related parties | 0 | 0 | (70,462) |
Proceeds from short-term loans | 2,955,474 | 435,294 | 1,889,367 |
Repayments of short-term loans | (1,773,315) | (261,181) | (1,425,903) |
Proceeds from long-term loans and borrowings from third party investors, net of issuance costs | 0 | 0 | 295,395 |
Repayments of long-term loans and borrowings from third party investors | (302,060) | (44,489) | (19,429) |
Purchase of capped calls | 0 | 0 | (567,140) |
Proceeds from issuance of subsidiaries' shares | 114 | 17 | 103,500 |
Acquisition of noncontrolling interests in a subsidiary | 0 | 0 | (65,000) |
Proceeds from exercise of share options | 172,661 | 25,430 | 94,601 |
Finance lease payments | (9,020) | (1,329) | 0 |
Other financing activities | (62,425) | (9,194) | (4,880) |
Net cash provided by financing activities | 981,429 | 144,548 | 8,139,555 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (58,523) | (8,620) | 290,138 |
Net increase/(decrease) in cash, cash equivalents and restricted cash | (3,090,893) | (455,240) | 332,676 |
Cash, cash equivalents and restricted cash at the beginning of the period | 6,909,674 | 1,017,685 | 6,760,447 |
Cash, cash equivalents and restricted cash at the end of the period | 3,818,781 | 562,445 | 7,093,123 |
Supplemental disclosures of cash flow information: | |||
Acquisition of fixed assets included in accounts payable | 9,943 | 1,464 | 289,504 |
Acquisition of long-term investments with non-cash consideration | 4,000 | 589 | 7,500 |
Convertible Senior Notes | |||
Cash flows from financing activities: | |||
Proceeds from issuance of convertible senior notes, net of issuance costs | ¥ 0 | $ 0 | ¥ 7,909,506 |
Organization and Basis of Prese
Organization and Basis of Presentation | 9 Months Ended |
Sep. 30, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
ORGANIZATION AND BASIS OF PRESENTATION | 1. ORGANIZATION AND BASIS OF PRESENTATION iQIYI, Inc. (“iQIYI” or the “Company”) was incorporated under the laws of the Cayman Islands on November 27, 2009. It was formerly known as Ding Xin, Inc. and changed its name to Qiyi.com, Inc. on August 30, 2010 and iQIYI, Inc. on November 30, 2017. The Company completed its initial public offering (“IPO”) on April 3, 2018. The unaudited interim condensed consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries, variable interest entities (“VIEs”), and VIEs’ subsidiaries, hereinafter collectively referred to as the “Group”. In the opinion of management, the unaudited interim condensed consolidated financial statements, which comprise the condensed consolidated balance sheet as of September 30, 2020, the condensed consolidated statements of comprehensive loss and the condensed consolidated statements of cash flows for the nine months ended September 30, 2019 and 2020, reflect all adjustments, consisting of normal and recurring adjustments, necessary to present fairly the Company’s consolidated financial position as of September 30, 2020, the Company’s consolidated results of operations and consolidated cash flows for the nine months ended September 30, 2019 and 2020. The consolidated balance sheet data as of December 31, 2019 was derived from the Company’s audited consolidated financial statements, but does not include all disclosures required by U.S. generally accepted accounting principles (“U.S. GAAP”) for annual financial statements. These unaudited interim condensed consolidated financial statements and the notes thereto should be read in conjunction with the Company’s audited consolidated financial statements for the year ended December 31, 2019. Results for the nine months ended September 30, 2020 are not necessarily indicative of the results expected for the full fiscal year or for any future period. The Group is an innovative platform in China offering a diverse collection of high-quality internet video content, including professionally-produced content licensed from professional content providers and self-produced content, on its platform. The Group provides membership services, online advertising services, content distribution services, live broadcasting services and online gaming services. The Group’s principal geographic market is in the People’s Republic of China (“PRC”) and is penetrating into new geographic regions. The Company does not conduct any substantive operations of its own but conducts its primary business operations through its wholly-owned subsidiaries, VIEs and VIEs’ subsidiaries in the PRC. As of September 30, 2020, the Company’s major subsidiaries, VIEs and VIEs’ subsidiaries are as follows: Place of Incorporation Date of Establishment/Acquisition Effective interest held Subsidiaries: Beijing QIYI Century Science & Technology Co., PRC March 8, 2010 100 % Chongqing QIYI Tianxia Science & Technology Co., PRC November 3, 2010 100 % iQIYI HK Limited (“QIYI HK”) Hong Kong April 14, 2011 100 % iQIYI Film Group Limited Cayman May 26, 2017 100 % iQIYI Media Limited Cayman May 26, 2017 100 % iQIYI Film Group HK Limited Hong Kong June 12, 2017 100 % Beijing iQIYI New Media Science &Technology Co., PRC July 27, 2017 100 % Skymoons Inc. Cayman Acquired on July 17, 2018 100 % Magic Prime Group Limited BVI Acquired on July 17, 2018 80 % Special (Hong Kong) Co., Ltd Hong Kong Acquired on July 17, 2018 80 % iQIYI International Singapore Pte, Ltd. Singapore February 11, 2020 100 % VIEs and VIEs’ subsidiaries: Beijing iQIYI Science & Technology Co., Ltd. PRC Acquired on November 23, 2011 Nil Shanghai iQIYI Culture Media Co., Ltd. (“Shanghai iQIYI”) PRC December 19, 2012 Nil Place of Incorporation Date of Establishment/Acquisition Effective interest held Shanghai Zhong Yuan Network Co., Ltd. PRC Acquired on May 11, 2013 Nil iQIYI Pictures (Beijing) Co., Ltd. (“iQIYI PRC December 31, 2014 Nil Beijing iQIYI Intelligent Entertainment Technology Co., Ltd. (“Intelligent Entertainment”, formerly known as Beijing iQIYI Cinema Management PRC June 28, 2017 Nil Tianjin Skymoons Technology Co., Ltd. (“Tianjin Skymoons”) PRC Acquired on July 17, 2018 Nil Chengdu Skymoons Digital Entertainment Co., Ltd. (“Chengdu Skymoons”) PRC Acquired on July 17, 2018 Nil Chengdu Skymoons Interactive Network Game Co.,Ltd. (“Skymoons Interactive”) PRC Acquired on July 17, 2018 Nil PRC laws and regulations prohibit or restrict foreign ownership of companies that engage in value-added telecommunication services, internet audio-video program services and certain other businesses. To comply with these foreign ownership restrictions, the Group operates its websites and primarily conducts its business in the PRC through the VIEs. The paid-in paid-in Despite the lack of legal majority ownership, the Company has effective control of the VIEs through a series of contractual arrangements and a parent-subsidiary relationship exists between the Company and the VIEs. Through the contractual arrangements, the shareholders of the VIEs effectively assigned all of their voting rights underlying their equity interest in the VIEs to the Company. In addition, through the other exclusive agreements, which consist of business operation agreements, business cooperating agreements, exclusive technology consulting and services agreements and trademark and software usage license agreements, the Company, through its wholly-owned subsidiaries in the PRC, have the right to receive economic benefits from the VIEs that potentially could be significant to the VIEs. Lastly, through the commitment letters, the Company has the obligation to absorb losses of the VIEs. Therefore, the Company is considered the primary beneficiary of the VIEs and consolidates the VIEs and their subsidiaries as required by SEC Accounting Standards Codification (“ASC”) topic 810 (“ASC 810”), Consolidation In the opinion of the Company’s legal counsel, (i) the ownership structure relating to the VIEs of the Company is in compliance with existing PRC laws and regulations; and (ii) each of the contractual arrangements with the VIEs and their shareholders, and the contractual arrangements taken as a whole, are valid and legally binding upon each party to such agreement under PRC laws; is enforceable against each party thereto in accordance with its terms; and does not contravene any applicable PRC laws or regulations currently in effect. However, uncertainties in the PRC legal system could cause the Company’s current ownership structure to be found in violation of any existing and/or future PRC laws or regulations and could limit the Company’s ability to enforce its rights under these contractual arrangements. Furthermore, the VIEs’ shareholders may have interests that are different with those of the Company, which could potentially increase the risk that they would seek to act in contrary to the terms of the aforementioned agreements. In addition, if the current structure or any of the contractual arrangements were found to be in violation of any existing or future PRC laws, the Company may be subject to penalties, including but not be limited to: the cancelation or revocation of the Company’s business and operating licenses, being required to restructure the Company’s operations or discontinue the Company’s operating activities. The imposition of any of these or other penalties may result in a material and adverse effect on the Company’s ability to conduct its operations. As a result, the Company may not be able to operate or control the VIEs, which may result in deconsolidation of the VIEs. The carrying amounts of the assets, liabilities and the results of operations of the VIEs and VIEs’ subsidiaries included in the Company’s consolidated balance sheets and statements of comprehensive loss are as follows: As of December 31, September 30, September 30, RMB RMB US$ ASSETS Current assets: Cash and cash equivalents 882,743 909,623 133,973 Short-term investments 169,565 228,179 33,607 Accounts receivable, net 2,839,945 2,750,509 405,106 Licensed copyrights, net 716,008 952,996 140,362 Prepayments and other assets 3,202,489 2,958,358 435,718 Total current assets 7,810,750 7,799,665 1,148,766 Non-current Fixed assets, net 856,116 726,666 107,026 Long-term investments 2,130,467 2,249,307 331,287 Licensed copyrights, net 1,640,582 1,157,843 170,532 Produced content, net 4,355,221 5,145,750 757,887 Operating lease assets 649,273 736,802 108,519 Goodwill 2,412,989 2,412,989 355,395 Others 1,552,160 986,015 145,225 Total non-current 13,596,808 13,415,372 1,975,871 Total assets 21,407,558 21,215,037 3,124,637 LIABILITIES Current liabilities: Accounts payable 4,193,022 3,920,413 577,414 Customer advances and deferred revenue 2,982,011 2,964,704 436,654 Long-term loans, current portion (i) 732,213 712,253 104,904 Operating lease liabilities, current portion 95,905 100,201 14,758 Accrued expenses and other liabilities 4,090,314 3,949,158 581,648 Total current liabilities 12,093,465 11,646,729 1,715,378 Non-current Long-term loans (i) 937,782 664,299 97,841 Operating lease liabilities 364,853 620,583 91,402 Others 630,195 528,030 77,770 Total non-current 1,932,830 1,812,912 267,013 Amounts due to the Company and its subsidiaries 13,583,317 15,618,372 2,300,338 Total liabilities 27,609,612 29,078,013 4,282,729 Nine months ended September 30 2019 2020 2020 RMB RMB US$ Total revenues 20,116,714 20,351,564 2,997,461 Net loss (1,943,153 ) (1,940,779 ) (285,846 ) Net cash provided by operating activities 1,644,590 259,018 38,149 Net cash used for investing activities (2,173,941 ) (364,693 ) (53,714 ) Net cash provided by financing activities 586,135 152,753 22,498 (i) In accordance with the arrangement as described in Note 7, the Group consolidates the securitization vehicle as it is a VIE for which the Group considers itself the primary beneficiary given the Group has the power to govern the activities that most significantly impact its economic performance and is obligated to absorb losses that could potentially be significant to the VIE. As of December 31, 2019 and September 30, 2020, RMB424,000 (US$62,448) of the loan is repayable within one year and is included in “Long-term loans, current portion” and the remaining balance of RMB527,000 (US$77,619) of the loan is included in “Long-term loans” in the carrying amounts of the liabilities of the VIEs and VIEs’ subsidiaries. Unrecognized revenue-producing assets held by the VIEs include certain internet content provisions and other licenses, domain names and trademarks. The internet content provisions and other licenses, which are held by the VIEs that provide the relevant services, are required under relevant PRC laws, rules and regulations for the operation of Internet businesses in the PRC, and therefore are integral to the Company’s operations. The VIEs and VIEs’ subsidiaries contributed an aggregate of 94% and 91% of the Group’s consolidated revenues for the nine months ended September 30, 2019 and 2020, respectively, after elimination of inter-company transactions. As of September 30, 2020, there was no pledge or collateralization of the VIEs and VIEs’ subsidiaries’ assets that can only be used to settled obligations of the VIEs and VIEs’ subsidiaries, other than the collateralization of a VIE’s office building as described in Note 7 and the share pledge agreements and business operation agreements with respect to the VIEs contractual arrangements as disclosed in the Company’s audited consolidated financial statements for the year ended December 31, 2019. The VIEs’ third-party creditors did not have recourse to the general credit of the Company in normal course of business. The Company did not provide or intend to provide financial or other supports not previously contractually required to the VIEs and VIEs’ subsidiaries during the years presented. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Recently adopted accounting pronouncements Adoption of ASU 2016-13 In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments Credit Losses The Group maintains an allowance for credit losses for accounts receivable and contract assets, which is recorded as an offset to accounts receivable and contract assets, and the estimated credit losses charged to the allowance is classified as “Selling, general and administrative” in the condensed consolidated statements of comprehensive loss. When similar risk characteristics exist, the Group assesses collectability and measures expected credit losses on a collective basis for a pool of assets, whereas if similar risk characteristics do not exist, the Group assesses collectability and measures expected credit losses on an individual asset basis. In determining the amount of the allowance for credit losses, the Group considers historic collection experience, the age of the accounts receivable and contract assets balances, credit quality of the Group’s customers, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect the customer’s ability to pay. The allowance for credit losses on accounts receivable and contract assets , including amounts due from related parties, was RMB151,799 and RMB400,719 (US$59,020) as of December 31, 2019 and September 30, 2020, respectively. The provisions and write-offs charged against the allowance were RMB214,388 (US$31,576) and RMB49,194 (US$7,245), respectively, for the nine months ended September 30, 2020. For debt securities, the allowance for credit losses reflects the Company’s estimated expected losses over the contractual lives of the debt securities and is recorded as a charge to “Other income, net” in the condensed consolidated statements of comprehensive loss. Estimated allowances of credit losses are determined by considering reasonable and supportable forecasts of future economic conditions in addition to information about past events and current conditions. Adoption of ASU 2017-04 In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment Adoption of ASU 2019-02 In March 2019, the FASB issued ASU 2019-02, Improvements to Accounting for Costs of Films and License Agreements for Program Materials 2019-02”) • The content distinction for capitalization of production costs of an episodic television series and production costs of films is removed; • Entities are required to test films and license agreements for program material for impairment at a film group level when the film or license agreements are predominantly monetized with other films and license agreements; • Entities shall assess estimates of the use of a film in a film group and account for such changes prospectively; • Cash outflows for the costs incurred to obtain rights for both produced and licensed content are required t o The Group adopted ASU 2019-02 2019-02. To supplement cash flow disclosure of operating activities in 2020, cash paid for content, which includes both licensed copyrights and produced content, is RMB11,941,392 (US$1,758,777) for the nine months ended September 30, 2020. Produced content, net The Group produces original content in-house non-current For produced content that is predominantly monetized in a film group, the Group amortizes film costs using an accelerated method based on historical and estimated future viewership consumption patterns. For produced content that is monetized on its own, the Group amortizes film costs using an accelerated method based on historical and estimated usage patterns of similar produced content, which represents the Group’s best estimate of usage. Based on the estimated patterns, the Group amortizes produced content within ten years, beginning with the month of first availability and such costs are included in “Cost of revenues” in the condensed consolidated statement of comprehensive loss. Licensed copyrights, net Licensed copyrights consist of professionally-produced content such as films, television series, variety shows and other video content acquired from external parties. The license fees are capitalized and, unless prepaid, a corresponding liability is recorded when the cost of the content is known, the content is accepted by the Group in accordance with the conditions of the license agreement and the content is available for its first showing on the Group’s websites. Licensed copyrights are presented on the condensed consolidated balance sheet as current and non-current The Group’s licensed copyrights include the right to broadcast and, in some instances, the right to sublicense. The broadcasting right, refers to the right to broadcast the content on its own websites and the sublicensing right, refers to the right to sublicense the underlying content to external parties. When licensed copyrights include both broadcasting and sublicensing rights, the content costs are allocated to these two rights upon initial recognition, based on the relative proportion of the estimated total revenues that will be generated by each right over its economic useful lives. For the right to broadcast the contents on its own websites that generates online advertising and membership services revenues, the content costs are amortized using an accelerated method based on historical and estimated future viewership consumption patterns by categories over the shorter of each content’s contractual period or economic useful lives within ten years, beginning with the month of first availability. Estimates of future viewership consumption patterns and economic useful lives are reviewed periodically, at least on an annual basis and revised, if necessary. Revisions to the amortization patterns are accounted for as a change in accounting estimate prospectively in accordance with ASC topic 250 (“ASC 250”), Accounting Changes and Error Corrections. Change in accounting estimates of licensed copyrights and produced content In 2020, the Group reviewed and revised its estimates of the estimated future viewership consumption patterns and extended the estimated useful lives of its licensed copyrights and produced content to better reflect the usage of these content assets. As a result of these revisions, amortization expense decreased by RMB 398,469 (US$58,688) , net loss decreased by RMB398,469 (US$58,688), and basic and diluted net loss per Class A and Class B ordinary share decreased by RMB0.08 (US$0.01) for the nine Impairment of licensed copyrights and produced content Our business model is mainly subscription and advertising based, as such the majority of the Group’s content assets (licensed copyrights and produced content) are predominantly m When such events or changes in circumstances are identified, the Group assesses whether the fair value of an individual content (or film group) is less than its unamortized film costs, determines the fair value of an individual cont e Comparative Information Certain items in the assets of the VIEs and VIEs’ subsidiaries included in the Company’s condensed consolidated balance sheets have been adjusted to conform with the current year’s presentation to facilitate comparison. Convenience translation Translations of amounts from RMB into US$ for the convenience of the reader have been calculated at the exchange rate of RMB6.7896 per US$1.00 on September 30, 2020, as published on the website of the United States Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted into U.S. dollars at such rate. Use of estimates The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Management evaluates estimates, including those related to the standalone selling prices of performance obligations of revenue contracts, accrued sales rebates for online advertising revenues, the allowance for credit losses of accounts receivable, contract assets and debt securities, future viewership consumption patterns and useful lives of licensed copyrights and produced content, future revenues generated by the broadcasting and sublicensing rights of content assets (licensed and produced) , useful lives of certain finite-lived intangible assets, fair values of certain debt and equity investments, recoverability and useful lives of long-lived assets, recoverability of indefinite-lived intangible assets and goodwill, ultimate revenue of produced content predominantly monetized on its own, fair values of licensed copyrights and produced content monetized as a film group or individually, the purchase price allocation and fair value of noncontrolling interests with respect to business combinations, fair value of nonmonetary content exchanges, fair value of financial instruments, fair value of share options to purchase the Company’s ordinary shares, forfeiture rates for share options granted, valuation allowances on deferred tax assets and income tax uncertainties, among others. Management bases these