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  "docId": "019dd923-622c-750b-8b9a-539b4b45e826",
  "docSlug": "9fb9cb7289b2",
  "documentTitle": "iQIYI, Inc. (IQ)",
  "authorId": "60_Wolfpack_Research",
  "authorName": "Wolfpack Research",
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  "sourceTypeLabel": "Short seller",
  "presentationDate": "2020-04-07 00:00:00",
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  "notes": "The slide uses financial statement analysis to challenge the validity of IQ's reported investment figures.",
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      "kind": "callout",
      "text": "Since the investment was made in 3Q18, the difference of RMB 37.6 million was likely recognized as revenues by IQ in the second half of 2018, leaving the remaining RMB 726.155 million available to be used by management to artificially boost its top line, as needed.",
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      "text": "non-cash consideration: RMB 763.75 million",
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      "kind": "paragraph",
      "text": "The cash flow statements in IQ's 2018 20-F indicate that RMB 763.75 million of its investments were made through non-cash contributions. When deducted from the total claimed investment amount of RMB 796 million, the remaining cash contribution is RMB 32.25 million.",
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      "text": "The year-end 2018 balance of RMB 726.155 million in “deferred revenue to be provided” is RMB 37.6 million (US$5.5 million) less than the non-cash consideration of RMB 757.75 million that IQ claimed to have made.",
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      "kind": "paragraph",
      "text": "Wuhan DDMC released several announcements with details about the ownership of Xin'ai Sports... the auditor noted no additional capital contributions from IQ after its initial RMB 38.25 million investment in August 2018.",
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      "kind": "source-note",
      "text": "Footnotes 38-43 detailing sources from IQ 2018 20-F and Wuhan DDMC regulatory filings.",
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      "kind": "table",
      "text": "IQ 2018 20-F table showing Acquisition of long-term investments with non-cash consideration as 763,750 RMB for 2018.",
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