iQIYI's RMB 3 Billion Intellectual Property Supply Chain Finance Asset-backed Security Plan Gets Approved by SSE

BEIJING, Sept. 17, 2019 /PRNewswire/ -- iQIYI, Inc. (NASDAQ: IQ) ("iQIYI" or the "Company"), an innovative market-leading online entertainment service in China, today announced that the company's "CITIC Securities - iQIYI Intellectual Property Supply Chain Finance Asset-backed Support Plan" (the "Plan") was approved by the Shanghai Stock Exchange ("SSE") for a RMB 3 billion shelf offering of a supply chain finance asset-backed security product. The underlying assets involved are IP-related transactions, making this the first ABS shelf offering of intellectual property supply chain that is approved in China.

This marks iQIYI's second intellectual property supply chain finance asset-backed securitization on the SSE following an initial issuance of RMB 470 million in December 2018, which reflects the recognition of the market for the potential of high-quality film and television content. iQIYI's efforts in asset-backed securitization represents a big step forward for China's entertainment industry as it promotes the sustainable development of the industry by increasing the monetization capabilities of intangible assets such as content intellectual property. As China's leading online entertainment service, iQIYI's business model has evolved to a comprehensive entertainment ecosystem that offers users with services such as e-commerce, gaming, ticket service among many. This unique "Apple Tree" business model enables iQIYI to discover greater value of intellectual properties which play an instrumental role in enhancing the company's monetization capabilities.

The Plan not only broadens iQIYI's own financing channels, but also signifies the overall optimization of the industry's capital chain. The issuance of the asset-backed securities will accelerate the flow rate of funds in the entire industry as it evenly spreads the risk and allows partner production enterprises to get their investment back in a shorter period of time. This enables partner production companies to continuously produce new quality content throughout the cycle.

By demonstrating how the integration of intellectual property and financial innovation can open up a new path in optimizing the value of intangible assets, the Plan will be beneficial to the stakeholders including platforms, content and investors, as it serves as an example of a healthier financial model for the content industry and an innovative solution to achieve synergies among partners within the entertainment industry.

About iQIYI, Inc.                        

iQIYI, Inc. is an innovative market-leading online entertainment service in China. Its corporate DNA combines creative talent with technology, fostering an environment for continuous innovation and the production of blockbuster content. iQIYI's platform features highly popular original content, as well as a comprehensive library of other professionally-produced content, partner-generated content and user-generated content. The Company distinguishes itself in the online entertainment industry by its leading technology platform powered by advanced AI, big data analytics and other core proprietary technologies. iQIYI attracts a massive user base with tremendous user engagement, and has developed a diversified monetization model including membership services, online advertising services, content distribution, live broadcasting, online games, IP licensing, online literature and e-commerce.

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