estimates on its historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ from these estimates. Revenue recognition The Group’s revenues are derived principally from membership services, online advertising services and content distribution. Revenue is recognized when control of promised goods or services is transferred to the Group’s customers in an amount of consideration to which an entity expects to be entitled to in exchange for those goods or services. Value added taxes (“VAT”) are presented as a reduction of revenues. The Group’s revenue recognition policies are as follows: Membership services The Group offers membership services to subscribing members with various privileges, which primarily including access to exclusive and ad-free on-demand Online advertising services The Group sells advertising services primarily to third-party advertising agencies and a small portion are sold d i The Group provides various sales incentives to its customers for meeting certain cumulative purchase volume requirements, including cash rebates to certain third-party advertising agencies and noncash credits which can be used to acquire future online advertising services in certain bundled arrangements, which are negotiated on a contract by contract basis with customers. The Group accounts for cash rebates granted to customers as variable consideration which is measured based on the most likely amount of incentive to be provided to customers. Noncash credits granted to customers are considered options to acquire additional services that provide customers with a material right. The contract consideration related to these customer options to acquire additional services are deferred and recognized as revenue when future services are transferred or when the options expire. Content distribution The Group generates revenues from sub-licensing sub-license non-exclusive sub-license sub-licensee sub-licensing sub-license sub-licensing sub-licensee sub-license sub-licensing The Group also enters into nonmonetary transactions to exchange online broadcasting rights of licensed copyrights with other online video broadcasting companies from time to time. The exchanged licensed copyrights provide rights for each party to broadcast the licensed copyrights received on its own website only. Each transferring party retains the right to continue broadcasting the exclusive content on its own website and/or sublicense the rights to the content it surrendered in the exchange. The Group accounts for these nonmonetary exchanges based on the fair value of the asset received. Barter sublicensing revenues are recognized in accordance with the same revenue recognition criteria above. T h non-exclusive The Group recognized barter sublicensing revenues of RMB493,570 and RMB957,675 (US$141,050) and related costs of RMB411,921 and RMB710,199 (US$104,601) for the nine months ended September 30, 2019 and 2020, respectively. Others Other revenues mainly include revenues from live broadcasting and online games. Live broadcasting The Group operates a live broadcasting platform, iQIYI Show, whereby users can follow their favorite hosts and shows in real time through live broadcasting. Users can purchase virtual currency for usage in iQIYI Show to acquire consumable virtual gifts, which are simultaneously presented to hosts to show their support or time-based virtual items, which enables users to enjoy additional functions and privileges for a specified time period. The Group operates the live broadcasting platform and determines the price of virtual items sold. Therefore, revenues derived from the sale of virtual items are recorded on a gross basis as the Group acts as the principal in the transaction. Costs incurred from services provided by the hosts are recognized as cost of revenues. To facilitate the sale of virtual items, the Group bundles special privileges and virtual items as a package at a discounted price and the Group allocates the arrangement consideration to each performance obligation based on their relative standalone selling prices. Revenue from the sale of consumable virtual gifts is recognized when consumed by the user, or, in the case of time-based virtual items, recognized ratably over the period each virtual item is made available to the user. Virtual currency sold but not yet consumed by the purchasers is recorded as “Customer advances and deferred revenue” on the condensed consolidated balance sheets. Online games The Group operates mobile games including both self-developed and licensed mobile games and generates mobile game revenues from the sale of in-game in-game The Group records revenue generated from mobile games on a gross basis if the Group acts as the principal in the mobile game arrangements under which the Group controls the specified services before they are provided to the customer. In addition, the Group is primarily responsible for fulfilling the promise to provide maintenance services and has discretion in setting the price for the services to the customer. Otherwise, the Group records revenue on a net basis based on the ratios pre-determined For transactions where the Group is the principal, the Group determines that the in-game on-going end-users Contract balances When either party to a revenue contract has performed, the Group presents the contract in the condensed consolidated balance sheets as a contract asset or a contract liability, depending on the relationship between the entity’s performance and the customer’s payment. Contract assets represent unbilled amounts related to the Group’s rights to consideration for advertising services delivered and are included in “Prepayments and other assets” on the condensed consolidated balance sheets. As of December 31, 2019, and September 30, 2020, contract assets were RMB1,875,704 and RMB1,590,327 (US$234,230), respectively, net of an allowance for credit losses of RMB7,225 and RMB11,389 (US$1,677), respectively. Contract liabilities are the Group’s obligation to transfer goods or services to customers for which the Group has received consideration from customers, which are services have not yet been provided to customers ; and iii) noncash credits granted to customers. Contract liabilities are primarily presented as “Customer advances and deferred revenue” on the condensed consolidated balance sheets. Balances of contract liabilities were RMB3,954,763 and RMB3,957,230 (US$582,837) as of December 31, 2019 and September 30, 2020, respectively. Revenue recognized for the nine months ended September 30, 2020 that was included in contract liabilities as of January 1, 2020 was RMB2,694,143 (US$396,804). Practical Expedients and Exemptions The Group does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which the Group recognizes revenue at the amount to which it has the right to invoice for services performed. Concentration of credit risks Financial instruments that potentially subject the Group to significant concentration of credit risk primarily consist of cash and cash equivalents, restricted cash, short-term investments, accounts receivable and contract assets. The carrying amounts of these assets represent the Group’s maximum exposure to credit risk. As of September 30, 2020, the Group has RMB3,818,781 (US$562,445) in cash, cash equivalents and restricted cash, which is held in cash and demand deposits with several financial institutions primarily in the PRC and Hong Kong. In the event of bankruptcy of one of these financial institutions, the Group may not be able to claim its cash and demand deposits back in full. The Group continues to monitor the financial strength of the financial institutions. Accounts receivable and contract assets are typically unsecured and denominated in RMB, derived from revenue earned from customers and agencies in the PRC, which are exposed to credit risk. The risk is mitigated by credit evaluations the Group performs on its customers and its ongoing monitoring process of outstanding balances. The Group maintains an allowance for credit losses and actual losses have generally been within management’s expectations. As of December 31, 2019, and September 30, 2020, the Group had no single customer with a balance exceeding 10% of the total accounts receivable and contract assets balance. Going concern The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. The Company had a working capital deficit of RMB4,940.0 million (US$727.6 million) as of September 30, 2020. In accordance with the terms of the Company’s US$750 million 2023 Convertible Senior Notes , In order to address its working capital deficit as of September 30, 2020 and to meet its obligations as they become due within one year after the date that the interim condensed consolidated financial statements are issued, the Company may rely on debt financing on fully implemented but unused credit lines from commercial banks , additional financing generated through the sale of the Company’s debt and/or equity securities and financial support from shareholder. The Company believes its current cash and cash equivalents, restricted cash, short-term investments, proceeds expected from future financings and available financial support from shareholder will provide sufficient funds to meet the Company’s obligations as they become due, and there is no substantial doubt raised about the Company’s ability to continue as a going concern. Impact of COVID-19 During the nine months ended September 30, 2020, COVID-19 COVID-19 COVID-19’s COVID-19 non-marketable For further information of other significant accounting policies, see Note 2 to the consolidated financial statements included in the Company’s annual report on Form 20-F Recently issued but not yet adopted accounting pronouncements In August 2020, the FASB issued ASU No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity 2020-06”), 2020-06 2020-06 2020-06 earnings-per-share if-converted 2020-06 |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2020 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS' EQUITY | 3. SHAREHOLDERS’ EQUITY The changes in shareholders’ equity for the nine months ended September 30, 2019 and 2020 are as follows: Attributable to iQIYI, INC. Ordinary shares Additional paid-in capital Accumulated Number of Amount Accumulated Noncontrolling Total RMB RMB RMB RMB RMB RMB Balances as of December 31, 2018 5,075,817,301 321 39,666,150 1,879,946 (23,509,486 ) 118,632 18,155,563 Net loss attributable to iQIYI, Inc. — — — — (7,829,544 ) 28,714 (7,800,830 ) Other comprehensive income — — — 612,035 — 1,107 613,142 Exercise of share-based awards 41,428,030 3 93,057 — — — 93,060 Share-based compensation — — 769,527 — — — 769,527 Equity component of convertible senior notes, net of issuance costs — — 987,691 — — — 987,691 Purchase of capped call — — (567,140 ) — — — (567,140 ) Issuance of subsidiaries’ shares to noncontrolling interest holders — — — — — 3,500 3,500 Acquisition of noncontrolling interests in a subsidiary — — (71,620 ) — — 6,620 (65,000 ) Balances as of September 30, 2019 5,117,245,331 324 40,877,665 2,491,981 (31,339,030 ) 158,573 12,189,513 Attributable to iQIYI, INC. Ordinary shares Additional paid-in capital Accumulated Number of Amount Accumulated Noncontrolling Total RMB RMB RMB RMB RMB RMB Balances as of December 31, 2019 5,135,516,521 325 41,298,328 2,106,718 (33,834,357 ) 42,376 9,613,390 Cumulative effect of adopting ASC 326 — — — — (94,048 ) — (94,048 ) Net loss attributable to iQIYI, Inc. — — — — (5,490,747 ) 15,665 (5,475,082 ) Exercise of share-based awards 59,727,931 4 165,974 — — — 165,978 Other comprehensive income — — — 167,558 — (1,092 ) 166,466 Issuance of a subsidiary’s shares to noncontrolling interest holders — — (918 ) — — 1,032 114 Accretion of a redeemable noncontrolling interest — — — — (5,260 ) — (5,260 ) Dividends paid and payable by a subsidiary — — — — — (22,563 ) (22,563 ) Share-based compensation — — 1,021,116 — — — 1,021,116 Others — — (20,026 ) — — 20,026 — Balances as of September 30, 2020 5,195,244,452 329 42,464,474 2,274,276 (39,424,412 ) 55,444 5,370,111 Balances as of September 30, 2020, in US$ 49 6,254,341 334,965 (5,806,588 ) 8,166 790,933 |
Long-term Investments
Long-term Investments | 9 Months Ended |
Sep. 30, 2020 | |
Schedule Of Investments [Abstract] | |
LONG-TERM INVESTMENTS | 4. LONG-TERM INVESTMENTS The Group’s long-term investments primarily consist of equity investments at fair value without readily determinable fair value, equity method investments and held-to-maturity Equity investments at fair value without readily determinable fair value As of December 31, 2019, and September 30, 2020, the carrying amount of the Company’s equity investments without readily determinable fair value were as follows: As of December 31, 2019 September 30, 2020 September 30, 2020 RMB RMB US$ Initial cost basis 1,797,421 2,677,423 394,342 Cumulative unrealized gains 196,663 235,258 34,650 Cumulative unrealized losses (including impairment) (181,274 ) (247,468 ) (36,448 ) Total carrying amount 1,812,810 2,665,213 392,544 Impairment charges recognized on equity investments measured at fair value using the measurement alternative were RMB27,100 and RMB73,199 (US$10,781) for the nine months ended September 30, 2019 and 2020, respectively. Total realized and unrealized gains and losses for equity securities without readily determinable fair values for the nine months ended September 30, 2019 and 2020 were as follows: For the nine months ended September 30, 2019 2020 2020 RMB RMB US$ Gross unrealized gains (upward adjustments) 6,076 38,595 5,685 Gross unrealized losses (downward adjustments excluding impairment) — (495 ) (73 ) Net unrealized gains and losses on equity securities held 6,076 38,100 5,612 Net realized gains on equity securities sold — — — Total net gains recognized in other income, net 6,076 38,100 5,612 Equity method investments In July 2018, the Group acquired a 32% outstanding equity interest amounting to RMB796,000 in Beijing Xin’ai Sports Media Technology co., LTD (or “Xin’ai”) that is engaged in the operation of a sports content platform. The Group has significant influence over the investee and therefore accounts for its equity interest as an equity method investment. The excess of the carrying value of the investment over the proportionate share of Xin’ai’s net assets of RMB609,502 was recognized as basis differences and investment goodwill. As of September 30, 2020, the Group’s equity interest in Xin’ai was diluted to 24% due to subsequent rounds of equity financing. As of December 31, 2019 and September 30, 2020, Held-to-maturity In 2019, the Group purchased US$71,000 of held-to-maturity held-to-maturity |
Licensed Copyrights, Net
Licensed Copyrights, Net | 9 Months Ended |
Sep. 30, 2020 | |
Finite Lived License Agreements Abstract | |
LICENSED COPYRIGHTS, NET | 5. LICENSED COPYRIGHTS, NET As of December 31, 2019 Gross carrying value Accumulated amortization Impairment amount Net carrying RMB RMB RMB RMB Licensed copyrights —Broadcasting rights 32,038,423 (24,500,895 ) (25,317 ) 7,512,211 —Sublicensing rights 4,632,586 (4,632,586 ) — — 36,671,009 (29,133,481 ) (25,317 ) 7,512,211 Less: current portion: —Broadcasting rights 11,752,412 (10,502,214 ) (25,317 ) 1,224,881 —Sublicensing rights 4,632,586 (4,632,586 ) — — 16,384,998 (15,134,800 ) (25,317 ) 1,224,881 Licensed copyrights—non-current —Broadcasting rights 20,286,011 (13,998,681 ) — 6,287,330 —Sublicensing rights — — — — 20,286,011 (13,998,681 ) — 6,287,330 As of September 30, 2020 Gross carrying value Accumulated amortization Impairment amount Net carrying value RMB RMB RMB RMB US$ Licensed copyrights —Broadcasting rights 36,240,889 (28,588,974 ) (365,799 ) 7,286,116 1,073,128 —Sublicensing rights 5,613,400 (5,590,590 ) — 22,810 3,360 41,854,289 (34,179,564 ) (365,799 ) 7,308,926 1,076,488 Less: current portion: —Broadcasting rights 8,889,238 (7,618,439 ) (46,194 ) 1,224,605 180,364 —Sublicensing rights 5,613,400 (5,590,590 ) — 22,810 3,360 14,502,638 (13,209,029 ) (46,194 ) 1,247,415 183,724 Licensed copyrights—non-current —Broadcasting rights 27,351,651 (20,970,535 ) (319,605 ) 6,061,511 892,764 —Sublicensing rights — — — — — 27,351,651 (20,970,535 ) (319,605 ) 6,061,511 892,764 Amortization expense of RMB9,531,104 and RMB8,599,610 (US$1,266,586) for the nine months ended September 30, 2019 and 2020, respectively, was recognized as cost of revenues. Estimated amortization expense relating to the existing licensed copyrights for each of the next three years is as follows: RMB US$ Three months ending December 31, 2020 1,510,992 222,545 Year ending December 31, 2021 2,660,860 391,902 Year ending December 31, 2022 1,112,819 163,901 Year ending December 31, 2023 668,234 98,420 To supplement cash flow disclosure of investing activities in 2019, acquisition of licensed copyrights included in current liabilities and from nonmonetary content exchanges for the nine months ended September 30, 2019 are RMB6,540,834 and RMB746,255, respectively. |
Produced Content, Net
Produced Content, Net | 9 Months Ended |
Sep. 30, 2020 | |
Film Costs [Abstract] | |
PRODUCED CONTENT, NET | 6. PRODUCED CONTENT, NET As of December 31, 2019 RMB Released, less amortization 891,574 In production 3,074,946 In development 388,701 4,355,221 As of September 30, 2020 2020 RMB US$ Released, less amortization and impairment — Predominantly monetized with other content assets 1,516,977 223,427 — Predominantly monetized on its own 54,122 7,971 1,571,099 231,398 In production, less impairment — Predominantly monetized with other content assets 2,897,231 426,716 — Predominantly monetized on its own 182,873 26,934 3,080,104 453,650 In development, less impairment — Predominantly monetized with other content assets 774,712 114,103 — Predominantly monetized on its own 91,180 13,429 865,892 127,532 Total 5,517,095 812,580 Amortization expense of RMB2,228,522 (US$328,225) and R MB was recognized as cost of revenues in the condensed consolidated statement of comprehensive loss for the nine months ended September 30, 2020, for produced content predominantly monetized with other content assets and for produced content predominantly monetized on its own, respectively. Amortization expense for produced content was RMB2,324,085 for the nine months ended September 30, 2019. Estimated amortization expense relating to produced content that has been released for each of the next three years is as follows: RMB US$ Three months ending December 31, 2020 326,064 48,024 Year ending December 31, 2021 421,467 62,075 Year ending December 31, 2022 214,681 31,619 Year ending December 31, 2023 147,147 21,672 |
Loans Payable
Loans Payable | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
LOANS PAYABLE | 7. LOANS PAYABLE Short-term Loans Short-term loans as of December 31, 2019 and September 30, 2020 amounted to RMB2,618,170 and RMB3,804,396 (US$560,327), respectively, which consisted of secured RMB denominated borrowings from financial institutions in the PRC that are repayable within one year. As of December 31, 2019, and September 30, 2020, the repayments of primarily all of the short-term loans are guaranteed by subsidiaries within the Group and either collateralized by an office building of one of the Group’s VIEs with a carrying amount of RMB561,515 and RMB551,734 (US$81,262), respectively, or collateralized by restricted cash balances totaling US$138,572 and US$93,572 (equivalent to RMB635,316), respectively. The weighted average interest rate for the outstanding borrowings as of December 31, 2019 and September 30, 2020 was 4.05% and 4.21%, respectively. As of December 31, 2019, and September 30, 2020, the aggregate amounts of unused lines of credit for short-term loans were RMB1,620,520 and RMB1,682,054 (US$247,740), respectively. Structured payable arrangements In 2020, the Group entered into structured payable arrangements with banks or other financial institutions (“factoring arrangements”), which extended the original payment terms. Under the factoring arrangements, the suppliers’ receivables collection process was accelerated through selling its receivables from the Group to the banks or other financial institutions at a discount. The Group was legally obligated to pay the banks or other financial institutions in the amount totaling RMB395,943 (US$58,316 ), maturing within one year. As a result of the factoring arrangements, the payment terms of the Group’s original accounts payables were substantially modified and considered extinguished as the nature of the original liability has changed from accounts payables to loan borrowings from banks or other financial institutions. The proceeds from borrowings from banks or other financial institutions is a financing activity and is reported as “Proceeds from short-term loans” on the condensed consolidated statements of cash flows. As of September 30, 2020, the outstanding borrowings from the factoring arrangements wer e RMB384,428 (US$56,620), which is repayable within one year and are included in “Short-term loans” on the condensed consolidated balance sheets. Long-term Loans In 2017, the Group borrowed a secured RMB denominated loan of RMB299,000 with an interest rate of 4.47% for a three-year term from the Bank of China for its general working capital purposes. Pursuant to the agreement, the principal shall be repaid by installments from 2017 to 2020. T loan In 2019, the Group entered into a two-year in held-to-maturity Borrowings from third-party investors Asset-backed debt securities In December 2018, certain supplier invoices selected by the Group totaling RMB525,279 were factored to a financial institution (the “2018 factored receivables”) at a discount. These supplier invoices were recorded as accounts payables in the Group’s condensed 5.0%-5.5% In November 2019, certain supplier invoices selected by the Group totaling RMB587,000 were factored to a financial institution (the “2019 factored receivables”) at a discount. These supplier invoices were recorded as accounts payables in the Group’s condensed The proceeds raised from issuance of the asset-backed debt securities were used by the financial institutions to factor the supplier invoices. At the same time, the credit terms of the Group’s corresponding trade payables were extended to mirror the maturity of the asset-backed debt securities. Accounting for asset-backed debt securities The Group consolidates the securitization vehicles as VIEs for which the Group considers itself the primary beneficiary given the Group has the power to govern the activities that most significantly impact its economic performance and is obligated to absorb losses that could potentially be significant to the VIEs. As a result of the series of transactions described above, the payment terms of the Group’s original trade payables were substantially modified and considered extinguished as the nature of the original liability has changed from that of a trade payable to loan borrowings from third-party investors. The proceeds from borrowings from third-party investors is a financing activity and reported as “Proceeds from long-term loans and borrowings from third party investors, net of issuance costs” on the condensed consolidated statements of cash flows. As of December 31, 2019 and September 30, 2020, the outstanding borrowings from asset-backed debt securities were RMB898,097 and RMB936,100 (US$137,873). RMB74,992 of 2018 asset-backed debt securities was repaid when it became due in December 2019. RMB445,113 (US$65,558) of asset-backed debt securities is repayable within one year and are included in “Long-term loans, current portion” and the remaining balance of RMB490,987 (US$72,315) of 2019 asset-backed debt securities is included in non-current |
