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424B4
IQIYI, INC. filed this Form 424B4 on 03/29/2018
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Table of Contents

iQIYI, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2015, 2016 AND 2017—continued

(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),

except for number of shares (or ADS) and per share (or ADS) data)

 

4. LONG-TERM INVESTMENTS

The Group’s long-term investments consist of cost method investments and equity method investments.

Cost method investments

The carrying amount of cost method investments was RMB182,194 and RMB557,524 (US$85,690) as of December 31, 2016 and 2017, respectively. The Group’s investments in preferred shares of the investees are not considered in-substance common stock since these preferred shares contain terms such as substantive liquidation preferences over the ordinary shares of the investees or redemption features. In addition, the preferred shares do not have mandatory redemption features nor readily determinable fair values. As a result, these investments in preferred shares are accounted for under the cost method.

Equity method investments

As of December 31, 2016 and 2017, the Group holds equity investments in Huace iQIYI Movie (Tianjin) Co., Ltd. of 49% and Qiyi Botong Zhangjiakou Yanghe District Investment Partnership (LP) of 19.1% through its VIEs and VIEs’ subsidiaries, respectively, which were accounted for using the equity method since the Group can exercise significant influence but does not own a majority equity interest in or control them. The investments were not significant. The carrying amount of the Group’s equity method investments was RMB1,570 and RMB10,363 (US$1,593) as of December 31, 2016 and 2017, respectively.

 

5. ACCOUNTS RECEIVABLE, NET

 

     As of December 31,  
     2016      2017      2017  
     RMB      RMB      US$  

Accounts receivable

     1,799,378        2,260,070        347,366  

Allowance for doubtful accounts

     (19,719      (24,686      (3,794
  

 

 

    

 

 

    

 

 

 

Accounts receivable, net

     1,779,659        2,235,384        343,572  
  

 

 

    

 

 

    

 

 

 

The following table presents movement of the allowance for doubtful accounts:

 

     As of December 31,  
     2015      2016      2017      2017  
     RMB      RMB      RMB      US$  

Balance at the beginning of the year

     7,683        21,913        19,719        3,031  

Provisions

     19,415        7,245        56,048        8,614  

Write-offs

     (5,185      (9,439      (51,081      (7,851
  

 

 

    

 

 

    

 

 

    

 

 

 

Balance at the end of the year

     21,913        19,719        24,686        3,794  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

F-40