爱奇艺美股招股说明书(2023-01-18版)

424B51d367585d424b5.htm424(B)(5) TableofContents ProspectusSupplement (toProspectusdatedDecember15,2020) FiledPursuanttoRule424(b)(5)RegistrationNo.333-251359 76,500,000AmericanDepositarySharesRepresenting535,500,000ClassAOrdinaryShares iQIYI,Inc. Thisprospectussupplementrelatestoanofferingbyusofanaggregateof76,500,000Americandepositaryshares,orADSs,eachrepresentingsevenClassAordinaryshares,parvalueUS$0.00001pershare,ofiQIYI,Inc.OurADSsarelistedonTheNasdaqGlobalSelectMarketunderthesymbol“IQ.”ThelastreportedsalepriceofourADSsonTheNasdaqGlobalSelectMarketonJanuary13,2023wasUS$6.69perADS. InvestingintheADSsinvolvesrisk.See“RiskFactors”beginningonpageS-13ofthisprospectussupplementforadiscussionofcertainrisksthatyoushouldconsiderinconnectionwithaninvestmentintheADSs. iQIYI,Inc.isnotaChineseoperatingcompany,butratheraCaymanIslandsholdingcompanywithnoequityownershipinthevariableinterestentities,ortheVIEs.OurCaymanIslandsholdingcompanydoesnotconductbusinessoperationsdirectly.WeconductouroperationsinChinathrough(i)ourPRCsubsidiariesand(ii)theVIEswithwhichwehavemaintainedcontractualarrangementsandtheirsubsidiariesinChina.PRClawsandregulationsimposecertainrestrictionsorprohibitionsonforeignownershipofcompaniesthatengageincertainvalue-addedtelecommunicationservices,internetaudio-videoprogramservicesandcertainotherbusinesses.Accordingly,weoperatethesebusinessesinChinathroughtheVIEsandtheirsubsidiaries,andrelyoncontractualarrangementsamongourPRCsubsidiaries,theVIEsandtheirnomineeshareholderstocontrolthebusinessoperationsoftheVIEs.TheVIEsareconsolidatedforaccountingpurposes,butarenotentitiesinwhichourCaymanIslandsholdingcompany,orourinvestors,ownequity.RevenuescontributedbytheVIEsaccountedfor93%,92%,94%ofourtotalrevenuesfortheyearsendedDecember31,2019,2020and2021,respectively.Asusedinthisprospectussupplement,“we,”“us,”“ourcompany,”“our,”or“iQIYI”referstoiQIYI,Inc.,itssubsidiaries,and,inthecontextofdescribingouroperationsandconsolidatedfinancialinformation,theVIEsinChina,includingBeijingiQIYIScienceandTechnologyCo.,Ltd.(“BeijingiQIYI”),ShanghaiiQIYICultureMediaCo.,Ltd.(“ShanghaiiQIYI”)andShanghaiZhongYuanNetworkCo.,Ltd.(“ShanghaiZhongYuan”),iQIYIPictures(Beijing)Co.,Ltd.(“iQIYIPictures”)andBeijingiQIYIIntelligentEntertainmentTechnologyCo.,Ltd.,(“IntelligentEntertainment”).InvestorsintheADSsarenotpurchasingequityinterestintheVIEsinChina,butinsteadarepurchasingequityinterestinaholdingcompanyincorporatedintheCaymanIslands. However,thecontractualarrangementsmaynotbeaseffectiveasdirectownershipinprovidinguswithcontrolovertheVIEsandwemayincursubstantialcoststoenforcethetermsofthearrangements.UncertaintiesinthePRClegalsystemmaylimitourability,asaCaymanIslandsholdingcompany,toenforcethesecontractualarrangements.Meanwhile,thereareveryfewprecedentsastowhethercontractualarrangementswouldbejudgedtoformeffectivecontrolovertherelevantVIEsthroughthecontractualarrangements,orhowcontractualarrangementsinthecontextofatheVIEsshouldbeinterpretedorenforcedbythePRCcourts.Shouldlegalactionsbecomenecessary,wecannotguaranteethatthecourtwillruleinfavoroftheenforceabilityoftheVIEscontractualarrangements.Intheeventweareunabletoenforcethesecontractualarrangements,orifwesuffersignificantdelayorotherobstaclesintheprocessofenforcingthesecontractualarrangements,wemaynotbeabletoexerteffectivecontrolovertheVIEs,andourabilitytoconductourbusinessmaybemateriallyadverselyaffected.Foradetaileddescriptionoftherisksassociatedwithourcorporatestructure,pleaserefertorisksdisclosedunder“Item3.KeyInformation—D.RiskFactors—RisksRelatingtoOurCorporateStructure”inourannualreportonForm 20-FforthefiscalyearendedDecember31,2021(the“2021Form20-F”),whichisincorporatedbyreferenceintheaccompanyingprospectus,and“RiskFactors—RisksRelatingtoThisOffering”inthisprospectussupplement. TherearealsosubstantialuncertaintiesregardingtheinterpretationandapplicationofcurrentandfuturePRClaws,regulationsandrulesregardingthestatusoftherightsofourCaymanIslandsholdingcompanywithrespecttoitscontractualarrangementswiththeVIEsandtheirnomineeshareholders.ItisuncertainwhetheranynewPRClawsorregulationsrelatingtovariableinterestentitystructureswillbeadoptedorifadopted,whattheywouldprovide.Asofthedateofthisprospectussupplement,toourbestknowledge,ourdirectorsandmanagement,thecontractualarrangementswiththeVIEshavenotbeentestedinacourtoflawinthePRC.IfweoranyoftheVIEsisfoundtobeinviolationofanyexistingorfuturePRClawsorregulations,orfailtoobtainormaintainanyoftherequiredpermitsorapprovals,therelevantPRCregulatoryauthoritieswouldhavebroaddiscretiontotakeactionindealingwithsuchviolationsorfailures.IfthePRCgovernmentdeemsthatourcontractualarrangementswiththeVIEsdonotcomplywithPRCregulatoryrestrictionsonforeigninvestmentintherelevantindustries,oriftheseregulationsortheinterpretationofexistingregulationschangeorareinterpreteddifferentlyinthefuture,wecouldbesubjecttoseverepenaltiesorbeforcedtorelinquishourinterestsinthoseoperations.SincePRCadministrativeandcourtauthoritieshavesignificantdiscretionininterpretingand