Convertible Senior Notes
Convertible Senior Notes | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
CONVERTIBLE SENIOR NOTES | 8. CONVERTIBLE SENIOR NOTES 2023 Convertible Senior Notes On December 4, 2018, the Company issued US$750 million convertible senior notes (the “2023 Notes”). The 2023 Notes are senior, unsecured obligations of the Company, and interest is payable semi-annually in cash at a rate of 3.75% per annum on June 1 and December 1 of each year, beginning on June 1, 2019. The 2023 Notes will mature on December 1, 2023 unless redeemed, repurchased or converted prior to such date. The initial conversion rate of the 2023 Notes is 37.1830 of the Company’s ADS per US$1,000 principal amount of the 2023 Notes (which is equivalent to an initial conversion price of approximately US$26.89 per ADS). Prior to June 1, 2023, the 2023 Notes will be convertible at the option of the holders only upon the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on March 31, 2019, if the last reported sale price of ADSs for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price; (2) during the five business day period after any ten consecutive trading day period in which the trading price per US$1,000 principal amount of notes was less than 98% of the product of the last reported sale price of the ADSs and the conversion rate on each such trading day; (3) if the Company calls the notes for a tax redemption; or (4) upon the occurrence of specified corporate events. Thereafter, the 2023 Notes will be convertible at the option of the holders at any time until the close of business on the second scheduled trading day immediately preceding the maturity date. The conversion rate is subject to adjustment in some events but is not adjusted for any accrued and unpaid interest. In addition, following a make-whole fundamental change that occurs prior to the maturity date or following the Company’s delivery of a notice of a tax redemption, the Company will increase the conversion rate for a holder who elects to convert its notes in connection with such a corporate event or such tax redemption. Upon conversion, the Company will pay or deliver to such converting holders, as the case may be, cash, ADSs, or a combination of cash and ADSs, at its election. The holders may require the Company to repurchase all or portion of the 2023 Notes for cash on December 1, 2021, or upon a fundamental change, at a repurchase price equal to 100% of the principal amount, plus accrued and unpaid interest. In connection with the issuance of the 2023 Notes, the Company purchased capped call options (the “2023 Capped Call”) on the Company’s ADS with certain counterparties at a price of US$67.5 million. The 2023 Capped Call exercise price is equal to the 2023 Notes’ initial conversion price and the cap price is US$38.42 per ADS, subject to certain adjustments under the terms of the capped call transactions. The capped call transactions are expected to reduce potential dilution to existing holders of the ordinary shares and ADSs of the Company upon conversion of the 2023 Notes and/or offset any potential cash payments that the Company is required to make in excess of the principal amount of any converted notes, as the case may be, with such reduction and/or offset subject to a cap. 2025 Convertible Senior Notes On March 29, 2019, the Company issued US$1,200 million convertible senior notes (the “2025 Notes”). The 2025 Notes are senior, unsecured obligations of the Company, and interest is payable semi-annually in cash at a rate of 2.00% per annum on October 1 and April 1 of each year, beginning on October 1, 2019. The 2025 Notes will mature on April 1, 2025 unless redeemed, repurchased or converted prior to such date. The initial conversion rate of the 2025 Notes is 33.0003 of the Company’s ADS per US$1,000 principal amount of the 2025 Notes (which is equivalent to an initial conversion price of approximately US$30.30 per ADS). Prior to October 1, 2024, the 2025 Notes will be convertible at the option of the holders only upon the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on June 30, 2019, if the last reported sale price of ADSs for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price; (2) during the five business day period after any ten consecutive trading day period in which the trading price per US$1,000 principal amount of notes was less than 98% of the product of the last reported sale price of the ADSs and the conversion rate on each such trading day; (3) if the Company calls the notes for a tax redemption; or (4) upon the occurrence of specified corporate events. Thereafter, the 2025 Notes will be convertible at the option of the holders at any time until the close of business on the second scheduled trading day immediately preceding the maturity date. The conversion rate is subject to adjustment in some events but is not adjusted for any accrued and unpaid interest. In addition, following a make-whole fundamental change that occurs prior to the maturity date or following the Company’s delivery of a notice of a tax redemption, the Company will increase the conversion rate for a holder who elects to convert its notes in connection with such a corporate event or such tax redemption. Upon conversion, the Company will pay or deliver to such converting holders, as the case may be, cash, ADSs, or a combination of cash and ADSs, at its election. The holders may require the Company to repurchase all or portion of the 2025 Notes for cash on April 1, 2023, or upon a fundamental change, at a repurchase price equal to 100% of the principal amount, plus accrued and unpaid interest. In connection with the issuance of the 2025 Notes, the Company purchased capped call options (the “2025 Capped Call”) on the Company’s ADS with certain counterparties at a price of US$84.5 million. The 2025 Capped Call exercise price is equal to the 2025 Notes’ initial conversion price and the cap price is US$40.02 per ADS, subject to certain adjustments under the terms of the capped call transactions. The capped call transactions are expected to reduce potential dilution to existing holders of the ordinary shares and ADSs of the Company upon conversion of the 2025 Notes and/or offset any potential cash payments that the Company is required to make in excess of the principal amount of any converted notes, as the case may be, with such reduction and/or offset subject to a cap. Accounting for Convertible Senior Notes As the conversion option may be settled in cash at the Company’s option, the Company separated the 2023 Notes and the 2025 Notes (collectively as the “Notes”) into liability and equity components in accordance with ASC 470-20, Debt with Conversion and Other Options paid-in The cost of the 2023 Capped Call and 2025 Capped Call of US$67.5 million and US$84.5 million were recorded as a reduction of the Company’s additional paid-in The net proceeds from the issuance of the 2023 Notes and the 2025 Notes were US$736.7 million and US$1,179.0 million, after deducting underwriting discounts and offering expenses of US$13.3 million and US$21.0 million from the initial proceeds of US$750 million and US$1,200 million, respectively. Debt issuance costs were allocated to the liability and equity components based on the same proportion as the recognized amounts of liability and equity components determined above. As of December 31, 2019 and September 30, 2020, the principal amount of the liability component of the Notes were RMB13,577.9 million and RMB13,241.5 million (US$1,950.3 million), unamortized debt discount were RMB1,281.0 million and RMB934.2 million (US$137.6 million), and the net carrying amount of the liability component were RMB12,296.9 million and RMB12,307.3 million (US$1,812.7 million), respectively. The carrying amount of the equity component of the Notes were RMB1,349.3 million and RMB1,349.3 million (US$198.7 million), respectively. For the nine months ended September 30, 2019 and 2020, the amount of interest cost recognized relating to both the contractual interest coupon and amortization of the discount on the liability component were RMB471.2 million and RMB595.6 million (US$87.7 million), respectively. As of September 30, 2020, the liability component of the 2023 Notes and the 2025 Notes will be accreted up to the principal amount of US$750 million and US$1,200 million over a remaining period of 1.17 years and 2.50 years, respectively. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 9. INCOME TAXES The Company is incorporated in the Cayman Islands and conducts its primary business operations through the subsidiaries and VIEs in the PRC. It also has intermediate holding companies in Hong Kong and Singapore. Under the current laws of the Cayman Islands, the Company is not subject to tax on income or capital gains. Additionally, upon payment of dividends by the Company to its shareholders, no Cayman Islands withholding tax will be imposed. Under the Hong Kong tax laws, subsidiaries in Hong Kong are subject to the Hong Kong profits tax rate at 16.5% and they may be exempted from income tax on their foreign-derived income and there are no withholding taxes in Hong Kong on remittance of dividends. Under the Singapore tax laws, subsidiaries in Singapore are subject to a unified 17% tax rate, except for certain entities that are entitled to preferential tax treatments, and there are no withholding taxes in Singapore on remittance of dividends. Under the PRC Enterprise Income Tax (“EIT”) Law, which has been effective since January 1, 2008, domestic enterprises and Foreign Investment Enterprises (the “FIEs”) are subject to a unified 25% enterprise income tax rate, except for certain entities that are entitled to preferential tax treatments. The effective tax rates were negative 0.38% and 0.73% for the nine months ended September 30, 2019 and 2020, respectively. The effective tax rates were lower than the PRC statutory EIT rate of 25% mainly because PRC entities file separate tax returns and most subsidiaries were in an accumulated loss position. The effective tax rates are subject to change in subsequent period as the estimates of pretax income or loss for the year increase or decrease and certain subsidiaries of the Company may or may not continue to qualify for certain preferential tax rates. Valuation allowances have been provided on the net deferred tax assets where, based on all available evidence, it was considered more likely than not that some portion or all of the recorded deferred tax assets will not be realized in future periods. Realization of the net deferred tax assets is dependent on factors including future reversals of existing taxable temporary differences and adequate future taxable income, exclusive of reversing deductible temporary differences and tax loss or credit carry forwards. The Group evaluates the potential realization of deferred tax assets on an entity-by-entity The Group evaluated its income tax uncertainty under ASC 740. ASC 740 clarifies the accounting for uncertainty in income taxes by prescribing the recognition threshold a tax position is required to meet before being recognized in the financial statements. The Group elects to classify interest and penalties related to an uncertain tax position, if and when required, as part of income tax expense in the con densed |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 10. COMMITMENTS AND CONTINGENCIES Commitments for property management fees Future minimum payments under non-cancelable RMB US$ 2020 2,378 350 2021 23,138 3,408 2022 23,667 3,486 2023 17,479 2,574 2024 and thereafter 41,225 6,072 107,887 15,890 Commitments for Licensed Copyrights and Produced Content Future minimum payments under non-cancelable RMB US$ 2020 6,107,029 899,468 2021 7,743,333 1,140,470 2022 3,755,818 553,172 2023 1,734,388 255,448 2024 and thereafter 1,267,381 186,666 20,607,949 3,035,224 Capital commitment As of September 30, 2020, commitments for the purchase of fixed assets are immaterial. Litigation The Group is involved in a number of claims pending in various courts, in arbitration, or otherwise unresolved as of September 30, 2020. These claims are substantially related to alleged copyright infringement as well as routine and incidental matters to its business, among others. Adverse results in these claims may include awards of damages and may also result in, or even compel, a change in the Group’s business practices, which could impact the Group’s future financial results. The Group has accrued RMB34,494 condensed Starting in April 2020, the Group and certain of its current and former officers and directors were named as defendants in putative securities class actions filed in federal court. All of these cases were purportedly brought on behalf of a class of persons who allegedly suffered damages as a result of alleged misstatements and omissions in the Group’s public disclosure documents. As the cases remain in their preliminary stages, the likelihood of any unfavorable outcome or the amount or range of any potential loss cannot be reasonably estimated at the issuance date of the unaudited interim condensed consolidated financial statements. As a result, as of September 30, 2020, the Group did not record any liabilities for the loss contingencies pertaining to the cases described above. The Group is unable to estimate the reasonably possible loss or a range of reasonably possible losses for proceedings in the early stages or where there is a lack of clear or consistent interpretation of laws specific to the industry-specific complaints among different jurisdictions. Although the results of unsettled litigations and claims cannot be predicted with certainty, the Group does not believe that, as of September 30, 2020, there was at least a reasonable possibility that the Group may have incurred a material loss, or a material loss in excess of the accrued expenses, with respect to such loss contingencies. The losses accrued include judgments made by the court and out-of-court |
Redeemable Noncontrolling Inter
Redeemable Noncontrolling Interests | 9 Months Ended |
Sep. 30, 2020 | |
Temporary Equity Disclosure [Abstract] | |
Redeemable Noncontrolling Interests | 11. REDEEMABLE NONCONTROLLING INTERESTS In October 2019, one of the Group’s VIE’s subsidiary completed a round of preferred shares financing with RMB100,000 from third-party preferred shareholders. As the preferred shares can be redeemed by such shareholders upon the occurrence of certain events that are not solely within the control of the Group, these preferred shares are accounted for as redeemable noncontrolling interests. The Group accounts for the changes in accretion to the redemption value in accordance with ASC Topic 480, Distinguishing Liabilities from Equity The movement in the carrying value of the redeemable noncontrolling interests is as follows: 2020 2020 RMB US$ Balance as of January 1 101,542 14,955 Issuance of subsidiary shares — — Accretion of redeemable noncontrolling interests 5,260 775 Balance as of September 30 106,802 15,730 |
Restricted Net Assets
Restricted Net Assets | 9 Months Ended |
Sep. 30, 2020 | |
Restricted Assets Disclosure [Abstract] | |
RESTRICTED NET ASSETS | 12. RESTRICTED NET ASSETS As of December 31, 2019, and September 30, 2020, the Company’s PRC subsidiaries, VIEs and VIEs’ subsidiaries had appropriated RMB23,073 and RMB20,071 Under the PRC laws and regulations, the subsidiaries, VIEs and the VIEs’ subsidiaries incorporated in the PRC are restricted in their ability to transfer a portion of their net assets to the Group either in the form of dividends, loans or advances of the combined and consolidated net assets as of September 30, 2020. Even though the Group currently does not require any such dividends, loans or advances from the PRC subsidiaries, VIEs and VIEs’ subsidiaries for working capital and other funding purposes, the Company may in the future require additional cash resources from its PRC subsidiaries, VIEs and VIEs’ subsidiaries due to changes in business conditions, to fund future acquisitions and development, or merely declare and pay dividends to or distribution to its shareholders. Amounts of net assets restricted include paid-in |
Loss Per Share
Loss Per Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Loss Per Share | 13. LOSS PER SHARE Basic and diluted net loss per Class A and Class B ordinary share for the nine months ended September 30, 2019 and 2020 are as follows: For the nine months ended September 30, 2019 2020 2020 Class A Class B Class A Class B RMB RMB RMB US$ RMB US$ Numerator: Net loss attributable to iQIYI, Inc. (3,412,357 ) (4,417,187 ) (2,428,380 ) (357,663 ) (3,062,367 ) (451,038 ) Accretion of redeemable noncontrolling interests — — (2,326 ) (343 ) (2,934 ) (432 ) Net loss attributable to iQIYI, Inc.’s ordinary shareholders (3,412,357 ) (4,417,187 ) (2,430,706 ) (358,006 ) (3,065,301 ) (451,470 ) Denominator: Weighted average number of ordinary shares outstanding, basic 2,222,064,998 2,876,391,396 2,280,906,536 2,280,906,536 2,876,391,396 2,876,391,396 Weighted average number of ordinary shares outstanding, diluted 2,222,064,998 2,876,391,396 2,280,906,536 2,280,906,536 2,876,391,396 2,876,391,396 Net loss per share, basic (1.54 ) (1.54 ) (1.07 ) (0.16 ) (1.07 ) (0.16 ) Net loss per share, diluted (1.54 ) (1.54 ) (1.07 ) (0.16 ) (1.07 ) (0.16 ) The effects of the convertible senior notes, share options and restricted share units were excluded from the computation of diluted net loss per share for the nine months ended September 30, 2019 and 2020, as their effects would be anti-dilutive. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 14. RELATED PARTY TRANSACTIONS a) The table below sets forth the major related parties and their relationships with the Group: Name of related parties Relationship with the Group Baidu and its subsidiaries (“Baidu Group”) Others Controlling shareholder of the Company Equity investees b) The Group had the following related party transactions with the major related parties: Nine months ended September 30, 2019 2020 2020 RMB RMB US$ Membership services Membership services revenue earned from memberships sold to Baidu Group 14,051 11,900 1,753 Membership services revenue earned from memberships sold by Others 8,047 740 109 Online advertising revenues Advertising services provided to Baidu Group 37,484 94,651 13,941 Advertising services provided to Others 14,151 59,074 8,701 Content distribution revenues Content licensed to Others 389,990 137,597 20,266 Other revenues Other services provided to Baidu Group 7,946 11,976 1,764 Other services provided to Others 31,022 30,019 4,421 Interest income Loans due from Others 3,596 1,247 184 506,287 347,204 51,139 Cost of revenues License fees to Baidu Group 18,902 11,839 1,744 Bandwidth fee to Baidu Group 747,194 763,801 112,496 Traffic acquisition and other services provided by Baidu Group (i) 119,652 — — Others (ii) 80,196 52,244 7,695 Selling, general and administrative Advertising services provided by Baidu Group 1,440 771 114 Others 1,042 16,362 2,410 Research and development Cloud services provided by Baidu Group 12,085 7,381 1,087 980,511 852,398 125,546 (i) On April 12, 2018, the Company issued to Baidu an aggregate of 36,860,691 Class B ordinary shares pursuant to a share purchase agreement with Baidu entered into in February 2018, in exchange for Baidu providing traffic acquisition and other services in relation with ticket booking service, which was recorded as intangible assets. (ii) The transactions mainly represent revenue sharing arrangements with various equity investees. The Group entered into a revenue sharing arrangement in 2018 to become the exclusive sales agent for an equity investee and provided a minimum guarantee of a RMB100,000 of annual sales for a one year period. RMB61,698 and RMB nil (US$ nil) was recognized as cost of revenues for the nine months ended September 30, 2019 and 2020, respectively. For the nine months ended September 30, 2019 and 2020, the Group purchased contents from various equity investees for total amounts of RMB510,889 and RMB993,652 c) The Group had the following related party balances with the major related parties: As of December 31, September 30, 2020 September 30, 2020 RMB RMB US$ Amounts due from related parties, current: Due from Baidu Group (i) 35,560 48,868 7,197 Loans receivable from Others (ii) 105,934 — — Due from Others (iii) 70,499 120,931 17,812 211,993 169,799 25,009 Amounts due from related parties, non-current: Due from Others (iv) 172,200 242,000 35,643 172,200 242,000 35,643 As of December 31, 2019 September 30, 2020 September 30, 2020 RMB RMB US$ Amounts due to related parties, current: Loans due to Baidu Group (v) 50,000 50,000 7,364 Due to Baidu Group (vi) 1,014,283 800,815 117,947 Deferred revenue in relation to services to be provided to an equity investee (vii) 169,677 166,144 24,470 Due to Others (viii) 370,298 811,126 119,467 1,604,258 1,828,085 269,248 Amounts due to related parties, non-current: Loans due to Baidu Group (v) 650,000 650,000 95,735 Due to Baidu Group (vi) 1,570 2,050 302 Deferred revenue in relation to services to be provided to an equity investee (vii) 410,187 341,512 50,299 Due to Others 126 46 7 1,061,883 993,608 146,343 (i) The balance mainly represents amounts due from Baidu Group for advertising services. (ii) The balance as of December 31, 2019 represents loans provided to a Group’s equity investee with an interest rate of 5%, which were fully repaid during the nine months ended September 30, 2020. (iii) The balance mainly represents amounts due from or advances made to equity investees for content distribution service and other services. (iv) The balance represents prepaid licensed copyrights for the Group’s equity investees. (v) The total outstanding balance represents an interest-free loan of RMB50,000, which is due on demand and an interest-free loan of RMB650,000 provided by Baidu in January 2018 that will mature in January 2023. (vi) The balance mainly represents amounts owed to Baidu for provision of bandwidth and cloud services. (vii) The balance represents deferred revenue in relation to content distribution, licenses of intellectual property and traffic support services to be provided to an equity investee. (viii) The balance mainly represents amounts owed to the Group’s equity investees for licensed copyrights and advances made for online advertising services. