The latest: Chinese video platform Beijing iQiyi Science & Technology Co. Ltd. (IQ.US) announced Wednesday that its revenue rose 3% year-on-year to 7.59 billion yuan ($1.1 billion) in last year’s fourth quarter. It recorded a 304 million yuan net profit for the period, reversing a 1.78 billion yuan net loss a year earlier.

Looking up: CEO Gong Yu revealed that the company added over 10 million net subscribers in the fourth quarter, driven by the company’s self-produced original blockbusters.

Take Note: The company’s revenue for all of last year still declined by 5% to 29 billion yuan, mainly due to 25% and 14% decreases in online advertising services and content distribution revenue, respectively, which offset 6% growth in membership services revenue.

Digging Deeper: Founded in 2010 as a video website owned by Chinese internet giant Baidu (BIDU.US; 9888.HK), iQiyi has been dubbed by some as “China’s Netflix.” But it operates in a highly competitive market, with major rivals including Youku, owned by Alibaba (9988.HK; BABA.US), and Tencent Video, as well as Tencent (0700.HK) – affiliated Mango TV. Baidu has reportedly previously sought to sell its 53% stake in the company to focus more on its artificial intelligence (AI) business, though iQiyi has denied the rumors.

Market Reaction: iQiyi shares rose 1.1% to $7.32 on Wednesday. The stock now trades at the upper end of its 52-week range.

Translation by Jony Ho

To subscribe to Bamboo Works free weekly newsletter, click here

Recent Articles

Bayzed does healthcare

BRIEF: Bayzed Health jumps in Hong Kong trading debut

Shares of cancer hospital operator Bayzed Health Group Inc. (2609.HK) jumped in their Hong Kong trading debut on Monday, as the company raised HK$562 million ($72 million) in an IPO that received…
Newtrend set to make IPO

BRIEF: Lens Technology cleared for Hong Kong listing

Smartphone glass supplier Lens Technology Co. Ltd. (300433.SZ) said on Sunday that its listing application was approved by the Hong Kong Stock Exchange, clearing a major hurdle for its IPO.…