iQIYI Provides Update on Its Internal Review

Rhea-AI Summary

iQIYI, a leading online entertainment service in China, reported updates on its internal review initiated after a Wolfpack Research report in April 2020. The internal review, supervised by an independent audit committee with help from a Big 4 accounting firm, found no evidence supporting the allegations made in the Wolfpack Report. The company is still cooperating with the SEC in an ongoing investigation, but cannot predict its duration or impact.

Positive

• Internal review completed without substantiating allegations from Wolfpack Report.

Negative

• Uncertainty regarding the duration and outcome of the ongoing SEC investigation.

BEIJING, Oct. 5, 2020 /PRNewswire/ -- iQIYI, Inc. (Nasdaq: IQ) ("iQIYI" or the "Company"), an innovative market-leading online entertainment service in China, today provided an update on the status of its internal review. As previously disclosed, shortly after the publication of a report issued by the short-seller firm Wolfpack Research in April 2020 (the "Wolfpack Report"), the Company commenced an internal review into certain allegations raised in the Wolfpack Report (the "Internal Review"). The Internal Review is overseen by the Company's independent audit committee, which has been assisted in its efforts by professional advisors, including a Big 4 accounting firm that is not the Company's auditor. The Internal Review within the agreed scope has been substantially completed and did not uncover any evidence that would substantiate the allegations.

The Company will continue to cooperate with the SEC in connection with the ongoing SEC investigation, as previously disclosed, including providing certain documents and records related to the Internal Review and other related information, subject to compliance with applicable law. The Company is unable to predict the duration, outcome or impact of the SEC investigation.

About iQIYI

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

For more information, please contact:

Investor Relations
iQIYI, Inc.
+86 10 8264 6585
ir@qiyi.com

SOURCE iQIYI, Inc.

FAQ

What is the update from iQIYI regarding the Wolfpack Report?

iQIYI's internal review found no evidence supporting allegations from the Wolfpack Report.

What was the date of the iQIYI press release?

The press release was dated October 5, 2020.

What is the status of iQIYI's SEC investigation?

iQIYI continues to cooperate with the SEC but cannot predict the investigation's duration or outcome.

Who oversaw the internal review at iQIYI?

An independent audit committee oversaw the internal review.

Did iQIYI report any financial impacts from the internal review?

The press release did not specify any financial impacts resulting from the internal review.