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | 15. FAIR VALUE MEASUREMENTS The following table sets forth the financial instruments measured at fair value on a recurring basis by level within the fair value hierarchy as of December 31, 2019 and September 30, 2020 and on a non-recurring Fair Value Measurements Quoted Prices in Significant Other Significant Total Gain/(Losses) RMB RMB RMB RMB US$ Recurring As of December 31, 2019: Short-term investments Available-for-sale 890,459 Held-to-maturity 3,688,854 Long-term investments Available-for-sale 10,259 Held-to-maturity 490,799 Prepayment and other assets Option to purchase equity interests of a listed company 14 Convertible senior notes 14,142,006 As of September 30, 2020: Short-term investments Available-for-sale 791,593 Held-to-maturity 2,812,298 Long-term investments Held-to-maturity 495,533 Convertible senior notes 13,280,458 Non-recurring As of December 31, 2019: Long-term investments — (169,374 ) Intangible assets, net 72,302 (99,096 ) Equity investments at fair value without readily determinable fair value 44,198 7,024 As of September 30, 2020: Long-term investments — (73,199 ) (10,781 ) Equity investments at fair value without readily determinable fair value 101,594 38,100 5,612 Fixed assets — (95,111 ) (14,008 ) Prepayments and other assets 110,000 (48,423 ) (7,132 ) Fair Value Measurements Quoted Prices in Significant Other Significant Total Gain/(Losses) RMB RMB RMB RMB US$ Mainland China film group – Licensed copyrights as of March 31, 2020 7,186,037 (390,299 ) (57,485 ) Mainland China film group – Produced content as of March 31, 2020 4,124,114 (209,701 ) (30,886 ) Produced content monetized on its own 29,907 (186,933 ) (27,532 ) Recurring As of September 30, 2020, the Group estimated the fair value of the long-term hel d -to-maturity one year The Company carries the convertible senior notes at face value less unamortized debt discount and issuance costs on its condensed consolidated balance sheets and presents the fair value for disclosure purposes only. The fair value of the convertible senior notes (Note 8) is classified as Level 2 fair value measurements based on dealer quotes. Non-recurring The Group measures certain financial assets, including equity method investments at fair value on a non-recurring basis only if an impairment charge were to be recognized. For equity investments accounted for under the measurement alternative, the equity investment is measured at fair value on a nonrecurring basis when there is an orderly transaction for identical or similar investments of the same issuer. The fair values of these investments were categorized as Level 3 in the fair value hierarchy. The fair values of the Group’s privately held investments as disclosed are determined based on the observable transaction price of recent rounds of financing and a price adjustment for the different rights and obligations between a similar instrument of the same issuer with an observable price change in an orderly transaction and the investment held by the Group. The Group’s long-term investments were determined to be impaired as of March 31, 2020 and June 30, 2020, respectively, and the impairment charges were recognized in the condensed consolidated statement of comprehensive loss for the nine months ended September 30, 2020. The Group uses an income approach to determine the fair value of mobile games in development with the assistance of an independent third-party valuation firm. Judgments involved in determining the fair value of mobile games in development includes forecasts of future cash flows, which are based on the Group’s best estimate of expected revenues and operating costs and expenses, working capital levels, as well as the risk-adjusted discount rate determined based on comparable companies operating in similar businesses and adjusted for an appropriate risk premium for the related asset (Level 3). In the third quarter of 2020, the Group received a unilateral vacancy notice from a third-party lessor for one of its leased film production premises. The Group considered such notice as an impairment indicator for relevant long-lived assets associated with the leased property, including its related construction in process and leasehold improvements. Therefore, the Group performed an impairment assessment of the relevant long-lived assets based on estimates of the future cash flows that can be recovered from the lessor. An impairment charge of was recognized as “selling, general and administrative” in the condensed consolidated statement of comprehensive loss for the nine months ended September 30, 2020. The outbreak of coronavirus (COVID-19) advertising Asset Valuation technique Unobservable inputs Range Mainland China film group Discounted cash flow Costs and operating expenses attributable to the film group as a percentage of revenue 32%-37% Discount rate 15% In addition, due to adverse changes in the expected performance of certain produced content and the reduced amount of ultimate revenue expected to be recognized, the Group performed an assessment to determine whether the fair value was less than unamortized content costs. The Group uses a discounted cash flow approach to estimate the fair value of the produced content titles predominantly monetized on its own. The significant unobservable inputs (level 3) include forecasted future revenues, productions costs required to complete the content and exploitation and participation costs. The Group considers historical performance of similar contents, the forecasted performance and/or preliminary actual performance subsequent to release of the produced content in estimating the fair value. An impairment charge of RMB186,933 (US$27,532) was recognized for produced content predominantly monetized on its own and was recognized as cost of revenues in the condensed consolidated statement of comprehensive loss for the nine months ended September 30, 2020. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME | 16. ACCUMULATED OTHER COMPREHENSIVE INCOME The changes in accumulated other comprehensive income by component, net of tax, for the nine months ended September 30, 2019 and 2020 are as follows: Foreign currency Unrealized gain on available-for-sale debt Total RMB RMB RMB Balance at December 31, 2018 1,879,171 775 1,879,946 Other comprehensive income before reclassification 613,424 6,855 620,279 Amounts reclassified from accumulated other comprehensive income — (7,137 ) (7,137 ) Net current-period other comprehensive income/(loss) 613,424 (282 ) 613,142 Other comprehensive (income)/loss attributable to noncontrolling interests (1,145 ) 38 (1,107 ) Balance at September 30, 2019 2,491,450 531 2,491,981 Foreign currency Unrealized gain on available-for-sale debt Total RMB RMB RMB Balance at December 31, 2019 2,106,219 499 2,106,718 Other comprehensive income before reclassification 166,781 11,254 178,035 Amounts reclassified from accumulated other comprehensive income — (11,569 ) (11,569 ) Net current-period other comprehensive income/(loss) 166,781 (315 ) 166,466 Other comprehensive loss attributable to noncontrolling interests 1,088 4 1,092 Balance at September 30, 2020 2,274,088 188 2,274,276 Balance at September 30, 2020, in US$ 334,937 28 334,965 The amounts reclassified out of accumulated other comprehensive income represent realized gains on the available-for-sale The following table sets forth the tax benefit/(expense) allocated to each component of other comprehensive income for the nine months ended September 30, 2019 and 2020: For the nine months ended September 30, 2019 2020 2020 RMB RMB US$ Unrealized gains on available-for-sale Other comprehensive income before reclassification (1,174 ) (2,105 ) (310 ) Amounts reclassified from accumulated other comprehensive income 1,246 2,145 316 Net current-period other comprehensive income 72 40 6 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Recently adopted accounting pronouncements | Recently adopted accounting pronouncements Adoption of ASU 2016-13 In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments Credit Losses The Group maintains an allowance for credit losses for accounts receivable and contract assets, which is recorded as an offset to accounts receivable and contract assets, and the estimated credit losses charged to the allowance is classified as “Selling, general and administrative” in the condensed consolidated statements of comprehensive loss. When similar risk characteristics exist, the Group assesses collectability and measures expected credit losses on a collective basis for a pool of assets, whereas if similar risk characteristics do not exist, the Group assesses collectability and measures expected credit losses on an individual asset basis. In determining the amount of the allowance for credit losses, the Group considers historic collection experience, the age of the accounts receivable and contract assets balances, credit quality of the Group’s customers, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect the customer’s ability to pay. The allowance for credit losses on accounts receivable and contract assets , including amounts due from related parties, was RMB151,799 and RMB400,719 (US$59,020) as of December 31, 2019 and September 30, 2020, respectively. The provisions and write-offs charged against the allowance were RMB214,388 (US$31,576) and RMB49,194 (US$7,245), respectively, for the nine months ended September 30, 2020. For debt securities, the allowance for credit losses reflects the Company’s estimated expected losses over the contractual lives of the debt securities and is recorded as a charge to “Other income, net” in the condensed consolidated statements of comprehensive loss. Estimated allowances of credit losses are determined by considering reasonable and supportable forecasts of future economic conditions in addition to information about past events and current conditions. Adoption of ASU 2017-04 In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment Adoption of ASU 2019-02 In March 2019, the FASB issued ASU 2019-02, Improvements to Accounting for Costs of Films and License Agreements for Program Materials 2019-02”) • The content distinction for capitalization of production costs of an episodic television series and production costs of films is removed; • Entities are required to test films and license agreements for program material for impairment at a film group level when the film or license agreements are predominantly monetized with other films and license agreements; • Entities shall assess estimates of the use of a film in a film group and account for such changes prospectively; • Cash outflows for the costs incurred to obtain rights for both produced and licensed content are required t o The Group adopted ASU 2019-02 2019-02. To supplement cash flow disclosure of operating activities in 2020, cash paid for content, which includes both licensed copyrights and produced content, is RMB11,941,392 (US$1,758,777) for the nine months ended September 30, 2020. |
Produced content, net | Produced content, net The Group produces original content in-house non-current For produced content that is predominantly monetized in a film group, the Group amortizes film costs using an accelerated method based on historical and estimated future viewership consumption patterns. For produced content that is monetized on its own, the Group amortizes film costs using an accelerated method based on historical and estimated usage patterns of similar produced content, which represents the Group’s best estimate of usage. Based on the estimated patterns, the Group amortizes produced content within ten years, beginning with the month of first availability and such costs are included in “Cost of revenues” in the condensed consolidated statement of comprehensive loss. |
Licensed copyrights, net | Licensed copyrights, net Licensed copyrights consist of professionally-produced content such as films, television series, variety shows and other video content acquired from external parties. The license fees are capitalized and, unless prepaid, a corresponding liability is recorded when the cost of the content is known, the content is accepted by the Group in accordance with the conditions of the license agreement and the content is available for its first showing on the Group’s websites. Licensed copyrights are presented on the condensed consolidated balance sheet as current and non-current The Group’s licensed copyrights include the right to broadcast and, in some instances, the right to sublicense. The broadcasting right, refers to the right to broadcast the content on its own websites and the sublicensing right, refers to the right to sublicense the underlying content to external parties. When licensed copyrights include both broadcasting and sublicensing rights, the content costs are allocated to these two rights upon initial recognition, based on the relative proportion of the estimated total revenues that will be generated by each right over its economic useful lives. For the right to broadcast the contents on its own websites that generates online advertising and membership services revenues, the content costs are amortized using an accelerated method based on historical and estimated future viewership consumption patterns by categories over the shorter of each content’s contractual period or economic useful lives within ten years, beginning with the month of first availability. Estimates of future viewership consumption patterns and economic useful lives are reviewed periodically, at least on an annual basis and revised, if necessary. Revisions to the amortization patterns are accounted for as a change in accounting estimate prospectively in accordance with ASC topic 250 (“ASC 250”), Accounting Changes and Error Corrections. |
Change in accounting estimates of licensed copyrights and produced content | Change in accounting estimates of licensed copyrights and produced content In 2020, the Group reviewed and revised its estimates of the estimated future viewership consumption patterns and extended the estimated useful lives of its licensed copyrights and produced content to better reflect the usage of these content assets. As a result of these revisions, amortization expense decreased by RMB 398,469 (US$58,688) , net loss decreased by RMB398,469 (US$58,688), and basic and diluted net loss per Class A and Class B ordinary share decreased by RMB0.08 (US$0.01) for the nine |
Impairment of licensed copyrights and produced content | Impairment of licensed copyrights and produced content Our business model is mainly subscription and advertising based, as such the majority of the Group’s content assets (licensed copyrights and produced content) are predominantly m When such events or changes in circumstances are identified, the Group assesses whether the fair value of an individual content (or film group) is less than its unamortized film costs, determines the fair value of an individual cont e |
Comparative Information | Comparative Information Certain items in the assets of the VIEs and VIEs’ subsidiaries included in the Company’s condensed consolidated balance sheets have been adjusted to conform with the current year’s presentation to facilitate comparison. |
Convenience translation | Convenience translation Translations of amounts from RMB into US$ for the convenience of the reader have been calculated at the exchange rate of RMB6.7896 per US$1.00 on September 30, 2020, as published on the website of the United States Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted into U.S. dollars at such rate. |
Use of estimates | Use of estimates The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Management evaluates estimates, including those related to the standalone selling prices of performance obligations of revenue contracts, accrued sales rebates for online advertising revenues, the allowance for credit losses of accounts receivable, contract assets and debt securities, future viewership consumption patterns and useful lives of licensed copyrights and produced content, future revenues generated by the broadcasting and sublicensing rights of content assets (licensed and produced) , useful lives of certain finite-lived intangible assets, fair values of certain debt and equity investments, recoverability and useful lives of long-lived assets, recoverability of indefinite-lived intangible assets and goodwill, ultimate revenue of produced content predominantly monetized on its own, fair values of licensed copyrights and produced content monetized as a film group or individually, the purchase price allocation and fair value of noncontrolling interests with respect to business combinations, fair value of nonmonetary content exchanges, fair value of financial instruments, fair value of share options to purchase the Company’s ordinary shares, forfeiture rates for share options granted, valuation allowances on deferred tax assets and income tax uncertainties, among others. Management bases these estimates on its historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ from these estimates. |
Revenue recognition | Revenue recognition The Group’s revenues are derived principally from membership services, online advertising services and content distribution. Revenue is recognized when control of promised goods or services is transferred to the Group’s customers in an amount of consideration to which an entity expects to be entitled to in exchange for those goods or services. Value added taxes (“VAT”) are presented as a reduction of revenues. The Group’s revenue recognition policies are as follows: Membership services The Group offers membership services to subscribing members with various privileges, which primarily including access to exclusive and ad-free on-demand Online advertising services The Group sells advertising services primarily to third-party advertising agencies and a small portion are sold d i The Group provides various sales incentives to its customers for meeting certain cumulative purchase volume requirements, including cash rebates to certain third-party advertising agencies and noncash credits which can be used to acquire future online advertising services in certain bundled arrangements, which are negotiated on a contract by contract basis with customers. The Group accounts for cash rebates granted to customers as variable consideration which is measured based on the most likely amount of incentive to be provided to customers. Noncash credits granted to customers are considered options to acquire additional services that provide customers with a material right. The contract consideration related to these customer options to acquire additional services are deferred and recognized as revenue when future services are transferred or when the options expire. Content distribution The Group generates revenues from sub-licensing sub-license non-exclusive sub-license sub-licensee sub-licensing sub-license sub-licensing sub-licensee sub-license sub-licensing The Group also enters into nonmonetary transactions to exchange online broadcasting rights of licensed copyrights with other online video broadcasting companies from time to time. The exchanged licensed copyrights provide rights for each party to broadcast the licensed copyrights received on its own website only. Each transferring party retains the right to continue broadcasting the exclusive content on its own website and/or sublicense the rights to the content it surrendered in the exchange. The Group accounts for these nonmonetary exchanges based on the fair value of the asset received. Barter sublicensing revenues are recognized in accordance with the same revenue recognition criteria above. T h non-exclusive The Group recognized barter sublicensing revenues of RMB493,570 and RMB957,675 (US$141,050) and related costs of RMB411,921 and RMB710,199 (US$104,601) for the nine months ended September 30, 2019 and 2020, respectively. Others Other revenues mainly include revenues from live broadcasting and online games. Live broadcasting The Group operates a live broadcasting platform, iQIYI Show, whereby users can follow their favorite hosts and shows in real time through live broadcasting. Users can purchase virtual currency for usage in iQIYI Show to acquire consumable virtual gifts, which are simultaneously presented to hosts to show their support or time-based virtual items, which enables users to enjoy additional functions and privileges for a specified time period. The Group operates the live broadcasting platform and determines the price of virtual items sold. Therefore, revenues derived from the sale of virtual items are recorded on a gross basis as the Group acts as the principal in the transaction. Costs incurred from services provided by the hosts are recognized as cost of revenues. To facilitate the sale of virtual items, the Group bundles special privileges and virtual items as a package at a discounted price and the Group allocates the arrangement consideration to each performance obligation based on their relative standalone selling prices. Revenue from the sale of consumable virtual gifts is recognized when consumed by the user, or, in the case of time-based virtual items, recognized ratably over the period each virtual item is made available to the user. Virtual currency sold but not yet consumed by the purchasers is recorded as “Customer advances and deferred revenue” on the condensed consolidated balance sheets. Online games The Group operates mobile games including both self-developed and licensed mobile games and generates mobile game revenues from the sale of in-game in-game The Group records revenue generated from mobile games on a gross basis if the Group acts as the principal in the mobile game arrangements under which the Group controls the specified services before they are provided to the customer. In addition, the Group is primarily responsible for fulfilling the promise to provide maintenance services and has discretion in setting the price for the services to the customer. Otherwise, the Group records revenue on a net basis based on the ratios pre-determined For transactions where the Group is the principal, the Group determines that the in-game on-going end-users Contract balances When either party to a revenue contract has performed, the Group presents the contract in the condensed consolidated balance sheets as a contract asset or a contract liability, depending on the relationship between the entity’s performance and the customer’s payment. Contract assets represent unbilled amounts related to the Group’s rights to consideration for advertising services delivered and are included in “Prepayments and other assets” on the condensed consolidated balance sheets. As of December 31, 2019, and September 30, 2020, contract assets were RMB1,875,704 and RMB1,590,327 (US$234,230), respectively, net of an allowance for credit losses of RMB7,225 and RMB11,389 (US$1,677), respectively. Contract liabilities are the Group’s obligation to transfer goods or services to customers for which the Group has received consideration from customers, which are services have not yet been provided to customers ; and iii) noncash credits granted to customers. Contract liabilities are primarily presented as “Customer advances and deferred revenue” on the condensed consolidated balance sheets. Balances of contract liabilities were RMB3,954,763 and RMB3,957,230 (US$582,837) as of December 31, 2019 and September 30, 2020, respectively. Revenue recognized for the nine months ended September 30, 2020 that was included in contract liabilities as of January 1, 2020 was RMB2,694,143 (US$396,804). Practical Expedients and Exemptions The Group does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which the Group recognizes revenue at the amount to which it has the right to invoice for services performed. |
