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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)

 

Amortization expense was RMB172,788, RMB102,242 and RMB112,860 (US$17,346) for the years ended December 31, 2015, 2016 and 2017, respectively. Estimated amortization expense relating to the existing intangible assets for each of the next five years is as follows:

 

     RMB      US$  

Within 1 year

     86,272        13,260  

Between 1 and 2 years

     78,545        12,072  

Between 2 and 3 years

     65,943        10,135  

Between 3 and 4 years

     46,589        7,161  

Between 4 and 5 years

     40,875        6,282  

 

9. PRODUCED CONTENT, NET

 

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

Released, less amortization

     111,726        124,990        19,211  

In production

     259,800        1,310,349        201,397  

In development

     41,980        128,940        19,817  
  

 

 

    

 

 

    

 

 

 
     413,506        1,564,279        240,425  
  

 

 

    

 

 

    

 

 

 

Amortization expense was RMB231,597, RMB574,530 and RMB774,530 (US$119,043) for the years ended December 31, 2015, 2016 and 2017, respectively.

The Group expects to amortize 100% of the released produced content over the next twelve months from December 31, 2017.

 

10. GOODWILL

The goodwill of RMB3,276,107 (US$503,528) as of December 31, 2016 and 2017 represented the goodwill of RMB1,475,357 pushed down from the acquisition of the Company by Baidu in 2012 and the goodwill of RMB1,800,750 generated from the acquisition of Shanghai Zhong Yuan by the Company in 2013 (Note 1). The business of Shanghai Zhong Yuan was integrated into the Company post acquisition.

For the years ended December 31, 2015, 2016 and 2017, the Group performed a quantitative assessment by estimating the fair value of the Group as a reporting unit based on an income approach. The fair values of the Group exceeded its carrying value as of December 31, 2016 and 2017, respectively, and therefore the Group’s goodwill was not impaired.

 

F-44