IQIYI, Inc., formerly known as Qiyi, is a high-quality video entertainment service provider in China. The company officially launched on April 22, 2010. on November 26th, 2011, the brand upgraded, launched the "iQIYI, Inc." brand and launched a new logo. On May 7, 2015, Baidu, Inc. announced the acquisition of iQIYI, Inc. 's PPS video business for US $370 million and announced a cooperation with iQIYI, Inc. in the video business.

From 2015 to 2019, iQIYI, Inc. 's revenue was 5.29 billion yuan, 11.274 billion yuan, 17.378 billion yuan, 25 billion yuan and 29 billion yuan respectively, but the relative net loss increased year after year. From 2015 to 2019, iQIYI, Inc. 's net losses were 2.575 billion yuan, 3.074 billion yuan, 3.737 billion yuan, 9.1 billion yuan and 10.3 billion yuan, respectively.

According to the latest financial report, iQIYI, Inc. 's total revenue in the first quarter was 7.6 billion yuan, and the market is expected to be 7.256 billion yuan, compared with 7 billion yuan in the same period last year. The net loss attributed to the company is 2.9 billion yuan, and the market is expected to lose 2.831 billion yuan, compared with a loss of 1.8 billion yuan in the same period last year.

IQIYI, Inc. looked forward to the results for the second quarter of 2020, with total revenue expected to be between 7.25 billion yuan ($1.02 billion) and 7.67 billion yuan ($1.08 billion), up between 2 and 8 per cent year-on-year.

According to iQIYI, Inc. 's 2019 annual report, Baidu, Inc. holds 2.876 billion Class B shares and 7.93 million Class A shares. The total share capital of the company is 5.136 billion shares. Baidu, Inc. holds 56.16% of the shares and has 92.7% of the voting rights. Li Yanhong is the chairman of the board of directors. Baidu, Inc. Chief Technology Officer Wang Haifeng serves as a director.

Gong Yu, founder of iQIYI, Inc. and CEO, has eaten 99.3 million class A shares, accounting for 4.2% of the shares, with little right to vote.

XIAOMI holds 342 million shares, accounting for 15.1%. The founder and senior vice president of XIAOMI Group serves as a director of iQIYI, Inc..

Hillhouse Capital holds 327 million shares, accounting for 14.5%. There is no senior executive in the department of Hillhouse who holds the position of iQIYI, Inc..

In addition, Sun Jie, CEO and director of Trip.com, serves as an independent director of the company.

Notably, Tencent (00700) is seeking to become the largest shareholder of competitor iQIYI, Inc. in order to reduce costs and cope with competition in the industry, people familiar with the matter reported on June 17. The source pointed out that Tencent contacted Baidu, Inc., who holds a 56.2% stake in iQIYI, Inc., but could not determine the scale of Tencent's proposed purchase at this stage.

Guo Feng, director of public relations of Baidu, Inc., responded: "Don't guess." IQIYI, Inc. is an important part of Baidu, Inc. 's content ecological strategy. Baidu, Inc. will, as always, support iQIYI, Inc. 's development. "

According to 36Kr Holdings, this new news may be the result of the collapse of previous potential deals. However, returning to Hong Kong for secondary listing is also an important option for many Chinese companies listed in the United States.

On November 26, 2019, BABA chose a secondary listing in Hong Kong, becoming the first US Chinese stock to be listed in Hong Kong Exchanges and Clearing. After that, Chinese Internet companies listed in the United States, such as Trip.com, NetEase, Inc, JD.com and other Chinese Internet companies listed in the United States, successively discussed the secondary listing with the Hong Kong Stock Exchange, and Baidu, Inc. also conducted an internal evaluation on the secondary listing in Hong Kong.

Among them, NetEase, Inc and JD.com were listed on the Hong Kong Stock Exchange in June this year.

There are enough signs to show that more and more Chinese Internet companies will go to Hong Kong Exchanges and Clearing to list, Chinese Internet companies set off a wave of secondary listing back to Hong Kong, and the return of high-quality Chinese stocks to Hong Kong stocks will become a long-term trend.

On the whole, the capital market environment has changed greatly. Ruixing fraud incident affecting the image of Chinese stocks in the United States, the global wanton epidemic and so on are the main factors leading China's major Internet companies to consider returning.

Policy dividends also bring more possibilities to China's major Internet companies. In 2018, the HKEx amended the listing regulations to allow mainland companies to list in Hong Kong in the form of secondary listings, and to allow biotech companies with different rights and unprofitable shares to be listed in Hong Kong. In 2019, Hong Kong ranked first in the global IPO with a total raised of HK $315.5 billion.

Before iQIYI, Inc., Huazhu, Parkson China and New Oriental Education & Technology Group also reported the news of secondary listing in Hong Kong recently.