Concentration of credit risks | Concentration of credit risks Financial instruments that potentially subject the Group to significant concentration of credit risk primarily consist of cash and cash equivalents, restricted cash, short-term investments, accounts receivable and contract assets. The carrying amounts of these assets represent the Group’s maximum exposure to credit risk. As of September 30, 2020, the Group has RMB3,818,781 (US$562,445) in cash, cash equivalents and restricted cash, which is held in cash and demand deposits with several financial institutions primarily in the PRC and Hong Kong. In the event of bankruptcy of one of these financial institutions, the Group may not be able to claim its cash and demand deposits back in full. The Group continues to monitor the financial strength of the financial institutions. Accounts receivable and contract assets are typically unsecured and denominated in RMB, derived from revenue earned from customers and agencies in the PRC, which are exposed to credit risk. The risk is mitigated by credit evaluations the Group performs on its customers and its ongoing monitoring process of outstanding balances. The Group maintains an allowance for credit losses and actual losses have generally been within management’s expectations. As of December 31, 2019, and September 30, 2020, the Group had no single customer with a balance exceeding 10% of the total accounts receivable and contract assets balance. |
Going concern | Going concern The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. The Company had a working capital deficit of RMB4,940.0 million (US$727.6 million) as of September 30, 2020. In accordance with the terms of the Company’s US$750 million 2023 Convertible Senior Notes , In order to address its working capital deficit as of September 30, 2020 and to meet its obligations as they become due within one year after the date that the interim condensed consolidated financial statements are issued, the Company may rely on debt financing on fully implemented but unused credit lines from commercial banks , additional financing generated through the sale of the Company’s debt and/or equity securities and financial support from shareholder. The Company believes its current cash and cash equivalents, restricted cash, short-term investments, proceeds expected from future financings and available financial support from shareholder will provide sufficient funds to meet the Company’s obligations as they become due, and there is no substantial doubt raised about the Company’s ability to continue as a going concern. |
Impact of COVID-19 | Impact of COVID-19 During the nine months ended September 30, 2020, COVID-19 COVID-19 COVID-19’s COVID-19 non-marketable For further information of other significant accounting policies, see Note 2 to the consolidated financial statements included in the Company’s annual report on Form 20-F |
Recently issued but not yet adopted accounting pronouncements | Recently issued but not yet adopted accounting pronouncements In August 2020, the FASB issued ASU No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity 2020-06”), 2020-06 2020-06 2020-06 earnings-per-share if-converted 2020-06 |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Schedule of Major Subsidiaries, VIEs and VIEs' Subsidiaries | As of September 30, 2020, the Company’s major subsidiaries, VIEs and VIEs’ subsidiaries are as follows: Place of Incorporation Date of Establishment/Acquisition Effective interest held Subsidiaries: Beijing QIYI Century Science & Technology Co., PRC March 8, 2010 100 % Chongqing QIYI Tianxia Science & Technology Co., PRC November 3, 2010 100 % iQIYI HK Limited (“QIYI HK”) Hong Kong April 14, 2011 100 % iQIYI Film Group Limited Cayman May 26, 2017 100 % iQIYI Media Limited Cayman May 26, 2017 100 % iQIYI Film Group HK Limited Hong Kong June 12, 2017 100 % Beijing iQIYI New Media Science &Technology Co., PRC July 27, 2017 100 % Skymoons Inc. Cayman Acquired on July 17, 2018 100 % Magic Prime Group Limited BVI Acquired on July 17, 2018 80 % Special (Hong Kong) Co., Ltd Hong Kong Acquired on July 17, 2018 80 % iQIYI International Singapore Pte, Ltd. Singapore February 11, 2020 100 % VIEs and VIEs’ subsidiaries: Beijing iQIYI Science & Technology Co., Ltd. PRC Acquired on November 23, 2011 Nil Shanghai iQIYI Culture Media Co., Ltd. (“Shanghai iQIYI”) PRC December 19, 2012 Nil Place of Incorporation Date of Establishment/Acquisition Effective interest held Shanghai Zhong Yuan Network Co., Ltd. PRC Acquired on May 11, 2013 Nil iQIYI Pictures (Beijing) Co., Ltd. (“iQIYI PRC December 31, 2014 Nil Beijing iQIYI Intelligent Entertainment Technology Co., Ltd. (“Intelligent Entertainment”, formerly known as Beijing iQIYI Cinema Management PRC June 28, 2017 Nil Tianjin Skymoons Technology Co., Ltd. (“Tianjin Skymoons”) PRC Acquired on July 17, 2018 Nil Chengdu Skymoons Digital Entertainment Co., Ltd. (“Chengdu Skymoons”) PRC Acquired on July 17, 2018 Nil Chengdu Skymoons Interactive Network Game Co.,Ltd. (“Skymoons Interactive”) PRC Acquired on July 17, 2018 Nil |
Schedule of VIEs and VIEs' Subsidiaries Included in Consolidated Balance Sheets and Statements of Comprehensive Loss | The carrying amounts of the assets, liabilities and the results of operations of the VIEs and VIEs’ subsidiaries included in the Company’s consolidated balance sheets and statements of comprehensive loss are as follows: As of December 31, September 30, September 30, RMB RMB US$ ASSETS Current assets: Cash and cash equivalents 882,743 909,623 133,973 Short-term investments 169,565 228,179 33,607 Accounts receivable, net 2,839,945 2,750,509 405,106 Licensed copyrights, net 716,008 952,996 140,362 Prepayments and other assets 3,202,489 2,958,358 435,718 Total current assets 7,810,750 7,799,665 1,148,766 Non-current Fixed assets, net 856,116 726,666 107,026 Long-term investments 2,130,467 2,249,307 331,287 Licensed copyrights, net 1,640,582 1,157,843 170,532 Produced content, net 4,355,221 5,145,750 757,887 Operating lease assets 649,273 736,802 108,519 Goodwill 2,412,989 2,412,989 355,395 Others 1,552,160 986,015 145,225 Total non-current 13,596,808 13,415,372 1,975,871 Total assets 21,407,558 21,215,037 3,124,637 LIABILITIES Current liabilities: Accounts payable 4,193,022 3,920,413 577,414 Customer advances and deferred revenue 2,982,011 2,964,704 436,654 Long-term loans, current portion (i) 732,213 712,253 104,904 Operating lease liabilities, current portion 95,905 100,201 14,758 Accrued expenses and other liabilities 4,090,314 3,949,158 581,648 Total current liabilities 12,093,465 11,646,729 1,715,378 Non-current Long-term loans (i) 937,782 664,299 97,841 Operating lease liabilities 364,853 620,583 91,402 Others 630,195 528,030 77,770 Total non-current 1,932,830 1,812,912 267,013 Amounts due to the Company and its subsidiaries 13,583,317 15,618,372 2,300,338 Total liabilities 27,609,612 29,078,013 4,282,729 Nine months ended September 30 2019 2020 2020 RMB RMB US$ Total revenues 20,116,714 20,351,564 2,997,461 Net loss (1,943,153 ) (1,940,779 ) (285,846 ) Net cash provided by operating activities 1,644,590 259,018 38,149 Net cash used for investing activities (2,173,941 ) (364,693 ) (53,714 ) Net cash provided by financing activities 586,135 152,753 22,498 (i) In accordance with the arrangement as described in Note 7, the Group consolidates the securitization vehicle as it is a VIE for which the Group considers itself the primary beneficiary given the Group has the power to govern the activities that most significantly impact its economic performance and is obligated to absorb losses that could potentially be significant to the VIE. As of December 31, 2019 and September 30, 2020, RMB424,000 (US$62,448) of the loan is repayable within one year and is included in “Long-term loans, current portion” and the remaining balance of RMB527,000 (US$77,619) of the loan is included in “Long-term loans” in the carrying amounts of the liabilities of the VIEs and VIEs’ subsidiaries. |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Stockholders' Equity Note [Abstract] | |
Summary of Changes in Shareholders' Equity | The changes in shareholders’ equity for the nine months ended September 30, 2019 and 2020 are as follows: Attributable to iQIYI, INC. Ordinary shares Additional paid-in capital Accumulated Number of Amount Accumulated Noncontrolling Total RMB RMB RMB RMB RMB RMB Balances as of December 31, 2018 5,075,817,301 321 39,666,150 1,879,946 (23,509,486 ) 118,632 18,155,563 Net loss attributable to iQIYI, Inc. — — — — (7,829,544 ) 28,714 (7,800,830 ) Other comprehensive income — — — 612,035 — 1,107 613,142 Exercise of share-based awards 41,428,030 3 93,057 — — — 93,060 Share-based compensation — — 769,527 — — — 769,527 Equity component of convertible senior notes, net of issuance costs — — 987,691 — — — 987,691 Purchase of capped call — — (567,140 ) — — — (567,140 ) Issuance of subsidiaries’ shares to noncontrolling interest holders — — — — — 3,500 3,500 Acquisition of noncontrolling interests in a subsidiary — — (71,620 ) — — 6,620 (65,000 ) Balances as of September 30, 2019 5,117,245,331 324 40,877,665 2,491,981 (31,339,030 ) 158,573 12,189,513 Attributable to iQIYI, INC. Ordinary shares Additional paid-in capital Accumulated Number of Amount Accumulated Noncontrolling Total RMB RMB RMB RMB RMB RMB Balances as of December 31, 2019 5,135,516,521 325 41,298,328 2,106,718 (33,834,357 ) 42,376 9,613,390 Cumulative effect of adopting ASC 326 — — — — (94,048 ) — (94,048 ) Net loss attributable to iQIYI, Inc. — — — — (5,490,747 ) 15,665 (5,475,082 ) Exercise of share-based awards 59,727,931 4 165,974 — — — 165,978 Other comprehensive income — — — 167,558 — (1,092 ) 166,466 Issuance of a subsidiary’s shares to noncontrolling interest holders — — (918 ) — — 1,032 114 Accretion of a redeemable noncontrolling interest — — — — (5,260 ) — (5,260 ) Dividends paid and payable by a subsidiary — — — — — (22,563 ) (22,563 ) Share-based compensation — — 1,021,116 — — — 1,021,116 Others — — (20,026 ) — — 20,026 — Balances as of September 30, 2020 5,195,244,452 329 42,464,474 2,274,276 (39,424,412 ) 55,444 5,370,111 Balances as of September 30, 2020, in US$ 49 6,254,341 334,965 (5,806,588 ) 8,166 790,933 |
Long-term Investments (Tables)
Long-term Investments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Schedule Of Investments [Abstract] | |
Summary of Carrying Amount of the Company's Equity Investments | Equity investments at fair value without readily determinable fair value As of December 31, 2019, and September 30, 2020, the carrying amount of the Company’s equity investments without readily determinable fair value were as follows: As of December 31, 2019 September 30, 2020 September 30, 2020 RMB RMB US$ Initial cost basis 1,797,421 2,677,423 394,342 Cumulative unrealized gains 196,663 235,258 34,650 Cumulative unrealized losses (including impairment) (181,274 ) (247,468 ) (36,448 ) Total carrying amount 1,812,810 2,665,213 392,544 Total realized and unrealized gains and losses for equity securities without readily determinable fair values for the nine months ended September 30, 2019 and 2020 were as follows: For the nine months ended September 30, 2019 2020 2020 RMB RMB US$ Gross unrealized gains (upward adjustments) 6,076 38,595 5,685 Gross unrealized losses (downward adjustments excluding impairment) — (495 ) (73 ) Net unrealized gains and losses on equity securities held 6,076 38,100 5,612 Net realized gains on equity securities sold — — — Total net gains recognized in other income, net 6,076 38,100 5,612 |
Licensed Copyrights, Net (Table
Licensed Copyrights, Net (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Finite Lived License Agreements [Line Items] | |
Summary of Estimated Amortization Expense Relating to Licensed Copyrights | Estimated amortization expense relating to the existing licensed copyrights for each of the next three years is as follows: RMB US$ Three months ending December 31, 2020 1,510,992 222,545 Year ending December 31, 2021 2,660,860 391,902 Year ending December 31, 2022 1,112,819 163,901 Year ending December 31, 2023 668,234 98,420 |
Licensed Copyrights | |
Finite Lived License Agreements [Line Items] | |
Schedule of Licensed Copyrights, Net | As of December 31, 2019 Gross carrying value Accumulated amortization Impairment amount Net carrying RMB RMB RMB RMB Licensed copyrights —Broadcasting rights 32,038,423 (24,500,895 ) (25,317 ) 7,512,211 —Sublicensing rights 4,632,586 (4,632,586 ) — — 36,671,009 (29,133,481 ) (25,317 ) 7,512,211 Less: current portion: —Broadcasting rights 11,752,412 (10,502,214 ) (25,317 ) 1,224,881 —Sublicensing rights 4,632,586 (4,632,586 ) — — 16,384,998 (15,134,800 ) (25,317 ) 1,224,881 Licensed copyrights—non-current —Broadcasting rights 20,286,011 (13,998,681 ) — 6,287,330 —Sublicensing rights — — — — 20,286,011 (13,998,681 ) — 6,287,330 As of September 30, 2020 Gross carrying value Accumulated amortization Impairment amount Net carrying value RMB RMB RMB RMB US$ Licensed copyrights —Broadcasting rights 36,240,889 (28,588,974 ) (365,799 ) 7,286,116 1,073,128 —Sublicensing rights 5,613,400 (5,590,590 ) — 22,810 3,360 41,854,289 (34,179,564 ) (365,799 ) 7,308,926 1,076,488 Less: current portion: —Broadcasting rights 8,889,238 (7,618,439 ) (46,194 ) 1,224,605 180,364 —Sublicensing rights 5,613,400 (5,590,590 ) — 22,810 3,360 14,502,638 (13,209,029 ) (46,194 ) 1,247,415 183,724 Licensed copyrights—non-current —Broadcasting rights 27,351,651 (20,970,535 ) (319,605 ) 6,061,511 892,764 —Sublicensing rights — — — — — 27,351,651 (20,970,535 ) (319,605 ) 6,061,511 892,764 |
Produced Content, Net (Tables)
Produced Content, Net (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Film Costs [Abstract] | |
Components of Produced Content, Net | As of December 31, 2019 RMB Released, less amortization 891,574 In production 3,074,946 In development 388,701 4,355,221 As of September 30, 2020 2020 RMB US$ Released, less amortization and impairment — Predominantly monetized with other content assets 1,516,977 223,427 — Predominantly monetized on its own 54,122 7,971 1,571,099 231,398 In production, less impairment — Predominantly monetized with other content assets 2,897,231 426,716 — Predominantly monetized on its own 182,873 26,934 3,080,104 453,650 In development, less impairment — Predominantly monetized with other content assets 774,712 114,103 — Predominantly monetized on its own 91,180 13,429 865,892 127,532 Total 5,517,095 812,580 |
Summary of estimated amortization expense relating to produced content | Estimated amortization expense relating to produced content that has been released for each of the next three years is as follows: RMB US$ Three months ending December 31, 2020 326,064 48,024 Year ending December 31, 2021 421,467 62,075 Year ending December 31, 2022 214,681 31,619 Year ending December 31, 2023 147,147 21,672 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Payments Under Non-Cancelable Agreements for Property Management Fees | Future minimum payments under non-cancelable RMB US$ 2020 2,378 350 2021 23,138 3,408 2022 23,667 3,486 2023 17,479 2,574 2024 and thereafter 41,225 6,072 107,887 15,890 |
Schedule of Future Minimum Payments Under Non-Cancelable Agreements for Licensed Copyrights and produced content | Future minimum payments under non-cancelable RMB US$ 2020 6,107,029 899,468 2021 7,743,333 1,140,470 2022 3,755,818 553,172 2023 1,734,388 255,448 2024 and thereafter 1,267,381 186,666 20,607,949 3,035,224 |
Redeemable Noncontrolling Int_2
Redeemable Noncontrolling Interests (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Temporary Equity Disclosure [Abstract] | |
Schedule of Movement in Carrying Value of Redeemable Noncontrolling Interests | The movement in the carrying value of the redeemable noncontrolling interests is as follows: 2020 2020 RMB US$ Balance as of January 1 101,542 14,955 Issuance of subsidiary shares — — Accretion of redeemable noncontrolling interests 5,260 775 Balance as of September 30 106,802 15,730 |
Loss Per Share (Tables)
Loss Per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Loss Per Share | Basic and diluted net loss per Class A and Class B ordinary share for the nine months ended September 30, 2019 and 2020 are as follows: For the nine months ended September 30, 2019 2020 2020 Class A Class B Class A Class B RMB RMB RMB US$ RMB US$ Numerator: Net loss attributable to iQIYI, Inc. (3,412,357 ) (4,417,187 ) (2,428,380 ) (357,663 ) (3,062,367 ) (451,038 ) Accretion of redeemable noncontrolling interests — — (2,326 ) (343 ) (2,934 ) (432 ) Net loss attributable to iQIYI, Inc.’s ordinary shareholders (3,412,357 ) (4,417,187 ) (2,430,706 ) (358,006 ) (3,065,301 ) (451,470 ) Denominator: Weighted average number of ordinary shares outstanding, basic 2,222,064,998 2,876,391,396 2,280,906,536 2,280,906,536 2,876,391,396 2,876,391,396 Weighted average number of ordinary shares outstanding, diluted 2,222,064,998 2,876,391,396 2,280,906,536 2,280,906,536 2,876,391,396 2,876,391,396 Net loss per share, basic (1.54 ) (1.54 ) (1.07 ) (0.16 ) (1.07 ) (0.16 ) Net loss per share, diluted (1.54 ) (1.54 ) (1.07 ) (0.16 ) (1.07 ) (0.16 ) |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions and Balances with Major Related Parties | a) The table below sets forth the major related parties and their relationships with the Group: Name of related parties Relationship with the Group Baidu and its subsidiaries (“Baidu Group”) Others Controlling shareholder of the Company Equity investees b) The Group had the following related party transactions with the major related parties: Nine months ended September 30, 2019 2020 2020 RMB RMB US$ Membership services Membership services revenue earned from memberships sold to Baidu Group 14,051 11,900 1,753 Membership services revenue earned from memberships sold by Others 8,047 740 109 Online advertising revenues Advertising services provided to Baidu Group 37,484 94,651 13,941 Advertising services provided to Others 14,151 59,074 8,701 Content distribution revenues Content licensed to Others 389,990 137,597 20,266 Other revenues Other services provided to Baidu Group 7,946 11,976 1,764 Other services provided to Others 31,022 30,019 4,421 Interest income Loans due from Others 3,596 1,247 184 506,287 347,204 51,139 Cost of revenues License fees to Baidu Group 18,902 11,839 1,744 Bandwidth fee to Baidu Group 747,194 763,801 112,496 Traffic acquisition and other services provided by Baidu Group (i) 119,652 — — Others (ii) 80,196 52,244 7,695 Selling, general and administrative Advertising services provided by Baidu Group 1,440 771 114 Others 1,042 16,362 2,410 Research and development Cloud services provided by Baidu Group 12,085 7,381 1,087 980,511 852,398 125,546 (i) On April 12, 2018, the Company issued to Baidu an aggregate of 36,860,691 Class B ordinary shares pursuant to a share purchase agreement with Baidu entered into in February 2018, in exchange for Baidu providing traffic acquisition and other services in relation with ticket booking service, which was recorded as intangible assets. (ii) The transactions mainly represent revenue sharing arrangements with various equity investees. The Group entered into a revenue sharing arrangement in 2018 to become the exclusive sales agent for an equity investee and provided a minimum guarantee of a RMB100,000 of annual sales for a one year period. RMB61,698 and RMB nil (US$ nil) was recognized as cost of revenues for the nine months ended September 30, 2019 and 2020, respectively. For the nine months ended September 30, 2019 and 2020, the Group purchased contents from various equity investees for total amounts of RMB510,889 and RMB993,652 c) The Group had the following related party balances with the major related parties: As of December 31, September 30, 2020 September 30, 2020 RMB RMB US$ Amounts due from related parties, current: Due from Baidu Group (i) 35,560 48,868 7,197 Loans receivable from Others (ii) 105,934 — — Due from Others (iii) 70,499 120,931 17,812 211,993 169,799 25,009 Amounts due from related parties, non-current: Due from Others (iv) 172,200 242,000 35,643 172,200 242,000 35,643 As of December 31, 2019 September 30, 2020 September 30, 2020 RMB RMB US$ Amounts due to related parties, current: Loans due to Baidu Group (v) 50,000 50,000 7,364 Due to Baidu Group (vi) 1,014,283 800,815 117,947 Deferred revenue in relation to services to be provided to an equity investee (vii) 169,677 166,144 24,470 Due to Others (viii) 370,298 811,126 119,467 1,604,258 1,828,085 269,248 Amounts due to related parties, non-current: Loans due to Baidu Group (v) 650,000 650,000 95,735 Due to Baidu Group (vi) 1,570 2,050 302 Deferred revenue in relation to services to be provided to an equity investee (vii) 410,187 341,512 50,299 Due to Others 126 46 7 1,061,883 993,608 146,343 (i) The balance mainly represents amounts due from Baidu Group for advertising services. (ii) The balance as of December 31, 2019 represents loans provided to a Group’s equity investee with an interest rate of 5%, which were fully repaid during the nine months ended September 30, 2020. (iii) The balance mainly represents amounts due from or advances made to equity investees for content distribution service and other services. (iv) The balance represents prepaid licensed copyrights for the Group’s equity investees. (v) The total outstanding balance represents an interest-free loan of RMB50,000, which is due on demand and an interest-free loan of RMB650,000 provided by Baidu in January 2018 that will mature in January 2023. (vi) The balance mainly represents amounts owed to Baidu for provision of bandwidth and cloud services. (vii) The balance represents deferred revenue in relation to content distribution, licenses of intellectual property and traffic support services to be provided to an equity investee. (viii) The balance mainly represents amounts owed to the Group’s equity investees for licensed copyrights and advances made for online advertising services. