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  "docSlug": "9fb9cb7289b2",
  "documentTitle": "iQIYI, Inc. (IQ)",
  "authorId": "60_Wolfpack_Research",
  "authorName": "Wolfpack Research",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2020-04-07 00:00:00",
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  "notes": "The slide uses red boxes to highlight iQIYI (or its subsidiary Zhong Yuan) in the SAIC industry reports to demonstrate revenue overstatement.",
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      "kind": "callout",
      "text": "The tables below show that IQ only reported RMB 1.95 billion of advertising revenues to the SAIC in 2015, an overstatement of 74%.",
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      "text": "advertising revenue: 74%",
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      "text": "The 2017 and 2018 SAIC advertising industry reports did include lists of the top 10 online media companies. However, Zhong Yuan did not make it into the top 10 in either year. In 2017 and 2018, the 10th place company had RMB 87 and 455 million in advertising revenues, so in order",
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      "text": "In its prospectus filed with the SEC, IQ claimed 2015 advertising revenues of RMB 3.4 billion. The tables below show that IQ only reported RMB 1.95 billion of advertising revenues to the SAIC in 2015, an overstatement of 74%. (revenues in RMB 10,000):",
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      "kind": "paragraph",
      "text": "There was no online media company top 10 in the 2016 report, so we generously applied Shanghai iQIYI's year-over-year growth rate to Zhong Yuan in order to estimate its 2016 revenue of RMB 488 million. The table below is an excerpt from the 2016 SAIC advertising industry report shows that iQIYI Culture had advertising revenues of RMB 3.358 billion. IQ reported advertising revenues of RMB 5.65 billion to the SEC in 2016, a 38.6% overstatement (revenues in RMB 10,000):",
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      "kind": "source-note",
      "text": "56 Shanghai 2015 Advertising Industry Market Conditions Report... 57 The 2016, 2017 and 2018 reports are available at www.scjgj.sh.gov.cn",
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      "text": "2016 Shanghai Top 10 Advertising Companies",
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      "text": "2015 Shanghai Top 10 Advertising Companies",
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