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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)

 

The reconciliation of total tax expense computed by applying the respective statutory income tax rate to pre-tax loss is as follows:

 

    For the year ended December 31,  
    2015     2016     2017     2017  
    RMB     RMB     RMB     US$  

Income tax benefit at PRC statutory rate

    (640,987     (765,234     (936,124     (143,880

Effect of differing tax rates in different jurisdictions

    (5,346     5,248    

 

(35,888

    (5,516

Non-deductible expenses

    31,717       69,065       171,784       26,403  

Deemed income

    —         230,891       —         —    

Research and development super-deduction

    (9,630     (10,746     (10,746     (1,652

Tax rate differential on deferred tax items

    339,443       179,266       320,114       49,201  

Other adjustments

    (939     17,025       10,393       1,597  

Change in valuation allowance

    296,908       287,573       472,902       72,684  
 

 

 

   

 

 

   

 

 

   

 

 

 

Income tax expense/(benefit)

    11,166       13,088       (7,565     (1,163
 

 

 

   

 

 

   

 

 

   

 

 

 

The tax effects of temporary differences that give rise to the deferred tax balances at December 31, 2016 and 2017 are as follows:

 

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

Deferred tax assets:

        

Accrued expenses and others

     19,766        40,808        6,272  

Bad debt provision

     9,893        5,110        785  

Net operating losses carried forward

     614,387        512,297        78,739  

Copyrights amortization and impairment

     399,576        910,153        139,888  

Fixed assets depreciation

     9,152        12,172        1,871  

Valuation allowance

     (1,026,206      (1,446,445      (222,315
  

 

 

    

 

 

    

 

 

 

Deferred tax assets, net

     26,568        34,095        5,240  
  

 

 

    

 

 

    

 

 

 

Deferred tax liabilities:

        

Long-lived assets arising from acquisitions

     29,657        24,970        3,838  
  

 

 

    

 

 

    

 

 

 

 

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

Classification in the consolidated balance sheets:

        

Deferred tax assets, net

     3,853        11,380        1,749  
  

 

 

    

 

 

    

 

 

 

Deferred tax liabilities

     6,942        2,255        347  
  

 

 

    

 

 

    

 

 

 

Valuation allowances have been provided on the net deferred tax assets where, based on all available evidence, it was considered more likely than not that some portion or all of the recorded deferred tax assets will

 

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