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Instruments Measured or Disclosed at Fair Value on a Recurring Basis and Non-Recurring Fair Value Measurements | The following table sets forth the financial instruments measured at fair value on a recurring basis by level within the fair value hierarchy as of December 31, 2019 and September 30, 2020 and on a non-recurring Fair Value Measurements Quoted Prices in Significant Other Significant Total Gain/(Losses) RMB RMB RMB RMB US$ Recurring As of December 31, 2019: Short-term investments Available-for-sale 890,459 Held-to-maturity 3,688,854 Long-term investments Available-for-sale 10,259 Held-to-maturity 490,799 Prepayment and other assets Option to purchase equity interests of a listed company 14 Convertible senior notes 14,142,006 As of September 30, 2020: Short-term investments Available-for-sale 791,593 Held-to-maturity 2,812,298 Long-term investments Held-to-maturity 495,533 Convertible senior notes 13,280,458 Non-recurring As of December 31, 2019: Long-term investments — (169,374 ) Intangible assets, net 72,302 (99,096 ) Equity investments at fair value without readily determinable fair value 44,198 7,024 As of September 30, 2020: Long-term investments — (73,199 ) (10,781 ) Equity investments at fair value without readily determinable fair value 101,594 38,100 5,612 Fixed assets — (95,111 ) (14,008 ) Prepayments and other assets 110,000 (48,423 ) (7,132 ) Fair Value Measurements Quoted Prices in Significant Other Significant Total Gain/(Losses) RMB RMB RMB RMB US$ Mainland China film group – Licensed copyrights as of March 31, 2020 7,186,037 (390,299 ) (57,485 ) Mainland China film group – Produced content as of March 31, 2020 4,124,114 (209,701 ) (30,886 ) Produced content monetized on its own 29,907 (186,933 ) (27,532 ) |
The valuation technique and significant unobservable inputs (Level 3) utilized to determine the fair value of the Mainland China film group | The valuation technique and significant unobservable inputs (Level 3) utilized to determine the fair value of the Mainland China film group are as follows: Asset Valuation technique Unobservable inputs Range Mainland China film group Discounted cash flow Costs and operating expenses attributable to the film group as a percentage of revenue 32%-37% Discount rate 15% |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Income by Component, Net of Tax | The changes in accumulated other comprehensive income by component, net of tax, for the nine months ended September 30, 2019 and 2020 are as follows: Foreign currency Unrealized gain on available-for-sale debt Total RMB RMB RMB Balance at December 31, 2018 1,879,171 775 1,879,946 Other comprehensive income before reclassification 613,424 6,855 620,279 Amounts reclassified from accumulated other comprehensive income — (7,137 ) (7,137 ) Net current-period other comprehensive income/(loss) 613,424 (282 ) 613,142 Other comprehensive (income)/loss attributable to noncontrolling interests (1,145 ) 38 (1,107 ) Balance at September 30, 2019 2,491,450 531 2,491,981 Foreign currency Unrealized gain on available-for-sale debt Total RMB RMB RMB Balance at December 31, 2019 2,106,219 499 2,106,718 Other comprehensive income before reclassification 166,781 11,254 178,035 Amounts reclassified from accumulated other comprehensive income — (11,569 ) (11,569 ) Net current-period other comprehensive income/(loss) 166,781 (315 ) 166,466 Other comprehensive loss attributable to noncontrolling interests 1,088 4 1,092 Balance at September 30, 2020 2,274,088 188 2,274,276 Balance at September 30, 2020, in US$ 334,937 28 334,965 |
Tax Benefit/(Expense) Allocated to Each Component of Other Comprehensive Income | The following table sets forth the tax benefit/(expense) allocated to each component of other comprehensive income for the nine months ended September 30, 2019 and 2020: For the nine months ended September 30, 2019 2020 2020 RMB RMB US$ Unrealized gains on available-for-sale Other comprehensive income before reclassification (1,174 ) (2,105 ) (310 ) Amounts reclassified from accumulated other comprehensive income 1,246 2,145 316 Net current-period other comprehensive income 72 40 6 |
Organization and Basis of Pre_3
Organization and Basis of Presentation - Schedule of Major Subsidiaries,VIEs and VIEs' Subsidiaries (Details) | 9 Months Ended |
Sep. 30, 2020 | |
Subsidiaries | Beijing QIYI Century Science & Technology Co., Ltd. ("Beijing QIYI Century") | |
Organization And Basis Of Presentation [Line Items] | |
Place of Incorporation | PRC |
Date of Establishment/Acquisition | Mar. 8, 2010 |
Effective interest held | 100.00% |
Subsidiaries | Chongqing QIYI Tianxia Science & Technology Co., Ltd. ("QIYI Tianxia") | |
Organization And Basis Of Presentation [Line Items] | |
Place of Incorporation | PRC |
Date of Establishment/Acquisition | Nov. 3, 2010 |
Effective interest held | 100.00% |
Subsidiaries | iQIYI HK Limited ("QIYI HK") | |
Organization And Basis Of Presentation [Line Items] | |
Place of Incorporation | Hong Kong |
Date of Establishment/Acquisition | Apr. 14, 2011 |
Effective interest held | 100.00% |
Subsidiaries | iQIYI Film Group Limited | |
Organization And Basis Of Presentation [Line Items] | |
Place of Incorporation | Cayman |
Date of Establishment/Acquisition | May 26, 2017 |
Effective interest held | 100.00% |
Subsidiaries | iQIYI Media Limited | |
Organization And Basis Of Presentation [Line Items] | |
Place of Incorporation | Cayman |
Date of Establishment/Acquisition | May 26, 2017 |
Effective interest held | 100.00% |
Subsidiaries | iQIYI Film Group HK Limited | |
Organization And Basis Of Presentation [Line Items] | |
Place of Incorporation | Hong Kong |
Date of Establishment/Acquisition | Jun. 12, 2017 |
Effective interest held | 100.00% |
Subsidiaries | Beijing iQIYI New Media Science & Technology Co., Ltd. ("iQIYI New Media") | |
Organization And Basis Of Presentation [Line Items] | |
Place of Incorporation | PRC |
Date of Establishment/Acquisition | Jul. 27, 2017 |
Effective interest held | 100.00% |
Subsidiaries | Skymoons Inc. | |
Organization And Basis Of Presentation [Line Items] | |
Place of Incorporation | Cayman |
Date of Establishment/Acquisition | Jul. 17, 2018 |
Effective interest held | 100.00% |
Subsidiaries | Magic Prime Group Limited | |
Organization And Basis Of Presentation [Line Items] | |
Place of Incorporation | BVI |
Date of Establishment/Acquisition | Jul. 17, 2018 |
Effective interest held | 80.00% |
Subsidiaries | Special (Hong Kong) Co., Ltd. | |
Organization And Basis Of Presentation [Line Items] | |
Place of Incorporation | Hong Kong |
Date of Establishment/Acquisition | Jul. 17, 2018 |
Effective interest held | 80.00% |
Subsidiaries | iQIYI International Singapore Pte, Ltd. | |
Organization And Basis Of Presentation [Line Items] | |
Place of Incorporation | Singapore |
Date of Establishment/Acquisition | Feb. 11, 2020 |
Effective interest held | 100.00% |
Variable Interest Entities | Shanghai iQIYI Culture Media Co., Ltd. ("Shanghai iQIYI") | |
Organization And Basis Of Presentation [Line Items] | |
Place of Incorporation | PRC |
Date of Establishment/Acquisition | Dec. 19, 2012 |
Variable Interest Entities | Beijing iQIYI Science & Technology Co., Ltd. ("Beijing iQIYI "; formerly known as Beijing Xinlian Xinde Advertisement Media Co., Ltd.) | |
Organization And Basis Of Presentation [Line Items] | |
Place of Incorporation | PRC |
Date of Establishment/Acquisition | Nov. 23, 2011 |
Variable Interest Entities | Shanghai Zhong Yuan Network Co., Ltd. ("Shanghai Zhong Yuan") | |
Organization And Basis Of Presentation [Line Items] | |
Place of Incorporation | PRC |
Date of Establishment/Acquisition | May 11, 2013 |
Variable Interest Entities | iQIYI Pictures (Beijing) Co., Ltd. ("iQIYI Pictures") | |
Organization And Basis Of Presentation [Line Items] | |
Place of Incorporation | PRC |
Date of Establishment/Acquisition | Dec. 31, 2014 |
Variable Interest Entities | Beijing iQIYI Intelligent Entertainment Technology Co., Ltd. ("Intelligent Entertainment", formerly known as Beijing iQIYI Cinema Management Co., Ltd.) | |
Organization And Basis Of Presentation [Line Items] | |
Place of Incorporation | PRC |
Date of Establishment/Acquisition | Jun. 28, 2017 |
Variable Interest Entities | Tianjin Skymoons Technology Co., Ltd. ("Tianjin Skymoons") | |
Organization And Basis Of Presentation [Line Items] | |
Place of Incorporation | PRC |
Date of Establishment/Acquisition | Jul. 17, 2018 |
Variable Interest Entities | Chengdu Skymoons Digital Entertainment Co., Ltd.( "Chengdu Skymoons") | |
Organization And Basis Of Presentation [Line Items] | |
Place of Incorporation | PRC |
Date of Establishment/Acquisition | Jul. 17, 2018 |
Variable Interest Entities | Chengdu Skymoons Interactive Network Game Co., Ltd.("Skymoons Interactive") | |
Organization And Basis Of Presentation [Line Items] | |
Place of Incorporation | PRC |
Date of Establishment/Acquisition | Jul. 17, 2018 |
Organization and Basis of Pre_4
Organization and Basis of Presentation - Additional Information (Details) - CNY (¥) | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Organization And Basis Of Presentation [Line Items] | ||
Pledge or collateralization of VIEs and VIEs' subsidiaries' assets | ¥ 0 | |
Revenue | Product Concentration Risk | ||
Organization And Basis Of Presentation [Line Items] | ||
Concentration risk by percentage | 91.00% | 94.00% |
Organization and Basis of Pre_5
Organization and Basis of Presentation - Schedule of VIEs and VIEs' Subsidiaries Included in Consolidated Balance Sheets and Statements of Comprehensive Loss (Details) ¥ in Thousands, $ in Thousands | 9 Months Ended | ||||
Sep. 30, 2020CNY (¥) | Sep. 30, 2020USD ($) | Sep. 30, 2019CNY (¥) | Sep. 30, 2020USD ($) | Dec. 31, 2019CNY (¥) | |
Current assets: | |||||
Cash and cash equivalents | ¥ 3,163,128 | $ 465,878 | ¥ 5,934,742 | ||
Short-term investments | 3,603,891 | 530,796 | 4,579,313 | ||
Accounts receivable, net | 3,260,191 | 480,174 | 3,627,749 | ||
Licensed copyrights, net | 952,996 | 140,362 | 716,008 | ||
Total current assets | 15,563,502 | 2,292,256 | 20,272,838 | ||
Non-current assets: | |||||
Fixed assets, net | 1,463,733 | 215,585 | 1,754,367 | ||
Licensed copyrights, net | 1,157,843 | 170,532 | 1,640,582 | ||
Long-term investments | 3,710,782 | 546,539 | 2,982,154 | ||
Produced content, net | 5,145,750 | 757,887 | 4,355,221 | ||
Operating lease assets | 1,001,648 | 147,527 | 722,742 | ||
Goodwill | 3,888,346 | 572,691 | 3,888,346 | ||
Total non-current assets | 25,324,706 | 3,729,926 | 24,519,712 | ||
Total assets | 40,888,208 | 6,022,182 | 44,792,550 | ||
Current liabilities: | |||||
Accounts payable | 7,455,954 | 1,098,143 | 8,212,449 | ||
Customer advances and deferred revenue | 3,064,785 | 451,394 | 3,081,407 | ||
Long-term loans, current portion | 733,365 | 108,013 | 736,814 | ||
Operating lease liabilities, current portion | 197,673 | 29,114 | 125,412 | ||
Total current liabilities | 20,503,456 | 3,019,831 | 20,173,166 | ||
Non-current liabilities: | |||||
Long-term loans | 628,286 | 92,537 | 880,278 | ||
Operating lease liabilities | 757,882 | 111,624 | 402,732 | ||
Others | 207,071 | 30,498 | 232,555 | ||
Total non-current liabilities | 14,907,839 | 2,195,688 | 14,904,452 | ||
Revenues | 22,249,035 | $ 3,276,928 | ¥ 21,497,034 | ||
Net loss | (5,475,082) | (806,394) | (7,800,830) | ||
Net cash provided by operating activities | (3,891,624) | (573,174) | 1,563,644 | ||
Net cash used for investing activities | (122,175) | (17,994) | (9,660,661) | ||
Net cash provided by financing activities | 981,429 | 144,548 | 8,139,555 | ||
Variable Interest Entities | |||||
Current assets: | |||||
Cash and cash equivalents | 909,623 | 133,973 | 882,743 | ||
Short-term investments | 228,179 | 33,607 | 169,565 | ||
Accounts receivable, net | 2,750,509 | 405,106 | 2,839,945 | ||
Prepayments and other assets | 2,958,358 | 435,718 | 3,202,489 | ||
Total current assets | 7,799,665 | 1,148,766 | 7,810,750 | ||
Non-current assets: | |||||
Fixed assets, net | 726,666 | 107,026 | 856,116 | ||
Long-term investments | 2,249,307 | 331,287 | 2,130,467 | ||
Operating lease assets | 736,802 | 108,519 | 649,273 | ||
Goodwill | 2,412,989 | 355,395 | 2,412,989 | ||
Others | 986,015 | 145,225 | 1,552,160 | ||
Total non-current assets | 13,415,372 | 1,975,871 | 13,596,808 | ||
Total assets | 21,215,037 | 3,124,637 | 21,407,558 | ||
Current liabilities: | |||||
Accounts payable | 3,920,413 | 577,414 | 4,193,022 | ||
Customer advances and deferred revenue | 2,964,704 | 436,654 | 2,982,011 | ||
Long-term loans, current portion | 712,253 | 104,904 | 732,213 | ||
Operating lease liabilities, current portion | 100,201 | 14,758 | 95,905 | ||
Accrued expenses and other liabilities | 3,949,158 | 581,648 | 4,090,314 | ||
Total current liabilities | 11,646,729 | 1,715,378 | 12,093,465 | ||
Non-current liabilities: | |||||
Long-term loans | 664,299 | 97,841 | 937,782 | ||
Operating lease liabilities | 620,583 | 91,402 | 364,853 | ||
Others | 528,030 | 77,770 | 630,195 | ||
Total non-current liabilities | 1,812,912 | 267,013 | 1,932,830 | ||
Amounts due to the Company and its subsidiaries | 15,618,372 | 2,300,338 | 13,583,317 | ||
Total liabilities | 29,078,013 | $ 4,282,729 | ¥ 27,609,612 | ||
Revenues | 20,351,564 | 2,997,461 | 20,116,714 | ||
Net loss | (1,940,779) | (285,846) | (1,943,153) | ||
Net cash provided by operating activities | 259,018 | 38,149 | 1,644,590 | ||
Net cash used for investing activities | (364,693) | (53,714) | (2,173,941) | ||
Net cash provided by financing activities | ¥ 152,753 | $ 22,498 | ¥ 586,135 |
Organization and Basis of Pre_6
Organization and Basis of Presentation - Schedule of VIEs and VIEs' Subsidiaries Included in Consolidated Balance Sheets and Statements of Comprehensive Loss (Parenthetical) (Details) ¥ in Thousands, $ in Thousands | Sep. 30, 2020CNY (¥) | Sep. 30, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Variable Interest Entity [Line Items] | |||
Long-term loans, current portion | ¥ 733,365 | $ 108,013 | ¥ 736,814 |
Non-current loan | 628,286 | 92,537 | 880,278 |
Variable Interest Entities | |||
Variable Interest Entity [Line Items] | |||
Long-term loans, current portion | 712,253 | 104,904 | 732,213 |
Non-current loan | 664,299 | 97,841 | 937,782 |
Variable Interest Entities | Long-term Loan, Current Portion | |||
Variable Interest Entity [Line Items] | |||
Long-term loans, current portion | 424,000 | 62,448 | 424,000 |
Variable Interest Entities | Long-term Loans | |||
Variable Interest Entity [Line Items] | |||
Non-current loan | ¥ 527,000 | $ 77,619 | ¥ 527,000 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | Dec. 04, 2018USD ($) | Sep. 30, 2020CNY (¥)LicensedCopyrightCustomer¥ / shares | Sep. 30, 2020USD ($)LicensedCopyrightCustomer$ / shares | Sep. 30, 2019CNY (¥) | Dec. 31, 2019CNY (¥)Customer | Sep. 30, 2020USD ($) | Jan. 01, 2020CNY (¥) |
Summary Of Significant Accounting Policies [Line Items] | |||||||
Accumulated deficit balance | ¥ (39,424,412) | ¥ (33,834,357) | $ (5,806,588) | ||||
Net income | (5,490,747) | $ (808,701) | ¥ (7,829,544) | ||||
Contract liabilities | 3,957,230 | 3,954,763 | $ 582,837 | ||||
Cash paid for content (licensed copyrights and produced content) | 11,941,392 | 1,758,777 | |||||
Working capital deficit | ¥ 4,940,000 | $ 727,600 | |||||
Renminbi ("RMB") to per one U.S. dollar exchange rate | 6.7896 | 6.7896 | |||||
Content assets amortization period cap | 10 years | 10 years | |||||
Number of types of licensed copyrights | LicensedCopyright | 2 | 2 | |||||
Barter transaction, gross operating revenue recognized | ¥ 957,675 | $ 141,050 | 493,570 | ||||
Allowance for credit losses on accounts receivable and contract assets, including amounts due from related parties | 11,389 | ¥ 7,225 | $ 1,677 | ||||
Revenue recognition of contract liability | ¥ 2,694,143 | $ 396,804 | |||||
Longest expected length of revenue contracts | 1 year | 1 year | |||||
Cash and cash equivalents and restricted cash | ¥ 3,818,781 | 562,445 | |||||
Accounts Receivable and Contract Assets | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Number of customer accounting for more than ten percent of the total accounts receivable and contract asset balance | Customer | 0 | 0 | 0 | ||||
Accounts Receivable and Contract Assets | Credit Concentration Risk | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Concentration risk by percentage | 10.00% | 10.00% | 10.00% | ||||
Prepayments and Other Assets | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Contract assets | ¥ 1,590,327 | ¥ 1,875,704 | 234,230 | ||||
ASU 2016-13 | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Accumulated deficit balance | ¥ | ¥ 94,048 | ||||||
Accounts receivable and contract assets, including amounts due from related parties, provisions | 214,388 | $ 31,576 | |||||
Accounts receivable and contract assets, including amounts due from related parties, write-offs | 49,194 | 7,245 | |||||
Allowance for credit losses on accounts receivable and contract assets, including amounts due from related parties | 400,719 | ¥ 151,799 | 59,020 | ||||
ASC topic 926 | iQIYI Licensed Copyright | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Barter transaction, gross operating revenue recognized | 957,675 | 141,050 | 493,570 | ||||
Barter transaction, costs recognized | ¥ 710,199 | $ 104,601 | ¥ 411,921 | ||||
Maximum | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Content assets amortization period cap | 10 years | 10 years | |||||
2023 Convertible Senior Notes | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Debt instrument, face amount | $ | $ 750,000 | $ 750,000 | |||||
Debt Instrument, repurchase date | Dec. 1, 2021 | Dec. 1, 2021 | Dec. 1, 2021 | ||||
Licensed Copyrights and Produced Content [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Decrease in Amortization expenses | ¥ 398,469 | $ 58,688 | |||||
Net income | ¥ 398,469 | $ 58,688 | |||||
Licensed Copyrights and Produced Content [Member] | ClassA and ClassB Ordinary Share [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Decrease in basic and diluted net loss | (per share) | ¥ 0.08 | $ 0.01 |
Shareholders' Equity - Summary
Shareholders' Equity - Summary of Changes in Shareholders' Equity (Details) ¥ in Thousands, $ in Thousands | 9 Months Ended | ||
Sep. 30, 2020CNY (¥)shares | Sep. 30, 2020USD ($)shares | Sep. 30, 2019CNY (¥)shares | |
Schedule Of Stockholders Equity [Line Items] | |||
Balances | ¥ 9,613,390 | ¥ 18,155,563 | |
Net loss attributable to iQIYI, Inc. | (5,475,082) | (7,800,830) | |
Other comprehensive income | 166,466 | $ 24,518 | 613,142 |
Exercise of share-based awards | 165,978 | 93,060 | |
Issuance of a subsidiary's shares to noncontrolling interest holders | 114 | 3,500 | |
Accretion of a redeemable noncontrolling interest | (5,260) | ||
Dividends paid and payable by a subsidiary | (22,563) | ||
Share-based compensation | 1,021,116 | 769,527 | |
Equity component of convertible senior notes, net of issuance costs | 987,691 | ||
Purchase of capped call | (567,140) | ||
Acquisition of noncontrolling interests in a subsidiary | (65,000) | ||
Others | 0 | ||
Balances | 5,370,111 | $ 790,933 | ¥ 12,189,513 |
Accounting Standards Update 2016-13 [Member] | |||
Schedule Of Stockholders Equity [Line Items] | |||
Retained Earnings | ¥ (94,048) | ||
Ordinary Shares | |||
Schedule Of Stockholders Equity [Line Items] | |||
Balances (in shares) | shares | 5,135,516,521 | 5,135,516,521 | 5,075,817,301 |
Balances | ¥ 325 | ¥ 321 | |
Net loss attributable to iQIYI, Inc. | 0 | 0 | |
Other comprehensive income | ¥ 0 | ¥ 0 | |
Exercise of share-based awards (in shares) | shares | 59,727,931 | 59,727,931 | 41,428,030 |
Exercise of share-based awards | ¥ 4 | ¥ 3 | |
Issuance of a subsidiary's shares to noncontrolling interest holders | 0 | 0 | |
Accretion of a redeemable noncontrolling interest | 0 | ||
Dividends paid and payable by a subsidiary | 0 | ||
Share-based compensation | 0 | 0 | |
Equity component of convertible senior notes, net of issuance costs | 0 | ||
Purchase of capped call | 0 | ||
Acquisition of noncontrolling interests in a subsidiary | ¥ 0 | ||
Others | ¥ 0 | ||
Balances (in shares) | shares | 5,195,244,452 | 5,195,244,452 | 5,117,245,331 |
Balances | ¥ 329 | $ 49 | ¥ 324 |
Ordinary Shares | Accounting Standards Update 2016-13 [Member] | |||
Schedule Of Stockholders Equity [Line Items] | |||
Retained Earnings | 0 | ||
Additional Paid-in Capital | |||
Schedule Of Stockholders Equity [Line Items] | |||
