In the second quarter, total revenue was 7.4 billion yuan (US $1 billion), up 4% year-on-year; net loss was 1.4 billion yuan (US $204.1 million), compared with 2.3 billion yuan in the same period last year, and the diluted net loss per American Depository Share was 1.96 yuan (about US $0.28), compared with the same period last year The diluted net loss of American Depository shares was RMB 3.22. < p > < p > after the release of the financial report, Gong Yu, founder and CEO of iqiyi, Wang Xiaodong, CFO of iqiyi, and other senior executives attended the subsequent financial report conference call to interpret the key points of the financial report and answer analysts’ questions. On the issue of business model, Gong Yu said that iqiyi still firmly believes that paying users, especially monthly subscription service, is a target income in the future, but not the only one. Tian Hou: in fact, I’m thinking about whether paying music or paying video can really support a company with such a large market value as iqiyi. Should payment be a secondary cash flow method, while other liquidation methods should be more important? I’d like to hear what Dr. Gong Yu thinks. Thank you for these two questions. Gong Yu: with regard to the business model, in fact, we still firmly believe that charging users, especially monthly subscription fees, is a target income in the future, but not the only one. At present, why can’t this revenue cover the cost of content or all costs? In fact, looking back on the history of the past 9 to 10 years, this is more caused by competition. Now the open monthly fee of iqiyi’s Gold members is 19.8 yuan, which is the price I negotiated with Yang Xianghua nine years ago. At that time, it was based on the fact that there was no monthly paid content service in China, but there were pirated DVDs when watching movies. We calculated that an online user watched four movies a month on average. At that time, we didn’t have any peers who could match the standard, so we could only use pirated DVD as the benchmark. Therefore, the pirated DVD at that time was 5 yuan, so four times five was 20, and 20 minus 20 cents was 19.8 yuan. < / P > < p > it has been 9 years since the price was set, but there is no way to raise the price due to competition. It was supposed to be studied seriously this year, but the epidemic happened, so the matter was postponed for a while. Of course, the price is still too low. It’s really rich and low-quality content.