Balances | 41,298,328 | 39,666,150 | |
Net loss attributable to iQIYI, Inc. | 0 | 0 | |
Other comprehensive income | 0 | 0 | |
Exercise of share-based awards | 165,974 | 93,057 | |
Issuance of a subsidiary's shares to noncontrolling interest holders | (918) | 0 | |
Accretion of a redeemable noncontrolling interest | 0 | ||
Dividends paid and payable by a subsidiary | 0 | ||
Share-based compensation | 1,021,116 | 769,527 | |
Equity component of convertible senior notes, net of issuance costs | 987,691 | ||
Purchase of capped call | (567,140) | ||
Acquisition of noncontrolling interests in a subsidiary | (71,620) | ||
Others | (20,026) | ||
Balances | 42,464,474 | 6,254,341 | 40,877,665 |
Additional Paid-in Capital | Accounting Standards Update 2016-13 [Member] | |||
Schedule Of Stockholders Equity [Line Items] | |||
Retained Earnings | 0 | ||
Accumulated Other Comprehensive Income | |||
Schedule Of Stockholders Equity [Line Items] | |||
Balances | 2,106,718 | 1,879,946 | |
Net loss attributable to iQIYI, Inc. | 0 | 0 | |
Other comprehensive income | 167,558 | 612,035 | |
Exercise of share-based awards | 0 | 0 | |
Issuance of a subsidiary's shares to noncontrolling interest holders | 0 | 0 | |
Accretion of a redeemable noncontrolling interest | 0 | ||
Dividends paid and payable by a subsidiary | 0 | ||
Share-based compensation | 0 | 0 | |
Equity component of convertible senior notes, net of issuance costs | 0 | ||
Purchase of capped call | 0 | ||
Others | 0 | ||
Balances | 2,274,276 | 334,965 | 2,491,981 |
Accumulated Other Comprehensive Income | Accounting Standards Update 2016-13 [Member] | |||
Schedule Of Stockholders Equity [Line Items] | |||
Retained Earnings | 0 | ||
Accumulated Deficit | |||
Schedule Of Stockholders Equity [Line Items] | |||
Balances | (33,834,357) | (23,509,486) | |
Net loss attributable to iQIYI, Inc. | (5,490,747) | (7,829,544) | |
Other comprehensive income | 0 | 0 | |
Exercise of share-based awards | 0 | 0 | |
Issuance of a subsidiary's shares to noncontrolling interest holders | 0 | 0 | |
Accretion of a redeemable noncontrolling interest | (5,260) | ||
Dividends paid and payable by a subsidiary | 0 | ||
Share-based compensation | 0 | 0 | |
Equity component of convertible senior notes, net of issuance costs | 0 | ||
Purchase of capped call | 0 | ||
Others | 0 | ||
Balances | (39,424,412) | (5,806,588) | (31,339,030) |
Accumulated Deficit | Accounting Standards Update 2016-13 [Member] | |||
Schedule Of Stockholders Equity [Line Items] | |||
Retained Earnings | (94,048) | ||
Noncontrolling interests | |||
Schedule Of Stockholders Equity [Line Items] | |||
Balances | 42,376 | 118,632 | |
Net loss attributable to iQIYI, Inc. | 15,665 | 28,714 | |
Other comprehensive income | (1,092) | 1,107 | |
Exercise of share-based awards | 0 | 0 | |
Issuance of a subsidiary's shares to noncontrolling interest holders | 1,032 | 3,500 | |
Accretion of a redeemable noncontrolling interest | 0 | ||
Dividends paid and payable by a subsidiary | (22,563) | ||
Share-based compensation | 0 | 0 | |
Equity component of convertible senior notes, net of issuance costs | 0 | ||
Purchase of capped call | 0 | ||
Acquisition of noncontrolling interests in a subsidiary | 6,620 | ||
Others | 20,026 | ||
Balances | 55,444 | $ 8,166 | ¥ 158,573 |
Noncontrolling interests | Accounting Standards Update 2016-13 [Member] | |||
Schedule Of Stockholders Equity [Line Items] | |||
Retained Earnings | ¥ 0 |
Long-term Investments - Additio
Long-term Investments - Additional Information (Details) ¥ in Thousands, $ in Thousands | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2020CNY (¥) | Sep. 30, 2020USD ($) | Sep. 30, 2019CNY (¥) | Dec. 31, 2019USD ($) | Sep. 30, 2020USD ($) | Dec. 31, 2019CNY (¥) | Jul. 31, 2018CNY (¥) | |
Summary Of Investment Holdings [Line Items] | |||||||
Impairment charges recognized on equity investments without readily determinable fair values | ¥ 73,199 | $ 10,781 | ¥ 27,100 | ||||
Equity method investments | 552,437 | $ 81,365 | ¥ 663,376 | ||||
Held-to-maturity debt securities maturity period | 2 years | ||||||
Long-term debt securities, held-to-maturity | $ | $ 71,000 | ||||||
Carrying value of long-term held-to-maturity debt securities | 482,462 | 71,059 | |||||
Unrecognized holding loss | 0 | 4,911 | |||||
Gross unrecognized holding gain | ¥ 13,071 | $ 1,925 | ¥ 0 | ||||
Beijing Xin'ai Sports Media Technology co., LTD | |||||||
Summary Of Investment Holdings [Line Items] | |||||||
Equity method investment, ownership percentage | 24.00% | 24.00% | 32.00% | ||||
Equity method investments | ¥ 796,000 | ||||||
Basis differences and investment goodwill | ¥ 609,502 |
Long-term Investments - Summary
Long-term Investments - Summary of Carrying Amount of the Company's Equity Investments (Details) ¥ in Thousands, $ in Thousands | Sep. 30, 2020CNY (¥) | Sep. 30, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Equity Method Investments [Abstract] | |||
Initial cost basis | ¥ 2,677,423 | $ 394,342 | ¥ 1,797,421 |
Cumulative unrealized gains | 235,258 | 34,650 | 196,663 |
Cumulative unrealized losses (including impairment) | (247,468) | (36,448) | (181,274) |
Total Carrying Amount | ¥ 2,665,213 | $ 392,544 | ¥ 1,812,810 |
Long-term Investments - Schedul
Long-term Investments - Schedule of Realized and Unrealized Gains and Losses for Equity Securities Without Readily Determinable Fair Values (Details) ¥ in Thousands, $ in Thousands | 9 Months Ended | ||
Sep. 30, 2020CNY (¥) | Sep. 30, 2020USD ($) | Sep. 30, 2019CNY (¥) | |
Schedule Of Investments [Abstract] | |||
Gross unrealized gains (upward adjustments) | ¥ 38,595 | $ 5,685 | ¥ 6,076 |
Gross unrealized losses (downward adjustments excluding impairment) | (495) | (73) | 0 |
Net unrealized gains and losses on equity securities held | 38,100 | 5,612 | 6,076 |
Net realized gains on equity securities sold | 0 | 0 | 0 |
Total net gains recognized in other income, net | ¥ 38,100 | $ 5,612 | ¥ 6,076 |
Licensed Copyrights, Net - Addi
Licensed Copyrights, Net - Additional Information (Details) ¥ in Thousands, $ in Thousands | 9 Months Ended | ||
Sep. 30, 2020CNY (¥) | Sep. 30, 2020USD ($) | Sep. 30, 2019CNY (¥) | |
Finite Lived License Agreements [Line Items] | |||
Acquisition of licensed copyrights included in current liabilities | ¥ 6,540,834 | ||
Acquisition of licensed copyrights from nonmonetary content exchanges | 746,255 | ||
Licensed Copyrights | |||
Finite Lived License Agreements [Line Items] | |||
Amortization expense | ¥ 8,599,610 | $ 1,266,586 | ¥ 9,531,104 |
Licensed Copyrights, Net - Sche
Licensed Copyrights, Net - Schedule of Licensed Copyrights, Net (Details) ¥ in Thousands, $ in Thousands | Sep. 30, 2020CNY (¥) | Sep. 30, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Broadcasting Rights | |||
Finite Lived License Agreements [Line Items] | |||
Finite-Lived License Agreements, Gross | ¥ 36,240,889 | ¥ 32,038,423 | |
Finite-Lived License Agreements, Accumulated Amortization | (28,588,974) | (24,500,895) | |
Finite-Lived License Agreements, Impairment Amount | (365,799) | (25,317) | |
Finite-Lived License Agreements, Net | 7,286,116 | $ 1,073,128 | 7,512,211 |
Finite-Lived License Agreements, Gross, Current | 8,889,238 | 11,752,412 | |
Finite-Lived License Agreements, Accumulated Amortization, Current | (7,618,439) | (10,502,214) | |
Finite-Lived License Agreements, Impairment Amount, Current | (46,194) | (25,317) | |
Net carrying value, current portion | 1,224,605 | 180,364 | 1,224,881 |
Gross carrying value, non-current portion | 27,351,651 | 20,286,011 | |
Finite-Lived License Agreements, Accumulated Amortization, Non-current | (20,970,535) | (13,998,681) | |
Finite-Lived License Agreements, Impairment Amount, Non-current | (319,605) | 0 | |
Net carrying value, non-current portion | 6,061,511 | 892,764 | 6,287,330 |
Sublicensing Rights | |||
Finite Lived License Agreements [Line Items] | |||
Finite-Lived License Agreements, Gross | 5,613,400 | 4,632,586 | |
Finite-Lived License Agreements, Accumulated Amortization | (5,590,590) | (4,632,586) | |
Finite-Lived License Agreements, Impairment Amount | 0 | 0 | |
Finite-Lived License Agreements, Net | 22,810 | 3,360 | 0 |
Finite-Lived License Agreements, Gross, Current | 5,613,400 | 4,632,586 | |
Finite-Lived License Agreements, Accumulated Amortization, Current | (5,590,590) | (4,632,586) | |
Finite-Lived License Agreements, Impairment Amount, Current | 0 | 0 | |
Net carrying value, current portion | 22,810 | 3,360 | 0 |
Gross carrying value, non-current portion | 0 | 0 | |
Finite-Lived License Agreements, Accumulated Amortization, Non-current | 0 | 0 | |
Finite-Lived License Agreements, Impairment Amount, Non-current | 0 | 0 | |
Net carrying value, non-current portion | 0 | 0 | 0 |
Licensed Copyrights | |||
Finite Lived License Agreements [Line Items] | |||
Finite-Lived License Agreements, Gross | 41,854,289 | 36,671,009 | |
Finite-Lived License Agreements, Accumulated Amortization | (34,179,564) | (29,133,481) | |
Finite-Lived License Agreements, Impairment Amount | (365,799) | (25,317) | |
Finite-Lived License Agreements, Net | 7,308,926 | 1,076,488 | 7,512,211 |
Finite-Lived License Agreements, Gross, Current | 14,502,638 | 16,384,998 | |
Finite-Lived License Agreements, Accumulated Amortization, Current | (13,209,029) | (15,134,800) | |
Finite-Lived License Agreements, Impairment Amount, Current | (46,194) | (25,317) | |
Net carrying value, current portion | 1,247,415 | 183,724 | 1,224,881 |
Gross carrying value, non-current portion | 27,351,651 | 20,286,011 | |
Finite-Lived License Agreements, Accumulated Amortization, Non-current | (20,970,535) | (13,998,681) | |
Finite-Lived License Agreements, Impairment Amount, Non-current | (319,605) | 0 | |
Net carrying value, non-current portion | ¥ 6,061,511 | $ 892,764 | ¥ 6,287,330 |
Licensed Copyrights, Net -Summa
Licensed Copyrights, Net -Summary of Estimated Amortization Expense Relating to Licensed Copyrights (Details) - Sep. 30, 2020 ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) |
Estimated amortization expense | ||
Three months ending December 31, 2020 | ¥ 1,510,992 | $ 222,545 |
Year ending December 31, 2021 | 2,660,860 | 391,902 |
Year ending December 31, 2022 | 1,112,819 | 163,901 |
Year ending December 31, 2023 | ¥ 668,234 | $ 98,420 |
Produced Content, Net - Additio
Produced Content, Net - Additional Information (Details) ¥ in Thousands, $ in Thousands | 9 Months Ended | ||
Sep. 30, 2020CNY (¥) | Sep. 30, 2020USD ($) | Sep. 30, 2019CNY (¥) | |
Cost of Revenues | |||
Produced Content Net [Line Items] | |||
Amortization expense for produced content predominantly monetized with other content assets during current period | ¥ 2,228,522 | $ 328,225 | |
ProducedContent Predominantly Monetized With Other Content Assets | |||
Produced Content Net [Line Items] | |||
Amortization expense for produced content predominantly monetized with other content assets during current period | ¥ 837,583 | $ 123,363 | |
Produced Content, Net | |||
Produced Content Net [Line Items] | |||
Amortization expense | ¥ 2,324,085 |
Produced Content, Net - Compone
Produced Content, Net - Components of Produced Content, Net (Details) ¥ in Thousands, $ in Thousands | Sep. 30, 2020CNY (¥) | Sep. 30, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Theatrical Film Costs [Abstract] | |||
Released, less amortization | ¥ 1,571,099 | $ 231,398 | ¥ 891,574 |
In production | 3,080,104 | 453,650 | 3,074,946 |
In development | 865,892 | 127,532 | 388,701 |
Released, less amortization and impairment | |||
— Predominantly monetized with other content assets | 1,516,977 | 223,427 | |
— Predominantly monetized on its own | 54,122 | 7,971 | |
In production, less impairment | |||
— Predominantly monetized with other content assets | 2,897,231 | 426,716 | |
— Predominantly monetized on its own | 182,873 | 26,934 | |
In development, less impairment | |||
— Predominantly monetized with other content assets | 774,712 | 114,103 | |
— Predominantly monetized on its own | 91,180 | 13,429 | |
Total | ¥ 5,517,095 | $ 812,580 | ¥ 4,355,221 |
Produced Content, Net - Summary
Produced Content, Net - Summary of Estimated Amortization Expense Relating to Produced Content: (Details) - Sep. 30, 2020 ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) |
Estimated Amortization Expense Relating To Produced Content [Line Items] | ||
Three months ending December 31, 2020 | ¥ 326,064 | $ 48,024 |
Year ending December 31, 2021 | 421,467 | 62,075 |
Year ending December 31, 2022 | 214,681 | 31,619 |
Year ending December 31, 2023 | ¥ 147,147 | $ 21,672 |
Loans Payable - Additional Info
Loans Payable - Additional Information (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Nov. 30, 2019CNY (¥) | Sep. 30, 2020CNY (¥) | Sep. 30, 2020USD ($) | Sep. 30, 2019CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Sep. 30, 2020USD ($) | Dec. 31, 2019USD ($) | |
Debt Instrument [Line Items] | |||||||||
Legally obligation to pay the banks or other financial institutions | ¥ 395,943 | $ 58,316 | |||||||
Outstanding borrowings from the factoring arrangements | 384,428 | $ 56,620 | |||||||
Short-term loans | ¥ 3,804,396 | ¥ 2,618,170 | $ 560,327 | ||||||
Debt instrument, collateral description | As of December 31, 2019, and September 30, 2020, the repayments of primarily all of the short-term loans are guaranteed by subsidiaries within the Group and either collateralized by an office building of one of the Group’s VIEs with a carrying amount of RMB561,515 and RMB551,734 (US$81,262), respectively, or collateralized by restricted cash balances totaling US$138,572 and US$93,572 (equivalent to RMB635,316), respectively. | As of December 31, 2019, and September 30, 2020, the repayments of primarily all of the short-term loans are guaranteed by subsidiaries within the Group and either collateralized by an office building of one of the Group’s VIEs with a carrying amount of RMB561,515 and RMB551,734 (US$81,262), respectively, or collateralized by restricted cash balances totaling US$138,572 and US$93,572 (equivalent to RMB635,316), respectively. | |||||||
Debt instrument, collateralized restricted cash | ¥ 635,316 | $ 93,572 | $ 138,572 | ||||||
Weighted average interest rate | 4.21% | 4.05% | 4.21% | 4.05% | |||||
Unused line of credit for short-term loans | ¥ 1,682,054 | ¥ 1,620,520 | $ 247,740 | ||||||
Proceeds from long-term loan and borrowings from third party investors, net of issuance costs | 0 | $ 0 | ¥ 295,395 | ||||||
Loans repayable within one year | 733,365 | 736,814 | 108,013 | ||||||
Non-current loan | ¥ 628,286 | 880,278 | $ 92,537 | ||||||
Borrowings from Third-Party Investors | 2018 Asset-Backed Debt Securities | |||||||||
Debt Instrument [Line Items] | |||||||||
Repayment of debt | 74,992 | ||||||||
Accounts payable factored to financial institution | ¥ 525,279 | ||||||||
Debt securities maturity period description | debt securities securitized by the 2018 factored receivables, maturing in December 2019 and December 2020 | debt securities securitized by the 2018 factored receivables, maturing in December 2019 and December 2020 | |||||||
Proceeds from long-term loan and borrowings from third party investors, net of issuance costs | ¥ 446,000 | ||||||||
Effective interest rate | 7.00% | 7.00% | |||||||
Borrowings from Third-Party Investors | 2018 Asset-Backed Debt Securities | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Annual interest rate | 5.00% | ||||||||
Borrowings from Third-Party Investors | 2018 Asset-Backed Debt Securities | Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Annual interest rate | 5.50% | ||||||||
Borrowings from Third-Party Investors | 2019 Asset-Backed Debt Securities | |||||||||
Debt Instrument [Line Items] | |||||||||
Annual interest rate | 5.10% | ||||||||
Accounts payable factored to financial institution | ¥ 587,000 | ||||||||
Debt securities maturity period description | debt securities securitized by the 2019 factored receivables, maturing in November 2021 | debt securities securitized by the 2019 factored receivables, maturing in November 2021 | |||||||
Proceeds from long-term loan and borrowings from third party investors, net of issuance costs | ¥ 500,000 | ||||||||
Effective interest rate | 5.97% | 5.97% | |||||||
Borrowings from Third-Party Investors | Asset-Backed Debt Securities | |||||||||
Debt Instrument [Line Items] | |||||||||
Outstanding borrowings | ¥ 936,100 | ¥ 898,097 | $ 137,873 | ||||||
Bank of China | |||||||||
Debt Instrument [Line Items] | |||||||||
Bank loan maturity period | 3 years | ||||||||
Maximum borrowing capacity under credit facility | ¥ 299,000 | ||||||||
Annual interest rate | 4.47% | ||||||||
Repayment of debt | 274,000 | $ 40,356 | 5,000 | ||||||
JPMorgan Chase Bank, N.A. | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, collateral description | the repayment of the loan is collateralized by long-term held-to-maturity debt securities with a stated cost of US$71,000 and US$71,000 (equivalent to RMB482,062) | ||||||||
Debt instrument, collateralized asset carrying amount | 482,062 | 71,000 | $ 71,000 | ||||||
Bank loan maturity period | 2 years | ||||||||
Maximum borrowing capacity under credit facility | ¥ 800,000 | ||||||||
Annual interest rate | 3.55% | 3.55% | |||||||
Amount borrowed under the commitment of a bank loan | ¥ 447,949 | ||||||||
Repayment of debt | 19,444 | $ 2,864 | ¥ 0 | ||||||
Long-term Loan, Current Portion | Borrowings from Third-Party Investors | Asset-Backed Debt Securities | |||||||||
Debt Instrument [Line Items] | |||||||||
Loans repayable within one year | 445,113 | 65,558 | |||||||
Long-term Loan | Borrowings from Third-Party Investors | 2019 Asset-Backed Debt Securities | |||||||||
Debt Instrument [Line Items] | |||||||||
Non-current loan | 490,987 | 72,315 | |||||||
Building | Bank of China | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, collateralized asset carrying amount | 561,515 | ||||||||
Building | Short-term Loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, collateralized asset carrying amount | ¥ 551,734 | ¥ 561,515 | $ 81,262 |
Convertible Senior Notes - Addi
Convertible Senior Notes - Additional Information (Details) ¥ in Thousands | Mar. 29, 2019USD ($)Day$ / shares | Dec. 04, 2018USD ($)Day$ / shares | Sep. 30, 2020CNY (¥) | Sep. 30, 2020USD ($) | Sep. 30, 2019CNY (¥) | Sep. 30, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Debt Instrument [Line Items] | |||||||
Net carrying amount of the liability component | ¥ 12,307,243 | $ 1,812,661,000 | ¥ 12,296,868 | ||||
2023 Convertible Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, face amount | $ 750,000,000 | $ 750,000,000 | |||||
Debt instrument, payment terms | The 2023 Notes are senior, unsecured obligations of the Company, and interest is payable semi-annually in cash at a rate of 3.75% per annum on June 1 and December 1 of each year, beginning on June 1, 2019. | The 2023 Notes are senior, unsecured obligations of the Company, and interest is payable semi-annually in cash at a rate of 3.75% per annum on June 1 and December 1 of each year, beginning on June 1, 2019. | |||||
Debt instrument, frequency of periodic payment | semi-annually | ||||||
Annual interest rate | 3.75% | ||||||
Loan agreement expiration date | Dec. 1, 2023 | ||||||
Debt Instrument, repurchase date | Dec. 1, 2021 | Dec. 1, 2021 | Dec. 1, 2021 | ||||
Percentage of repurchase price is equal to principal amount of convertible notes | 100.00% | ||||||
Effective interest rate | 7.04% | 7.04% | |||||
Proceeds from issuance of notes | $ 736,700,000 | ||||||
Underwriting discounts and offering expenses | $ 13,300,000 | ||||||
Liability accreted remaining period | 1 year 2 months 1 day | 1 year 2 months 1 day | |||||
2023 Convertible Senior Notes | American Depositary Shares | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, initial conversion rate | 37.1830 | ||||||
Debt instrument, conversion basis principle amount | $ 1,000 | ||||||
Debt instrument, initial conversion price | $ / shares | $ 26.89 | ||||||
Debt instrument, convertible threshold trading days | Day | 20 | ||||||
Debt instrument, convertible threshold consecutive trading days | Day | 30 | ||||||
Debt instrument, convertible threshold percentage | 130.00% | ||||||
Number of business days | Day | 5 | ||||||
Product percentage of closing sale price | 98.00% | ||||||
Purchase price of capped call options | $ 67,500,000 | ||||||
Capped call options cap price | $ / shares | 38.42 | ||||||
Cost of capped call recorded as reduction in additional paid-in capital | $ 67,500,000 | ||||||
2023 Convertible Senior Notes | American Depositary Shares | Redemption Period | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, convertible threshold consecutive trading days | Day | 10 | ||||||
2025 Convertible Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, face amount | $ 1,200,000,000 | $ 1,200,000,000 | |||||
Debt instrument, payment terms | The 2025 Notes are senior, unsecured obligations of the Company, and interest is payable semi-annually in cash at a rate of 2.00% per annum on October 1 and April 1 of each year, beginning on October 1, 2019. | The 2025 Notes are senior, unsecured obligations of the Company, and interest is payable semi-annually in cash at a rate of 2.00% per annum on October 1 and April 1 of each year, beginning on October 1, 2019. | |||||
Debt instrument, frequency of periodic payment | semi-annually | ||||||
Annual interest rate | 2.00% | ||||||
Loan agreement expiration date | Apr. 1, 2025 | ||||||
Debt Instrument, repurchase date | Apr. 1, 2023 | ||||||
Percentage of repurchase price is equal to principal amount of convertible notes | 100.00% | ||||||
Effective interest rate | 6.01% | 6.01% | |||||
Proceeds from issuance of notes | $ 1,179,000,000 | ||||||
Underwriting discounts and offering expenses | $ 21,000,000 | ||||||
Liability accreted remaining period | 2 years 6 months | 2 years 6 months | |||||
2025 Convertible Senior Notes | American Depositary Shares | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, initial conversion rate | 33.0003 | ||||||
Debt instrument, conversion basis principle amount | $ 1,000 | ||||||
Debt instrument, initial conversion price | $ / shares | $ 30.30 | ||||||
Debt instrument, convertible threshold trading days | Day | 20 | ||||||
Debt instrument, convertible threshold consecutive trading days | Day | 30 | ||||||
Debt instrument, convertible threshold percentage | 130.00% | ||||||
Number of business days | Day | 5 | ||||||
Product percentage of closing sale price | 98.00% | ||||||
Purchase price of capped call options | $ 84,500,000 | ||||||
Capped call options cap price | $ / shares | 40.02 | ||||||
Cost of capped call recorded as reduction in additional paid-in capital | $ 84,500,000 | ||||||
2025 Convertible Senior Notes | American Depositary Shares | Redemption Period | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, convertible threshold consecutive trading days | Day | 10 | ||||||
2023 Notes and 2025 Notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, face amount | ¥ 13,241,500 | $ 1,950,300,000 | 13,577,900 | ||||
Unamortized debt discount | 934,200 | 137,600,000 | 1,281,000 | ||||
Net carrying amount of the liability component | 12,307,300 | 1,812,700,000 | 12,296,900 | ||||
Carrying amount of the equity component | 1,349,300 | $ 198,700,000 | ¥ 1,349,300 | ||||
Interest cost recognized | ¥ 595,600 | $ 87,700,000 | ¥ 471,200 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - CNY (¥) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Income Taxes [Line Items] | |||
Statutory income tax rate | 25.00% | ||
Preferential income tax rate | 17.00% | ||
Effective tax rate | 0.73% | 0.38% | |
PRC Subsidiaries | |||
Income Taxes [Line Items] | |||
Percentage of withholding tax | 25.00% | ||
Hong Kong | |||
Income Taxes [Line Items] | |||
Withholding taxes | ¥ 0 | ||
Statutory income tax rate | 16.50% | ||
China | PRC Subsidiaries | |||
Income Taxes [Line Items] | |||
Uncertain tax positions, interest and penalties | ¥ 0 | ¥ 0 | |
China | PRC Subsidiaries | Earliest Tax Year | |||
Income Taxes [Line Items] | |||
Tax years remain open to examination by respective taxing jurisdictions | 2015 | ||
China | PRC Subsidiaries | Latest Tax Year | |||
Income Taxes [Line Items] | |||
Tax years remain open to examination by respective taxing jurisdictions | 2019 | ||
China | PRC Subsidiaries | Maximum | |||
Income Taxes [Line Items] | |||
Time period that tax authorities could conduct examinations of entity's tax filings | 5 years |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - Sep. 30, 2020 ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) |
Commitments And Contingencies Disclosure [Abstract] | ||
Accrued expenses | ¥ 34,494 | $ 5,080 |
Recognized losses | ¥ 2,216 | $ 326 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Future Minimum Payments Under Non-Cancelable Agreements for Property Management Fees (Details) - Sep. 30, 2020 - Property Management Fees ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) |
Commitments And Contingencies Disclosure [Line Items] | ||
2020 | ¥ 2,378 | $ 350 |
2021 | 23,138 | 3,408 |
2022 | 23,667 | 3,486 |
2023 | 17,479 | 2,574 |
2024 and thereafter | 41,225 | 6,072 |
Future minimum payments under non-cancelable agreements | ¥ 107,887 | $ 15,890 |
Commitments and Contingencies_3
Commitments and Contingencies - Schedule of Future Minimum Payments Under Non-Cancelable Agreements for Licensed Copyrights (Details) - Sep. 30, 2020 - Licensed Copyrights and Produced Content ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) |
Long Term Purchase Commitment [Line Items] | ||
2020 | ¥ 6,107,029 | $ 899,468 |
2021 | 7,743,333 | 1,140,470 |
2022 | 3,755,818 | 553,172 |
2023 | 1,734,388 | 255,448 |
2024 and thereafter | 1,267,381 | 186,666 |
Future minimum payments under non-cancelable agreements | ¥ 20,607,949 | $ 3,035,224 |
Redeemable Noncontrolling Int_3
Redeemable Noncontrolling Interests - Additional Information (Details) ¥ in Thousands, $ in Thousands | Oct. 31, 2019CNY (¥) | Sep. 30, 2020CNY (¥) | Sep. 30, 2020USD ($) |
Redeemable Noncontrolling Interest [Line Items] | |||
Preferred shares financing from third-party preferred shareholders | ¥ 0 | $ 0 | |
Variable Interest Entities | |||
Redeemable Noncontrolling Interest [Line Items] | |||
Preferred shares financing from third-party preferred shareholders | ¥ 100,000 |
Redeemable Noncontrolling Int_4
Redeemable Noncontrolling Interests - Schedule of Movement in Carrying Value of Redeemable Noncontrolling Interests (Details) ¥ in Thousands, $ in Thousands | 9 Months Ended | ||
Sep. 30, 2020CNY (¥) | Sep. 30, 2020USD ($) | Sep. 30, 2019CNY (¥) | |
Temporary Equity Disclosure [Abstract] | |||
Balance | ¥ 101,542 | $ 14,955 | |
Issuance of subsidiary shares | 0 | 0 | |
Accretion of redeemable noncontrolling interests | 5,260 | 775 | ¥ 0 |
Balance | ¥ 106,802 | $ 15,730 |
Restricted Net Assets - Additio
Restricted Net Assets - Additional Information (Details) - Variable Interest Entities ¥ in Thousands, $ in Thousands | Sep. 30, 2020CNY (¥) | Sep. 30, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Restricted Net Assets [Line Items] | |||
Statutory reserves | ¥ 20,071 | $ 2,956 | ¥ 23,073 |
Amounts of restricted paid-in capital and reserve funds of PRC subsidiaries and net assets of VIEs | ¥ 18,644,489 | $ 2,746,036 |
Loss Per Share - Schedule of Ba
Loss Per Share - Schedule of Basic And Diluted Loss Per Share (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 9 Months Ended | ||
Sep. 30, 2020CNY (¥)¥ / sharesshares | Sep. 30, 2020USD ($)$ / sharesshares | Sep. 30, 2019CNY (¥)¥ / sharesshares | |
Numerator: | |||
Net loss attributable to iQIYI, Inc. | ¥ (5,490,747) | $ (808,701) | ¥ (7,829,544) |
Accretion of redeemable noncontrolling interests | (5,260) | (775) | 0 |
Net loss attributable to iQIYI, Inc.'s ordinary shareholders | (5,496,007) | (809,476) | (7,829,544) |
Class A Ordinary Shares | |||
Numerator: | |||
Net loss attributable to iQIYI, Inc. | (2,428,380) | (357,663) | (3,412,357) |
Accretion of redeemable noncontrolling interests | (2,326) | (343) | |
Net loss attributable to iQIYI, Inc.'s ordinary shareholders | ¥ (2,430,706) | $ (358,006) | ¥ (3,412,357) |
Denominator: | |||
Weighted average number of ordinary shares outstanding, basic | 2,280,906,536 | 2,280,906,536 | 2,222,064,998 |
Weighted average number of ordinary shares outstanding, diluted | 2,280,906,536 | 2,280,906,536 | 2,222,064,998 |
Net loss per share, basic | (per share) | ¥ (1.07) | $ (0.16) | ¥ (1.54) |
Net loss per share, diluted | (per share) | ¥ (1.07) | $ (0.16) | ¥ (1.54) |
Class B Ordinary Shares | |||
Numerator: | |||
Net loss attributable to iQIYI, Inc. | ¥ (3,062,367) | $ (451,038) | ¥ (4,417,187) |
Accretion of redeemable noncontrolling interests | (2,934) | (432) | |
Net loss attributable to iQIYI, Inc.'s ordinary shareholders | ¥ (3,065,301) | $ (451,470) | ¥ (4,417,187) |
Denominator: | |||
Weighted average number of ordinary shares outstanding, basic | 2,876,391,396 | 2,876,391,396 | 2,876,391,396 |
Weighted average number of ordinary shares outstanding, diluted | 2,876,391,396 | 2,876,391,396 | 2,876,391,396 |
Net loss per share, basic | (per share) | ¥ (1.07) | $ (0.16) | ¥ (1.54) |
Net loss per share, diluted | (per share) | ¥ (1.07) | $ (0.16) | ¥ (1.54) |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) ¥ in Thousands, $ in Thousands | 9 Months Ended | ||
Sep. 30, 2020CNY (¥) | Sep. 30, 2020USD ($) | Sep. 30, 2019CNY (¥) | |
Equity Investee | Content purchases | |||
Related Party Transaction [Line Items] | |||
Related party transaction, purchases | ¥ 993,652 | $ 146,349 | ¥ 510,889 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Related Party Transactions with Major Related Parties (Details) ¥ in Thousands, $ in Thousands | 9 Months Ended | ||
Sep. 30, 2020CNY (¥) | Sep. 30, 2020USD ($) | Sep. 30, 2019CNY (¥) | |
Interest income | |||
Interest income from related party | ¥ 1,247 | $ 184 | ¥ 3,596 |
Revenue from related parties including interest income | 347,204 | 51,139 | 506,287 |
Cost of revenues | |||
Cost of revenue to related party | 827,884 | 121,935 | 965,944 |
Selling, general and administrative | |||
Selling, general and administrative expenses to related party | 17,133 | 2,524 | 2,482 |
Research and development | |||
Research and development expenses to related party | 7,381 | 1,087 | 12,085 |
Operating costs and expenses as well as interest expenses from related parties | 852,398 | 125,546 | 980,511 |
Baidu | |||
Research and development | |||
Research and development expenses to related party | 7,381 | 1,087 | 12,085 |
Others | |||
Cost of revenues | |||
Cost of revenue to related party | 52,244 | 7,695 | 80,196 |
Selling, general and administrative | |||
Selling, general and administrative expenses to related party | 16,362 | 2,410 | 1,042 |
Membership services | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | 12,640 | 1,862 | 22,098 |
Membership services | Baidu | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | 11,900 | 1,753 | 14,051 |
Membership services | Others | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | 740 | 109 | 8,047 |
Online Advertising Revenues | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | 153,725 | 22,642 | 51,635 |
Online Advertising Revenues | Baidu | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | 94,651 | 13,941 | 37,484 |
Online Advertising Revenues | Others | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | 59,074 | 8,701 | 14,151 |
Other Revenues | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | 41,995 | 6,185 | 38,968 |
Other Revenues | Baidu | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | 11,976 | 1,764 | 7,946 |
Other Revenues | Others | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | 30,019 | 4,421 | 31,022 |
Content distribution | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | 137,597 | 20,266 | 389,990 |
Content distribution | Others | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | 137,597 | 20,266 | 389,990 |
License Fees | Baidu | |||
Cost of revenues | |||
Cost of revenue to related party | 11,839 | 1,744 | 18,902 |
Bandwidth Fee | Baidu | |||
Cost of revenues | |||
Cost of revenue to related party | 763,801 | 112,496 | 747,194 |
Advertising Services Expense | Baidu | |||
Selling, general and administrative | |||
Selling, general and administrative expenses to related party | 771 | 114 | 1,440 |
Traffic Acquisition and Other Services | Baidu | |||
Cost of revenues | |||
Cost of revenue to related party | ¥ 0 | $ 0 | ¥ 119,652 |
Related Party Transactions - _2
Related Party Transactions - Schedule of Related Party Transactions with Major Related Parties (Parenthetical) (Details) ¥ in Thousands, $ in Thousands | 9 Months Ended | ||||
Sep. 30, 2020CNY (¥)shares | Sep. 30, 2020USD ($)shares | Sep. 30, 2019CNY (¥) | Dec. 31, 2019shares | Apr. 12, 2018shares | |
Related Party Transaction [Line Items] | |||||
Cost of revenue to related party | ¥ 827,884 | $ 121,935 | ¥ 965,944 | ||
Equity Investee | Revenue Sharing Arrangement | |||||
Related Party Transaction [Line Items] | |||||
Cost of revenue to related party | 0 | 0 | 61,698 | ||
Related party transaction, amount of arrangement | ¥ | 100,000 | ||||
Traffic Acquisition and Other Services | Baidu | |||||
Related Party Transaction [Line Items] | |||||
Cost of revenue to related party | ¥ 0 | $ 0 | ¥ 119,652 | ||
Class B Ordinary Shares | |||||
Related Party Transaction [Line Items] | |||||
Common stock, shares issued | 2,876,391,396 | 2,876,391,396 | 2,876,391,396 | 36,860,691 | |
Class B Ordinary Shares | Traffic Acquisition and Other Services | Baidu | |||||
Related Party Transaction [Line Items] | |||||
Common stock, shares issued | 36,860,691 |
Related Party Transactions - _3
Related Party Transactions - Schedule of Related Party Balances with Major Related Parties (Details) ¥ in Thousands, $ in Thousands | Sep. 30, 2020CNY (¥) | Sep. 30, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Amounts due from related parties, current: | |||
Amounts due from related parties | ¥ 169,799 | $ 25,009 | ¥ 211,993 |
Amounts due from related parties, non-current: | |||
Amounts due from related parties | 242,000 | 35,643 | 172,200 |
Amounts due to related parties, current: | |||
Amounts due to related parties | 1,828,085 | 269,248 | 1,604,258 |
Amounts due to related parties, non-current: | |||
Amounts due to related parties | 993,608 | 146,343 | 1,061,883 |
Baidu | |||
Amounts due from related parties, current: | |||
Amounts due from related parties | 48,868 | 7,197 | 35,560 |
Amounts due to related parties, current: | |||
Amounts due to related parties | 800,815 | 117,947 | 1,014,283 |
Amounts due to related parties, non-current: | |||
Amounts due to related parties | 2,050 | 302 | 1,570 |
Baidu | Loans | |||
Amounts due to related parties, current: | |||
Amounts due to related parties | 50,000 | 7,364 | 50,000 |
Amounts due to related parties, non-current: | |||
Amounts due to related parties | 650,000 | 95,735 | 650,000 |
Others | |||
Amounts due from related parties, current: | |||
Amounts due from related parties | 120,931 | 17,812 | 70,499 |
Amounts due from related parties, non-current: | |||
Amounts due from related parties | 242,000 | 35,643 | 172,200 |
Amounts due to related parties, current: | |||
Amounts due to related parties | 811,126 | 119,467 | 370,298 |
Amounts due to related parties, non-current: | |||
Amounts due to related parties | 46 | 7 | 126 |
Others | Loans | |||
Amounts due from related parties, current: | |||
Amounts due from related parties | 0 | 0 | 105,934 |
Equity Investee | Deferred Revenue | |||
Amounts due to related parties, current: | |||
Amounts due to related parties | 166,144 | 24,470 | 169,677 |
Amounts due to related parties, non-current: | |||
Amounts due to related parties | ¥ 341,512 | $ 50,299 | ¥ 410,187 |
Related Party Transactions - _4
Related Party Transactions - Schedule of Related Party Balances with Major Related Parties (Parenthetical) (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 9 Months Ended | ||
Jan. 31, 2018CNY (¥) | Sep. 30, 2020CNY (¥) | Sep. 30, 2020USD ($) | Dec. 31, 2019CNY (¥) | |
Related Party Transaction [Line Items] | ||||
Amounts due to related parties | ¥ 1,828,085 | $ 269,248 | ¥ 1,604,258 | |
Equity Investee | ||||
Related Party Transaction [Line Items] | ||||
Annual interest rate | 5.00% | 5.00% | 5.00% | |
Baidu | ||||
Related Party Transaction [Line Items] | ||||
Amounts due to related parties | ¥ 800,815 | $ 117,947 | ¥ 1,014,283 | |
Proceeds from loans from related parties | ¥ 650,000 | |||
Debt instrument maturity, year and month | 2023-01 | |||
Baidu | Loans | ||||
Related Party Transaction [Line Items] | ||||
Amounts due to related parties | ¥ 50,000 | $ 7,364 | ¥ 50,000 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) ¥ in Thousands, $ in Thousands | 9 Months Ended | |
Sep. 30, 2020CNY (¥) | Sep. 30, 2020USD ($) | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Impairment charge | ¥ 143,534 | $ 21,140 |
Maximum | Short-term Investments | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Short-term available-for-sale debt investments maturity | 1 year | 1 year |
Produced content predominantly monetized on its own [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Impairment charge | ¥ 186,933 | $ 27,532 |
Licensed Copyrights [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Impairment charge | 390,299 | 57,485 |
Produced Content [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Impairment charge | ¥ 209,701 | $ 30,886 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Financial Instruments Measured or Disclosed at Fair Value on a Recurring Basis and Non-Recurring Fair Value Measurements (Details) ¥ in Thousands, $ in Thousands | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2020CNY (¥) | Sep. 30, 2020USD ($) | Sep. 30, 2019CNY (¥) | Dec. 31, 2019CNY (¥) | Sep. 30, 2020USD ($) | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Long-term investments, Total losses | ¥ (73,199) | $ (10,781) | ¥ (27,100) | ||
Equity investments at fair value without readily determinable fair value | 2,665,213 | ¥ 1,812,810 | $ 392,544 | ||
Equity investments at fair value without readily determinable fair value, Total Gain/ (Losses) | 38,100 | 5,612 | ¥ 6,076 | ||
Fair Value Measurements, Non-recurring | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Long-term investments, Total losses | (73,199) | (10,781) | (169,374) | ||
Intangible assets, net, Total losses | (99,096) | ||||
Equity investments at fair value without readily determinable fair value, Total Gain/ (Losses) | 38,100 | 5,612 | 7,024 | ||
Fixed assets | (95,111) | (14,008) | |||
Prepayments and other assets, Total losses | (48,423) | (7,132) | |||
Produced content monetized on its own | (186,933) | $ (27,532) | |||
Significant Other Observable Inputs (Level 2) | Short-term Investments | Fair Value Measurements, Recurring | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Available-for-sale debt securities | 791,593 | 890,459 | |||
Held-to-maturity debt securities | 2,812,298 | 3,688,854 | |||
Significant Other Observable Inputs (Level 2) | Long-term Investments | Fair Value Measurements, Recurring | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Held-to-maturity debt securities | 495,533 | 490,799 | |||
Significant Other Observable Inputs (Level 2) | Convertible Senior Notes | Fair Value Measurements, Recurring | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Convertible senior notes | 13,280,458 | 14,142,006 | |||
Significant Unobservable Inputs (Level 3) | Fair Value Measurements, Recurring | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Available-for-sale debt security | 10,259 | ||||
Significant Unobservable Inputs (Level 3) | Fair Value Measurements, Non-recurring | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Intangible assets, net | 72,302 | ||||
Equity investments at fair value without readily determinable fair value | 101,594 | 44,198 | |||
Prepayments and other assets | 110,000 | ||||
Produced content monetized on its own | 29,907 | ||||
Significant Unobservable Inputs (Level 3) | Prepayment and Other Assets | Fair Value Measurements, Recurring | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Option to purchase equity interests of a listed company | ¥ 14 | ||||
Licensed Copyrights [Member] | Mainland China Film Group [Member] | Fair Value Measurements, Non-recurring | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Mainland China film group Total Gain/(losses) | (390,299) | (57,485) | |||
Licensed Copyrights [Member] | Mainland China Film Group [Member] | Significant Unobservable Inputs (Level 3) | Fair Value Measurements, Non-recurring | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Mainland China film group | 7,186,037 | ||||
Produced Content [Member] | Mainland China Film Group [Member] | Fair Value Measurements, Non-recurring | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Mainland China film group Total Gain/(losses) | (209,701) | $ (30,886) | |||
Produced Content [Member] | Mainland China Film Group [Member] | Significant Unobservable Inputs (Level 3) | Fair Value Measurements, Non-recurring | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Mainland China film group | ¥ 4,124,114 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Valuation Technique And Significant Unobservable Inputs (Level 3) Utilized to Determine the Fair Value of the Mainland China Film Group (Details) - Mainland China Film Group | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Assets Measured On Nonrecurring Basis Valuation Techniques [Line Items] | |
Percentage Of FairValue Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset | 15.00% |
Discounted Cash Flow | Maximum | |
Fair Value Assets Measured On Nonrecurring Basis Valuation Techniques [Line Items] | |
Percentage Of FairValue Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset | 37.00% |
Discounted Cash Flow | Minimum | |
Fair Value Assets Measured On Nonrecurring Basis Valuation Techniques [Line Items] | |
Percentage Of FairValue Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset | 32.00% |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income - Changes in Accumulated Other Comprehensive Income by Component, Net of Tax (Details) ¥ in Thousands, $ in Thousands | 9 Months Ended | ||
Sep. 30, 2020CNY (¥) | Sep. 30, 2020USD ($) | Sep. 30, 2019CNY (¥) | |
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Balances | ¥ 9,613,390 | ¥ 18,155,563 | |
Other comprehensive (loss)/income before reclassification | 178,035 | 620,279 | |
Amounts reclassified from accumulated other comprehensive income | (11,569) | (7,137) | |
Total other comprehensive income, net of tax | 166,466 | $ 24,518 | 613,142 |
Other comprehensive (income)/loss attributable to noncontrolling interests | 1,092 | (1,107) | |
Balances | 5,370,111 | 790,933 | 12,189,513 |
Foreign Currency Translation Adjustment | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Balances | 2,106,219 | 1,879,171 | |
Other comprehensive (loss)/income before reclassification | 166,781 | 613,424 | |
Total other comprehensive income, net of tax | 166,781 | 613,424 | |
Other comprehensive (income)/loss attributable to noncontrolling interests | 1,088 | (1,145) | |
Balances | 2,274,088 | 334,937 | 2,491,450 |
Unrealized Gain on Available-for-Sale Debt Securities | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Balances | 499 | 775 | |
Other comprehensive (loss)/income before reclassification | 11,254 | 6,855 | |
Amounts reclassified from accumulated other comprehensive income | (11,569) | (7,137) | |
Total other comprehensive income, net of tax | (315) | (282) | |
Other comprehensive (income)/loss attributable to noncontrolling interests | 4 | 38 | |
Balances | 188 | 28 | 531 |
Accumulated Other Comprehensive Income | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Balances | 2,106,718 | 1,879,946 | |
Total other comprehensive income, net of tax | 167,558 | 612,035 | |
Balances | ¥ 2,274,276 | $ 334,965 | ¥ 2,491,981 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income - Additional Information (Details) ¥ in Thousands, $ in Thousands | 9 Months Ended | ||
Sep. 30, 2020CNY (¥) | Sep. 30, 2020USD ($) | Sep. 30, 2019CNY (¥) | |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax [Abstract] | |||
Losses on intracompany foreign currency transactions that are of a long-term-investment nature | ¥ 471,751 | $ 69,481 | ¥ 0 |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Income - Tax Benefit/(Expense) Allocated to Each Component of Other Comprehensive Income (Details) ¥ in Thousands, $ in Thousands | 9 Months Ended | ||
Sep. 30, 2020CNY (¥) | Sep. 30, 2020USD ($) | Sep. 30, 2019CNY (¥) | |
Unrealized gains on available-for-sale debt securities | |||
Other comprehensive income before reclassification | ¥ (2,105) | $ (310) | ¥ (1,174) |
Amounts reclassified from accumulated other comprehensive income | 2,145 | 316 | 1,246 |
Net current-period other comprehensive income | ¥ 40 | $ 6 | ¥ 72 |